What new College Grads Should know about Credit

After you've earned the credits you need to earn your college degree, a new kind of credit becomes important. This kind of credit will affect you for the rest of your life;It will influence your ability to get certain goods and services before paying for them with the expectation that repayment will be done in the future.\r\n\r\nYou may already have some experience with credit, particularly if you’ve had cell phone or utility bills or a credit card. But, as you build a life without your parents and away from the college campus, building and protecting your credit takes centre stage. Here is what you need to know.\r\n\r\n1) Opening too many credit cards at once is risky-Stick to just one or two until you get used to your new job and new living expenses. Being approved for your first credit card can be exhilarating, but don’t get addicted to the feeling.\r\n\r\nCredit cards come with the risk of debt. When you’re just starting out as a young adult in the real world, you don’t need to add credit card troubles to your list of things to deal with.\r\n\r\n2) Bills your roommate doesn’t pay can hurt your credit score-The number that measures your credit history. If you live with a roommate, take care that any rent and any other bills that have your name on them are paid on time each month. The companies won’t care that you and your roommate have a verbal (or even written) agreement to split the bill. They care about getting paid on time by whomever's name is on the bill.\r\n\r\n3) You have access to a free credit report once a year. Order it annually to keep track of what’s going on in your credit life. Your credit report contains a list of all your credit account. It’s what creditors, lenders, and other businesses use to decide whether to approve your applications. Visit http://www.crifnm.com/html/ to access your credit report each year. Review your credit report to make sure the information on it is accurate and complete. Dispute any errors with the credit bureau to have them removed.\r\n\r\n4) Student loan payments will start in six months after the completion of your degree - If you don’t start paying – or make payment arrangements – your credit will be suffer. You get a grace period after you graduate to find a job and get established before your student loan payments kick in. Make sure your lenders have your correct address so your statements will reach you. Try to get an idea of what your payments will be before you have to start making them so you won’t be caught off guard by the payment amount. And if you have trouble making the required amount, talk to your lender about repayment options that fit your income and expenses.\r\n\r\n5) Everything you do now affects your credit for years to come. Make wise decisions and you’ll be rewarded with a good credit score. Likewise, bad decisions and credit mistakes will result in a bad credit score. Negative information stays on your credit for seven years in Jamaica. If you make a credit mistake at age 22, it will stay on your credit report until age 29. When you want to get a mortgage or buy a new car, the mistakes you made years ago can affect you. Fortunately, there’s no limit to the amount of time that positive information stays on your credit report. Therefore, aim to keep your credit clean so the ghost of bad credit doesn’t come haunting down the road.\r\n\r\nRetrieved from: http://credit.about.com/od/buildingcredit/fl/8-Things-College-Graduates-Should-Know-About-Credit.htm