How to build a credit history in college

As a college student, your credit score is probably the last thing you're thinking about. There’s a reason why college students have the worst credit scores in America. Building your credit can be a pain, especially starting from scratch and you really want to start early.

A credit score is a measure of how good you are with money. Your employers, landlords, and future lenders (think buying a house and a car) will look at your credit score. By building your credit now, you're laying the groundwork for your perfect car, future apartment and dream job. 

Here are a few ways to help your grow that credit history, so you can secure the sweet benefits of a high credit score.

1. BoroCash

BoroCash is up to $2000 on the Boro app that is exclusively for college students and has been proven to help students raise their credit scores. Borrowing money and paying back over time helps establish a positive payment history. The average student even saw their score improve 40+ points in the first six months. All you need to do is download Boro, fill out a short profile, and then select the cash amount and payback length that works best for you. You'll know your monthly payments, including your interest before you agree to anything. 

2. LevelCredit rent and utility reporting

Already paying for rent and utilities in an off-campus apartment? With LevelCredit, you can have those payments reported to the major credit bureaus to help you start establishing credit history (and no, they don’t already count toward your credit). Plus, LevelCredit can report past rent and utility payments (up to 24 months). It's a super easy way to start building credit history on payments you're already making.

3. Student Loans

Those crazy student loans that you took out for college are super helpful for building credit. For many people, student loans will be one of the first major pieces of debt and typically their first line of credit. With student loans, you’ll increase your credit age, which is around 15% of your total credit score. You won’t need to start loan payments until after you’ve completed college, but you can start paying off the interest to get a head start.

4. Credit Cards

There’s a reason it’s called a credit card. Making full payments on your credit card is an essential aspect of credit building. There are a number of secured or “builder” credit cards for you to get started with, that usually require you to put down a payment upfront. These cards are designed for new credit users, or if you have a credit score that’s not-so-great. Credit cards aren't for every student - you really need to stay on top of the payments and make sure you are paying in full so you don't carry a balance.

These are just a few of the ways that you can build your credit. Building credit is a lifelong journey and it's so crucial to start building your credit history sooner rather than later. Looking to learn more about credit scores? Check out more info on BoroU.