<div dir="ltr">There's another aspect that we should consider when it comes to early use of credit. Some students already have bad credit, sometimes from their own actions and sometimes because their family members have used their identities before they became active in the marketplace. If they find it difficult to obtain a standard credit card they should apply to their financial institution for a "secured" credit card. By depositing say $500 in a savings account they can receive a card with a $500 limit. Of course if they are careless with this account they will receive no benefit, but by paying on time all the time they can eventually build a new credit profile.</div><div class="gmail_extra"><br><div class="gmail_quote">On Wed, Jul 6, 2016 at 3:42 PM, <span dir="ltr"><<a href="mailto:natfinwellness-request@lists.osu.edu" target="_blank">natfinwellness-request@lists.osu.edu</a>></span> wrote:<br><blockquote class="gmail_quote" style="margin:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1ex">Send Natfinwellness mailing list submissions to<br>
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Today's Topics:<br>
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1. Re: Credit Scores (Starting Score) (Moody, Katherine)<br>
<br>
<br>
----------------------------------------------------------------------<br>
<br>
Message: 1<br>
Date: Wed, 6 Jul 2016 14:41:27 -0500<br>
From: "Moody, Katherine" <<a href="mailto:moodyk@ripon.edu">moodyk@ripon.edu</a>><br>
To: National Financial Wellness Listserv<br>
<<a href="mailto:natfinwellness@lists.osu.edu">natfinwellness@lists.osu.edu</a>><br>
Cc: "Sandlin, Kim" <<a href="mailto:Kim.Sandlin@wichita.edu">Kim.Sandlin@wichita.edu</a>>, "Rodrick, Heidi"<br>
<<a href="mailto:heidi.rodrick@wichita.edu">heidi.rodrick@wichita.edu</a>>, "Anderson, Amber"<br>
<<a href="mailto:amber.anderson@wichita.edu">amber.anderson@wichita.edu</a>>, "Gretchen Holthaus<br>
\(<a href="mailto:gholthau@indiana.edu">gholthau@indiana.edu</a>\)" <<a href="mailto:gholthau@indiana.edu">gholthau@indiana.edu</a>><br>
Subject: Re: [Natfinwellness] Credit Scores (Starting Score)<br>
Message-ID:<br>
<<a href="mailto:CACwC8yQQt_Oa3fn7p5H4PUeiNU5tiwD1EVE42K8PW4B9NChUcw@mail.gmail.com">CACwC8yQQt_Oa3fn7p5H4PUeiNU5tiwD1EVE42K8PW4B9NChUcw@mail.gmail.com</a>><br>
Content-Type: text/plain; charset="utf-8"<br>
<br>
Hello,<br>
<br>
I agree with everything Tim said and would like to mention that students<br>
now have another option to build credit that doesn't have the potential to<br>
incur dangerous debt like a credit card, they can take out a "credit<br>
building loan" instead.<br>
<br>
Basically, they apply for the loan, the credit union/bank puts $X into a<br>
savings account (they do not give the student the money), then the student<br>
pays it off slowly, every month, just like any other loan. At the end of<br>
the repayment period, they get their money back, minus interest, and an<br>
improved credit score.<br>
<br>
Yes, this comes at the cost of interest, but it is nominal and a good<br>
learning experience for them to learn to pay monthly installments and<br>
contact different credit unions/banks to find out interest rates.<br>
<br>
Cheers,<br>
<br>
Kate Moody<br>
@librarikate <<a href="https://twitter.com/librarikate" rel="noreferrer" target="_blank">https://twitter.com/librarikate</a>><br>
<br>
Access Services Librarian<br>
Lane Library, Ripon College<br>
<a href="tel:%28920%29%20748-8750" value="+19207488750">(920) 748-8750</a><br>
<br>
300 Seward Street<br>
P.O. Box 248<br>
Ripon, WI 54971-0248<br>
<br>
[image: twitter] <<a href="https://twitter.com/lane_library" rel="noreferrer" target="_blank">https://twitter.com/lane_library</a>> [image: facebook]<br>
<<a href="https://www.facebook.com/LaneLibraryRiponCollege" rel="noreferrer" target="_blank">https://www.facebook.com/LaneLibraryRiponCollege</a>> [image: bloggerlogo]<br>
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<br>
<br>
On Wed, Jul 6, 2016 at 2:03 PM, Hagan, Timothy <<a href="mailto:Timothy.Hagan@wichita.edu">Timothy.Hagan@wichita.edu</a>><br>
wrote:<br>
<br>
> There is a simple solution to building a solid credit history and a good<br>
> credit score that applies to many students. It?s the general rule and there<br>
> will be exceptions.<br>
><br>
><br>
><br>
> 1. The student should obtain a credit card with a low credit limit<br>
> from ?their? financial institution. If they don?t have a local account,<br>
> they need one to avoid ATM fees and have a real person to talk to about<br>
> issues. This strategy offers a good chance of approval without getting a<br>
> lot of ?dings? from hard inquiries that result from multiple credit card<br>
