Most of us when we become college students, it’s a phase which travels at the speed of light. Transformation is taking place. Amongst all that we experience and go through, there is the authority and responsibility which our parents bestow on us. A lot of us have cars and our own driver’s license; a lot of us are equipped with credit cards to ease our headaches of asking money every time from out parents. 
Especially when time comes to flock towards our chosen colleges which are miles and miles apart, it’s then we need these cards the most. This freedom however, shouldn’t get the best of us and we should not be blinded by the fact that once we have a credit card, our credit score comes in contact.
Importance of maintaining a good credit history
Keep in mind that once you start mishandling the authority which has been trustworthily been given to it can harm you and your ability to take loans and use credit in the near future. Our credit score is the result of our payments and debts not of our parents. Our parents are unlikely to help out with a bad credit score. The most that they can do is to pay off your debts to get start your credit score on a better path.
There are various reasons for maintaining a good credit report. For starts it is important for your near future planning of buying a house. The first thing we tend to do after graduation is not only hunt for jobs but also say our goodbyes to our parents and move out. Therefore if your credit score has been good during your college years it provides sufficient evidence to banks that you are stable person who can deal with debts and repayments. Your credit scores can tell a lot more than just the way you spend.
They speak out a whole story of how your personality is and how you are able to deal against the many malicious desires of the world. Not only will your credit report favor you with a home loan but can also aid you in your search for a job, since a number of employers are looking for individuals who have a good credit report. It will further help you in acquiring insurance for your cell phone, car, home and health. Once you come of age you are required to have health insurance and thus it will be vital that you possess a good credit score.
It is important to keep observing your credit report even if you believe you don’t have a history, check up with a major credit bureau just to observe your credit report’s fluctuations if there is any. If you do turn out to have a credit report, keep referring to it in case there is a downturn since this is the report which creditors check before offering you a loan, insurance or any type of credit.
It is essential to follow up your credit report since there could be threat of identity theft where someone else’s report items could be adjusted into yours depicting errors and resulting in a bad credit scores. It is always safe to keep checking your report to be updated and to find any errors if there are any rather than wait and have your whole credit history ruined and make you paralyzed when it comes time to apply for loans or insurances.
Another option for secured means of access to credit can be opening up a checking or a savings account. For lenders these accounts are signs of stability and these are the only accounts which can be opened by an underprivileged or a minor which can affect your credit history. And you will have to wait until 18 years of age to be eligible for a credit card.
How is your credit score determined?
A credit score is determined through how you use the credit and whether you are able to pay off your bills at the right time. For instance if the limit on your credit card is $800, and by the end of the month you have utilized it all and have taken another credit card’s aid to pay off your expenses it could show your inability to manage your personal finance resulting in your credit score taking a deep plunge into the ocean. On the other hand if you pay your bills late and make your luxuries your priority and not your rightful obligations, it could show that you are not favorable against your commitments.
Therefore in order to be able to pay your bills either keep reminders on your calendars that you need to pay this specific bill on this date so that you have adequate time to arrange finances for the bills. Or keep an automated payment method through which on the arrival of date on which the bill has to been it is automatically deducted from your credit card.
For your credit cards to avoid being exhausted by the end of the month it is important that at least 30% of the money remains in the card by the end of the month. This will avoid any credit card debts and keep your credit scores intact. Another way to strengthen your credit report is by paying off the balances by the end of every month which shows some favorability towards you.
So is it walking the plank or securing a place on the ship?
Remember that maintaining your credit report is a risky business, keeping yourself updated along with performing your day to day activities can lead you into becoming stressed and lead an undesirable life. But keep in mind, it’s your choice to secure your near future against debts, bad credit scores, and inability to secure a loan for your dream home or car. It is easy to build a credit history while at college but it won’t take a second to make it go tumbling down like a house of playing cards. So keep intact with your credit history and keep observing it for any errors or any misleading facts.
Keep sure that you are well informed about your transactions, and make an effort of recording the different transactions where you have used your credit card and a follow up on the many bills and checks your suppose to submit or pay. You wouldn’t want to end up in messy rubble of debts by the time you graduate. It would not only be a head for you but also for your parents.
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