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Responsible credit building for the average college student

S

Siva

Diamond Member
So I just got my first credit card. I don't need it for anything, and don't intend to use it outside of simple credit building.

So where do I start, how much do I spend and how should I pay it back?
 
A credit card in the hands of a college student can be dangerous. Why not pay for utility bills or have a land-line telephone bill instead? You can build credit that way, too.

[ e d i t ]
i.e., Have the utility bills/phone in your name
 
I was told the best way was to put a decent balance on it, then vary between paying it off completely and running a balance for a few months. Just DON'T miss any payments or go over your limit!
 
Originally posted by: RaDragon
A credit card in the hands of a college student can be dangerous. Why not pay for utility bills or have a land-line telephone bill instead? You can build credit that way, too.

[ e d i t ]
i.e., Have the utility bills/phone in your name
Click to expand...

or you could not treat him like a five year old
 
Save all credit receipts, and as you use the card set aside the equivalent amount in cash (or in a checking account) and pay off the balance each month. It shows that you can borrow and make steady payments. Don't use more than 50% of your available credit (high credit utilization is usually not a good sign.)
 
Originally posted by: Tu13erhead
I was told the best way was to put a decent balance on it, then vary between paying it off completely and running a balance for a few months. Just DON'T miss any payments or go over your limit!
Click to expand...

no need to carry a balance. just spend money on it and pay it off every month on time. very easy.
 
Originally posted by: Tu13erhead
I was told the best way was to put a decent balance on it, then vary between paying it off completely and running a balance for a few months. Just DON'T miss any payments or go over your limit!
Click to expand...

Myth.
 
Originally posted by: Tu13erhead
I was told the best way was to put a decent balance on it, then vary between paying it off completely and running a balance for a few months. Just DON'T miss any payments or go over your limit!
Click to expand...

Bad advice.

Spend and pay in full.
 
Ok, so I don't need a balance? I'd rather have it that way. No way can I get near my limit, who the crap gives a college student a $3000 limit. I couldn't even pay that over 6 months once I get back to school.

I can't have utilities or land lines in my name, unless my parents are willing to sacrifice it. My school lacks off campus options for all but the richest of students (expensive area, no student accomodations).
 
Yep. The companies that gain from you paying interest are different from the companies that calculate your credit score. The limited knowledge that has lbeen publically disclosed details everything that is included in the score. How much interest the credit card companies make isn't one of them.
 
dont listen to people that tell you to ditch it and pay for a cell phone or utilities instead. having a credit card is perfectly fine. just control yourself. i have 3 credit cards and i just turned 20, but i dont have any debt. its not a hard concept.

get a credit card through a gas station first of all. anyone that doesnt do this is simply a moron. an utter, complete moron. you have to buy gas anyway, and if you put it on a gas card from that gas station, you get free gas every month. i simply cant understand why anyone wouldnt do this.

and who the crap gives a college kid a $3000 limit? it all depends how you work it. im a college student and my limit is $11,500. its a rewards card, so i buy everything on it and pay it off every month...and at the end of the year, i get a ton of free stuff for buying what i would have bought anyway. it is the only thing that i can honestly say is free. carrying a balance to earn credit is wrong. it makes no difference. buy stuff, and then pay it off. treat it like a check card and you are good to go.
 
i wish i wasn't a moron and cancelled mine. F me.....now I have to BEG for those easy-to-come-by credit card offers.
 
Originally posted by: DrumminBoy
does it affect your credit if you have a credit card and never use it?
Click to expand...
It is a small benefit if you have a credit card that you don't use. In some rare cases, it could be a big benefit.
 
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