How College Grads Can Get a Near-Perfect Credit Score
As you transition from a college student to a college graduate, there are many things that will begin to change. You will now need to make life-changing decisions and you will be off to enter into your chosen career field. It can be both liberating to be free from your studies, but it brings on some pain too such as paying back your student loan debts and maintaining a solid credit score.
But, wait! Can that even be done? Yes, of course it can, but it will take some work and you cannot simply expect to have an A+ score without any effort at all.
You may be thinking at this point that your credit score is not that important, right? You have your entire life to build it up. But, unfortunately, that is not the case. Whether you want to rent an apartment, purchase a home, lease a vehicle, or even apply for insurance, your credit score matters.
Your credit score shows your history of paying things on time and if you have too many blemishes, credit companies are not going to want to take a chance on you and they will turn you away quicker than it took for you to walk from your car to the door.
Typically, if you are looking to rent a home or you want to apply for a credit card, the companies are often looking for a credit score of at least 675 or higher. This gives them a good idea as to whether or not you are responsible and if you can pay your utilities, rent, and other bills.
How is a Credit Score Calculated?
Your credit score is divided up into different sections and each one holds a weighted percent in the number. For instance, you on-time and late payments make up 35% of your credit score and the amounts you owe equal a total of 30% of your score.
Your credit history and the type of credit that is used is not as heavily weighed and each only makes up 10% of your score.
As you can see, it is important that you keep low balances, if any at all, and always make your payments on time. This is the only way that you are going to have a good credit score.
How Can I Build Up My Credit?
If you do not have any credit right now, it is important that you start building it up so that you can get the things you want and need later on in life. But, how can you build your credit? Well, it is quite easy and we will tell you how below.
1. Open a credit card. If you do not have a credit card or any line of credit, open one. You will be able to build up your credit by simply using the card and then paying off the bill right away. Of course, do not overspend and always pay off the amount once you have applied it to your card.
2. Always pay on time. It is important that you ALWAYS pay your bills on time each month. It takes a long time to build up your credit report, but it only takes one late payment to have serious negative consequences on your credit score.
3. Don’t use all of your credit up. You never want to use up all of your available credit as this looks bad for you. Keep the amount that you owe on your credit cards low and always make sure that you are paying on off before you start charging the rest.
4. Monitor your account. Always monitor your credit account to ensure there are no negative blemishes or incorrect information. If there is an error, you need to work to resolve it immediately to protect your score.
If you are looking to get a perfect credit score, it will take some work, but it is possible. Your credit score is more important that you think and you need to protect it as best as you can. By following the information above, you can work towards having a perfect, A+ score in no time.