Credit management is no more a herculean task for the new grads:
Four simple tips to control it!
The college students after they graduate find it a herculean task to manage their budget and make important financial decisions. The end of college life means a wave of new challenges of the real world. Well, the fresh grads primarily focus on sending resumes to the their prospective employees to bag a dream job. However, in this transitional phase they need to focus on their personal finance as well. But they need to be aware of the hard core fact that “Rome wasn’t built in a day.” So, building credit history may take time, diligence as well as patience. If you make wrong financial decisions, then you may face problem in obtaining loans in future. Well, you’re not required to panic as you can follow some of the effective credit management tips given below.
Here are four credit management tips that you can consider if you’re thinking about your personal finance seriously:
1. Review your Credit Report: The US consumers are entitled to one free credit report every one year from the www.annualcreditreport.com. Once you get the report, make sure you review it to find any discrepancies in the credit report. Therefore, your primary task is to find negative but incorrect errors in it. Well, when you get a job after graduation, you may aim to buy your dream home. When you apply for a mortgage loan, your loan application and credit report can be reviewed by the creditors for loan approval. You’ll be surprised to find that prospective employers review credit report of the applicants for screening them.
2. Minimise the use of credit cards: Recently, most of the undergraduates are found using credit cards but they fail to show financial responsibility. Well, now it’s time to break the habit as you’re required to exercise financial discipline with due diligence. After graduation, you embark on new journey of your life as you set your new career and engage in taking other responsibilities. As a matter of fact, it can be a herculean task tackling on more credit card debt. Therefore, you need to start designing a realistic spending plan. Make sure you increase the use of cash over cards. It is easier for the credit card companies to lure the young consumers with lucrative offers. Try to keep your plastic card aside for emergency purpose. Avoid using your card for purchasing luxury items that you may not be able to afford presently. It is advisable to buy things on cash instead of cash.
3. Create debt repayment plan: Most of the recent graduates have staggering debt and juggle between credit card and student loan debt. Well, creating a debt repayment plan can be a smart move to get out of the rut. If you’re unable to solve your problem on your own, then you can take help from credit card debt settlement online companies. However, if you’re planning to pay off your debts on your own, you can start by calculating your total amount of debt. After that, you can consolidate your high interest multiple credit card bills into a single monthly payment. You can transfer the total balance to a new introductory offer low interest card. As a result, it can help to lower your monthly payment to an affordable amount. If you diligently work on paying off your debts, then you can get rid of the financial liabilities with ease.
4. Budgeting- A solution to your problem: If you always disliked the concept of budgeting in your school days, then you have to make up your mind to include it in your daily life now. Budgeting can help you track your expenses and income; as a result, you can avoid splurging on unnecessary things. You can keep track on the amount you spend each month and where your money is draining. So, it can be easier to save more money when you’re on a budget plan. You can use the saved amount to pay off your debts without borrowing a penny.
Therefore, you need to keep the above mentioned points in mind if you’re planning to manage your credit immediately after graduation.