Filling out an application for college student credit card can be a daunting task for someone who has never had a credit card before and can be scary for parents who are co-signing for the card. The first thing that you should make sure is done is that your child understands about finances, credit and how credit cards work including late and over the limit fees as well as interest charges and how they apply. Since it is so easy to get into financial trouble with a credit card, banks purposely make students credit cards more difficult to get into trouble with.

An application for college student credit card will be about the same as it is for a regular credit card, but the card itself may have limits and amenities that other cards may not. For instance, you may be able to receive a discount for good grades with credit cards for students. Also, the late and over the limit fees may be reduced or waived for the first time to avoid college students getting themselves into a whole bunch of debt. Ask your bank or financial representative what sort of fees and amenities are associated with students credit card.

The best credit cards for college students are ones that have a low limit and low interest, or an extended grace period. Some cards even offer grace periods that extend through the term until the next financial aid or tuition check comes in. The best credit card for college students is also one that is in their name, to help them build their credit. You shouldn’t just hand over your American Express for a couple of reasons. First, you may end up with massive charges that your child accrues before you even get the bill, and second if they do use it responsibly, they will not benefit from it credit wise.

Explain to your child how a credit card works. Explain that the money that they spend must be paid back at the end of the month. Use an analogy if you want, such as it’s kind of like borrowing from a loan shark. If you pay them off at the end of the grace period then you’re fine, but if you don’t they will break your legs – figuratively of course – by messing up every future application for credit that you put in, and keeping you from getting a home in the future, or a car loan, an apartment or even some jobs, that require a credit check before employment.

This is not to say that you shouldn’t get your college student a credit card. This is the best time for them to learn financial responsibility and also, they may need the card for true emergencies. But you do need to explain the difference between what a purchase that you think you need and a true emergency is. Also, you should explain to them how a credit score works, and obtain a copy of theirs so that they can see what the consequences are for putting a bad debt on a brand new credit report and how it will affect them in the future.

If you have a child that is entering college than among the student loans, grants, fees, books and housing, one of the things that you may be considering is whether or not you should get your child a college students credit card. Credit cards for college students are offered by many banks and financial institutions, specifically for college students, with terms and interest rates that are tailored to the average college kid. They are a great tool for teaching college students how to be financially responsible if used correctly.

The first thing to consider is whether or not your child has learned enough about financial responsibility to handle having their own credit card. This is because if you want your college student to have one, you will likely have to co-sign for the card. Co-signing means that you are putting your own credit history on the line if your child defaults on their credit card and that you will likely be responsible for paying back the amount charged as well as any late fees associated with the overdue charges.

You will know if your child is financially responsible, from what they do with money they earned from summer jobs to how they handle their allowance. It is important that you explain to them as early as possible the value of good credit and how messing up your credit can affect you for many years to come. If you are going to get a credit card for college students for your child you’ll want to make sure that they are fully aware of the long term implications of not paying it, being late on payments and how these actions will ultimately affect other types of financing years down the road.

When it comes to credit cards college students may still at times be irresponsible and it is for this reason that you may want to start with a card that has a low limit, such as $100 or $200. Getting your child a credit card with a $1000 limit may be troublesome as “emergencies” such as new clothes for a party, or supplies to entertain friends will possibly end up on the card. You’ll want to make sure that you thoroughly explain the difference between a true emergency and something that they will have to put on hold and wait for.

The best credit cards for college students are those through a financial institution that you trust. Your child may already have a checking or savings account through your local bank and this is a good place to start for credit cards. Find out if they have an associated credit card and bank account for college students, as many banks and other financial institutions offer these type of services to young people to prepare them for life as a financially responsible adult.