Of the 1.5 million students receiving college degrees this spring, an overwhelming majority will have at least one credit card in their wallet and 32 percent of students will have four or more credit cards, based on a 2005 study done by student lender Nellie Mae.

According to the U.S. Department of Education, nearly 25 percent of college students may be relying on credit card debt to help finance their tuition. On average, by the time they complete their bachelor’s degree, students will be $19,300 in debt from student loans and credit cards. Twenty-three percent of students from private nonprofit colleges and 14 percent from public four-year colleges will graduate with $30,000 or more in debt.

The I.I.I. suggests that people, including graduates, can work to build a positive credit history in the following ways:

• Use credit responsibly – It is important to establish a good credit record while in college. The longer and more stable your credit history, the higher your credit score. Do not keep more credit cards than you need and or use more than 30 percent of the credit that you have available to you on your credit cards. Use cash instead of plastic whenever possible, and try to pay off your credit card balance in full every month.
• Set up a budget and stick to it – As a graduate, you should sit down and determine exactly how much money you are earning and how much you owe. Too often people make financial decisions based on how much they think they will earn, rather than what they are currently making. Many graduates also underestimate the cost of day-to-day living-try writing down all your expenses for a month or two to get a realistic sense of what you are spending, and where you may be able to cut back if necessary.
• Pay bills on time – Pay all of your bills on time every time even if that means automating your payments to ensure you are never late. This will help to build a strong credit history. A pattern of late payments not only lowers your credit and insurance scores, but late fees and interest payments can add up and make it harder to pay down the balance.
• Keep in touch with creditors – Graduates are often in transition, so once credit accounts are opened, let your financial institutions know if you are moving. You want to avoid having a credit card bill that was lost in the mail affect your credit record.
• Monitor your Credit Report - Check your credit reports at least once a year. If there are mistakes, get them corrected quickly. If your report is less than stellar, take positive steps to improve your credit standing.
• Consider credit counseling – If you find yourself in a financial bind, consider credit and money counseling. Information is available from the National Foundation for Credit Counseling or the American Center for Credit Education.