New Culinary Arts College Students Can Monitor and Establish Good Credit

When high school graduates first start their search for a good culinary arts college, they find out very quickly, when applying for a student loan, that they are making a commitment to establish credit.  In order to do this, they will either be trying on their own to get a student loan, or be piggybacking on someone else's established credit like a parent or guardian's credit to help them get their first loan.

What they quickly find out when applying for a loan through a bank is that all lenders require an established  credit history in order to get a loan.  That is where a cosigner is needed when a student has no established or existing credit.  When finding a parent or guardian who agrees to cosign for your student loan, you will see that one of the ways banks decide who to lend to is by pulling a person's credit report.   This report will be critical in helping the bank or lender determine if they should take the risk in giving out money toward a student loan. 

Many high school graduates seeking to get a good culinary arts education, really are not educated in the matters of finance and money.  Getting your first loan through the government will be an experience in learning how to do paperwork the right way to apply.  However, once that loan is approved, the hard part starts.  The checks are sent to the new student.  Sometimes the checks are quite large and the student gets the impression that they are now "rich".  This is a common feeling because many students have never seen a check quite as large as the ones that students can receive when they apply for a loan.  At times they forget what the loan is for and start out by using the loan for unnecessary items, forgetting to carefully budget what they have received. 

The money received for your culinary arts education is to go toward the payment for your college credits, books and living expenses.  It's not a good idea to pay for those expenses last (as many new students do) while spending the money on other things because you will quickly find out that there isn't enough money to go around when the basics need paid for. 

Once the student finishes up using all of the funds that were given to him/her either through the government or a private lender, and the student graduates, it is critical that the student understand that paying back any type of loan in a timely manner is necessary.  This helps the student establish good credit which can be very helpful in getting necessary items needed in the future.  For example, the student may need to buy a car once they start their new job upon graduation.  Or, perhaps they will need to find a place to live.  If a small credit history has already been established because s/he started to repay their loans and they were being paid on time, it is more likely that they will have an advantage in getting more credit for the things they need. 

It's always a good idea before making a purchase, to check out their own credit score.  There are companies out there who will offer a "free credit score" trial period.  This is oftentimes a great deal because it helps you keep track of where your credit is and where it is going in the future.  You can always upgrade to a paid monthly credit score report if you choose, but your initial credit score can be obtained for free once you sign up.

Students should always keep in mind that it's fun to get their student loan checks in the mail, but with that loan comes a responsibility that will lay the foundation for establishing good credit for the rest of his/her life.  Bad credit ruins the opportunity to do many of the basic things that will need to be done in the future, including getting a good job so it's critical that this issue is taken seriously.