 TITLE: How to Get Started With Credit in College CONTENT: Get a Credit-Builder Loan\n-------------------------\nA credit-builder loan not only helps you, well, build credit, but it also helps you establish savings. When you take out a credit-builder loan, you don't receive any money right away, the way you would with a traditional loan. Instead, a lender sets aside the loan amount—usually between $300 and $1,000—in a savings account. You pay monthly installments toward that amount until your \"repayments\" match the number in the savings account. Then you can withdraw the money, which can be really helpful for buying books, putting a security deposit on an apartment or saving a down payment for a new car.\nThe best part is, your lender will report your monthly payments to the three credit bureaus, so you can establish a good credit history while saving money. You will need to show proof of income to qualify for a credit-builder loan, so if you don't have a job, you may need to become an authorized user on an account or take out a secured credit card instead.\nThe key to making a credit-builder loan work for you is to request an amount that has manageable monthly installments. So, if you have a part-time job and only work a few hours a week, you may want to request $300. With a 12-month repayment period, you'll only owe $25 a month, which is fairly manageable. If you ask for a $1,000 loan, your payments will work out to about $83 a month—a pretty big jump.\nDifferent lenders offer varying repayment periods, but your goal with a credit-builder loan is to establish a history of on-time payments, so don't overburden yourself. Once you've reached a good credit score (aim for 670 or higher), you can qualify for credit cards and loans with higher limits. END