College often means independence, a packed social calendar, and wacky classes in art history and political science. It’s also when many people experience their first credit cards, budgets, and debt. That makes it a good time to make sure you’re starting off your financial life on the right track. Here are five money tips for college students:
1) Build your credit report. Recent college grads with little credit history can get penalized when they try to take out a mortgage or auto loan. Lenders often want to see that you have experience with taking on credit and paying your bills on time. Get practice by using a credit card, or asking your parents to add you as an authorized user onto one of their accounts. As Rod Griffin, public education director for Experian puts it, “You need to demonstrate over time that you handle your debts well.”
[In Pictures: 10 Smart Ways to Improve Your Budget.]
Meanwhile, avoid big mistakes that could hurt your credit history, such as failing to pay bills or racking up too much debt. (See The Dangers of Avoiding Credit.)
2) Limit (but don’t avoid) debt. Student loans can be key to helping you graduate, which is why they are so often referred to as “good” debt. Even much-maligned credit card debt can be helpful, as long as it’s used sparingly, in emergencies or for purchases (such as an interview suit) that help you land your first job.
More Articles :-
How to Make Money at Home ?
Earn from Internet Marketing
Top 5 Best Affiliate Programs
Ten Tips for Successful Affiliate Marketing
0 comments:
Post a Comment