Credit for a Living
College is the stepping-stone to the “real-world” that commonly gives students their first taste of independence. Although it may not have hit the mind of some students yet, establishing a line of credit is a vital part of that independence. This is a great time to learn how to establish a healthy line of credit that will benefit and guide you to better financial decisions. Without the knowledge and understanding of credit, mistakes can only lead to a costly path in the near future.
People often realize the importance of credit history at a point in life when it is most needed. That is why starting off on the right path, with a good credit score, can be an important attribute for any individual to have. Not to get confused, …show more content…
Apart from making credit card and loan payments on-time, students should also pay more than the minimum monthly payment, avoid overdrafts, and stick to a monthly budget. Keeping a good credit consist of keeping a proper balance between what you earn and what you spend. Budgeting your expenses is a great way of prioritizing spending and management of your money. Planning and monitoring your budget will help identify expenditures and what expenses can be charged to your credit card. One important rule to having a credit card is to only charge what you can afford to pay. Making excessive purchases is an easy way to build debt and increase interest rates. How you manage to build credit can set you up for financial success or begin a costly path of paying off debts. Luckily enough, college students are already on a path than can help them establish good credit. Student loans are easily a great source for building credit as long as payments are made on time. Establishing and maintaining a good credit isn’t hard, it’s just being responsible about your decisions that will affect your line of credit. Carelessness with your decisions will only cost you money needed for other important
College is the stepping-stone to the “real-world” that commonly gives students their first taste of independence. Although it may not have hit the mind of some students yet, establishing a line of credit is a vital part of that independence. This is a great time to learn how to establish a healthy line of credit that will benefit and guide you to better financial decisions. Without the knowledge and understanding of credit, mistakes can only lead to a costly path in the near future.
People often realize the importance of credit history at a point in life when it is most needed. That is why starting off on the right path, with a good credit score, can be an important attribute for any individual to have. Not to get confused, …show more content…
Apart from making credit card and loan payments on-time, students should also pay more than the minimum monthly payment, avoid overdrafts, and stick to a monthly budget. Keeping a good credit consist of keeping a proper balance between what you earn and what you spend. Budgeting your expenses is a great way of prioritizing spending and management of your money. Planning and monitoring your budget will help identify expenditures and what expenses can be charged to your credit card. One important rule to having a credit card is to only charge what you can afford to pay. Making excessive purchases is an easy way to build debt and increase interest rates. How you manage to build credit can set you up for financial success or begin a costly path of paying off debts. Luckily enough, college students are already on a path than can help them establish good credit. Student loans are easily a great source for building credit as long as payments are made on time. Establishing and maintaining a good credit isn’t hard, it’s just being responsible about your decisions that will affect your line of credit. Carelessness with your decisions will only cost you money needed for other important