Archive for September 14th, 2017

10 Ways Students Can Build Good Credit To Borrow

September 14th, 2017

BY EMMA BONNEY

 

Building a good credit score is important as it will determine a large part of your future. Therefore, it is best to start early. Even if you are a student you can start building your credit score and here is how.

Become an authorized user on your parents’ credit card

Before you take on the responsibility of your own credit card, you can start learning the ropes by becoming an authorized user on your parents’ card.

Get your own credit card

Once you are more responsible and stable, it is time to get yourself a credit card of your own. But you have to realize that this is an adult responsibility which you cannot mess up.

Choose your card wisely

Once you decide to go for a credit card, you will be flooded with different option to choose from. So, do your research well, compare and pick the right credit card for yourself.

Pay credit card balance every month

Do not pay the minimum amount that you absolutely have to pay but instead clear off the whole amount every month so that you do not carry a balance on the card. This will ensure that you do not have to pay additional late fines as records of those are detrimental to the development of a good credit score.

Pay your bills on time

Your other unpaid dues can also affect your credit scores as every single record is linked. Make sure you pay off your bills in time and not fall into a defaulters’ list. This is something you should avoid at all costs as it will hamper your credit scores.

Keep your information updated

Every time you move and your address changes, it is crucial to update the change immediately so that you still get your credit card bills on time and do not miss out on the payments. Late payments will not only mean that you have to pay your interest, along with the late fines, it also puts a strain on your credit scores.

Don’t apply for several credit cards

If you are looking forward to building a strong credit maintain one credit card carefully and in an utterly responsible fashion. The more credit cards you get, higher are your chances of messing up, and thus, incurring huge debts and subsequent higher payments which can lower your credit score.

Don’t cosign for your friends

Just like you would need the signature of an adult to obtain your first credit card, your friends and juniors would too. Sometimes they try to get it co-signed by a friend or a senior with a credit card so that they can avoid the whole hassle with parents but never agree to sign this because if your friend is irresponsible and incurs and debt, you will see that automatically bringing down your credit score, since your name is also associated with that person’s account.

Spend responsibly

There are always tons of Coupon codes and discounts offers which will help you spend less. Use them wisely instead of piling up a huge credit card bill. Just because you don’t have to pay now doesn’t mean you don’t have to pay at all.

Be careful with your identity

Be careful and keep your credit card, social security card and other valuable documents safe because an identity theft can completely mar your credit scores which will take forever to recover, if at all.

Your credit card is much more than a piece of plastic which helps you spend money whenever you want so to use it responsibly!

Short Bio: – Emma Bonney is a successful blogger whose articles aim to help readers with self-development, Women’s Empowerment, Education, entrepreneurship and content management.