As a student, the priority is to have good grades or experience new things with our friends. Also, students are busy enough doing their exams, homework, without thinking about credit history.
Credit history while studying
However, thinking of a future, where you will have to rent an apartment, buy a car, etc. This is important since many students graduate without having built a financial history.
1. Rent an apartment
When we graduate and seek our independence, we will first look for a new place to live. According to studies on people who rent apartments, these tend to be more flexible with people who already have the good credit history. If you do not have any for when that time comes, you will have to be forced to ask for the signature of someone else, in this case, your parents.
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2. Buy a car
Unless you buy a car in cash, you probably have to apply for a personal loan to buy it. The lenders also study your credit and if they find out that there is not a trace of you, you will have little chance.
3. Apply for loans for studies
In order to be a candidate for a graduate or postgraduate loan, a good track record is basic. Perhaps through government scholarships, it can favor people with low credits. In case you have to be forced to apply for a loan to a bank, they will do a rigorous investigation.
4. Have approved credit cards
There is a large number of credit cards with low-interest rates to which you can apply. This type of cards can bring you benefits such as promotions for accumulated purchases, or km of travelers that benefit you to make air travel.
To begin the recommended thing is to have a very basic credit card, in which you do not have to pay interest and can benefit. As you put this card to good use, you will be able to get better with more credit in the future.
5. Get auto insurance
Not having a credit card can make it more difficult to get insurance for your car. If, at the time of becoming independent, you do not want to depend more on your parents’ car insurance, without a credit card you may not be able to do so.
Each insurance company relies on its own terms to grant auto insurance depending on the person’s history. If your credit score is very low, then the payment you will make for the insurance will be even higher.
6. Build your history with credit cards
The best way to build your credit card history is to apply to a student card. These cards come with lower limits so they are very secure cards.
Once you can get one of these cards to give it a good use, that is, be prudent with the money. This means paying off your debts, paying before the deadline, paying more than the minimum (without generating interest).