10 months ago
Student loans are always the talk of the town. Having a good credit score is a contributing factor to having A LOT less trouble with loans down the road. What’s more, the Typical Student team knows how to start establishing a good credit score already in college. Previously, we focused on student loan forgiveness strategies in IMPORTANT: Student Loan Forgiveness Checklist.
Why Is Having a Good Credit Score Important?
Not to beat about the bush, here are the main reasons to start thinking about establishing a positive credit score while in college:
Hopefully, these are enough reasons to start building your credit in college?
How to Build a Positive Credit Report?
#1 Getting a student credit card
One of the easiest ways to start building a credit report is getting a credit card while in college. There are so many types of cards, each having its own peculiarities. Doing some prior research will help you understand which type of card would suit you best. However, owning a credit card you must actually use it. Here are the basic tips:
#2 Ask your parents to become an authorized user on their credit cards
If your parents trust you enough and they have a good credit, this could boost your score and help you down the road.
#3 Pick trustworthy roommates
Renting an off-campus apartment can be challenging if your roommates aren’t trustworthy enough. Remember, missed roommates’ payments could hurt your credit in first place.
#4 Make timely payments on your bills
Same as with credit cards, missed/late payments on your Internet, cable, or mobile bills could damage your credit report. Here, every type of payment matters: library or school fees, doctor bills, parking tickets could be sent to collections and hinder your credit score.
#5 Refrain from co-signing for your buddies
No matter how good of a friend you are, never co-sign for your friends’ financial obligations. You can’t control if your friend will be paying down the road, so don’t take this burden upon your shoulders.
#6 Keep track of your credit report
Check your credit report from time to time on annualcreditreport.com Monitoring your credit report will help you see if there’s an you didn’t open, identity theft, or other suspicious activity.
#7 Prevent your identity theft
Keep all your important documents in a safe place. No matter how much you trust your roommates or friends, make sure your Social Security ID, driver’s license, and bank account information are out of their reach.
#8 Update personal information on all your accounts
In case billa go to the wrong address, you might have issues with missed payments and fees which will result in bad credit score. For this reason, make sure you update your personal information as many times as you change your place of living.
To sum up, see the infographic below:
Of course, these are not all tips on having a positive credit score, but surely the most essential ones. Hopefully, they’re going to help you build a groundwork for the future.
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