In just about all cases of applying for a loan, cell phone, apartment, and even sometimes a job you will need to prove your financial worthiness with a credit report.  Many times after you’ve graduated from school, landed a job that pays plenty of “stacks” and even paid back the dough you were loaned by Moms, you will still find it difficult to get approved for credit.

If you’ve gone your whole life up until this point with no credit cards or other debt, you are on the right track!  However, if there is no record of your money handling decisions and with no credit history you will be viewed by creditors as risky business.  Without credit history, how else could creditors know you’re not the next Allen Iverson (Apparently, he didn’t like to “Practice” saving and spending discipline either).

How do I establish a credit history if no one will give me credit do you ask?  Well, we’ve laid out some suggestions here.

Secured credit card

One great way to start building your credit is with a secured credit card.  A secured credit card in most ways is just like the unsecured credit card you are familiar with; however it requires a security deposit generally ranging from $300-$500 and an annual fee of about $40.  This provides assurance to creditors that you will repay your debt, think of it like going bowling and swapping your Jordan’s for the funny looking clown bowling shoes, we’re almost certain that those bowling shoes won’t accidentally leaving the bowling alley.

Although, a secured credit card is backed by your funds, which may resemble a debit card, it is not a debit card at all. With debit cards your usage is not reported to the 3 major credit bureaus (Equifax, Experian, and Transunion). With a secured credit card you are not borrowing against your security deposit, but directly from the creditor and that activity is tracked and reported. Check out Bank of America’s secured card.

Student Loans

Last week we discussed how NOT to abuse student loans in the post Ballin’ on a Budget , and with that in mind note that repaying student loans can help build your credit.  Many federal student loans are based on need and not your credit score, so in most cases you won’t be turned down.  Subsequently, six months after you graduate most creditors will be hitting you with a full court press that rivals that of Basketball “non-wives” receiving child support, and expecting you to cut them a check each month. Consistent and timely payments after graduation can show that you are a responsible borrower, which can boost your credit score.

Co-Sign?

This final option, Co-Signing, is like dating a pretty girl with a bad attitude, seems like a good idea at the time, but can leave you with headache and regret.  Becoming a co-signer on a credit card or loan can be a great option if the person you are co-signing with has great credit and can be relied upon to make payments (if that person exist in your circle, marry them).  However, if you or the other person fails to make payments on time BOTH of your credit scores will be negatively impacted.  Yep, both of you getting messed up credit “at the same damn time.”  #Futurevoice

Your credit can potentially permit and prevent you from obtaining certain luxuries in life.  You can try any of these credit building methods for one year and after that, your credit will likely have improved and you can move on to bigger and better things!   U DEFINE SUCCESS

www.cap1on1.com

Getting into debt for education is an investment.  Of course, some if not all of this debt can be absorbed with scholarships, financial aid, and grants, GREAT!  However, most times it isn’t, thus enters most college students first financial bully… Sallie Mae, and ironically her favorite song right now is by Rick Ross, “Where My Money.”  We have no qualms with owing Sallie Mae for education, but what gets the epic fail is when student loans are used for clothes, spring break trips, bottle service at the club, hair appointments, video games, and a variety of other luxuries that should be foregone until you have at least saved more “stacks” than you are in years, and have less debt than the size Jordan’s you may wear.  Now, we certainly know what it’s like to be a broke college student, but being broke builds character!  Well maybe not, but for most students being broke is a reality!  Student loan debt must be taken on with the utmost care and not spent frivolously.

Sky High Debt

Currently, the US student loan debt has ballooned to over $1 Trillion!  This explains how dependent most students are on loans, and also shows how we are taking on debt more freely and sometimes recklessly.  It’s so easy to go online and get another one, two, or ten thousand dollars that most students take out what they need and much more in the name of racks on racks on racks. Not understanding that after they’ve finished their education, gotten a “secure” job, and are ready to make payments, their loan balance could have more than DOUBLED!  We know how compound interest works in your favor when investing, however it works against you when borrowing.

