How to Build Credit While Going to College

By Uloop Guest Writer on December 19, 2017

Credit is important in life. You need it to get a new home, car, or anything related to financing, your credit score holds considerable weight with your lender. It is vital that you think early about your credit score and how to build credit responsibly before you need to purchase a home or a vehicle. College is the time of new experiences, unfortunately, many college students choose to have fun without any regard for their credit score. Here are some simple ways that you can build the credit you need while in college, so when you graduate you can have a better start to the rest of your life.


Credit Card

A credit card is a great way to begin building your credit the responsible way, but a credit card should never be viewed as free money. There are interest rates involved when you do not pay the card off completely each month. Many college students have gotten themselves into a lot of trouble as they do not understand the gravity of their spending. Do not use your card for fun activities, but rather essentials. A good suggestion is to use the card for gas and groceries each month and pay it off at the end of the month completely. Also, make sure that you have a job that can support the payment should you have to roll your balance over to the next month. Creditors look kindly on people who pay their cards off regularly each month.

Personal Loan

Some people cannot be trusted with a credit card, it is not that they are not able to get one, but that they simply do not have the discipline to use it responsibly. Personal loans tend to have better interest rates than a credit card and the bonus is that you get the money rather than a piece of plastic to use. Personal loans are a great idea for students as they require little or even no credit and they also allow you to pick how much money you need. You are able to pay the money back in payments or pay the loan off completely at any time.

Buy a Car

Campuses can be quite large today and some are even spread out across entire towns. A car can be an essential tool for getting around town and heading home to see the family on breaks from classes. Car loans are a great way to begin building credit. This is not to say that you are going to be able to get financing for the best and newest car on the market, but a simple older model car that can get you from one place to another is a possibility. The new car can come later after your credit is established.

There are a number of ways to begin building credit, but starting young tends to give you better financial opportunities later in life. You will be thankful for your credit history when you get the best job and are able to get financing for the most beautiful home on the block.

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