Wednesday, October 21, 2009
5 Tips for College Students to Boost Credit Scores
By Leah Gorham
It is important to being keeping an eye on your credit score in college because once you graduate and are on your own, you will need to have a good credit score in order to open new bank accounts, get a new apartment, condo, or house, or buying a new car. Here are 5 tips from CollegeCandy.com to build a good credit score:
1 .Get a Credit Card
You can't build credit without having a credit card. Get a credit card and charge a couple small things on it each month, making sure to pay off the bill in full. Paying your bill in its entirety will show you are responsible and handle money well.
2. Put Your Name on the Bills
Although your parents may be paying many of your bills during college, you won’t have very strong credit references when it’s time to get out on your own if nothing is in your name. Start small by putting bills such as the cell phone bill in your name.
3. Pay What You Can and Pay on Time
Pay more than the minimum payment on credit card bills. Paying only the minimum payment will result in large finance charges and higher balances, causing your credit score to suffer.
4. Keep Old Accounts Open
Do not constantly open credit cards and then close them or build up large amounts of debt and transfer your funds to a new card, and close the first account. This type of activity will show that you are a sporadic and unorganized spender. Instead, find one or two really good credit card deals that you can use for years and stick with them.
5. Keep an Eye on Your Credit Score
Regularly check and monitor your credit score so that if it starts to slip you’ll be aware and can re-anaylze your spending and try to get those numbers back into good standing. You’ll also be able to monitor your activity and prevent fraud, identity theft, or unwarranted charges. Use a service such as FreeCreditReport.com or speak to a financial expert to find out your current situation.
For more information on these 5 tips click here.