It’s not exactly a secret that trying to build credit as a student is like power washing a house with toothbrush. There are a lot of hurdles, but having an established credit history is absolutely crucial for pretty much every big life event in the book.
For instance, did you know that in many cases you need to pass a credit check to rent an apartment? Or that for pricier cell phone carriers like Verizon, you need credit just to start a contract?
Credit is more widespread than you’d think, so here are some tips to bulk up your history and score:
Credit comes from more places than just cards.
If you thought that a credit card was the only way to build credit, you’re mistaken. Many accounts with monthly payments like student loans and utilities report to the credit bureaus regularly. This is an easy way to build your history while paying for normal, routine things.
Get a (prepaid) credit card.
So, obviously a normal credit card will boost your score with proper use, but have you heard of prepaid credit cards? They essentially are like gift cards… except you actually can build credit by using them and consistently putting money on them. Think of it like a checking account that builds your credit when you use it.
See some prepaid credit card options here »
Consolidate your loans for a small credit bump.
If you’re getting ready to graduate or already have, consider consolidating your loans early to get a nice boost to your credit score and history. When you perform a consolidation, you essentially are paying off all your current loans and opening up a new master loan. The credit bureau sees this as responsible finance and subsequently increases your score.
Aside from the ideas above, make sure to be careful with your spending and generally try not to charge anything that you can’t pay off within 3 months. I tend to disagree with the people that say, “Don’t buy anything unless you have cash for it right away” because there are plenty of necessary purchases that aren’t $200 or less.
View the original article here
For instance, did you know that in many cases you need to pass a credit check to rent an apartment? Or that for pricier cell phone carriers like Verizon, you need credit just to start a contract?
Credit is more widespread than you’d think, so here are some tips to bulk up your history and score:
Credit comes from more places than just cards.
If you thought that a credit card was the only way to build credit, you’re mistaken. Many accounts with monthly payments like student loans and utilities report to the credit bureaus regularly. This is an easy way to build your history while paying for normal, routine things.
Get a (prepaid) credit card.
So, obviously a normal credit card will boost your score with proper use, but have you heard of prepaid credit cards? They essentially are like gift cards… except you actually can build credit by using them and consistently putting money on them. Think of it like a checking account that builds your credit when you use it.
See some prepaid credit card options here »
Consolidate your loans for a small credit bump.
If you’re getting ready to graduate or already have, consider consolidating your loans early to get a nice boost to your credit score and history. When you perform a consolidation, you essentially are paying off all your current loans and opening up a new master loan. The credit bureau sees this as responsible finance and subsequently increases your score.
Aside from the ideas above, make sure to be careful with your spending and generally try not to charge anything that you can’t pay off within 3 months. I tend to disagree with the people that say, “Don’t buy anything unless you have cash for it right away” because there are plenty of necessary purchases that aren’t $200 or less.
View the original article here
