How to Build Credit for Students

FOR COLLEGE STUDENTS: AN EDUCATION ON BUILDING CREDIT 1x 1x Did you know you may already have a credit history? Getting a student loan and other financial responsibilities may have already helped you to create a history. 2X 10x Go to www.annualcreditreport.com to get a free credit report from each of the three credit reporting agencies each year. The three credit bureaus are Experian, Equifax and TransUnion. 2x 1X 2X 1/A Good Reputation Credit card issuers and loan officers do look at these factors, even though they are not part of your credit history. Steady employment Long-term residence Having a steady job can improve your chances of getting It also helps if you've rented an apartment or owned a home, even if was jointly. approved. FRACILE 2 / How to Get Plastic These tips can help you on your way to obtaining a real grown-up credit card or an unsecured credit card. Piggybacking is not just for kiddies anymore If you're under 21, read this first With the new Credit CARD Act, if you're under 21, you must have a co-signer or show proof of your own income. Becoming an authorized user on your parent's card is another way to build credit. Unlike co-signing, it means your parents are solely responsible for the bill. However, this option could back- fire and negatively affect your credit if your parents have bad credit or don't pay their bill on time. Do not overdraw your accounts. Your bank may be A bank can be a good place to obtain your best bet Even though this information is not reported to credit bureaus, a responsibly used checking or savings account demonstrates that you can handle money responsibly. your first credit card. Get a department store credit card While interest rates on these cards can be high, you can build some credit history while usually avoiding interest payments if you pay off the balance each billing cycle. Secured credit is better You can often find one than no credit at your bank. Make sure use of this card is reported to credit bureaus; otherwise, it's not building your credit history. Secured credit cards often require a deposit that equals your line of credit. It can be a good way to eventually get an unsecured credit card. Ask the issuer of the secured credit card if you can eventually upgrade to unsecured credit. 3/ Credit is a Responsibility, Not a Right Regularly check your credit report. You get three free each year, one each from: Experian, Equifax and TransUnion. Credit Cards Pay your bills on time Keep just a few credit cards (maybe 2 or 3 max). Too much open credit, even with zero balances, can negatively affect your credit score. Close unused accounts and cut up Don't apply for cards too often. Applying for new the cards. credit too often can negatively affect your credit. Check with one of the three credit bureaus to make sure these accounts are closed. Use your card for smaller purchases only, unless it's an emergency. Don't co-sign for friends, or let your friends use 4 / Keeping Score your card. Keep your credit score, strong and healthy. This helps keep your interest rates from skyrocketing. Plus, by keeping these categories healthy, you'll likely avoid penalties as well. According to myFICO.com, here are the top five key factors that determine your credit score: Payment history What types of debt accounts do Length of credit history How long have you had this credit card and Types of credit used Amounts owed New credit How much debt do What about any How many accounts do you you owe? How recent accounts or new debt? you have? Do you pay your bills on time? many loans do you have? What have? when did you last percentage of your credit limit do you use? Experts often advise staying within 30 percent of What type of use it? accounts are they? your credit limit. BANK With responsible credit use, you are on your way to building a solid credit history TM CreditDonkey SOURCES: CreditDonkey, FDIC, myFICO.com FOR COLLEGE STUDENTS: AN EDUCATION ON BUILDING CREDIT 1x 1x Did you know you may already have a credit history? Getting a student loan and other financial responsibilities may have already helped you to create a history. 2X 10x Go to www.annualcreditreport.com to get a free credit report from each of the three credit reporting agencies each year. The three credit bureaus are Experian, Equifax and TransUnion. 4X 2х 1х 2х 1/A Good Reputation Credit card issuers and loan officers do look at these factors, even though they are not part of your credit history. Steady employment Long-term residence Having a steady job can improve your chances of getting It also helps if you've rented an apartment or owned a home, even if was jointly. approved. FRACILE 2 / How to Get Plastic These tips can help you on your way to obtaining a real grown-up credit card or an unsecured credit card. Piggybacking is not just for kiddies anymore If you're under 21, read this first With the new Credit CARD Act, if you're under 21, you must have a co-signer or show proof of your own income. Becoming an authorized user on your parent's card is another way to build credit. Unlike co-signing, it means your parents are solely responsible for the bill. However, this option could back- fire and negatively affect your credit if your parents have bad credit or don't pay their bill on time. Do not overdraw your accounts. Your bank may be A bank can be a good place to obtain your best bet Even though this information is not reported to credit bureaus, a responsibly used checking or savings account demonstrates that you can handle money responsibly. your first credit card. Get a department store credit card While interest rates on these cards can be high, you can build some credit history while usually avoiding interest payments if you pay off the balance each billing cycle. Secured credit is better You can often find one than no credit at your bank. Make sure use of this card is reported to credit bureaus; otherwise, it's not building your credit history. Secured credit cards often require a deposit that equals your line of credit. It can be a good way to eventually get an unsecured credit card. Ask the issuer of the secured credit card if you can eventually upgrade to unsecured credit. 