Ways to Build Your Credit Score While in School

Ways to Build Your Credit Score While in School

You’ve got several options to build your credit score while in college. Using your credit wisely early on can help you receive more favorable terms later in life when you need them.

1. Become an Authorized User

By becoming an authorized user on someone else’s credit card—be it a parent, guardian, or other trusted adult—the credit card issuer will send a credit card to the primary cardholder having your name appear on the card.

2. Secured Credit Cards

Secured credit cards work by having the cardholder front a security deposit to open an account, reducing the risk to card issuers of you defaulting or missing a payment.

3. Credit Builder Loans

Typically offered by credit unions or other smaller financial institutions like a community bank, these loan payments will get reported to the credit bureaus, helping you build your credit.

4. Apply for Low Limit Unsecured Credit Cards

These types of cards can help with beginning to build a credit history. Further, if your children will have student loans, these will factor into their credit history and build a credit profile for lenders to evaluate future credit needs.

5. Apply for a Credit Card with a Co-signer

Having a co-signer credit card works similar to carrying a joint brokerage account or bank account—you both have access to the funds. 

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