Ways for College Students to Leave School with Awesome Credit

1.Never Pay Your Tuition With a Credit Card

Funding for school is expensive and outside of scholarships or grants there is no way around that. Many students turn to the government or loan agencies to pay these fees. Although when the numbers stack up it seems that you're in world of debt, the reality of the matter is education lenders are here to help you while the banks are not. Some students turn to credit cards to pay their tuition and THIS IS A MISTAKE! The first reason that this is a bad move is that student loans have a very low interest rates in comparison to credit lenders. In addition to that, credit is not tax deductible or deferrable. Your student loan payment is based off of your income and can be very low or put on hold until you are in a better financial position. It is important to pay your loans on time or make sure they are deferred in writing.

2.Never Co-Sign for a Friend

Because of the Credit Card Act of 2009 students must have proof of income to attain credit cards in 2014. Some students in binds refer to their friends to ask for the favor of co-signing. No matter how close you are with these friends, YOU SHOULD NEVER DO THIS! The reason is that if your friend doesn't pay the bill for whatever reason, then you will be held accountable and your credit will take the hit for them. This can not only ruin your credit reputation, but also your friendship. Co-signing is risky business and if you want to maintain an excellent standing with the credit bureaus, it is best to avoid doing so for anyone but your own children.

2.Keep a close eye on your credit accounts

When making payment on your credit card you should make sure to pay a little over the minimum at the very least. This will make sure that you are in good standing with your lender.

If you have any questions regarding what you are allowed to do with your card, the fees associated, or lowering your interest rate then don't be afraid to reach out to your lender. The fact of the matter is that you are the customer and they will do as much as they can to hold you as a client. This includes lowered interest rates, and forgiven late fees in may situations. The saying ask and you should receive should be prominent in class where help is concerned, but I also applies to the real world. Good luck!