Borrowing Smart

Now, we’re not going to grill you about how you need to clean up your student loan funded splurging without offering some friendly advice:

Brand Affiliation(s): Urban Professor, The Culture LP

Job Title: Founder/Blogger at The Culture LP, Social Media Strategist at Urban Professor, & Corporate Human Resources Analyst

Age: 22

UP: Mike, thanks for the interview and congrats on the recent graduation.  So, what are your current titles? How do you label yourself?

Mike: I label myself as a Social Media Strategist and Human Resources Analyst

UP: Really, What’s the motivating factor that drove you in these industries?

Mike: I already liked to tweet a lot, and after reading more on social media I realized that there is money to be made in this rapidly developing craft. In terms of Human Resources, I interned as a finance operations analyst and decided that I’d rather be involved with recruiting, developing, and retaining personnel as opposed to moving and reporting on financial instruments.

UP: Was college necessary for your current career/position?

Mike: College was definitely a requirement to get into the program I’m in, there’s a GPA requirement and you need a Bachelor’s degree to be eligible.

UP: How has being a minority affected your career pursuits?

Mike: Being a minority has made me realize that there is a lot of headway to be made in terms of corporate diversity strategies, but has also helped me accept that I can change some of these issues in “Corporate America”.

UP: When was the last time you’ve been inspired?  From what?

Mike: Hate to give the momma’s boy response, but my mother working on her own as a graphic artist successfully over the last 10 plus years inspires me on a daily basis.

UP: With hindsight being 20/20, what would you have done differently in regards to education to help your career now?

Mike: I would have joined more professional networks as a student, for exampled the Society of Human Resources Management has a boatload of resources available for aspiring professionals. The same goes for my digital ambitions, attending more conferences and seminars, as an undergrad would have been a good look.

UP: Oh, to be a 20 years old college student getting a refund check again, knowing what you know now, but given the opportunity to be that 20 year old student again.  How would you use your refund check differently?

Mike: I would definitely attempt to save some more, and probably invest. With hindsight I’d have invested in Apple or Google, I had fun in school but investing at the wines & spirits store in your local college town is not financially savvy.

UP: Success is good for confidence, but failure is a great teacher.  What have you learned from failure?

Mike: I’ve learned that you can almost never prepare too much in advance. Murphy’s Law is real, what can go wrong will go wrong. You have to account for every possible glitch or misstep.

UP: Most influential book you’ve read?

Mike: After I finish “The End of Marketing As We Know It” I’m trying to get to “The Tipping Point” as I’ve been told it shows readers how a little effort can go a long way.

(Click book to purchase)

UP: How do U Define Success?

Mike: “Success is doing what you want to do, when you want, where you want, with whom you want, as much as you want.” – Anthony Robbins.  I want to get to the point where more of my time is spent doing what I love as opposed to working for someone else.

UP: What’s a quote that you live by?

Mike: Not sure if this is a quote or not, but to always keep the bigger picture in mind. It’s important to not get caught up on small failures or successes for that matter.

UP: Drop a nugget.  What’s something that you want to put the Urban Professor audience on to?

Mike: Check out my blogsite TheCultureLP.com, follow it on twitter, instagram, tumblr, and like us on facebook.  Or at least do one of the 4!  It’s a site about culture, lifestyle, and progress with a creative and insightful feel.  Big things to come.  Also follow me on twitter @Mike_CLP or @Mtonge02 (professional page about HR & finance).

Thanks and U DEFINE SUCCESS…

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Terrence Southern

Pepsico

Sr. Program Manager

How do U Define Success?: The moment you realize that the effort you put forth to climb a continuous elevating mountain only made you stronger as you moved forward and there is no benefit in looking back.

