Embrace the New

The transition to college can be both exhilarating and overwhelming. Embrace the newness of your surroundings, from the campus layout to the diverse faces you’ll encounter. Be open to new experiences, clubs, and activities. Remember, everyone around you is also navigating this journey, so don’t hesitate to reach out and make connections.

Time Management is Key

With newfound freedom comes great responsibility, particularly in managing your time effectively. Create a schedule that balances classes, study sessions, extracurriculars, and downtime. Utilize tools like planners or apps to stay organized and prioritize tasks. Remember, procrastination is the enemy of productivity, so tackle assignments and projects promptly.

Get to Know Your Campus

Familiarize yourself with the campus layout, including academic buildings, libraries, dining halls, and recreational facilities. Knowing where everything is located will save you time and reduce stress, especially during hectic days. Don’t hesitate to explore off-campus too; discover local hangouts, coffee shops, and hidden gems in your college town.

Seek Support

College is a journey best traveled with support systems in place. Don’t hesitate to reach out to professors, academic advisors, or counselors if you need assistance. Many colleges offer resources such as tutoring services, writing centers, and mental health support. Remember, asking for help is a sign of strength, not weakness.

Stay Balanced

While academics are undoubtedly important, don’t forget to prioritize your well-being. Maintain a healthy balance between studying, socializing, and self-care. Get plenty of rest, eat nutritious meals, and engage in physical activity to keep both your body and mind in top shape. Remember, a healthy lifestyle is the foundation for academic success.

Become Financially Savvy

College is an investment in your future, so it’s crucial to be financially savvy from the start. Create a budget that accounts for tuition, textbooks, housing, and personal expenses. Explore scholarship opportunities, part-time jobs, and financial aid options to alleviate the burden of student loans. Consider opening a personal high-yield savings account with Nelnet Bank for convenient and secure banking services tailored to your needs. Or if you need help paying for college, you can learn more about Nelnet Bank’s Private Student Loans.

Stay Flexible

Flexibility is the name of the game in college life. Be prepared for unexpected challenges, changes in plans, and moments of uncertainty. Adaptability is a valuable skill that will serve you well both inside and outside the classroom. Remember, every setback is an opportunity for growth and learning.

Surviving freshman year is a thrilling and transformative experience, filled with opportunities for personal and academic growth. By embracing the new, managing your time effectively, seeking support, and prioritizing your well-being, you’ll lay the foundation for a successful college journey. With Nelnet Bank by your side, you can navigate the financial aspects of college life with confidence and ease. Here’s to an unforgettable freshman year and the exciting adventures that lie ahead!

Nelnet Bank does not provide legal, investment, tax, or financial advice. This page and the information contained herein is for informational purposes only. This content is not meant to address the circumstances of any particular individual. Nothing contained in this article constitutes a recommendation or endorsement by Nelnet Bank. For specific advice about your unique circumstances, consult with a qualified professional.

From time to time, articles may provide hyperlinks to web pages operated by third parties. When you click on these hyperlinks, you will be leaving Nelnet Bank’s website. Nelnet Bank has no control over such sites or their content, and is not responsible or liable for any such site or content. Nelnet Bank does not endorse or recommend the contents of the third-party sites. Your use of a third party website is subject to their terms of use and privacy policy.

The post Surviving Freshman Year of College appeared first on Nelnet Bank.

Embracing New Tech

The digitization of industries is revolutionizing the way we work, with automation, artificial intelligence, and digital technologies reshaping business processes and workflows. In the future of work, proficiency in digital literacy and fluency in technology will be essential skills. College students should familiarize themselves with emerging technologies to be prepared to adapt to new digital tools and platforms.

Soft Skills and Emotional Intelligence

While technical skills are important, employers are placing increasing emphasis on soft skills and emotional intelligence in the future of work. Skills such as communication, collaboration, problem-solving, and empathy are highly valued in today’s interconnected and diverse workplaces. College students should focus on developing these interpersonal skills through team projects, leadership roles, and extracurricular activities. Strong emotional intelligence will enable individuals to navigate complex social dynamics and build meaningful relationships in the workplace.

Entrepreneurial Mindset and Innovation

The future of work is characterized by rapid innovation and disruption, creating opportunities for entrepreneurial-mind­­­­ed individuals to drive change and create value. College students should cultivate an entrepreneurial mindset, embracing creativity, risk-taking, and problem-solving. Whether ­­­­­­launching a startup, pursuing intrapreneurship within a larger organization, or driving innovation in their field, entrepreneurial skills will be instrumental in shaping the future of work.

