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Credit History for College Students

The average credit score for a youngster in the age bracket 18 to 24 is 630. Evidently, any score below 650 is considered bad. It is highly recommended for college students to start building their credit history in their college days itself so that by the time they graduate, a decent score above 700 can be achievable. As soon as they land up in jobs, they would need to rent an apartment or purchase a car. Credit scores are scrutinized by insurance companies, landlords, potential employers, and utility companies.

Possession of credit card is a sign of building up of credit score even before it is required. Certain cards do not charge annual fees or foreign transaction fees, best suited for college goers. They even provide rewards that can be astutely accumulated and used. However, the expense of high-interest rates makes it difficult to miss any single payment. Controlled spending and self-discipline is the mantra for them.

Certain websites provide good information about the credit cards specifically customized for students. There are some premeditated ways to use the credit cards. Every month since the purchase must record some activity on the card. Credit utilization must be kept below 10% that can be stretched to a maximum of 30%. Monthly payment has to be made on time compulsorily. Consistency must be maintained throughout the college years. In this age, one must avoid co-signing someone else’s credit card. Try to pay monthly bills using your card in order to boost scores. Multiple cards are highly discouraged. Closing old credit cards can be counterintuitive as it negatively affects credit.

Debt accrual has to be avoided at all costs. CNN Money in 2013 reported that an average college graduate had $3000 debt on the credit card. This can be disappointing. One must never forget to keep a constant check on the credit reports as any error or misrepresentations must be cross-checked and corrected immediately. Finally, the best advice is to avoid any hard inquiries that can come heavily on scores. By protecting one’s identity and arranging credentials properly, one can be assured of a safe credit future.

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