Graduating From College: are You Prepared?

Preparing for college graduation can be difficult enough without worrying about a credit report. Many kids in college have no clue what they will do once they’ve graduated from school. Sure, getting a job, upgrading a car and improving a current living situation are probably in the sights of most graduating students. But creating a credit report that’s graded an A+ should be a priority for kids graduating from college.

Why Credit Reports Are Important to College Students

College students benefit when they work to create a solid credit report. In order to get a job, an apartment or the best rates on auto and home insurance, a clean credit history is required. Prospective employers, landlords, insurance companies and more will use information obtained from a college student’s credit report to determine credit worthiness.

College Credit Cards Help Kids after School Ends

A college credit card can be a smart option for a graduating student when used wisely. These cards are designed for the needs of kids in school and can be low interest cards or rewards credit cards. Students can compare college credit cards before they apply to make sure they get the best deal. The best cards offer benefits to students well after they graduate. Low interest rates and rewards programs can make the right college credit card useful after leaving school and entering the workforce.

Understanding How a Line of Credit Works for Students

It’s important that students understand how a line of credit works before they apply for credit cards. Interest rates and fees impact the total cost of having a credit card. A student’s line of credit is just like a loan- it’s just a different way of accessing borrowed money. In addition to rates and fees, students who apply for college credit reports need to be aware of the risk of identity theft. Keeping credit cards, statements, PIN numbers and related information safe is critical for students with a line of credit. Ordering a free credit report online annually is a good way to ensure that a credit history is in good standing and that accounts are safe from identity fraud.