How to build your credit as a student in Canada? | Refresh Financial

Official blog of Refresh Financial

How to build your credit as a student in Canada?

building credit as a student

Building  good  credit  history  as a student  is one of the most important things you  can  do  for yourself.  When  you want to  buy a  car,  get  a personal loan  and  purchase  your first  home,  lenders will look at your credit  report. Start with finding the best student credit card to build credit. I know, it sounds like it’s all in the distant  future, but it takes time to build credit. And,  the best time to build your credit is when you’re still  a student. 

For instance, when you’re ready to  buy your first  carauto  lenders  will want to see your credit history and your  credit  score.  Without  a credit footprint, it is difficult to get the things you want.  So,  here  are a few pointers to guide you on the best way to safely build your credit score  and ensure that your education is meaningful. 

8 tips on how college students can build credit  

1. Choose the best student credit card to build credit

Different credit cards have their own unique perks and reward programs, so it’s important to find a student credit card that works for you. When you apply for a card,  the best option  is to find a card  that will help you spend money responsiblyThat way you're not always carrying a balancewhich  means  you’re  building a positive credit history.  

There are so many card options and many card issuers,  so how do you decide on the best student credit card? There are cards that offer  Scene  points for free movies, cashback on all your purchases and  much more. Choosing the right card as a student involves making sure you’re spending money responsibly and building your score. Try not to get distracted with all the other perks. There may be  hidden  or high fees associated with these offers. 

Instead, check out the  Refresh Cash Secured Card option. This option offers low-interest rates,  no  annual fee and reports your payment activities to  both Canadian  credit  bureaus  to  help  you build credit. 

2. Keep your credit utilization within range

A good  credit utilization ratio is less than 30 percent. This means using less than 30 percent of your credit limit. So, on a  card with a $1,000 limit, when you keep your balance below  $300  you're within the 30% credit utilization ratio. If  you  regularly  go above this,  it may negatively  impact your score  on your  credit  report. 

Learn more about  credit utilization  and how it impacts your score. 

3. Create a living budget

Create a budget and stick to it.  Make sure to make your card payments on time to avoid high-interest rates. Money may be a bit tight while you’re studying, remember to stay focused. Sacrifice now to ensure a healthy financial future.  Trust us, you’ll thank yourself later.

4. Look for financial opportunities at school 

Are you on a scholarship program? Have you researched and applied to see if you’re eligible? Grant money is a financial game-changer — it can help fund your schooling. Scholarships are available at most schools, and it’s worth the effort to see if you qualify. 

5. Search for a job

Did you know that some schools offer on-campus earning opportunities? If that’s not an option, usually the surrounding off-campus areas will offer part-time work for students. Finding a part-time job while going to college will help you have disposable income so you can spend and save money while building your  score.  

6. One credit card is plenty

Every time you apply for a credit card, your score will take a slight hit because of the hard credit inquiry to the two Canadian credit bureaus – this inquiry shows on your credit report and can  impact  your credit  report. Do your research before applying for any  financial  products and stick to just one card. Because we are recommending that you stick to one card make sure it's the best student card to build credit. There are lots of card options available with cashback offers, but they may have hidden fees and high-interest rates attached to them, so watch out!

It’s best to look for a credit card issuer  such as Refresh Financial  who  doesn’t  do a hard check  and also  offers a  credit building program. 

7. Use your student loan for essentials 

You need groceries, textbooks and a place to live. Remember, your loan is intended to cover what you need, and not what you want. Use your loan responsibly and pay it  back  on time.  

Focus on improving your score in college, so when you graduate, you have a lot of low-cost borrowing options 

8. Find ways to pay down your debt

Generally speaking, six  months after your final college semester is when it’s time to start paying back your student loan and any other debt.  

Check out this great article on  how to pay down your debts. It’s filled with helpful student debt advice. 

Learn more about the Refresh Cash Secured Credit Card  

The Refresh  Cash  Secured  Credit  Card  is one of the  best  ways to build good credit in college. It's easy to apply, has a low-interest  rate,  no annual or monthly fees and  helps you spend money responsibly  as you  build  your score. Plus, it has a paid add-on option that offers perks to over 600 retailers.  

The article was written by Shenaya  Sweetman, Content and Social Media Specialist at Refresh. 

