<div dir="ltr">Hello,<div><br></div><div>I agree with everything Tim said and would like to mention that students now have another option to build credit that doesn't have the potential to incur dangerous debt like a credit card, they can take out a "credit building loan" instead. </div><div><br></div><div>Basically, they apply for the loan, the credit union/bank puts $X into a savings account (they do not give the student the money), then the student pays it off slowly, every month, just like any other loan. At the end of the repayment period, they get their money back, minus interest, and an improved credit score.</div><div><br></div><div>Yes, this comes at the cost of interest, but it is nominal and a good learning experience for them to learn to pay monthly installments and contact different credit unions/banks to find out interest rates. </div><div class="gmail_extra"><br clear="all"><div><div class="gmail_signature" data-smartmail="gmail_signature"><div dir="ltr"><div><div dir="ltr"><div>Cheers, </div><div><br></div><div>Kate Moody<br></div><div><a href="https://twitter.com/librarikate" target="_blank">@librarikate</a><br><br></div><div>Access Services Librarian<br></div>Lane Library, Ripon College<br><div>(920) 748-8750<br><br>300 Seward Street<br>P.O. Box 248<br>Ripon, WI 54971-0248<br> <br><a href="https://twitter.com/lane_library" target="_blank"><span style="color:blue;text-decoration:none"><img src="cid:image001.gif@01CEF82C.E156E1A0" alt="twitter" border="0" height="36" width="36"></span></a> <a href="https://www.facebook.com/LaneLibraryRiponCollege" target="_blank"><span style="color:blue;text-decoration:none"><img src="cid:image002.gif@01CEF82C.E156E1A0" alt="facebook" border="0" height="36" width="36"></span></a> <a href="http://lane-library.blogspot.com/" target="_blank"><span style="color:blue;text-decoration:none"><img src="cid:image003.gif@01CEF82C.E156E1A0" alt="bloggerlogo" border="0" height="36" width="36"></span></a> <br> </div></div></div></div></div></div>
<br><div class="gmail_quote">On Wed, Jul 6, 2016 at 2:03 PM, Hagan, Timothy <span dir="ltr"><<a href="mailto:Timothy.Hagan@wichita.edu" target="_blank">Timothy.Hagan@wichita.edu</a>></span> wrote:<br><blockquote class="gmail_quote" style="margin:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1ex">
<div lang="EN-US" link="blue" vlink="purple">
<div>
<p class="MsoNormal"><span style="color:#1f497d">There is a simple solution to building a solid credit history and a good credit score that applies to many students. It’s the general rule and there will be exceptions.<u></u><u></u></span></p>
<p class="MsoNormal"><span style="color:#1f497d"><u></u> <u></u></span></p>
<p><u></u><span style="color:#1f497d"><span>1.<span style="font:7.0pt "Times New Roman"">
</span></span></span><u></u><span style="color:#1f497d">The student should obtain a credit card with a low credit limit from “their” financial institution. If they don’t have a local account, they need one to avoid ATM fees and have a real person to talk
to about issues. This strategy offers a good chance of approval without getting a lot of “dings” from hard inquiries that result from multiple credit card applications. It also gives the student a chance to build a good relationship with the financial institution.
Then the student should charge one (1) and only one single solitary low cost item that they would have bought anyway every month. They then pay off the entire balance well before the due date on the monthly statement. This pattern gets them in the habit of
buying only what they need with the credit card and paying off the whole balance every month.<u></u><u></u></span></p>
<p class="MsoNormal"><span style="color:#1f497d"><u></u> <u></u></span></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="color:#1f497d">This strategy builds credit history and score in the
<u></u><u></u></span></p>
<p style="margin-left:.75in">
<u></u><span style="color:#1f497d"><span>a.<span style="font:7.0pt "Times New Roman"">
</span></span></span><u></u><span style="color:#1f497d">Credit Card Utilization<u></u><u></u></span></p>
<p style="margin-left:.75in">
<u></u><span style="color:#1f497d"><span>b.<span style="font:7.0pt "Times New Roman"">
</span></span></span><u></u><span style="color:#1f497d">Payment history <u></u><u></u></span></p>
<p style="margin-left:.75in">
<u></u><span style="color:#1f497d"><span>c.<span style="font:7.0pt "Times New Roman"">
</span></span></span><u></u><span style="color:#1f497d">Age of credit history<u></u><u></u></span></p>
<p style="margin-left:.75in"><span style="color:#1f497d">areas of their credit score while avoiding derogatory remarks and multiple hard inquiries.<u></u><u></u></span></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="color:#1f497d"><u></u> <u></u></span></p>
<p><u></u><span style="color:#1f497d"><span>2.<span style="font:7.0pt "Times New Roman"">
</span></span></span><u></u><span style="color:#1f497d">If they have a student loan they are set up to continue to build their credit score by adding the second of the 3 types of accounts, an “installment loan”, to their credit history and further increase
their credit score after they graduate.<u></u><u></u></span></p>
<p class="MsoNormal"><span style="color:#1f497d"><u></u> <u></u></span></p>
<p class="MsoNormal"><span style="color:#1f497d">The education they receive while in school should emphasize that they should never ever miss a payment and to never ever carry a balance on the credit card from month to month.<u></u><u></u></span></p>
