Post college financial decisions are crucial for anyone who is now starting to build a career after years of going to school. Whether you graduated with a stellar or poor credit score, it is important to avoid certain financial mistakes that will have consequences in terms of finding employers or lenders.
One of the least known actions that affects credit rating is opening or starting a new bank account. Know that switching from one bank to another results to a minor fall in your credit rating. Many, if not all, credit unions and banks check credit reports before allowing you to open a checking account.
Since transferring from one financial institution to another can weigh on your credit report, it is best to consider first the reasons why you want to switch banks. Think about whether or not your reasons are worth the risk and the hassle.
Another thing that you should be cautious of if you wish to maintain good credit rating is ignoring traffic tickets. You have to make sure you pay off all parking and speeding tickets in a given amount of time since these unpaid violations will be reported to credit bureaus if you do not pay them at the right time.
Other than transferring bank accounts, another action that requires hard investigation on your credit is when you apply for a cell phone provider. If you already have a low score in your credit report and you wish to do something else that requires good credit rating, it is best to hold off on the new cell phone agreement first.
You should also clear off missed student loan payments since they will definitely reflect on your credit report. Consider student loans as a good or necessary debit since you are investing on your education for a better future. Now that you have finally finished college, you have to pay your debit to make sure you do not have outstanding bills to settle.
Other activities that you should be cautious of if you wish to maintain good credit rating include canceling membership in a gym, closing credit card accounts that has zero to negative balance, submitting more applications for credit cards, and even renting vehicles.
Importance of good credit for fresh graduates
Although there are bad credit loans that can help you get cash if you badly need it, it is still best to maintain good credit score especially for fresh graduates. Most employers today include credit history checks to see if you have debts to pay. According to reports, this has been part of the recruitment process for many companies. They believe that an applicant who can manage his or her finances can be an asset to the company.
If you are one of the millions of fresh graduates who need to pay off student loans, do not be frustrated. Now that college is over, you have better chances of getting a job whether or not you have a good credit record. However, you have to make sure you keep improving your score instead of making it worse.