4 Credit Score Boosting Tips for Students
Students generally think FICO scores are primarily important for adults, who have to deal with mortgages, auto loans, high monthly credit card bills, and other such financial perils. Ignoring your credit score is a big mistake, as this three digit number may turn out to be more important for your future, than your GPA, which explains why it is imperative to hire a trusted credit repair company, as soon as you find out that you have a low score. FICO scores are equally vital to the financial lives of students for three main reasons:
1. It determines the cost of the big purchases that you make in the future.
2. You will need longer time to improve your credit score if it takes a drastic hit.
3. A bad start to your credit history will not help an impact on your financial future
Taking into consideration these factors, we provide you some credit enhancing tips, keeping the interest of students in mind.
1. Start New Lines of Credit
Good financial behavior is one of the easiest ways to boost your credit card score. Creating new accounts is an effective way to improve your financial profile by starting afresh. You can request a new credit card and use it responsibly by paying the bills on time, not maxing it out and not making unnecessary purchases.
2. Create a Joint Account with a Responsible Adult
The profitable part of being a co-owner of an account is that even if your partner is doing most of the responsible usage, you get props for it too. So, if one of your parents is a wise spender, and is not erratic with their finances, ask them if you can be a joint account holder with them.
3. Don’t Make Too Many Credit Inquiries
When you’re looking for student loan options or perhaps even an auto loan option, it is natural to ask for invoices from multiple banks, but it has an impact on your FICO score. So, while no one’s stopping you from doing your research in such matters, it is advisable to use the internet or ask around among your friends, as opposed to going straight to a bank.
4. Request for an Increase in Card Limits
The debt to credit ratio affects your FICO score and a smart way of making your current balance seem greater than it is by increasing your spending limit. You can also consider switching to a bank that offers a better spending limit, but ensure that you don’t exploit this limit, as that’d make the whole exercise, counterproductive.
Those were some of the effective ways for students to boost their FICO scores and hope to attain more financial liberty in the process. Paying bills on time, avoiding credit card debts and checking your credit report are some of the effective ways to maintain and improve your credit score. If you need the assistance of a trusted credit repair company, speak to one of our consultants for a round of no-obligation free consultation.
A healthy credit score is equally important for students. The blog discusses four effective ways for students improve their credit score.