Care about your future?
Care about your credit now
A bad credit score can hurt your future borrowing power
by Dorothy Wong
Why should college students care about their credit standing? Because students’ future credit and financial status depends on it. Whether applying for a credit card, a loan, an apartment or a mortgage, creditors will take into account one’s credit standing before stamping the approval on the application form.
A credit score ranges from a low of 300 to a perfect 850. People with scores above 700 are usually charged relatively lower rates for borrowing money; those with scores below 600 are charged with higher rates, as they are considered risky.
Below are tips from bankers on how students can establish credit. Establishing credit is actually fairly easy. Keeping a good credit rating is harder.
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Managing Your Finances
You think we would leave
you hanging on this one?
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Open a bank account
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Open an account with your individual name. This is the first step prior to applying for a credit card. Don’t overdraw your account.
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Be Employed
If you do not have a job, it is likely you will be denied credit. Having a stable income demonstrates your ability to pay the debt.
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Apply for a credit card
You want to avoid being denied a credit card as it harms your credit. Therefore, apply only for cards whose requirements you are likely to meet. Secure credit cards (one which requires a deposit) are easier than regular credit cards, and you may want to start with one of those to establish credit. Department store and gas credit cards are usually easier to obtain than a bank-issued Visa or MasterCard.
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Keep YOUR credit card at a low balance
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If the amount you owe is close to your limit, it may have a negative effect on your score.
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Make payments on time
Use your credit card for purchases and pay the balance on time.
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Students Working at Banks
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They may look just like me and you, but they have access to the bank vault
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by Dorothy Wong
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Eric Zhu, a student at De Anza College, has worked in the banking industry for more than four years. Wells Fargo is the second bank he’s worked at. A business major, Zhu plans to transfer to San Jose State University and obtain the investment license series 6/77. “I hope to work in the financial investment department after I
graduate,” he says.
Zhu recommends that students go online to job-hunt if they are looking for a position in the banking field.
“Do not be shy. Keep sending your resume to different banks. Keep on sending until you hear from at least one of them. This is how I got my full-time job,” he says. “Persistence is the key.”
He says that after sending a resume to banks, they will normally contact suitable applicants to conduct a phone-call interview. If applicants make it through the phone-call interview, they will receive an invitation to a group interview. The final stage is an individual interview.
Another option is for students to intern at a bank.
“An internship is a very good opportunity for students to familiarize themselves with the bank operations,” says Zhu. “When students work at a bank, besides learning about bank operations, they learn how to work as a team as well. This is important, no matter if students work in banks or not.”
Students can surf the Net to find out what banks offer students when they intern. Sometimes internships lead to paying jobs.
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