As a college student, it is quite difficult to manage your finance and debt. While most people would tell you to have a retirement and savings account, there are a lot more things that you must consider. There are many things that you might be doing wrong and might hurt your finance. Here are some commonly problems that are not commonly considered by college graduates.
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- No credit is similar to bad credit: yes bad credit is same as no credit. Lender check the behavior of people before giving them credit. If you have never taken credit then it is risky for lenders to give you credit. If credit is not established then there is no surety if you will pay back on time. Take a loan or a credit card to get your credit started. They do not have collateral too.
- Interest rates of auto loan can be negotiated: you might not know that interest rates of auto loans can be adjusted. Many dealerships add some margin to the finance that they find for you. You can negotiate with them to bring amount down.
- Extra payments on mortgage: pay extra amount on mortgage as a huge part of it is interest. If you pay some extra money to the principal on a monthly basis then you can save tons of money.
- Medical debt is too bad just like credit card debt: although you might not have made an irresponsible purchase, it is still bad just like you have made a big purchase using your credit card and then you did not repay it. If you have ever been in this situation then it can be quite frustrating and unfair. If you end up in this situation then you should reach to the medical facility in order to make your bill payments prior to it goes in collections. Many a times these facilities work with you in order to settle payments and it will not hurt your credit too.
- Diversify the credit: lenders need to know the types of credit to use. If you have credit cards or auto loans or mortgages, let the lender know that you took the loans and were responsible for it.
At every stage of life one must plan for their future. If you cannot make a sound plan it is not a problem. These secret tips can help you a lot and many recent college graduates would be shocked to hear these simple tips. But it is important to have some financial education too along with your college studies so that you have a successful and bright future.