Hustle Move: iLLUMINATE STEM
Favorite Quote – “Self-trust is the first secret to success.”
Fashion Pet Peeve: Wrinkled clothes, sunglasses at night

Favorite Book: Think Big by Dr. Ben Carson, MD

Favorite city to visit: New York City
Most Inspirational Brand(s): Apple, Nike
If life were a class, who would be your professor?: Jay-Z, Ray Roberts (mentor), Martin Luther King Jr., Henry David Thoreau

Daniel Hibbert

Goldman Sachs & Co.

Equities Middle Office Analyst

How do U Define Success?: Living without two things – an alarm clock and a credit card… I want to love what I do so much that it wakes me up in the morning and also make the kind of money doing this labor of love that I am always a lender – never a borrower.

Hustle Move: Hudson West Consulting, LLC. (management and strategy consulting for small business startups. For more info: info@hudsonwestconsulting.com
Favorite Quote – “The mind is a wonderful servant, but a terrible master.” – Robin Sharma
Fashion Pet Peeve: The “parachute shirt” – oversized shirts on men.
Most Inspirational Brand(s): Apple
If life were a class, who would be your professor?: Jay-Z

Charmin Bates

Macy’s Co

Production Assistant

How do U Define Success: Humility, Determination, Persistence (In that order! Lol)

Favorite Quote – “I am the true vine, and my Father is the gardener. He cuts off every branch in me that bears no fruit, while every branch that does bear fruit he prunes so that it will be even more fruitful.” – John 15: 1-2
Fashion Pet Peeve: Men wearing white socks with any wardrobe except workout/gym clothes
Most Inspirational Brand(s): Nike
Favorite Book: Why Not You? 28 Days to Authentic Confidence by Valerie Burton
Favorite City to Visit: Chicago, IL

Tony Forte

Urban Professor

Brand Director

How do U Define Success: Habitually raising the bar on your former self

Hustle Move(s) – Public Speaking and Voice Overs

Favorite Quote – “When you can do the common things in life, in an uncommon way, you will command the attention of the world.” – George Washington Carver
Fashion Pet Peeve – unvented suits, suits with sneakers, shades at night
Favorite Book – The Alchemist by Paulo Coelho
Most Inspirational Brand(s) – Nike, American Express, Disney, Cirque Du Soleil
Favorite city to visit(visited) – Rome
If life were a class, who would be your professor(s)? Mahatma Gandhi, Napoleon Bonaparte and Marcus Aurelius

Lorenzo Robinson

Clear Channel Media

Account Executive

How do U Define Success? Tackling one small goal at a time that ultimately builds to your big goals.
Hustle Move: LokeyTV
Favorite Quote: “You can have anything you want if you will give up the belief that you can’t have it.” – Dr. Robert Anthony
Favorite Book: The Purpose Driven Life by Rick Warren
Most Inspirational Brand(s): Red Bull

Zak Hoke

Supra

Retail Marketing Director

How do U Define Success: By the look in the eyes of my wife and son
Hustle Move: ATR-Addicted to Retail; Gommi Arcade
Fashion Pet Peeve: Trends
Favorite Book: The Monk Who Sold his Ferrari by Robin Sharma
Most Inspirational Brand(s): Apple, Nike
Favorite city to visit(visited): Tokyo, London
If life were a class, who would be your professor? Mohandas Karamchand Gandhi, El-Hajj Malik El-Shabazz, and Richard Buckminister Fuller

Cherish Samuels

McDonald’s US, LLC

Project Engineer – Mechanical

How do U Define Success?: Success is that overwhelming feeling of knowing that you achieved your goal. When you reach a point of being at well-being.
Hustle Move: No hustle, just a creative outlet – http://www.therealcherish.blogspot.com
Favorite Quote: “Our deepest is not that we are inadequate. Our deepest fear is that we are powerful beyond measure.” – Marianne Williamson
Fashion Pet Peeve: Perfectly color matched shoes + belt + purses
Most Inspirational Brand(s): McDonald’s, Disney, Nike
Favorite city to visit(visited): Miami, I would go every month if I could