So you’ve decided you're ready for a credit card. Read the following tips before you sign up, and your plunge into credit will be a safe one:
  1. Evaluate how well you currently handle your finances by taking the “How Financially Responsible Am I?” quiz, and follow the recommendations at the end.
  2. Talk to your parents. Ask them to explain their credit card statement to you. Ask them about interest rates, interest charges, hidden fees, and minimum balance.
  3. Ask your parents to monitor your credit card charges for one semester. If you are ashamed to have them see what you are buying, you probably shouldn’t be charging it.
  4. Open a checking account. If you already have one, great! If not, you need an account (with money in it) so you can pay your first month’s bill. For help in setting up a checking account, see the ShortCut “Get Ready to Manage My Money in College.”
  5. Do your homework. With so many types of cards available, be sure to research more than one or two. Interest.com offers free teenage advice and recommendations on the best credit cards for older teens and college students. Visit their Web site and click on “credit cards.” Then click on the article entitled, “The Best Credit Cards for College Students.” Be sure to read about their favorite picks for credit cards, and see which one is best for you. You might also find it helpful to follow the “student credit card programs” link for more details on several recommended credit cards. Only consider cards with a low limit (up to five hundred dollars to start with).
  6. Make a commitment to use your card wisely. Put your plan in writing and share this information with your parents:
  • Make a list of the types of purchases you plan to make with your credit card. Will your card be for emergencies only, or will you use it more regularly? A good rule of thumb: never use your card to pay for anything you can eat, drink, or wear.
  • Commit to paying your card off every month. Don’t carry a balance over from month to month.
  • Have a contingency plan for emergencies: How will you pay off a large unexpected “emergency” credit card charge such as a car repair or emergency rental car? What will you do if you get into debt?


Sources:
interest.com
about.com