“But why now?” you must ask. Isn’t college supposed to be the last year you’re actually allowed to have fun, and be responsibility-free? Before you scream YOLO and party with your friends, read through the quick list below to give you a few things to think about.
If you put the partying and the studies aside, being in college gives you the chance to practice life strategies and techniques you can apply in the real world after you graduate. This, thankfully, includes your money management skills.
When you’re already working, you wouldn’t have enough time to study financial terms you’ll be encounter plenty of times in your adulthood. If you’re already a credit card owner, or if you’re going to own one eventually, you must be familiar with credit card jargon. Your parents aren’t always going to have to read the bank statements or pay your bills for you.
Developing your credit know-how as early as now is going to be helpful to you in the near future. The more you know when or how to use your credit card, the more you’re going to avoid falling into debt. Assessing your spending habits every month will give you an idea how you’ll handle your future habits. So if you’re wondering why you need to start in college, it’s because at this time, you still have the luxury to fix it (or cry like a baby and call for your mommy to help you).
An excellent credit score means you’re building an excellent credit reputation. This means you’ll experience easier application approvals for personal or housing loans, or applying for new credit cards. God forbid you get into a little debt dilemma, but it’ll be easier to apply for a debt consolidation loan if you manage to prove that given the right circumstance, you’re more than able to pay for what you owe. This reflects on your character as a person, too. If you’re trustworthy enough with money on your hands, credit card companies will love you.
If you add everything together, and become a money guru with an excellent credit score, you’re going to be on smooth sailing with your finances when you’re an adult. For example, you’re going to be confident enough to open a new credit card focused on rewards or travel. You’ll eventually enjoy perks too, brought on by your spending! Also, potential employers who look into credit scores won’t ignore resume because they know you know how to handle money.
To make sure you’ll be able to build to an excellent credit history, make sure you pay your bill every month—and on time. Practice using your credit card only when you need to use it. Don’t abuse your credit limit. Pay the credit back in full when you can. Don’t open new accounts unless you need to. Maintaining and using only one account is going to be great on your record. With the right decisions, you can make your credit card work for you as early as now, instead of the other way around—and avoid falling into debt or having insurmountable money troubles in the future.
Mark Yasay is a social media enthusiast and a writer for MoneyMax, the Philippines leading comparison website. This portal helps individuals in saving money by comparing credit cards, personal loans, insurance and broadband plans.