The future of work is characterized by unprecedented change and uncertainty, but it also presents exciting opportunities for growth, innovation, and personal development. By embracing digital transformation, adapting to remote work, honing soft skills, and adopting an entrepreneurial mindset, college students can position themselves for success in the dynamic and evolving job market of tomorrow. As you embark on your career journey, remember to stay curious, resilient, and adaptable, and embrace the opportunities that come your way. The future belongs to those who are willing to embrace change and seize new opportunities with enthusiasm and determination.

Nelnet Bank does not provide legal, investment, tax, or financial advice. This page and the information contained herein is for informational purposes only. This content is not meant to address the circumstances of any particular individual. Nothing contained in this article constitutes a recommendation or endorsement by Nelnet Bank. For specific advice about your unique circumstances, consult with a qualified professional.

From time to time, articles may provide hyperlinks to web pages operated by third parties. When you click on these hyperlinks, you will be leaving Nelnet Bank’s website. Nelnet Bank has no control over such sites or their content, and is not responsible or liable for any such site or content. Nelnet Bank does not endorse or recommend the contents of the third-party sites. Your use of a third party website is subject to their terms of use and privacy policy.

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Whether you’re a freshman or you’re getting a fresh start in a new year, college transitions come with a load of budget considerations:

• Where am I going to live?
• How will I get around?
• What will I eat?
• Where do I go if I get sick or hurt?
• What about all the other stuff I’ll need to pay for?

No matter your situation, let’s explore the money considerations college students face every year.

Housing Costs

Nothing impacts your bottom line like housing costs, which are usually your biggest expense throughout life – from college through retirement. Housing in college usually involves a long-term commitment with a lease or dorm, so think long term before you splurge on something you’ll regret a few months down the road. You also need to factor in utility bills and the cost of furniture and other necessities if you’re looking to go premium on your living arrangement. In other words, don’t make yourself “house poor” before the semester even starts.

Transportation

The SUVs and trucks on college campuses keep getting bigger – and so do the price tags, fuel costs, and insurance premiums. The best way to limit your transportation spending in college is choosing a cheaper mode of commute (bike/bus/compact car) over a big luxury ride. Also, the closer you live to campus, the lower your transportation costs will be, so consider transportation costs as you figure out housing.

Food

For college students, a habit of eating takeout can eat into your budget in a major way. Even worse, having food delivered can be uber expensive. If you’re on a college meal plan, make the most of it and eat at campus cafeterias whenever possible. If you’re not on a college meal plan, taking a few hours to research affordable, healthy foods that you can easily prepare at home could be the most valuable homework you do all year.

Health Care

Many college students are fortunate to avoid health care worries – but it’s good to have your bases covered just in case an unexpected illness or injury strikes. Many colleges offer health insurance plans, or you can remain on your parents’ plan if that’s a better option. But your first step should always be checking if your college has a clinic, and if they provide the care you need for free.

Personal Expenses

Personal expenses are a wild card for college students. You can go big or go practical on everything from everyday needs (like shampoos and clothes), to electronic wants (like that new phone or streaming service), to super “extra” things (like that tattoo you’ve been thinking about or that Spring Break vacation). Personal expenses are where many college students fall into the credit card trap. (Here’s how to avoid the credit card trap).

If scholarships, federal student loans, and savings or income don’t cover these expenses, private student loans can be used to cover more than tuition – including fees, living expenses, books, supplies, transportation, and more.

As a student, your early years of college are priceless because of all the valuable lessons you learn on campus. Few things can make as much of a lifelong impact as the personal finance habits you create. These tips were built to help you establish habits that will pay off for generations to come.

Nelnet Bank does not provide legal, investment, tax, or financial advice. This page and the information contained herein is for informational purposes only. This content is not meant to address the circumstances of any particular individual. Nothing contained in this article constitutes a recommendation or endorsement by Nelnet Bank. For specific advice about your unique circumstances, consult with a qualified professional.

From time to time, articles may provide hyperlinks to web pages operated by third parties. When you click on these hyperlinks, you will be leaving Nelnet Bank’s website. Nelnet Bank has no control over such sites or their content, and is not responsible or liable for any such site or content. Nelnet Bank does not endorse or recommend the contents of the third-party sites. Your use of a third party website is subject to their terms of use and privacy policy.

