Boosting Your Credit Score and Limit as a College Student
As a college student, receiving your first credit card with a low spending limit can be frustrating. However, having a higher credit limit can provide more financial flexibility and independence. Here are some tips and tricks to increase your credit score and limit, allowing you to make real purchases and pay them off responsibly.
Factor in Family Contributions
When applying for a credit card, banks consider both taxable and non-taxable income. If your parents or family members provide financial assistance, such as paying tuition and rent, you can include this as non-taxable income. This can significantly increase your overall income, which banks use to determine your credit limit.
Take Control of Tuition Payments
Having your parents wire tuition money to your school through you can demonstrate a history of large, on-time payments. This can lead to a higher credit limit, as it showcases your ability to manage significant expenses responsibly.
Choose Cards with Rewards
Credit cards with cash back incentives and rewards systems can encourage responsible card use and help build credit history. Find a card that aligns with your lifestyle, such as one offering cash back for dining or entertainment expenses.
Campus Jobs that Pay Off
Working part-time jobs in college can be challenging, but some opportunities offer valuable benefits. Consider becoming a teaching assistant, desk attendant, or telefund worker to develop skills, build your resume, and increase your income.
Teaching Assistant: A Valuable Opportunity
As a teaching assistant, you’ll develop skills in condensing and explaining complex subjects, making you a more attractive candidate for internships and jobs. This role also provides flexible hours and the opportunity to build a strong relationship with your professor.
Desk Attendant: A Flexible and Convenient Option
Working as a desk attendant at your school’s fitness center, residence hall, or library offers flexible scheduling and the ability to complete homework during your shift. Although the pay may not be high, this job provides a steady income stream during busy semesters.
Telefund Worker: Developing Valuable Skills
As a telefund worker, you’ll develop negotiation and conversational skills while learning about various career paths from alumni. Although this job may be emotionally taxing, the high pay makes it a valuable opportunity.
By implementing these strategies, you can increase your credit score and limit, gaining more financial independence and flexibility as a college student.
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