Start A Credit History

Category: Finance, Credit.

Building and maintaining good credit is more important today than ever.

But don t fret- abide by these five must know credit tips for students and you shouldn t have any problems at all. Whether we realize it or not, so many parts of our daily financial lives revolve around our credit scores. Start a Credit History. Go ahead and open up savings and checking accounts- you ll need them. The best way to start your credit history off on the right foot is to keep it natural and realistic. Next, try starting off with a student credit card. Your credit worthiness will gradually begin to grow just by conducting everyday transactions.

Use it only to make purchases that you d make anyway and then pay it off in full and on time each month with the funds from your checking account. Stick to One Credit Card. Sure, the limits start off fairly low, but they will rise as you make purchases and pay the bills on time. If you re using your credit card only to make planned purchases and paying it off each month, having one credit, chances are card is all you ll ever need. Know that having more than one credit card as a college student statistically has a history of leading to credit troubles. This is probably one of the most important credit tips for students there is.

Live On a Budget. Write down all of your monthly expenses at the beginning of every month in the order of what you ll need to pay first. Actually writing everything down helps reinforce your understanding of your own individual financial picture and does help prevent unnecessary impulse buys that often snowball and cause credit problems later. Use your income to pay the items according to priority and be sure not to spend any money at all outside of these categories until all expenses are paid first. Financial Responsibility Counts. Paying bills isn t quite as fun as spending money in the first place, but your credit will be badly damaged for many years to come if bills are paid late or not at all. Yes, you have to make that credit card payment on time!

It s always better to pay a week early than one second late. Check Your Credit Reports Often. Just as important as paying the credit card bill on time is keeping well within the confines of your credit card s limit. Just because you re a student and probably only have just begun your credit history recently doesn t mean that you re not a target for identity thieves. Everyone is eligible to check copies of their credit report for free each year. Seeing your financial picture from all perspectives is essential to building a lifetime of good credit.

Try checking one of the major three credit bureaus( Experian, and Trans Union, Equifax) once every four months to make sure there s no funny business happening at your expense. Credit affects practically everything these days, so control your credit score by actually taking advantage of these credit tips for students instead of letting your credit rating control you! Damaged credit will severely hinder everything from the purchase of a home later on in life to the amount you ll pay for car insurance.