How to Build Credit as a College Student

College is a pivotal time, blending excitement with financial realities. That's why building credit early is extremely important. Think of it as setting yourself up for success. A good credit score can help you get better interest rates, snag great rental deals, and even land your dream job. The sooner you start, the better!

Here are a few ways to build credit as a college student:

1. Be a legitimate user

Ask your parents, seniors, or guardians with a good credit score to add you as an authorized user on their card. This way, you can build your own credit without having a card of your own. 

2. Get a student credit card

Student credit cards come with no yearly fees and lower credit limits. Make small purchases, such as buying gas and groceries, and pay for them in full and on time every month. This builds your reputation as a responsible borrower and makes a good start for your credit score.

Read: 7 Benefits of Having a Good Credit Score

3. Look for secured credit card options

Sometimes, finding a conventional student credit card can be tough, and that is when a secured credit card comes into play. A secured credit card works by depositing a security amount, which acts as collateral. These types of credit cards have a lower credit limit. However, a secured credit card is a great starting point for establishing your credit history.

4. Make small purchases and repay on time

It might seem like credit scores get affected only when big purchases are made and not paid back on time. While this is partially true, it is not the only way it works. Small daily purchases such as gas, grocery, and electricity bills also play a role in maintaining your credit score. When you pay with your credit card for these daily miscellaneous expenses, pay back on time and in full.

Read: 10 Credit Mistakes You Must Avoid

5. Monitor your credit score 

While working on the steps mentioned above to maintain a decent credit score, it is equally important to keep an eye on your credit score. You can easily get a free report from credit bureaus such as TransUnion, Experian, and Equifax. This way, you will be able to track your score and maintain it.

Building a good credit score takes patience, consistency, and time, but the results are worth the wait. When you start focusing on your credit score early, it shapes you up for a better financial future filled with many exciting opportunities.

FAQs

1. How can I build credit without getting my own credit card?

Become an authorized user on a parent's or guardian's credit card with good credit history.

2. What's the best way to use a student credit card to build credit?

Make small, regular purchases like gas or groceries and pay the balance in full and on time each month.

3. What is a secured credit card, and how does it help?

It's a card where you deposit a security amount as collateral, which helps establish credit history, especially if you can't get a regular student card.

4. Do small, everyday purchases impact my credit score?

Yes, using a credit card for small purchases and paying them off on time helps build a positive credit history.

5. How often should I check my credit score?

Regularly monitor your credit score by getting free reports from credit bureaus like TransUnion, Experian, or Equifax to track your progress.