Learn How to Build Your Credit While in College

2. Get a loan. Any kind of loan will do, as long as the payments are reported to the major credit bureaus. So you could get a car loan or even a loan against your savings account. In the case of the latter, the bank would freeze enough funds in your account to cover the amount of the loan. As you pay off the loan, the corresponding funds are released.

• The nice thing is that you don’t even have to come up with the money to pay back the loan. Use can use the loan itself. Just deposit the loan proceeds into another account and then pay back the loan with that money. You could even take out another loan with that money.
• These loans are very easy to get since they’re 100% secured. If you have to, borrow the money from your parents to get started. Just be sure to make the payments on time.
• When that loan is paid off, get another one and repeat the process.

Creating great credit is quite easy; it just takes a little discipline and planning. If you can get 2 credit cards and use them appropriately, you’ll be well on your way. If you can also get and pay off a couple of loans, you’ll be shocked at how great your credit score is by the time you graduate.