If you want to get a jump start on building your credit as a student, you’ve come to the right place. Building credit now will help set you up to meet your future goals. Below, we’ll walk you through five ways you can start and continue to build credit while you’re in college.
1. Pay your bills on time
If you already have a credit card in your name, the most important thing you can do is continue to make on-time payments. Payment history is the single biggest factor when it comes to building credit. If you can pay your bill in full, even better.
2. Get your own credit card
Consider opening a line of credit as a way to start building payment history. Make sure you make on-time payments and keep your credit utilization ratio low, only spending around 30% of your credit limit at the most. You can also open a secured credit card, which comes with less risk. With a secured credit card, you can only spend as much as you deposit, so it operates like a debit card.
3. Become an authorized user
If you don’t qualify for a credit card yet, you can be added as an authorized user to a family member’s credit card as a way for you to start building credit. The best part? You don’t have to charge any purchases to start building credit this way. Keep in mind that not every credit card company reports authorized users to the credit bureaus, so check on this in advance.
4. Try Brigit’s Credit Builder
You can also start building credit with a tool like Brigit’s Credit Builder. We take out a 24-month loan on your behalf and keep the funds in a new deposit account for your benefit. You can contribute as little as $1/month and start building payment history that we’ll report to the three major credit bureaus—and you’ll save money as you go. Learn more here.
5. Pay down your student loans
If you have student loans, paying them down can boost your credit, just like making monthly credit card payments. You can even start making payments before graduation, saving you money and giving you a head start on building credit.