<p>I'm a freshman at Cornell University, how do you build your credit history? Should I open credit card with one of the banks? Open checking account? </p>
<p>Get a credit card. If a bank won’t give you one, try a department store. Do not use it to splurge. Use it for purchases you would ordinarily pay by cash or check. Pay off your entire balance every month. Keep that up for a few years.</p>
<p>If you do start with a store card, you should qualify for a bank card after a year or so.</p>
<p>Never miss a payment. Never bounce a check. Always pay your traffic fines, insurance co-pays, and rent on time. Always pay any taxes you owe on time. If a creditor calls and wants their money, fix the problem ASAP.</p>
<p>My son was able to get a low limit credit card at a credit union. He just needed to have some income from a summer job. Your parents may have to be on the card with you.</p>
<p>If you get denied for a regular credit card, you would likely still qualify for a secured credit card. That’s how I’m starting my credit. </p>
<p>Secured cards work like this: You deposit a sum into a savings account, which constitutes your credit line. If you deposit $300, your credit limit is $300. The bank issues you the card, and the savings account is there to secure it. The minimum deposit is typically somewhere around $300. I can increase the limit on mine in $100 increments every month. </p>
<p>I’ve been using this card for about 3 months now, and my credit score has already gone up substantially. I make my daily purchases such as gas, food, random school supplies etc. with it, and I pay the balance -in full- every month. </p>
<p>Many cards don’t charge interest if you pay your balance in full every month. You definitely want to avoid interest charges.</p>
<p>You also want to avoid using more than 1/3 of the credit limit. For example, if you have a $300 limit, then only use $100 of it at any one time. One of the big components of a credit score is ‘available credit’ and they like the number to be under 1/3 used.</p>
<p>They also like to see a variety of credit types. A car loan (paid as agreed), revolving credit (credit card), loan (student loan). Of course they’d like a mortgage payment but that’s unrealistic for one just starting out. One kind of ‘loan’ they DON’T like to see is a ‘90 days same as cash’ or a payday loan. Don’t do those. Ever.</p>
<p>I’m doing the same thing as @comfortablycurt I got a secured card with a $300 credit limit, as mentioned above… I have heard not to use too much of the credit limit. How much are you putting on it? </p>
<p>My son applied for a credit card through his bank. He applied right after he started working this summer (so he had something to write down under employment and income). He wanted the card simply to start his credit history.</p>
<p>Ditto with the secured card. According to the manager at my bank, it’s really the only way to go if you don’t want your parent to be on a card and if you don’t make a lot of money. </p>
<p>Also, she told that that after a year of using the secured card and paying it all off, I can most likely qualify for a true credit card at my bank and then keep building up from there. I literally only use my card once a month for gas and then go online and pay it off the next day, so it’s rather easy, imo. You should look into it! </p>
<p>I got started in high school with the Discover IT student card with no prior credit history, so that might be a good place to start if you don’t want to put down the cash for a secured card. Since I got my It card I have also gotten a capital one quicksilver and an AMEX Blue Cash everyday. I am also a freshman in college so it is possible</p>
<p>I would also recommend the Discover IT student card. DS got one with no prior credit history. </p>
<p>@collegebound1111 If you wait a little longer, you should get a few offers in your mailbox at school. My daughter, who had no previous credit history before entering college, had a few offers for credit cards in her mailbox. I told her to apply for ONE, after checking out the interest rate. She received the card soon afterwards.</p>
<p>As others have said, don’t use more than 1/3 of your limit. That looks like overspending. I have a $300 limit currently, and I don’t spend more than $100 in a month. I can increase my limit in $100 increments every month. I plan to increase it several times until I have a $700-800 limit, and then get a different card. As the limit increases, I’ll start spending a bit more per month with the card, rather than limiting it to $100 a month on the card. </p>
<p>A number of companies have credit cards that are specifically aimed for college students, such as citibank. I’d find one with no annual fee. It is customary to have a full-time college student have their parent as a co-signer. As noted above, make a couple modest purchases every month for necessities and pay it off in full each month. </p>
<p>It really helps to have an automatic payment from your checking account to the credit card company each month to avoid painful late fees. </p>
<p>So I have got Discover Student card with my Dad as consignee. Will it help to get one or two more cards to build your credit history faster. If I can show I have low spending and I’m paying off full each month will more cards help? </p>
<p>With my son, I tried a gas card, and he did not get approved. We then got a secured card from our bank, after having that for 6 mos, he applied for a student discover card and was approved. I started my daughter off earlier, and added her to one of my visa during high school. She immediately qualified for a discover as soon as she entered college.</p>
<p>You don’t have a checking account? That might help since some accounts attach a cc with the checking account.</p>
<p>I added D as a authorized user to our oldest credit card. A few months later she applied for and got a Discover it card.</p>
<p>My bank (US bank) has a student credit card that I got this summer. I didn’t have any credit history, but I’ve had an account with the bank for 15 or so years and was approved starting with a $1,000 credit limit. Not sure what the best route to take from here is, though, besides just using the card and paying it off each month.</p>
<p>Try the Citi Bank Thank You Preferred for College Students. Very good card and they can earn points. Just need to show your are enrolled in college and hold a job when you apply or recent employment. </p>
<p>The part about not going up to the limit is frustrating. We got D1 a credit card when she started college. She is on expensive medications and we have a high deductible plan which means the meds cost close to full amount for at least a couple of months beginning in January until she meets deductible. The idea was that she could use the card to pay for meds those months. But that amount is close to the limit on the card and without income the bank won’t raise the limit. I don’t like the idea of her carrying $400 or more in cash to pay by cash either. Any ideas?</p>