While past-due loans will not affect students’ credit rating until after graduation, many students will carry and use at least one credit card during college – and potentially build or destroy their credit ratings.

Students build credit in a unique way. Most will not buy a house or a new washer and dryer set; rather, they take out student loans and use credit cards.

“My brother gave me a credit card,” said junior communication major Alisha Kasten. “I guess he thought maybe I needed it, but he told me never to use it.”

Along with paying bills on time and in full, Patrick O’Gorman, a vice president at Riverside Community Bank, encourages people to check up on their credit at least once a year. A government-sponsored Web site, annualcreditreport.com, provides free reports from Equifax, TransUnion and Experian, the three major credit reporting agencies.

Nicole Bednara, a junior journalism major, uses the government site to check her credit report and monitor activity on her open accounts. She even took the time to contact one agency that had listed her birthday incorrectly.

“My parents are very good with budgeting their money and keeping excellent credit, so much of that has been passed on to me,” Bednara said. “I also take the time to read up on personal finance. I’m proud to be the nerdy one in my circle of friends who reads Money and Kiplinger’s instead of Cosmo.”

Regarding credit card spending, O’Gorman advised, “Don’t go over 50 percent of your spending limit.”

If a consumer has maxed out one or two credit cards, he or she may have a hard time getting new credit extended.

“When you apply for new credit, the lender is asking ‘What’s holding this person down?’ They’ll think the spending limit is the only thing and question lending them more money,” O’Gorman said.

He said lenders are not the only ones critiquing credit reports now. Employers are beginning to screen applicants’ credit when making judgment calls about hiring. Car insurance companies may look at credit as well.

“Historically, people with higher credit scores have fewer accidents,” O’Gorman said.

Other Web sites offer the same type of credit service as annualcreditreport.com, but often charge for monthly memberships which range from $9.95 to $29.95 a month. O’Gorman said these services aren’t necessary and recommends using the government-sponsored Web site.

If students do not want to do it alone, they may contact a personal banker at home or at school. NIU’s Students’ Legal Assistance Web site also contains advice on credit-related matters.