How to Increase Your Credit Score as a Student (2024)

Home Student Info Student Finance How to Increase Your Credit Score as a Student

By Chloe Lane

Updated March 17, 2021Updated March 17, 2021

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How to Increase Your Credit Score as a Student (8)

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Take a look at these top tips to help manage your money during COVID-19

Credit scores are (annoyingly) not often something you’re taught in school or university (unless you study accounting and finance, of course) but they’re vitally important and can have a huge impact on your future.

Having a good credit score is important if you ever want to apply for a mortgage, a credit card, or a loan. It might also affect your car insurance, bank account and mobile phone bill.

So, basically, it’s pretty important.

If you’re unsure how to improve your credit score (or what a credit score even is) you’re definitely not alone.

In this article, we’ll be explaining the ins and outs of credit scores: what they are, how to check them and what should you be doing to boost yours.

So, what exactly is a credit rating?

Imagine you want to take out a credit card. To apply, you go online to your bank’s website and fill out a few details about yourself and your finances.

Your bank will then check your credit report: a record of your reliability in the past of managing and repaying debt, including loans, credit cards and bills. Your credit report is a detailed record of your credit history, and includes detailed personal information, information about credit accounts and public records.

This report will be used to calculate your overall credit score, along with any additional information you supply. It will show potential lenders how reliable you are with repayments.

The higher the credit score, the lower risk you are to a potential lender, so banks are more likely to offer you loans.

In other words, if you have a low credit score, you won’t get that credit card, because a low credit score = a high financial risk.

Why should I care?

How to Increase Your Credit Score as a Student (10)

Here are some of the things a poor credit score can impact:

  • Renting a house/flat: The landlord may run a credit check on you to make sure you can afford to pay the rent. If you have a low credit score, they may assume you’re a high-risk individual and will be put off renting a property to you.
  • Getting a job: Employers may run a credit check before employing you to ensure that you are fit to take on the role.
  • Rejection of loans: A poor credit rating might make it harder to get mortgages, personal loans, car loans, credit cards and even some federal student loans.
  • Mobile phone contracts: Many providers run credit checks before taking on a new phone customer to ensure that you’ll be able to pay on time.
  • Your insurance premiums: A poor credit rating might mean that insurance customers will charge you a higher premium as you will be perceived as higher risk.

When you apply for any of these, the potential lender will usually check your credit score, and if you have a low credit score, you most likely won’t be offered the loan.

Okay, but how can I check my credit score?

Checking your credit core is relatively easy. You can use credit reference agencies such as Experian, TransUnion and Equifax, which will all have a record of your credit rating.

Checking your score will help you know where you stand when applying for credit. As you improve your score, you will have access to better financial deals, such as lower insurance premiums.

How can I improve my credit score as a student?

How to Increase Your Credit Score as a Student (11)

There are plenty of ways to easily boost your credit score. Your future self with thank you for it.

What to do

  1. Make sure you’re on the electoral register: This will easily allow lenders to verify who you are, which will boost your chances of being accepted for credit.
  2. Use your credit card cautiously and often: Using your credit card often and repaying it on time and in full will show lenders that you’re reliable and can be trusted with money.
  3. Get a phone contract: Again, this will show lenders that you can reliably pay on time.
  4. Pay your bills on time: If you can pay your other bills on time, lenders are more likely to trust you to pay back a loan, as you look financially stable and responsible.

What not to do

  1. Keep applying for credit cards after a rejection: If you’ve been turned down for a credit card, the worst thing you can do is keep applying. It’ll look to lenders like you’re desperate for quick cash and might further worsen your credit rating.
  2. Have multiple overdrafts: Multiple overdrafts are a massive red flag for lenders as It suggests that you can’t manage your spending responsibly.
  3. Have loads of unused credit accounts open: If you have too much credit available, lenders think you won’t be able to cope with any more.
  4. Use up all your available credit: Alternatively, try not to use up too much of the credit available to you, as this may also prevent your score from increasing.

In case you were wondering, your government student loan will not affect your credit score. It won’t even appear on your credit report – so don’t worry.

Take a look at these top tips to help manage your money during COVID-19

This article was originally published in July 2020.It was last updated in March 2021

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Written by

Chloe Lane

AsContent Editor for TopUniversities.com and TopMBA.com, Chloe createsand publishesa wide range of articles for universities and business schools across the world.Chloe has a Bachelor’s degree in Economics from the University of Reading and grew up in Leicestershire, UK.

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How to Increase Your Credit Score as a Student (2024)

FAQs

How to Increase Your Credit Score as a Student? ›

Consider authorized users on your credit card

Adding your teen as an authorized user on your own credit card may be a way for them to learn how credit works and how to use it responsibly. In addition, this could help them build their credit history.

