West Bank Logo
West Bank Logo

3 Steps to Easily Build Positive Credit While in School

As new college students across the nation head back to school, they face a new reality of financial responsibility. Living away from home comes with many temptations, but indulging too much can do serious harm to a student’s credit history.

“It’s easy for incoming freshmen to become overwhelmed with the options available to them when they first live away from home,” said Zach Stubbs, Retail Vice President.  “This is a good time to start thinking about credit and learning how to use it responsibly, which will prove very beneficial for them in the future.”

3 steps to positive credit

All high school graduates should – by this time – have a checking and savings account. Maintaining positive balances in those accounts is the first thing students can do to start building credibility. Doing so can help them develop a positive relationship with a bank, so the bank will see less risk in lending money to them in the future. There is much more that new college students can do to start establish a positive credit history:

  1. Apply for a credit card. There are many options available to choose from when it comes to credit cards. New students should look for a card without an annual fee and a low interest rate. Many cards also offer features like cash back rewards. Students should research these options to choose a credit card that will be the right fit.
  2. Use the credit card – RESPONSIBLY. Credit cannot be established if credit is not used. Making a few purchases each month can help create a history of credit use. It is important, however, that students not charge more than they can afford to pay off each month.
  3. Pay balances on time. Once a student is approved for a credit card and starts using that card, it’s time for the most important step. Paying off balances on time will create a positive credit history, showing that the student is able to manage credit wisely.

Want to learn more?

Contact us at 515-222-2300 or info@westbankstrong.com with questions about credit cards and what options West Bank can offer.

These tips are provided by the Iowa Bankers Association (IBA), representing banks and thrifts in the state. The IBA serves it members by providing legislative advocacy, training, regulatory compliance and other services designed to enhance the ability of banks to serve their communities.  Learn more at www.iowabankers.com.

Share This Article


Account Login

Account Login