A metamorphism of great importance is the transition from teenager to adult. The once small caterpillar blooms into an eager butterfly that is ready to take on the world, and the chrysalis of adolescence is broken. Ignorance is no longer a legitimate excuse. This is the real world. The destination of this butterfly is typically college, which brings forth new privileges and challenges, and matters of money are now the student’s responsibility. Establishing and maintaining good financial credit during one’s college years is absolutely critical. Without doing so, the student will not gain any sort of independency or knowledge regarding the complexities of finances, and an entire future can be diminished. After an approximate eighteen years of relying on the piggy banks of their parental units, regulating money on their own delves into foreign seas. Money itself is very comparable to water, as it is necessary for nourishment, yet can also be the root of destruction. Learning of what credit actually consists of can cause waves of overwhelming confusion, and the slightest mistake forebodes a tsunami of problems. Of course, such storms requires years of repair to recover.
The student is now the architect of their future, and constructing a suitable economic path has the potential to mandate an entire lifetime. To achieve this stability, the blueprint must be illustrated during their college years with care and precision.
Individuals spend an endless amount of time concerned with their image, and constantly worry about how people perceive them. Young adults do not always consider this to be relevant to their bank accounts. A student should recognize that credit scores are comprised of many factors including credit inquires, types of credit, length of credit history, payment history, and total amount owed. According to Bank of America, the average national credit score is 692, which means a healthy score ranges from around this to 850. A simple three digit number truly reveals one’s financial status.
A college student must acknowledge that creating a strong financial identity is like building a snowman. First, the base, otherwise known as the actual establishment of credit, is typically available during the very first week on campus. An enticing table is often set up, perhaps to break the ice, with a sign that reads “Visa,” and eyes will beam like a light bulb with an idea. They flock like vultures, as this is the final step towards becoming a capable adult, while creditors mischievously administer the cards. Students are asked for standard information, rewarded with a free tee-shirt, and are given their very own Visa card. The second stage begins before they know it, and students are now responsible for structuring their account and keeping up with their bills. Missing payments can severely impact one’s credit score as mysteriously as a ghost. It will always come back to haunt irresponsible credit users. Keeping in mind that the lower a credit score, the higher one’s…