# 6 Ways to Help College Students Build Credit Practical steps to shape young adults' financial future. - **Source:** [Good Financial Cents®](https://brifing.si/source/83c26767-750a-41a3-9c5e-ca44a19b6128) - **Published:** 2024-02-12 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/798acfe5-747f-446a-8a29-cea7adb41990 ## Teach Credit Fundamentals Understanding core credit score factors is crucial for students. Payment history (35%) and credit utilization (30%) are the largest FICO score components. Experts recommend keeping utilization below 30%, ideally near 10%. This means maintaining balances under $100 per $1,000 of credit limit. ## Add as Authorized User Parents can accelerate credit history by adding students as authorized users on credit cards. This mirrors the parent's payment history onto the child's credit report. Not providing physical access reduces risk, while setting emergency-only spending rules adds control. ## Obtain a Secured Card Secured cards are ideal starters for credit-building, requiring refundable deposits. Cards like College Ave's Ambition Card offer cashback and introductory 0% APR. Maintaining low utilization (under 10%) and consistent payments builds scores rapidly without debt risks. ## Leverage Student Credit Cards Designed for undergraduates, student cards waive annual fees while offering rewards. However, high APRs make full monthly payments essential. When balances are paid promptly, these cards become powerful credit-building tools without interest costs. ## Include Bills in Credit Reports Services like Experian Boost incorporate utility, rent, and subscription payments into credit files at no cost. Paid alternatives like Rental Kharma specialize in rent reporting. These tools help establish payment history beyond traditional credit products. ## Make Student Loan Interest Payments Voluntary interest payments on federal loans during school accelerates credit history. For unsubsidized loans, this prevents interest capitalization—reducing long-term costs while building credit before graduation requirements kick in. ## Investing in Financial Foundations College years offer a prime window to establish credit. These strategies prepare students for post-graduation milestones like auto loans, apartment leases, and business financing. Early action maximizes the compounding benefits of lengthy credit histories. ## Sources covering this story - https://www.goodfinancialcents.com/6-ways-to-help-your-child-build-credit-during-college/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._