What's your Credit Score?

The financial decisions you make now will affect your options in the future. As a student, you're probably not thinking about owning your home 10 years from now, but you should be aware of your credit score. Your credit score is a statistically derived number expressing one's credit worthiness and likelihood of repaying his or her debt to lenders. This is based on your past credit history. Students are constantly being targeted by credit card companies because of their ripe credit history.

As a student, your credit history is not strong and needs to be built up. However, this should be done cautiously. Below are a few tips to help you manage your credit:

1. Don't sign up for anything you cannot afford. Yes, that means that credit card for emergencies. If you can't pay the bill, your best bet is to do without it. Missing a payment will only incur charges.

2. Pay on time. Lenders love to receive their money on time and sometimes reward customers who do this. Late payments will have consequences such as high charges on your account.

3. Make an arrangement. If you can't pay your bill, call ahead. Set up an arrangement to forgo charges harassment from bill collectors.

4. Keep track of your credit score. Your bank has record of your credit score or you can find it online. 

There are many free options of getting your credit score so beware of those that charge you.

Keeping a good credit score will allow you to be able to get a house or a business loan in the future. If lenders think you are creditworthy and will pay back your loans, they have no problem lending to you. Remember, the decisions you make now will effect you in the long run!