Good Credit Score for a College Student

Many college students are in their early adulthood and thus just starting to build credit. Unfortunately, students sometimes are careless with credit, running up credit cards and failing to pay on time. However, how well they handle credit during the college years can decide whether or not they can get the loans they need to complete their educations, and whether they can land jobs, finance cars and get mortgages after they graduate.

Building Credit

College students who have no credit because they've recently come of age can start to build credit by applying for store credit cards and secured credit cards. Such cards report to the three credit bureaus --- Experian, Equifax and TransUnion --- so establishing a positive payment history can help build a credit score enough so that other lenders, such as national credit card companies and banks, will be more willing to extend credit to them.

Use a Cosigner

If you are in college, it is likely that already have some student loans. Approval for many of these loans is typically contingent on need rather than on a good credit score. Student loans will help build your credit once they go into repayment and you start making monthly payments. Getting other types of loans with the help of a cosigner is a good idea. If you are short on money for books one semester, you might consider getting a private loan from your local credit union or banking institution with the help of a cosigner. Paying this loan off on time will give your credit score a boost.

Responsible Use

Use your credit cards every month, but don't charge more than 30 percent of your limit. If possible, pay off the full amount charged each month to avoid interest. Additionally, pay more than the minimum amount of your monthly payment on any loans you may have. This shows lenders that you are responsible with money, and will make you seem like a good investment to lenders. The longer you have open accounts in positive standing, the higher your credit score will rise. Request your credit report yearly to ensure there are no errors that could be dragging down your score.

Benefits

While college is traditionally seen as a time to experiment, taking unnecessary risks with your credit will hurt you for many years to come. On the other hand, being responsible with your credit will lead to a favorable credit score. This will ensure that if you need to take out a private educational loan to finance some of your schooling, lending institutions will welcome your business. If your car suddenly dies, you will be able to finance a new one without paying exorbitant interest rates. Because employers often check credit reports of potential hires, a good credit score will also ensure that after graduation, you're not denied employment because your credit report reflects financial irresponsibility.