5 Biggest Credit Risks for College Students – How to Avoid Them

Tue, Sep 11, 2012

Financial Advice

There are five major risks you face as a college student that can affect your credit in a negative way.  And bad credit can keep you from getting the things that you want later on in life. Knowing what these credit risks are and how to avoid them will be very important to you now, and then.

Signing up for Credit Cards
Millions of college students sign up for credit cards every year. Yet this can be one of the biggest mistakes a college student can make. Applying for a credit card without a means of repayment can spell danger. It can come back to bite you when it’s time to purchase something big, like a home, later in life. One solution to the credit card trap is to recognize what it is and avoid it altogether. Upon receiving credit card offers, you should destroy them so that they don’t seem so tempting.

Identity Theft
Another potential risk in college is identity theft.  Identity theft is growing every year and anyone could end up being a victim. There are so many times in college when you could be exposed to identity theft that it’s best to know how to protect yourself and avoid the situation. One solution is to safeguard your financial documents. Make sure to keep your passport, license and other personal documents in a safe place where others can’t see or get them.

Getting Arrested
Another one of the biggest risks in college is getting arrested, which can definitely affect your credit.  Also, arrests come with big legal fees that can set your budget back. Be prepared, and have the contact information of a criminal attorney on hand in case a criminal situation arises. A lawyer in this situation could help you to minimize the charges and, in the words of our Orlando criminal attorney, even in Florida it’s possible for a good lawyer to help expunge the charges from your record.

Breaking a Lease
You may end up finding the apartment of your dreams at some point in your college years only to realize later it was not the apartment for you. If you ever have to break your lease, it can affect your credit in a negative way. One way to avoid this trap is to research for reviews online before moving in, and make sure you know everything about an apartment there is to know, including whether it is in a safe neighborhood.

Failing Grades
Another big credit risk of college is the risk that you fail out or don’t finish. If you don’t finish, you may still be stuck with costly student loans which can affect your credit in the worst way. One way to avoid this risk is to study and take college seriously. College is a privilege that not everyone gets to take advantage of.  If you take each class seriously and commit to your coursework, you can avoid failing grades and tumbling credit scores.

College is a great experience, but what happens in college can affect your credit in the long run. Whether you need a defense attorney or you just need to cut up and destroy all incoming credit card offers, there are ways to avoid the risks of college. Staying up on classes and staying out of trouble can lead to success later on.

Ann Bailey is a former journalist and current guest writer in the Arts, Business, and Legal fields.  She is a contributing writer for the nationally positioned Orlando criminal attorney firm of Katz & Phillips, and reports on the various legal fields in which they specialize. The firm defends anyone accused of or arrested for state or federal crimes including  theft, fraud, DUI, and Internet or white collar crimes.

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