Start Building Credit as a Renter
Money is a topic that no one enjoys talking about, especially college students. It can quickly stress you out and ruin your day. Instead, you would much rather just choose not to think about it and hope it works itself out. However, this is not going to end well. Now that you have moved out, you have real financial responsibilities and important payments that need to be paid regularly. Credit scores are also something you will begin to become aware of. If you do not have a credit history or your credit is poor, your search for TAMU housing may be affected.
Credit Tips for Students Renting in College Station, TX
Importance of Credit Scores
Your credit score acts as a record for how responsible you have been in the past in regards to your finances. When you want to rent a student apartment, buy a car or get a loan, they will check your credit score. If you have never opened a credit card, you do not have a credit history. Without a credit history, these businesses will not have any proof that you will pay your bills on time. A low credit score means that you did not pay your bills on time. This can also be greatly impacted if you go into foreclosure or declare bankruptcy, but this is most likely not the position that most college students find themselves in. However, if you are always late paying off your credit card, your low credit score will be a warning sign to landlords. Finding apartments in College Station will then be much more difficult, but may still be possible. You may need to find a guarantor (cosigner), pay more upfront or prove that you have improved throughout the last couple of years.
How to Increase and Maintain Credit
The first step in increasing or beginning a credit score is to open a credit card. You may want to start with a secured credit card. You deposit a certain amount on it and then you spend the money from there. Not all banks provide this option but it is a useful tool to teach you not to spend money that you do not possess. You may also want to consider automatic payments. This system will automatically take money from your bank account to pay off your credit card so that you are never late on payments. However, this can be dangerous if you ever spend more than you actually have so you should keep an eye on it. The most effective and simple way to increase and maintain your score is to consistently pay your bills on time throughout college and life. If you do, you will not have a problem getting student housing in College Station.
Building Your Credit Score in College
You do not need to wait until you have a family to begin becoming financially responsible. In fact, it is vital that you begin as soon as possible so that you will not have any problems when you are seeking luxury apartments in College Station. Open a credit card today and regularly pay your bills and you will soon have quite a respectable credit score that you will not have to worry about.