College offers multiple opportunities to build credit

Students who want jobs, cell phones, apartments, cars or loans will also want credit history.

Credit history signals who has been trustworthy with money, so trying to get by without it can be difficult.

Those with good credit history have easier access to loans for cars and owning or renting homes.

A good credit score, the number that describes individual credit history, can also mean better rates on insurance. Even employers are looking into the credit history of applicants before they hire them.

"Your personal credit score is more or less your financial report card – it says a lot about how you handle your finances, and it can affect many aspects of your life," said Angela Kaipust, assistant vice president of Wells Fargo Regional Banking Communications – Nebraska, Iowa and Illinois.

Students need to keep a few things in mind while establishing credit history, primarily how to do it safely.

Students can build credit safely simply by being responsible, said Erin McDermott, program coordinator for the Student Money Management Center at the University of Nebraska-Lincoln. Living within one's means and paying bills on time are essential.

Having a credit card is one way to build credit, but students need to remember that credit cards are not toys.

"Don't choose a credit card for the rewards," McDermott said. "Read the fine print and look for the APR (annual percentage rate), the yearly rate charged for borrowing and other fees."

Kaipust said it's important to understand a purchase made with a credit card is a loan the buyer has to pay back.

Students don't have to use a credit card to build credit, McDermott said. Having financial aid and paying back student loans is another option.

She said another safety measure for building credit history is paying back what's owed on time. If possible, pay back the full amount, not the minimum payment.

bethanyknipp@

dailynebraskan.com