We hear about credit all the time. Credit cards? Auto loans? Everyone says it is incredibly important to build a good score early on. But what does it really mean? Is it even important right now? And how can we actually go about it without getting overwhelmed? 

It’s a confusing topic, and if you’re wondering how to build credit at 18, you definitely aren’t the only one on campus asking that question

What does it mean to build credit? Why is it important?

Credit is the ability to borrow money or access goods and services now, with the promise that we will pay for them later. At its core, building credit is simply proving that when we make that promise, we are responsible enough to pay the money back on time.

A credit score is essentially a grade that reflects this track record — it’s the number we are working to maintain and/or improve. It’s a three-digit number (usually ranging from 300 to 850) that grades our financial history based on things like paying bills on time, how long we’ve had credit, and how much we currently owe.

This score is incredibly important because it’s what gets looked at when we want to make large purchases. A good credit score is what landlords check when we try to rent off-campus apartments, and it’s what determines the interest rates we’ll get if we need a car loan after graduation. 

The (seemingly) tricky part is the classic catch-22: we usually need an established credit history to get approved for most credit in the first place. So how do we build credit?

How to get started building credit in college

We don’t need a full-time, post-grad salary to get the ball rolling. In fact, if we have student loans in our name, they are already showing up on our credit reports. But it is still a good idea to actively build credit in other ways because credit bureaus look for a strong “credit mix” — meaning they want to see that we can responsibly handle different types of debt. 

Here are a few ways we can actually start building a history while still in school and/or working part-time:

Look into student credit cards: Student cards, like those offered by Discover and Capital One, are unsecured cards designed specifically for college students who don’t have a credit score yet. Because they are for students, they are much easier to qualify for. The key is to just use it for small things,like grabbing coffee or paying for a streaming service, and pay the balance in full every single month, if possible.

Become an authorized user or a credit card: We can ask a trusted parent to add us as an authorized user on their credit card. We don’t even need our own physical card; as long as they pay their bill on time, their good habits will show up on our credit report and boost our score.

Try a secured credit card: If a student card isn’t an option, secured cards are a great backup. These require a small, refundable cash deposit upfront (usually around $200), which acts as the credit limit. It’s a safe way to prove we can borrow and repay responsibly.