Parents of college-bound students, take comfort. It should be harder for them to run into trouble with credit cards.  As part of the wide-ranging credit-card reforms that took effect this year, anyone under 21 now needs a co-signer to get an account. The exception is if applicants can prove they have the means to cover payments on their own. The new restriction means parents will have more say in their teens’ finances. With that in mind, a look at the options.

Credit cards 

When kids are far from home, parents may feel a credit card is essential for emergency situations. But if used responsibly, credit cards can also help teens build a strong credit profile.

On the flipside, co-signing for a credit card means any negative marks on the account — such as late payments or delinquencies — will be noted on the credit profiles of both parties.

That said, adult co-signers get certain controls. To start, they receive monthly statements and other communications. Their authorization is also needed before the credit limit on the account can be hiked. So teens can’t jack up their spending power on the sly.

Another new safety valve: Card holders now have to opt in for over-the-limit coverage. Previously, banks just continued approving charges and slapped the account with a fee of about $35 for every transaction that went beyond the credit limit.

Now, charges will be denied at the register unless overdraft coverage is selected. That means that even if teens go on spending sprees, the damage can be capped by the credit limit on the card.

Another option is to add teens as authorized users to an existing account. The concern here, of course, is if the card has a high credit limit there’s the potential for greater unchecked spending.

A misplaced card could also cause headaches if the account needs to be frozen while new cards are issued. Read more in the APP.