5 Ways to Build Good Credit in College

by  Kaitlyn Drzewiecki

The truth is that students don’t know enough about financial literacy. So, why is having good credit essential? A good credit score will help you apply for a future car loan or mortgage.  If you have good credit, that means it will be easier to borrow money for necessities later in life. You can achieve good credit by making your loan payments on time as well. However, you want to avoid having problems with your credit. Use your credit responsibly, otherwise, you could have trouble borrowing money later on. Here are some ways you can start building good credit while you’re still in college.

Open a credit card

Credit cards can help take care of the daily expenses you have as a student. This includes books, transportation, and food. Having a credit card gives you a revolving line of credit with a pre-approved dollar limit. When shopping for credit cards, you should compare the annual percentage rates, fees and if there is a grace period.

Pay your bill on time

If you’ve ever made the mistake of not paying your bill on time, then you’ve had experience with late fees. The trick is to set a date in your calendar for when your bill is due each month. This is a helpful reminder to pay your bill so you can avoid lowering your credit score.

Check your credit report

Your credit report tells creditors who you are, how much you owe and whether you have made payments on time. Many other factors go into your credit report. You can request a free credit report from the three credit reporting bureaus which include Equifax, Experian and TransUnion.

Use your money wisely

Only make purchases that you will be able to pay off. It sounds easy but sometimes we use the excuse of wanting to treat ourselves. You can treat yourself if you stick to your set budget. You should pay for your necessities first and then see if you have any money left over for fun things. Keeping a set budget will help with overspending for the month. You can track your budget using budget planning apps such as Mint.

Check your account frequently for suspicious activity

Credit card fraud happens more than you think. Some ways you can avoid your identity being stolen are to put a fraud alert on your credit report, check your credit reports frequently and change your passwords every so often. This will make it harder for your accounts to be affected. If you suspect fraudulent activity on your account, contact your bank immediately.

The bottom line

Remember, your credit score is based on your past payment history, outstanding debt, how long you have had credit, new applications for credit and your types of credit. Having good credit is very useful in times of an emergency. Overall, good credit will impact your ability to obtain a job or insurance. Start making smart choices now, PR students!

Kaitlyn Drzewiecki, public relations major and music business minor, Class of 2020, was a
member of Belmont Public Relations Student Society of America and participated in the
Chapter’s GROW Mentorship Program. She is an associate member of the Public Relations
Society of America.

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