 TITLE: How to Get Started With Credit in College CONTENT: Practice Good Credit Habits\n---------------------------\nAlthough building credit in college will open financial doors for you post-graduation, it has another benefit as well. It helps you establish good credit and money management habits, which are crucial to your financial health.\nHere's what to do:\n1.  Pay bills on time. Making on-time payments has a huge impact on your credit score and is one of the top factors in whether lenders will work with you. Even if you can only make your minimum payments each month, be sure to submit them by the due date. Better still, set up autopay on your accounts so you never have to worry about missing a payment or owing late fees.\n2.  Create a budget. Make a list of your monthly expenses and compare it to your income. If you spend more than you earn, look for ways to trim your expenses so you can always make your credit card or loan payments. In the best-case scenario, you'll pay off your entire balance each month so you don't accrue interest—but at least factor your minimum payments into the budget.  \n    If you're charging items such as groceries and gas, factor those expenses into your budget and use the money you've set aside for those to pay off your cards every month. Avoid the trap of charging items and only paying your minimums without knowing how much interest you're paying and how your balances are increasing.\n3.  Don't charge too many expenses. It can be tempting to put all of your expenses—books, groceries, phone bill and the like—on a credit card, especially if you earn rewards or cash back bonuses. But the more you charge, the higher your balance runs, making it more difficult to pay it down each month. High balances also raise your credit utilization ratio (how much of your credit you're using compared to your credit limits), which lowers your credit score.\n4.  Only apply for credit when you need it. Every time you apply for a credit card or loan, lenders will run a \"hard\" credit check, also known as a hard pull. These pulls appear on your credit report and may temporarily lower your score slightly. If lenders see too many pulls, they might think you're a high-risk borrower and deny your credit card or loan application.  \n    Limiting the number of accounts you have also keeps your own spending in check. When you're focused on just one or two cards or loans, you can avoid having several balances and paying high interest.\n5.  Ask for help. Budgeting and managing your money can be challenging when you're first starting out, so don't be afraid to ask for help. Your parents may be able to weigh in on your budget and offer some tips for trimming your spending. There are also lots of blogs, digital resources and online communities around budgeting and personal finance that can provide answers and guidance. END