Building and Maintaining your Credit 

Credit for an individual is built as you borrow and then repay money to financial lending institutions, such as banks and credit unions. Once this process begins, a credit report is created for you which summarizes your credit activity, including your loan repayment history and the status of your current credit card(s) and banking account(s). Your credit report is a major factor that lending institutions look at when you are borrowing money for larger ticket items like a car or a home. Your credit scores can also assist companies in determining if they want to provide you with a cell phone contract, rent an apartment to you or it can even impact you getting a job. According to, there are several factors that will influence your credit history with two being: 

  • Payment history: Payment history is one of the biggest influences on your credit scores. Payment history accounts for approximately 35% of most scores. A history of on-time payments is good for your credit scores, while missing payments has negative consequences. 
  • Length of credit history: The length of credit history is particularly important. Unless your parents added you as an authorized user on their credit card, you most likely won’t have a lengthy credit history to back up a credit application.  

As a college student, there are several things you can do to start building credit such as utilizing a credit card or taking out a loan. Many students do have to take out student loans while attending college which can help you in this process. Student loans are considered good debt; however, you should exhaust all other financial options available to you before taking out a student loan. Information regarding the loan process at SPC can be accessed here. The Federal Student Aid’s YouTube channel  also has many videos explaining financial aid, loans, etc. Empowering yourself with this type of information will serve you well. The following articles provide tips for college students to help in building credit: 

How to Build Credit in College: 7 Essential Tips for Students

How to Build Credit as a College Student