As a teenager enters college, more doors of opportunities open up. This is the time when you can get your own license and drive your own car, work part time jobs to earn your own money, and build up your personal credit history. As you prepare yourself for the future, building up a solid credit is best started while you’re in college. Below are some tips on how you can build good credit:
Get a department store or gas station credit card.
A lot of department stores offer credit cards that can be used for purchases. Since there is no credit check, anyone can get approved instantly. Gas stations also offer gas credit cards to their frequent customers and if you drive a car, you can easily get one. Like a department store card, no credit check is need so you can get approved right away.
Department store cards and gas station cards are quite similar to credit cards, in the sense that it allows the cardholder to purchase in advance and pay at a later date. Usually, the cardholder is given at least a month or 30 days to pay back the balance. However, unlike a credit card that allows you to submit minimum payments, store cards and gas station cards strictly require full payment on your due date.
Make sure that the issuer provides credit reporting service. Remember that the only way you can establish credit history is if your payments are reported to the major credit bureaus. To maintain good credit, charge only affordable purchases to your store cards and be sure to submit your payments on time.
Apply for a student credit card.
Student credit cards are exclusively offered for students. Regular credit cards require good credit and secured credit cards require cash deposit. The only time you can get approved for a student credit card is while you’re still in high school or college. While standard credit card companies require a co-signer for young cardholders, you can get approved for a student credit card without a co-signer.
Find a student credit card issuer that will report your payments to the major credit bureaus. Credit cards do give you the option to carry over your balances and pay only the minimum due but if you want to avoid bad debt, it’s best to pay off your full balance each month. Through full payment, you can avoid the interest rate costs and you can be sure that your credit history will be free from negative marks.
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