Multiple credit fronts
Firstly, when it comes to collegiate exploits it is imperative you secure a credit score before pursuing loans of any kind. Your credit score will be determined by a credit report, and this will tell lenders what interest to charge you on a given loan
. The higher the credit score, the better.
You increase your credit score by paying off bills on time. If you’ve got a utility bill, pay it off on time. Rent may or may not increase your credit score, but believe it or not there are some scenarios in which this can be a factor that substantively decreases your credit score.
For example, if you were in a roommate sharing situation where three of you paid on a single room, if the total rent wasn’t delivered to your landlord on time, this could have an impact on your credit even if you paid your portion on time. Should you pay only a few days off, and never miss a payment, ultimately you could see a negative impact.
But the good news is, things like cellular devices can actually help return your credit score to a higher rating. Again, if you pay them off on time, it helps establish a positive credit history. What you want to avoid to increase your credit is living beyond your means.
This may sound counter-intuitive: buying anything on credit is living beyond your means, isn’t it? Well, not always. If you’ve got a credit/debit card and make credit purchases that are paid off immediately, this is good for your credit history, which is ultimately good for your credit report. What you can do with good credit before college
If you’ve established good credit history beforehand, you can source better loans. Here’s something else worth considering, though: you may not want to take out any loans that are traditionally delivered by agencies who give students loans for college. These will have varying interest rates.
Your best bet is to have a loan that is secured and has someone with better credit than you co-sign on it. You can do this at a bank with a parent or trustworthy investor. If you sourced a loan of this caliber to be paid off over a year’s time for $15k, and you pay that loan off on time, your credit will be high enough for anything. Additional ways to defray expenses
You want to dot all your i’s and cross all your t’s when it comes to funding a collegiate effort. One of the details you can use to help fund your educational exploit involves a tax credit. The IRS will help you save a few thousand dollars
if you’re in the pursuit of certain educational aims.
There is an additional tactic worth pursuing here as well, and that is obtaining a collegiate credit card. That is to say: a card that is specifically designed for educational use. You can actually have situations where cash back is matched by the institution who provides the card. Getting your future in order
According to Best.CreditCard, for those financing an educational pursuit or pursuing higher knowledge themselves, the best secured credit card for college students
offers surprising benefits the first year: “For new members, all cash back is matched by Discover...” Cards like that require a minimum 630 credit score.
As you consider making an official foray into college territory, look at your current bill situation and see if there’s anything you can pay off proactively. Have a credit report run to see where you stand. Additionally, be sure you report your collegiate activity to the IRS for a substantial tax break, and potentially a high return.