Identifying the catchy jingles of the FreeCreditReport.com guy, troubadour of the credit woes of the American masses, may be easy, but keeping up your own credit score may not.
Financial advisers agree having a credit card in college is beneficial in the long run.
"Everyone will build a credit score," said John Jahera, Colonial Bank distinguished professor and department head of finance. "For college students, I think it is important to start building one. A credit card is a good way for a college student to start building that credit history and building the credit score. You know, you have to start somewhere."
Jahera said establishing credit in college is a good idea, similar to building your GPA.
"Each course either adds or takes away from your grade point average, right?" he said. "Everything you do with regard to your credit will either add to your credit score or take away."
Having a credit card in college is a steppingstone into the future.
Establishing good credit now pays off later in life when trying to buy a car or house--if the spending doesn't get out of hand, that is.
"College students are obviously very early on in their lives, and you don't want to start off immediately with a bad credit score," Jahera said. "You'd rather start off with a good one and hopefully keep it."
He said people need to understand a credit card is not free money. According to Jahera, it is a matter of controlling spending urges.
If the desire to overspend can be controlled and good credit maintained, people will be well-off.
"It makes life a lot easier," he said.
Bud Bliss, freshman in biosystems engineering, agrees and understands the benefit of smart credit card usage and a good credit score.
"If you use (a credit card) smartly, it builds up good credit, so you start off on a good foot for your major expenses," he said.
Building a good credit score involves more than spending smartly.
The first step, according to Amanda Harrelson, finance professor and financial adviser at Northwestern Mutual, is knowing the credit score.
"I would say that the biggest thing I see is that college students don't even know what their score is, how to find their score or how to monitor it," Harrelson said.
She said everyone is entitled to one free credit report per year, which can be obtained online. She also said there are three different credit scores, and while most places will take the one in the middle, she said it is important to know all three.
"The big things to do to maintain a good credit score would be to pay your bills on time, obviously in everything--your water bill, your power bill, your rent, your movie stores--also, pay over," she said. "It does not matter if it is one dollar over the minimum payment. The credit card then sends to the reporting companies that you pay over. They don't designate how much over, but you can get a favorable report."
According to Harrelson, it is also imperative to monitor spending because it is easy to slip.
However, she thinks it is extremely important for college students to set up credit.
"I really, really recommend for all college students to have a credit card," Harrelson said. "As young as you can, establish that you are a good, bill-paying consumer."
If someone is nervous about owning a credit card, she recommended a card with a low balance. That way, it is easy to stay out of debt, but still establish credit history.
Both Harrelson and Jahera said to be careful of fees and to research interest rates and point systems.
Regardless, credit cards are an integral part of society.
"The longer you wait, the worse it is because you're showing you've never had any history," Harrelson said.
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