BEIJING, July 22 -- Many college students applying for credit cards are feeling the pinch as bankers take more prudent steps when issuing them the cards.

    Zhong Xiangqun is director of the personal finance department at the Bank of China.

    "We have lowered the line of credit for students. It is a fairly low limit in the industry, so we can keep risks under control."

    In the past, it was very easy for college students to get a credit card. Banks came onto campuses to promote their credit cards by giving free gifts to attract students.

    Yi Ye is one college student with several credit cards in her wallet.

    "A woman knocked on our door in the dormitory to promote credit cards when I was a sophomore, so I applied for one. But I didn't understand how they worked. I thought I could overdraw the credit card every month, but actually it doesn't work that way."

    Yi says the credit card let her shop conveniently online, although her expenses quickly increased.

    "I think the credit card has been very handy for me to shop online. What I do is just go to the bank every month to pay it off to meet the balance. But indeed, I kind of overspend money sometimes without consciousness."

    A recent report by China's central bank indicates that many closed accounts and bad credit records are closely related to students' credit card issues. The number of bad credit records in the first quarter increased by 133 percent compared to the same time last year. Unlike previous easy approvals, issuers now have tightened up the verification process on credit decisions to ensure applicants can pay off their balances. To get a credit card, students now must prove they are outstanding students with stable financial support from their parents.

    But because of the complicated process, many banks actually refuse to offer such services. Here is a customer service representative from China Merchants Bank.

    "We've already stopped issuing students credit cards. I would suggest they apply for the credit card after graduation."

    One college teacher says she heard that the bank had rejected several credit card applications by her students. She has her own view of the issue.

    "Indeed, most students depend on their parents for financial support. But I see most students know how to use a credit card properly. The credit cards can also help them solve some urgent problems when they are temporarily short of cash, which provides convenience. Some students would tend to spend more money or even let their accounts expire. But this is exactly a process of learning how to manage these things."

    Some industry insiders say they believe it is irrational for banks to not accept any credit card applications from students. A prudent verification system is needed, but the complicated process that exists now has prompted many students to stop applying for credit cards.