What contributes to your credit score? What are things that I can do while I'm in college to help mine?

Question

I know that paying your credit card bills on time helps your credit score. Do other bills do that, like my apartment rent? I'm a full-time student, so I can't work right now, but I'd like to do what I can to start building good credit. Does anyone have some tips?
Also, is this true: I've heard that having a lot of credit cards you with low balances on them (i.e., you don't really use them) raises your credit score. I just have one card right now. Should I consider getting another one or two?
Thanks!

Answer 1

I notice that non-credit bills (i.e. rent, utilities, and cable) do not really help your credit score as they maintain it. In other words, paying your non-credit bills does not raise your credit score, but delinquent payments will lower it.

I would consider another card only if it is the right card for you. Does the card offer a good APR, what fees does it charge, are there reward programs useful to you? I recommend keeping a balance of no more than 25% of your credit limit. Most will say 30%, but at 25% you have the extra 5% as a cushion for purchases and finance charges.

Watch out transferring balances to another card. Read the fine print because sometimes it is at a higher rate plus additional fees. Some cards consider balance transfers as cash advances, which means higher interest and advance fees.

You still have a lot of time to build your credit. Credit does not build quickly. Most think they will build up a 700 score with a car loan and a few credit cards. You have to consider how much history you established and your history with open accounts. Patience and good financial behavior is the key.

Answer 2

Basically the only things on your credit report right now is most likely your student loans and/or credit card. Paying your rent, cell phone, etc on time is crucial so an account doesn't become delinquent, but they won't increase your FICO score. Yes, having some cc's with low balances can help your score b/c this decreases your debt to credit ratio, but definitely is not the solution. DO NOT open another cc. One is sufficient while in college. Believe me as a recent graduate, cc's are a terrible thing to mess with.

Your credit score is based upon the following:
Payment history - 35%
Amounts owed - 30%
Length of credit history - 15%
New credit - 10%
Types of credit used - 10%
Go to http://www.myfico.com/ to read more on it.

So I suggest focus on paying off your cc balance in full each month and paying your bills on time.

Also, you said you can't work b/c you are a full-time student? Perhaps you should re-think this. I graduated w/an engineering degree and managed to work part-time and still achieve above a 3.0. Instead of taking out the max amount of student loans, get loans that will cover your tuition and rent. Then try getting a part-time job to cover the other expenses. NOTE: Lots of on-campus jobs are more leanient for those with heavy class-loads, rather than a job off campus.

Answer 3

Paying your rent on time, yes that would help. If you have to pay your utilities yourself (not paid by the landlord), paying that on time helps as well. Also make sure that your credit card balances do not exceed 50% of the total available credit. From what I have heard, having a zero balance on your card every single month (either not using it, or paying it off every month) doesn't help get your credit scores up (when you are trying to build your credit) as much as carrying a small balance on the card, and making payments, but keeping the balance well below the 50% limit.

Answer 4

Building Credit:

Obtaining a lot of credit cards and keeping low balances or not using them is NOT a good way to build credit--that is a fallacy.

It is much better to obtain a single credit card, a consumer loan (such as an auto loan) when you are ready, or your student loan. DO NOT over-obligate yourself--don't borrow more than you can pay back. Building good credit does not happen overnight.

Be realistic about your need for credit. If you don't own a home, it is probably not necessary to obtain a credit card for a home improvement store. If you can't afford the clothes without obtaining a credit card for the store, don't get the clothing-store credit card. In fact, most store-based credit cards are way too costly for the benefit derived in deferring payments and do NOTHING for your credit score in the short run. Standard credit cards are much better for a credit-building experience. Many credit unions and banks offer credit cards just for this purpose for students.

Paying off your credit cards and loans on time will improve your credit rating as will the wise use of credit--being selective about what kinds of credit you obtain and how much you take on based on your earnings and situation.

Paying all your other bills on time will keep your credit from getting worse. Landlords and utility companies will generally not report to the credit bureaus for on-time payments, but will DEFINITELY report late payments or failures to pay.

When you need credit, obtain credit from traditional sources to begin with, preferably from a regular financial institution, such as a bank or credit union. These will be more likely to really assist you in your choices as opposed to many other credit-selling companies.

Here are some helpful links:

Amusing credit advocate:
http://www.ihatedebt.com/

The REAL free credit report--the Fair Credit Reporting Act entitles you to one free credit report from each reporting agency once a year:
https://www.annualcreditreport.com/

Credit Union Information:
http://www.creditunion.coop/cu_locator/index.html

Many banks have web sites as well.

GOOD LUCK!

Answer 5

If you considering getting another credit card shift your balances about and take advantage of the 0% for 6 months or whatever. Paying bills on time helps your credit rating, such as mobile phone companies, gas, electricity, credit, store, catalogue.
they put ticks against your credit file for the amount you pay on time in a row, however they also mark down the ones you miss and when they last occurred, they also list how much credit you tried to get and was denied, so you have to be careful to manage it properly and not to fall in to the trap of an un-manageable state. speaking from experience.

for a free 30 day credit file on yourself, go to Experians website

Answer 6

Wow. That is improbable, I imply I do feel you however that's simply improper. I am no longer certain the way you could start to paintings by way of that. She violated your believe, took your credit score clear of you, I might move on however you recognize what she did. The believe for me could be the largest factor. Trying to get it constant could be one more. I could name each and every bank card enterprise and ask if you're an legal signer or a joint character at the account. Find out if you're certainly liable for any of those money owed. If you're, you may also wish to dossier chapter on them, no less than the clock will quit ticking and your credit score will upgrade a lot more quickly than in case you permit her maintain it, I suppose she has performed sufficient. Once you might have manage of the obstacle, then paintings at the dating. Your mother demands a few critical aid. First together with her intellectual state after which together with her price range. No mom of their proper brain could positioned thier youngster in the sort of function. She is also into consuming, medications, or playing. She could have a disease that reasons her to buy always. I do not assume she has some thing to exhibit for the debt. I am sorry for you. This is a larger mark to your middle than it's to your credit score rating. I desire matters figure out for you. You did not deserve that!! Once your mother will get aid and is competent to look the entire scope of what she did, you'll be competent to salvage whatever of your dating however it is going to by no means particularly be the identical. You love your dad or mum, however you might have each proper to be irritated.

Answer 7

The following article should answer most of your questions:

http://financialbasics.blogspot.com/2006/11/credit-reports-and-credit-reporting.html

Have a nice day

Answer 8

pay everything on time and work. if the companies see you working they will most likely accept your application (eg. Loans .cards etc)