Tips for Building Good Credit in College
Beginning college typically comes with financial independence which means qualifying and applying for loans, cell phone plans, auto insurance, and more, which can impact your future drastically. Learning about the best ways to begin building good credit while you are young, will not only help you succeed in the now but also into the future. With the helpful tips below, you will be closer to building good credit while in college!
Start Learning
Before diving into the deep end of all things credit, it is important to have a good understanding of what credit is and what it does in order to gain good credit. Understand that your credit score should reflect a consistent, on-time payment history, which will result in good or even excellent credit. Make sure you are knowledgable in all the logistics before starting.
Become an Authorized User
Beginning small, with less responsibility, is a great way to begin building good credit. Therefore, becoming an authorized user on a parent’s account is a great way to boost your credit, that is if your parents have good credit. Piggybacking, the term used to describe this process helps credit scores while decreasing associated risks attached to credit cards, because the primary account holder can monitor spending.
Open Your Own Credit Card
Opening your own credit card, with no cosigners, comes with full responsibility requiring your full attention and dedication to ensure you stay on top of it. When choosing a credit card it is important to evaluate all of the requirements such as bill period, fees, and overall payment system. If you are unable to get an unsecured credit card, try opening a secured credit card instead. Finding the credit card that is right for you is essential to begin building good credit. When setting up your credit card, stick to one card; having several credit cards at one time can cause major issues that can be avoided with only one card.
Stay on Top of Your Spending
Spending money on a credit card does indeed cost you money despite people’s misconceptions about credit cards. Knowing how to regulate your spending on your credit card will help you successfully build credit. Starting small, with occasional, regular, purchases such as groceries, gas, or monthly subscriptions versus large, big-ticket expenses. Paying all other bills such as rent on time can also positivity affect your credit score. Starting small helps you pay off your balance at the end of each month which is a must. Therefore, when spending, make sure you can pay off those expenses in the end.
Building credit can be complicated especially when you are just starting out; however, we understand how to navigate the difficulties. We are here to help you with any questions that you may have when it comes to credit! Contact us through our website or call us at 843-549-2265 today to learn more about building good credit!
