Graduation is an exciting moment in your life as you leave campus with a diploma, ready to find a new job that’s (hopefully) in your field. It can also be a challenging time full of growing pains as you learn to balance the budget with your student loans.
Whether you stay in Texas or go abroad, juggling everything at once isn’t always easy. A lot of young people wind up dropping something.
So how can you put your best first forward as a new grad without damaging your credit? Find out why credit is so important and how you can protect your score below.
Why Your Credit Score is Important
Your credit score is a three-digit number that reflects your past borrowing habits, falling between 300 and 850, with 850 being the best score you can get.
While a perfect 850 isn’t necessary, it does certainly make life easier. You’ll qualify for a greater selection of loans in Texas at lower rates. Plus, employers and landlords are more likely to see you as a worthwhile employee or tenant.
The closer you fall to 300 suggests you’ve hit some speed bumps along the way. Maybe you’ve forgotten to pay your cell phone bill for a few months, or you max out your credit cards almost every month.
Since a bad score suggests you’ve had trouble handling credit in the past, some financial institutions in Texas see you as an enormous risk.
Young People Turn to Payday Loans for Bad Credit
Plenty of young people with bad credit wind up taking out payday loans. They’re often easier to qualify for when you have bad credit, provided you meet other eligibility requirements.
But these high-cost loans are due back by your next payday, which can make them difficult to repay on time. And, you guessed it, a late payment here may result in more damage to your credit.
So, what can you do if you have to borrow with bad credit? In this tough situation, you can research an online installment loan for help. They’re due back in installments, so you don’t have to repay everything upfront.
If you want to learn more, you’ll want to find an installment loan lender near you. After all, an online search could bring up online direct lenders operating in another country.
If you live in Texas, you’ll want to type this into your search bar: Texas installment loans. This simple search can help you find alternatives to payday loans in Texas that give you more time to repay what you owe.
Credit-Savvy Tips to Follow
While a lot goes into your credit score, your payment history and credit utilization are the biggest factors. Paying your bills on time and keeping your line of credit balance low should be your top priorities.
Here are some practical tips to help you do that:
- Monitor your debts so you understand what you owe
- Track your federal loans via the National Student Loan Database System
- Make the minimum payments on all your accounts
- Defer your payments if possible
- Use a budgeting app to prioritize your money and keep track of bills
- Limit frivolous spending so you don’t max out credit
Bottom Line
Whether you’re only a few credits shy or several semesters away, graduation will be here sooner than you think. And when it does, you should keep your credit score top of mind. Follow these tips for financial success on and off campus.