What's the Deal: Teaching college students about building credit
PHILADELPHIA (WPVI) -- If you're headed to college or sending your child to college, an important thing to consider is credit. Establishing good credit is just as important for your future as establishing good study habits and getting good grades.
When students hit college campuses, they are greeted not just by new teachers but by new temptations in the form of spending.
So tip #1: Before your student heads off to school, write out a weekly or monthly budget. Tip #2: Considering getting 1 credit card, but do your research.
"The internet has some great websites like Nerd Wallet where you can compare and contrast certain types of credit cards and pick one before your college student goes off to college so you're getting the best deal," said David Geibel from Univest Bank and Trust.
Tip #3: Talk about how to use that card wisely, so you student establishes a strong credit history and a high credit score.
"You shouldn't charge spring break as fun as that would be," said Geibel.
Because it won't be fun later on. Carrying a high balance that you can't pay off will hurt you.
Tip #4: if you can't afford it, don't put it on a card.
"They don't only look at just late payments, they look at if you're only making minimal payments, that actually hurts your credit score as well," said Geibel.
Having multiple credit cards with mulitple high balances can also negatively impact a credit score.
Tip #5: Consider adding your student to your own credit card account as an additional card holder.
"That will help them establish credit and you can help the young person put some controls on there, you can see what they spend," said Geibel.
Tip #6: Remind students of the incentives. Using credit cards wisely can save them big money later when it comes to things like insurance rates and interest rates on big purchases like a first home.
Two of my favorite money and budgeting websites are Mint AND Nerd Wallet..We've put links on 6abc-dot-com.
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