In helping students work towards their goal of a new career, we also work with students to help them build better credit. Building a good credit score takes time and consistent effort, but there are some steps that students can take to improve their credit score quickly:
Start by checking your credit report: Before you start working on your credit score, it’s essential to know where you stand. You can get a free credit report from the major credit bureaus once a year.
Review the report carefully for errors, and if you find any, dispute them immediately.
We suggest you go to https://creditkarma.com and open a free account, and also head over to https://www.annualcreditreport.com/index.action to get your free FICO scores without having to pay any money.
Dispute items on your credit report: It’s important that if there’s something on your credit report that’s negatively affecting you, you can dispute it online and fast! Dispute every negative reporting you see that you have an issue with and it might be removed. Credit bureaus make errors too.
Pay your bills on time: Payment history is the most significant factor in determining your credit score. Make sure you pay all your bills on time, including credit cards, rent, utilities, and other loans. Late payments can significantly damage your credit score.
Keep your credit card balance low: If you have a credit card, make sure you keep your balance low. Your credit utilization ratio, which is the amount of credit you’re using compared to your credit limit, should be under 30%. This can help improve your credit score quickly.
Become an authorized user: If you have a family member or friend with good credit, ask them to add you as an authorized user on their credit card. This can help you build credit quickly, but make sure you use the card responsibly.
Apply for a credit builder loan: Some banks offer credit builder loans specifically designed for people with no or bad credit. These loans can help you build credit quickly, but make sure you make your payments on time.
Use different types of credit: Having a mix of credit, such as a credit card, student loan, and auto loan, can help improve your credit score. However, only take on what you can manage and repay on time.
Remember, building a good credit score takes time and consistency. Stick to good credit habits, and over time, your credit score will improve.