Kellyn Simpkin-Girl Holding Money

How to Build Credit as a College Student

In the future, do you plan on: 

1. Buying a house? 

2. Getting a job? 

3. Purchasing a car? 

4. Buying a textbook from the Bentley Bookstore? 

If you answered yes to any of these questions, keep reading. If not, keep reading. 

Good credit is important if you want to get any of these things (and more). To lenders, having good credit shows you are responsible which means they will trust you to pay them back. 

Lenders are more likely to give you more money and at lower rates, if you’ve proven that you are trustworthy. 

Now you know what a good credit score can get you, let’s look at how you can get one. 

Step 1. Get a credit card. 

If you don’t have one, make sure you look into cards that are good for students with no or little credit. I recommend the Discover it® Student Cash Back and Capital One Student Card. (P.S. the Discover card rewards you with cashback for good grades!) 

Step 2. Set a budget. 

Once you’re approved for a credit card, they give you a limit. If you want a high score, make sure you don’t use more than 30% of your credit limit. For example, if your limit is $1000, don’t spend more than $300. If you do spend more, it shows the credit card company that you have a tendency to overspend which can indicate you will have trouble making future payments.

Take advantage of your banking apps. They usually tell you how, where, and when you’re spending all of your money. Use their data to figure out where you can cut out spending and start saving more money. 

Step 3. Pay your bill on time. 

This is probably the most important step in building good credit. If you pay your bill in full on time, you won’t get charged interest and will be debt-free! 

Step 4. Treat yourself! 

Building good credit doesn’t mean you can’t enjoy a treat once in a while. Go and get lunch on Moody Street after class or on the weekends. Make sure to tip and pay your credit card bill afterward!