Sunday, August 14, 2011

College students can raise their credit scores.

In college, you may not be thinking about your credit score. But this can affect everything from getting a job to buying a house. College students may not have much of a credit record, but many do. And because money is tight, their credit scores may not be great. Here are some tips for not only college students, but others as well to raise your credit score.

The total amount of credit you have can work for you or against you. Your score can be improved if you have a lot of open credit in relation to how much you have used. So, if you have maxed out your credit cards, it can lower your score as you have used all of your credit. The simple way is to get more credit, but don't use it. If you have a $5,000 credit limit reached, you have 100% credit used. If you happen to get another credit card, let's say at $2,500, you now have only used 66% of your credit. If you get even more, your percentage drops, raising your credit score.

Because college students may not be fully into the credit game, this can hurt you. Your history counts. If you graduate college have little history, it will work against you. So, the sooner you get credit and show you know how to manage it, the better. If you get a credit card in your freshman year, you will have four years of credit history when graduating. Length of credit history counts.

But be careful on credit cards. Credit cards are looked upon as bad debt since they are unsecured. This can work against you if you have a bunch. Installment loans can improve your score. These include a personal bank loan, a car loan, or even furniture.

Don't just fill out a bunch of credit applications. Each on may count against you. There are soft and hard inquiries. The hard inquires count against you. Those are new applications you turn in requiring a social security number. Inquiries you make yourself, or businesses you already have credit with do not count. If a business just checks your credit, no loan application, that is probably a soft one as well. Remember, soft inquiries do not show on your report.

Your credit history will make up the bulk of your credit score. Pay on time and you have no problem. The longer you show on time payments, the better. So, don't use a credit card unless you can make the payments.

>>Tips for college students and credit cards.

>>Repaying student loans.

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