Steps to Building a Good Credit as a College Student

College life can be exciting as most students are away from home for the first time and are in party mode. A lot of wrong decisions can be made which can impact your life in the long run. One of these mistakes can be related with your finances.

Some people believe that being a college student and building a good credit is a difficult task; on the contrary, it is not. If you plan before you act, then anything is possible. You just have to act smart and save a good amount of credit score before you leave college.

Scroll down and learn all these ways through an easily understandable step by step guide. You just need a plan to make this work.


  • 1

    One Credit Card

    Maintain a one credit card only policy. You will get loads of offers as credit card companies are well aware of the financial carelessness that is often associated with college students. Do not fall in the trap and take only one credit card which offers you the best options and the least Annual Percentage Rate (APR).

  • 2

    Use Cash

    For most of your purchases, pay cash. It will feel tough but it will help you. For example, if you use your credit card for expenditures such as pizza on a regular basis, you will build up a large bill which you might find hard to pay back. Paying cash will keep you away from such a dilemma.

  • 3

    Careful Credit Card Use

    Use the credit card occasionally in a careful manner. It is important for building your credit. Make sure that you make a purchase for which you already have the cash for and once the bill arrives, you can pay it off right away.

  • 4

    Pay Bills on Time

    As you will be probably renting a space, make sure that you pay your rent and utility bills on time. These too can be reported if not paid on time to a credit union and can affect your credit score in an adverse manner.

  • 5

    Do Not Co-Sign for Friends

    If you have a good credit score, it is likely that friends around you will approach you for co-signing on their various credit options. In such a case, a polite refusal is recommended. Although you may be a very serious person on financial matters, it may not be the case with your friend. It can have a negative effect on your credit without any fault of your own.

  • 6

    Student Loans

    Although these are generally due for payment after your education is completed, it is possible that you may need to pay some back while you study, especially short term loans. Use the money only for educational purposes and pay back the required amount on time.

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