The Truth About Life After College
As a recent college graduate, I can tell you first hand that life after college is a lot more challenging than you may expect. Shortly after college I decided to move in with a few friends who were still finishing up their senior year at a nearby school. Basically, I was putting off “the real world†by living in a college setting for a 5th year. Great times were had by all, but I soon faced the harsh realization that I wasn’t in my 5th year of college, and was indeed on my own.
On the first of each month rent was due; only this time around I didn’t have Mom and Dad to foot the bill like in years past. Groceries? They cost me an arm and a leg. Either I was completely naive to the actual cost or was woofing them down like Kobayashi in a hot dog eating contest. I actually found myself longing for my school’s meal plan; the same meal plan a year earlier I was complaining about because they didn’t offer cheese-it’s in the cafeteria. What a fool I was. I didn’t realize how good I had it.
I held an entry-level position with nominal pay and was responsible for paying rent, groceries, commuting fees, etc, and still living it up on the weekends like I was Frank The Tank from Old School. Needless to say, I was just squeaking by, and had my girlfriend’s birthday on the horizon. It was then I decided to apply for a credit card.
Throughout college I was not in need of a credit card. I worked about 30 hours per week and my parents contributed a significant amount of money toward my bills. I was certainly appreciative for Mom and Dad, but their generosity actually ended up costing me money later.
Because I hadn’t establish ANY credit during my carefree college years my applications for credit cards with decent APRs were denied, and I was forced to get a student card even though I had already graduated due to my lack of credit. The APR was around 17%. Being naive to credit in general, I didn’t pay much attention to the APR at the time. When I decided to take a few continuing education classes I just swiped the plastic. It was moves like this that slowly made a few hundred dollars become a few thousand.
I was shocked when my minimum payment went up from 20 dollars a month to nearly a hundred. It was then I realized I was basically just paying off the interest. I felt like a fool. Ignorance is not always bliss.
I was finally able to pay off my card a couple years later, by transferring my high balance over to a card that had a 0% introductory rate for six months. I stopped partying and focused on the task at hand. If I only knew then what I know now.
If you live long enough, you’ll make mistakes. But if you learn from them, you’ll be a better person for it. Learn from me.
1) BUILD YOUR CREDIT EARLY. Just because you are “all set†during college does not mean that you should not pay attention to the future. I did not need a credit card, but was not building credit. When the time came that I actually needed a card, I ended up with the high APR card since I did not have credit.. Get a student credit card as a student and put small purchases on it each month like gas, your cell phone bill, etc. Pay it off each month, and build your credit with no harm done.
2). PAY ATTENTION TO DETAILS. A high APR card is fine – IF you pay off your total each month. A lot of students, like myself, do not pay attention to this until its too late.
What do you think? What are your plans after graduation? Are you going to try to give the “real world” an honest shot? If you are, what are your plans for financial success?!? Please comment below!!
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thanks that was helpful
thank you soo much.
Thankx for this great information. Now i realize that live during and after college is hard no matter is you have rich parents who pay for anything you want or even if you have to work to pay for your own bills, gas, internet bill , etc. And also i now know not to apply for credits unless i am sure about it.
This is very helpful.Also read the fine print on everything.
Thats helpful!
I think credit cards are evil personally I had I regret ever getting them.After accomplishing my goal of a bachelor degree in nursing I will be satisfied.Also my fiancee’ will get married go on a vacation that well deserved and make and adopt children. Of course I fell no matter how hard society is it will always keep your mind and eyes open no matter how cruel it is.The world will give you life lesson wheter you like it or not and give you a thick skin.My plans for financial success is saving using coupons and know how to haggle.
I got a card just for books and didn’t pay much attention to the low monthly payment either. Then suddenly it was 2 semesters, 4 semesters, a movie here and there – and suddenly the card was maxed out, and I was paying out the nose.
Now I’ve got 4 open credit cards, and I’m almost done paying off the 3rd one (FINALLY). If you get into a situation like this, it’s important to know not to just shut off the card – that will do damage to the credit you worked so hard to build. You can opt to lower your limit, but you should continue making small purchases that you pay off every month. This will keep the cards active and open, and be better for your credit in the long run.
this is a good life learning experience that should be taught in some way.people dont know reality until they are living in it.. this article is a good example
I had to get a student credit card because I was so behind on payments. But every summer I was able to completely pay it off. Such a great way to build credit. Glad to know this information is being spread around.
this does make you want to start saving money just in case. I will not now nor ever rely on my parents for nay money. I have had a credit card for two years (sense i was 14) and am keeping up with it. i think i should be fine in the real world but im sure its much harder then it seems.
so helpful!
I did not know you needed to set up credit during college. thanks for the advise
Wow I didn’t know that. I was taught that accepting a credit card would force a ideas to students into getting themselves in debt? But with your insights, i guess buying and paying items cheaplly would help me get a good credit score in the future. Thanks.
this information was crucial and detromental thanks for imforming me of these mere decisions that will send your credit on a downward spiral.
this is very helpful.
very good & important artica
good
im kinda dealing with the same problem and im stilla senior in high school.. it takes alot of responsibility to have a credit card
very interesting
Helpful
very useful advice…these type of stories should be publicized to college students more often before making commitments dealing with credit, money, etc.
I’ve had to pay for everything since 4th grade except for medical and groceries so I have learned to save but I recently got a debit card and I am struggling to keep myself from whipping it out all the time. It will be even harder when I get a credit card,so THANKS FOR THE ADVICE!
after reading this article, it has encouraged me to get a credit card, thanks so muchc
i am thanking u very much for introducing me to credit card, this article has been so useful to me.
Well, I’ve owned credit cards for a couple years now, so according to this article, I did a good thing by doing that cuz now I’ve built some credit card history.