Back to Campus: A Crash Course in Building Credit

Financial Responsibility Becomes Part of the Semester
LAFAYETTE, La. — As college students across Louisiana return to campus, discussions around money management are becoming as important as class schedules and textbooks. For many, opening a credit card represents a step toward financial independence — a way to earn rewards points, airline miles, or cash-back bonuses. Yet financial experts caution that credit cards come with risks that can impact students’ futures.

“When used responsibly, a credit card can help establish credit history,” said Nic Simon, income partner at Darnall, Sikes & Frederick. “That credit history is vital for future decisions, like leasing an apartment or applying for a car loan.” Students like Josemiguel Martinez, a sophomore at the University of Louisiana at Lafayette, are already seeing the benefits. “I use it like I would cash, but pay it off immediately. It’s helped boost my credit score a lot,” he said.

Teaching Long-Term Habits
Building credit early can also foster smart budgeting habits, especially for students managing expenses independently for the first time. But experts stress that credit cards should not be seen as free money. Missed payments can damage credit scores and result in late fees, while high interest rates after promotional periods can quickly accumulate.

“Start building credit early, but treat it like a tool,” Simon advised. “Start with just one card, spend wisely, and always make payments on time.” For out-of-state students, credit unions may provide added security, better rates, and lower fees compared to larger banks.

Balancing Independence with Caution
For students like Autumn Istre, a UL Lafayette freshman, the decision to start with a credit card may come later. “I’d rather not be stressed about monthly payments right now,” she said. Still, financial experts agree that understanding credit early can provide a head start for responsible money management and long-term financial stability.

Prayer for Students
Lord, guide our students as they step into new responsibilities this school year. Grant them wisdom in handling their finances, diligence in their studies, and the courage to make decisions that honor You. May their choices today build a foundation for a future of integrity, stability, and purpose. Amen.