Due to the BAföG dependency and a generally rather low income, the creditworthiness of students in most cases is only moderate. This has far-reaching consequences. While getting a mobile phone application or changing the electricity provider usually does not cause any problems, a loan or a lease can look quite different. This article explains what students can do to improve their credit rating just in case.


In which cases does the credit rating matter?

The personal credit rating, or rather the credit score, describes the financial situation and financial accountability of a person. If the credit rating is high and in the green, everything is perfect. However, if the credit rating is in the yellow or even red range, it should be improved. The credit score is calculated from an extremely complex and largely unknown algorithm. In turn, this is based on a large number of factors that play a role in credit ratings. All factors are unknown, but four major factors. For a good creditworthiness you need 1) a secure and high enough income, 2) fixed costs, if possible, 3) no debt and 4) the reliable payment of bills. Is it about a reasonable apartment or the Looking for a personal loan , these points should be met. Otherwise, cancellations of the respective providers can be expected.
Freelance work besides studying

In order to gain a foothold in terms of credit rating in the first step, the income should be maximized. If you as a student BAföG refers, there are certain upper income limits, which are observed. But if you take everything you can get, it definitely pays off. Mini jobs and working student jobs are one way many students perceive. A freelance, independent work besides studying is the second. It distinguishes itself by the fact that the working hours can be divided freely and that one can already collect valuable experiences and contacts for the working life after the study. For example, students can find assignments on the Internet on platforms such as Freelance Junior , which are designed specifically for students and convey the jobs of the clients to them.
Then it goes to saving

If the steps to higher income are met, then it's time to minimize spending. This leaves more of the income, which has a positive effect on the credit rating. How much you can save as a student, shows, among other things, this PDF to the topic package study start . The fixed costs can be reduced to a minimum, by choosing cheap electricity and gas fares, reducing the cost of housing and looking closely at the insurance companies. The general expenses can also be reduced with a few tips and trickswhere students do not even have to do without nice things. If students pay their bills on time and reliably, nothing stands in the way of a much better credit rating. With that you get away in all sorts of things better.