I’m graduating with one thing most college students don't have yet — a good credit score

I will wear a cap, a gown and a good credit score when I walk across the stage in May 2023.

The average college student has a credit score of 630. College students are less likely to be approved for a mortgage, car loan or credit line due to that. They will pay higher interest rates if they are approved.

I didn't know why my mother added me to her retail credit card when I was a high school student. She said she would thank me later. I was told that I would need a co-signer when I applied for my first apartment. I was told that my credit history was sufficient and that my mom could no longer co-sign for me. Good credit was revealed to me at that time.

I have been working on my credit for three and a half years. I want to thank my mother for the head start.

Make a habit of paying bills on time

I work one to two hourly wage jobs at a time at some points, but autopay is not something that I can confidently enroll in due to not having consistent income. I knew I had to do something to keep myself organized after I noticed an increase in financial obligations.

I created a spreadsheet that listed all of my financial obligations with a due date that was at least five days earlier than the actual due date. I check my spreadsheet at the end of the month to see how I can stretch my money. It is much easier for me to pay my bills on time with all of my due dates in one place.

I have established a good habit of paying my bills on time.

Your credit score is dependent on your payment history. Paying your bills on time is a must. Sometimes you can't pay your credit cards due to financial hardship. Minimum payment is a good practice. A 30-day grace period is usually extended by credit card companies. You can call and request a onetime late payment forgiveness, which is done on a case-by-case basis, if there is a late payment. There is a good payment history here.

The hassle of figuring out how to save your credit score is something you don't want to do.

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Keep your credit utilization low

Whenever I use my credit card, I want to have a plan for paying it off. I went to dinner with my friends. We were told at the end of the meal that we had to pay with one card. I used my Wells Fargo Cash Back College Card to make the payment. After everyone sent me their portion of the bill, I was able to pay my credit card balance back down and keep my utilization rate low.

The Points Guy collected the information for the Wells Fargo Cash Back College card. The card issuer did not review or provide the card details on this page.

A credit utilization rate is the amount of credit you use divided by the amount of credit you have. My credit utilization rate is 20% if I have a total credit limit of $5,000 and a balance of $1,000. It is recommended that you keep your credit utilization under 30%. If you have a low credit utilization, you are doing a good job of managing your finances. If you want to add more credit lines, it can be a good sign.

It is possible to request a credit limit increase from your issuer in order to lower your utilization rate if you are overspending. Paying your credit card balance in full monthly before the due date can increase your credit score and eliminate accruing interest.

Always keep your oldest credit card open

15% of your credit score can be attributed to the length of your credit card. This doesn't mean that if you open a credit card less than a year ago, you will have a great credit score and high approval odds. You will most likely need someone to co-sign for you.

Financial assets such as your first apartment, first mortgage or even rewards credit card are dependent on the length of your credit. If you have a longer credit history showing on-time payments, you are less risky to the lender than if you have a shorter credit history.

I have under four years of membership on my credit card. It's important to have at least five years of good credit history. The higher your score is the longer you have been in it.

Store credit cards are a bad idea if you choose your first card. I was approved for my Wells Fargo Cash Back College Card because I was an authorized user on my mother's Dillards card. With both credit cards being in good standing, I would have to think long and hard about closing them, as it could affect my credit history and score.

Bottom line

I am still learning about finances. I have placed myself in a good position due to my payment history and low credit utilization. I feel better about my approval odds. I'm looking at a Capital One credit card that will allow me to take a dream vacation to Indonesia with points and miles.

College students who are about to open their first college card should research ways to use their card safely. It's easy to get into debt and harder to get out of it. Establish an awareness of the basics of credit and your financial goals before opening a credit card.