Credit scores & graduating
Credit scores and graduating
Building good credit habits early can help you get established quickly.
Establishing good credit can help with life after graduation
Your credit may have a significant impact on life after college. Financial goals may depend on your credit report—full history of your accounts plus a credit score—distilled into a range from poor to excellent. Monitoring your credit may be a good first step toward financial freedom.
Credit may affect certain goals:
Getting a job
Employers may access graduates’ credit reports—but not credit scores—to check for red flags.
Renting an apartment
Some landlords may factor in your credit report when considering a rental application.
Purchasing a home
Mortgage lenders may review your credit score and report to decide home loan qualifications.
Buying a car
A credit score and report may be reviewed for auto loan approval and for determining a rate.
Post-Graduation Debt
Managing student loans
If you’re like many college students and recent graduates in the U.S., managing federal or private student loans could be your first chance to establish a history with the credit bureaus and build a solid foundation for the future. Getting in the habit of paying down your loans with on-time installments may be a wise strategy for increasing your credit score. Obtaining a free credit report from CreditWise may help you track how your financial decisions affect your credit standing.
Building credit after college
Having a plan for your credit score may help you reach your financial goals faster. CreditWise allows you to monitor your credit and provides personalized tips to help you improve your score, even if you are just starting out. Plus, CreditWise provides you with a FICO® Score1—which is what 90% of today's top lenders user.2
Here are a few ways you can begin reaching your goals:
Monitor credit
Start vigilant—access your TransUnion® credit report and get alerts when important changes hit your TransUnion or Experian® credit reports.3
Authorized User
Parents and guardians may help you establish credit by adding you as an authorized user.
Educate yourself
Play around with the Credit Score Simulator to get a good sense of how different financial decisions may impact your FICO Score 8.4
Apply for credit
New applications may result in hard credit inquiries, but opening and utilizing credit with responsible behavior can help you build credit.
FREQUENTLY ASKED QUESTIONS
Will refinancing my student loans after graduation affect my credit score?
While requirements vary from lender to lender, you may have fewer options for refinancing if your credit is considered poor. Typically, a lower score means higher interest rates for refinancing student loans.
Can I refinance my student loans after graduation with bad credit?
Refinancing often requires a "hard pull" credit check which may negatively impact your credit score, but on-time payments and good management of credit accounts may help you build credit. It could be wise to work with your lenders to understand potential impacts on your credit when making refinancing decisions.
How will paying off my student loans after I graduate impact my credit?
Individual results may vary, but in most cases, paying one off a student loan may cause a minor, temporary dip in your credit score since student loans may impact your account age and credit mix. Your score will likely bounce back as long as you maintain timely payments with all of your credit accounts.
Related Resources
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