The Credit Report Card

If you think that the report cards will stop coming after high school and college, it’s time to think again. If you have ever bought a cell phone or a cell phone plan, if you have purchased a car on credit, if you have a credit card, or if you have any bills that you pay (or don’t pay) on a consistent basis, you have a credit report card. 

There are three companies in the United States that supply credit reporting for various banks or lending agencies. These are Experian, Equifax, and Trans Union. When you apply for a credit card, the credit card company will check your credit report through one or the other of these agencies. If you apply for any loan or try to rent a place to live, you will also have your credit checked to make sure that you are a good credit risk. Credit scores can range from 300 – 900 points and to be a good credit risk, it is necessary to stay in the upper range of this scoring system. 

Therefore, as you think about the loans, credit cards, and bills you will encounter during your college years, you will need to think long and hard about how to pay those loans and bills for which you are responsible. If you take on more than you can pay or if you pay your bills late, your credit record will reflect this and you will become an increased credit risk. 

Living frugally is not something we have been taught to do on a consistent basis. Advertisements entice us to spend more and more money, sometimes causing us to put things on credit cards even when we are not sure where the money will come from to actually pay the bill. 

Students in a college or university setting expect to learn and stretch their minds in an assortment of subjects – biology, math, humanities, etc. You might want to allow the learning to also take place in the world of finances, bill paying, and handling credit responsibly. Credit cards are a great invention for those who use them wisely. Be one of those who fit into this category, coming out of the college and university setting with your credit rating in tact and ready to take on larger responsibilities as you explore the career you have chosen to pursue.