Nick Farina: you're throwing away half an excuse to not have credit. You're now just an adult with not a lot of income and no credit. So there are still strategies that you can use to try and build up your credit score if you're a graduate from a university with no credit score. Secured credit cards are a good way building up your credit, even accepting a low line of credit, getting a cosignor, someone who's willing. There's still a number of ways, but it becomes much harder. That's really confronting a lot of people as thoughts and people last week who have said, “I'm out of college. I'm thinking right now that I want to get a mortgage, maybe in four to five years. That I want to go to graduate school.” And they don't have any credit and they're getting denied by credit card company after credit card company because credit card companies are over-compensating. Now they don't want to give credit. That's one of the biggest problems that you'll have, but there are ways to combat that.
Monty Loree: I just, for an interjection, want to say that I'm talking with Nick Farina from the blog moneyinenglish.com. Nick blogs about personal finance for young people. Let's continue on here. So you're saying that young people can actually have a plan here as far as getting a mortgage. They can do things, they can set things in motion and have a plan. If they're planning four to five years from now, there's things that they can do in order to be successful to get a mortgage.
Nick Farina: That's absolutely right. I think that really, you get to an informed point that there are things you can do beginning when you're 18 years old, to set yourself up for a successful financial future and it really only takes five minutes or so to talk about them. There's nothing complicated and I think the thing now is you have a lot of financial gurus who are very helpful for older people, but there's so much that people hear from these people. They hear about the 401ks, hear about Roth IRAs and they sort of tune out because it's just too much to think about. But the fact that you don't need to know about the Roth IRA when you're 18 necessarily, but you need to know that you should set up a checking account and a savings account at your own name. You should get some sort of credit going on your name and you should pay your bills on time.
See previous part with Nick Farina - Part 3
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