Students all over the country have found that a bad credit rating can haunt them for the rest of their lives.
The United States Student Association has teamed up with Mastercard to educate college students on the importance of good credit rating. They feel that teaching students to manage personal finances now, will benefit them in the future as well.
The USSA and Mastercard have created a website to help to educate students on the importance of budgeting, responsible credit card use, repaying debts and maintaining a solid credit history. The site gives tips and worksheets that can help to mange finances.
According to the web site, the first way to keep out of credit problems is to create and maintain a budget. By figuring out expenses and comparing that with income, one can eliminate overspending and debt. If expenses are larger than income, a person needs to create more income, or in most cases, cut expenses.
After a budget is made, it is important to stick to it. Many people drift from their intended budget, and end up in debt they did not expect.
Many factors are involved in establishing good credit. The important thing is to remember not to go into debt. A bad mark on your credit report can come from late payments on bills, past denied credit, bankruptcies, foreclosures, tax problems, referrals to collection agencies, and payment history on credit cards etc.
Another key issue in managing finance is creating a good credit report. A credit report is basically a report card of your credit history which serves as a guideline for establishing new credit.
A credit report can make or break a person trying to get new credit. If bad credit has been established, other companies and banks will be reluctant to take a chance on giving their credit.
Only certain people can see a credit report. Mainly they are viewed by banks that give loans, landlords before leasing properties, and employers looking to hire new help. Any person can request a copy of their credit report at any time.
This report is free if they have been denied credit, but the usual fee, if they have not been denied, is approximately $8.
It is also important to remember, establishing good credit is much easier than fixing bad credit. Paying bills on time will establish good credit. Also, getting as much credit as possible and keeping it out of trouble will establish good credit. Bad credit takes up to seven years to erase from a credit report and can keep a person from establishing new credit.
If bad credit occurs, the best bet is not to let it get any worse. Once credit is bad, creating good credit is the only way to regain a good credit standing.
Some simple ideas can keep credit problems to a minimum are: remember to pay bills and loan payments on time, budget income, and do not charge things to credit cards that cannot be paid off easily, review your own credit report and make sure that it is correct. If it is not, work with the credit bureau to fix the mistakes.
Do not overdraw on bank accounts or exceed limits on credit cards. Also, do not forget about recurring bills such as subscriptions and club dues.
For more information visit the Web sites at http://www.credittalk.com or http://www.usstudents.org.
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