How to build credit score as a student? ›

Here are some options to consider.
  1. Get a Secured Card or Student Credit Card. Student credit cards are designed specifically for college students. ...
  2. Become an Authorized User. ...
  3. Open a Credit-Builder Loan. ...
  4. Get Credit for Rent Payments. ...
  5. Practice Good Credit Habits. ...
  6. Check Your Credit Report. ...
  7. Monitor Your Accounts.
Jan 26, 2024

How can I raise my credit score quickly? ›

15 steps to improve your credit scores
  1. Dispute items on your credit report. ...
  2. Make all payments on time. ...
  3. Avoid unnecessary credit inquiries. ...
  4. Apply for a new credit card. ...
  5. Increase your credit card limit. ...
  6. Pay down your credit card balances. ...
  7. Consolidate credit card debt with a term loan. ...
  8. Become an authorized user.
Jan 18, 2024

How can I improve my credit score for dummies? ›

  1. Pay credit card balances strategically.
  2. Ask for higher credit limits.
  3. Become an authorized user.
  4. Pay bills on time.
  5. Dispute credit report errors.
  6. Deal with collections accounts.
  7. Use a secured credit card.
  8. Get credit for rent and utility payments.
Mar 26, 2024

How can you improve your credit score group of answer choices? ›

But here are some things to consider that can help almost anyone boost their credit score:
  • Review your credit reports. ...
  • Pay on time. ...
  • Keep your credit utilization rate low. ...
  • Limit applying for new accounts. ...
  • Keep old accounts open.

How can a 13 year old build credit? ›

Consider authorized users on your credit card

Adding your teen as an authorized user on your own credit card may be a way for them to learn how credit works and how to use it responsibly. In addition, this could help them build their credit history.

Can I get credit as a student? ›

Yes, you may be able to get a student credit card, even if you have no credit history. However, you'll likely only be eligible for the product offered by the bank you hold your current account with, and you'll usually be offered a very low credit limit until you have demonstrated that you're able to manage credit well.

Is 720 a good credit score? ›

A 720 credit score on the common credit scoring range of 300-850 is right at the border of “good” and “excellent.” In fact, when your score hits 720, you've just crossed over into the excellent score band. That's great news, unless your score was higher and you're worried about what a loss of points might mean.

How can I manually increase my credit score? ›

5 ways to improve your credit score
  1. Your payment history plays a large role in determining your credit score.
  2. Try to keep your balances below 30 percent of your total available credit.
  3. Keeping older credit cards open can improve your credit health.
  4. Check your credit report at least once a year.

How to boost credit 100 points? ›

Here are 10 ways to increase your credit score by 100 points - most often this can be done within 45 days.
  1. Check your credit report. ...
  2. Pay your bills on time. ...
  3. Pay off any collections. ...
  4. Get caught up on past-due bills. ...
  5. Keep balances low on your credit cards. ...
  6. Pay off debt rather than continually transferring it.

How to fix your credit yourself? ›

Here are 11 steps you can take on your own to steer your credit in the right direction.
  1. Check Your Credit Report. ...
  2. Dispute Credit Report Errors. ...
  3. Bring Past-Due Accounts Current. ...
  4. Set Up Autopay. ...
  5. Maintain a Low Credit Utilization Rate. ...
  6. Pay Off Debt. ...
  7. Avoid Applying for New Credit. ...
  8. Keep Unused Credit Accounts Open.
Apr 22, 2023

How do beginners build credit? ›

How to build credit for beginners
  1. Apply for a secured credit card.
  2. Become an authorized user on a credit card whose owner has a good credit score.
  3. Get a store credit card with a small limit.
  4. Find someone who will be a co-signer with you on a regular credit card.

How to build credit at 18? ›

How to Start Building Credit at 18
  1. Open a student credit card. One of the more popular options for establishing credit is opening a student credit card, which is unsecured. ...
  2. Get a secured card. ...
  3. Take out a loan. ...
  4. Try a credit-builder loan. ...
  5. Automate your payments.
Apr 18, 2024

How to improve credit fast? ›

While rebuilding credit may take longer than starting from scratch, you can improve your credit score relatively quickly by implementing responsible credit management practices. Pay your bills on time, keep credit card balances low and address negative items on your credit report right away.

How fast does credit score go up? ›

How soon can you see improvement? The length of time it will take to improve your credit scores depends on your unique financial situation. At the earliest, you may see a change between 30 and 45 days after you have taken steps to positively impact your credit reports.

How to raise credit limit? ›

If you're looking for ways to improve your chances of getting an increased credit limit, focus on the following things:
  1. Maintain a good credit score. ...
  2. Reduce your outstanding debt. ...
  3. Include all sources of income. ...
  4. Avoid the need to open a second card. ...
  5. Earn more rewards. ...
  6. Low credit utilization.

How long does it take for a student to build credit? ›

Establishing credit from scratch takes at least six months, but using that time wisely can help you build a strong foundation for your credit future.

Why is my credit score low as a student? ›

Being a student is not a mitigating circumstance. Missing payments and avoiding contact with your lender could result in your debt being handed over to a debt collection agency, and you may negatively affect your credit score. Your age and the fact you're a student will not mean you're treated differently.

What should my credit score be as a student? ›

What's a good credit score for college students? A good credit score for college students — and for anyone — would be anything 670 or over. Anything over 739 is considered 'very good,' and 800 or higher is considered 'excellent. ' However, students with scores lower than 670 shouldn't feel discouraged.

How to build credit at 18 with no credit? ›

How to start building credit at age 18
  1. Understand the basics of credit. ...
  2. Become an authorized user on a parent's credit card. ...
  3. Get a starter credit card. ...
  4. Build credit by making payments on time. ...
  5. Keep your credit utilization ratio low. ...
  6. Take out a student loan. ...
  7. Keep tabs on your credit report and score.

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