BY: Richard Day, Jr.
It is often said that dogs are man’s best friend and this may be true to some degree; however in the context of this class, I don’t see how they could benefit me when it comes to purchasing a house, buying a car, or obtaining a loan in the information age. Credit, especially good credit, seems to be the gift that keeps on giving when managed properly. It provides one with lower interest rates on credit cards and loans, higher limits, and more negotiating power.
In Monday’s class, we discussed the topic of personal credit. Professor Sistrunk informed the class about credit scores and different events/scenarios that can either improve or worsen one’s credit score. He also informed the class on how lenders base their decisions on these scores. I do not have much experience and knowledge in this area; however, in class, I noticed the significance and huge impact that it is going to have in my life and how I should properly begin preparing myself and avoiding common pitfalls. During class, there were a couple of questions raised that I would like to address and provide some insight on:
Question 1: What are some ways to build credit?
Solution:
The following link lists 10 healthy ways to build credit:
Some ways include getting a good job and keeping it, pay your bills on time, and apply for a small loan.
Question 2: What things do you not use credit on?
Solution:
The following link lists 15 times when you should not use your credit card: http://www.creditcards.com/credit-card-news/15-times-when-not-to-use-credit-card-1264.php
Some reasons include when you are near your credit limit, if you can’t pay half of your purchase with cash on hand, and when it’s all about the reward points.
I hope this information benefits you in the near future, and you discover how much of a good friend credit can really be, if you manage it properly.
I found this article to be quite informative but i have a couple of questions. What in your opinion is the best approach to building credit for someone like myself who has no credit themselves? When it comes to paying off student loans, seeing as mine are fairly small thanks to the blessing of scholarships, is it best to just pay them off right away or be very diligent in keeping up with paying in installments? Does either option build a better credit history? And also is it wise to accept an offer from credit card companies who are targeting me as a student?
ReplyDeleteGreat post on credit! Credit is no joke. Quentin, in my opinion, the best approach to building credit is to become an authorized user on one of your parents' credit cards. That is how I got my credit established. I also just got a store credit card (Express, Old Navy) to further establish my credit. Just try to keep purchases to a minimum because it is easy to go overboard when shopping, knowing that you have that piece of plastic.
ReplyDeleteOne thing that everyone should remember is to have a source of income before swiping your card. The last place you want to be is stuck in a hole with bad credit.
ReplyDeleteCredit is very important to everyone because without having good credit it allows others to bestow trust in you and opens more doors. Having good credit is almost like having a good resume even before others have a chance to see or meet you because your financially stable and pay bills on time. Good credit is the best credit.
ReplyDeleteI found both links informative towards building good credit. I will be implementing the guidelines provided within the links to build up my personal credit.
ReplyDeleteGreat post! I think a lot of college students severely underestimate the importance of building credit while actually in school (myself included). How do we expect to buy/lease condos/apartments or cars once we graduate? A fellow student said that it was rather easy for them to get a credit card at one of the Big 4 banks with a branch in the West End. I would recommend to you all and myself to take advantage, responsibly of course.
ReplyDelete