Where's my money at? Tips for 'real world' financial success
James Bassett
Issue date: 4/29/08 Section: Opinion
So as we wrap up the end of classes and the 20-page thesis, three group projects and (my personal favorite) the last, week-before-the-final, midterm, we are rightfully treating ourselves to some relaxing days laying on the quad, barbequing and playing volleyball.
For some of us, the nasty fact that these are some of our last days to lazily zone out during an hour-long philosophy lecture is skulking in the backs of our minds.
Normally getting adjusted to post-college life is hard enough. However, with all the news about a deflating economy, choppy job market and skyrocketing prices it's starting to look a little scary. While it can be a little intimidating, there are some ways to keep yourself on solid ground. Here are tips I've gleaned from professors and seminars on the best ways to come out ahead in the years down the road.
The first subject to tackle is credit. I know most people immediately jump to credit cards and that "extra" variety that we get for sitting through two-hour long lectures. But in reality, credit is made up of many different items and plays a pretty big role in your life. You may not be thinking about it now, but in a few years down the road when you want to eventually buy a house, your credit score is basically going to determine what you will be paying in a mortgage. And, if you want to think about things in a more relevant way, nowadays landlords are checking credit scores before they rent out apartments and use it in screening applicants. Chances are good that when you get an offer for that job you have been hoping for they will be asking you for a copy of your credit report along with the background check.
So where does your credit score actually come from? Well all of your information is collected by one of three major credit bureaus and they come up with a number between 300 and 850 which says how likely you are to default on loan; the higher the number, the better your score. This seems simple enough, but you need to know exactly what these places are looking for.
For some of us, the nasty fact that these are some of our last days to lazily zone out during an hour-long philosophy lecture is skulking in the backs of our minds.
Normally getting adjusted to post-college life is hard enough. However, with all the news about a deflating economy, choppy job market and skyrocketing prices it's starting to look a little scary. While it can be a little intimidating, there are some ways to keep yourself on solid ground. Here are tips I've gleaned from professors and seminars on the best ways to come out ahead in the years down the road.
The first subject to tackle is credit. I know most people immediately jump to credit cards and that "extra" variety that we get for sitting through two-hour long lectures. But in reality, credit is made up of many different items and plays a pretty big role in your life. You may not be thinking about it now, but in a few years down the road when you want to eventually buy a house, your credit score is basically going to determine what you will be paying in a mortgage. And, if you want to think about things in a more relevant way, nowadays landlords are checking credit scores before they rent out apartments and use it in screening applicants. Chances are good that when you get an offer for that job you have been hoping for they will be asking you for a copy of your credit report along with the background check.
So where does your credit score actually come from? Well all of your information is collected by one of three major credit bureaus and they come up with a number between 300 and 850 which says how likely you are to default on loan; the higher the number, the better your score. This seems simple enough, but you need to know exactly what these places are looking for.
Viewing Comments 1 - 4 of 4
Andy
posted 4/29/08 @ 6:26 PM EST
James, fyi, I've worked in the credit industry for several years and your article is great but I have a correction. Checking your credit does not hurt your score. (Continued…)
Amazon Herbs
posted 5/11/08 @ 6:39 AM EST
It is good to check your credit every once in a while to see if there are mistakes on it. This happens sometimes. Then you tell them to correct it.
Keith
posted 6/24/08 @ 4:48 PM EST
Reader should not forget they can get their free yearly credit reports mandated by law from annualcreditreport.com.
For those more obsessed with knowing every change to their score there are credit monitoring services but more people don't need that. (Continued…)
payment processing
posted 4/01/09 @ 10:32 AM EST
I am very pleased to see that someone really thought about us and shared all these tips with us. I have been waiting for this moment for a long time now because I want to start a business so much, but I didn't have the opportunity and the necessary advice. (Continued…)
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