Skip to main content

Heading to College? Protect Your Finances Now .. and for the Future


Heading to College?  
Protect Your Finances Now ... 
and for the Future
    
     It happens fairly frequently ...

https://1609956119.secure-loancenter.com/FreeConsult.aspx     While reading through a potential Mortgage Applicant's Credit Report, I'll discover that many of their reported debts and Credit Cards were first established while they were in college.  And now years later, they're still trying to pay off those debts.

     Yes, it's true.  The Credit Card Act (signed into law May 22nd of '09) is supposed to be addressing some of these issues by removing Credit Card companies ... and the temptations they offer to college students for applying for cards ... from campuses.  

     For those under 21, the Credit Card Act has also made it harder to be approved for a Credit Card.  A parent, guardian, or spouse must be willing to co-sign on a Card ... or the applicant must prove that they have sufficient income to pay for their credit obligation.

     These limitations and restraints are helping.  But I can tell you from experience, they're not eliminating the problem.  Not by a long shot.  

     Ask many of my clients.  When they were in college or under the age of 21, they probably thought Home Buying was a long way off.  Or they might have even thought they weren't interested in becoming a homeowner.  

     Whether you're planning on becoming a future homeowner or not, it's important to remain financially sound while in college.  Having poor credit or large amounts of debt hurts you financially ... in the short term and long.  

     Access to services and the cost of those services (think cell phones/service), rent, car insurance, auto loans, and more are impacted by your debt and Credit Scores.  (Click HERE for a previous post on this subject).   

     So what are the biggest credit and financial issues I see taking root during the college years of Mortgage Applicants? 
    http://genemundtchicagolandmortgage.blogspot.com/2013/08/tackling-millennial-student-loan-debt.html
  • Student Loans:  Face it, often they can't be avoided if someone hopes to go to college.  But the amount(s) borrowed can be addressed, as can proper usage of the monies received from these loans.  
     Students must remember that Student Loans must be paid back and cannot be deferred forever.  Think long and hard before your borrow money ... for any reason.
  • Lack of Budgeting:  Learning how to budget and then sticking to a budget is important.  Go crazy with your money and Credit Cards now and you'll be paying for it for a long time after your graduate.
  • Making Minimum Monthly Payments:  Only making minimum monthly payments on Credit Card(s) raises the cost of the money borrowed because of all the interest charged.  Unfortunately, students often do not get the best terms for their Credit Cards.  Interest Rates are typically high.  
      A.  Credit Cards are vital to establishing a good credit history, so I'm not advocating that you don't apply for a card prior to attending college or while there.  Just use the card(s) judiciously ... and wisely.  

     B.  Pay as much as possible off the balance you owe each month.  You'll save on the interest you're charged, you'll pay the balance off sooner, your Credit Scores will build higher, and you'll be better positioned to buy and borrow for the things you need while still in school ... and after you graduate too.
  • Applying for too many Credit Cards: Those offers and bargains offered at the store registers can come back to bite you later.  Stick to 1 or 2 low-limit Cards and pass on opening more.
  • Using the "cash advance" feature on Credit Cards:  Do this only when it's an absolute emergency.

   So many of the Credit Reports I see are "haunted" ... (sometimes for years) by my Borrowers' past expenditures and the poor credit decisions they made while in college. Don't let this happen to you (or your child).   

     Protect your financial future.  Establish a budget as part of the college plans you're making.  Apply sparingly for Student Loans and Credit Cards.  Stick to your budget.  Your financial future will be much better if you do.  

     And should you decide to Buy a Home in the future, you'll be much better prepared to do so at the best possible terms ...


   *  Thinking about Buying or Refinancing a  home in New Lenox, Will County, or elsewhere in ChicagolandContact Me Now!  I'll put my 37 years of Mortgage experience and expertise hard to work on your behalf.
     I can be easily found at:
Direct:  815.524.2280
Cell or Text:  708.921.6331
eFax:  815.524.2281



 Twitter Account of Gene Mundt, Mortgage Lender   LinkedIn Account of Gene Mundt, Mortgage Lender   Facebook Acct. of Gene Mundt, Mortgage Lender   Pinterest Acct. of Gene Mundt, Mortgage Lender   
 Trulia Acct. of Gene Mundt, Mortgage Lender   Zillow Acct. of Gene Mundt, Mortgage LenderGene's Chicagoland Blog/Gene Mundt, Mortgage Lender 
Gene Mundt, Mortgage Lender, a Lender with 37 years of mortgage experience, will offer you exemplary mortgage service and advice when seeking:  Conventional, FHA, VA, Jumbo, USDA, and Portfolio Loans in Chicago and the greater Chicagoland region, including:  The Lincoln-Way Area, Will County, (New Lenox, Frankfort, Mokena, Manhattan, Joliet, Shorewood, Crest Hill, Plainfield, Bolingbrook, Romeoville, Naperville, etc.), DuPage County, the City of Chicago, Cook County, and elsewhere within IL

      

     


     

    

    
          

Comments

Popular posts from this blog

Love Your New Construction .. But Educate Yourself About Future Tax Bills

Love Your New Construction ... But Educate Yourself About Future Tax Bills

*I want to preface this article by saying it's geography specific to the Chicagoland Area and its collar counties ...


So you've opted for building or buying a newly constructed home ... 

You've decided you'll invest most, or all, of your savings to cover Down Payment and Closing Costs.After all, it's a new home, you hopefully won't need money for repairs or improvements for quite a while, right?  

Plus:  The property taxes for your newly constructed home will initially be lower, as they'll be based upon the vacant lot on which your new home is built.  (The new home wasn't completed yet for the previous tax year's bill.) 

But how does this affectyour future tax bill and the tax portion of your monthly mortgage escrow payment?

When obtaining financing:  During your first year of a new construction occupancy, the real estate tax portion of your escrow account is based upon the last av…

Property Addresses: Gettin' Down to the Nitty Gritty

Property Addresses:   Gettin' Down to the Nitty Gritty

Take just a second and read through the following statements ...


“The devil is in the details” 
... "in life, it is often the tiny details that end up 
being the most important"

"Get Down To The Nitty Gritty"

“Little details have special talents in 
creating big problems!” 

“Sweat the details”

"Success is the sum of details"

Details ...Details ... it's all about the details ...
     And I'll admit it, I'm a bit of a nerd about them.  My whole family is.  Details, the intricacies, the little things ... they matter to us.
When I was growing up, a typical conversation (and argument) between my brothers and myself at the dinner table or in the backyard centered around "details".  It didn't matter what the topic was, it was the minor differences ... the details about the topic ... that we argued about.  I'm sure we drove our parents crazy.  
Sports statistics and games ... minutiae rega…

Ready for Fall? It's Arriving Soon

Ready for Fall?  It's Arriving Soon

Friend ...

Maybe it's because football season has started. Maybe it's the kids being back in school. Or because the night air is cooler. But a sense of Fall has arrived here in Chicagoland ...

The Fall Season brings changes with it. Changes in temperatures. Changes to the clothing we wear. Our focus seems to shift with the coming of shorter days, falling leaves, and crisp air.

Fall can be the perfect time to do a multitude of things. You can prep your home for the upcoming winter weather ... or for Fall listing and sale. 

But whether you're moving on or staying put, Fall is a great time to declutter and organize your home inside and out ... and your finances too.

I've googled like crazy to find interesting articles filled with Fall info, ideas, tips, and photos. Articles that will help you usher the Fall Season in at your house. I hope you enjoy reading the articles offered below and that they inspire you to make any needed changes.

Rem…