With those getting ready to start college, millions will choose a credit card to help make payments for university related purchases as well as others. While it will be a couple of months before classes start it is never too early to start researching student credit cards as they may not all be right for you. When looking at student cards in detail a great article entitled, "7 Tips for Applying for Student Credit Cards" can help you get understand what to look for. Some of the tips include the following:
 

• Be wary of 0% balance transfer offers
• Find cards with purchase APRs
• Think rewards credit cards
• Never fall behind on payments
• The lower the balance the better
   

Within this article there are many great tips to help students (and those that may be co-signers) know and understand what to look for when looking for plastic. In all there are plenty of great cards available that can help those under the age of 21 start off on the right foot when starting a credit history. When looking for cards you will see that many are quite and offer unique features that are geared for multiple finances and lifestyles.

According to an article entitled "The Real New Student Credit Card Rules", a simple lapse in judgment whether accidental or intentional has created a loophole which allows some that would not qualify to get plastic to apply and be approved.  That lapse deals directly with both evaluating the amount of income needed to be extended credit as well as the verification of such income. As it stands now issuers are allowed to include other sources of incomes besides wages earned such as scholarships, grants and parental contributions when deciding if one qualifies to get a card without having a co-signer. When it comes to verifying that such income exist it is solely based on the issuer to take the applicant’s word on the application at face value or follow up to see if the stated income truly exist.

With any regulations set forth on an industry especially in such a short period of time there will always be things that get overlooked. In this case it could very well be the one thing that would keep some cardholders who are not qualified from receiving cards without the income to support potential purchases. Even with such loopholes regulating the credit card industry, on many accounts is up to the student on whether or not they are willing to use their plastic wisely. When used correctly, especially at a younger age, credit cards can be a powerful tool when it comes to building a strong credit foundation. Hopefully before applying for plastic the student will do their homework as it is something that could a major impact on their financial future both positively and negatively.

When looking at the pros and cons we look at an article entitled none other than, "Pros and Cons of Co-Signing Student Credit Cards". When it comes to the benefits and drawbacks we see that they include the following:

Pros:

• Comfort of knowing
• Building a strong credit history base
• Opportunity to help educate child
   

Cons:

• Liability for unpaid balances
• Potential negative reports on unpaid or late payments
• Difficulty of removing name from account
   

As we have moved away from the days where those under 21 could receive plastic without any knowledge of essentially how credit works, we have now found ourselves in a place where for the most part parents have a more active role in the decision process of getting a credit card. Because of this greater role many issuers have decided to target parents for marketing and demonstrating how getting their card would be more beneficial to both parents and students.

With the new law in place concerning your child and credit cards, have you decided to become a co-signer or have you and your child opted to go without a card at all?

Unlike in the past where someone under the age of 21 (student or otherwise) could simply sign up for a student credit card and get approved, today under the requirements of the Credit CARD Act things have changed dramatically. Instead of getting a card on their own, those looking for a card must either have proof that they can repay the lender or have a co-signer in order to get approved for their newest plastic.

Because issuers now know that parents have as much choice in the matter as the child, many issuers have opted to target them in recent forms of advertising. As written in an earlier post entitled "Student Credit Card’s New Focus: Parents", more parents are getting marketing material directed to having them choose their plastic when their children sign up for a new card. For the most part, studies have shown that the first card that someone gets is generally one that they will not give up in the future if any accounts must be closed.

With one of the restrictions requiring a co-signer it now looks as though card issuers are putting their focus on the parents more than the student themselves. On many accounts, issuers are targeting those whom already have existing accounts with them and are sending promotional material. Others have simply taken the approach of sending marketing material to the students home addressed to the parents in an effort or utilizing the direct mail approach that has worked for credit card issuers for years.

When it comes to student credit cards, stakes are high when it comes to the issuers. On many accounts, issuers focus on students for many several reasons. One of the main reasons is the fact that students are future. Traditionally college students generate some of the highest profits due to the fact that most often they do not pay their balances off in full each month. Not only that, but student tend to hold on to their first credit card longer than any other because it is most likely their longest standing account showing credit.

As the type of plastic students would probably migrate toward most, secured credit cards have been labeled as the best alternative. These types of cards for the most part are like any other traditional student credit card with the only difference being that a security deposit must first be put into an account. While these cards may not have the same great features of other cards; they do help build credit history, which above all is considered the most important aspect.

The other option that an increasingly growing number of students seem to enjoy comes in the form of a prepaid card. While it may not have been even considered an option in the past; a growing number of students and parents have now started to utilize it because of their opinions on debt. Not only that but in many cases prepaid cards, now offers some of the features that we see with credit cards. Great examples of this are things such as rewards, which include things such as discounts on purchases, cash back, and more. For students this could be something that is important as they try not to worry too much on their finances and more on their grades.

With this limited time promotion, college students who are approved for either the Citi® mtvU™ Platinum Select® Visa® Card for College Students or the Citi® Forward Card for College Students have the ability to earn reward points for a $25 Gift Card and more. For both student credit card offers there is great opportunity to earn up to an additional 3,600 bonus points just for paying your bill on time and staying under your credit limit.

So is getting a new credit card a priority for college students? Well, it really depends on who you ask. This is because while getting a new student credit offer during this holiday season is on the mind of some college students, many others could just be waiting until February when the CARD Act has been fully implemented, or may not get a credit card at all.

So what does Shell have that can save college students money? Shell offers a card called the "$aver Card", which is much different than a gas rewards credit card. The $avers Card is a annual fee free secure non-credit product that acts like a debit card and links directly to an existing checking account. Since it is linked to a checking account, there is no impact to a college student’s credit score. In fact, a Shell representative states that since college students graduate with more than four thousand dollars in credit card debt, it is important to give students tools that not only save money but allow them to be budget savvy as well.

Now through December 31, 2009, Shell is giving discounts of five cents per gallon on all Shell-branded gasoline and diesel purchases with the Shell $aver Card. When the promotion ends, cardholders can still enjoy everyday discounts of two cents off per gallon.

To learn more go to www.shellsavercard.com.

To keep students from acquiring this debt many people say the best thing is to simply steer clear of credit cards but as simple as it sounds, credit cards always seem to become attractive and find their way into students’ pocketbooks. If this is the case, what can actually be done to help these and future college student from falling into credit card debt? According to an article in the Wall Street Journal entitled "Teaching Teens About (Credit) History", there is plenty.

The truth remains that teenagers will not learn much about credit cards and how to use them from school. As a parent, teaching your children about credit cards could ultimately influence them into make smart financial decisions that could effect the rest of their lives.

One issuer that is giving students extra perks for using their credit card both on and off campus is Citi Bank. In a promotion that started in July lasting throughout the month of September, new cardholders have the ability to receive ten times the amount of points generally earned with purchases. In addition, students can receive a great introductory interest rate on both purchases and balance transfers if they qualify.

In most cases the cost a college student incurs goes beyond the campus and well into the student’s social life. This is where credit card issuers such as Citi Bank can be utilized by getting rewarded for the cost that the average college student accrues.