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Lori Johnson
Lori Johnson is an insurance agent for Farm Bureau Financial Services, located at 219 S. Ozark, Girard, KS 66743. She can provide strategies for all stages of life: Vehicle, Homeowners, Farm, Business, Life Insurance, Annuities, Mutual Funds, Disability, Long-Term Care, Retirement and Education Funding, She is your resource for innovative insurance and investment products and services. To schedule an appointment, please call (620)724-4213 or email lori.johnson@fbfs.com.
Banking & Finance
2012-08-29 15:46:45
A (credit) history lesson for college students
Q- My high school grad is off to college. With this being his first time (on his own) managing money, credit cards, and basically life in general, what can I tell him to make sure he understands the importance of maintaining his money and his credit?
A- Autumn is in the air and college campuses are abuzz with the pursuit of higher education. For many students, college is their first experience with managing personal finances, and the allure of credit cards – spend now, pay later – can be hard to resist. A study by Sallie Mae found that 82 percent of college students with credit cards carry a balance from month to month, incurring finance charges and putting their credit history at risk. Once a person’s credit history becomes adversely affected by poor financial choices, it could result in more than just a high interest rate. Job applicant – Nowadays employers routinely check a person’s credit history as part of the hiring process. Some employers use credit checks as a simple character reference tool. A good credit report may indicate trustworthiness and dependability. For rent – Landlords often rent to people with the best credit histories, and for good reason. Having a favorable credit history may also help lower the security deposit required or the need for a co-signer on a lease. Loan approval – Getting approved for a car loan or mortgage is easier with good credit standing, and often leads to a more competitive interest rate. Car and home insurance – History has shown a connection between credit history and insurance risk. A possible reason is that people who are financially responsible tend to be responsible in other areas of their lives, which may lead to fewer accidents. For that reason, a good credit history usually means lower insurance premiums. Making smart financial choices while earning a degree could help future graduates save money now and in the future.
 
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