The post College Student Expenses: Living Away from Home appeared first on Nelnet Bank.

Health insurance.
Auto insurance.
Renter’s insurance.

With so many other things to consider and decisions to make, it’s easy for families to put the topic of insurance on the back-burner – but that can come at a big cost.

The tips below will give you the guidance to make sure you’re covered throughout every stage of college.

• Health Insurance: Health insurance coverage should be a top priority, as one bad illness or broken bone could break the bank if you aren’t ready for it. Thanks to the Affordable Care Act (ACA), many young adults can remain on their parents’ health insurance until the age of 26. Many schools offer school-sponsored health insurance plans that should be explored as a next option, before turning to an individual plan. (Plus, your school may have a health clinic with free or low-cost care for basic needs, so that’s a good starting point to lower health care costs.)
• Auto Insurance: If your college plans involve driving a car, auto insurance is a must. It not only protects your car and the car of anyone you potentially collide with, but also protects you against liability in the case of a larger accident. If this expense is stretching your budget, consider these cost-saving steps:
  • Drive Safe: Speeding tickets and fender benders drive up the cost of your premium.
  • Look for Discounts: Many insurers offer discounts for college students or students who maintain a good GPA (typically 3.0 or higher).
  • Consider Higher Deductibles: A deductible is the amount of money you pay out of pocket on a claim before the insurance company covers the rest. As a general rule, the higher your deductible, the lower your premium.
  • Review Your Options Annually: Price-shopping plans can save you money every year.
• Renter’s Insurance: Depending on where you go to school, some dorms may require renter’s insurance and others may not, so check with your chosen institution on what’s needed. If you move off campus, rental insurance is always a good idea for rental housing situations as it protects against loss or damage to property, as well as liability if someone is hurt on the property during your time of residence. Compared to other forms of insurance, renter’s insurance can be obtained for a low monthly premium.

We get it. Insurance can seem like a “I’ll handle that later” topic for college students and families. But the coming years will bring a lot of unpredictability – and that’s exactly what good insurance can protect against.

So, pay attention to the essential details of college-age insurance today, and you can rest assured – and insured – from now until your graduation day.

Nelnet Bank does not provide legal, investment, tax, or financial advice. This page and the information contained herein is for informational purposes only. This content is not meant to address the circumstances of any particular individual. Nothing contained in this article constitutes a recommendation or endorsement by Nelnet Bank. For specific advice about your unique circumstances, consult with a qualified professional.

From time to time, articles may provide hyperlinks to web pages operated by third parties. When you click on these hyperlinks, you will be leaving Nelnet Bank’s website. Nelnet Bank has no control over such sites or their content, and is not responsible or liable for any such site or content. Nelnet Bank does not endorse or recommend the contents of the third-party sites. Your use of a third party website is subject to their terms of use and privacy policy.

The post Insurance Essentials for College Students appeared first on Nelnet Bank.

Think of your student loan as a tiny seed that was planted for your education. It grows into a living loan that you’re responsible for keeping healthy throughout its life and through repayment. Our tips will help you learn how to nurture that seed so that you and your loans can enjoy a healthy and prosperous life.

The Facts of Life for Student Loans

When does life start for a student loan? How does your student loan develop, and when is it most crucial that you pay attention and nurture its development?

Formation

Once you have accepted the loan terms and signed your agreement, student loan formation begins with disbursement, which is when your student loan is paid out each semester. At this point, your student loan doesn’t just pay for your school. No – it’s the twinkle in your eye when you talk about what you’re going to do after college. Your student loan provides the promise for your future and feeds your dreams.

For most student loans, while you’re in school, the loan is still developing into a living loan that hasn’t yet emerged into your world. It may not seem fully real to you yet. However, if you don’t take precautions before your loan is born, it may develop complications you don’t know about while you’re in school – things like accruing interest. With early awareness, you can decide to make interest-only payments and avoid having the interest capitalize (added to your principal balance)! This can save you thousands of dollars in interest later. Even if you can’t make all the student loan payments, you can save some money by making occasional payments.

Can’t afford to make any payments on student loans while you’re in school? That’s fine. Then just take good care of your education by finishing your degree on time, and nurture your financial health by minimizing your credit card debt and the amount you borrow for your education.

