Still in school? Need to build your credit? No problem. There are steps that even a student can take to build their credit while still in school.

Check your report. Just because you think you don’t have credit, check it anyway. Get into the habit now of checking your report on a regular basis. This will also help you correct mistakes, if any.

Understand what it means. What exactly is credit? What is considered good credit? Why do people look at your credit? These are all very important to understand when starting to build your credit. Having a good understanding of the basic idea of credit will go a long ways in your quest for good credit.

Get out and work. If you think you have too many assignments and tests to get a part-time job, you’re wrong! Building a work history is an important thing that helps you build credit. I know it’s hard to work full-time while still in school. For some this is not even an option; for others, it is essential. Many employers are willing to work with school schedules. Take advantage of this easy way to build you credit and make some extra money too!

Get a checking/savings account. You can easily get a free checking and savings account now. These accounts show stability and responsibility. You’d be surprised how much they affect your credit.

Put bills in your name. No matter where you live, you’ll need electricity, gas and water, right? Put these bills in your name. These utility companies are actually creditors that report to the credit bureaus. Make sure you constantly pay your bills on time. This is an easy way to boost that credit score.

Co-Sign on an auto loan. This step may take a little extra finagling. Talk to your parents and see if they are willing to co-sign on an auto loan with you. Make sure whoever you co-sign with is responsible and trust-worthy. The last thing you’d want is to get into a car loan with someone who either won’t make the payments, or who will ruin your new credit!

Get a joint account. This idea is along the same lines as the car loan. Ask your co-signer if you could be added as a joint owner on one of their accounts. Although their name may the primary, the account will help to establish your credit as well.

Sign up for a student credit card. OK, be careful with this one. A student credit card is not meant for shopping sprees before you even finish school. Purchases on this should be kept at a minimum or only an amount that you can quickly pay off. The idea here is to pay the balance off each month. This is an easy way to establish your credit.

Do it now. You are considered less of a risk now while you are still in school than once you graduate. Lenders suspect that if you get yourself into credit trouble now, your parents will come to your rescue. Take advantage of their thinking now before you graduate and are considered officially “on your own.”

Mix it up. To get the best credit score, you need a mixture of credit types. These types are considered either revolving or installment. The revolving accounts include credit cards and lines of credit. Installment accounts are mortgages, auto loans, personal loans, etc. Make sure not to go overboard. Start out with only one of each. As your credit increases, slowly add each type of account.

These are basic steps that you can use while still in school. Make sure to do your credit score homework and you will be well on your way to building good credit.

This entry was posted on Monday, August 11th, 2008 at 9:51 am and is filed under Build Credit. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.