Whether you’re a student looking for an alternative to student loans or just starting out with little to no credit history, trying to build credit using rewards credit cards can be difficult. Not only is it important to find a credit card which benefits you the most, but it is equally important at this crucial time to carefully monitor spending in order to build that all-important initial history of good credit as a cornerstone of life-log financial planning.
How can students and young adults build credit using rewards credit cards?
Here are just a few example ways in which students and young adults can build credit using rewards credit cards:
- Even for those with absolutely zero credit history, it is important that you obtain and frequently monitor any changes in your credit score. This is not only a good habit to form for later in life, but by monitoring your credit score, you will get a idea of the real impact of your spending.
- There is probably a good chance that at least one of your parents has a decent looking credit score. Piggybacking on your parent’s good credit by having them co-sign for your first credit card is a good way of easily, safely, and quickly establishing a little bit of credit.
- There are a number of rewards credit cards which approve young adults who are starting out with little to no credit. Most department stores and gas companies have no problem approving cards for those without a credit history.
- For those just starting out, your best bet is to apply for a credit card at a store you frequent often, such as a favorite clothing store or major gas station near your house.
For students and young adults starting out with little to no credit, your first credit card is especially important to monitor and spend carefully in order to establish a long lasting history of good credit and build credit using rewards credit cards. Follow these tips and you’ll be well on your way to building a successful credit history that will last a lifetime.