The thing about which I’ve been thinking a lot is the effect of a foreclosure on a person’s credit score, due to its impact the whole housing crisis is taking place.
Frankly speaking it is one of the worst black marks you could ever get on your credit report other than bankruptcy, but the impact may not harm you going forward as much as it once was harmful in the past.
Students are increasingly worried about credit and credit scores – and for good reason. Student debts are rising and the numbers of students who leave school with ruined credit scores is rising as well. Many experts blame larger credit card debts and rising tuition costs (that lead to larger student loans).
Despite the pressures of today’s student life, though, it is possible to leave school with a good credit score and in fact to develop good financial habits that can lead to a lifetime of good credit ratings. There are a few tips that can make the college years a credit-booster instead of a credit disaster:
If you are a college student, your school’s financial aid office should be one of your first stops at the campus. Few students visit this office regularly while they are in school, and this is a mistake. The financial aid office at most universities and colleges has more than enough information to help you keep your credit score in tip-top shape.
The financial aid office offers one-on-one financial counseling, information about scholarships, tips on budgeting, books on money, and many more resources. The officers at your university or college financial aid office can offer you help on almost any aspect of financial help – including helping you figure out credit scoring. Plus, many financial aid offices have workshops that can teach you about dealing with money and credit, and even offer free tax filing services, services that are extremely useful.
In fact, the financial aid offices at most colleges and universities are so useful that you may want to call the school you attended in the past to ask whether alumni are eligible for any services at the financial aid office. The resources that you a get for free from these offices are simply too good to miss.
Student loans need to be paid back and are more and more often for large amounts. Taking out the smallest loans you can and sticking to a budget can help establish good credit habits that can help ensure that you have a good credit score when you leave university. Plus, since student loans are for a limited amount, you can easily budget because you will know exactly how much money you will make each month and how much money you will be spending on student housing, tuition and other expenses.
Student loans are becoming a problem for more and more students. On the one hand, student and college loans can help students who could otherwise not afford go to college or university.
On the other hand, though, huge student loans can be a terrible financial burden after graduation.
While it is true that most college and student loans do not have to be repaid until after graduation, the time after graduation usually carries some large financial responsibilities. Many college graduates want or need a car, a good job, and possibly a house or home. Each of these things requires a good credit standing, but too large student loans not only require larger monthly repayments but also may affect credit scores by overextending credit.
As tuition fees rise, larger student loans are becoming the norm, leading to financial hardship down the road for many students. To avoid this, you should take out the smallest loan you can, relying on jobs, savings, scholarships, bursaries, and other forms of financial aid to make up the rest of your tuition and living expenses. You should rely on loans as a last – not a first – alternative.
