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For many college seniors, graduation means setting up life by searching for a job, finding a new place to live, and establishing good spending habits. One of the best ways for recent college graduates to build a favorable financial future is by establishing the best credit history possible. This means avoiding some of the most common credit mistakes made by recent college graduates.
Maxing out a credit card
Using credit cards is one of the easiest ways to build a favorable credit history, but only if you can immediately pay off your monthly balance. Even though you suddenly have access to thousands of dollars, you need to avoid the temptation to spend the limit. If you do spend more than you can reasonably pay off, you will begin to accumulate interest rates and possibly be trapped in cycles of debt early on in your life.
Skipping a credit card altogether
While some people are guilty of overusing credit cards, other people choose to skip credit card use altogether. In reality, credit cards are very useful for purchasing airline tickets, making car rentals, and buying items online. Establishing good credit card spending habits also shows responsibility, allowing you to build a positive credit history and a higher credit score.
Failing to check credit reports
The only way to determine if there is an error on your credit report is by checking it. As soon as you graduate, you should take the time to download your credit report, review the information for accuracy, and report any errors to the credit-reporting agency. Not only will this help you clear up any problems, but it will also help you determine just how much you need to improve your credit score over the next few years.
Call (847) 849-1834 to schedule a free bankruptcy evaluation with Cutler & Associates, Ltd. We have more than 25 years of experience handling consumer bankruptcy cases in the Chicagoland area. You can schedule an appointment at one of our seven convenient locations, including Aurora and Schaumburg.
Even though bankruptcy may be associated with poor spending habits, credit card debt is not the leading cause of consumer bankruptcy cases in the United States. Researchers from Harvard Medical School and Harvard Law School have found that medical bills are responsible for 60% of U.S. bankruptcy cases. More upsetting, 75% of petitioners have health insurance coverage.
This video goes into further detail on the medical bill bankruptcy findings from Harvard Law and Medical Schools. As this report explains, research shows that the average middle-class American family is just one serious illness away from filing a bankruptcy petition. Even Americans with health insurance coverage find it difficult to pay for mounting medical bills or expensive medical treatments.
Cutler & Associates, Ltd. has seven convenient locations to better serve our clients. To make an appointment in our Schaumburg office, call (847) 849-1834 today.
The use of credit cards tends to vary drastically from person to person. Some people use credit cards to pay for most of their daily expenses, while other people hesitate to charge any monthly expense to their credit card account. Here is a look at the latest trends in credit card use among adult Americans.
Young adults ditching credit cards
According to Forbes.com, since the recession, the number of young adults in America living without credit cards has doubled. In fact, by the end of 2012, approximately 16% of Americans between the ages of 18 and 29 didn’t own a single credit card. In 2007, this rate was only 8%. As could be expected, credit card debt among this age group has also declined by approximately a third. Many young Americans are shying away from credit card use after witnessing the financial struggles faced by their parents during the recession.
Banks charging mobile fees
Developing mobile app projects can cost between $1 million and $5 million. Many times, boards and executive committees of banks want to see some sort of financial return on this mobile app investment. Even though there are varying opinions within the banking industry on whether or not it is a good idea to charge for mobile banking services, some banks have already begun implementing these fees. For example, U.S. Bank began charging 50 cents for every mobile check deposit since 2010.
College graduates worry about debt
There are almost two million recent college graduates entering the working force or looking for a permanent, professional position. Unfortunately, a large number of these recent college graduates have the additional burden of carrying around student loan debt. As a result, recent college graduates are increasingly cautious of using credit cards and adding on to their current debt obligations.
Since 1990, the bankruptcy attorneys of Cutler & Associates, Ltd. have provided legal service to people in the Chicagoland area. If you are considering filing for bankruptcy, give us a call at (847) 849-1834. We have seven convenient Chicagoland locations, including an office in Aurora and Schaumburg.
I HIGHLY RECCOMEND David Cutler! He is very professional, caring and friendly. David always return my calls and answered my questions even after discharge. Call David now! You will not regret! THANK YOU David!!!More
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