Credit… the thing we all know about but can never figure out.

So many of us know the importance of building credit, but we are also faced with the challenge of getting started. Simply getting a credit card is way harder than it should be. I don’t know about you, but ever since the ripe age of 13, adults around me told me about how important good credit is. Does anyone else remember the freecreditreport.com commercials… because I do, and I am currently singing it in my head as I write this (click for the song I have stuck in my head). We all know what credit is and that we need it, but we don’t really know how hard it is to start the whole credit process- at least I didn’t. I have had so many frustrated friends come to me not knowing how to open a credit card or after being denied a credit card. So, I decided to talk about what I did to open my first credit card and how you can learn from my mistakes.

Step One: Research

I feel like every post I write has something to do with research; I love doing research. We have a wealth of knowledge right at our fingertips! Imagine trying to do this thirty years ago when the Internet wasn’t even a thing... (sorry adults who didn't have this advantage) I started to figure out which credit cards would be right for me and what it would take for me to get them. Remember, though, you probably have 0 credit, so don’t think you can go apply for an Amex and get approved. A website that really helped me was Nerd Wallet . They compare cards that are right for college students and have lots of reviews.  

Step Two: Why are you opening the card?

Once you begin your research, you need to ask yourself why you are wanting a credit card in the first place. If the answer is to go shopping or go on vacation, ABORT THE MISSION AND GET CREDIT CARDS OFF YOUR MIND! You always hear credit cards are bad or that no one should have one. I think that if you are going to be irresponsible then a credit card just is not for you. I originally opened up a credit card because I knew I needed to start building credit up when I did not have too many real adult expenses (rent, insurance, etc.). Everyone wants all the cool travel points and rewards but you have to start basic first.

Step Three: Application

This is something that hurt me and is keeping my score a little lower than it should be. The number of times you apply for different credit cards are recorded, and this affects your credit score. You have to make sure that you do your research before you apply. I spent countless hours researching and found two college-friendly credit cards to apply for: The Discover IT Student and the Citi Thank You Card for students. Want to know what is funny? I got DENIED by both “college friendly” cards! I was so offended because I have never had an overdraft on my checking account, and I have always been financially responsible. How am I supposed to build credit if no one will give me a chance?  Anyways, I decided to take an alternate approach and go through the bank I do my personal banking with.

Step Four: Application (again)

I decided to walk into my local bank where I had both my checking and savings account and have a face-to-face conversation with a bank teller. I was hoping that they would see that I was a responsible young adult that just wanted to open a credit card to build credit (I promise I am not going to buy multiple trips to Italy and charge it). Anyways, it took about 30 minutes and she was super nice and told me I was approved for the “college card” that had a low credit limit. I didn’t mind because I wasn’t planning on charging a lot on the card and honestly, I was just excited I got approved for something.  

Step Five: Approval

YAY! You have finally been approved for your first adult credit card. This is a very exciting moment because it means you are on a path to build great credit and spending habits which is crucial when we are young adults. Here are 4 quick tidbits to help increase your credit score:

1. I would open an account to track your credit history (I love Credit Karma) and also read up on how to maintain good credit. Do not be alarmed when you get your first credit report and your score is low... it’s something you have to work for.
2. Whatever your credit limit is, make sure you do not spend more than 30% of it to help increase your score.
3.  Use it once or twice a month... I recommend putting something that is charged monthly on it (aka your Spotify, Netflix, Fabletics accounts). That way your card is always active and you know the exact amount you need to pay off every month
4. PAY YOUR CARD OFF! You should never miss a payment. That is a big credit NO-NO. You do not want the interest on the amount and you also don’t want to get dinged for bad spending. I would recommend setting up auto pay from your checking account if you can. If you can’t do that, I recommend setting an alarm the day before its due to make sure you pay it off.

 Follow this advice and you should be on your way to opening your first credit card and earning great credit! If you have any questions regarding credit/credit cards leave me a comment and I will get back to you ASAP!

 Best,

Caroline

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Why Finance?

I decided that I would dive into the world of finance for my first post, considering that it is the main focus of my blog. Four years ago, I would not have thought that I would be a numbers girl who thrived in pantsuits, listened to financial podcasts, or was intrigued by the stock markets. I always thought I would be some type of lawyer or maybe even a doctor. I am really good at debating, but chemistry is NOT my thing. It wasn’t until I took a personality test during my junior year of high-school that a business degree was even an option. I sat down with my college counselor, and she went over my results. Dermatology was on there, but she really focused on the business results. She talked about how my personality traits, ESTJ, were prime business traits and to consider looking at that field. I began talking to my parents and trusted adults about the possibility of pursuing business, and I eventually came to the conclusion that I wanted that to be my career. That’s all I knew, though. I thought business was business and that was the end of it. I didn’t realize that there were so many opportunities in the business field and that you can literally take the degree in any direction you want it to go. At the end of my senior year, I declared myself a very vague “business” major. Here are some tips that helped me decide my path. 

