Whether you have just graduated with a bachelor’s degree or a master’s degree, the one thing most recent college graduates share is debt. The cost of post-secondary education is through the roof and few parents have the resources anymore to pay the cost of tuition, books, and living expenses. It’s a sad, but true, fact of life. Unfortunately, this leaves most newly graduated young adults without much in the way of creditworthiness. If you have recently graduated and are in a less than ideal financial situation, here are some tips on getting control of your finances.
Dealing with Student Loans
One of the biggest concerns most recent grads share is the worry over paying off those student loans. Fortunately, most have very low-interest rates and many lenders will have alternative plans if you are currently in the market for a job. Some loans don’t require payments for a certain length of time after graduation and some lenders may be willing to refinance if that is what it takes to ensure payments are eventually made – and in full. However, that’s just the beginning of what concerns you.
Building Credit from Day One
Another unfortunate fact about life in the 21st Century is that it’s hard to find employment or to even rent apartments with low credit scores. Did you know that most employers and landlords run a credit check as part of the application process? If you have recently become employed, it might be time to seek what is referred to in the lending industry as “credit starter loans.” These are personal loans, typically up to about $2,500, and can be used to begin establishing credit – hence the name “starter loans.”
Choosing the Right Lender Is Paramount
While you may not qualify for a credit builder loans without a job, this might be something to consider from day one because it’s a surefire way to begin building credit. Lenders do, after all, report repayment history at certain intervals. If you are looking to establish creditworthiness, this is the quickest way to do just that. Even so, choosing the right lender is also of vital importance and why so many financial groups like Western Shamrock in Texas work with consumers to help them find the loan they need for this purpose. Remember, not all lenders are created equal!
It’s Not Time to Relax Just Yet
There is one other mistake that so many recent grads fall prey to and that would be the “I’m finally free” mindset. They take this as a time to party and spend inordinate amounts of time in recreation rather than looking at ways to begin building wealth. It isn’t time to relax just yet and if you ever hope to qualify for those installment loans to build credit, you’ll want to get a job and get control of your life. You worked long and hard for that degree, after all, so put it to good use.
