When you start college, you have to deal with many changes in your life. And, you get introduced to a lot of things that you didn’t know about earlier. You also have to complete various tasks. And, credit building should be one of them. You might think that it is not as important as other ones, but it is. You need a good credit score to open a credit card, rent an apartment or for making significant purchases like a car or a home. Although you might think that you have to do these things in the future, and don’t need to worry about it now. But, let us tell you that you won’t have time to build a credit score later and college is the best time to do it. And, we are going to suggest you some practical ways of doing that in this write-up. Have a look:
Become an Authorized User
This is one of the simplest ways to build proper credit. You can ask your parents, and become an authorized user on their credit card. When you do that, your parents' credit history will be reported as your own. This tactic is useful as you can build a credit history without applying for credit yourself. This is the best option because you don’t have to run here and there, as everything you need is present at your home.
Consider Taking Federal Student Loans
This can also be an option to build a credit history during college. You should consider taking student loan based on your requirement. But, you can’t apply for private loans with no credit history. So, you should look for a federal student loan. They don’t need an established credit history. And, you can borrow money for school, and, if you pay it back on time, then you will make a good credit history. So, get a federal student loan and use it as a medium to get yourself some credits.
Get Yourself a Co-signer
If you are under 21, you can’t get a credit card until you have an independent source of income or you have a co-signer. This rule was applied by the 2009 Credit CARD Act. Due to this act, companies cannot market credit cards on colleges campuses. So, you should get yourself a co-signer that could be anyone like your guardian or your parents. When you have a co-signer, you can get the credit card and a chance to build a positive credit history.
Get a Secured Credit Card
You might find it difficult to get the approval for an unsecured credit card. So, you should try to open a secured one. This is also an excellent way to build a credit history without much risk. For a secured card, you have to submit an initial deposit for the access to a line of credit on the card which will be equal to the deposit. A secured card can help you prove your responsibility to the lenders and in the process help you achieve a good credit score.
Get a Credit-builder Loan
If you think that you might overspend with a credit card, then you should consider a credit-builder loan. It is a great way to gain credit without the risk of overspending. What happens in a credit-builder loan is that once you get the approval for it, the loan is deposited into your account, but until you pay back the loan, you won’t be able to access the account. This is a great option for getting credit without much risk. In this type of loan, you don’t have to deposit an amount upfront, but you have to have regular deposits to make a credit history.
As a student, you need to build a positive credit history, and you can easily do that in your college. These tips provided by our writers who offer Economics Dissertation Help to students can be very beneficial in doing that. So, follow these tips, to get that credit quickly.