Student Credit Cards, Establishing Good Credit

How Can a College Student Establish Good Credit?

Establishing credit is usually easier than you think. First, we are assuming that you're a fresh college student looking for your first credit card. This is a great step to establishing credit But you should learn more about how they can work against you as well as how they can help you establish good credit.

Once you finally find that card you want and they approve you, make sure you don't rack up too much debt too quickly. This will raise a red flag and your credit may suffer. Sometimes students get in over their head and they're not able to make a payment. It's best if you keep a low balance and you will want to make your minimum payments on time each month, there's no exceptions to this. It's even better if you can make the full payment. This will prevent you from having to pay the interest credit card issuers charge. If you miss one payment, it can kill your FICO score!
And may even raise your interest rate.

Know how much you can pay each month before even applying for a card then stick with that amount. Being a responsible and sensible spender will help raise your credit score and your credit limit. Some students start with a pre paid card then switch to the "loan" card after they have worked out a budget to include a credit card payment. Try to never go over your allotted amount.

Don't fret if you get turned down on your first application, even people with established credit face rejection sometimes. Just apply again. There is more than one credit card issuer out there.

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