How College Students Can Build Credit, According to WECT

Avoiding the Hidden Costs of Student Credit Missteps

Managing money rarely features in official college curricula. Yet, mismanaging fees or handling credit improperly can inflict financial damage that sets back a student’s credit-building efforts well before their career begins, as noted in data from WalletHub cited by WECT. John Kiernan, managing editor at WalletHub, outlined specific financial tools available to young adults heading to campus.

Building credit does not require carrying a balance or making active purchases. Kiernan explained that students can secure a card with no annual fee, place it in a wallet for emergencies, and never draw a balance while still receiving credit for on-time payments every month. This practice generates a monthly influx of positive data to credit reports, laying a financial foundation for future milestones.

“If you get a $0 annual fee card and put it in your wallet for emergencies and never use it, you’ll still get credit for paying on time every month because you don’t have a balance,” Kiernan said, as reported by WECT.

Automating Payments to Protect Young Credit Scores

Once students secure their first paycheck, establishing automatic payments removes the risk of missed due dates. Missing payment deadlines represents one of the easiest ways to damage an emerging credit score.

Verifying Monthly Credit Bureau Reporting

Students must confirm that any card they select reports account activity to major credit bureaus on a monthly basis. This institutional reporting forms the actual credit history required later in life for renting an apartment or qualifying for a loan.

WalletHub Ranks Student Credit Cards

WalletHub maintains curated rankings of student credit cards to help applicants choose.