3/ Credit is a Responsibility, Not a Right Regularly check your credit report. You get three free each year, one each from: Experian, Equifax and TransUnion. Credit Cards Pay your bills on time Keep just a few credit cards (maybe 2 or 3 max). Too much open credit, even with zero balances, can negatively affect your credit score. Close unused accounts and cut up Don't apply for cards too often. Applying for new the cards. credit too often can negatively affect your credit. Check with one of the three credit bureaus to make sure these accounts are closed. Use your card for smaller purchases only, unless it's an emergency. Don't co-sign for friends, or let your friends use 4 / Keeping Score your card. Keep your credit score, strong and healthy. This helps keep your interest rates from skyrocketing. Plus, by keeping these categories healthy, you'll likely avoid penalties as well. According to myFICO.com, here are the top five key factors that determine your credit score: Payment history What types of debt accounts do Length of credit history How long have you had this credit card and Types of credit used Amounts owed New credit How much debt do What about any How many accounts do you you owe? How recent accounts or new debt? you have? Do you pay your bills on time? many loans do you have? What have? when did you last percentage of your credit limit do you use? Experts often advise staying within 30 percent of What type of use it? accounts are they? your credit limit. BANK With responsible credit use, you are on your way to building a solid credit history TM CreditDonkey SOURCES: CreditDonkey, FDIC, myFICO.com FOR COLLEGE STUDENTS: AN EDUCATION ON BUILDING CREDIT 1x 1x Did you know you may already have a credit history? Getting a student loan and other financial responsibilities may have already helped you to create a history. 2X 10x Go to www.annualcreditreport.com to get a free credit report from each of the three credit reporting agencies each year. The three credit bureaus are Experian, Equifax and TransUnion. 4X 2х 1х 2х 1/A Good Reputation Credit card issuers and loan officers do look at these factors, even though they are not part of your credit history. Steady employment Long-term residence Having a steady job can improve your chances of getting It also helps if you've rented an apartment or owned a home, even if was jointly. approved. FRACILE 2 / How to Get Plastic These tips can help you on your way to obtaining a real grown-up credit card or an unsecured credit card. Piggybacking is not just for kiddies anymore If you're under 21, read this first With the new Credit CARD Act, if you're under 21, you must have a co-signer or show proof of your own income. Becoming an authorized user on your parent's card is another way to build credit. Unlike co-signing, it means your parents are solely responsible for the bill. However, this option could back- fire and negatively affect your credit if your parents have bad credit or don't pay their bill on time. Do not overdraw your accounts. Your bank may be A bank can be a good place to obtain your best bet Even though this information is not reported to credit bureaus, a responsibly used checking or savings account demonstrates that you can handle money responsibly. your first credit card. Get a department store credit card While interest rates on these cards can be high, you can build some credit history while usually avoiding interest payments if you pay off the balance each billing cycle. Secured credit is better You can often find one than no credit at your bank. Make sure use of this card is reported to credit bureaus; otherwise, it's not building your credit history. Secured credit cards often require a deposit that equals your line of credit. It can be a good way to eventually get an unsecured credit card. Ask the issuer of the secured credit card if you can eventually upgrade to unsecured credit. 3/ Credit is a Responsibility, Not a Right Regularly check your credit report. You get three free each year, one each from: Experian, Equifax and TransUnion. Credit Cards Pay your bills on time Keep just a few credit cards (maybe 2 or 3 max). Too much open credit, even with zero balances, can negatively affect your credit score. Close unused accounts and cut up Don't apply for cards too often. Applying for new the cards. credit too often can negatively affect your credit. Check with one of the three credit bureaus to make sure these accounts are closed. Use your card for smaller purchases only, unless it's an emergency. Don't co-sign for friends, or let your friends use 4 / Keeping Score your card. Keep your credit score, strong and healthy. This helps keep your interest rates from skyrocketing. Plus, by keeping these categories healthy, you'll likely avoid penalties as well. According to myFICO.com, here are the top five key factors that determine your credit score: Payment history What types of debt accounts do Length of credit history How long have you had this credit card and Types of credit used Amounts owed New credit How much debt do What about any How many accounts do you you owe? How recent accounts or new debt? you have? Do you pay your bills on time? many loans do you have? What have? when did you last percentage of your credit limit do you use? Experts often advise staying within 30 percent of What type of use it? accounts are they? your credit limit. BANK With responsible credit use, you are on your way to building a solid credit history TM CreditDonkey SOURCES: CreditDonkey, FDIC, myFICO.com FOR COLLEGE STUDENTS: AN EDUCATION ON BUILDING CREDIT 1x 1x Did you know you may already have a credit history? Getting a student loan and other financial responsibilities may have already helped you to create a history. 