College Students Can Increase Credit Scores

• There are several things that college students can do to increase their scores while they are working towards full time employment in their chosen field…
• Apply for a LIMITED amount of credit and use that credit RESPONSIBLY.  If possible, borrow no more than 25% of the credit limit on your card at any given time.  You will want to do this for at least 12 months.
• There use to be a tremendous boost to scores if you were added as a signor on an existing account.  While you will still get some boost from it – the amount is diminished.
• If you have trouble getting a credit card – you can always qualify for a secured credit card.  The problem with this is the amount of additional fees that you are charged on this type of account – the better option is to apply for a “minor” credit card with a Jewelry Store or local music or furniture store.
• ALWAYS PAY BILLS ON TIME.  Not paying your bills on time is a sure-fire way to lower your FICO score.  Each late payment can lower your score by as much as 20 points.
• Be weary of Student Loans that increase the amount of debt.  Caring a significant amount of outstanind debt, such as student loans, car loans, and other types of installment loans can lower your debt-to-income ratio and in turn, your FICO score.  If you can lower your debt – you can raise your score at a rapid pace.

If you have questions about how to improve your credit scores – call Steve Thorne, 919-649-5058