By MCUN

--------------------------------------------------------------------------------

It's that time of year: Students are packing up and leaving for college. Despite the fact that many college students have no income, they're bound to get a barrage of credit card offers during their first semester on campus. Make sure these young adults know the consequences of having a poor bill-paying history, because some experts believe a credit score can be as important as a grade point average (CNNMoney.com Aug. 16).

Building a strong credit history and sound financial management skills comes in handy, particularly when the college student graduates. If credit is handled poorly, the young adult will have a difficult time getting a job, an apartment, insurance, or a loan--all of which require a good credit score.

Robert Manning, author of "Credit Card Nation" and professor at the Rochester Institute of Technology, suggests setting first-year students up with a debit card first, which looks like a credit card, so they won't feel out of sync with their plastic-flashing friends. Although debit cards don't help build a good credit record, they won't damage it, either, because the money comes directly out of a share draft or checking account. Also, consider sending money monthly rather than handing over one lump sum so they don't blow it all at once. Then once they prove they can handle the debit card responsibly, consider supporting them in their desire to use a credit card wisely.

Another suggestion by Manning is to start the student off with a low limit credit card from a credit union--typically $500 to $1,000. Students who work on campus should join the university's credit union and get a card through the credit union, because it's likely to offer better rates and fees than a big bank.

Here are additional tips:

Avoid cards with annual fees;

Avoid rewards cards, at least until the student has established a good payment history;

If the student does get a rewards card, beware of cards that promise cash back but only offer the maximum amount if the student carries a balance;

Avoid cards with annual percentage rates (APRs) of 20% or more; and

If you can't pay in full the first month, cut up the card.