[Y]ou don’t have much money and any you do have goes towards paying your college expenses. You may wonder why a credit score even matters at this stage of your life. If you haven’t given it much thought before, you need to become aware of it now.
Your Future Depends On It
Your credit rating holds the key to a lot in your future, starting with your job. Many employers perform credit checks before they hire employees. Even though they don’t see your actual score, they will see how you’ve handled credit in the past. If you apply for a position where you will be involved with money, you can expect this kind of background check.
Landlords are also checking credit histories, so you might have trouble getting an apartment without it. While no credit may be somewhat better than bad credit, it also shows that you don’t have a lot of experience with money or at least with credit.
At some point, you may need a vehicle to get to work. You will have a more difficult time getting an auto loan if you don’t have a credit history. Even if you qualify for one, the terms are likely to not be as good with higher interest rates.
You might even have to get your parents to co-sign for you on a loan or even an apartment. If you want to feel like a real adult, you may want to work on building your credit history while you’re still in college. Apply for a credit card with a low balance. A secured card is even one option. Just be responsible, pay off the balance if you use it and work on showing a positive credit history. It will take about six months for an account to show up on your credit history, so start early and you can be ahead of the game.
[M]illions of people use credit cards every year. They hand it over to pay for purchases or go online with a card number to buy what they want. They seldom stop to think about security and how credit cards differ in protecting your identity and money. How to Protect Your Identity Make sure you sign […]
[A]ll people are not created equal, at least not when getting a mortgage. A person at a traditional job will generally have an easier time getting approved for a home loan than someone who is self-employed. What many who have taken the leap to being independent contractors, freelancers or self-employed don’t know is that getting […]
[T]here are so many credit card offers available today, it can be difficult to select the best one for yourself. You may get overwhelmed at the offers that come in the mail or your email. You only want one or a few cards, so you don’t want to pick the wrong one. Here are some […]
[W]hen you’re struggling to pay bills, it can seem impossible to get ahead. Even if you have made it your goal to start saving money or open a savings account, it may seem unachievable if you can barely make ends meet. However, it is essential to create an emergency fund even when it seems like […]
[Y]ou hear all of the time about teaching lessons to kids on money, but not as much specifically on credit. However, credit is just as much a fact of life in today’s society as other financial tools, and kids should start learning early about it. What Credit Is The first lesson for kids is to […]
[W]hen reading about credit or even viewing your credit report, you may stumble upon some terms you’re not familiar with. It’s important to understand these terms, so you can get a complete picture of your credit health. FICO score – this is a credit score that is used by all three national credit reporting agencies. […]
[I]t takes time to organize and track your budget. Most people don’t have that much time to sit at home in front of the computer or a budgeting book. Thanks to the numerous budgeting apps available, you can work on your budget from anywhere. Here are three to consider. Mint One of the most popular […]