When college students start heading back to school, it’s the perfect time to start thinking about credit. Every financial decision someone makes, even in high school, can affect credit. That’s why being informed is so important. The more knowledge someone has, the better chance they have of succeeding. Below is a list of five tips that can help all students have a better understanding of credit.
- How to improve credit to have an “excellent” score (750+):
- Pay down credit card balances.
- Pay bills on time.
- Be patient.
- How to maintain a good credit score while in college:
- Establish credit early.
- Be prepared to pay college loans back.
- Start small by having one or two credit cards.
- Be consistent with managing debts.
- How to check your credit report:
- Access your free credit report weekly by visiting AnnualCreditReport.com.
- Set up alerts on your credit history.
- Report your rent payments through the Experian website, which can help you establish credit.
- Once you’ve graduated and have begun your career, opening a Premier Checking will allow you to be able to check your credit score every three months through eClubOnline and set up alerts through IDProtect.
- How student loans affect credit:
- Student loans are deferred while enrolled, which means they do not have much impact. However, you need to begin paying off your student loans starting six months after graduation. This is when they have a substantial impact on your credit.
- There is one loan for each semester on your credit report after you graduate.
- How your credit score can be affected negatively:
- Late payments.
- Continuously applying for more credit.
- High credit card spending. Keep balances as low as possible and pay them in full.
One way to establish credit is by paying bills on time. With a Basic Student Checking account from First Mid, you have access to Online Bill Pay, where you can pay your bills through our Online Banking or Mobile Banking systems — anywhere and anytime. You can open an account online with no minimum deposit and no monthly maintenance fee. Receive a free Visa® debit card. And, you can make mobile deposits whenever it fits your schedule.
