Building your credit score in college is an excellent financial move! Whether you’re a student at Cal Poly Humboldt, College of the Redwoods, Shasta College, or another school, taking a few simple steps now can help set you up for long-term financial success. Check out these credit building tips for students.
Apply for a Secured or Student Credit Card
Using a credit card wisely is one of the fastest ways to build credit in college. If you don’t have much (or any) credit history yet, here are two solid options:
- A secured credit card requires a cash deposit—usually equal to your credit limit—which acts as collateral in case you don’t make your payments.
- A student credit card typically has a lower credit limit and easier approval requirements than a regular card.
Become an Authorized User
If you’re not ready for your own credit card, you can become an authorized user on someone else’s card—such as a trusted family member or friend. You’ll be added to their account and may get a card with your name on it, but you won’t be legally responsible for payments. Check whether the card issuer reports authorized users to all three major bureaus, since not all do.
If the primary cardholder uses their account responsibly, it can help build your credit, too. However, if they miss payments or carry a high balance, your score could be negatively affected.
Pay All Your Bills on Time
On-time payments are important for your credit score. Even one missed or late payment can hurt. Set up auto-pay or reminders to make sure you never miss a due date—whether it’s a credit card, student loan, rent, or utility bill.
If your budget is tight, consider using your card only for small, essential expenses—like gas or a subscription—that you can pay off in full each month.
Use Only a Small Portion of Your Available Credit
Ideally, you should pay off your full balance each month to avoid interest. But if you carry a balance, try to use less than 30% of your credit limit. For example, with a $1,000 limit, stay under $300.
This is called your credit utilization ratio, and it plays a big role in your score. The lower your usage, the better—because it shows lenders you’re in control of your finances.
Apply for Credit Only When You Really Need It
Every time you apply for a credit card or loan, a hard inquiry appears on your credit report. One or two are fine, but too many in a short time can lower your score.
Apply only for credit you actually need. Skip the store cards, which often have high interest rates and low limits. One or two well-managed credit cards are all you need to start building solid credit in college.
Check Your Credit Report Regularly
Keeping an eye on your credit report is a smart habit to start while you’re in college. You can request a free report once a year from each of the three major credit bureaus—Equifax, Experian, and TransUnion—by visiting AnnualCreditReport.com.
Review your report for errors, such as incorrect account information or payments wrongly marked late. Also, watch for signs of identity theft. If you spot a problem, file a dispute with the credit bureau right away.
Join Coast Central Credit Union
At Coast Central, we make it easy for college students to build credit and make smart money moves.
- Check out our First Visa. For those with little or no credit history and six months of employment history, this card has a maximum limit of $1,000 and is ideal for college students.
- Our Practical Money Skills education resources offer a variety of courses to give you the information and skills you need, including Going to College and Credit Basics.
When you join Coast Central, you’re more than just a member—you’re part of a community that’s committed to your financial success—now and after graduation. Contact us today!
Coast Central—Where YOU are central.