Students should begin building their credit either through student credit cards or secured credit cards. These will have a low credit limit and don’t offer many rewards but are a starting point to build your credit. Make a few small purchases each month on the card and pay it in full every month. The most important thing millennials need to understand with credit cards is to make their payments on time.
Most people start with a student credit card. The other option is a secured credit card. This type of card allows you to build your credit, but you must make a deposit for your credit limit. This is another way to prove that you will make your payments on time, and from here, you can upgrade to a standard unsecured card.
When taking out student loans, you should not only think about tuition fees, room and board, but also the cost of living. If you are planning to take out student loans, you should look into the rates that you would receive and consider what your salary will be after you graduate. Piecing these two numbers together, you should think about how long it will take to repay your loans and make sure you feel comfortable with this.
People should use this repayment calculator to determine their monthly payment amount and total interest paid.
Contributor: Brandon Yahn