COLLEGE CREDIT: MAKING THE GRADE WITH YOUR FINANCES

7 TIPS TO MAINTAIN AND IMPROVE YOUR CREDIT

Your credit score can affect your ability to get a car loan, a home mortgage and even a job. Creditors look at your credit score to determine how worthy you are to receive credit from them.

1. Get your credit report

Whether you can obtain credit is based on your credit report. Knowing what is in your credit report is the rst step to good credit.

4. Quit adding debt

By not adding to debt, it is easier to pay off sooner and with less interest.

AVERAGE CREDIT CARD DEBT ACCORDING TO YEAR IN COLLEGE

$2,700 $1,585 $1,900 $2,864

5. Stay current with payments

Staying current prevents miscellaneous fees and interest rate hikes.

2. Correct your credit report

Even if your report is accurate, you can add information to make the report more complete for companies requesting your report.

6. Reduce debt load

By paying more than the minimum payment, you can pay your balances faster and pay less interest over time.

3. Review the FICO Score system

35% Payment History 30% Outstanding debt 15% Length of credit history 10% Recent inquiries on your report 10% Types of credit in use

7. Consolidate your debt

Number and type of loans effect credit. Having fewer different types of debt usually improves credit and accumulates less interest to pay off later.

Freshmen Soph. Junior

$$$$
ages 18 and 19. of 18 -19 year olds failed a nancial literacy test.

Senior

college students obtained 78% of their rst credit card between college students hold four or 43% of more credit cards.

The Credit Score Spectrum

Below 500 No credit

680 720 The average credit score is between 680 and 720

850 Outstanding

65%

SOURCES: http://www.studentplatinum.com; http://creditcards.lovetoknow.com

Graphic by MATTHEW HILL