What are taxes? What is a mortgage? Do you need life insurance? How do you budget? What is price matching? Am I too young to invest? What even is interest on a credit card?
We never understood why the education system doesn’t have a LIFE EDUCATION class because when we left high school, we both got curbstomped by life. In no way was it due to our family not teaching us good ethics, but society not having taught us the tools required to be a functioning adult! Here is what we have learned so far that may avoid you having a right hook to the face upon graduating (or even after).
There will be a downloadable budget grid at the bottom.
WHAT ARE THEY?
Simply put, credit is an understanding between you and a financial institution that you will pay them back at a later date. This group agrees to lend you money but expects you to pay it back in a certain amount of time.
If you do not pay your outstanding balance every month, you will be charged an interest rate as you went above the agreed time allowed to pay it back.
If you are over 18 and have a stable source of income, or can have a cosigner and are a student, you may qualify for a credit card.
Before you go and submit a credit card application, I would recommend contacting one of these three companies and getting a copy of your credit score.
Equifax – 800-685-1111.
Experian – 888-EXPERIAN (397-3742).
TransUnion – 800-916-8800.
WHY WOULD I WANT MY CREDIT SCORE?
Your credit score shows your credit history. If you have missed payments, applied for any type of credit or anyone put in a complaint about you, it would show up here. Financial institutions will use your credit score to determine the amount to lend you and at what interest rate. The worst your credit score, the higher your interest rate will be.
HOW CAN I BUILD MY CREDIT?
Number one is to make sure that your bills are paid on time. This will not necessarily elevate your credit score but will definitely help from it going down.
Consider getting secured credit card! You will have to put in a deposit, usually from 50 to 100 percent of the credit line but if you have no credit, this is a great way to start.
You can also ask someone who has a good credit history to cosign with you if you do not qualify for the credit or have the money for a deposit. Be careful with this however, if you cosign, you are just as responsible as the person who owns the card for payments. Your credit score will be dinged if anything goes south as well.
WHAT HAPPENS IF I GET TURNED DOWN?
Rejection is never nice. The first step would be asking the company why? It may be that you haven’t been at your job long enough, or your income isn’t high enough (YET). Some companies have higher standards for applicants so make sure you research minimum criterias before applying for any credit product.
Many credit cards do have an annual fee that typically range from 15-55$
Credit Card Rate Report
National Average 15.44%
Low Interest 12.24%
Balance Transfer 14.69%
Cash Back 15.61%
Instant Approval 18.09%
Bad Credit 23.01%
MAKE AN APPOINTMENT WITH A FINANCIAL ADVISOR AT YOUR LOCAL BRANCH FOR MORE INFORMATION.
Remember to shred everything that includes your name, address and any identifiable personal information, ESPECIALLY credit card statements.