In U.S. everything depends on credit history. Its the term unheard of in India. But, credit history is what that will buy you everything. Right from car, apartment, home, good interest rate, cell phone connection, utilities connection and so on.
What is Credit History?
- A file detailing an individual’s current and past debt payments and financial obligations.
- An official record detailing how people manage their debts. This information is collected by the three major credit reporting agencies and includes everything from one’s Social Security number, current and prior addresses, detailed status of all credit lines or loans and employment info. A bankruptcy also appears in your credit history if filed withing the past 10years. …
Building Credit History
There are few steps that would hep students to build credit history. If you don’t take care of your finances, you will end up having balance in Credit cards and end up paying lot of interest.
Most of the students by end of the graduate degree will have medium to hefty credit card balance. Students who have Scholarship tend to save money, but if those who is paying Out of state fee, tend to accumulate credit card debt.
If you don’t keep track of your spending and keep swiping credit cards without paying the entire balance in full, in couple of months, you will be in debt.
So, having your credit card debt under one’s control is very important. If you talk to your seniors, you will understand.
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