Recent graduates will soon learn that having a good credit score opens up doors. Literally-- you're more likely to get approved for apartments if your credit history is strong. Here are some tips for ensuring that your credit score reflects positively on you as you enter the world outside of Brandeis.
1) Shop around
Search for credit cards with the lowest interest rate and fees. Be sure to read the fine print because sometimes cards will have low interest rates but high fees (or vice versa). Cards that have an introductory zero interest period are desirable, as are those that come with rewards like cash back or discounts at retailers you already frequent. Make sure you learn what the APR is for any card you are considering, and find out how it is calculated.
2) Limit the number of cards you have
Applying for lots of credit cards can hurt your credit score, so it is wise to start off with just one card. Over time as you display your ability to keep a zero balance and pay bills on time, your company will increase your available credit. Credit utilization is an important component of a credit score.
3) Pay off your balance each month
Because your credit utilization ratio (amount of credit you are using vs. the amount of credit available to you) is such a large component of your overall credit health, you should make sure you pay off your credit card balance in full every month. By doing this you will also avoid interest charges and if you have a rewards credit card, you'll end up earning money by using a credit card. Have the credit card companies pay you, not the other way around!
4) Never pay late
It's a good idea to set up automatic payment through your checking account for your credit card(s). One late payment can impact your credit rating, so paying on time is very important. You can also try using an app or a calendar to send you alerts a few days before your payments are due.
5) Review your monthly statement
Be sure you are carefully reviewing your monthly statement to be sure that there are no fraudulent charges or mistakes. Being vigilant about checking your credit will help you avoid the impact of things like identity theft.
6) Control impulse spending
If you are the type to spend on a whim, don't keep your credit card(s) with you in your wallet. Instead, use your card(s) for grocery trips or specific expenditures that happen a few times per month and pay the balance off in full. Try to only keep your actual money (either in dollars and cents or in a debit card) on you when you're out and about.
7) Avoid cash advances
Cash advances will accrue interest as soon as you take the money out and will come with hefty fees. Avoid treating your credit line like cash.
Current undergrads should keep all of this in mind when making credit card selections. Credit cards are excellent tools for building credit and earning rewards, but if used carelessly can become expensive burdens that will hamper your chances of securing better apartments and even finding employment.
1) Shop around
Search for credit cards with the lowest interest rate and fees. Be sure to read the fine print because sometimes cards will have low interest rates but high fees (or vice versa). Cards that have an introductory zero interest period are desirable, as are those that come with rewards like cash back or discounts at retailers you already frequent. Make sure you learn what the APR is for any card you are considering, and find out how it is calculated.
2) Limit the number of cards you have
Applying for lots of credit cards can hurt your credit score, so it is wise to start off with just one card. Over time as you display your ability to keep a zero balance and pay bills on time, your company will increase your available credit. Credit utilization is an important component of a credit score.
3) Pay off your balance each month
Because your credit utilization ratio (amount of credit you are using vs. the amount of credit available to you) is such a large component of your overall credit health, you should make sure you pay off your credit card balance in full every month. By doing this you will also avoid interest charges and if you have a rewards credit card, you'll end up earning money by using a credit card. Have the credit card companies pay you, not the other way around!
4) Never pay late
It's a good idea to set up automatic payment through your checking account for your credit card(s). One late payment can impact your credit rating, so paying on time is very important. You can also try using an app or a calendar to send you alerts a few days before your payments are due.
5) Review your monthly statement
Be sure you are carefully reviewing your monthly statement to be sure that there are no fraudulent charges or mistakes. Being vigilant about checking your credit will help you avoid the impact of things like identity theft.
6) Control impulse spending
If you are the type to spend on a whim, don't keep your credit card(s) with you in your wallet. Instead, use your card(s) for grocery trips or specific expenditures that happen a few times per month and pay the balance off in full. Try to only keep your actual money (either in dollars and cents or in a debit card) on you when you're out and about.
7) Avoid cash advances
Cash advances will accrue interest as soon as you take the money out and will come with hefty fees. Avoid treating your credit line like cash.
Current undergrads should keep all of this in mind when making credit card selections. Credit cards are excellent tools for building credit and earning rewards, but if used carelessly can become expensive burdens that will hamper your chances of securing better apartments and even finding employment.
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