Student Credit Cards: Tips To Build Credit Worthiness & A Great Credit Score!

Tip! Closing unused accounts is a negative strategy to raising one's credit score. Factually, fewer open accounts with the same amount of debt ultimately reduces a credit score.

Getting to college and keeping up with your studies is hard enough and let's not forget the weekend jobs and late night shift. To top this off you have to worry about the building credit and your financial "reputation."

Take a deep breath and sit back. Like most problems in life, this one too has a solution that is not as hard as it seems.

Let's start with "credit worthiness." It simply means that you appear reliable enough for financial firms to lend you money. These are some tips to help you build and maintain "credit worthiness."

• Pay your student credit card on time. On time means before the due date. You see, even one day late, is late and you don't want to appear tardy to those who want to lend you money. They translate it to irresponsible.

• Don't go overboard and over your credit limit. Staying below your credit card limit demonstrates your ability to manage your money. You come across as reliable. Try to keep your account balances less than 50% of your available credit.

Tip! Always be aware of the type of credit you hold because credit from financing companies can affect your credit score.

• Less is better. Think of this as a love relationship. You find the one you love and really nourish that relationship. If you have too many relationships, they will remain on the shallow end. In life, you will need depth.

Limit the number of credit cards you acquire or even apply for. How would you feel if your girl friend or boy friend started asking others for dates? Just asking someone else for a date indicates some kind of a problem, doesn't it? Excessive credit inquiries over a short time are interpreted as you having financial problems.

• Try to pay your balance in full each month or at least make sure you send more than the minimum payment required.

Tip! Thoroughly review your credit score for errors or outdated information. Quite often, certain lending institutions are not due diligent on updating old information.

• Ignore the pressures that you may feel in social circumstances. You live much longer than you think and most people you now know will not be as close to you in a few years. Your debts will be with you for much longer if you are not careful. Work on some basic emotional disciplines like asking yourself if you really need something before you charge it. Or, can you repay the charge and if so how long will it take you? If it takes you longer to pay the credit card debt than it takes you to finish college, you may think about that purchase twice.

• Review your student credit card statements carefully and write to your credit card company as soon as you notice an error on a billing statement. Don't just call them, write to them and keep a copy.

• Review your credit reports and check for inaccurate, incomplete or outdated information. You have the right to dispute inaccurate information.

Tip! If you have old accounts that are already paid off, don't close them! Remember, you want to keep your available credit as high as possible for as long as possible. Having more credit available versus your debt improves your credit score.

• Keep in touch with your creditors, report your card as lost or stolen immediately, let them know of an address change immediately, inform them of telephone number change immediately. I know, that is a lot of "immediately" in one sentence.

• Keep your friendships a little on the distant side and don't open joint accounts easily. As I said, most people you know now regardless of how close you feel to them, may be much more distant both geographically and emotionally in a few years.

If you get into trouble, despite your best efforts, exercise courage and honesty. If you can't pay your bills on time, pick up the phone and call your creditor to explain your situation and ask them for advice. Creditors will often work with you to come up with an alternate payment arrangement.

Tip! Pay with cash Using debit cards and cash are good ways to control your debt (and therefore maintain a great credit score).

I leave you with a quote with James Lane Allen, "You are the one who must choose your place." May you be happy with your choices.

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Student Credit Cards: Tips To Build Credit Worthiness & A Great Credit Score!