> applications. It also gives the student a chance to build a good<br>
> relationship with the financial institution. Then the student should charge<br>
> one (1) and only one single solitary low cost item that they would have<br>
> bought anyway every month. They then pay off the entire balance well before<br>
> the due date on the monthly statement. This pattern gets them in the habit<br>
> of buying only what they need with the credit card and paying off the whole<br>
> balance every month.<br>
><br>
><br>
><br>
> This strategy builds credit history and score in the<br>
><br>
> a. Credit Card Utilization<br>
><br>
> b. Payment history<br>
><br>
> c. Age of credit history<br>
><br>
> areas of their credit score while avoiding derogatory remarks and multiple<br>
> hard inquiries.<br>
><br>
><br>
><br>
> 2. If they have a student loan they are set up to continue to build<br>
> their credit score by adding the second of the 3 types of accounts, an<br>
> ?installment loan?, to their credit history and further increase their<br>
> credit score after they graduate.<br>
><br>
><br>
><br>
> The education they receive while in school should emphasize that they<br>
> should never ever miss a payment and to never ever carry a balance on the<br>
> credit card from month to month.<br>
><br>
><br>
><br>
> After a couple of years of steady student loan payments in combination<br>
> with even longer great payment history on their low balance credit card<br>
> their score should in very good shape. This should put them in a good<br>
> position to borrow only the debt they need to help purchase a car they need<br>
> to get to work or explore the possibility of a reasonable mortgage when the<br>
> time comes.<br>
><br>
><br>
><br>
> Tim Hagan, MBA<br>
><br>
> Financial Literacy Project Coordinator<br>
><br>
> Office of Student Success<br>
><br>
> 1845 Fairmount, Campus Box 97<br>
><br>
> Wichita, KS 67260<br>
><br>
> <a href="tel:316-978-3211" value="+13169783211">316-978-3211</a><br>
><br>
> <a href="mailto:tim.hagan@wichita.edu">tim.hagan@wichita.edu</a><br>
><br>
> <a href="http://www.mycollegemoneyplan.org" rel="noreferrer" target="_blank">www.mycollegemoneyplan.org</a><br>
><br>
> @CollegeCostTips<br>
><br>
> [image: MCMP Logo-02]<br>
><br>
><br>
><br>
><br>
><br>
><br>
><br>
><br>
><br>
> *From:* Natfinwellness [mailto:<a href="mailto:natfinwellness-bounces@lists.osu.edu">natfinwellness-bounces@lists.osu.edu</a>] *On<br>
> Behalf Of *LIPINOGA, LAUREN<br>
> *Sent:* Thursday, June 23, 2016 5:41 PM<br>
> *To:* <a href="mailto:natfinwellness@lists.osu.edu">natfinwellness@lists.osu.edu</a><br>
> *Subject:* [Natfinwellness] Credit Scores (Starting Score)<br>
><br>
><br>
><br>
> Greetings All,<br>
><br>
><br>
><br>
> I?m working on revamping our Financial Literacy consultations and what is<br>
> discussed during them. For our Building & Managing Credit consultation, one<br>
> topic discussed is credit scores, including the range and if you?re just<br>
> starting to build credit, where you generally start in terms of score? I<br>
> know the range is obviously 300-850 but have seen conflicting things<br>
> regarding where folks start in terms of a credit score. Does anyone know<br>
> where I could find this information/know the answer so that I can pass on<br>
> the appropriate information?<br>
><br>
><br>
><br>
> Thanks!<br>
><br>
> Lauren Lipinoga<br>
><br>
><br>
><br>
> *Lauren E. Lipinoga, M.Ed.*<br>
><br>
> *Coordinator of Financial Literacy, Student Success Center*<br>
><br>
> Division of Student Affairs and Academic Support<br>
><br>
> Thomas Cooper Library-Mezzanine<br>
><br>
> 1322 Greene Street<br>
><br>
> Columbia, South Carolina 29208<br>
><br>
> Phone: <a href="tel:803.777.9972" value="+18037779972">803.777.9972</a><br>
><br>
> Email: <a href="mailto:lipinoga@mailbox.sc.edu">lipinoga@mailbox.sc.edu</a><br>
><br>
> [image:<br>
> <a href="https://www.parkersearch.com/dashboard/uploads/photos/usc_long1351087132.jpg" rel="noreferrer" target="_blank">https://www.parkersearch.com/dashboard/uploads/photos/usc_long1351087132.jpg</a>]<br>
><br>
> <a href="http://www.sa.sc.edu/ssc/" rel="noreferrer" target="_blank">http://www.sa.sc.edu/ssc/</a><br>
><br>
><br>
><br>
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</blockquote></div><br><br clear="all"><div><br></div>-- <br><div class="gmail_signature" data-smartmail="gmail_signature"><div dir="ltr"><div><div dir="ltr"><div><div dir="ltr"><div dir="ltr"><div dir="ltr"><div dir="ltr"><div>John P. McFarland, CFP®, FP&A®<br>Department of Finance, Insurance and Real
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