Make an appointment with your career counselor:
I know that sounds cliché, but it’s true. Having that appointment made me realize that marketing was not the best path for me and that I needed to explore other options. My counselor saw that I had a niche for finance and convinced me to take an intro to finance class.


Take an introduction class first to get your feet wet:
I enrolled in the intro class with hopes of it being a nice GPA booster. Ironically, I got a B. Laugh at me all you want, especially if you have taken the class, but it led me to where I am now. I was reading about 401K plans and compounding interest on the first day of class, and I became hooked on finance.

Read up on your interest as much as you can:
I did this by striking a finance based conversation with as many people as I could... my dad, my classmates, the people I worked with, my neighbors, and really anyone that would talk finance with me. I also joined my school's finance society and attended as many guest speakers as I could. Doing this made me realize that there were so many options- corporate finance, commercial banking, investment banking, private equity, insurance- the list goes on and on.

Do your research and don’t be afraid to ask questions:
This was a key for me because I was so new to the concept of finance. I started listening in on the news and got a subscription to the Wall Street Journal. This slowly gave me exposure to topics I hadn’t heard before which led me to research and start asking questions. Whether I was googling them, asking fellow classmates, or pestering my dad and his friends, I was getting answers. You have to continue to educate yourself. The finance world doesn’t begin and end in the classroom. It’s changing every day.

Don’t be afraid to fail or have people question you:
This is the most important to me. There is nothing easy about finance, especially when you are forced to take Intermediate Accounting II (and accounting isn’t your forte). Anyone who had those classes with me knew that I struggled. They probably even questioned why I chose finance as a major. I didn’t care. I found my passion for finance and was still going to pursue it. I struggle in some accounting classes and have to work harder… so what? Nothing really comes easy in life so might as well develop the work ethic while you’re young!

I have honestly just started my finance career, and I am eager to see what all I am going to learn throughout these next years. I hope this helps!

Best,
Caroline

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Cost of Eating Out

Growing up I was lucky to have parents that always cooked. My family rarely ate fast food or went out to eat at restaurants because, most of the time, we could make something better at home. Sadly, when I went to college, I lost that privilege. My Sunday night steak and potatoes dinner turned into some type of dining hall (blah) food. I started to develop a love for eating out. I took interest in the artistry of how menus were put together, flavors were paired, and the cooking craft in general. Maybe that interest came from my parents’ love for cooking, or maybe it came from me working in an Italian restaurant. Naturally, I sampled all of that delicious food at one point or another (thanks Osteria Mattone). Anyways, eating out is now one of my favorite “hobbies,” and I appreciate a nice meal.

I moved to Columbia, South Carolina this summer, and I quickly realized that the amount I ate out would have to decrease. Who wants to eat every meal alone? And I am paying for everything on my own now… no thank you. I decided to do a cost analysis of how much I spent eating out. My little “hobby” cost me practically a new Louis Vuitton handbag- one that I have just so happened to have my eye on for a while. I averaged the amount of money I spent eating out (fast food, nice restaurants, and trendy smoothie places were all included). $75 a week. That may not sound too bad, especially because I make more than that with one day of work. However, if I was to spend $25 less a week on eating out, that would save me an average of $100 a month. That still may not seem like much to you, but multiply that by twelve months and you get $1,200 a year. Now let’s throw in that compounding interest that I love (yay!), and you save a whopping $1,200 a year. Invest that every year for 10 years at 7%, and you have just saved $19,820. All from eating a couple extra meals a week at home instead of out!

I know some of y’all are scoffing because you would never invest your own money.. That number may not matter to you, but we will address the fear of investing in another article. Keep that money in a savings account or a jar, even! Watch how it accumulates, and all of the sudden you are $1,200 richer than your friends. I also understand you have to eat. Lots of people think that it is cheaper to eat out than buy groceries, but I am going to squash that theory another day. I have to go make dinner and online shop with all the money I am saving… Oh wait, I meant to say invest it! 



Best,

Caroline

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Hey Y'all!

My name is Caroline Corley, and I am a rising junior at the University of Kentucky- Go Cats! I was born and raised in Atlanta, Georgia and enjoy city life and new experiences. I have a very bubbly and outgoing personality, and I can literally talk to a brick wall. When I was a little girl (jabbering away, of course), my teachers named me the "mouth of the south." The definition of that phrase is "a nickname for a person residing in the south that speaks very fast and frequently." If you know me... you know that describes me perfectly. 

I have a passion for finance and have always considered myself a working woman. From babysitting to odd jobs, serving to internships, I am always doing something. I decided to create this blog to talk about my experiences as a young professional as well as give advice to anyone who may share a common thread with me. It has already been a crazy and challenging road, and I know that I am not alone. I love to bounce ideas off of others and give advice, so I am very excited to take this next step and blog with y’all. Don’t be surprised if you see personal posts too! I love going out with friends, living a healthy lifestyle, and traveling, so I plan on adding a touch of those stories as well. 

Enjoy!

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