Increase Their Credit Score

Tips on How Students Can Increase Their Credit Score

Tips on How Students Can Increase Their Credit Score

Students do not often learn about credit scores or credit reports in schools and get redirected here except if they take up a finance-related degree. Nevertheless, understanding a credit report is crucial since it can impact your future as a student.

If you are unsure what a credit report is, continue reading to learn what it is and ways on how you can make your credit rating better.

What Is a Credit Score?

Let’s say you want to apply for a credit card. When you register for one, you need to fill out a form about yourself and your finances on your chosen bank’s website. Then, the bank will assess your credit report.

A credit rating or score is your track of how reliable you are in paying and managing your debts such as bills, loans, and credit cards. It contains comprehensive information about your credit history, credit accounts, public documents, and your information.

All this information will be considered in giving you a score together with other supplemental information you give. This can also show lenders in the future your reliability in repaying. Therefore, if your score is high, lenders will see you as low risk. As a result, banks will be more willing to provide you a loan.

What and What Not to Do to Get a Good Credit Rating

Here are things you should and should not do to get a good credit score.

What to Do:

  • Be on the Electoral List

You need to make sure you are on this list so that lenders can easily verify your identity and increase your chances of getting a better credit rating.

  • Use Your Credit Card Frequently and Carefully

You can show potential lenders that you can be trusted if they see that you do not use your credit card all the time and pay your bills on time.

  • Pay Bills on Time

Lenders will see that you can pay your loan on time if you pay your bill on time. They will have the impression that you are responsible and have stable finances. You can also get a phone contract.

What Not to Do:

  • Applying for a Credit Card after Getting Rejected

This is one of the worst things you can do to your credit card rating. Lenders will think that you are desperate to have the money, which can be worse for your credit card rating.

  • Having Many Overdrafts

Having many overdrafts is a risk for lenders because it can show that you are not responsible enough for managing your finances.

  • Keeping Many Unused Credit Accounts Open

If you have a lot of credit, lenders may think that you cannot keep up with these accounts.

Consuming All the Available Credit

If you have a lot of credit available, it is best not to use them. Consuming all of it can lower your score.


Finally, you understand how important having a good credit rating is. These tips can help you get a good credit score that will be useful when you apply in banks for a credit card, loan, or mortgage.

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