Author Topic: Best Way for College Student to Build Credit in 2025  (Read 676 times)

FIRE@50

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Best Way for College Student to Build Credit in 2025
« on: May 28, 2025, 04:14:09 PM »
My cousin is in his second year of college and wants to start building his credit. Is getting a credit card still the best/easiest way to do that? Will he be forced to get a secured card? Any card recommendations?

Also, would adding him as an AU to one of my cards be a good idea? Which banks are best at reporting AU's to the credit bureaus? How long would it take to actually impact his credit?

Thanks!

Laura33

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Re: Best Way for College Student to Build Credit in 2025
« Reply #1 on: May 29, 2025, 09:35:16 AM »
A secured card is the best bet at this age.  It's also not a bad thing for him -- if he isn't used to having a credit card, he might lose his mind at the "free money" for a bit (or, say, make poor spending choices while under the influence/out with friends/etc. -- he's a kid, he's going to be stupid once in a while), and so having a secured card will limit any potential damage while he's learning to use this new power.

Be careful about adding him as an authorized user.  I understand (though do not know first-hand) that the CC companies are cracking down on how much of a boost this will provide to his credit history.  But what I do know first-hand is two things:

1.  You will be responsible if he loses his mind (see first point above); and

2.  If he's on your CC, your credit limit/balance is imputed to him, which will affect his ability to get his own CC.  My DD had a job post-college making around $80K, with zero debt, no negative history, etc.  She couldn't get anything but a secured card with a $500 credit limit.  Why?  She was a AU on one of our CCs, and we have a high credit limit, and the CC companies declared that she already had too much credit available for her salary and refused to extend additional credit to her.  (Ironically, that means she has to stay on our card, because a secured card with a $500 credit limit is insufficient to cover any true emergencies, which is precisely why she wanted her own CC in the first place).

Spiffy

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Re: Best Way for College Student to Build Credit in 2025
« Reply #2 on: May 29, 2025, 02:39:04 PM »
I put the utilities for my son's collage apartment in his name, even though I pay the bill. I set it up auto pay, so he now has a 3 year record of no missed payments and an excellent credit score.

FIRE@50

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Re: Best Way for College Student to Build Credit in 2025
« Reply #3 on: May 30, 2025, 10:42:27 AM »
These are great responses. Thanks!

Monkey stache

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Re: Best Way for College Student to Build Credit in 2025
« Reply #4 on: May 30, 2025, 06:57:55 PM »
He could get a "crebit" card which is a debit card that builds credit: https://www.experian.com/blogs/ask-experian/how-debit-credit-hybrid-cards-can-help-build-credit/