The seeds of a good career are sown in student life but few students really
know that the foundations of a good credit history also take shape during this
vital period. If a student doesn't care about developing a good credit history
during his student life, he or she will face difficulties when he gets out of
the college. Here are few things which will bother a student without any credit
history or having a bad credit history as he steps out into the real word.
Finding an apartment
The landlords will check the credit history before renting out an apartment
and if he finds that there is no credit history or a bad credit history, things
will become difficult. Chances are good that he will refuse the deal or charge
huge amount of money as security or advance before renting out the apartment.
Getting the utilities
Electricity, gas, water supply companies all check the credit history before
providing the services. The idea is to gain confidence about your financial
position. If they do not find anything to bank upon from your credit history,
they will ask for advance deposits before providing their services.
Getting the car insurance
The same things apply to car insurance companies, they will charge high premium
rates before giving any insurance to a person without any credit history or
less than perfect history .
Getting a loan
Nothing drives away the lenders more than a person with no credit history or
a bad credit history. Lenders can't get any idea about what is your repayment
capacity and repayment record, so they won't lend you money. Even if someone
agrees the interest rates and repayment terms will be stricter and there will
surely be a demand for collateral.
Getting a credit card
With no credit history or bad credit history getting a credit card becomes
increasingly difficult. If the concern is bad credit then the interest rates
will be very high and repayment terms tough. If the credit card companies do
not find any credit history, they will ask to start building it before issuing
a 'real credit card'.
Getting a job
The first challenge students face in real world is to get a decent job. Almost
all employers check the credit history of students before offering them any
employment. Chances are good that if you don't have any credit history at all
or have a poor credit history-- you won't get a dream job!
So, the fact remains that building a good credit history during the student
life really matters. It starts with getting a good student credit card, using
it wisely, not over indulging and repaying the credit card balances on time.
This is all that takes to build a good credit history. It will ensure, that
your career and dreams aren't hampered due to lack of credit history.