Why Is a Good Credit Score Important for Students?

Video Transcript

"Hi, my name is Bill Rae. I'm with Alumni Financial Services out of Seminole, Florida. I've been in business for over twenty five years. The question today is why is a credit score important for students? Well, I can tell you several years ago we used to have a student loan business, and one of the reasons why a good credit score is important for students especially today is you may find yourself in a situation where maybe you're continuing on with school, or the school you're trying to go to even now is, the cost to be in that school is higher than what the federal government is willin' to loan you either on the Perkins or on the FASFA or when you do your FASFA form, to get Stafford's whether sub or un-sub. If you're in school you understand what that means. So, there may be a time where you need to go borrow extra money and have private loans to help you overcome the cost of schooling, such as labs and books, housing, things like that. Another reason it's important for college students to have good credit scores or good credit is if you're building a habit of having good credit, meaning you're taking on obligations and you're payin' it as you promise, is you are setting a pattern for your life. And if you have good credit scores and you understand the value of that good credit, meaning you understand that money is hard to come by and that you honor what you say, you are building a reputation that will carry you a long way in life. Schools, insurance companies, potential employers, and all types of lending institutes, we all use that particular scoring to make decisions on whether we're going to work with you or not. You may not think it's fair but it is the way it is. So, if you're struggling a little bit get your budget under control, get your credit under control, and understand it's good for borrowing loans at good rates. It's good for refinancing your loans when you come out, but it's more important that it's setting a path that you're going to walk on in life. Good luck to ya. My name is Bill Rae. I'm with Alumni Financial Services. We're here to help you build true wealth."