If you’re in college you’re probably working hard to keep your GPA on point or at least above average. But if you’re spending all your free time in the library studying you may be over looking another equally important number, your credit score. It may seem like the furthest thing from your mind but in fact that three-digit number should be a big priority because unlike your GPA, your credit score sticks with you for life.
Your credit score doesn’t just determine how much interest you’ll pay on a credit card or if you can apply for a loan, it also effects where you live. Almost all property managers and landlords will run a credit check during the application process for an apartment. This in turn lets them know if you are reliable and are able to make payments on time. It also shows the people checking it if you have any outstanding debt that will be working against you making on time rent payments.
Your score can also affect the area in which you live. Some apartment complexes require a 3/1 rent to income ratio, or a score above the 620 range. This means you either need to make 3 time the amount of rent you’ll be paying a month or have a score that shows you have a reliable line of credit. Sounds a little stressful right? But there is a solution!
If you’re worried about your credit score being less above par, get a cosigner like your parents! Some places even allow roommates to apply together in one application, which can work out in your favor it just depends on the management company. Of course you can always build credit to by paying your bills on time, and by getting a credit card and using it RESPONSIBLY. Remember your card should never be over 20% of its limit and it takes 7 years to have any credit “mistakes” expunged from record and that’s only after you have corrected them.
This number sounds scary, but it doesn’t have. By taking the proper approaches and learning at young age how to be financially responsible you can guarantee your current and future financial success.