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How do I use a student line of credit to my advantage?

I would like to know how to use a student line of credit to my advantage. I actually got a scholarship to study at Howard University; however, this does not cover my welfare and several other expenses as a student. I was advised to seek ways to obtain credit for college students to help improve my finances as a college student. I really don’t know much about it but I really want this to work for me. I would also like to know how to build on credit for students with bad credit history.

Carlton Burgess

in Student Loans

1 answer

1 answer

Ralph Lopez on June 26, 2018

I really appreciate it when young adults participate and contribute to those things that are capable of bettering their lives rather than whirling away that time doing unproductive things. When it comes to building or creating students line of credit, you need to bear in mind that age is always of the essence. If you are below the age of 21, you are not eligible to open a line of credit. However, you may need a cosigner in order to register and apply for a student credit card. This is nothing to be worried about as a student; all you have to do is to be patient till you attain the age of 21 wherein, you will be able to open a student credit line. Prior to that time, it is advised that you begin building credit with a student credit card so that you can gather enough experience. If your parents or guardians are willing to cosign you for a card then, you can become an authorized user of the credit card; that way also you will be able to improve credit for a student with a bad credit or no credit at all. A student credit line comes with a lot of advantages not just because it is an avenue for college students to learn about financial responsibility, but it also gives the student an independent financial standing without too many risks involved.

Students’ credit lines are usually given or provided by financial institutions to assist in providing loans or credits for college students who may have issues with the payment of their tuition fees, accommodation, books, as well as other financial needs. Students line of credit are usually created in their name with very little or limited funds, to begin with. It is an alternative to the students’ credit card which helps to create financial independence as well as bringing a sense of financial responsibility to the students. Through the experience offered, students learn how to keep track of their expenditures as well as the importance of making punctual payments. It makes them responsible in this regard since credit companies and institutions begin to see them as trustworthy.

Students’ lines of credit as stated earlier come with a lot of benefits which include: limited funds to begin; improving the student’s credit score; adding to the student’s credit history and of course, the low interest rate which is usually ideal for students. It should be noted that students can no longer continue with this line of credit upon graduation.

To apply for a student line of credit, just like the credit card, you may need your parents to cosign for you since you have no credit history, once your application is successful, you can begin by using it strictly for school affairs. Believe me, this is one way by which you can make it work for you. You may also need to avoid excessive spending or buying on non-school related stuff which is another way of building credit. Hope my answers were helpful. 

Charles McAlear2 years ago

Great! I just want to add on some of the points mentioned in the answers. A student line of credit is a very great option to help you access funds in cases of emergency. By emergency, it could be health or exams or even tuition fees. Truth is, there are lots of students whose parents are not able to meet all their educational needs and who may, therefore, have to rely on financial institutions for loans. However, we live in a society where everything has to be done in order including the borrowing of funds and that is why we have such opportunities like the student's lines of credit. So while students are in school, they can easily borrow credit from their various lines of credit to cater to their needs which is payable on some interests.

I’ll also like to correct a statement made in the answer about eligibility. When it comes to students lines of credit, all categories of students are eligible to apply for it so long as they can show proof of income.


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