Money Secrets for Freshmen: Secret #4

Money Secret #4: Avoid Credit Mistakes that Could Haunt You Long After College

Before getting a credit card, understand the importance of credit scores. Building a credit score will affect your future, including determining how much you will pay for borrowed money. If you do not manage credit responsibly, you may be prevented from getting your dream jobs. Many employers now check credit scores to help determine how responsible job applicants are.

If you are going to use credit, you need to make sure you:

• Have the self-discipline to live within your means
• Are not an impulse buyer
• Understand the importance of paying your bills in full each month to avoid wasting money on interest
• Pay your bills on time – the #1 thing to do to build a credit score
• Use 30% or less of credit available
• Don’t open too many accounts too quickly – Experts suggest having 1 or 2 accounts and work on building a good account history