Why should I care about credit? I am invincible!

We know that you got into an awesome college of your choice. You finally moved away from your parents. The adrenaline and anxiety is overwhelming. Roommate, workload, classes and friends at home are occupying everyone’s mind. For someone of us, the next four years is awesome, emotional, tiring and exhilarating at the same time.

You attend every class, nailing those exams, making great life long friends and most importantly getting ready for the next stage of your life.

If you are in Princeton, Yales, Stanford or Duke, your average GPA is 3.28, 3.51, 3.55 and 3.44 respectively. If you study Engineering, Math, Biology or Chemistry, your GPA is 2.90, 2.90, 3.02 and 2.78 respectively.

We become obsessed with numbers.

There is another number that could be as important as your GPA, that is a credit score. Often, we hear from our students that they found out about not having credit after graduation. When they are apply at SOFI, Common Bond for a student refinance loan, or getting their first new car at Ford or Toyota, they are all of the sudden comforted with the harsh reality of not having any credit.

What is credit?

Credit is a measure of your capacity to borrow and pay back. A number that measures that capacity is called a credit score. Some of us might have heard of a type of credit score called FICO. It is a company called Fair Isaac that takes information from your credit report to calculate a credit score. It uses things such as how long you have been on credit bureau’s radar, are you paying your financial obligations on time and so forth. It is a score typically between 300 to 900. The higher the score, the better FICO thinks your ability to borrow and pay back is.

There is just one problem…

You have to have credit to get a credit score. Where do you start?  Am I already too late to build my credit? How come no one has talked to be about credit? My parents told me that credit card is bad and you shouldn’t spend more than you earn. Some of the credit card products are bad with high interests and fees and we all agree that you shouldn’t overspend. However, have a great credit or credit score is essential to get the best pricing when you refinance your student loans, buying that shinny new car or even getting the apartment you really wanted.

What are my options?

7 years ago, the government essentially prevented large banks and credit card issuers from going on campus and advertise their products. The reason was to prevent credit card companies to over charge students with fees. The gesture is commendable but the unindented consequence is that the banks were reporting these activities to credit bureaus and in a way, helping students to build credit. That option is no longer available.

In come Fluid. We are now offering a great app served up right on your phone to offer a no cost micro loan to help you build credit while you are in college. Instead of finding out about credit and credit score after college, Fluid will equip you with knowledge and put a product in your hands that actually build credit. Signing up with Credit Karma and Nerdwallet has it’s perks but they don’t offer a finance product that actually help you build credit. Using Venmo to pay your friends is a great way to settle your bills, but you have to have some dough to start. Fluid solves both of these problems.

Give us a try and we love to hear your thoughts on this product: Download it here: https://itunes.apple.com/us/app/fluid-app/id1157853544?mt=8

Team Fluid

Founder and CEO
Timothy Li is a serial FinTech entrepreneur. He is the Founder & CEO of Fluid Credit, a credit building app exclusively for 22 million university students. Tim has held various C-level & advisory positions at RocketLoans (Quicken Loans), RealtyMogul, Kabbage, LoanDepot, Mosaic, Blinker, Think Finance, Experian and JPMorgan Chase. He’s is a senior contributor at CrowdFundInsider.com and speaks at various FinTech conferences.

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