Credit Education for College Students
Credit history is a record of someone’s payments to creditors, and it is tracked and updated by three major credit reporting bureaus: Experian, Equifax, and TransUnion. Credit history is expressed in a three-digit number, and it is also known as a FICO score. This score is tied to consumer’s social security number, so different companies can request a credit report every time person is trying to get a loan, a new contract on a cell phone, or an insurance quote. Credit report will show individual’s record of payment history to different lenders, and it will determine his or her credit worthiness. College years would be the best time to start working on your credit history because it will prepare students for the future and having a good credit history will help students save a lot of money. Credit rating can affect person’s ability to rent an apartment, get a student loan, or even start a business in the future. People with a good credit rating are more likely to get better rates on loans, smaller car insurance payments, and even get better jobs. It is important to start working on building credit rating as early as possible, obtain a good combination of credit accounts, and pay attention to paying off bills on time. [A description]
The average college freshman age is 18-19 years old, and ( it is a perfect time to start building a credit history by opening the first credit account. ) The easiest way to do it is to apply for an in-store credit card (like Macy’s or Target) with a low amount of available credit. These cards do not have VISA or Master Card logos, and they are only accepted at stores of origin; it mean if you got a credit card from Target – you can only use it at Target stores. There is a chance that students can get declined from getting even an in-store credit card because they do not have an established credit history or a credit rating. It is important to make this first step, and this step will help...
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