Grace Period

There may be an additional grace period (usually of six months) after you leave school before you need to start making payments on your student loans. If you think your grace period is your last hurrah before all your budget, time, and energy go toward nurturing the growing new student loan you’ve introduced to the world, think again. Interest will continue to accrue during your grace period and may be capitalized if left unpaid. If you possibly can, avoid these complications by making interest-only or full payments.

Preparing for Repayment

You probably didn’t think your student loan experience signed you up for multiples. But when you get to graduation, you find that all those little seeds that paid for your education will come due at various times and will have different conditions, sleeping habits, and diet restrictions (no, not really). But you may have multiple student loans to repay, and before they come due, it’s time to prepare the nursery.

How do you prepare a nursery for student loans? Start with making a complete list of which loans are due when, what the monthly payments will be, who you’ll pay them to, and how to contact their loan servicers – as well the student loan interest rates. There are often repayment plan options for different types of student loans, so explore your options, figure out how much your payments will be, and sign up for payment plan options that will help you take care of all your loans. The goal is to prioritize and plan for repayment so that you can keep all of your student loans healthy.

When Student Loans Get Sick

An unhealthy student loan is one that becomes delinquent. It may start because you can’t keep track of your different loans. Or maybe you can’t afford to make all your payments. You miss one payment, and then another. It may go on your credit report. Eventually if you don’t make a payment), it defaults. Now it’s really affecting your life. With a defaulted student loan, you’ll mourn the loss of your positive credit standing for years to come. You’ll think ruefully of it when you apply for housing and are denied, when you don’t get the final call back for that dream job, or when you’re denied a loan to buy a car to replace the one that just died.

Don’t let problems with student loan repayment get to that point. There are often options for payment relief or to consolidate or refinance your student loans to make it easier to keep track of them, and to make payments more affordable. If you’re having problems keeping up with your payments, contact your servicer for options available.

Quick Tips for When You’re Expecting (Student Loan Repayment)

You’re a smart college graduate, but you haven’t had student loans before. We know it’s a lot to take care of, to have all these student loans coming due around the same time. That’s why we put together these tips for when you’re expecting student loan repayment.

1. Keep track while you’re in school (and definitely before your graduate!) of how much you’re borrowing, who your servicer is for each loan, what the interest rates are, which loans subsidized while you’re in school and grace, as well as who to contact if you have questions or concerns.
2. Keep your borrowing to a minimum. These are real living loans that will eventually need to be repaid – whether you finish your degree or not, whether you find a job in your field, whether you like your job. Don’t live in denial now.
3. Take care of complications early. If you identify interest accruing on un-subsidized loans (and at a high rate), take care of it with interest-only payments or occasional payments whenever you can make them during school and in your grace period. Every little bit helps. Avoid interest capitalization whenever possible. You’ll have more hungry mouths to feed later.
4. Choose payment options before repayment. Figure out how much payments will be and how you will make it all work so that you can take care of all of your loans when they’re due.

Nelnet Bank does not provide legal, investment, tax, or financial advice. This page and the information contained herein is for informational purposes only. This content is not meant to address the circumstances of any particular individual. Nothing contained in this article constitutes a recommendation or endorsement by Nelnet Bank. For specific advice about your unique circumstances, consult with a qualified professional.

From time to time, articles may provide hyperlinks to web pages operated by third parties. When you click on these hyperlinks, you will be leaving Nelnet Bank’s website. Nelnet Bank has no control over such sites or their content, and is not responsible or liable for any such site or content. Nelnet Bank does not endorse or recommend the contents of the third-party sites. Your use of a third party website is subject to their terms of use and privacy policy.

The post Nurturing Student Loan Seeds through Life (and Repayment) appeared first on Nelnet Bank.

But don’t decide to move in with your parents just yet. By establishing smart financial habits in your 20s and 30s, you’ll be well on your way to enjoying a more comfortable lifestyle both today and in the future.

1. Finding a Job

The first step toward financial independence for anyone is finding a source of income. Your salary will determine what you can afford in all other aspects of your life, including where you can live and what kind of lifestyle you can support.

• Be a creative job seeker, and don’t limit yourself to traditional job-search methods. Expand your network, be active on LinkedIn and professional in your use of other social media, and attend industry events.
• Recognize that you may not get your dream job right out of college. You may have to pay your dues with one or more entry-level positions before getting to the position you’ve always imagined for yourself. And that’s OK – as long as you’re building a resume that supports your chosen career path, you’re on the right track.
• It’s important to know your worth and position yourself as a competitive job seeker in your industry. What are your peers making? What’s the average salary in your industry and region? Do your research to educate yourself so that you can intelligently campaign for fair compensation when it comes time to negotiate your salary.

