College student credit cards? What to consider. This presentation from Micash offers helpful tips if you are a student considering getting your first credit card.

The Credit Card Act of 2009 introduced major changes to the credit card industry. These changes are meant to benefit consumers and set conditions for what credit card companies can and cannot do.

One big change that went into effect on February 22, 2010 was new stricter rules for consumers under the age of 21. Under the new law, if you are not yet 21, you either have to show that you are able to make payments or you will need a cosigner in order to open a credit card account. Some parents may be reluctant to cosign on a teen credit card account and take on responsibility for any debt acquired on account.  Also, cosigners must agree in writing to any increase in the credit limit of the young cardholder.

Credit card companies have long targeted college students for credit cards with on campus applications and few barriers for acceptance. As a result, many students racked up substantial credit card debt by graduation or before their first job.

Prepaid debit cards are an attractive alternative to credit cards for students seeking the buying power, safety, and convenience of plastic, because most merchants including online merchants accept them. A Prepaid MasterCard or Prepaid Visa give students an option that does not involve credit checks, cosigners, or finance charges.