BY: Kendale King
For my blog post I want to talk about building credit and making sure that college students get the information they need to make sure that they don't make common mistakes due to ignorance. I was always aware of my financial position and made sure I stayed in good standing and didn't even want to get a credit card or any type of loan because I hate owing people money. That mindset is unacceptable, as I soon found out. Credit is needed for almost anything in the adult world. I wanted to buy a car, had the down payment they wanted and everything but they wanted my credit score to be in the 500's. I told the man I just started and I need to get a car loan in order to build it but the salesman didn't want to hear it. I couldn't rely on someone else's credit score because everyone I knew wasn't eligible. This is a problem and I want to make sure that the information is given to people while they are young and they can make their credit good from the start. So I've included some of my own tips to help as well as a few videos to help out.
- Don't apply for too many cards. Applying for too many new cards can damage your credit score. It's not as bad as missing payments, but it's still bad. Avoid opening a lot of store-branded credit cards just because it's a good deal at the time.
- Stay within your credit line. Don't go over your credit limit. This is a bad indicator that shows you are irresponsible.
- Ask a parent. It's going to be harder for us to get a credit card most times than getting it through our parents. This is a good method to start off and will reduce your interest.
- Apply for a secured card. I got me a secured credit card. I put a certain amount of money in a savings account and borrowed credit off of that money. This is a fail safe, so that just in case you don't have money to pay you can fall back on the original amount of money you put down when you got the card. BUT DON'T MAKE THAT A HABIT!
- Apply for a student credit card. I have heard of student credit cards designed just for us. They have benefits for us and advantages that other cards might not have.
- Don't spend more than you have: Now what I mean by this is that don't use your credit card unless you actually have the money. You can use your credit card to buy something because you know you have that money already. So buy something with a credit card and have money set aside to pay it off before you purchase it.
- Small purchases are still big purchases!: The credit bureau doesn't really care if you buy some gum or a diamond ring with the credit card just as long as you use your card and pay it off in the time allotted.
Hope this helps.
5 Tips to Build Your Credit, Improving your Credit Score
Building Good Credit For College Students
Very helpful post. Thanks
ReplyDeleteGreat article!!!!! Another idea is to become a piggybacker. A piggybacker is essentially a co-signer. You join someone that has already establish excellent credit. Their credit score will help build to build your credit score.
ReplyDeleteThis post is quite essential, thanks for your post.
ReplyDeletePerfect article. Everyone in this class needs to see this. Having great credit is key in life for example trying to get a house or car. Right now in college you really do not need a credit card, it will put you in debt.
ReplyDeleteI think credit is very good unless you use it incorrectly. If you're irresponsible, you can have bad credit and that can hurt you when applying for a job or buying a car. If you're responsible and pay back money you borrow on time then it came be very good when paying for products that are expensive.
ReplyDeleteThis post is very needed and relevant. Credit is such a huge, negative staple in the African-American race because it prevents us from receiving loans for our education due to our parents, it denies us a job that we are very much qualified for, and it keeps us in financial instability because we love to use credit. It is important for us as a race to be educated on the principles and tools that you have listed and provided as an aid because true implementation needs to take place in order for our race to drastically improve our financial standing amongst other races. It starts now in college, and we, the educated, are responsible for disseminating this knowledge for those coming behind us.
ReplyDeleteKendale great post, I believe that we need to be knowledgeable of our credit and to assist others to keep their credit in good standings. The more that we are aware of how financial institutions evaluate our ability to pay our debt, the more likely we are able to change stereotypes in small increments. Most institutions judge our character based on what they find in our credit report. Presently even the jobs that we apply to are evaluating our credit to determine if we are good stewards of our finances. As we develop as a society it will behoove us to be more cognizant what we spend our money on (supporting businesses that do not support our community).
ReplyDeleteKendale, thank you for this great post. It was very informative and insightful.
ReplyDeleteBuilding credit is one of the hardest processes to do in today's society. Once one has the previous history of bad credit, the recover process is a tedious and trying one. This article was very informative on how to precent that from every happening, well written.
ReplyDeleteGood article. I just purchased a MacBook off a payment plan with Apple that required me to sign up for the plan with a new credit card. I was accepted for the card, and made my payments back immediately afterwards just to make sure I wouldn't have to worry about it later. Now I just keep the card, but don't use it unless I need it
ReplyDeleteGood post. Great advice on how to create a solid credit score.
ReplyDeleteVery Informative ! Good post Kendale. Sustaining good credit is essential in these rough economic times. Students should evaluate their credit and finances as they get closer to graduation.
ReplyDeleteAs someone himself who is trying to find ways to start building a maintain a good credit score, this is very informative to my own endeavors. In today's time where you mostly everything you do based off your credit score these tips and tricks will help plenty.
ReplyDeleteYeah, this is very in depth. I've been building credit since Freshman year. My credit is not great, but it damn sure ain't bad. We should actually have a class on financial literacy. It makes sense since we're liberal arts.
ReplyDeletethis is definitely true, and i agree with Stanly saying that we should have a class on financial literacy.
ReplyDeleteThis was a good blog. I believe it is very essential to have good credit. A person credit is their name an to sustain a good name a person must have strong credit. I believe this is a subject that needs to be talked about more often an explained to teenagers before entering into college. Overall, this blog was great and I really enjoyed your point of views.
ReplyDeleteI agree with my fellow students. It is important to have great credit in today's world. Actually I was reading another article, and it stated that many companies(especially financial firms) will not hire someone if their credit is bad.
ReplyDeleteI believe this information is very helpful because college students need to start thinking about this issues now. If we are financially smart, it will set are kids up for the future as well.
ReplyDeleteI agree with Christian Fuller as college students we do need to start thinking about these issues now because it will have a effect on us in the future. As College students I believe we are so caught up on the present that we tend to not want to wait or think about the future. A college student mind set is what is the hottest thing out, I want it or look what he or she has I want to get that now. However I believe the main problem is not being aware of the side effects that bad credit can have on an individual and ultimately not caring because bad/good credit doesn't really have that much effect on college students as of now.
DeleteThis was a very informative article. I just switched banks and now have a credit card. My knowledge of how they work is not the best but after reading this I am more confident in what to do. The information on the secured credit card was very helpful too. Additionally, the last two points of not spending to much and all purchases are good purchases was a great information. Not overspending does sound like common knowledge but it. Unfortunately not all people do that so it is not common knowledge.
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