After you have earned the credits you need to earn your college degree, a new type of credit becomes important. This type of credit will affect you for the rest of your life; It will affect your ability to get certain goods and services before paying with the expectation that you’ll make the payment in the future.
You may already have some experience with credit, especially if you had cell phone or utility bills or a credit card. But how to live a life without parents and away from the college campus, building and your credit protection becomes much more important.
Build up your credit after graduating college
1.If you haven’t already built up a credit history
It could be difficult for you to rent an apartment, buy a house or get a car, or even a credit card. The catch-22 of credit is that you need to get credit, but you can’t get credit if you don’t have credit. A good job, higher down payment, or willing draftsman can help you crank your life and start building a solid credit history.
2. Student loan payments will start in six months for most types of student loans
If you fail to make deposit or catch payment arrangements- your credit will be hurt. You will get a grace period after graduation to find and establish a job before you start making your student loan payments. Make sure that the lenders have your correct address so your statements will reach you. Try to get an idea of what your payments will be before you have to start making them so that you are not guarded by the payment amount. Talk to your lender about the repayment options that fit your income and expenses.
3. Opening too many credit cards at once is risky
Stick to just one or two until you get used to your new job and new living expenses. Getting approved for the first credit card can be exhilarating, but doesn’t feel addictive. Credit cards are at risk of debt. If you’re just starting out in the real world as a young adult, you don’t need to deal with credit card issues to add to your list of things to deal with.
4. Payment Due dates
These are non-negotiable and missing a due date can hurt your credit score. Your professors may occasionally allow you to turn your papers in a day or two late without giving you a penalty, but your creditors are not that friendly. You can change some payment dates at a better time of the month, but not as a payment avoidance tactic. Get used to paying your bills on time as they come with expensive penalties.
5. You have access to a free credit report once a year.
Order annually to keep track of what’s going on in your credit life. Your credit report contains a list of all your credit accounts. It is what creditors, lenders, and other companies use to decide whether to approve your applications. Check your credit report that the information on it is correct and complete. Disputes with the credit bureau have been removed.
6. Bills Your roommate cannot pay your credit score
Hurts the number that measures your credit history. If you live with a roommate, every rent and other bills that have your name on them will be paid on time every month. The companies don’t care that you and your roommate verbally (or even write) an agreement to split the bill. They take care of whoever’s name is paid on time is on the invoice.
7. Putting your credit on the line is not wise for someone else
If you already have good credit, think twice about co-registering for a friend, relative, or romantic partner. In essence, when you cosign for someone, you are promising that payments will be made every month, even if that means you have to make them. If the other person misses payments, it affects your credit too. Non-payments can devastate your credit, making it difficult for you if you have to borrow money for yourself. Also keep this in mind if you asked a parent or friend cosign something with you.
8. Everything you do now affects your credit for years to come
Make wise decisions and you’ll be rewarded with a good credit score. Likewise, bad decisions and credit mistakes will result in a bad credit score. Negative information remains on your credit for seven years. If you make a credit mistake by the age of 22, it will stay on your credit report until the age of 29. If you want to get a mortgage or buy a new car, the mistakes you made years ago can affect you. Fortunately, there is no limit to the amount of time positive information can remain on your credit report. Set up to keep your credit clean so you won’t run into problems along the way.