Today I wanted to talk about finances during college! Mostly– I wanted to chat about building up your credit. A good credit score can help you get the apartment you’ve always wanted, get better interest rates, and open other doors for you!
First, let’s start with finding a credit card that works for YOU.
I highly recommend the Discover Student Credit Card because of all the benefits it has for being a student (if you use the link above to join, we both get $50 off our statements!).
Here are some of the things I love about this card:
– You receive a dollar-for-dollar match for all cash back you’ve earned after the first year
– You get a $20 statement credit each school year your GPA is 3.0 or higher- Free FICO credit score
– You got 5% cashback at different places like grocery stores, restaurants, gas stations, amazon
– You get 1% cashback automatically- No annual fee
How credit scores are calculated:
– Your credit mix (loans + credit cards) is 10% of your score
– Your payment history- if you have missed any payments, or have amounts owed on other accounts, this accounts for 35% of your FICO score
– How much revolving utilization is determined by your total credit line and the total balance owed on your revolving credit — 30% of your FICO score
– How long you’ve had accounts open 15% of your FICO score
– Credit seeking activity — 10% of your FICO score
Tips I have on increasing your credit score:
– Never spend money you don’t have
– ALWAYS pay your bills on time — once I get sent my statement, I immediately pay the bill!
– Keep your balance low– your utilization is very important
I am not an expert, but this is just what I have experienced + have searched about! A lot of people use budgets, and I think that is great if it works for you. An excel sheet with your monthly spending could help you see where you spend your money and where you could work on saving. I hope this helps clarify credit a little more, and if you have any questions or any tips, comment them below.
I would also suggest looking into a credit card that best serves you. I love the Discover Card, because I get cashback on everything I purchase. Another great card is Target’s RedCard, where you get 5% off everything at Target. Other cards could have rewards such as getting airline miles or points for hotel stays.
https://www.experian.com/blogs/ask-experian/credit-education/improving-credit/improve-credit-score/
best wishes, be well and thrive, cam
