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College Years and Your Credit
As Published In The New Tomorrow- Latino and Nubian Voices -
Volume 1, Number 1, October Issue 2003
By Robert Ruiz
There is nothing more exciting than graduating from high school. Especially, when you come
from a poor or lower middle class family of first or second generation immigrants. The
adrenaline of becoming the first person in your immediate family to move on to college is
overwhelming.
For many African-American and Hispanic teenagers, it will be the first experience for many
things to come. One thing is for sure, it will be your introduction to credit. That’s right credit! It
probably won’t be the first time you have heard of credit cards or even seen one. However, it
will be the first time that you can actually apply for one without your parents.
Applications will be falling out of the sky, when you start attending College. In front of and
inside Campus, tables will be set up by major credit card issuers. Offering free t-shirts, pens,
and bags, just so you can sign on the dotted line. You are a free agent in the credit industry.
They will do anything to sign you!
What they don’t tell you is how credit cards work. Most of all they don’t tell you about the
consequences, when you can’t pay your bill.
Here you are fresh out of high school. Ignorant to what the financial world is about to show
you, easy prey to the scandalous investment banker. Your fist day of college you pass the
table, which most of the time is located in front of the school entrance. You can’t miss it! If
they don’t get you the first time, they will the second time! Your curiosity won’t let you pass the
second time around.
What happens next is you fill the application; they take a photo copy of your school I.D.,
PRESTO, instant credit! In a week you receive your credit card in the mail.
What you didn’t read was the fine print. Of course not! No one told you to read the fine print.
After 18 years of Parental Rule, you didn’t know you had to. So why would you! Most of the
time it is smeared, too small, and you can never make out what it says anyway. All you know
is that you want the credit card, financial freedom from your Parental Oppressors!
However, don’t worry about it! The fine print only informs you of all the important things like,
annual percentage rate, grace periods, annual fees, balance computation method for finance
charges, transaction charges and other charges. Why read the most important part of the
contract?
Instead, what you do is wait. Wait until you receive your first bill. When you receive it, you never
understand it. All you know is that there are extra charges. So you call the company. Now is
when you learn what the fine print said. After they fill you in about the terms and agreement,
shockingly you respond, “I didn’t know that”. The voice on the other side asks, “Didn’t you
read the fine print”? Kicking yourself in the head you answer, “NO”. Of course not, your
emotions did not allow you to!
That’s not the end. You take this card and buy everything in sight. You buy until the card is
maxed. Of course you don’t stop there! You apply for more credit cards, if you haven’t already.
By the time you graduate college, you are ready to file for personal bankruptcy. Why, because
you can’t pay your bills. You bought things you didn’t need. You bought things for your
friends. No one showed you how to use the card. Most of all no one told you about the
importance of maintaining a good credit history.
Credit plays an important part in your purchasing future. Bad credit can cause you much
heartache. Delinquent credit could prevent you from qualifying for other types of loans.
Important loans, such as home loans and auto loans maybe denied all because you couldn’t
make your payments on time.
However, here are some pointers on how you can protect your credit record:
Credit cards should only be used for emergency purposes only. Having more than one is just
asking for financial trouble. You must take care of your financial future. There is nothing
worst than shopping for a house and when you apply for a loan your FICO credit score is
poor.
Think and spend wisely, don’t think and worry later. Read and pay attention to the fine print,
that’s where the heartache lays hidden.
About The Author:
Robert Ruiz is an editorial writer who writes for many publications. He is also the founder and
senior editor for Latin Society;silent voices www.latinsociety.com. He also has a monthly
column in The New Tomorrow. Also writes for the web magazine Did You Really
Believe www.didyoureallybelieve.com.
As Published In The New Tomorrow- Latino and Nubian Voices -
Volume 1, Number 1, October Issue 2003
By Robert Ruiz
There is nothing more exciting than graduating from high school. Especially, when you come
from a poor or lower middle class family of first or second generation immigrants. The
adrenaline of becoming the first person in your immediate family to move on to college is
overwhelming.
