One of the most exciting yet challenging parts of growing up is becoming financially independent. You do not know how you are going to survive, where your income will come from, yet, the only thing you understand is that you need to save credits for a happier life. Normally, this notion becomes a reality when you get admission into a university and have to pay for your fees and bear other expenses on your own.
So, if you are among the struggling individuals, need not worry anymore. This article has the right set of steps to help you get a good credit score. Then, you can be eligible for loans, cell phone plans, rental applications, auto insurance, great job prospect or anything that you desire.
4 Ways to Boost Good Credit As A Student
1. Consider Whether Student Loans are Needed
If you do not have enough funds to support your undergraduate or graduate degree, you may require additional loans to continue. However, it can be difficult to qualify for the best private loan or credit cards with little or no credit history. But how can a credit history be made without credit cards or loans?
Well, availing the federal student loan is one way of getting started. Because unlike private student loans, it doesn’t require any credit check. This means you can easily borrow the money and build your credit by responsibly paying them off later.
2. Piggy Back On Your Parents Account
Assuming your parents have a good credit habit, you can request them to become an authorised member on their credit card. It will not only help you build a good credit history but also allows you to access a credit card. You can make purchases but payment of the bills would still be the primary cardholder’s responsibility.
Moreover, being an authorised user, you will receive credit reports about the account activities which can help you stay on the track. However, you need to be cautious at all times. Because, if the primary cardholder starts carrying a large balance or misses any payment deadline, your credit score will be marked negatively.
3. Apply For A Personal Credit Card
Once you are eligible to open a personal bank account, make sure you get it done as soon as possible. It will be one of the best ways to build and maintain a good credit score.
Note that getting a credit card is not the end of worries, you will be held accountable for each of the activities on your account. Therefore, you must be careful and smart enough to face forthcoming uncertainties. To begin with, choose the credit card that has no annual fees and low-interest rate. If you have a student loan for your degree, use the credit card for small expenses like daily food items or online subscriptions. Be sure to pay the bills timely as it is the only thing that will help your credit score.
4. Practice Good Credit Habits
Whether it is a credit card or student loan, you will need to manage that score wisely. Here, adopting smart financial techniques can help you your way. Following are some of the practices that you should always keep in mind.
· Perform Timely Payment Of The Bills
While you are trying to build a good credit score, you must ensure purchasing only those things which you can afford. Because if you aren’t able to pay off the balance amount on time, you might not only lose your lender’s trust but credit scores as well.
· Avoid Applying For Multiple Cards
Having a single credit card and using it responsibly will help you build up your credit scores over time. But, if you open multiple accounts at once, lenders will view you as a risky borrower when compared to those who have long credit histories and few accounts.
· Use Credit Cards Occasionally
If you rely more on the card than cash, there is a greater possibility that you will always remain in debts. Therefore, it is better to limit the use of credit card for occasional purposes such as dinner parties and night outs or emergencies.
The sooner you start building your credit score, the longer your credit history will be. If you have applied for a student loan, you can receive credit scores by repaying them via your own card or through another individual’s account where you are recognised as an authorised user. However, just make sure that you practice good credit habits to be eligible for future borrowings.