Building a credit history is important for college students, but the cleaner a credit report is, the better. These tips will ensure that students’ heads stay above water… and out of debt.
* While it may seem simple, don’t charge more than you have in an account. One must be aware of the amount of money in his/her account and not develop a debt by over-extending a card.
* Be prompt in payment. Interest rates can increase at the banks’ discretion if payments are late. If you fall behind, you are forced to pay the monthly minimum (or sometimes more), but never the full amount. This is how debt begins to develop.
* Pay more than the monthly minimum, if possible. Monthly minimums are spread out over a four-year period, during which time interest rates can back up and skyrocket.
– Information gathered from www.theoldschool.org.
