How students can build their credit

Credit Building Tips for Students

While college years are usually the years when students are tight on money unless they belong to wealthy affluent families.  But college years are also the perfect time for students to start building their credit. If you are just starting out you might find it hard to get a loan or a credit credit. That’s because having no credit history makes it difficult for lenders to know if you’re a good risk to repay a loan and make your payments on time.

Establishing a good credit history is not as difficult as it seems, especially when you are a student.  Most of the credit card companies have credit cards for students. In all cases, however, you’ll need to make payments on time. Some tips include:

  • Apply for a credit card online. Discover® Student Card is a great student credit card for students to start building their credit. It is very easier to get and has no annual fee with great perks for students. As soon as students graduate and find a job, they can apply for a much higher credit limit on the same card.
  • Apply for a secured credit card. By borrowing against your own money, creditors find this to be far less risky.  You can get a secured credit card from your local bank.
  • Ask your parents with a good credit history to co-sign on  a credit card application. By co-signing, the person is agreeing to pay back the loan if you don’t.   If you have been a great kid, then our parents will not have a trouble co-signing. Please do not get upset, if they refuse to co-sign.