The student media organization of California State University Northridge

Daily Sundial

The student media organization of California State University Northridge

Daily Sundial

The student media organization of California State University Northridge

Daily Sundial

Building Your Credit Early: Why It Matters in College


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As you kickstart college life with the independence you so longed for, your journey into financial self-help has also started. There may be too many numbers and matters to consider, but understanding the significance of building finances and credit early can help you survive and succeed down the money road.

It’s best to keep these reminders and insights with you so you’ll have some handy life hacks to help you reach your college goals and financial success.


The Importance of Building Your Credit Early

Future of Financial Independence

As early as college, building strong credit will lay the groundwork for your financial independence. It’s where you’ll be granted access to crucial opportunities like loan approvals, apartment rentals, and job applications. 

Of course, you need to have a source of income first to pave the way. In many universities, work opportunities in and out of campus are always available and waiting for you to explore. There are even student housing facilities in school where you can minimize your traveling expenses and maybe even rentals. This could be your stepping stone to navigate your financial journey, slowly but surely. 

After that, you need to start building a solid credit history by using your credit card in most needed situations only, keeping a tab on your daily purchases, and limiting your spending to what’s only necessary. 

All these are your simple yet effective preparations, so you’ll have a comfortable position in your adult life – financially. 


Long-Term Financial Health

When you embrace early credit or deposit-building habits in college, you’re not cultivating immediate stability, but you’re establishing your foundation for long-term financial prosperity. 

Also, your financial goals will be further enforced if you consider opening a Certificate of Deposit or COD account. With this account in your bank, you’ll be guaranteed a sure interest income on its maturity. Its fruits will later provide you with a stable foundation for your financial portfolio and will help enhance your overall financial security even before graduation.


Responsible Financial Management

It’s indeed a tough job to master responsible credit management while still young and during college. While it can enhance your financial literacy, you’re also laying down the groundwork for a life of fiscal prudence. This will start with crafting your daily budget and tracking unavoidable expenses, where you learn firsthand the importance of mindful spending.

For example, while it’s easy to swipe away your credit card, you use it sparingly and only when most needed, and you also pay off your balances promptly. It’s an example of responsible credit use and can instill in you discipline and a sense of financial responsibility. 

These are valuable tricks up your sleeve so you can face head-on the complexities of personal finance successfully in the future.


The Seed of Credit History

Once you open your first credit account in college, your credit history begins to take shape; whether for good or otherwise, it’s up to you. Think of it like you’re planting a seed for a bountiful financial future. 

By using your credit card or any credit account responsibly, like paying your bills on time and keeping low balances, you let that seed grow into a strong tree of positive credit. It’s a strong financial foundation that can set you up for smooth borrowing and lending down the road, like getting a car loan or even a mortgage when you’re ready to buy your own home.


 Access to Lower Interest Rates

When you start them right, you’ll most probably get them right. That’s how starting to build your credit early on a good footing can give you. As you build your dreams, like having your own home, a car, and some properties in the future, you’ll start them right with good credit.

If you have a good credit record from college onward, you might get a lower interest rate on your loans. This means you’ll pay less each month and over the life of the loan. It’s like getting a discount because you were financially responsible for a long time. 



All these preparations, like building your credit early and starting to save with high-earning deposits, matter in college because it’s where you start building a responsible and successful future. Learning these tricks early on can help you achieve not just your academic success but also financial stability. 

When you’ve built the habit of being financially responsible from college, then you’re well off to have a character that’s full of wisdom not only with money but with life’s hacks, as well. 


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