Build credit from college as soon as you start

Build credit from college as soosn as you start.

You start your real independent life from college. At this stage you are mature , have heard too many things about credit card crushing the people, people hurt their credit rating and can not buy a house, a car, a good Television set or furniture on lease.

It is now the time to consider, be very serious about the things, especially money matters,

Credit Cards, expenses, High cost dress and hotel foods. You are not a child and your expenses would not be paid by your parents. You might have taken the student loan for study.

The Disaster: For many students, the first card might cause a disaster. They have to pay far before expected interest rates, and growing debt increases each month. Finally a time comes when they do not care about the card debts any more and it goes to collection agency. This is called a real financial disaster.

How to choose and maintain your first credit card

Choosing a card is very important and needs research about credit card issuers. A wrong choice can hurt your credit rating and or extra payments in multiple of interest charging for years and years.

Your personal Data leakage: Remember that your data is just in the computer files of the college and too many people have the access to all of your data so every year there might be selling of students' financial information to credit card marketers. Person doing this usually makes the money.

You can attend the calls from credit card marketers but always ask them to send you details by mail on their official Papers.

How a reliable good credit card can help you build your credit history. If you are using your card as advised, the right credit cards can help you build your credit history; this will give you the privileges like:

The best to come to you.

You qualify for lower rates on Car loans or any business you want to start after you graduate.

Get reduce your insurance premiums.

Here's how to Choose and maintain a good reliable card.

1. Apply for a reliable, and the right card.

Not every issuer will give you the best deal. You will find that a credit card tells a low initial interest rate, but then it quickly jumps to 19% or more after a few months. It is the matter of reading the fine prints always and never sign for a accredit card on phone or internet, what ever the attractions are.

Be careful and always apply for one card, and wait for about one year while building your credit rating.

You need only one card for building a credit history; a second card will continue to help, but if you apply for many, then it remains tough to maintain too many cards. A slight negligence factor from your side could effect your credit rating.

Your own research shall bring you a good deal. Never get into the traps of rewards programs, low introductory rates, shift your balance from any card to our card and enjoy a very low interest.

These are considered fine prints. Again ask for the Official letter from the company.

So now remains the Question that which card to sign with what features?

A right Card should not charge any application fee or other upfront fee.

No annual fee.

Has an appropriate interest of 14% to 18%.

Have your total balance debited from your checking account each month: You should arrange this with your credit card company.

Fine and Technical Prints: Never accept an offers from a rate "as low as" percentage of ( Some percent mentioned ), because the credit card companies have the legal right to increase the interest rate and even the president of USA can not do any thing against these companies.

Reports to all three credit bureaus. This is very important legally (loud Fine prints)

Before applying for a card from a credit card company or any bank, ask them if your account would be reported to Equifax, Experian and TransUnion, if you get the answer as “yes” then ask them in writing on their official company letter head.

On checking if your card is not reported to the bureaus, then it is not building your credit.

It is the rule that credit card issuer should report to Equifax, Experian and TransUnion.

Reading terms and conditions: Always Study the information pages or brochure which comes with your card, read each and every line and if you do not understand then clarify it with the issuer or a senior with lot of knowledge about credit card terms and conditions.

You need the answers of:

1. Interest rates: There are three rates: one for purchases, one for balance transfers or debt transferred from another card and one for cash advances. When you make payments, they'll go toward the lowest-rate balances first, so your higher-rate balances will continue towards high interest charges.

2. Fees for paying late. It should not be some thing like the high penalty, if it is then never get this type of card.

3. What’s your credit limit on your first card?

Usually it is $500 - $600. Accept this range.

The best way to build your credit history is to charge no more than 30% of your limit, so no more than $150 in any given month on a $500 card. This is the best and affordable.

WAYS TO AVOID ANY DAMAGES.

.*What's the card's toll-free number? Keep it set this into your cell phone so you can easily check your balance,

ask questions and problems corrected on timely manners.

*On which date your statement period close? It's the amount you owe on that date that's reported to credit bureaus, and that should be paid off in full every month.

*When are the due date and time? The due date may vary by a few days from month to month. Your payment should go to the issuer a week before this date. You need to write on your Calendar the due date every month.

Some Special things in particular you should avoid:

Paying the minimum. This shall keep on building the interest per month. So pay your balance in full.

Taking cash advances. As a rule Cash advances come with high interest rates that apply immediately.

Skipping a payment, all the credit scores will be wiped out.

A single skipped payment can reduce 100 points off your scores, and this remains on your records for years.

Late Payments. You’ll be incurred a late fee ($30 to $40, typically) with a higher interest rate. (Read in fine Prints.)

Charge to put: Always put a charge close to your limit.

* When you pay the minimum, it starts building years of debt and total payments that pretty much double the cost of whatever you've purchased.

One Simple Rule: Always pay in full, make sure hundreds times that you have the cash to pay the bill or not on or before due date.

*Should I set up to get online access to my credit card account or no? I shall not advise you for on line things using internet. Your account and password might be hijacked. This will be the hardest time in your life.
If you graduate with high enough credit scores, it shall be easy to think and establish your own business in Future life. Always prefer your own bank.


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