How to Build Credit as a College Student

College is where students learn about living on their own, how to get along with a roommate and how not to depend on the bank of Mom and Dad. Young adults tend to spend lots of money once they are out on their own, and credit card companies know this. College students often pay their credit card bills before anything else because they want to keep spending. Building a good credit history and being responsible with credit will help avoid future credit problems.

Instructions

1

Establish a bank account. A checking or savings account is the beginning of building your financial history and creditworthiness. You can open a free account with a minimum deposit of $100 at most financial institutions. A savings account is a good way to put aside a little money every payday for emergencies instead of using a credit card.

2

Search for low-interest credit cards and read the fine print before signing the agreement. Some cards have minimum income requirements and require an established credit history. An alternative would be to ask a parent to add you as an authorized user on his card.

3

Apply for a department store card or gas card. These cards often have a beginning limit of $200 to $300 until the applicant has established a history of reliable payments. The credit limit is raised periodically after that.

4

Apply for a card secured by a deposit. If you don't qualify for a regular card because of a lack of credit history, applying for a secured card can give you a first taste of independence. A deposit of $100 to $300 is generally required, along with an application. Issuers of secured credit cards report to the credit bureaus just like issuers of unsecured cards, so pay your bills on time.