Leave a Reply

Your email address will not be published. Required fields are marked *

*

+ 37 = 47

    What Canadians are saying about Refresh

    I would like to thank Refresh Financial for helping me get out of a bad spot. I never thought it was possible and almost gave up on things and then I saw Refresh Financial and and gave it a try. At first I was unsure of things but to see my credit score now makes me a believer in this program.

    – Aaron A

    “It hasn’t even been a year yet, possibly only 6-7 months, and my TransUnion score has gone up over 100 points. That was only the tip of the iceberg as recently I was able to get a consolidation loan from my bank that allowed me to move forward and make things easier for me. Talk about second chances!”

    – Angelica M

    “I am now in a position where I am able to obtain credit (just bought a brand-new car and refinanced my mortgage for a fantastic rate) and it took little to no time at all. I would 100% recommend Refresh to anyone looking to rebuild credit with as little hassle as possible.”

    – Cathy M

    “I had not heard of a company doing such a thing before someone suggested it to me and it made sense. I am not very good at saving money and Refresh Financial helped me. I have dealt with them for years now and never had a problem. The customer service is excellent and fast.”

    – Chris C

    Refresh helped me regain credit following a nasty divorce, which left me with a very poor rating. They were able to remarkably help me go from a 480 to a 600 score, in just over a year. Thank you Refresh!”

    – Deb K

    I have watched my credit score jump since being with Refresh and I have already recommended it to friends and family. Thank you for helping me build my credit faster for my future and my children’s future :)”

    – Heather T

    At first I was skeptical because I wasn’t getting funds upfront and had to make payments when I really needed the money. I’ve been in the program a year now and have noticed my credit has improved drastically!”

    – Irene L

    I have been a client of Refresh Financial for approximately 3 years. Since being a client they have improved my credit immensely. Definitely recommend this company to anybody that needs help re-establishing credit.”

    – Jason I

    “I recommend this program to anyone having credit issues. At the end of the agreement, your money is refunded to you. There were times I found myself short on cash and Refresh, with permission, used a portion of my money to clear up my arrears.”

    – Margaret L

    “I would like to thank Refresh Financial for their professionalism, great customer service and for helping get back to a better financial situation. I have always been treated with the utmost respect.”

    – Martine B

    Refresh Financial is an amazing program to help people get back on their feet. I was rock bottom with nowhere to turn. My credit was beyond poor. I would recommend them to anyone. If I can do it surely anyone else can.”

    – Matthew S

    “Great company to deal with for rebuilding credit, very simple process to get started. Good service if you ever have questions.”

    – Mike L

    This business truly cares about its clients. The customer service is always quick to return calls or emails. Their online portal functions very well so as a customer you are always updated as you progress with your loan.

    – Phil J

    “Refresh Financial has made us more aware of how to take care of our financial situation and be more responsible, and making payments on time is rewarding in the end for credit. Thank You sincerely.”

    – Rocky M.

    “Refresh financial is great!!! They boosted my credit score, helped me save money and helped my husband and I buy our house;) I was not only a number to them, they stayed in touch and helped me out along the way. Answered all my questions and concerns.”

    – Sara B

    “Refresh Financial had been exceptionally good to me! I’ve just been out on medical leave and they have accommodated me with my payments without hesitation!! I was in a really bad spot with my credit and they have helped me to try and correct it!! Bravo!”

    – Shannon B

    This company has been nothing but fantastic. They have gone above and beyond to help me. This program has given me the relief and peace of mind I need. I would certainly go back to them and give them names of people who could use this.”

    – Shirley K

    The financial services products are excellent for new immigrants, low-income earners and small business owners. Loans, savings and credit building all in one solution is a perfect fit to help with financial goals and stability.”

    – Soraya H

    “After successfully going through a credit rebuilding loan, I was able to use my built-up equity to purchase a newer vehicle and I have since been approved through a financial institution for a loan.”

    – Tanya W

    “I made some poor credit choices when I turned 18 and have always had this lingering thought of how am I ever going to better my score. Since being with Refresh I have realized that I took the right step towards bettering my future.”

    – Taylor B

    I’m so excited I’ve joined refresh! I’ve already seen a huge increase on my credit after the first month! The staff are a delight and make this so easy to understand. I strongly recommend Refresh Financial even if you have good credit this will give you a boost and you’re saving money with the reverse loan!”

    – Wayne B