Managing Student Credit

With today's rising education prices, students are lucky that they can get a degree. Many university students leave school with a degree and an average of £12,000 or more in debt.

This is because most students find that they need to borrow money while they are in school to pay for classes, books, laboratory fees, and just the plain cost of living on campus. Most student loans do not require the first payment on it until the student gets a job or six months after graduating, which ever come first.

 

In order to eliminate some of their debt during the duration of their studies, many students take on part time jobs. Unfortunately when combined with time for their studies, students cannot take on jobs that are full time and pay better. Instead of taking on more loans to pay for their schooling and their cost of living expenses, students simply need to learn how to manage their credit. Here are a few tips to help students keep their after college debt to a minimum and manage their credit while they are there.

1. Students should not over commit themselves while they are in school. All loans and other financial agreements will need to be paid on time, and if they are not then the credit agencies will be informed and the student's credit will be affected. This could cause problems later in life when they go to get credit for other things. By managing their spending and not over committing themselves while they are in school, they will be able to focus on their studies.
2. All students should regularly check their credit  report so that they are aware of what is on it at all times. If they take on joint credit commitments while at university with a roommate and one of you does not pay the bill, this will adversely affect both of your credit reports later in life. Additionally, if your roommate shares the same last name as you and they get into a credit problem it could accidentally show up on your credit report instead. By checking on your credit report regularly, you can stop situations like this before they get out of control by requesting a Notice of Disassociation and proving that you are not financially linked to these people when a financial agreement has finished.
3. Plan ahead of time and always keep an eye on how much money is coming into your account and what is leaving your account each month for bills and living expenses.
4. Always pay credit and store card bills on time and try to pay off as much of the current balance a you possibly can. This will keep you from having to pay extra interest on the purchases you use the card for.
5. Register on the Electoral Roll as soon as possible so that if you apply for credit potential lenders can confirm your address quickly and efficiently.

6. Stay in touch with all of your creditors and lenders so that if you have a problem paying your bill they will work with you when you get a full time job. If you ignore your financial obligations, your creditors will be less likely to help you in the event of a problem.





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