How to Build Credit as a College Student

Starting college is an exciting time filled with new experiences and opportunities. As you embark on this journey, it’s important to think about your financial future. One crucial step is building your credit. 

Establishing a good credit history while in school can help you get a head start on achieving your goals—whether it’s buying a car, renting an apartment or securing a job post-graduation. There are plenty of tips out there for how to boost your credit. We’re sharing the most important ones here specifically for college students who may just be starting out on their own financially. 

First, let’s start with some background information about credit to see how much you already know.

7 Tips for Building Credit as a College Student

Building credit while in college can set you up for a strong financial future, especially as you start your career. Here are 7 practical steps you can take to establish and maintain credit-building financial habits while still in school.

1. Become an authorized user on a parent’s credit card account.

One of the easiest ways to start building credit is to become an authorized user on a parent or guardian’s credit card account. This means you can use the credit card, and the account’s history will appear on your credit report. It’s a great way to benefit from a well-established credit history without having your own credit card account.

Keep in mind that it works both ways. Being an authorized user can give you a head start in building your credit, but misusing it can also harm your credit score. Make sure you manage your budget and college living expenses, understand the spending limits, don’t overspend and let the primary cardholder know about any charges you make.

2. Get your own secured credit card.

A secured credit card is an excellent tool for college students to start building credit. Unlike traditional credit cards, a secured card requires a security deposit, which usually serves as your credit limit. This makes it easier for those with no credit history to get approved for a new credit card account. 

Additionally, student credit cards can be beneficial because they’re tailored specifically for students and individuals with minimal or no credit history.

Using a secured credit card responsibly can help you build a positive credit history. Make small purchases and always pay your balance in full each month to avoid interest charges. Over time, this responsible behavior can lead to better credit card offers and higher credit limits.

3. Always pay your bills on time.

Payment history is one of the most significant factors in building and maintaining a good credit score. This includes not only credit card bills but also rent, utilities and loan payments, including student loan bills. 

Setting up automatic payments or reminders can help ensure you never miss a due date.

4. Build credit with on-time rent payments.

If you live off-campus and pay rent, you may be able to use your rent payments to build your credit. Some landlords and rental services report rent payments to credit bureaus, which can help boost your credit score if you pay on time each month. Ask your landlord if they do; if not, you can ask them to enroll in a program. 

5. Consider adding a co-signer for larger loans.

Having a co-signer can help you get approved for loans you might not qualify for on your own, such as auto loans. A co-signer with good credit can provide the lender with additional security, increasing your chances of approval and potentially securing better loan terms. 

This is a great opportunity to build credit by demonstrating your ability to make consistent, timely payments against larger borrowed amounts. After you’ve made a certain number of consecutive on-time payments, some lenders will allow the borrower to request to release the co-signer from the loan early.

6. Start making student loan payments early.

Even if your student loans aren’t due until after graduation, making small payments while still in school can be beneficial. Early payments can reduce the overall interest you’ll pay and help you get into the habit of making regular on-time payments, which positively affects your credit score.

Many student loan providers offer payment plans that allow you to start with small amounts. These early payments show lenders you’re responsible and committed to repaying your debts, which can help boost your creditworthiness.

7. Monitor your credit report regularly.

You’re entitled to a free credit report from each of the 3 major credit bureaus annually. Monitoring your credit report helps you ensure all your information is accurate. You can stay on top of your credit status and catch errors or signs of identity theft early. If you notice any discrepancies, you can dispute them promptly, which helps protect your credit score from potential damage.

What You Need to Know About How to Build Credit as a College Student

How long does it take to build credit as a student?

Building a solid credit history can take several months to a few years, depending on how actively you manage your credit. When you’re around age 18, this can seem like a long time! But being patient should pay off. That’s because consistent, responsible use of credit—such as paying bills on time and keeping balances low—will help you build up your credit history and credit score more quickly.

What happens if I miss any payment deadlines?

Missing a payment deadline to a card issuer, lender, landlord or utility company can negatively impact your credit score and stay on your credit report for up to 7 years. Late payments can also result in hefty late fees and higher interest rates, which cost you extra money.

What are some common mistakes that can hurt my credit score?

Common mistakes include missing payment due dates, maxing out credit card limits, applying for too many credit accounts in a short period and not regularly monitoring your credit report for errors. It’s also important to keep your credit utilization ratio below 30%.

Can I build credit without a credit card?

Yes, there are several ways you can build credit without a credit card. For example, make on-time payments and ensure that any bills you pay regularly are reported to credit bureaus. Other options include becoming an authorized user on someone else’s credit card and using credit-building loans.

How can I check my credit history and score?

You can check your credit report for free once a year from each of the 3 major credit bureaus (Experian®, TransUnion® and Equifax®) at AnnualCreditReport.com.