Monthly Archives: September 2016
As a college student, ending up being in some student debt is often inevitable. With tuition fees on the rise, more and more students are having to borrow substantial amounts of money when it comes to making sure that they get a higher education. Along with this, the cost of student living is also expensive, meaning that many students have to borrow further money, for example in the form of loans, credit cards and overdrafts in order to ensure that their living expenses are covered whilst they study for their degree. We’ve put together a list of handy tips to help you avoid getting into any more student debt than necessary.
Start Saving Early
Whether you’re applying to study on campus or want to pursue an online business administration degree, for example, saving up as much money as you can and as early as you can will help you to be able to cover the costs of college without having to borrow as much money. Many students are even taking a year out of education in between graduating high school and starting college, so that they can work full-time and start putting away savings which will help them financially with their degree.
Online education is an alternative option that’s become more and more popular in recent times. Not only is online study available to anybody and has a range of different courses to choose from including online business programs, healthcare degrees, and other subjects which lead to great career paths, it’s also a cheaper option, with many colleges charging much less in the way of tuition fees. Because of this, opting to study for all or some of your degree online could definitely help you to avoid hefty debts. This is not only because you’ll pay less to study, but the flexibility of online degrees also means that it’s easier to work at the same time.
Apply for Scholarships
If possible, every student who’s applying for university should also apply for as many scholarships and financial aid grants as they can. Although not everybody will be entitled to a scholarship or financial aid, it’s definitely worth trying for as there are lots of different reasons as to why students are granted this monetary help. Scholarships aren’t just available for sports courses, either – there are many different organizations and bodies which will award financial support to students.
Avoid Credit Cards
Often, credit card companies will prey on students who are hoping to have some extra spending money. Yes, a credit card with a few thousand dollars ready for you to spend might seem tempting, but you also have to think about how you’re going to pay whatever you spend back. If you can get by without a credit card at college, you definitely should, as it’ll be worth it in the end when you’re in less debt.
Studying for a degree is definitely not cheap, and for many students, this means that borrowing money is unavoidable. However, there are plenty of great strategies to reduce the amount of debt that you’ll find yourself in when you grad
Credit reports can be overwhelming and may be ignored if you are unsure which habits are good or bad. There are myths that are associated with credit that are actually false.
Closing Credit Cards Will Improve My Score
Some think that just because you paid off an account that it should be closed, but this will actually hurt you as it decreases your total available credit. The best thing you can do is cut up the card, never use, and keep the account open, proving you do not spend your max capacity.
Opening a New Credit Account Will Kill My Credit Score
If you are opening many accounts, yes they will lower your score a few times for each lender that is reviewing your credit account, but if you are being responsible, the short-term score dropping a few points will actually help in the long run as your credit availability will increase as will your score.
Too Many Credit Checks Will Lower My Score
As long as you are checking your own credit your score will not be impacted, as these are called “soft pulls”. Having lenders check your credit while taking an application for a home, auto, or credit card purpose will lower your score a few points each time, so make sure that if you are getting approved for something, you will go through with it, and do not open up too many credit accounts. Though it is possible to learn how to remove credit inquiries from lowering your score.
My Income or Bank Account Impacts My Score
Although your employment history may be reported on your credit report, typically your salary will not, and for sure will not impact your credit score, as well as the amount of money in the bank. Credit scores factor in payment history, debt, and inquiries, so there is no need to worry, at least about the income and asset piece.
Bad Credit is here for Good
Well although it may seem like forever until your score goes from “poor” to “excellent”, bad credit is not forever. Sure it may take years to improve your score, but with responsible payment history, removing debt, and not living beyond your means, you will see your score steadily rise quickly. Late payments significantly lower scores so any days of being over 30 days late need to be gone, and watch your credit balance versus your availability because scores factor in your spending reaching its max.