How to Build Credit as a Student

Building a solid credit score early on is crucial for college students. Your credit history impacts everything from qualifying for loans and credit cards to securing an apartment after graduation. The good news? You can start establishing responsible credit habits in college.

1. Get a Student Credit CardAn easy way to build credit is to get a student credit card. Student cards don't require an existing credit history and often have benefits like cash-back rewards for good grades. Paying on time and keeping your balances low will help build your credit score.2. Become an Authorized UserStart building credit without the legal responsibility of paying debt. Talk to your parents or guardians about adding you as an authorized user on their credit cards. If the primary cardholder reports authorized user activity, their on-time payment history will appear on your credit report. You will build good credit without the legal responsibility of paying the debt.3. Apply for a Secured Credit CardAre you struggling to qualify for a student credit card? Consider getting a secured credit card instead. These cards need a refundable security deposit, which will be your credit limit. Making small purchases and payments each month demonstrates responsible usage that boosts your credit score over time.4. Keep Credit Utilization LowLimit your credit utilization ratio to below 30% across all cards. If you have a $500 limit, do not carry a balance over $150 month-to-month. High credit utilization reduces your credit score while keeping balances low builds it.5. Pay All Bills PromptlyAt a minimum, pay at least the minimum amount due on all bills before their due dates. Set up autopay through your bank or card issuer to ensure payments post on time. Late and missed payments hurt your credit utilization and payment history.6. Check Credit Reports YearlyMonitoring your credit reports each year is essential. Contest any errors with the credit bureaus right away to avoid issues. Staying on top of your credit report ensures everything is accurate.

Building credit early on in college pays off with better loan rates and credit card offers after graduation. Be patient, focus on innovative money management, and your credit score will steadily improve. Contact Energy One Federal Credit Union today. We offer Visa® College Real Rewards Card and provide financial advice to get personalized tips on building your student credit history.