2X 10x Go to www.annualcreditreport.com to get a free credit report from each of the three credit reporting agencies each year. The three credit bureaus are Experian, Equifax and TransUnion. 4X 2х 1х 2х 1/A Good Reputation Credit card issuers and loan officers do look at these factors, even though they are not part of your credit history. Steady employment Long-term residence Having a steady job can improve your chances of getting It also helps if you've rented an apartment or owned a home, even if was jointly. approved. FRACILE 2 / How to Get Plastic These tips can help you on your way to obtaining a real grown-up credit card or an unsecured credit card. Piggybacking is not just for kiddies anymore If you're under 21, read this first With the new Credit CARD Act, if you're under 21, you must have a co-signer or show proof of your own income. Becoming an authorized user on your parent's card is another way to build credit. Unlike co-signing, it means your parents are solely responsible for the bill. However, this option could back- fire and negatively affect your credit if your parents have bad credit or don't pay their bill on time. Do not overdraw your accounts. Your bank may be A bank can be a good place to obtain your best bet Even though this information is not reported to credit bureaus, a responsibly used checking or savings account demonstrates that you can handle money responsibly. your first credit card. Get a department store credit card While interest rates on these cards can be high, you can build some credit history while usually avoiding interest payments if you pay off the balance each billing cycle. Secured credit is better You can often find one than no credit at your bank. Make sure use of this card is reported to credit bureaus; otherwise, it's not building your credit history. Secured credit cards often require a deposit that equals your line of credit. It can be a good way to eventually get an unsecured credit card. Ask the issuer of the secured credit card if you can eventually upgrade to unsecured credit. 3/ Credit is a Responsibility, Not a Right Regularly check your credit report. You get three free each year, one each from: Experian, Equifax and TransUnion. Credit Cards Pay your bills on time Keep just a few credit cards (maybe 2 or 3 max). Too much open credit, even with zero balances, can negatively affect your credit score. Close unused accounts and cut up Don't apply for cards too often. Applying for new the cards. credit too often can negatively affect your credit. Check with one of the three credit bureaus to make sure these accounts are closed. Use your card for smaller purchases only, unless it's an emergency. Don't co-sign for friends, or let your friends use 4 / Keeping Score your card. Keep your credit score, strong and healthy. This helps keep your interest rates from skyrocketing. Plus, by keeping these categories healthy, you'll likely avoid penalties as well. According to myFICO.com, here are the top five key factors that determine your credit score: Payment history What types of debt accounts do Length of credit history How long have you had this credit card and Types of credit used Amounts owed New credit How much debt do What about any How many accounts do you you owe? How recent accounts or new debt? you have? Do you pay your bills on time? many loans do you have? What have? when did you last percentage of your credit limit do you use? Experts often advise staying within 30 percent of What type of use it? accounts are they? your credit limit. BANK With responsible credit use, you are on your way to building a solid credit history TM CreditDonkey SOURCES: CreditDonkey, FDIC, myFICO.com FOR COLLEGE STUDENTS: AN EDUCATION ON BUILDING CREDIT 1x 1x Did you know you may already have a credit history? Getting a student loan and other financial responsibilities may have already helped you to create a history. 2X 10x Go to www.annualcreditreport.com to get a free credit report from each of the three credit reporting agencies each year. The three credit bureaus are Experian, Equifax and TransUnion. 4X 2х 1х 2х 1/A Good Reputation Credit card issuers and loan officers do look at these factors, even though they are not part of your credit history. Steady employment Long-term residence Having a steady job can improve your chances of getting It also helps if you've rented an apartment or owned a home, even if was jointly. approved. FRACILE 2 / How to Get Plastic These tips can help you on your way to obtaining a real grown-up credit card or an unsecured credit card. Piggybacking is not just for kiddies anymore If you're under 21, read this first With the new Credit CARD Act, if you're under 21, you must have a co-signer or show proof of your own income. Becoming an authorized user on your parent's card is another way to build credit. Unlike co-signing, it means your parents are solely responsible for the bill. However, this option could back- fire and negatively affect your credit if your parents have bad credit or don't pay their bill on time. Do not overdraw your accounts. Your bank may be A bank can be a good place to obtain your best bet Even though this information is not reported to credit bureaus, a responsibly used checking or savings account demonstrates that you can handle money responsibly. your first credit card. Get a department store credit card While interest rates on these cards can be high, you can build some credit history while usually avoiding interest payments if you pay off the balance each billing cycle. Secured credit is better You can often find one than no credit at your bank. Make sure use of this card is reported to credit bureaus; otherwise, it's not building your credit history. Secured credit cards often require a deposit that equals your line of credit. It can be a good way to eventually get an unsecured credit card. Ask the issuer of the secured credit card if you can eventually upgrade to unsecured credit. 