Students learn to juggle credit and test scores

     The Career Center held a workshop titled “From Test Scores to Credit Scores” Feb. 20 as part of the GCSU spring Career Expo.
     Kisstina Webb, a certified consumer credit counselor, came from Consumer Credit Counseling Service in Macon to speak on everything from different types of loans to what is found on a credit report.
     “Recently we found that college students are increasingly in debt, normally with $20,000,” Webb said. “A lot of students have not only student loans but credit cards with them too.”
     Not paying credit card bills and loans on time cause consequences that many people do not realize until it is too late. Bad credit scores could cause car insurance rates, apartment rent, house rent and credit card interest rates to increase.
     The universal default rate clause in many contracts states that a late payment on one thing, means that all other people you have credit with can increase interest rates or lower limits.
Bad credit can also hurt when it comes to obtaining a job. Employers see people with better credit scores as more dependable and reliable, Webb said.
Leigh Griffith, senior liberal arts major, agrees with Webb.
     “So many students get loans for college. So we need to be aware of interest rates, and how soon we have to pay back the loan,” Griffith said.
     According to a pamphlet, “Credit Management” sponsored by Consumer Credit Counseling Service, credit has advantages and disadvantages. Some advantages include improved way of living, being able to take advantage of sales, able to purchase large items and establishing credit.
     Some disadvantages are that future earnings are already spent, provides a false sense of security, credit cards may be lost or stolen and the temptation to overspend.
     “It’s a double-edged sword,” Webb said. “You just have to be careful and use it wisely.”
     Webb suggests putting at least 20 percent down on anything bought on credit. She also stressed not going anywhere with “Title” or “Finance” in the name. “Title” places have an interest rate of no less than 112 percent and “Finance” places have no less than 80 percent.
     There is much more to be aware of when considering credit. Everyone is entitled to two free credit reports from all three credit bureaus, but obtaining actual credit scores cost money.    Most utilities do not report to credit bureaus. Too many open credit cards can be harmful when purchasing a house; mortgage companies do not want people to be able to get into more debt when paying off their loan. It negatively effects credit scores the more you apply to credit cards.
     The most important thing to remember is just how important credit scores are when it comes to life.
     “A lot of times you don’t understand how important your credit is until you mess yours up,” Webb said.
   
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Posted by Colonnade Archives on Feb 29 2008. Filed under News. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry