A Credit Crash Course For College Students
Being a student isn’t easy. You don’t need us to tell you that. This is a reality you live every day. It’s the thing which keeps you up at night. In fact; student struggles are probably taking over your life right now.
Sadly, as well as the battle to get better grades, you’re probably dealing with living out of home for the first time. That means coming up with rent and paying bills. Even if you’re lucky enough to live in college accommodation, you need to consider things like food. Your money situation is getting tight just when you need to limit outside distractions.
Sadly, at this stage, the chances are that your credit rating is non-existent. You’ve never needed credit before, after all. In the modern world, though, no credit is often as bad as bad credit. As can be seen from this breakdown of online installment loans, you’re going to struggle to secure a loan of any kind without credit behind you. And, when bills come out of the blue, borrowing money is precisely what you might need to see you through.
That’s why we’re here to talk about the ways that you can build your credit, even when you have no credit to recommend you.
Start paying back your student loan
If you needed a student loan to get you into college in the first place, you’re in a better position than you might expect. As credit goes, long-term loans like these are pretty decent options. Of course, this won’t do you much good until you start paying the thing back. As backward as it may seem to commit to repayments when money is tight, then, it may be worth doing. By agreeing to amounts you can manage, you ensure your credit score looks a lot better when times are tight. That alone could see you getting a loan the second you need one. All the better for keeping your head above the water during these difficult years.
Get a credit card with your bank
Credit cards are where most of us start when it comes to building credit. Even better, applying for one of these with a bank who know and trust you should see you flying through despite your lack of credit. By then using this for things like food emergencies, you can start to get yourself into the green. Just make sure to track everything you spend and pay that amount back in full when your bill rolls around.
Use options like Paypal credit
Along the same logic, you may also find it worth your while to use options like Paypal credit. These have the benefit of taking note of your previous payments, rather than your credit score. If you’ve always been a loyal Paypal customer, then, you should be eligible for this already. This could be the ideal way to buy things for your new home. Just make sure to keep up with those payments to build your credit score in the right way!