Avoiding The 'Freshman $15,000'
Ever heard of "the freshman 15," the weight gain that supposedly attaches itself to new college students? Try this on for size, so to speak: "the freshman $15,000," or the unnecessarily high expenditures of freedom-dazzled youngsters.That $15k figure isn't based on any actual debt amount; it's just a play on words that's floating around the blogosphere. But given how many students graduate tens of thousands of dollars in debt, it's not hard to imagine racking up $15k per year just on tuition, fees and books.
That's before we even get to problems like:
- Too-frequent swipes of the debit card (hello, bank fees!).
- Overspending on entertainment, dorm d�cor and meals out.
- Abusing credit cards (despite the Credit CARD Act, the under-21 crowd can still get credit).
- Not understanding that private student loan interest rates are variable.
- Using "extra" loan money for a lavish lifestyle.
How to avoid these mistakes?
Five Myths About Credit Scores And Insurance
Apply for auto or homeowner's insurance and chances are you'll find an inquiry on your credit report from the insurance company. Why and how do insurance companies use your credit information? Lamont Boyd, FICO's director of global scoring solutions for the insurance market, joined me for an interview on Talk Credit Radio to explain how credit information - specifically in FICO's case, the "credit-based insurance scores" they power - are used by insurers. Following are five "myths" he dispells about how your credit affects the insurance you get.