Stacy Neilson is a student at Iowa State University. She says she has learnt valuable lessons of life from her Mother. She is our 2nd Runner up and has won an amount of $75. Her chosen topic: Is it crucial to establish and maintain sound financial credit during your college years?
The answer to this for me would be yes. I say yes because, without proper credit, it is tough to obtain items when you are ready to. I have seen my mother struggle because she messed up her credit while she was in college. She was a student who accepted every credit card that was sent to her. She now tells me that she did not have a job and therefore did not have a way for paying the credit card off. She has significant problems trying to purchase simple items. She says that if someone does take a chance on her, then her interest rate will be extremely high, but she does not have a choice. She has explained this to me over and over. I understand what she is talking about because I know she is not able to purchase items on credit. She has explained that if and when a credit company sends me a card, I should not use it if I cannot pay the bill. I know I will be a college student with minimal income and I know that I should not use a credit card if I cannot pay the balance. Even though it may be tempting to use a credit card, I will not. I will be a student who does not work during school. I figure that I may not have credit when I leave college in four years, but at least I know my credit will not be damaged. It is important to develop good habits and continue to use them as you mature. I took a finance class, and it helped me understand the importance of not spending more money than what you have. It is a very simple statement but also very powerful. I believe people use credit for the wrong reasons and therefore, they have a bad experience. It usually takes time to repair your credit once it is messed up and you have to start over. If in college you can maintain your credit, you will come out with one less worry of having to pay credit card bills.