2013년 12월 3일 화요일

About 'average debt of college students'|Trends in College Tuition vs. Bachelor’s Degree Wages; Interesting Demographics of Student Loan Debt History







About 'average debt of college students'|Trends in College Tuition vs. Bachelor’s Degree Wages; Interesting Demographics of Student Loan Debt History








One               of               the               most               important               aspects               to               financial               security               involves               maintaining               an               appropriate               credit               score.

For               many               college               students,               credit               cards               have               become               a               way               to               extend               not               only               the               finances               associated               with               daily               living               but               also               a               method               in               which               to               maintain               entertainment,               often               to               an               extreme.

With               many               college               students               obtaining               student               loans,               it               is               crucial               to               avoid               surmounting               credit               card               debt               as               this               will               only               lead               to               a               double               whammy               once               college               life               is               over.

Teaching               children,               especially               during               high               school,               the               concept               of               credit               scoring               will               work               to               ensure               more               educated               financial               decisions               are               made               in               college.

Credit               scores,               known               as               FICO               scores,               are               scoring               mechanisms               provided               by               the               three               major,               national               credit               bureaus.

While               each               credit               bureau               will               provide               a               difference               FICO               credit               score,               the               average               of               these               scores               is               a               good               indicator               of               the               credit               worthiness               of               a               college               student.

While               many               college               students               rarely               have               established               credit               scores               by               the               time               they               reach               college,               credit               card               companies               will               commonly               prey               upon               the               student's               lack               of               knowledge               resulting               in               the               student               carrying               a               large               credit               card               debt.

As               a               parent,               educating               the               student               in               FICO               scoring               is               crucial               to               making               wise               investment               and               financial               decisions.
               The               first               lesson               in               FICO               credit               scoring,               in               teaching               students,               is               the               timing               of               scores.

With               the               three               credit               bureaus               providing               varying               scores               the               one               item               they               do               have               in               common               is               the               need               to               establish               at               least               six               months               of               credit               history               before               the               FICO               credit               score               is               established.

As               credit               scores               are               crucial               to               the               independence               of               the               college               student,               obtaining               one               credit               card,               with               a               low               dollar               limit,               will               provide               the               college               student               with               an               opportunity               to               establish               credit               and               create               a               FICO               credit               score.

However,               ensuring               the               college               student               only               used               the               card               for               necessities               will               be               challenging.
               When               establishing               a               credit               card,               working               to               keep               balances               low               is               key               to               obtaining               a               higher               FICO               credit               score.

Teach               your               college               student               to               use               the               credit               card               lightly               so               as               to               ensure               the               credit               limit               to               credit               balance               ratio               remains               low.

As               a               general               rule,               the               card               balance               should               never               exceed               30               percent               of               the               allowed               credit               limit.
               In               addition               to               maintaining               a               low               credit               balance,               college               students               should               be               strongly               urged               to               limit               the               credit               cards               to               one.

Carrying               multiple               cards               is               not               a               recommended               financial               avenue               as               the               three               major               credit               bureaus               do               not               boost               FICO               credit               scores               when               unnecessary               credit               cards               are               obtained.
               As               with               any               financial               investment               tool,               credit               cards               can               provide               a               key               life               lesson               to               the               college               student.

While               avoiding               credit               cards,               at               all               cost,               is               not               recommended,               the               use               of               credit               cards               should               be               strictly               limited               while               attending               college.

Rather               than               use               credit               cards               as               a               means               for               paying               for               living               expenses,               encourage               your               college               student               to               obtain               a               low               limit               card               strictly               for               the               purpose               of               creating               and               boosting               a               FICO               credit               score.

In               doing               so,               your               college               student               will               graduate               from               college               with               a               degree               as               well               as               a               great               beginning               to               a               stable               financial               future.






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