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101 Powerful Tips for
Legally
Improving Your Credit Score
Student
Credit Repair
Page 2 of 2
If you are having trouble
repaying your student and college loans, speak to the lenders
rather than ignoring the problem. Most lenders will actually
give you a six month grace period after graduation so that you
can find a job and settle into post-college life before repaying
your loans.
If you have several loans,
your lenders may be willing to help you pool them into one
larger loan payment that requires smaller monthly payments.
Some lenders will also give a few months grace in case of
unemployment.
Read your loan agreements
carefully to find out what your student loans are like and what
is forgiven in them. If you need to, work out a different
payment schedule, seek out refinancing, or find some other way
to repay.
Only default on your student
loans as a last resort when you really have no way of repaying
your debts. In that finality, be prepared for the decision to
affect your credit score quote badly for some time.
Once you default on one
loan, it really counts against your credit rating - especially
since as a new graduate you do not have a long credit history
yet. After all, lenders who see that you have defaulted on one
financial responsibility will wonder why you wouldn’t default on
their loan, as well. After defaulting on your student loan, you
may be unable to get credit for some time and you will have to
work much, much harder to re-establish good credit.
Tip #84: Save money by
taking advantage of student discounts or student life
One of the advantages of
student life is that it is inexpensive. Student housing or
rooms rented with roommates create inexpensive living, on-campus
facilities offer great services at discount rates, and many
businesses offer student-only deals.
Try to take advantage of
these offers to make your student money stretch further so that
you have take out the smallest student loans possible. Look
around to find the best student-deal offers, ranging from travel
deals to free tax filing services, available from your campus
and from surrounding businesses.
Make use of the free
services on campus - such as renting movies for free from the
film department or working out in the school gym - rather than
paying for these same services outside the campus.
Tip #85: Follow the “cash
for wants, loans for needs” rule
Many students fall in love
with their credit cards. Credit card companies know this, too,
and routinely heavily advertise on college campuses, even
offering students free food or gifts to fill out a credit
application. While the convenience of credit cards is tempting,
it is a good habit to use credit cards only for major purchases,
saving cash for entertainment, food, clothes, and other like
items. This is because studies have repeatedly shown that those
who pay cash for items routinely spend less than those charging
or using debt cards to pay.
Using only cash for
entertainment and other small needs ensures you won’t spend more
than you have to and also ensures that you won’t up paying for
months for something that is long gone.
Tip #86: Make learning
about money a priority
Whether you attend
information sessions at the financial aid office, read about
money in books, or meet with your bank’s financial officers,
learning how to manage your money is an important part of school
life.
For many students, their
time away from home is one of the first times they are
responsible for finances - including bills. Learning to handle
this responsibility well early on in life ensures that you will
enjoy a good credit standing your whole life. Learning about
money will also help you prevent costly credit mistakes.
Tip #87: Start building
credit early - and do it well
Start building credit early
- even before college starts, if you plan on taking out college
loans. Ask your parents to sign over a bill that you pay on
time each month. Get a credit card with a low limit and a bank
account that you balance each month. Avoid opening several
charge cards at once - not only will they be hard to repay, but
having several new accounts when you have a short credit history
will actually cause your credit rating to drop. Get a part-time
job.
Each of these things can
help you establish good credit, high in turn can help you get a
good student loan rate. More importantly, establishing credit
early will help ensure that you have a long (and good) credit
history by the time you graduate from college, which will help
you with all your important, large post-graduation expenses.
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