While many college students are taught the value of saving their money and not being frivolous by their parents before they ever leave the nest, they still have to build that credit score like everyone else. It can be hard for a college student with no previous credit history to start building their score the right way. With that in mind, read on below for a few of the top ways to build your score up as a college student.
Apply for a Small Loan
One of the best ways to start building your credit is by applying for any number of small loans. Also known as a credit starter loan, it’s the perfect way to make installment payments on a loan to help build the credit you will need when you graduate from college and join the real world. Payments are typically reasonable and if you are smart about the money you borrow, it can be a good way to have a bit of a nest egg for emergencies. If you happen to still need to find funding quickly from a short term personal loan, search online and see where you can apply as many lenders are able to help in a few days or less.
Become an Authorized User on Your Parent’s Cards
Another way to start building your own good credit is by asking your parents if you can become an authorized user on one of their accounts. The way this works is that if your parent has good credit, it will look good on your credit score. That means there are also fewer risks involved if you find you’re not responsible enough to have a card of your own and spend too much and they don’t make the payments. Make sure that you keep track of what you spend, then pay your parents your part of the payment every month to show them you can be responsible.
Pay All of Your Bills On Time
It’s important to note that your credit card isn’t the only factor that affects your credit score. You need to pay all of your bills on time if you hope to have a good one. While many places don’t report payments that are made on time, you can be sure that they will report late payments or delinquent accounts. Besides, paying all of your bills on time is a good way to show that you can be the responsible adult your parents know you can be.
Never Co-Sign for Your Friends
While it may seem like the right thing to do at the time, co-signing on a loan or anything else for your college friends can easily come back to bite you. Remember, if they don’t make their payments on time or default on their loan, then it’s on you to pick up the slack or have it ruin your credit as well. That’s not the way you want to start out your life after college, now is it? Your parents will gladly tell you what a huge mistake this can be if you ask them.
These are just a few ways that you can build your credit and keep a good score while you are still a college student. Remember, being responsible and paying your bills on time is key to success and will ensure you have a bright happy future.
