Recently, WilliamPaid spent a few days at DePaul University in the heart of Chicago to find out what is on renters’ minds. Curiously absent? Their knowledge of building good credit.
According to a survey we conducted on campus, 98% of the respondents indicated that building good credit was extremely important to them - but only 16% knew their credit score.
Apathy or lack of knowledge coupled with an abundance of misinformation? Based upon our conversations, we think it is the latter - people know that good credit is important, but they just don’t know how to get there.
Help is on the way. The landmark bill that President Obama signed into law back in May to protect consumers and most notably, college students, from aggressive marketing tactics by the credit card companies will take effect early next year.
While these protective laws can keep the predators at bay, they don’t address the other side of the equation - education. Sandra Block, a columnist at USA TODAY, points out that building good credit may help you get a car loan, but has the opposite effect if you end up not being able to pay it each month. Very, very true.
In fact, a recent Sallie Mae study reports that 85% of college students are currently cardholders and carry a median balance of $1,645. Continued outstanding balances at these levels can lead to missed payments and a high interest burden. By not understanding the responsibilities that come with owning a credit card or taking out a loan can have a detrimental impact on your credit for years to come.
We say? Get educated. You don’t need a PhD. in “credit building,” but you at least need the cliff notes. Not to mention, a good score is always a good thing.
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