If eventually owning your own home is a life goal of yours, it’s never too early to start planning. Even as a student, you can put the building blocks of your homeownership future into place.
Establishing a good credit history is key. When it comes time for you to get a mortgage from a bank, your credit history can make that process easier. The better your credit score, the better interest rate you can get from your mortgage lender. As a student, you can start building a good credit history in several ways.
If you haven’t already, open a bank account with both savings and checking. Use your debit card on this account responsibly, and save some of every paycheck you get from your part-time student job, or from birthday or holiday gifts of cash from your family. This can be the start of your down payment for your future home. Keep it up!
Once you are 18, take out a small loan from your bank for a 1-year period, but put the money into your account — don’t spend it. Use it to pay the monthly payments back on the loan. After the year is up and the loan is paid back, now you have an established history of paying back a loan!
Apply for a store or gas credit card and use it responsibly, paying it off monthly. This also helps establish you as a credit-worthy individual for the future.