How to Build a Good Credit Score in College

College students have traditionally been a target for credit card lenders, with students receiving numerous offers designed to entice them into incurring debt. Thanks to the Credit CARD Act, instituted in 2009, consumers younger than 21 must have a co-signer, or prove their ability to repay a credit card loan, before they incur credit card debt. This bill can help young people protect their credit while working toward a degree. Students can also work to build a good credit score in college, so that after graduation they are in a financially sound position.

Instructions

1

Pay your bills on time and in full each month. Keep meticulous track of bill due dates. Avoid late fees, because creditors report these charges to credit-reporting companies.

2

Choose one credit card with a low interest rate, and apply for it. Resist the temptation to reply to every card offer that arrives in the mail. The offers appear enticing, but you could easily overextend yourself and damage your credit.

3

Use your one credit card wisely. Each month, charge no more than you can pay back in full with the next statement from the credit card company. Try not to carry a balance on your card.

4

Consider a secured credit card if you do not qualify for regular credit. A secured credit card requires a deposit into a savings account, and you must keep that money in the account to secure the credit card. You must pay in full any charges you make to the card. Over time, this payment history will help you build credit.

5

Check your credit reports annually to make sure they accurately reflect your financial activity. Contact the three credit-reporting agencies to correct any errors you find.