Building a Good Credit Score as a Student

improve credit score

improve credit score

One of the most exhilarating parts of growing up is becoming financially independent from your family. However, this can be rather challenging with countless students and grads having to juggle new-found financial responsibilities such as loans, rent and insurance. During a survey conducted in 2014 and published on The Statistics Portal, 23% of US millennials were under the impression that a young adult should be financially independent by the age of 25.

When you already have to worry about classes, exams and finding a job the added financial worries can exhaust you.  One challenge that a student faces is building a good credit score as access to credit has become such an indispensable part of life. The average credit score for Americans aged between 18 and 24 is only 630, which will supply them with sub-prime rates at best. There are a number of reasons why this average is so low and it is important to examine and understand them.


Your FICO score consists of a number of categories with 35% of it being based on your payment history, something which is built up over a period of time and can’t exactly be sped up. A hefty parallel exists between more mature accounts and healthier credit scores. Consumers who boast a credit history of between 5 and 8 years have, on average, a credit score that is up to 40 points higher than someone with only 1 to 2 years of credit history under the belt. College students who are new to credit will have to exercise patience in building a good credit score.


Students need to have funding for their studies regardless of whether it is at a local community college or a prestigious university.  When financial aid services and bursaries are not capable of covering the costs, the students are often forced to turn to high-interest loans or credit cards, often resulting in years of debt. While becoming an adult entails firsts such as buying a car, renting an apartment and applying for credit cards, having poor credit will eventually result in paying higher prices and interest rates. If you do find yourself in trouble don’t despair just yet. A glance at the Review for 2017 – Best Credit Repair Services highlights the ways in which you can repair your credit score in no time.


While studying, students are engrossed in higher education while preparing themselves for the future. Very few are aware of the importance of being educated within a financial context. Up to 35% of all Americans have never checked their credit scores and even fewer understand what a credit score involves.  Only 17 USA states require that financial courses are offered in high school as a requirement and unless parents and other authoritative sources step in to help educate students about financial matters, many will find themselves in difficult positions when faced with financial decisions.

A lot of Americans seem fearful of checking their credit scores, possibly hoping that if they don’t look at it, it will fix itself. There is no reason for students to fear their credit scores. Even though it takes some time to build a healthy score it can be achieved. There are many resources available to teach students and job-market entrants credit basics to help achieve personal financial independence. Starting your life as an adult should be celebrated, not feared, and armed with the necessary knowledge you will experience just that!

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3 Responses

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