College Student Credit FAQ
Beware college students ! Now more than ever college students are graduating with enormous credit card debt or worse, with bad credit. It is estimated that 50% of students will owe more than $ 10,000 by the time they graduate. Most will have only paid the minimum payment, and end up paying high interest finance charges.
Its a fact you will receive many credit card offers while a student in college. Companies know that students usually hold on to the first card they are issued, and also accrue debt and finance charges for many years before having the means to pay it back.
Just because you get an offer, doesn't mean you can afford it.
Try to have one credit card for emergencies. Ask for a low limit, like $500. Leave it home with your parents if possible. Use it only for emergency. Better yet do not get a credit card while in college. To start building credit, get a department store credit card which has low limits and will not often be used.
Do not finance tuition, books, etc on a credit card. The interest is too high.
Remember, if you run into trouble, and can't pay, you will graduate college with bad credit. This may affect getting an apartment, a job, or getting a loan for a car.
| Quick Credit FAQ |
| Up to 60% of people who check their free credit report find errors. |
| Credit Professionals recommend a credit check at least 2x yearly. |
| You may obtain a free credit check if you've been denied credit in the last 60 days or once annually. |
| There are 3 credit bureaus which collect information from major creditors. Equifax, TransUnion, Experian. |
| Your credit report lists all the accounts and payment history for the last two years; liens and judgements for 7 years; bankruptcy 10 years. |
| From your information a credit score is calculated. Credit Scores range from about 400-820. A score of 700 or above is very good. |
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