University students in Beijing have become the new targets of the country's growing credit card business, but they are being warned that poor credit records may damage their careers.

The Guangdong Development Bank, which launched the first nationwide credit cards for students at Beijing University this week, had appointed Gold Credit Rating to establish a database of student credit records, the South China Morning Post reported.

The general manager of the bank's Beijing credit card department, Zhao Fuli, said a bad credit record could affect a student's future employment.

"We understand there had been a low repayment rate of student loans since loans were introduced, but students will risk their jobs if they do not pay their credit cards off while they are at university."

"This is because we can send the bad credit record to whichever company he or she is working for. On the other hand, we can present a report of a good credit rating and this can help them to find a good job after graduation."

The bank is offering the usual discounts at participating stores, and a low annual fee of 40 yuan (US$5) in its bid to lure students. Undergraduates can withdraw 1,000 yuan per month on the cards, with the limit raised to 3,000 yuan and 5,000 yuan respectively for master's and doctorate students.

Beijing University postgraduate student Zhang Julan filled in the credit card application form but abandoned the idea at the last minute.

"The credit amount was at first most appealing," Zhang said. But borrowing from her parents rather than a bank seemed more sensible.

"Until I do get a job," she said, "I would rather not put myself at risk owing money to banks."

(Agencies September 23, 2004)