
How To Build Credit Fast
If youâre looking for ways to build credit, feast your eyes on this đ
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Trade in your sunday scaries for good credit energy đ
So building credit probably isnât your biggest priority in college. And who are we kidding⌠studying isnât eitherâbut you gotta do it.
Think about future you for a second.
Is future you living in your own apartment or house? Driving your own car? Taking out a loan to make your side hustle your main hustle?
Future you sounds lit. đ¸
Now what do all of those things have in common? They all require good credit, and to get good credit, you gotta build it.
We promise it's not as hard as you think. Itâs definitely easier than your intro to stats class.
And since youâd be starting early, you would have a longer credit history for your future, something credit bureaus take into account when generating your credit score.
So start building credit now instead of waiting until after graduation.
Youâll have a 4 year jump on everybody else and future you will be thanking you big time.
Credit is the ability to borrow money (with the expectation youâll pay it back) and actually pay it back.
Over time, you use credit and you build a credit history, like a search history, but for your ability to make payments on time (if you make your payments on time!)
And in the U.S., your credit history gets shared with the big bad 3, also known as the credit bureaus: Experian, Equifax, and TransUnion.
They use your history to create a credit report, and then they score it like a test đĽ´
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Itâs a rating between 300 and 850 and it determines how good you are with money.
Banks, money lenders, landlords, etc. use your score to see if youâll be able to make your payments on time⌠or make them at all.
Think of it kind of like an SAT scoreâbiased, doesnât account for individual circumstances, and has the potential to determine your futureâexcept no one talks about it.
Here are some simple ways you can build credit as a student:
Family members are a great option.
This means you could use a credit card thatâs linked to their account, or you could just be associated with the account and never use the card.
The payment history would show up on both you and the account holder's credit report. So itâs really important to ask someone you trust, because as great as it can be for building credit, it can bring it down tooâŚfor both of you.
âTechnically,â you arenât responsible for the charges on the card, the account holderâAKA mom and dadâis responsible. But theyâre definitely going ask you for the $10 you spent on White Claws last weekend.
Check out Money Crashers article on What to Know About Being an Authorized User on Someone's Credit Card for more helpful tips.
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Rent is a big expense as a student, and it doesnât normally get reported to the big bad 3 credit bureauâwhich can be a good or bad thing depending on who you ask.
If you are on top of your rent, ask your landlord if they report the payments to the credit bureaus through a rent reporting service. (They may already do this. But they probably donât.)
If they donât, ask them if they would be open to reporting your payments. (Just make sure the service reports to all 3 credit bureaus.)
For some reason, the credit bureaus donât talk to each other.
Kind of like you and your ex đ
âIf you qualify for a regular cardâŚ
Just make sure you find one with a low-interest rate, no annual fees, and a reasonable credit limit. (Weâre trying to build credit not lose it.)
If you donât qualify for a regular card, a secured credit card could be a great option to help you build credit. They also help you work on your good credit energy. ⨠(Something weâre not all born with.)
A secured credit card works by using a security deposit, which becomes your credit limit.
So if your deposit is $100, you now have a $100 limit to pay your phone bill or your 2 am McDonaldâs order. We donât judgeâŚ
Unless you want us to of course đ
Over time, your payment history would get reported to the credit bureaus, which could help raise your credit score.
As tempting as it is to sign up for all the credit cards and get those sign-up bonuses, donât.
Each time you sign up for a new card, the credit card company will pull your credit score, and that will affect it. Pulling 1 credit score is only a 5-10 points deduction, but pulling more than that and you're losing some serious points.
âInstead of using your credit card to make obnoxious purchases you wonât be able to pay off, use it for the small things.
Use it for those 4 am coffee you buy near the library during exams. Or for the phone bill that you're already paying for.
Donât buy a PS5 or an Airwrap. đ
If you keep your credit balance lower than your limit, the credit bureaus will see how good you are with credit, and boost your score because of it.
A good rule to swear by is if you canât buy it on your debit, DONâT BUY IT WITH CREDIT.
Using your card on the small stuff will make your monthly payments manageable. So you can actually pay your card off every month and get the credit score to show for it. đ
âEvery year, you can pull your credit report from the credit bureaus.
Itâs free. It wonât affect your credit score. And it's an opportunity for you to review the report and make sure there are no mistakes.
If there is something you donât think feels right, you can dispute the mistake with the, and try to get it taken off your report.
âThis sh*t takes time. It wonât be overnight⌠or next month.
But hopefully after 6 months, a year, 2 years, youâll see some positive results. Thatâs why itâs so important for you to get started now, while your loan needs are low. đ
Plus who knows what your credit needs will be after graduation.
Yep. Talking $9.99 a month. It's never to early to start building your credit history. Cleo Builder's here to help with that. Learn more about our student offer here.
(Just a quick heads up though, it's valid only if you haven't used Cleo Builder in the past.)
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âBig love. Cleo
If youâre looking for ways to build credit, feast your eyes on this đ
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A quick guide on the most effective methods to boost your credit score âŹď¸