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College Students And Credit Score

While going to college can be a lot of fun and a very exciting time, it is also a great time to learn about finances. Yes, you can learn about finances in an actual class, but you need to also learn about your own finances and building your credit score. College is the perfect time to start learning about your credit score and finances, hopefully you’re not learning it the hard way though.

Of course if you have never paid for anything like bills or had a credit card, you probably have nothing on your credit history to give you a credit score. So, you will need to start building your own credit. There are several ways you can do this. You can ask your parents if they can add you to one of their credit cards, that way as your parents use and pay off that credit card, your credit score will slowly go up. If your parents have a bad score then this probably isn’t the best option because it will cause you to get a bad score too. You can also look into getting a student credit card through your bank. These cards will have a small spending limit which should make it easy for you to pay it off each month. You can also put bills like your phone bill, rent, water, trash, and student loans under your name. This helps show that you are making monthly payments and are responsible, even if your parents are paying these bills.

Since you may start having your own bills and credit card statements you will pay, you will probably need to get a job. Yes, you probably aren’t going to get a very high paying job, but even if it is enough for some extra spending money than it is helpful and you can probably pay a bill or two. Having a job may not make too big of a difference on your credit history but it will at least let you learn how to plan for your own finances and how to save money. If you already have a job, then you should know how much you can afford each month and can start creating a budget.

Creating a budget is a necessity whether you’re a senior in college or a senior citizen; it is something that everyone should know. There are some college students who still get weekly allowances from their parents, but they still have to budget that money. If you receive financial aid or loans, which will add to your credit history, then you will have to budget how you use the money that you receive, same with scholarships. The only downside is sometimes when you get your budget set up; these things may only end up paying for your books. However, knowing how to create your own budget is always good.

No matter how old you are, knowing about your credit score and how to be financially stable is essential. If you aren’t sure about what to do, you can always talk to a trusted financial advisor to help you through any questions you may have. Your credit report will have the past seven years of your credit history, so remember that even though you are in college, you still need to build your credit up.