|
Articles » Fico Score | | How to Establish a Good Credit Score and Credit History in College |
|---|
Building a solid credit history is of critical value to your future. A good credit history is a must to boost your credit and to achieve a good credit score . Things you want and need will become easier for you to obtain when you build your credit foundation by taking the necessary steps now.
When you’re in college, a sound credit history can help you get a car, utilities, or even an apartment. When you graduate, your good credit history and score will come in handy as you obtain a new home and your first jobs after school.
This means you will be able to get credit as you need it. You will only be in college for a limited time. There are a few dos and don'ts you can follow to establish a healthy credit history:
1) Most checking accounts have overdraft protection. If yours doesn’t make sure you set it up so it does. Overdraft protection is extended to the account holder in the form of credit. This means that writing checks over your account’s available balance will be charged against your overdraft line, and as long as you make your overdraft payment on time, you are actually improving your credit. While setting up your overdraft protection, make sure there are fees associated with the service, as long as you make prompt payments to offset the negative balance.
2) Another option is setting up your utilities under your own name. Utilities are offered on credit, and your credit history will quickly develop if you make all your utility payments on time and in full. As you develop your credit history, you will be able to reap benefits such as not having to pay a deposit when setting up your utilities in the future. However, be cautious about splitting the costs with your roommate, since as long as the utility is under your name, you are ultimately responsible for paying the entire bill.
3) Responsible use of you credit cards is one of the main factors to keep in mind. Using your credit card is the most efficient way of making your purchases. Not only all the purchases become traceable and easy to manage, but you will make one monthly payment from your account to cover all charges, and you reserve the right to dispute a payment if you are not satisfied with the service or product you’ve purchased. This offers you the convenience and ease of mind you need while you’re at school, while at the same time gain a credit score you’ll need when you graduate.
The abovementioned easy-to-follow actions can help you build a solid credit during college years which will help you immensely in future.
Comments
Tony March 7, 2009 11:29:20 AM 11:29 AM This article helps to understand what is a good credit score and how we can manage our credit by using credit cards properly. Using credit cards in a correct manner and paying the bills accordingly is very important.
Willy March 12, 2009 10:05:16 PM 10:05 PM Keeping a good credit history begins from college days. I know this is annoying for so many students because we want to enjoy those days without any responsibilities. But for a good future it is very necessary. Paying all credit card bills on time and repaying the loan on time is what we can do for a good report.
|
|
|
|
