When you’re in college, the world of adulting just seems so far away.
After all, when you practically live with your best friends every single day without the presence of hovering parent, you’ve got the freedom to do whatever you want.
Party heavily on the weekends? Check. Break the bank to drink too much boba each week? Double check. Go out downtown for a shopping spree to add the latest fashion to your closet? Triple check!
Even when your wallet may be practically empty at the end of the day, the adrenaline rush you got from your dose of online retail therapy sure was enough to make up for it. After all, you’ve got the rest of your life to do “adulting,” right? Why not be that spend-happy college student while you can?
Even if you're doing all the right things, have a campus job, and keep a close watch on your wallet, it can pay off big time to be a little more financially responsible. In fact, focusing on building your credit score during college can actually make your adulting life so much easier.
What is a credit score in the first place and why is it so important?
We thought you might be wondering. A credit score in its most basic form is a number that ranges from 300 to 850. A lot like your grade point average, a higher number unlocks opportunities and a lower one can be cause for concern. However, it’s far more than just a number. It’s what largely can make or break your biggest financial decisions that require a credit score review.
So, without further ado, let’s take a deeper dive into how a good credit score can directly impact your life beyond college.
The perks of a great credit score
In general, if you manage to build up a credit score of 670 and higher once you graduate college, you’re in a great starting position for adulthood. How so?
Well, take a moment to imagine what happens when you move to a new city.
To have a comfortable living, you’ll need to get a solid apartment and a car to commute around.
However, those purchases aren’t merely one-time. It’ll probably take you months to years to pay off a new or used car. As for an apartment? You’ll be paying rent every month for as long as you choose to stay there. Plus, in cities like New York, your credit score can influence whether or not your landlord will require a huge security deposits.
Chances are, you won’t also be the only one who wants that attractive apartment lease. So now it’s the landowner or lender’s time to choose — what’s one of the biggest factors they might consider when deciding whether to give you what you want?
You guessed it — your credit score.
That’s because your credit score is a direct indication of how financially responsible you are. It’s calculated from a bunch of factors such as how well you pay your bills on time, how much debt you have, how many credit cards you have, and more.
The higher of a score you have, the better that a landlord can trust you to pay your rent on time. The same reasoning goes for a lender, who can better rely on the idea that you’ll make the monthly payments after refinancing that student loan. In addition to a good credit score’s reflection of your character, it’s also able to earn you some fantastic perks.
Chances are, you’ll receive better terms, lower interest rates, and higher limits for your credit card as well. You’ll also be able to take advantage of more negotiating power when hashing out the terms of any deal.
So, in a nutshell, having a great credit score can be a kind of freedom on its own in the adult world. Because adulthood lasts far longer than college, it’s important that you take the time to build your score up now.
One of the best ways you can begin doing so is by obtaining your very own credit card. As long as you keep track of your spending and pay back all of your credit card bills on time, you’ll be able to slowly accumulate a fantastic credit score.
Fizz’s credit card is specially designed with college students in mind. Fizz allows you to start building credit with a debit card, free of interest, hidden fees, and lengthy applications. For every purchase you make with Fizz, you’ll not only build your credit score, but also enjoy special campus discounts at your favorite restaurants and stores around campus.
If you want to start building your credit in college in the most convenient way, then don’t hesitate to join Fizz. In no time, you'll be setting yourself up for success well beyond college.