Students,

A good credit history is a vital tool for students who wants to:

- Get a student credit card

- Buy a student car

- Buy a house

- Get a department store card

- Get a cell phone plan (yes, good credit helps for that too)

Unfortunately most students don’t pay enough attention to building their credit, and who can blame them; it’s not like there is a high school course that teaches you how to do this.

So here are a few tips to help you out:

1) Start by getting a free credit report from all three credit agencies to know what health your student credit is in.
FREE Credit Report and Credit Score

2) If you are starting to build your student credit history, first thing you need to do is get a student credit card, preferably one with a low credit limit ($500 max.). Once you have that, you will use your student credit card to pay for your REGULAR expenses (groceries, gas, movies) and that’s it. It is very important that you use this student credit card for stuff that you would pay for anyway. This allows you to be able to fully pay off your student credit card at the end of each month.
So for example:
- Say you usually spend a $100 bucks a month on gas.
- Put that $100 on the side
- You use your student credit card to pay for gas.
- You pay back your student credit card in full with the money you put aside
It’s that simple! This will help you build the student credit history of a serious consumer who always pays back his debts.

3) Never use your first student credit card to pay for EXTRAORDINARY expenses. If you can’t afford it by yourself, then don’t buy it. This might sound harsh but it will pay off later on when you move into your dream house with a low monthly mortgage because you have a good credit score.

4) Once you have done this for about 9 months, apply for a department store credit card like a Best Buy card. And do the same thing as you did for your student credit card. This will help improve you student credit score even more.

5) Always try to pay your students credit card in full. Nothing beats a zero balance on your credit report to improve your credit history. If you are in bind and you can’t pay all your student credit cards off, try at least to pay 80% of the balance so that your credit score does not suffer.

6) Rinse and Repeat. Basically, if you keep this simple formula going on for a few years, by the time you graduate from college you will have a stellar credit score. And you will see your credit card providers increasing your limit on your student credit cards because you are making them sweat for their money.

Here are a few links that I compiled to help you out:

CreditReporting.com

FIND OUT what’s in your CREDIT REPORT TODAY – so it’s 100% ACCURATE TOMORROW. Order a 3-BUREAU REPORT from CreditReporting.com.

Order a 3-BUREAU CREDIT REPORT from CreditReporting.com for $34.90. SEE what’s in your report TODAY to insure 100% accuracy TOMORROW!

Share: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • Digg
  • StumbleUpon
  • del.icio.us
  • Reddit
  • Mixx
  • TwitThis
  • Technorati
  • Facebook
  • Google
  • e-mail