{"id":20536,"date":"2024-05-07T13:12:27","date_gmt":"2024-05-07T19:12:27","guid":{"rendered":"https:\/\/www.lexingtonlaw.com\/blog\/?p=20536"},"modified":"2025-06-05T16:40:14","modified_gmt":"2025-06-05T22:40:14","slug":"how-to-build-credit-as-a-student","status":"publish","type":"post","link":"https:\/\/www.lexingtonlaw.com\/blog\/credit-101\/how-to-build-credit-as-a-student.html","title":{"rendered":"How to build credit as a student + 6 mistakes to avoid"},"content":{"rendered":"\n
\"A<\/figure>\n\n\n\n

Learning how to build credit as a student is important so you\u2019re ready for life after graduation. Focus on building healthy credit habits\u2014paying bills on time, keeping your credit utilization low and avoiding common credit mistakes.<\/p>\n\n\n\n

The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. <\/em>See Lexington Law\u2019s editorial disclosure for more information.<\/em><\/a><\/p>\n\n\n\n

While the government considers you an adult at 18, many people consider graduating college and starting their first job as the first real marker of adulthood. However, adulthood comes with responsibilities, many of which require a credit score\u2014putting utilities in your name, renting your first apartment, putting car insurance in your name and even buying a car.<\/p>\n\n\n\n

Read on to learn about some of the ways you can build credit as a student so you can graduate college with a degree and healthy credit.<\/p>\n\n\n\n

Become an authorized user on a credit card<\/h2>\n\n\n\n

For many students, the first step to building credit is using<\/a> a credit card to build credit<\/a>. Unfortunately, it can be challenging to get a credit card if you don\u2019t have any credit.<\/p>\n\n\n\n

Often, a person\u2019s first credit card isn\u2019t actually theirs. Instead, they become an authorized user on someone else\u2019s credit card. An authorized user is someone who is added to another person\u2019s credit card account with full spending privileges. Responsibility for paying the credit card bill will still belong to the primary cardholder, who is usually a parent, close friend or relative.<\/p>\n\n\n\n

The advantages to being an authorized user don\u2019t end with being able to use the card like it\u2019s your own. You also piggyback credit<\/a> because the credit card\u2019s account and payment histories are added to your credit report. This extends the length of your credit history, builds your payment history and increases the amount of credit available to you, which should all help improve your credit.<\/p>\n\n\n\n

If you want to ask someone to make you an authorized user on their account, make sure they have a good credit history. You don\u2019t want to be added as an authorized user to a primary cardholder who doesn\u2019t pay their bills on time, since that would hurt your credit more than help it.<\/p>\n\n\n\n

Open a student credit card<\/h2>\n\n\n\n

If you can\u2019t become an authorized user on someone\u2019s credit card, you can open a student credit card instead. A student credit card is a type of credit card<\/a> specifically geared for students looking to build credit.<\/p>\n\n\n\n

Often, the only difference between a traditional credit card and a student credit card is that they have a lower credit limit. Some also offer rewards for students, such as incentives for good grades and other cashback and rewards offers.<\/p>\n\n\n\n

\"Student<\/figure>\n\n\n\n

Open a secured credit card<\/h2>\n\n\n\n

Another type of credit card to consider as a student is a secured credit card<\/a>. With this type of credit card, you make a deposit to cover your credit limit, which minimizes the risk to the issuer. As a result, credit card issuers are more likely to offer credit to someone with no or low credit.<\/p>\n\n\n\n

As you use the credit card and pay your bill on time, you\u2019ll build credit and eventually graduate to an unsecured credit card.<\/p>\n\n\n\n

Develop healthy credit habits<\/h2>\n\n\n\n

College is full of great experiences, but the costs can add up quickly, and being financially responsible can be challenging. Throw in access to credit for the first time, and it\u2019s easy to see why many students struggle with credit initially.<\/p>\n\n\n\n

While students may want to take advantage of that new credit limit, it\u2019s important to use your credit card wisely. Only use it for emergencies or small, regular expenses that you have the cash to pay for. These actions seem small, but they will establish the skills you need to keep your credit high throughout your life.<\/p>\n\n\n\n

From the moment you have your new credit card, do the following:<\/p>\n\n\n\n