What’s the safest way for a full-time college student to go about getting/obtaining credit ?
I’m a full time college student with two part-time jobs. I’m not making that much money but I will be gradutating from college (again) sometime soon with my BA this time. I know that I’m going to need credit in order to do alot of things. I have several bills that I pay automatically and on time every month with my check card, but to my knowledge that really doesn’t mean much. The safest approach to gaining credit that my bank informed me about was to purchase gas/groceries with my check card. However, I dont have a car at this time. Along with that I dont have a steady grocery purchasing schedule, so any guidance would be greatly appreciated. Thank you.
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Try going to a federal credit bank and opening a loan or line of credit with them. They raise (or drop) your credit score directly with how well you pay them back. If you are sure you can make payments then thats a good way to go.
Getting good credit is not an easy road. Whether you choose to get a Credit Card, A Store Revolving Credit Card, or even purchase a car, you’ve got to be very very disciplined.
I suggest never purchasing anything with a credit card that you couldn’t with your bank card. At the end of EVERY month, pay off the entire balance.
Do not apply for many credit cards. Find the credit card with the best terms and interest rate, apply once, and watch it carefully.
You’re Credit Score is determined by your credit limit, your credit/debt ratio, length of time of your credit history, payment history, credit inquiries, etc.
I suggest checking your credit report for free. You can check it once per year per reporting agency. I suggest checking one agency every 4 months (=12 months). Checking your own credit report does not hurt your credit score. If you purchase a score with your report, usually they’ll give you can suggestions to improve your score.
Prepare a budget before you even fill out a credit application.
If you fail to plan your expenses, you plan to fail.
You can apply for a credit card while in college and most credit card companies are more than willing to provide college students AND college graduates with credit.
The challenge is to use the credit you do receive responsibly.
A general rule is if you can’t pay for the item outright or conceivably within the next 30 days, you have no business putting it on your credit card.
The road to debt is established one “gotta have” purchase at a time.
Be prudent.
Be judicious.
Be frugal.
Be wise.
Some banks offer credit cards where you put a deposit on the card, and that is your limit. You pay it like any other credit card, but it is secured by that deposit, and it will reflect positively on your credit report if you make proper payments.
There are many credit card programs for students. They usually advertise in the school paper or bookstore.
Some banks have student credit account programs. I have a link for you. Remember to use credit wisely. Only buy what you are able to pay off at the end of the billing cycle. Interest really add up.
There are a couple of very good credit cards that are only for college students. Go to this site and apply for one: