Most students know the things they need to have when they get their degree – a job lined up, a place to live, the essentials. One thing they sometimes do, however, is neglect their credit.

College students can find themselves graduating college with bad credit or without any at all, something that can become a problem even earlier in a student’s life if he or she wants to lease an apartment.

“When you go to get an apartment they will look at your credit and it helps to have something out there first,” said U.S. Bank personal banker Dave Cornell.

Cornell recommends getting a student credit card during the first or second year of college and being responsible with it.

“We suggest getting one when you come to college and then leaving it at home until you are comfortable,” Cornell said. “It helps to build your credit.”

Visa USA’s Web site stresses the importance of paying off credit card balances on time. It states missed payments can lead to late fees and possible credit damage.

“In order to have good credit, you must use the credit card and then pay it off every single month,” said Julie Koenigsberg, branch manager for Bank of the West.

Richard Carter, professor of finance, agreed. He said it is important to avoid accumulating interest on the card.

The credit card’s interest rate is the principal way card companies make a profit. When money is charged, it is essentially being borrowed from the card company. The company will, in turn, charge the cardholder a percentage of the money borrowed until it is repaid. If the payments are not made on time, it can reflect poorly on the cardholder’s credit history.

Carter said he is wary of companies with high interest rates. Some are willing to lose a little bit of money on a few students who won’t pay because their interest rates are so high they are able to make up any loses, he said.

“I would stay away from the companies that solicit in the mail,” Carter said. “The best thing to do is to contact a larger bank or credit union and get a card through them.”

Many benefits come from acquiring a credit card, including the possibility of earning free items with it.

“Most companies will offer points or airline miles,” Cornell said. “They can get a lot of different benefits associated with it.”

The specific benefits depend on the individual card companies. There is also a possibility for overdraft protection when the card is attached to a bank account.

“I only use a card to get the benefits,” Carter said. “You are mostly getting free money for 30 days until the bills hit and you have to pay it off.”

Every month you can enhance the benefits of a credit card by paying it off completely and avoiding interest rates and high monthly payments. Carter said it can be a useful tool but can also be problematic because the interest rates are very high.

If a student finds him or herself with bad credit, Carter suggests looking for a debt consolidator to help deal with the problem.

“I would check to make sure it is reputable and make sure you know someone who has used it before,” Carter said.