<p class="MsoNormal"><span style="color:#1f497d"><u></u> <u></u></span></p>
<p class="MsoNormal"><span style="color:#1f497d">After a couple of years of steady student loan payments in combination with even longer great payment history on their low balance credit card their score should in very good shape. This should put them in a
good position to borrow only the debt they need to help purchase a car they need to get to work or explore the possibility of a reasonable mortgage when the time comes.<u></u><u></u></span></p>
<p class="MsoNormal"><u></u> <u></u></p>
<p class="MsoNormal">Tim Hagan, MBA<u></u><u></u></p>
<p class="MsoNormal">Financial Literacy Project Coordinator<u></u><u></u></p>
<p class="MsoNormal">Office of Student Success<u></u><u></u></p>
<p class="MsoNormal">1845 Fairmount, Campus Box 97<u></u><u></u></p>
<p class="MsoNormal">Wichita, KS 67260<u></u><u></u></p>
<p class="MsoNormal"><a href="tel:316-978-3211" value="+13169783211" target="_blank">316-978-3211</a><u></u><u></u></p>
<p class="MsoNormal"><a href="mailto:tim.hagan@wichita.edu" target="_blank">tim.hagan@wichita.edu</a><u></u><u></u></p>
<p class="MsoNormal"><a href="http://www.mycollegemoneyplan.org" target="_blank">www.mycollegemoneyplan.org</a><u></u><u></u></p>
<p class="MsoNormal">@CollegeCostTips<u></u><u></u></p>
<p class="MsoNormal"><img width="139" height="139" src="cid:image003.jpg@01D1CE11.57B969F0" alt="MCMP Logo-02"><u></u><u></u></p>
<p class="MsoNormal"><u></u> <u></u></p>
<p class="MsoNormal"><u></u> <u></u></p>
<p class="MsoNormal"><span style="color:#1f497d"><u></u> <u></u></span></p>
<p class="MsoNormal"><span style="color:#1f497d"><u></u> <u></u></span></p>
<div>
<div style="border:none;border-top:solid #e1e1e1 1.0pt;padding:3.0pt 0in 0in 0in">
<p class="MsoNormal"><b>From:</b> Natfinwellness [mailto:<a href="mailto:natfinwellness-bounces@lists.osu.edu" target="_blank">natfinwellness-bounces@lists.osu.edu</a>]
<b>On Behalf Of </b>LIPINOGA, LAUREN<br>
<b>Sent:</b> Thursday, June 23, 2016 5:41 PM<span class=""><br>
<b>To:</b> <a href="mailto:natfinwellness@lists.osu.edu" target="_blank">natfinwellness@lists.osu.edu</a><br>
<b>Subject:</b> [Natfinwellness] Credit Scores (Starting Score)<u></u><u></u></span></p>
</div>
</div>
<p class="MsoNormal"><u></u> <u></u></p>
<p class="MsoNormal">Greetings All,<u></u><u></u></p><div><div class="h5">
<p class="MsoNormal"><u></u> <u></u></p>
<p class="MsoNormal">I’m working on revamping our Financial Literacy consultations and what is discussed during them. For our Building & Managing Credit consultation, one topic discussed is credit scores, including the range and if you’re just starting to build
credit, where you generally start in terms of score? I know the range is obviously 300-850 but have seen conflicting things regarding where folks start in terms of a credit score. Does anyone know where I could find this information/know the answer so that
I can pass on the appropriate information? <u></u><u></u></p>
<p class="MsoNormal"><u></u> <u></u></p>
<p class="MsoNormal">Thanks!<u></u><u></u></p>
<p class="MsoNormal">Lauren Lipinoga<u></u><u></u></p>
<p class="MsoNormal"><u></u> <u></u></p>
<p class="MsoNormal"><b><span style="font-family:"Century Schoolbook",serif;color:#943634">Lauren E. Lipinoga, M.Ed.<u></u><u></u></span></b></p>
<p class="MsoNormal"><b><span style="font-size:10.0pt;font-family:"Century Schoolbook",serif">Coordinator of Financial Literacy, Student Success Center<u></u><u></u></span></b></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Century Schoolbook",serif;color:#333333">Division of Student Affairs and Academic Support<u></u><u></u></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Century Schoolbook",serif;color:#333333">Thomas Cooper Library-Mezzanine<u></u><u></u></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Century Schoolbook",serif;color:#333333">1322 Greene Street
<u></u><u></u></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Century Schoolbook",serif;color:#333333">Columbia, South Carolina 29208<u></u><u></u></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Century Schoolbook",serif;color:#333333">Phone: <a href="tel:803.777.9972" value="+18037779972" target="_blank">803.777.9972</a><u></u><u></u></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Century Schoolbook",serif;color:#333333">Email:
<a href="mailto:lipinoga@mailbox.sc.edu" target="_blank">lipinoga@mailbox.sc.edu</a><u></u><u></u></span></p>
<p class="MsoNormal"><span style="font-family:"Century Schoolbook",serif;color:#1f497d"><img border="0" width="224" height="61" src="cid:image001.jpg@01D1CE0D.C97379E0" alt="https://www.parkersearch.com/dashboard/uploads/photos/usc_long1351087132.jpg"></span><span style="font-family:"Century Schoolbook",serif;color:#333333"><u></u><u></u></span></p>
<p class="MsoNormal"><span style="font-family:"Century Schoolbook",serif;color:#333333"><a href="http://www.sa.sc.edu/ssc/" target="_blank">http://www.sa.sc.edu/ssc/</a><u></u><u></u></span></p>
<p class="MsoNormal"><u></u> <u></u></p>
</div></div></div>
</div>
<br>_______________________________________________<br>
Natfinwellness mailing list<br>
<a href="mailto:Natfinwellness@lists.osu.edu">Natfinwellness@lists.osu.edu</a><br>
<a href="https://lists.osu.edu/mailman/listinfo/natfinwellness" rel="noreferrer" target="_blank">https://lists.osu.edu/mailman/listinfo/natfinwellness</a><br>
<br></blockquote></div><br></div></div>