It’s about time to decide which credit card you should get for your college years. With so many variables and considerations, it is no easy task. You may have already found the right card, but are you sure? The vast majority of students in college do not know what they are looking for when they apply – and that can be a significant problem if they ever want to buy a house or car one day. That’s why we’ve put together this list of six hacks that will help you achieve a solid credit score right out of the gates.
1. Researching Cards Before Signing Up For One
Thanks to the internet, it is easy to research a credit card before you even apply for one. You can search through blogs and websites to find out which ones have been favorable amongst other students. It is important because many, if not most, cards come with long-term fees often not mentioned when you initially sign up. If one card has a lower annual cost or comparable rewards, it may be worth looking into.
2. Paying Off Your Balance Every Month
If you pay your balance off every month, you will build a positive payment history which is a great start towards getting approved for future loans. If you don’t pay it off, a credit card company will only report to the credit bureaus that you have a balance on the card.
3. Keeping Your Credit Utilization Low
Lenders are not very forgiving regarding their lending policies – they want to see that people have a clean financial slate. Credit utilization is one way they can see how much money you have borrowed in total, so this percentage should ideally be as low as possible.
4. Using Your Credit Card Wisely
One main reason students get into college debt is that they often spend more than they earn. Therefore, it is essential not to spend money on things for you don’t have a budget. You don’t want to rack up a debt report that will affect your credit for years and years to come, so be sure only to use your card when necessary.
5. Avoiding Annual Fees
Many credit cards charge an annual fee at the end of every year, which can come to as much as $100 a year. Although this may not seem like much, consider how paying even one hundred dollars more each year can add up to an extra night in your favorite restaurant during the holidays or a few more days of shopping. Some cards may have no fee if you pay your statement balance in full monthly. You should know all costs before signing up for a card because those small amounts accumulate over time.
6. Knowing Your Credit Score
Credit scores are calculated using many factors, so what one person will have as a score may differ. The better your credit score, the lower your interest rate will be, and the easier it will be to get a loan when needed.
In conclusion, we hope this list of hacks has helped you find the credit card that works best for your future. Just be sure to check out the various options and make your final decision wisely.