Obtaining A Credit Score Is An Important Aspect Of Finance Essays

Obtaining A Credit Score Is An Important Aspect Of Finance Essays

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College is when many of us spread our wings and leave the nest. Away from our parents and guardians that protected us from what was out there to hurt us. Commercial banks’ most favorite hunting ground is at college campuses. Young adults who have been told to get a credit card, or buy a car with an auto loan so they can “build credit” because that is a mature thing to do. Well here we are, American college students, ready to do what everyone is tell us to do, start a credit score. But is that really we should do? Obtaining a credit score is an important aspect of finance to many, but credit had developed into a virus after thousands of years that has affected Americans mindset, our behaviors, and how we will live our lives in the future. So let’s start with the basics, what is credit? Credit is the ability of a customer to obtain goods or services before payment. But how mu





History:
History is never exciting but, like Louis Hyman said, “Understanding the history of debt gives us a sense of both debt’s possibilities and its dangers […] American’s have both sept soundly and been made sleepless because of their debt, but to plan where we need to go now, we must understand debt’s all-too-concrete realities today” (Hyman p14). Even though Grandma swears by using her checks in her pocketbook and cringe at the idea of credit cards because that not how they did it “back in the day” borrowing has always been around. More prevalent than she makes it seem. The use of credit has been around nearly as long as humans. But, I want to focus specifically on American’s consumer credit issues. At the turn of the 19th century, lending money for consumption was way different than it is today. As this old business poster suggests, if a business ...


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...gainst us. Young consumers have the second largest rate of bankruptcy (Sotiropoulos). One problem that is commonly seen is that college students are borrowing for immediate gratification against their hopeful future career incomes, not their waiting tables’ income (Sotiropoulos). “More than three-quarters of renters between the ages of 18 and 24 spend more than they earn every month” said M. White. In a study from Ohio State University, kids that is even a decade older than us are more in debt at the same points of life than any generation prior. Lucia Dunn, professor of economics at Ohio State says, “Our projections are that the typical credit card holder among younger Americans who keeps a balance will die still in debt to credit card companies.” So by the looks of it our batting average is subpar, but that doesn’t mean we all have to strikeout in finances.





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