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Finance

TOP 10 TIPS TO HELP COLLEGE STUDENTS ESTABLISH GOOD CREDIT

TOP 10 TIPS TO HELP COLLEGE STUDENTS ESTABLISH GOOD CREDIT

***Collaborative post***

With mounting student loan debt and limited part time job availability, many college students and recent college graduates are finding it difficult to get a leg up in the financial world without having established credit. Without credit, college students can find it incredibly difficult to perform basic tasks such as renting an apartment and buying a car. The best way to avoid these scenarios is to establish your credit as early as possible. Consider the following important tips to gain established credit while in college, so you can avoid complications in the future.

1. Become an Authorized User of a Parent’s Credit Card Account

To establish your credit before you qualify for your own credit card, look into becoming an authorized user of one of your parent’s credit card accounts to build your credit while having your spending monitored. If your parent has good credit, this usually helps to boost your credit score as well.

2. Get Your Own Credit Card

Once you have established your credit by becoming an authorized user on your parent’s account, you can usually upgrade to your own independent credit card. You will have to meet the specific requirements of the credit card company, which will include providing proof of income. In recent years, credit card companies tend to be stricter about offering credit cards to college students, so having the experience and established credit through your parent’s credit card will certainly put you at an advantage.

3. No Two Credit Cards Are Alike

If you have already decided that you are ready for your own credit card, you will want to make sure to research and compare all of the credit card companies available to choose which is the best plan for you. Consider factors such as interest rates, annual fees, credit limits, and billing policies to determine which company offers the best deal.

4. Prepare with Retail Cards

If you feel like you aren’t quite ready for a credit card yet, a good alternative to build up your credit and prepare for monthly bills, interest rates, and other aspects of owning a credit card is to take advantage of retail cards. Many retail stores today offer retail credit cards to shoppers to bring convenience to their shopping experience. The qualifications for these cards are typically more lenient than those for bank credit cards, so using these cards before applying for a credit card is a good way to prepare yourself while simultaneously building up your credit.

5. Only Use Your Credit Card For Small Expenses

Although you may be on a budget, you can’t expect to build up your credit without actually using your card. Once you have your credit card, don’t get carried away with big expenses on clothes, electronics and restaurant bills. Instead, use it occasionally for small expenses, such as grocery store trips and small household bills that you know you will be able to afford at the end of the month.

6. Pay Off the Entire Balance Each Month

Whether it’s your retail cards or your own personal credit card, it is crucial that you pay off the entire balance each month to avoid paying extra interest and to ensure a good credit score. If you are unable to pay off the balance by the end of the month, you are living beyond your means and should make immediate adjustments to your lifestyle.

7. Pay Off All Additional Bills On Time

Timely payments are another crucial element of establishing good credit. Whether it’s a hospital bill, student loan bill, taxes, or even a small library fee, make sure to pay off all of your debts on time to avoid any late fees, interest hikes and negative effects on your credit.

8. Only Use Student Loans For Educational Purposes

Some college students think it’s okay to take out a little extra on their loans to pay for expenses from entertainment to special items for themselves. Although this may certainly be a tempting prospect for a struggling college student, it is not a financially reasonable decision considering the fact that you will be paying the interest back on these purchases.

9. Never Co-Sign

In general, a co-signer is only required to be at least 21 years of age and have a slightly above average credit score. If you have been following the previous tips, there’s a good chance that you may qualify as a co-signer and your friends and family members may want to take advantage of this. Although you may want to help out your friends, you simply can’t afford to ruin your credit from their mistakes.

10. Try to Limit Yourself to One Credit Card

Although having multiple credit cards may seem like a good way to quickly build up your credit, the reality is that applying for several credit cards reflects negatively on your credit. Not only does it effect your credit negatively, but having multiple credit cards increases the temptation and risk of overspending. Reasonably, a college student should not need more than one credit card.

Thanks to Payless Power a Houston Electricity Company

Finance

Buying Our First House

Buying Our First House

Buying Our First House

We have been married now for sixteen years come August, we have three beautiful teenage boys and have always been a working family but the timing for buying our first house has never been right.

We have lived in our housing association three bedroom house since 2003, we exchanged to move here from our two bedroom council flat – we was very lucky.

Since living here we have done so much to the house to improve it and make it more homely, we have put in a new fitted kitchen and bathroom, added a conservatory and even paved both gardens to make it more pet friendly for Buddy our German Shepherd dog.

The timing hasn’t really been right for buying our first house until now – the house is now comfortable to how we want it and now feels like home – a home that we really want to buy. This is the house all three boys have grown up in, these walls hold so many happy memories.

We did look into trying to buy our house a few years ago but due to the (right to buy) law at the time it came back as a big fat NO!

Now due to recent law changes some people are now being given to right to buy their property if they wish so we recently looked into buying our house again and was totally shocked when they said YES, yes we will be happy to send you out the application pack needed.

Things are now starting to look up for us, we still have a long way to go but we are now a step closer than we was last year and we are keeping positive. We now have an application pack being sent out to us and all the relevant paperwork out to apply to be homeowners……Eeek exciting times!

Looking back to the very first time that we phoned to ask if we had the right to buy our property, in a way we are glad they said no because Ian was then working for a family run business and the boss never paid regular, we went from week to week not knowing when the next payday was or even worst still we never knew how much for. This wouldn’t look good on a mortgage application now would it?

It was a financial struggle and yes bills mounted up but he kept the job because it was a job and they are hard to find nowadays aren’t they?

Things are now different, I have been in a secured job now for a good few years and Ian has since changed jobs, he is now working for a very stable company that has been going for years. This company pays Ian on a set date each month without fail, now this has got to look much better for when applying for a mortgage hasn’t it?

With us both being in a steady job that we’ve been in for a few years now, bills have always been paid on time, we don’t have any rent arrears and we have means to show we can afford a mortgage and have means to pay on time each month.

So looking back – no the timing would have been completely wrong for us to apply but we have worked hard to get to where we are now the main thing we done was financially planned to get to where we are now, that is to be stable enough to be able to apply comfortably for buying our first house.

Your credit report holds all the cards as to whether you will be allowed the credit needed, so having a good credit rating is very important as it is used by lenders to determine how much of a risk you are to loan too. Do you check your credit score? we have been keeping a close eye on ours over the past few years. Credit score checks are used by most lenders, this can be for loans, mortgages, car finance, credit cards and so on.

Ways you can financially help yourself.

Financially plan if you wish to buy something.

Try and avoid getting into bad unessersary debt if possible.

Keep on top of all your bills. Paying on time shows you’re a good trustworthy person to lend to.

Keep an eye on your credit report and try to fix any problems that may show up.

Register on the electoral roll.

Try your best to avoid getting loans.

Keep a check on your outgoing’s, it is so easy to overspend.

Don’t abuse any credit that is available to you.

Are you looking to renew your car? take a look at Stoneacre Car Finance they offer great options ranging from interest free to low payments, also a no deposit car finance offer.

Buying our first home