Heading to college comes with more than just class schedules and textbooks—it brings a wave of new financial responsibilities. Whether you're paying for tuition, housing, books, dorm room essentials, or fueling late-night study sessions with coffee runs, how you manage your money now can impact your future in big ways.

One of the smartest financial steps you can take as a student is opening a credit card. When used responsibly, a credit card can help you build a strong credit history, develop healthy financial habits, and prepare for major milestones like buying a car, renting an apartment, or even purchasing your first home. Plus, with a rewards program, your everyday purchases can earn cash back or points that contribute to long-term savings.

Tips for Building Credit in College:

1.      Make all credit card payments on time.

Credit cards can be an incredible resource when used responsibly. It is important to make sure you are paying all credit card payments on time so you don’t accrue late fees and/or damage your credit score. If possible, it is recommended to pay the balance of your credit card each month to eliminate money spent on interest. If paying the full balance off each month is not possible, it is important to pay at least the minimum balance.

2.      Keep your credit balance below 30%.

If you choose not to pay off your monthly credit card balance, a good rule of thumb is to keep your balance below 30% of your credit limit. Credit bureaus examine your credit utilization to determine if a borrower is a potential risk to lenders. If your balance is above 30%, they could conclude you are relying too much on borrowed money, therefore, raising the likelihood you won’t be able to make payments on loans. Consequently, if you are trying to boost your credit score, the easiest way to do so is by paying off your credit card debt.

3.      Avoid opening too many loans at once.

Opening multiple loans at once can seriously damage your credit score. Be cautious when deciding to open a new loan, especially if you already have several active loans.

Building credit while you're in school isn’t just smart—it’s strategic when done correctly. It helps set you up for lower insurance rates, better loan terms, and rewards you on everyday expenses. Start early, spend wisely, and your future self will thank you.

Looking for more tips? Explore our “Embark on Your Credit Journey” guide to learn how to make the most of your credit!