One student who wants to be anonymous said she uses her credit cards for convenience. She also uses her credit cards to pay her tuition until she receives a financial aid check. This student has the right idea when it comes to managing her credit. Credit becomes a problem with it is used to purchase items that can actually be purchased outright, such as a shirt or blouse. A problem arises when your money is paying off previous items.
Most lenders look at the most recent information on a report.
So, if you've paid your accounts on time for the last two to three years, the lender may ignore a series of late payments from five years ago. Your credit history is just one factor creditors use when considering an applicant for a loan. A person's length of employment, gross and net income, total liabilities and assets are other factors creditors use to make their decisions. Ka Leo welcomes your questions and comments. Search Ka Leo O Hawai'i is the daily campus newspaper of the University of Hawai'i at Manoa .