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Сan I get some useful tips on how to build credit as a college student?

I need help on how to build credit as a college student. The thing is I’ve been struggling to make my credit score reach the required level as a student but I still feel like I’m missing out on something. Building credit as a student has been a serious challenge for me and it is beginning to affect my student credit score and I’ll really love to change that. I understand the importance of financial responsibility as a student hence I’d also like to know how to obtain students first credit. Thank you!

Frank Nichols

in Student Loans

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Ross Pratt on June 22, 2018

Back in college, I really didn’t bother myself about how to build my credit as a college student because I didn’t see the need. I felt my parents would always be responsible for all that but now it seems society is really evolving. I want to begin by saying building credit as a student is not much of a big deal so far you are able to understand the basics. As a college student, you really don’t have so much credit history but what you should really worry about is your credit score as a student. The reason is that the earlier you begin taking financial responsibilities for yourself, the better and your parents are not always going to sign you up for a student loan. If you don’t learn how to manage and control money on your own, they are never going to remain in your hands. When you get out of college, well, unless you plan on moving back in to live with your parents, you’re going to be faced with a number of credit responsibilities, for example, rent. These days before a house or apartment is rented out to a person, landlords conduct credit checks on you just to make sure that you are financially responsible. Also, peradventure you get a job and perhaps want to secure a loan for any reason, in order to ensure that you are financially responsible, your employers may sometimes use a credit report analysis to measure how responsible you are. Of course, no one wants to give a loan to a person who does not stand a chance of paying back.

Building credit as a college student makes it easy for you to build your own house, buy a car and start your own business. So here are a few tips on how to build credit as a student:

  1. Begin by getting your first credit card as a student: owning and using a credit card judiciously shows the appropriate agencies that you can initiate payments on time so they don’t have to worry. When choosing your first credit card, you need to make the right choice and choosing a card that has a lower interest might be a better option for you. There are actually companies that center on giving out students cards which come with a lot of rewards on the basis of excellent or good grades. Again, only students who have a good credit history will qualify for these rewards.
  2. The second important tip I’d like to mention is to avoid the use of more than one credit card: using more than one credit card does a lot more harm than good. It affects your credit score negatively and that’s something you don’t want which is why you should possess just one card. You can obtain some more cards later on. Therefore, having only one credit card improves your credit score.
  3. Another useful tip is obtaining a loan to build on your credit: what credit building loans do is to give inexperienced cardholders an opportunity to gather some experience. Once the loan is granted, it will be kept in an account until it is repaid. This is just to prove to the credit card agencies that you can make payments right on time and this is the first step in building your credit score.
  4.  Another important key to building credit as a student is by putting your credit card to use occasionally and avoiding unnecessary expensive purchases. As much as possible, pay off your balance every month. Having followed all of these, in a matter of time, your credit score would begin smiling at you.

 

Roger Moore2 years ago

Very useful tips! However, I’d also like to add one important tip which I believe should before all others and that is using your student loans strictly for educational purposes. Lots of students are totally ignorant of this but this accounts for a large percentage of low credit scores. Most students would prefer to use the loans to buy unnecessary luxurious items such as expensive cars, houses, and even accessories. But looking at it actually, financial responsibility as a student is measured by how well you use your loan in the capacity of a student. By that I mean, spending such loans on academic materials or paying to attend educational conferences and other related expenses. Believe me, this is the most important tip in building credit as a student. 


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