Saturday, June 30, 2007

College Students: Work on your credit history.

I received an email from a little while back that came from Mike at . It contained some pretty good information to pass along.

The Importance of Building Credit History

For many people, credit is a Catch-22: They can't get approved for
credit because they don't have a credit history, but they can't build a
credit history without first being approved for credit. Luckily for them,
college students don't tend to have this problem. Credit card companies
view them as low risk, at least compared to other young people with no
credit, and so they're willing to give them a first chance. As a new
cardholder, it's vitally important that you make good use of this first

When you have a credit card, the issuing company reports information to
each of the three major credit bureaus - Experian, Equifax, and
Transunion. This information includes the amount of credit you've been
approved for, how much of that credit you are currently using, and most
importantly, your payment history. All payments - both late and timely -
show up on your credit report, and even one late payment can hurt you
rather badly when you lack a solid credit history. This is why you should
always, no matter what, pay at least the minimum due on each of your
credit card bills.
Always Try To Pay More Than The Minimum Due

While it's important to always pay at least the minimum due, you should
never only pay this amount unless you are completely unable to pay
more. In fact, it may not be a bad idea to pay the minimum immediately
upon receiving your bill and then pay more later in the month when you
have more money.

If you pay less than the total amount due, you will be charged interest
on your next bill. Even though the credit card company holds you in
higher esteem than one of your high school peers who didn't go on to
college, they still regard you as a rather risky proposition - which means
you'll probably be paying a very high interest rate. If you only pay
the minimum due on a card with a high interest rate, it could take you
several years to pay off even a modest amount of debt.

Take Advantage of Your Opportunities - But Use Your Credit Wisely

Believe it or not, it may be easier to get approved for credit while
you're in college then after you get out - particularly if you don't
start a professional job right away (or at all). The high interest rates
you're asked to pay are just part of being a newcomer to the world of
adult finance. But then again, if you always pay your credit card bills in
full, interest rates will be irrelevant.

Regardless of all the cautionary tales, you should definitely open up
at least one credit card account while in college to begin building a
solid credit history. If you can show the credit card companies that
you're responsible, you'll soon be paying much lower interest rates, and
you'll be able to get that new car or house when the time is right. If
you ignore or abuse your credit opportunities in college, it could be one
of the worst mistakes of your life. You're an adult now - it's time to
stand up, take responsibility, and enjoy your share of the American
Dream. And it all begins with responsible use of credit!


DR.MARCO said...

If you are running a monthly balance on your credit card YOU MUST START TAKING IMMEDIATE ACTION TO START KNOCKING THAT DOWN!.... PLease, paying some of the highest interest rates know to mankind just isn't cutting it!

I can recommend a plan that will allow you to start putting aside a certain amount every month to apply towards the balance, but you must have the dicipline to follow through.

If you could start applying an extra 50-100 dollars a month to pay down that debt WITHOUT THAT COMING OUT OF YOUR POCKET AS EXTRA or trying not to buy things you normally do or starving yourself...would that be helpful?

Well, you need the discipline to actually keep track of how much you are saving by using the methods explained on my blog for student savings & apply that amount every month without fail.

For the details on how to save $50-100 every month WITHOUT CHANGING YOUR SPENDING HABITS.. get the details at

I wish you all the best.
Dr. Marco Caravaggio

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tisha a. kulak said...

Hi! I have recently started reading your blogs and really appreciate the information you provide.

I am interested in having a guest writer spot on your blog. I am an editor/writer for a credit card blog, a consumer news blog, and my own personal blog. I would be interested in posting an article or more about student credit cards, in particular student card reward programs, and other student-related benefit programs relating to banking and credit.