Credit Cards for Students
Please note that for more details you must see an advisor or go directly to the credit card pages. See the below information before signing up for anything!
What is a Good Credit Score?
There are a few different tiers and the scores range from 300 to 850.
300 to 579 is a 'poor' score
580 to 669 is a 'fair' score
670 to 739 is a 'good' score
740 to 799 is a 'very good' score
800 to 850 is a 'excellent' score
How Long will it Take to Build My Credit Score?
Credit scores usually take s about 7 to 10 years to build. This is because they need to base part of your score on a historical component.
You can check your score about once per year without it affecting your score at Experian, Transunion, or Equifax.
Components of a Credit Score
Credit scores are comprised of 5 different sections:
Total Credit Accounts (or credit mix) - This accounts for 10% of your credit score. This is why it is recommended that you only have, at max, two credit cards.
Length of credit - This accounts for 15% of your credit score. This is why the longer you have an account open the better your score is likely to be.
Credit Inquiries (or new credit) - This accounts for 10% of your credit score. This means that it is best not to keep applying for credit if it is not actually needed.
Utilization - This accounts for 30% of your credit score. In order to score high in this section, keep your utilization of credit lines low. It is recommended that you use less than 30% of your limit every billing period.
Missed Payments - This accounts for 35% of your credit score. It is important to pay off the balance every month to maintain a high score in this section. Paying minimum balances may result in interest occurring on the remaining balance.
6 Tips for Responsible Credit Card Usage
Building credit is important. You will need it for a lot after college life. However, be sure to use credit cards wisely. Not doing so could result in negative effects not only for your finance but could have negative impacts on other aspects of life.
1
Read the credit card agreement and know your terms.
2
Beware of potential fees.
4
Spend below your credit limit. Only use 30% of your credit limit or lower every month.
5
Keep an eye on your credit score. Use the free reports every year to get a thorough understanding of were you stand.
3
Pay more than the minimum or, preferably, pay the full balance every month.
6
Take advantage of the rewards!!