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credit card?

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lisasimpson87 said:
hey, i am planning to apply to med school this summer to start in 09. i was wondering whether anyone knew anything about financial aid/getting loans. ive had some jobs and have a checking account, and when i buy things usually ill use my check card (i tell the lady "credit" but the money comes right out of my account, so it's not really a credit card). anyway, so ive never had to get any loans yet (my undergrad is very generous with scholarships), so im a little worried about how that will work. i think i need a credit rating of some sort, but do i already have one at all? how can i find out? should i get a credit card? which kind should i get so im not ripped off or anything? clearly i am completely new to this - thanks for any help 🙂
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Hi,
It really depends on the school you go to. If you go to a state school, you can usually get all of your expenses covered by government student loans (subsidized and unsubsidized). In this situation, credit will not be an issue. However, if you go to a private University where the tuition is a bit more expensive, you may have to cover some of your expenses with a grad plus or private loan. Your credit (or lack of) may come into play here.

It is always good to start building credit. Try and get a card through your bank to start. They usually have decent rates for someone starting off. However, don't start charging a ton to it. The key to credit building is your ratio of debt to available credit/ability to pay on time/ along with many other factors.

For me it has taken a long time to build my credit to a score I'm proud of. Be diligent with payments, always pay above the minimum required, and good credit will come. Good luck!
 
lisasimpson87 said:
hey, i am planning to apply to med school this summer to start in 09. i was wondering whether anyone knew anything about financial aid/getting loans. ive had some jobs and have a checking account, and when i buy things usually ill use my check card (i tell the lady "credit" but the money comes right out of my account, so it's not really a credit card). anyway, so ive never had to get any loans yet (my undergrad is very generous with scholarships), so im a little worried about how that will work. i think i need a credit rating of some sort, but do i already have one at all? how can i find out? should i get a credit card? which kind should i get so im not ripped off or anything? clearly i am completely new to this - thanks for any help 🙂
Click to expand...

Yes, you should get a credit card. The best way to build your credit rating is to just buy one thing with it every month and always pay it off. Put big purchases on the card if you know that you'll have the money to pay it off right away. By the time you're done with med school, having good credit will be very important.

For now, though, it probably won't be an issue. All of my student loan "applications" for med school were done through my school's financial aid department. There was never a credit check.

I'm sure you have some sort of credit score. If you're curious, I think you can get it at freecreditreport.com. Just make sure you don't sign up for anything when you get it.
 
remember that credit reports and scores are different, though... the credit report will show all the activity so you can investigate bogus accounts, but won't give you the number.

does anyone know if student loan payments are taken into account with regards to your credit score?
 
Taylorcraft46 said:
does anyone know if student loan payments are taken into account with regards to your credit score?
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Yes they show up. Student loans show up as installation loans (like car loans, opposed to revolving credit like credit cards).
 
I would get one now while you're still in college because it's much easier. The credit card you should get depends on what you're using it for. If you plan to pay off your bill in total every month, I would get the credit card with the most rewards (interest rate doesn't matter). If you plan to carry over debt, then you should obviously choose one with a low interest rates (might not get rewards though). The lowest interest rates you can probably get right now is between 10-14%, so I'd aim for those if you want to carry over debt.

Good luck
 
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