Building credit in pt school

[engmedpt]

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Can anyone offer advice on building credit i pt school while balancing loan money? Im very uneducated on this topic and start in August. Wanted to here from people on here who are a few years in.


Thanks!

 

[jblil]

Use your credit card and make regular payments. Late payments will ding your credit score the most.
If you don't have a credit card yet, apply through your school. Unless you go to Turnpike Tech, most large banks offer some kind of special deal on credit cards for students, through the school. Get a couple of store cards to add to the mix.

Sign up with creditkarma.com and creditsesame.com. Both are free, and one gives you your Experian score and the other your Transunion score. Check them every so often.

 

[jjjDPT]

As jblil said, get a credit card and use it responsibly. I use a Bank of America cash rewards card. It's a free credit account and I just use it as if it's my debit card (never actually going in debt by paying it off monthly or even weekly), and I get about $150 per year for using it. Using a credit card this way will establish your credit score. To KEEP your high credit score, make sure you NEVER miss a payment or get sent to collections for any kind of bill. This includes student loans. If you are in a financial hardship or going back to school, make sure you effectively defer all of your loans so you don't miss expected payments. By doing all this, your credit should be in the "Excellent" range.

 

[DesertPT]

I use a Bank of America cash rewards card. It's a free credit account and I just use it as if it's my debit card (never actually going in debt by paying it off monthly or even weekly), and I get about $150 per year for using it.

I do the exact same thing and it has worked great for me. I would highly recommend this practice to anyone, especially students. But for it to be successful you must resist the allure of credit card debt and not use it to spend money that isn't actually in your bank account.

 

[engmedpt]

Trust me. I would never abuse it. That is a path I never want to walk down. I just know that it's almost a game while in grad school and undergrad since you pay with the card and then make the payment with loan money. I assume make purchases that you already have money for and then pay it on time? Are there specific purchases I should be focusing on? i.e. rent (idk if you can do that), food and essentials, textbooks. Does the actual price range and what you purchase play a significant factor in affecting your credit score? (basically what should I focus on and what should I not?) If I'm off on this, then just correct me.

 

[jblil]

Does the actual price range and what you purchase play a significant factor in affecting your credit score?

Nobody at the credit bureaus is going to scrutinize our purchases to make sure we are not buying too many Twinkies. The main thing to watch for is your "utilization", which is the ratio of what you charge to your credit limit. If your card limit is $1K and you charge on average $600/mo, then your utilization is 60%. The lower that percentage, the higher your credit score, all other things being equal. That's why you should never refuse an offer for a limit increase from your current card. If you continue to charge the same amount (IOW, do not splurge), your utilization will automatically go down.

 

[PT2Bee]

Pretty much what everyone already said. I have 2 credit cards and use them pretty regularly and always pay about 3-4x the minimum payment. I have a pretty high limit on both but still never go over $200 on either at any one time. Credit karma is a good suggestion because it lets you know where you sit and if you need to be better about your spending habits.

 

[engmedpt]

You guys are great. Thank you.