As the summer nears its end, many college-aged students are preparing for what is often a major transition—the university life. While this often serves as those students' first time away from home, it's also frequently their initial foray with financial independence.
As such, the Insurance Information Institute recently detailed how developing a clean credit rating can impact them over the next several years.
For instance, the III says a good credit history can help students successfully land a job, as many employers often review applicants' financial profile. A student with good credit may have an advantage over others who have little or none.
If students want to live in an apartment rather than a dorm, the III says credit history often factors into whether a landlord will rent out the living space.
Lenders also rely on a student's borrowing history, as III says a positive one enhances the chances a student's application is approved.
Because college students may have limited credit, lenders and landlords may require them to have someone with a more extensive history to co-sign. Before a parent co-signs, they may want to consult with a credit repair attorney, as the lawyer may be able to identify inaccuracies preventing a score from reaching its potential.