Having a credit card is a big responsibility, and oftentimes, this responsibility is not clear to college students. So before you sign up for a student credit card, reflect and determine if you can already handle such a powerful tool. Here are some questions to ask yourself before sealing the deal.

Am I ready? Financial preparedness should not be your only consideration when deciding whether or not to get a student credit card. More importantly, you should be mature enough to realize the seriousness of student credit and how it will affect your spending patterns and future credit stability.

Ask yourself if you are ready to start building your financial records. Keep in mind that how you use your student credit card will be reflected in your credit reports, which you need to keep healthy so that you can be qualified for bigger credit lines and loans in the future. Misuse of your card can permanently tarnish your credit history, disallowing you from taking out mortgage loans, business loans, car loans, etc. in the future.

Will I be able to pay the dues correctly and on time? Look at your current cash flow and assess whether you have enough to repay the charges you will make on your card. Write everything down from the money you make working at the library to the money your aunt sends you for Christmas and then compute the average amount you have on a monthly basis. Never spend more than this amount, because doing so will make it very hard for you to make payments.

Do I understand my legal rights and responsibilities as a cardholder? You need to have knowledge of at least the basic tenets of the Fair Credit Billing Act, which protects you from such catastrophes as billing errors, theft or unauthorized use of your card, among other things. You need to know where and how to report such an incident, should it happen.

Remember that you are responsible for your student credit card and everything that happens to it, and that failure to report loss and any unscrupulous activities done against your card makes you legally liable for the ramifications.