Unit 6 Project

Jazmin seegars, Hawa Aglhali, Jessica Mellon

High school students

If you’re responsible for some of your own bills ask your provider to report your positive payment history to the credit reporting agencies. Talk to a bank or credit union about opening a checking account, savings account or borrowing a small loan. If you borrow, instead of spending the money put it in a savings account and have the monthly loan payments automatically debited from that account. You won’t be tempted to spend the money and you’ll have a positive payment history that’s reported to credit reporting agencies. If you’re over 18 and a credit card is an option you’re interested in, look for one with a low, fixed interest rate, and no annual fee. then use your credit responsibly by paying the bill in full, making your payments on time and never using your entire credit limit. Once you’ve established credit, it’s important to maintain a good credit record and avoid getting into too much debt. When you get a loan for college if your debt is less than your annual income, you'll be able to repay your loans in ten years or less. If your debt is greater than your annual income, you'll struggle to repay your loans. This means you'll be in debt for 20 years or more. Students who borrow too much end up delaying life cycle events like buying a car, buying a house, getting married, having children, and saving for retirement.
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College students

If you get a job and can provide proof of income, apply for a card in your name. Once a student is able to qualify for a regular card you must choose the correct one, not all credit cards are the same. Consider putting small, recurring charges on your card. Like things such as groceries or website subscriptions that you won't have trouble repaying at the end of the month. Keeping your debt low will ensure that if there is emergency expense, you'll still have plenty of credit accessible. When you are first building credit, do your best not to carry a balance on the card. Pay all your bills on time, and traffic fines or they can ruin your credit score.

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