For many African-American and Hispanic teenagers, it will be the first experience for many
things to come. One thing is for sure, it will be your introduction to credit. That’s right credit! It
probably won’t be the first time you have heard of credit cards or even seen one. However, it
will be the first time that you can actually apply for one without your parents.
Applications will be falling out of the sky, when you start attending College. In front of and
inside Campus, tables will be set up by major credit card issuers. Offering free t-shirts, pens,
and bags, just so you can sign on the dotted line. You are a free agent in the credit industry.
They will do anything to sign you!
What they don’t tell you is how credit cards work. Most of all they don’t tell you about the
consequences, when you can’t pay your bill.
Here you are fresh out of high school. Ignorant to what the financial world is about to show
you, easy prey to the scandalous investment banker. Your fist day of college you pass the
table, which most of the time is located in front of the school entrance. You can’t miss it! If
they don’t get you the first time, they will the second time! Your curiosity won’t let you pass the
second time around.
What happens next is you fill the application; they take a photo copy of your school I.D.,
PRESTO, instant credit! In a week you receive your credit card in the mail.
What you didn’t read was the fine print. Of course not! No one told you to read the fine print.
After 18 years of Parental Rule, you didn’t know you had to. So why would you! Most of the
time it is smeared, too small, and you can never make out what it says anyway. All you know
is that you want the credit card, financial freedom from your Parental Oppressors!
However, don’t worry about it! The fine print only informs you of all the important things like,
annual percentage rate, grace periods, annual fees, balance computation method for finance
charges, transaction charges and other charges. Why read the most important part of the
contract?
Instead, what you do is wait. Wait until you receive your first bill. When you receive it, you never
understand it. All you know is that there are extra charges. So you call the company. Now is
when you learn what the fine print said. After they fill you in about the terms and agreement,
shockingly you respond, “I didn’t know that”. The voice on the other side asks, “Didn’t you
read the fine print”? Kicking yourself in the head you answer, “NO”. Of course not, your
emotions did not allow you to!
That’s not the end. You take this card and buy everything in sight. You buy until the card is
maxed. Of course you don’t stop there! You apply for more credit cards, if you haven’t already.
By the time you graduate college, you are ready to file for personal bankruptcy. Why, because
you can’t pay your bills. You bought things you didn’t need. You bought things for your
friends. No one showed you how to use the card. Most of all no one told you about the
importance of maintaining a good credit history.
Credit plays an important part in your purchasing future. Bad credit can cause you much
heartache. Delinquent credit could prevent you from qualifying for other types of loans.
Important loans, such as home loans and auto loans maybe denied all because you couldn’t
make your payments on time.
However, here are some pointers on how you can protect your credit record:
- Pay bills promptly to avoid late fees.
- Keep track of your purchases.
- Never exceed your limit.
- Always avoid over-limit fees
- Always report any change of address prior to moving, this way you will receive your bill
right away. - You can save several hundred dollars a year in lower credit card interest charges by
paying off your entire bill each month. - If you are unable to pay off a large balance, switch to a card with a low APR and
consolidate all your bills to just one. - To reduce credit card fees, avoid late payments and over the limit charges get rid of all
but one or two cards.
Credit cards should only be used for emergency purposes only. Having more than one is just
asking for financial trouble. You must take care of your financial future. There is nothing
worst than shopping for a house and when you apply for a loan your FICO credit score is
poor.
Think and spend wisely, don’t think and worry later. Read and pay attention to the fine print,
that’s where the heartache lays hidden.
About The Author:
Robert Ruiz is an editorial writer who writes for many publications. He is also the founder and
senior editor for Latin Society;silent voices www.latinsociety.com. He also has a monthly
column in The New Tomorrow. Also writes for the web magazine Did You Really
Believe www.didyoureallybelieve.com.
| Articles Written By Robert Ruiz |
- How Does The New
Bankruptcy Laws Affect
Minorities? - Whatever You Do,Don't Co-
sign! - Retirement Planning, Have
Hispanics Missed the
Importance of it all. - Can Buying Your Dream
House, Become a
Nightmare? - College Years and Your
Credit. - Think Smart!
Other Articles By Robert Ruiz
(click here)
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