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- Aug 17, 2020
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I am currently applying to medical school and have started to look at the financial side of medicine and need some advice on building credit.
Some Background info. :
My knowledge when it comes to personal finance:
My experience with managing money is very limited. I am currently an undergraduate and have had my parents pay for my school and living costs. It is a bit embarrassing but it is what it is. As a result of this lack of practical experience, I have started an online lecture series on basic personal finance and have been reading a book on finance specifically for doctors called the White Coat Investor.
My current situation when it comes to my credit and finances.
Due to my parents completely financing my expenses and schooling throughout my undergraduate studies, I don't have any student loans. But I have not built any credit by having a credit card or line of credit.
Why I think not having credit may be an issue:
From what I have read, Federal Loans for medical school do not check for credit scores but private ones do. This may be an issue for me because many of the schools I am applying to are private and have tuition rates that vary from the low 40ks. to mid 50ks. This is not including the cost of living. I will more than likely have to finance all of this cost on loans because my parents will not be able to help me past my undergraduate studies.
Ideas to build credit for general living expenses and loans ranked by desirability:
Top Options:
3 Become an authorized user - this option does not seem desirable because I do not want to have to rely on family members to make credit card payments on time
4 Get a Line of Credit at a Retailer- I have no idea how this option would work because I did not find it on the sites I looked through talking about building credit as a beginner. If anyone could explain how this works and whether it is a good idea I would really appreciate it.
In conclusion, I am looking for advice on how to build credit and maybe even general financial advice. I am a bit apprehensive in taking on these huge loans but I have read about the several options for paying these down and think if I live frugally after medical schools and aggressively pay down the loans medical school can be a viable option from a financial and personal fulfillment point of view.
Some Background info. :
My knowledge when it comes to personal finance:
My experience with managing money is very limited. I am currently an undergraduate and have had my parents pay for my school and living costs. It is a bit embarrassing but it is what it is. As a result of this lack of practical experience, I have started an online lecture series on basic personal finance and have been reading a book on finance specifically for doctors called the White Coat Investor.
My current situation when it comes to my credit and finances.
Due to my parents completely financing my expenses and schooling throughout my undergraduate studies, I don't have any student loans. But I have not built any credit by having a credit card or line of credit.
Why I think not having credit may be an issue:
From what I have read, Federal Loans for medical school do not check for credit scores but private ones do. This may be an issue for me because many of the schools I am applying to are private and have tuition rates that vary from the low 40ks. to mid 50ks. This is not including the cost of living. I will more than likely have to finance all of this cost on loans because my parents will not be able to help me past my undergraduate studies.
Ideas to build credit for general living expenses and loans ranked by desirability:
Top Options:
- Obtain a Secured Credit Card
- Pay utility bills and cell phone bills, and get these bills tied to my credit using The Experian Boost Line
3 Become an authorized user - this option does not seem desirable because I do not want to have to rely on family members to make credit card payments on time
4 Get a Line of Credit at a Retailer- I have no idea how this option would work because I did not find it on the sites I looked through talking about building credit as a beginner. If anyone could explain how this works and whether it is a good idea I would really appreciate it.
In conclusion, I am looking for advice on how to build credit and maybe even general financial advice. I am a bit apprehensive in taking on these huge loans but I have read about the several options for paying these down and think if I live frugally after medical schools and aggressively pay down the loans medical school can be a viable option from a financial and personal fulfillment point of view.