Answers to career-related questions impact your financial future and your budget. Make sure your financial plans evolve to include planning for career development – because your salary and livelihood is a major driver of your financial well-being. For example:

• As you gain experience, you’ll define your career goals to become more specific and learn about new career opportunities. Will you need certification, additional training, or education?
• Will finding your next position require relocating to a different job market, or can you stay where you are and move up?

2. Making a Budget

Once you have a steady source of income, you can create a budget to make sure you don’t overspend. Consider using a free budget worksheet on sites such as Quicken or Mint to make the process quick and easy on your journey to financial independence.

• Calculate how much you spend on set monthly expenses, including rent, car payments, insurance, student loan payments, and utilities.
• Look through your recent bank statements to estimate how much you spend on other expenses such as groceries, transportation, clothing, dining out, etc.
• Subtract your monthly expenses from your monthly net income to determine your monthly spendable income. This is how much money you have to spend on extras each month. Don’t go over this number unless you want to start dealing with the cycle of debt.
• Are you spending more than you make? Then it’s time to rethink your expenses. Where can you cut back? Should you take on a roommate? A second job? Be realistic about your finances and do what you can to avoid relying on credit cards to pay your bills.

With time, the definition of your household may change. You may find you have added income, but you could also have additional expenses and other considerations. Every time you experience a significant change in your household, your job, your location, and your living situation is a time to re-evaluate your budget and financial goals.

3. Choosing Where to Live

Housing costs are generally among the most costly monthly expenses. Each of the decisions below will significantly impact your bottom line.

• Are you willing to relocate for work? While some people are set on living in one particular city, others are more open-minded when it comes to their job search. And, as you work longer and decide what you want to do, the best opportunities may be elsewhere. You’ll need to decide whether to open up your search to other cities to increase your options both in terms of pay and position.
• How much does it cost to live in the city of your choice — and can you afford it? Some cities are notoriously expensive for renters, and it may be difficult to pay the high costs of rent on an entry-level salary. Do a little research and use comparison calculators to weigh the benefits and costs of living in various places.
• Will you live alone or with roommates? Obviously, flying solo can come at a high price, but living with roommates has its own set of challenges.
• Do you want to rent or buy? Buying can be a wise investment, but not all young adults are qualified to purchase a home. If it’s something you’d like to do in the near future, start by building your credit and familiarizing yourself with the real estate landscape in your area.
• As you live on your own (or with roommates or a significant other), you’ll learn more about what sort of environment leads to a better quality of life for you. As life events unfold, you may find that a significant other’s job prospects and career opportunities may begin to factor into your location of residence. Other life changes (divorce, changes to a family member’s health, etc.) can also impact who lives with you and where you decide to live – and this will impact your bottom line.

4. Managing Student Loan Debt

The average student graduates with more than $29,000 in student loan debt. While you may be able to defer your payments while in school or residency, eventually you will have to start tackling those payments. After housing, this is often one of a graduate’s most significant monthly expenses.

• Your post-graduate student loan bill shouldn’t be a surprise. Know how much you’ll owe – and have an idea of how you’ll pay for it – before you even start college.
• Learn more about the federal loan repayment plans for which you are eligible and what your private loan payments and interest rates are at this time. Check your private loan statements or your lender’s website for this information.
• Explore student loan refinancing. For most people, student loan repayment stays around for a while – but it doesn’t have to keep the same form. Once you’ve been out working and living in the “real world” for a while, your situation may change, and refinancing your student loans can help you take advantage of some positive changes to your situation. If you’re making the smart financial decisions we at Nelnet Bank know you can, your credit worthiness, credit score, and income have all been taking an upward turn. Consider whether refinancing your federal and private student loans can make your interest rate and monthly payments lower. With Nelnet Bank, there are no application or origination fees and you could end up saving yourself thousands of dollars over the life of your loan – or ridding yourself of student loan debt sooner than expected.

5. Planning for the Future

While at times it may be difficult to imagine life beyond your next paycheck, it’s critical to think about your future financial independence.

