For recent college graduates, the end of college means entrance into the ‘real world’. While new grads tend to focus on pressing issues like submitting job applications and sending out resumes, it is important to pay attention to personal finances.
1.) Choose cards selectively and apply seldom: Be selective about which cards you apply for, and only apply for one credit card at a time. Most credit applications result in an extensive inquiry, and if you have too many inquiries in a short period of time, you may be less likely to be approved by lenders when you apply for additional lines of credit in the future.
2.) Use your cards wisely: To build strong credit, use your credit card to buy everyday items, preferably things that you’re getting rewards points and cash back for, and pay the bill in full every month.
3.) Pay down your student loans: If you have a student loan payment that’s too high, your best option is to negotiate with the lender and try and make a reduced payment every month. You’ll be paying down the debt at a slower rate, but it’s a start. You may also consider consolidating all your loans into one, which may help lower monthly payments and better manage your outstanding debt. Deferment and forbearance are not wise options. These simply postpone the inevitable.
4.) Pay your bills on time: Your payment history contributes to 35% of your credit score, and on-time payments matter. Set up alerts and use online (automatic debits from your bank account) payments to help you stay current when it comes to your bills. Any payment more than 30 days late will likely be reported to the credit bureaus as delinquent.
5.) Check your credit report: Go to www.annualcreditreport.com and check your credit report at least once every year. It’s free to do! A recent report by the Federal Trade Commission found that 20% of consumers had an error on at least one of their three credit reports. Errors may impact your ability to receive financing on things like a mortgage or car loan or limit your access to the best credit cards.
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If you are in a financial crisis and are considering filing bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.