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Your Weekly Advisor Update

A Note From Clint:

Congrats Class of 2023! You’ve earned your diplomas and deserve to be celebrated.

I’ll never forget the date of my own college commencement because my wedding was exactly one month later.

Fast forward another year, and my wife and I had saved up enough money for a mortgage down payment. Unfortunately, we left our broker appointment disappointed because we learned that our lack of credit history made us ineligible for a home loan.

While we immediately made a credit-building plan, our lack of forethought delayed our homebuying schedule by an entire year. And even if you’re not planning to buy a home, your credit can come into play for other things you may need after college, such as renting an apartment or buying a car. To help you avoid a similar situation, here are ways to build credit sooner rather than later.

Cheers,

Clint

Clint Proctor

       Lead Editor

    Credit Cards and       Travel Rewards

Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.

How to Build Credit After Graduating College 

Although I graduated from college with no credit history, that’s not the case for everyone. There are a variety of ways that students can build credit during their college years such as making payments on student loans (yes, even while you’re in school) or using a student credit card responsibly. You may already be an authorized user on your parents’ credit card.

While some students graduate with good or excellent credit, many are still building positive credit history—and that’s okay! You can see exactly where you stand by checking your credit scores for free with a credit scoring website like Credit Karma or Mint. Many banks, lenders and credit card issuers provide free credit scores as well.

There are two easy ways to start building credit. The first is to begin making on-time payments on your student loans; the second, which can be risky, is to ask a trusted family member to add you as an authorized user on their existing credit card account. (Note: Whether this move will help or hurt your credit scores will be dependent upon the account owner behaving responsibly, including making all of their payments on time—so proceed wisely.)

But what if you don’t have any student loans and becoming an authorized user isn’t an option? You may want to consider applying for a beginner credit card or a secured card. Learn how these cards work and what else college grads need to know about credit cards.

Here’s what else you should know
this week:

Best Credit Cards For Recent College Graduates In May 2023 

The best credit cards for college graduates come with rewards and the chance to build credit over time. Read our comprehensive ranking and the top eight offers that made the cut.

Does Being An Authorized User Build Credit?   

How does being an authorized user affect your credit and when does it make sense to become one?

How Long Does It Take To Build Credit?  

Based on FICO, you can generate a credit score after six months of reported payment history. Here's how to build credit for the first time. 

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