How to improve your Credit Score in College

| September 27, 2013 | 0 Comments

Credit Score College

If you are currently a college student, one of the best habits you can develop while still in school is learning how to establish and maintain excellent credit history. Although it may seem insignificant now, developing and maintaining an excellent credit score will benefit you in the long-run. Your credit score can tremendously impact the quality of your life. Bad credit can make it difficult to do things like rent an apartment, take out student loans or even purchase a new car. Here are some recommendations to consider if you are looking to improve your credit score while in college.

Apply for a small credit card
One of the first things you can do to improve your credit score while in college is apply for a small credit card. There are many credit card companies and other financial institutions that offer credit cards to college students. You can apply to these credit card companies online and get a quick application decision. Just make sure you that you apply for a card that has a relatively low interest rate and a modest credit limit. Personal finance experts recommend that you do not exceed more than 30 percent of your credit limit. Going over does not look favorable in the eyes of creditors and lenders. Use this card solely for monthly expenses such as food, transportation and other household expenses.

Purchase a car
Another effective way to improve your credit score while in college is to look into financing a vehicle. Since there is a strong likelihood that you do not have enough established credit history to take out a car loan, see if you can get one of your parents, older siblings or another relative to co-sign on the car for you. Find an affordable car and agree to make on-time, monthly payments with the individual who helped finance the car for you. The last thing you want to do is spoil a relationship that you have with a family member because of your financial recklessness. Only do this if you can afford paying a monthly payment.

Pay on time!
Do not forsake paying your various bills on time for partying and other recreational activities. Missing a payment on a credit card, utility, internet service or cell phone service can affect your credit score. If your finances are tight one month, call creditors and other companies as soon as possible. Explain to them your situation to avoid having those unpaid bills go into collections. Once those unpaid bills are reported to the three, major credit bureaus, you credit score will suffer. To make things easier, contact your creditors and other monthly services and set up automatic bill payment to avoid this problem.

Become an educated consumer
Establishing excellent credit while in college is a result of being conscious and educated as a consumer. Always do your best to stay on top of your finances by researching a variety of money saving tips, monthly budgeting strategies and other ways to improve your finances. By doing this, you will develop money-saving habits and avoid excessive spending by learning how to prioritize your monthly expenses.

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