What are some good ways to establish credit?

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I just got into college and took out a few student loans. Nothing beyond $ 5000 and I don’t have to start paying until after I graduate. I know a credit card is a good way and I’m well aware and prepared for the worst case scenario. But I don’t know really where to apply for a credit card? And what are some other ways to make my credit score improve?

  1. Reply
    November 10, 2011 at 8:12 am

    Check with banks in your local area in order to find out if they offer a secure credit card. A secure credit card will allow you to establish a revolving line of credit, but also provide a safety net to you and the card issuer (bank). Typically, you will have to deposit 1.5 times the amount of the desired credit limit in to a savings account and a hold will be placed on these funds as collateral for the credit card (e.g. – $ 500 credit limit = $ 750 savings deposit). Furthermore, after a year or so of good account history (paying your bill on time and not exceeding your credit limit) the bank will usually offer you an unsecured credit card. The time spent utilizing the secured credit card will allow you to develop good spending, budgeting and payment habits. Be sure to inquire if there are any annual fees. Good luck to you!

  2. Reply
    November 10, 2011 at 9:06 am

    Apply credit card from the nearest bank. Then keep trying to keep a good record payment from your credit card. It may take a year or more to make a good score.

  3. Reply
    November 10, 2011 at 9:11 am

    Applying for credit cards is not a way to make your credit score improve. Applying for credit cards makes your credit score get worse. If you are approved for the credit card, then it might eventually make your score improve, but not right away. However, your score will get worse right away, whether or not you are approved, because you applied.

    Even though you do not have to start paying the student loans now, there is no real reason that you cannot start paying now.

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