How to Build Up Credit As a Student

After college, you may need to take out a loan to buy a car, get approval to rent an apartment after a credit check or even need a mortgage. Building your credit score while a student will improve your chances of getting approved for loans and possibly building a good credit score. A good way to build credit is to take out credit cards in your name, so long as you limit the balances you carry and try to pay on time.

Instructions

1

Become a co-account holder on a credit card with your parents, assuming they pay their bills on time. When you are listed as an account holder, the account information is added to your credit report even if you do not make any of the charges. In addition, you will have a longer credit history, which helps your credit score.

2

Apply for your own credit card. A credit card law passed by the federal government in 2009 requires you to be at least 21 years old or show proof of income to get a credit card in your own name. If you do not meet these requirements, you must have a cosigner. If you cannot get a regular credit card, such as a Visa or Mastercard, apply for a credit card offered by a retail store as these cards may have a lower credit limit but will still help build your credit history.

3

Make all of your payments on time for credit cards and other debts like student loans. Each on-time payment adds to your positive credit history. If you make a late payment, your credit score will suffer.

4

Pay off as much of the balance as you can each month. Part of your credit score is dependent on how much debt you carry and how much of your available credit you use. So the lower your balances the better.