FICO Credit Scores & the College Student

One of the most important aspects to financial security involves maintaining an appropriate credit score. For many college students, credit cards have become a way to extend not only the finances associated with daily living but also a method in which to maintain entertainment, often to an extreme. With many college students obtaining student loans, it is crucial to avoid surmounting credit card debt as this will only lead to a double whammy once college life is over. Teaching children, especially during high school, the concept of credit scoring will work to ensure more educated financial decisions are made in college.

Credit scores, known as FICO scores, are scoring mechanisms provided by the three major, national credit bureaus. While each credit bureau will provide a difference FICO credit score, the average of these scores is a good indicator of the credit worthiness of a college student. While many college students rarely have established credit scores by the time they reach college, credit card companies will commonly prey upon the student's lack of knowledge resulting in the student carrying a large credit card debt. As a parent, educating the student in FICO scoring is crucial to making wise investment and financial decisions.

The first lesson in FICO credit scoring, in teaching students, is the timing of scores. With the three credit bureaus providing varying scores the one item they do have in common is the need to establish at least six months of credit history before the FICO credit score is established. As credit scores are crucial to the independence of the college student, obtaining one credit card, with a low dollar limit, will provide the college student with an opportunity to establish credit and create a FICO credit score. However, ensuring the college student only used the card for necessities will be challenging.