June 17, 2024
    College is the first time adults are out on their own, but it's often hard to establish credit. Learn how to build credit as a college student easily here.

    How to Build Credit as a College Student

    Are you a college student trying to build a credit history? Do you sometimes wonder how you’ll ever succeed if you can’t seem to get things started on your own?

    Over 35 percent of college students in the US have credit card debt. You want to be one of the students that manage to use that debt wisely.

    It can be challenging to establish a good credit history when starting out in life. Here are some easy tips on how to build credit as a college student.

    Authorized Users Build Credit

    If you’re wondering how to build credit when starting out, one great way is to use someone else’s credit history. Become an authorized user on a parent or guardian’s credit account and get started right away.

    Make sure the credit issuer reports any authorized users to the credit bureau. If they don’t, this technique won’t build your credit history.

    Have Someone Co-sign

    One of the easier ways to obtain credit cards for college students is to have someone co-sign on your account. You are entirely responsible for any charges on the card. If you make your payments on time, you will build up a good credit history.

    Open a Bank Account

    While many students use credit cards for most of their expenses, it’s a good idea to open a bank account when you go to college. If you work part-time, your employer will need a way to deposit your pay. It will be easy to do if you’ve already established an account.

    When you open the account, you need to provide documentation to prove you are a student. Some banks don’t charge college students fees while they are in college. Click here to learn more about the benefits of a bank account.

    Get a Student Loan

    If you need access to additional financing to finish your degree, federal student loans can help you get there. 

    Most federal loans don’t require credit history, and they are a great way to prove you are financially responsible. When you consistently make the payments on time, you will establish an excellent credit history.

    Consider a Student Credit Card

    Some credit card companies offer cards targeted toward students’ needs. Many don’t require a credit history to apply, and sometimes they offer rewards. 

    They may give cash back for good grades or increase their rewards when you make your payments on time.

    Obtain a Secured Credit Card

    These cards require you to make a cash deposit before using the card. The deposit is equal to the credit limit on the card. The issuer will use that money to pay the card if you are late. Using a secured credit card is a great tip to build credit with your own money.

    How to Build Credit as a College Student

    When you understand these great ways to get started, you’ll know how to build credit as a college student. Starting slowly and making your payments on time is a great way to build a good credit history.

    If you enjoyed learning about ways to build credit, we have more advice about money on our blog. Check it out today!

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