5 Reasons Not to Rely on Credit During College

5 Reasons Not to Rely on Credit During College

Credit card and student loan debt is steadily rising among students throughout the country. For this reason and others, it’s important to keep college debt as low as possible throughout your student years. Here are some reasons not to rely on credit during college.

1. Student Loan Debt

Many students accrue more debt than they can realistically pay with their earnings after college. Quite a few of them don’t even realize how much they’re going to have to pay until they graduate. One way to combat this is by working during college and cutting down as much debt as possible while getting an education.

2. Building Credit Debt

Many college students aren’t aware of the risks and drawbacks of credit cards. Some even live solely off credit and student loans to afford college and living costs. This is a mistake which can lead to overwhelming debt and bad credit scores later on. By paying the full amount on time every month, instead of relying on minimum payments, a student can create good credit scores.

3. Your Credit Score

Going into credit card debt can completely ruin a student’s credit history. Just a few wrong decisions can bring a credit score down, and negative marks will remain on a credit score for up to seven years. Alternatively, many college students don’t even need a credit card to build good credit. Many times, they can build good credit sim

ply by paying off their student loans on time.

4. Improper Use of Student Loans

Student loans are high enough when only paying for college costs. When costs are split for a spring break trip or a car, they can become unreasonably high later on. While many students believe

student loans will be easy to pay off once they graduate college and get a job, the payout isn’t always high enough to handle large amounts of student loan debt. To avoid this, be sure to manage student loans appropriately throughout your student life.

5. College Choice and Relevancy in the Job World

In some cases the name of the school on a degree really matters, but this isn’t true all the time. When choosing a college, it’s important to analyze which college will suit your needs best. Is it necessary to spend hundreds of thousands of dollars in student loans, or can you get away with attending a cheaper college? If you do need a fancy name on your degree, why not attend a cheaper college for the first two years? Once basic education is out of the way, you can move up to a school of choice without effecting your degree.

By being careful with money and working hard during college years, you can keep your student debt at a reasonable rate. Jason Hartman teaches not to overuse credit, and to

pay yourself first.

The Young Wealth Team


The Young Wealth Team

The Young Wealth Team

The Young Wealth Team

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