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4 Ways to Start Building Credit in College

January 11, 2019

It’s never too early to start caring about your credit. After all, there is no telling when you might need a loan or a new credit card, and if you need the best terms and the lowest interest rate, then it’s critical that your credit score is high. 
College time is perfect to start building credit as you are mature enough to get your finances under control and develop good credit habits. 

The following are 4 ways to get started:

1. Get a Credit Card and Use it Wisely
One of the easiest ways to build credit is using a credit card. This is because its approval process is simple and fast, and you don’t even need to offer collateral in most cases. However, in case you are unable to get a card, then you can offer to deposit security money to facilitate the process.

 2. Ensure Your Student Loan EMIs are Paid on time
If you are repaying a student loan, then you can build credit by ensuring that every single EMI is paid on time. This is because timely payments of credit card bills and EMIs play a huge role in credit score calculation.

3. Get a Secured Personal Loan
Since you don’t usually have credit as a student, it’s not easy to get a personal loan. However, you can still get a personal loan by securing it against gold, stocks, etc. Opening a loan account can go a long way in building credit.

 4. Check Your Credit Report
When was the last time you checked your credit report? It’s highly recommended that you credit your report every few months to ensure that it has no discrepancies or errors. If you do find mistakes, then you can contact your bank immediately as removing these mistakes can improve your credit score considerably.

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Photo credit: lendingmemo_com on Visual Hunt / CC BY

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