College can form a whirlpool of responsibility in which you can be deeply immersed without even realizing it. Therefore, it can be hard to maintain a good credit score. You might even recognize the importance of maintaining a good credit score until you pay high interest rates for your mortgage or car loan.

Credit Score Ranges

Credit score ranges are put together as a guideline for individuals to identify the ideal credit score as they grow. Your creditors can set their terms and conditions while offering you a loan. But the following is a general outline to determine the ranges.

  • 720 or higher Outstanding or ideal credit score
  • 690 to 689= Good
  • 630-689= Average
  • 629 or below= Poor.

Your previous earning record and how you deal with other loans can also impact the creditor’s decision.

Is 700 a Good Credit Score for a Student?

A 700 credit score may not sound promising, but it’s considered fair for a college student if you are new at building credit. A credit score that falls anywhere between 670 to 739 is considered healthy. However, you must focus on it from the start and possess a good credit history.

How to Improve Credit Score?

Building and maintaining a good credit score throughout college promises financial success after graduation. Following are some tips to graduate with a high credit score.

  1. Avail of a Student Card
    You can apply for a student credit card with an easy application. Such cards offer various benefits, especially designed for students. Student cards can help you develop an ideal credit score if you pay your bills on time and have a small credit utilization percentage.
  2. Qualify as an Authorized User of a Credit Card
    The majority of the students don’t own a credit card. However, you can still become a user on your parent or guardian’s credit card. Whoever finds you trustworthy and lets you use their credit card. You won’t be responsible for paying the bills, but the usage will add to your credit score.
  3. Acquire a Credit Builder Loan
    Credit builder loans are a feasible choice for college students with strict financial constraints or poor credit history. When you apply for a credit builder loan, banks don’t let you keep the money till you are done paying off the loan. Your credit score increases with each payment you make.
  4. Pay Your Student Loans
    Paying off the debts early affects your payment history. For accruing interest, paying off interest can save you money in the long term. However, making these payments will enhance your credit score.

Credit Score Check

Students who have a bank account or credit card use digital apps. Such applications have associated features where they can calculate their credit score. The internet is brimming with various free websites and apps that allow credit score assessments and even guide you on how to do them effectively.

Bottom Line

A credit score is all about evaluating how well you have managed your finances in the past. As a college student, learning to foster a good credit score forms a good reputation in the eyes of creditors to help you overcome unpredictable financial challenges.

To find a loan program that suits your needs, contact us at Red Door Funding. Call us at (832-539-1099 for consultation.

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