Building credit in general is hard. That’s because if you don’t have credit nobody wants to give you credit. And, you can’t get credit if nobody will give it to you so you are stuck in a cycle. Fortunately for college kids, this is a time when credit card companies are a little more open minded. They feel they are dealing with people will go on to get good jobs and be responsible citizens. Also, they know most college kids’ parents are willing to bail them out should a major problem occur. So, getting credit while in college is actually really easy. You can get credit even if you don’t have a job! The following suggestions will help you build your credit while in college so that when you graduate you can do the things you want to like buy a car or house, get a good job, or even rent an apartment.
Apply for a Card
The first thing you want to do is apply for a card. But, don’t apply for just any credit card. Apply for a student credit card. Student credit cards have special rates and offers just for students. Also, the cards are usually designed with students in mind. So, they may have a low initial limit that grows with you. Or, they may be interest free for the first year and then have an APR later on. All of these are some of the tricks that credit card companies offer students. Just make sure you do the research so you find the best student credit card for you.
Don’t Use Your Limit
Another way to build credit is to never use up all of your credit. That means if you have a $1000 limit you don’t want to carry a balance of more than $300 ever. This seems hard to do, but all it takes is a little self control. Just decide you won’t use your credit card for items you can’t pay for by the end of the month. That should take care of any problems and help you manage credit responsibly forever.
Make On Time Payments
In order to build credit it is also very important to make on time payments. This means you should make a monthly payment before the due date every time. Some companies will consider your payment late if it arrives later than 1 pm on the due date. And, while that is not necessarily fair it is the way the credit card companies work.
Don’t Apply for Too Much
Finally, don’t apply for too much credit. Doing so makes you look desperate and you don’t want to do that. So, simply apply for one credit card and use it responsibly. Then, after six months or so, you may want to apply for another although you don’t have to. It’s just an option that is available for you.
Just follow these tips and you will improve your credit while in college and prepare yourself for the outside world.