Your Credit History Affects Lending
Borrowing has a paradoxical component that can be particularly confounding as you launch your quest for college funding. If you do not have established credit, as is the case with many new borrowers and college-aged students, it can be difficult to secure a loan. Having no credit is better than having bad credit, but only by a slight margin.
It is important to protect your credit rating from day one, but at college time your greatest financial successes to date might be paying your phone bill on time, or perhaps managing a revolving credit card account. By all means, put your best foot forward by exhibiting responsible fiscal behavior, but don’t expect banks and credit unions to lend to you without a significant history of positive credit outcomes. (tovább…)