Qualifying for Credit
If you have no credit history at all or are trying to start over and repair credit problems, you’ll likely find yourself in the time-honored tradition of proving your creditworthiness when no one will extend you credit.
These days, college students don’t face this dilemma. Oftentimes, they’re offered major credit cards when they don’t even have a job. This is not, however, a vote of confidence by the credit issuer, but rather it’s a show of hope that the student will live a life in debt and prove to be an excellent customer.
If you can trust yourself to manage credit wisely, go ahead and snag one of these offers, or ask your bank for one of their special student credit cards that often come with retail discount privileges and other perks. Otherwise, the following guidelines should help you establish a solid payment history and qualify for a line of credit somewhere down the road:
- Put your apartment and utilities in your name.
- Apply for a car loan and make timely payments.
- Apply for a secured card at your local bank.
- Make timely payments in full for six months in a row, then ask your bank for a major credit card.