It’s time to give those credits some credit!

Student Credit

Card industry analysts say that a large number or recent graduates have the potential to save a fortune as years go by just by establishing good credit. “It’s imperative that recent high school graduates begin building credit as soon as possible,” says CardHub.com, “Best Credit Cards for 2015 Graduates.”

In order to create a strong credit history, cards must be used properly, this is vital for accessing the best of deals. LowCards.com’s Bill Hardekopf says, “Building your credit history is very important at this age. When used responsibly, a credit card can help you achieve a higher credit score.” Card experts say that lower rates and access to various benefits is not all a good credit score can offer.

Jill Gonzalez of CardHub.com says, “Employers, deciding on who to hire, sometimes also check a young person’s credit rating. If a person pays on time, that can potentially help the person get a job.”

How can someone improve their bad credit or start building good credit from the start?

The key is to use a secured card if you are a young person looking to build good credit making a fresh start. This secured cared will put up a deposit in order to protect the cardholder from potential payment issues. The credit score will improve if all payments are made on time.

Remember, the higher the credit, the lower the rates and qualify the cardholder with benefits that are not accessible to those with bad credit ratings. Matt Schulz of CreditCards.com suggests to follow sensible practices and quickly.

Schulz says , “Including mortgages and car loans, over the course of a lifetime we could be speaking of six figures in savings.”

Within four years, Mr. and Mrs. Schulz cleared their college debt of $10,000. “Today, we enjoy the best card offers and have flown to Europe, thanks to frequent-flyer miles we’ve earned on our cards,” Matt comments.

Jill Gonzalez believes parents should educate their graduates as much as possible on using credit cards. Including in that education is making the card user aware of the advantages of what are called “transactors” over “revolvers.”

The transactor acts to pay off balances monthly and with no interest. However, a revolver can amount in 20% annual interest on balances. Such things can lead to very poor credit.

Is there a way your dearly young grad can avoid this? Of course! Recommended by industry experts, these cards are here to help your graduate with access to the best deals:

  • Capital One Secured: With a small deposit, you can have a credit line and then use the card as an ordinary credit card. This includes no annual fee!
  • Discover It for Student with $20 Cash Back: With this, within three months of approval, you can earn $20 cash back after your first purchase with no yearly fee!
  • Journey Student Rewards from Capital One: On all purchases, you earn 1% cash back. This also has no annual fee!

 

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