Students Should Start Building Good Credit History

Author: Savannah Bright/ Date: August - 20 - 2010

Students have a lot of necessities for their studies and school life. Books, tuition fees and dorm fees do not usually fit all in their part-time job salaries. Parents can’t at all easily provide the money for these expenses at once. The answer for covering all these expenses is credit all along.

Students, whether under a personal or authorized user credit card, have their own credit history. Like with how teens handle auto insurance, not all adults consider young people as credit worthy. Some even say that the younger generation may start off with a bad credit history. College male students want to buy their own expensive cars for “social survival” and teenage girls want to have regular “beauty” check-ups with their salons. Students on the other hand crave for the adults’ understanding. School life doesn’t always revolve around those things and school expenses are actually high. University students claim that their tuition fees are high and costs for school projects and papers do not just involve paper reams and coffee. Internet and books accumulate most on the expenses. Part-time jobs don’t pay too much and fitting the bills isn’t easy that’s why their parents supply them with plastic cards for financial aid.

Student loans are beneficial for all students. But they may become a nightmare if the loans turned to defaults. Student defaults stay on credit reports for seven years. Students, especially the graduating ones, find it difficult to dispute with the bureaus regarding the defaults. They may even have a hard time paying them off because their future employers saw the mark and won’t hire them.

Beforehand, it is important to give these young people about proper credit education and responsibility. Young people are still learning and the challenges of adult life have not totally gone over them. Parents are said to be responsible in this area. Of course, no parent would give their children credit cards without the booming ‘be responsible in handling this’ lecture. But whenever the lecture starts with one or two sentences, it usually ends with an abrupt ‘whatever’ remark from the children, parents say. The situation isn’t right since young people need all the learning they could get to avoid getting into deep financial troubles later on.

Students are still lucky to have financial counselors in their schools and even from the US Department of Education. These people, along with books and internet articles, provide tips and strategies on how to keep young students off debt. Students must also always check on their credit reports to determine whether there are disputable errors present. This will help them to get errors removed as early as the time before they graduate. This will also help them improve on the areas that may threaten their ability to apply for a new credit and insurance or obtain a job.

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