Student Finances How To Leverage Student Credit Cards As A Financial Opportunity Read the Article Open Share Drawer Share this:Click to share on Twitter (Opens in new window)Click to share on Facebook (Opens in new window)Click to share on Tumblr (Opens in new window)Click to share on Pinterest (Opens in new window)Click to share on LinkedIn (Opens in new window) Written by Zina Kumok Modified Jan 31, 2022 3 min read Advertising Disclosure The views expressed on this blog are those of the bloggers, and not necessarily those of Intuit. Third-party blogger may have received compensation for their time and services. Click here to read full disclosure on third-party bloggers. This blog does not provide legal, financial, accounting or tax advice. The content on this blog is "as is" and carries no warranties. Intuit does not warrant or guarantee the accuracy, reliability, and completeness of the content on this blog. After 20 days, comments are closed on posts. Intuit may, but has no obligation to, monitor comments. Comments that include profanity or abusive language will not be posted. Click here to read full Terms of Service. From the Mint team: Mint may be compensated if you click on the links to our issuer partners’ offers that appear in this article, including Chase. Our partners do not endorse, review or approve the content. Any links to Mint Partners were added after the creation of the posting. Mint Partners had no influence on the creation, direction or focus of this article unless otherwise specifically stated. Save more, spend smarter, and make your money go further Sign up for Free Being in college is all about learning new skills. Sometimes that means learning how to cook on your own or how to manage a busy class load. Learning how to build a credit history is one of the many skills every college student should have. It may sound strange, but using a credit card can build those skills and create solid financial habits. Having a credit history is necessary for post-grad life. Learn how to use student credit cards to create your own financial opportunity. How Student Credit Cards Improve Your Credit Using a student credit card in college can build your credit score so you have a reputable credit history when you graduate. Having a solid credit report will help you rent an apartment without needing a cosigner or sign up for utilities without putting down a deposit. Some employers will check your credit report, and a good report will make you a more attractive candidate. If you have student loans, a good credit score will make you eligible to refinance those loans for a lower interest rate. It can take at least a year to build a credit report so starting while you’re in college will make those first couple post-grad years much easier. How to Use a Credit Card Responsibly A popular myth about credit cards is that you should always keep a balance on the card, even if you can afford to pay it off. Some people think their credit score will suffer if they pay their balance in full. This piece of advice is false. The key to building a credit report is to make charges on a credit card, wait for the statement period to end and then pay off the balance on or before the due date. If you pay the balance before the billing period is over, you’ll have a $0 balance on your statement. Having no balance won’t improve your credit score. You have to let the statement period end so the credit card issuer can report a balance to the credit bureaus. The easiest way to be a responsible credit card user is to make a few small purchases each month and set up automatic payments for the full amount. This strategy ensures you’ll never forget about a payment and you’ll never owe more than you can afford. Add a couple small recurring bills like your Netflix or Spotify subscription to your credit card. Make sure the amount equals less than 30% of your available credit limit. Charging more than 30% of the credit limit will ding your credit score. Check your credit score for free through the Mint app, which updates it once a month. If you notice something wrong, contact the credit bureaus immediately. You can view your credit report for the three credit bureaus at AnnualCreditReport.com. Save more, spend smarter, and make your money go further Sign up for Free Previous Post Student Loan Assistance Programs: What You Need to Know Next Post What to Do If Your Wages Are Being Garnished for… Written by Zina Kumok Zina Kumok is a freelance writer specializing in personal finance. A former reporter, she has covered murder trials, the Final Four and everything in between. She has been featured in Lifehacker, DailyWorth and Time. Read about how she paid off $28,000 worth of student loans in three years at Conscious Coins. More from Zina Kumok Visit the website of Zina Kumok. 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