DePaul Financial Fitness : Control Credit - Debt: Establish Good Credit

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Control Credit - Debt

Establish Good Credit

To establish and maintain a good credit history, you should:

Pay your bills on time.
Know how your credit score is calculated.
Check your credit score annually at www.annualcreditreport.com.
Try never to exceed more than 30-50% of your credit limit. For example, if you have a credit card with a $1000 limit, you should carry a balance no greater than $500. Less is better!
Limit the number of cards you have. If you are just starting to build your credit, keep only 1-2 cards. As you establish credit, you can increase that number if necessary to 2-4 cards.
Watch number of credit inquiries. Don't open several new accounts in a short period of time.
Use your credit card at least once every six months. It is to your advantage for your credit report to reflect current responsible use of your credit accounts. Charge what you know you can afford and pay it in full when the bill arrives.

48% of credit card owners only pay their minimum monthly payment each month.
The average household with debt carries approximately $10,000 to $12,000 in total revolving debt and has 9 credit cards.
Credit card companies usually offer credit limits to college students between $500 and $3000, with higher interest rates than non-students, between 18% and 20%.
The US has recently seen an over 50% increase in bankruptcies among people under age 25 (fastest growing age range for bankruptcies).
Total consumer debt topped $2 trillion for the first time in 2003.
66% of Americans don't pay off their entire credit card bill each month.
Persons entering college are offered an average of 8 credit cards the first week of school.
55% of college students acquire their first credit card during their first year of college, and 83% of college students have at least one credit card.
45% of college students are in credit card debt, the average credit card debt being $3,066.
Undergraduates students carry an average of three credit cards.
Graduating students have an average of $20,402 in combined education loan and credit card balances.
20% of graduating college students have $10,000 or more in non-school related credit card debt.
University administrators state that they lose more students to credit card debt than to academic failure.
Students double their average credit card debt-and triple the number of credit cards in their wallets-from the time they arrive on campus until graduation.