If you are a college student should you apply for a credit card? Whether you are a first-year freshman or you are close to graduation, establishing a solid credit history is a good idea. Credit card companies tend to target college students because they know that most parents will pay their children's balances if there are any problems. However, as with any financial decision there are some pros and cons to consider.

Obtaining a credit card can definitely help to teach a young person about financial responsibility and how to operate within a budget. Credit cards can serve as a safety net in an emergency, such as if you car breaks down and you need a tow truck or incurring unexpected medical expenses. However, on the flip side, a credit card that is used irresponsibly is a quick way to build up debt that could stay with you for years.

There are two types of student credit cards: secured and unsecured. With a secured card, the credit card can't be used unless money is put onto it ahead of time. Then, the card can be used up to the amount that has already been paid to the credit card company. This is a safer way for students to build credit and there is less temptation to overspend, knowing there is a limit already in place. With an unsecured card, there is no money put on the card up front. A small credit limit of about $300-$500 is established and monthly payments must be made on the card. Some students feel a false sense of freedom with an unsecured card and will tend to spend beyond their means.

A student credit card is a great way to establish some credit before entering the working world. One good way for a college student to use their credit card is to use it to purchase books at the beginning of the semester. Even if that is the only thing they put on the card, they can establish a good record by paying at least the minimum amount on time. If possible, pay off the entire purchase within the month it is made. This practice will give you a higher credit score with the credit bureau. If you are late with a payment, this leaves a negative mark on your credit report.

There are signals for which to look to determine if you are having credit card troubles. If you are consistently paying late, spending over your credit limit, or using one credit card to pay off another credit card, then you are not using your credit responsibly.

Parents should talk with their college student children regarding the impact that their credit record will have on their lives. When it comes time to apply for a job, many employers will use the credit record as a means for determining whether or not you are a good candidate. The manner in which someone manages their money is a good indicator of the type of employee they will be for a company. Are their bills paid on time? How much debt is outstanding? What type of debt is it? Not only will an employer take a look at your credit report, but your credit history will play a part when you rent an apartment, apply for a loan, buy a car or purchase a home.

A well-established credit history is essential to a rock-solid financial future, and a well run student credit card is a good way to start building up that credit history.