It's no secret that college students have been in the crosshairs of the credit card companies for a long time. Face it; college students don't have a problem with spending money. Tuition and books are only a fraction of the expenditures that lead the average college student into an overextended financial state. Music, electronic gadgets, concert tickets, party supplies, pizza and, of course, clothes are staples of college life. What demographic represents a better target than this?

Credit card companies are aware that most college students still have the financial backing of their parents. This unofficial "safety net" serves as a de-facto cosigner on the credit card account. Most parents are not likely to let their student's credit to be ruined before their career has begun. Where they are financially able, the parents will usually cover the difference on the student's credit card bills.

The credit card companies also understand the lifetime value of a customer. They want to get the students into their customer base in anticipation of having them as long-term customers. The initial $1000 that they use to get the student's account could eventually lead to a 5-figure debt several years later when the student has graduated and has a good job.

These companies capitalize on the youth and inexperience that fuels the temptation that college students have to spend. How do they do this? They periodically raise the credit limit, which, at least temporarily, feels great to the college student. It's good for any company to acquire new, young customers with yet unformed spending patterns. Once these same account holders have family, mortgage and new cars, they are much less likely to max out their credit card(s).

It's not all bad news. Access to credit cards can be a valuable asset to students who don't have a lot of disposable case. Credit cards can help the college student pay for necessary expenses, and defer the cost of purchases while waiting for scholarship, grants, or other financial aid. The management of this asset must be done wisely; if used for a lot of frivolous purchases, the student may face some very difficult times in the future.

Here is our advice to college students who are seeking credit. Check out any offers carefully. Be sure that there are no hidden charges. Very low interest rates offered by some lenders to entice new account holders are sometimes raised within months. College students are busy and have a lot on their minds, making them vulnerable to such questionable tactics. By reading and understanding the fine print on each offer will assure that you get the best long-term deal. Finally, involve your parents and/or some of the counselors on your college campus. They should welcome your request and be willing to help you.