Advice to college students establishing credit and Big Banks on campus

[Hardest Working Woman in Credit]

I was asked this question:

What is your advice to college students establishing credit and Big Banks on campus giving away credit?

My advice is to college students is quite simple. Prevention and education is the key to success. These big banks are there to provide credit, which can be good for college students. However, it can be bad for them if they are not aware of the dangers of credit cards and these big banks.

If students are not stable and do not have a job to pay back these credit cards; they will have bad credit. (My advice is do not apply for these cards). This will make it hard for them to obtain favorable car loans and obtain a house after college. Many of them will have to have co-signers etc.

However, on the flip side. They can use these big banks to build credit those four years while in college. The key is paying the loan back monthly or not using the card.

College students can use these cards for small purchase like gas, however pay the full balance back EVERY MONTH. Most people have been misinformed as it relates to using a card and paying it back in full. It's true pay back what you can afford. But DO NOT use the entire balance every month and struggle month to month paying a bill. For example, most of these companies will only give college students $500.00 credit limit. So, I would spend no more than $50.00 dollars on that card monthly and pay that $50.00 back monthly. I would not on the other hand spend $500.00 dollars every month and pay back $500.00 every month. This is where it can be dangerous. Most people are doing this with 3 and 4 cards and struggling to pay these cards back every month.

This was a good question.

For example, in my case, I stayed away from applying for credit credit cards. I obtained student loans to get me through college. There are dangers with student loans that I was not aware of, until after I graduated. My credit card debt started after college, which hurt me in the long run. Early education is key....

It's all about education. The younger you are when you obtain credit the higher your score will be.

For example, a person who get a credit card at 18 will have a higher score than a person that get a credit card at 21, when they reach age 30. I am a big fan on obama and what he is doing. However, I disagree with him with on changing the laws on the age "one" can get a card. It has pros and cons. However, when you don't know and you are being lead wrong. The out come is what we see today.

True leaders in credit and finance are not educating us properly. I have come to the conclusion that many of them don't know them selves, because they "too" are being lead wrong? Also, many of them don't want to tell the true secrets because of all the money they are making in this industry. No one wants to tell the true secret.....



Outspoken Reality