Managing Your Credit in College

Reasons Why Managing Your Credit is Important

College is the start of a new life. A life independent from overprotective parents, teachers getting on your back about homework, curfews, and a sheltered life where something goes wrong you can run to your parents to fix. College is the start of the real world. We go to college to establish a foundation for our life in the real world; an education for future careers, acquaintances for future relationships, living skills for your future independent life. However, what most students forget to establish is probably one of the most important things in life: good credit. In the real world, a persons credit is like a personal bio. It shows how responsible and reliable you are when it comes to making payments, and in a world with a mentality “buy now pay later” reliability is key. Credit is just as important than your financial well being.

Establishing good credit is incredibly important because every time you make a financial move, your credit is checked. This is even more important to college students who have zero credit and need a loan not to mention having looming college loans over their heads. As stated before, college is all about laying foundation to succeed in the future. Establishing a bad foundation at college could be a significant detriment to your future life. Just as you wouldn’t blow off a studying in college because you fear not being able to find work later, you shouldn’t blow off your credit because you will not be able to purchase essential aspects of living. College students come out of college in debt with little to no money. Students, until they find work, simply do not have the money to buy a car, to travel, rent an apartment, or more importantly to hold them over in emergency situations. This is where credit comes in. Good credit will ease the transition from college to work for a student. With good credit, lenders will not be hesitant to lend you money (i.e car loans, credit cards, home loans etc.), so students can worry less about making payments and worry more about future plans. Once someone has bad credit it is incredibly tough to get out of. Especially for a student who has no source of income. A student with bad credit is most likely going to be force into a paycheck to paycheck job barely making end’s meat because of their inability to borrow money. On the flip side a student who establishes good credit during college is able to follow through with their life plan; go to graduate school, pick a career, get a steady job, wherever life takes them they will always be two steps ahead of someone with bad credit.

College is a jumping off point to the rest of your life. It is where you establish a foundation to build your career, relationships, and your life in general. Good credit in college enables you to pursue your dreams with focus and tenacity. With good credit established in college, It is easier to be financially independent and comfortable later in life. Without establishing credit in college a student will start out life at deficit, unable to be financially support their dreams and aspirations. Establishing good credit in college is the foundation of a successful life.