Business & Finance Personal Finance

The Importance of Establishing and Maintaining Good Credit During College

    Independence

    • As a college age adult, beginning to create good credit is an aspect of life you can control. Your credit can be completely your own, a positive act of independence. You can hold a single major credit card and request a low limit that does not tempt you to overspend. You can shy away from cash advances, knowing that credit institutions usually charge more for them than they charge for purchases. You can avoid co-signing for anyone else on a major purchase such as a car, knowing that if the person for whom you co-signed defaults on the loan, you are obligated for the outstanding balance. You can monitor your own credit and review credit reports once a year, knowing that only you can challenge false negative information and make sure it is removed.

    Preparation for Future Financial Life

    • Credit can be a valuable element in a mix of financial tools. As a student, you may have savings from earnings or gifts, savings you manage and only diminish in times of unusual need. You may have a checking account with a debit card for access. Restraining from overdrawing a debit account and keeping some cash on hand is another financial management technique that leads to good credit. By keeping a watchful eye on how much you have on hand, how much credit you apply to, how much you can back and how quickly you can pay it in full, you establish patterns of behavior that can guide you toward a satisfying financial life.

    Help Land a Job and Place to Live

    • Having good credit can boost your employment prospects. Prospective employers are likely to review the credit history of job applicants as a part of their routine screening before offering employment. Your established willingness and commitment to honor debt obligations provides a gauge for the employer on your personal integrity. Landlords, too, may ask for information from potential renters and check their credit. Your good credit report indicates that you are likely to pay rent reliably, and it may also serve as a different indicator. The self respect and attention to detail required to maintain good credit may indicate to the landlord that you will be a good candidate to take proper care of his valuable property.

    Gain Financial Advantages

    • Established good credit offers yet another advantage. People who have good credit are often the recipients of preferred-loan interest rates and preferred rates on their automobile and home insurance. Conversely, people with poor credit have difficulty qualifying or are unable to qualify for loans. When they do receive a loan, they are very likely to pay a higher annual percentage rate on their loan contract. In effect, bad credit costs them money, the freedom to bargain for the most advantageous deal can cost them their freedom of choice.

SHARE
RELATED POSTS on "Business & Finance"
Ways to Build Credit After Bankruptcy
Ways to Build Credit After Bankruptcy
Does Applying for a Mortgage Affect Your Credit Score?
Does Applying for a Mortgage Affect Your Credit Score?
The Novice Investor’S Million Dollar Question: Book a Fixed Deposit or Open a Demat Account?
The Novice Investor’S Million Dollar Question: Book a Fixed Deposit or Open a Demat Account?
Journalism Graduate Scholarships
Journalism Graduate Scholarships
401(k) Roll Over Rules
401(k) Roll Over Rules
Is Social Security Counted Towards a Parent's Income?
Is Social Security Counted Towards a Parent's Income?
Is an IRA Subject to Estate Tax?
Is an IRA Subject to Estate Tax?
Group Medical Insurance
Group Medical Insurance
How to Create a Bar Chart Online
How to Create a Bar Chart Online
Illinois Grants for Reading and Writing in St. Clair County
Illinois Grants for Reading and Writing in St. Clair County
How to Build Credit From Scratch Fast
How to Build Credit From Scratch Fast
Can I Be Responsible For Someone Else's Debt?
Can I Be Responsible For Someone Else's Debt?
Financial Statement Functions
Financial Statement Functions
How to Split an IRA in a Divorce
How to Split an IRA in a Divorce
A Few Investing Tips and Insight on the Benefits of Employing Research Process
A Few Investing Tips and Insight on the Benefits of Employing Research Process
How to Tell If a Bank Account Is Active & Has Funds Available
How to Tell If a Bank Account Is Active & Has Funds Available
Tax Penalties for Early IRA Distributions
Tax Penalties for Early IRA Distributions
Salary for an Associate Dean of Law Library Services
Salary for an Associate Dean of Law Library Services
How to Stop an Auto Repo
How to Stop an Auto Repo
Do I Need to File for an Unemployment Extension?
Do I Need to File for an Unemployment Extension?
Traditional IRA 70 1/2 Withdrawal Rules
Traditional IRA 70 1/2 Withdrawal Rules
A Successful Retirement With Self Managed Super Funds and Property Investments
A Successful Retirement With Self Managed Super Funds and Property Investments
Creative Ways to Do a Character Analysis
Creative Ways to Do a Character Analysis
How to Transfer a 403(b) to an IRA
How to Transfer a 403(b) to an IRA
How to Clip and Organize Coupons
How to Clip and Organize Coupons

Leave Your Reply

*