How to Build Credit as a Student

The world we live in today is controlled by financial standing and recent college graduates may find it tough to establish themselves in the real world. Apartment leases, car loans and even signing up for internet service requires a respectable credit score. The good news is that there are several ways for college students to earn and build their credit scores while in school so that they are prepared when they graduate. Here are some helpful tips on how to build credit with a credit card.

How to Build Credit as a Student:

Become an authorized user

Being entrusted with a credit card is a large responsibility, especially for children heading off to college. It is recommended that the first credit card for students should be an authorized user of the parent’s credit card. FICO allows “piggybacking” for family members in an effort to allow individuals to build credit intelligently.

Open a credit card

If the student can show proof of income, they may be eligible to open a card of their own. This is a large responsibility for most college students to take on, especially if they don’t have a firm grasp of financial accountability. Choosing the right credit card is also very important because of interest rates, rewards, credit limits, annual fees and so on. Making sure the card fits the needs is crucial.

Use for small, infrequent purchases

It becomes easy to pull out the credit card for all your purchases but it is important to only use it for small, infrequent purchases to keep a good handle on the limit. Life happens and emergencies come up, which is one plus side to having a credit card to be able to cover such situations when they arise.

Pay the balance and bills

Just having a credit card isn’t the way to build credit. It is important that the balance and any other monthly bills are paid on time. Missed or late payments can hurt a credit score severely. Also, keep in mind the interest rate for any unpaid balance because students will often have high-interest rates for their cards.

Student Loans

These are great and provide many students with an excellent way to finance their education, however, it can be very tempting to use the loan money for other purposes. Keep the educational loans strictly for educational purposes.

Credit is a topic that should not be taken lightly, especially for students. If you find yourself with questions or in a less than ideal situation with your credit and finances, Color My Credit has your solutions. Please visit to begin illuminating your future and coloring your financial legacy.