As a college student, you have a lot of things to worry about. Many things are coursing through your mind at the same time that you may even fail to address some of the important issues. You have to pay for school, be in class, hold down a job, and also work out what you want to do with your life. With all of these things working your mind at the same time, it is easy for something like having a good credit score to skip your mind.
You may not even see it as a priority at the time. And that is not always good. According to data collected by CreditKarma, the average credit score of a college student is 630. Most lenders offering quick loans online consider a credit score below 650 to be bad which means that most college students are not always on the right side of this picture. There are, however, ways to keep your grades up and still keep your credit scores ranking high. Here are some of those tricks.
1. Figure out whether you really need a student loan
It can be nearly impossible to qualify for a credit card or private loan if you have little to no credit history. And this begs the question; how do you build your credit history without having to take a loan? That should leave you with the federal student loan. This loan does not require you to have any credit history and don’t require any credit check, unlike the private student loans. This means that you can borrow the exact amount for your school and pay it back later on while building your credit at the same time.
2. Get a credit card
Check with your bank if you qualify for a credit card. Some banks require that you should have some credit to be eligible for a credit card. Others, however, will only take your income and banking habits into account to qualify you. So, shop around for the best credit card you can find. You can also apply for the business credit cards. Companies like Target and Walmart offer cards to eligible applicants which are also an excellent option.
3. Pay your bills on time
You can set up your accounts to automatically pay your bills to ensure you don’t and skip any payments. This also saves you time that you can use in other more productive activities. Another excellent option is to set a reminder on your phone or pc to notify you in advance to not miss making any payments on time.
4. Apply for credit for your rental payments if possible
Most rental payments are not always reflected on credit. But you can change that by requesting that it be included. Several services can help ensure that that happens. Remember, rent is something that you must pay every end month. Meaning that there is no way you are going to skip making the payments. And that can also reflect positively on your credit score and history.
5. Pay off your balance every month
To build your credit, it is wise that you do not carry a balance on the card. Also, try to only make purchases on the things that you can afford. Then, at the end of each month, ensure you pay off the balance owed. Do not give into temptation and live beyond your means only to end up with a colossal debt staring back at you waiting to be paid.
Have a parent be your co-signer on a small loan and use that opportunity to improve your credit by making the payments before they are due. You can also have your parents put you as an authorized user on one of their accounts. If they have good credit, then it will help boost yours as well.
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