17
Jun

What You Do in Collge Stays with You - CreditRepaircom

Unlike that C- you got as a sophomore, that the rest of your grades balanced out, the credit history you develop during college can haunt you for years after graduation. The reality for both soon to be, and recent graduates, is that their wild college credit days are going to impact their lives for the next seven to ten years.

The harsh reality of the work-a-day world of jobs, and apartments or houses and cars, is that your credit score can do far more to impact your life than your GPA. From your first credit card as a freshman, to paying down your college loans, the big three credit reporting bureaus have been tracking your every move and keeping score.

Independence Day

If you’re like most young people, you consider the day you graduate college to be a sort of personal Independence Day. You’re free from the confines of school. You’re free to move and live anywhere you want. You are no longer tied financially to your parents. You are finally a free independent adult!

You believe the world is a blank slate waiting for you to write your future on it, but is it really blank? Consider the days and weeks after graduation after the thrill is gone, and you set about the business of becoming a productive member of society. There’s a lot to do, and you’re eager to leave your college days behind you and move on.

Not so fast! Your college days are right there with you- starting with finding a place to live. Perspective landlords are going to look to your credit score to determine whether or not you’ll pay your rent. The utility companies will use your credit score to determine how large of a security deposit to collect.

Securing a credit card as a freshman and never carrying a balance can mean the difference between a fifth floor walk-up overlooking a junk yard, and an apartment that is close to shopping, nightlife and transportation in a nice part of town. Carefully cultivating your credit while an undergraduate can result in a credit score of over 700 come graduation, and the nice place to live that comes with it.

Alternate Reality

You might have waited until your junior year to secure a credit card of your own, and immediately ran out and maxed it out on “stuff” that you couldn’t live without. Of course you missed the first couple of month’s payments because you weren’t used to having to pay bills, but after that, you paid the minimum.

As a result, your credit score upon graduation is in the 500s and so instead of being able to buy that new $20,000 car with a 36 month loan at a cost of less than $600 a month, you have to pass because your credit score makes the $725 a month payment too steep. The unfortunate reality is that those top of the line running shoes, and other stuff you couldn’t do without three years ago, just stopped you from buying a car today!

All Things Not Being Equal

Finding a job is hard. Finding a great job can be nearly impossible, but not getting hired is never good. As much as your undergraduate grades matter, more often than not, employers are more concerned with your credit score than whether or not you got a C- in art history.

For example two friends, Pam and Joe, both took the same art history course, Pam got a C- and Joe got an A. When they graduated Joe’s GPA was 3.75 and Pam’s was 3.5, and they both applied for the same job at the same company. Pam got hired and Joe did not. The difference was Pam had a credit score of 735 and Joe had a credit score of 610.

As far as HR was concerned, Pam was a better candidate because she was more responsible with her credit than Joe. So as part of their evaluative process, employers often consider the way candidates pay their bills to be a better indicator of reliability than GPAs.

The Bottom Line

Regardless of whether you are still in school or a recent graduate, your credit scores and the content of credit reports impacts many areas of your personal and professional life, and what you do today or did yesterday, will stay with you for years to come.

The best advice for students and graduates alike is to monitor your credit report regularly, correcting errors and working with creditors to clear negative notations as quickly as possible. Consider working with a professional such as creditrepair.com, to improve your credit score and clean up your credit report- rather than worrying about your art history grade.


Posted in Credit Score