Tips for Boosting Your Credit Score As a Student

By April 15, 2022 News

A high credit score can benefit many aspects of your life. As well as reducing interest rates and improving the chance you’ll receive credit, it can even help you secure an apartment after university. Since you’ll likely become financially independent for the first time at university, this is the perfect time to work toward a higher credit score.

1. Think About What Financial Aid You Need

Taking out a student loan and paying it back on time every month will improve your credit score. However, you should only take out as much as you actually need. It’s better still if you can start paying off loans while you’re at university, which could be a possibility if you find a part-time job.

2. Apply for a Credit Card

University tends to be a good time to take out your first credit card. The safest option is a secured card, which is connected to a separate account whose balance is the maximum you can charge to the card. After some time of making payments on time (without the credit card company needing to touch the balance in your account), you may be able to progress to an unsecured card.

3. Become an Authorized User of a Credit Card

If you don’t feel ready for your own credit card or your only options are ones with high interest rates, a better option could be to become an authorized user on someone else’s card. A parent or another close family member may be willing to do this. You’ll have your own card, but you won’t be liable for making payments. However, since the named user will be on the hook if you fail to pay, you’ll have an added incentive to be responsible.

As well as teaching you good habits for when you have your own credit card, you can use this method to build a credit score. To do this, the owner of the credit card will need to report the account activity to a credit bureau.

4. Take Out a Credit Builder Loan

If you want to boost your credit score fast, a credit builder loan could go a long way. These loans are aimed at people without a credit history. The loan amount goes into a locked account, giving you access to the funds gradually. You need to make repayments every month for usually between six and 24 months and you’ll receive back the amount you pay minus interest.

5. Request Rent Reporting

There’s one final way to boost your credit score that doesn’t involve borrowing any money: reporting your rent payments. You’ll need to ask your landlord to do this for you — and, of course, you’ll need to make sure you always pay on time.
Another way to boost your credit score is to avoid accumulating debt. You’ll spend less if you search for a more affordable apartment. Foundry First is offering student accommodation at a budget rate. Our student housing has all the amenities you need to be comfortable, including spacious bedrooms, WiFi, and laundry facilities. Schedule a tour now before all the leases are taken.