Essence gu™
  • FASHION
    • FASHION NEWS
    • ACCESSORIES
    • FEATURES
    • FASHION WEEK
  • BEAUTY
    • SKIN
    • MAKEUP
    • HAIR
    • NAILS
  • ENTERTAINMENT
    • GU JAMS
    • FILM
    • TV
    • RADIO
    • BOOKS
    • TECH
    • SPORTS
  • WELLNESS
    • RELATIONSHIPS
    • SEX
    • HEALTH
    • FOOD
    • ASTROLOGY
  • BUSINESS
    • ENTREPRENEURSHIP
    • MONEY
    • CAREERS
    • ADVICE
  • FEEDBACK
    • NEWS
    • IDENTITY
    • ACTIVISM
    • POLITICS
    • LET’S TALK ABOUT IT
  • SHOPPING
    • FASHION
    • BEAUTY
    • TECH
    • LIFESTYLE
  • Videos
  • GU Summit 2024
    • GU Yard Tour
  • ESSENCE.COM
  • SUBSCRIBE TO NEWSLETTER
  • Privacy Policy
  • Terms of Service
  • Girls United Accessibility Statement

Subscribe to Trending News

Our weekly newsletter with the latest celebrity news, fashion updates, interviews and exclusive offers!

Your email is required.
Your email is in invalid format.
Confirm email is required.
Email did not match.
By clicking Subscribe Now, you agree to our Terms of Use and Privacy Policy. By supplying your cell phone number, you consent to receive marketing messages from ESSENCE. Please note that standard messaging rates apply from your provider.
  • FASHION
    • FASHION NEWS
    • ACCESSORIES
    • FEATURES
    • FASHION WEEK
  • BEAUTY
    • SKIN
    • MAKEUP
    • HAIR
    • NAILS
  • ENTERTAINMENT
    • GU JAMS
    • FILM
    • TV
    • RADIO
    • BOOKS
    • TECH
    • SPORTS
  • WELLNESS
    • RELATIONSHIPS
    • SEX
    • HEALTH
    • FOOD
    • ASTROLOGY
  • BUSINESS
    • ENTREPRENEURSHIP
    • MONEY
    • CAREERS
    • ADVICE
  • FEEDBACK
    • NEWS
    • IDENTITY
    • ACTIVISM
    • POLITICS
    • LET’S TALK ABOUT IT
  • SHOPPING
    • FASHION
    • BEAUTY
    • TECH
    • LIFESTYLE
  • Videos
  • GU Summit 2024
    • GU Yard Tour
  • ESSENCE.COM
  • SUBSCRIBE TO NEWSLETTER
Home • Money

Building Credit In College: Smart Steps For Financial Independence

Learn how college students can establish credit, manage bills, and create a budget to secure financial stability for the future.
Building Credit In College: Smart Steps For Financial Independence
By Fallon Brannon · Updated September 4, 2025

Going to college marks a significant milestone in a young person’s life, as they navigate the world of adulthood while shedding callow habits. For many adolescents, collegiate life is their first glimpse into adulthood, offering a four-year transitional period of newly acquired independence and self-discovery. However, the price tag of independence is costly. According to EBSCO, over 40 percent of American college students lack sufficient financial literacy skills, even though they took a personal finance course in high school. Additionally, high schools with predominantly Black and brown students are less likely to offer personal finance courses, widening the racial wealth gap.

Numerous studies have shown that many adults lack basic knowledge of personal finance requirements, including banking, savings, and credit. Establishing credit in college can strengthen a student’s financial future post-graduation, ensuring lenders, creditors, and landlords of financial credibility. Here are some effective approaches to building credit as a college student. 

Apply For A Student Credit Card

Owning a student credit card can be a great tool in establishing good credit habits, only if used responsibly. These unsecured credit cards are easier to obtain than standard credit cards, given that they are designed for students who have little to no credit history. Student credit cards can also help college students by reporting account activity to the three credit bureaus: Experian, Equifax, and TransUnion to track spending and credit history, per Bankrate.

Pay Bills On Time

Persistently paying bills on time is essential to maintaining a good credit score. According to Experian, payment history accounts for 35 percent of your FICO score range, ranging from 300 to 850. Payment history reflects timely bills, delayed payments, or any bankruptcies reported to credit bureaus. Additionally, overdue payments on credit card bills can accumulate late fees or increased interest rates for cardholders.

Create A Budget Plan

Utilize a budget plan to minimize unnecessary overspending and prevent debt accumulation. Budget plans are capable of highlighting spending patterns and financial priorities. To calculate a plan, determine total income and list out expenses to formulate an individualized strategy. Establishing good spending habits through budget maintenance can secure a student’s financial future throughout adulthood.

Add Rent Payments To Boost Credit Scores

Traditionally, rent payments do not automatically affect credit scores. However, enrolling in a rent-reporting service like Rental Kharma or Boom can help on-time payments for student renters to boost their credit scores. Furthermore, utility bills can be reflected in a credit history to strengthen financial credibility.

TOPICS:  college money
Summer Walker Is Giving Moms The Gift Of Relaxation This Mother’s Day

COMPANY
INFORMATION

OUR COMPANY
CONTACT US
JOB OPPORTUNITIES

SUBSCRIBE

NEWSLETTERS
DISCOVER MORE EVENTS
Follow Us

MORE ON
ESSENCE GU™

HOME
RELATIONSHIPS
BEAUTY
HAIR
FASHION
EVENTS

ESSENCE GU™ is part of ESSENCE Ventures

ESSENCE GU™ may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.

©2023 ESSENCE Ventures. All Rights Reserved. | Privacy Policy | Terms of Use | Essence.com Advertising Terms | Accessibility Statement