3/ Credit is a Responsibility, Not a Right Regularly check your credit report. You get three free each year, one each from: Experian, Equifax and TransUnion. Credit Cards Pay your bills on time Keep just a few credit cards (maybe 2 or 3 max). Too much open credit, even with zero balances, can negatively affect your credit score. Close unused accounts and cut up Don't apply for cards too often. Applying for new the cards. credit too often can negatively affect your credit. Check with one of the three credit bureaus to make sure these accounts are closed. Use your card for smaller purchases only, unless it's an emergency. Don't co-sign for friends, or let your friends use 4 / Keeping Score your card. Keep your credit score, strong and healthy. This helps keep your interest rates from skyrocketing. Plus, by keeping these categories healthy, you'll likely avoid penalties as well. According to myFICO.com, here are the top five key factors that determine your credit score: Payment history What types of debt accounts do Length of credit history How long have you had this credit card and Types of credit used Amounts owed New credit How much debt do What about any How many accounts do you you owe? How recent accounts or new debt? you have? Do you pay your bills on time? many loans do you have? What have? when did you last percentage of your credit limit do you use? Experts often advise staying within 30 percent of What type of use it? accounts are they? your credit limit. BANK With responsible credit use, you are on your way to building a solid credit history TM CreditDonkey SOURCES: CreditDonkey, FDIC, myFICO.com FOR COLLEGE STUDENTS: AN EDUCATION ON BUILDING CREDIT 1x 1x Did you know you may already have a credit history? Getting a student loan and other financial responsibilities may have already helped you to create a history. 2X 10x Go to www.annualcreditreport.com to get a free credit report from each of the three credit reporting agencies each year. The three credit bureaus are Experian, Equifax and TransUnion. 4X 2х 1х 2х 1/A Good Reputation Credit card issuers and loan officers do look at these factors, even though they are not part of your credit history. Steady employment Long-term residence Having a steady job can improve your chances of getting It also helps if you've rented an apartment or owned a home, even if was jointly. approved. FRACILE 2 / How to Get Plastic These tips can help you on your way to obtaining a real grown-up credit card or an unsecured credit card. Piggybacking is not just for kiddies anymore If you're under 21, read this first With the new Credit CARD Act, if you're under 21, you must have a co-signer or show proof of your own income. Becoming an authorized user on your parent's card is another way to build credit. Unlike co-signing, it means your parents are solely responsible for the bill. However, this option could back- fire and negatively affect your credit if your parents have bad credit or don't pay their bill on time. Do not overdraw your accounts. Your bank may be A bank can be a good place to obtain your best bet Even though this information is not reported to credit bureaus, a responsibly used checking or savings account demonstrates that you can handle money responsibly. your first credit card. Get a department store credit card While interest rates on these cards can be high, you can build some credit history while usually avoiding interest payments if you pay off the balance each billing cycle. Secured credit is better You can often find one than no credit at your bank. Make sure use of this card is reported to credit bureaus; otherwise, it's not building your credit history. Secured credit cards often require a deposit that equals your line of credit. It can be a good way to eventually get an unsecured credit card. Ask the issuer of the secured credit card if you can eventually upgrade to unsecured credit. 3/ Credit is a Responsibility, Not a Right Regularly check your credit report. You get three free each year, one each from: Experian, Equifax and TransUnion. Credit Cards Pay your bills on time Keep just a few credit cards (maybe 2 or 3 max). Too much open credit, even with zero balances, can negatively affect your credit score. Close unused accounts and cut up Don't apply for cards too often. Applying for new the cards. credit too often can negatively affect your credit. Check with one of the three credit bureaus to make sure these accounts are closed. Use your card for smaller purchases only, unless it's an emergency. Don't co-sign for friends, or let your friends use 4 / Keeping Score your card. Keep your credit score, strong and healthy. This helps keep your interest rates from skyrocketing. Plus, by keeping these categories healthy, you'll likely avoid penalties as well. According to myFICO.com, here are the top five key factors that determine your credit score: Payment history What types of debt accounts do Length of credit history How long have you had this credit card and Types of credit used Amounts owed New credit How much debt do What about any How many accounts do you you owe? How recent accounts or new debt? you have? Do you pay your bills on time? many loans do you have? What have? when did you last percentage of your credit limit do you use? Experts often advise staying within 30 percent of What type of use it? accounts are they? your credit limit. BANK With responsible credit use, you are on your way to building a solid credit history TM CreditDonkey SOURCES: CreditDonkey, FDIC, myFICO.com