• Family planning – Do you have plans to get married, start or expand your family? It’s a good idea to start saving for those milestones early on. If you haven’t found the right person, but you know it’s a priority for you to buy a home, find a partner, or start a family, there’s no reason to wait to prepare financially. Why not make it easier on yourself later by planning now for the future you know you want?
• Retirement savings – Speaking of planning now for the future you want: for millennials, the age of 65 may seem like it’s a long way off but it’s getting closer every day. Starting as soon as you have the option to save toward your retirement has a huge positive impact on your ability to save enough for retirement. But what do you do each time you get a raise or bonus? Do you increase your contribution toward retirement and diversify the types of accounts you invest in – or do you find new ways to spend the additional money? You can guess what we recommend.
• Insurance – You’ve enjoyed the benefits of your parents’ insurance policy for most of your life, but being an adult means buying your own health, car, and home or renters insurance. When you first start out, you won’t own as much of value to insure, but as you continue to work, you’ll acquire a nicer car, a bigger home, better furnishings, and simply more stuff. Plus, the larger income you’re making will be harder to replace should something happen that prevents you working to pay your bills. Insurance is something that you’ll need to continue to evaluate as your assets, income, and dependents change.

Complete financial independence after college may seem intimidating at first, but it’s also exciting. Embrace the challenges, but reach out for help when you need it. As you may have noticed, financial literacy is an ever-changing learning process because life is full of constant change. It’s always good to reevaluate your goals, your situation, and your budget on a regular basis to make sure you’re on the right track.

Nelnet Bank does not provide legal, investment, tax, or financial advice. This page and the information contained herein is for informational purposes only. This content is not meant to address the circumstances of any particular individual. Nothing contained in this article constitutes a recommendation or endorsement by Nelnet Bank. For specific advice about your unique circumstances, consult with a qualified professional.

From time to time, articles may provide hyperlinks to web pages operated by third parties. When you click on these hyperlinks, you will be leaving Nelnet Bank’s website. Nelnet Bank has no control over such sites or their content, and is not responsible or liable for any such site or content. Nelnet Bank does not endorse or recommend the contents of the third-party sites. Your use of a third party website is subject to their terms of use and privacy policy.

The post Financial Literacy for Millennials: Tips for Making Smart Financial Decisions in Your 20s and 30s appeared first on Nelnet Bank.

Student Loan Debt

While I am no longer handling student loan debt, there was a time when I did. While studying for my bachelor’s degree, I borrowed money to help pay for tuition, fees, and housing expenses. Fortunately, I was able to work part-time in school, and full-time during the summers. When I graduated, I had what I considered a modest level of debt.

The Realization of Repayment

After graduating, I remember receiving my student loan statement and payment slips in the mail. It had been several months since graduation. I hadn’t thought much about handling my student loan debt. Because I deferred my principal and interest payments while in school, I didn’t know exactly how much I owed. I didn’t even know when my payments were due. I can still remember looking at my loan statement and seeing how much I owed and the monthly amount due. Then, I counted the number of payment slips. I realized it was going to be quite some time before I could pay my loans off in full.

Reality set in. Having taken some finance classes while in school, I knew the high interest rates on my loans would cause interest to accrue rapidly on the remaining principal balance. The longer it took me to pay off my loans, the more it would cost. So, I sat down and developed a plan. I set up a monthly budget to manage my finances and pay off my student loans as soon as possible. This was the start of getting my financial house in order.

Discovering Repayment Options

Since that time, student loans, both federal and private, have greatly evolved. There are now many more repayment options available to students and parents to help them handle student loan debt. These include various income-driven repayment plans, federal loan consolidation, and private student loan refinancing. Each of these options has distinctive features and eligibility requirements, so it makes sense to compare them to one another to see if any meet your needs. You can learn more about federal student loan repayment plan options by visiting the Department of Education’s Federal Student Aid website.

Making a Repayment Plan

Creating a solid financial plan and sticking to it is an important part of any person’s financial well-being. If you haven’t already done so, I highly encourage you to review your financial situation, create a plan, and set a monthly budget.

Once you’ve created your plan, be sure to review it at least once per year, as your goals and/or financial situation may change. This way you can make any needed adjustments to ensure you stay on track. By keeping your financial house in order you can increase the likelihood of achieving financial success.

Nelnet Bank does not provide legal, investment, tax, or financial advice. This page and the information contained herein is for informational purposes only. This content is not meant to address the circumstances of any particular individual. Nothing contained in this article constitutes a recommendation or endorsement by Nelnet Bank. For specific advice about your unique circumstances, consult with a qualified professional.

From time to time, articles may provide hyperlinks to web pages operated by third parties. When you click on these hyperlinks, you will be leaving Nelnet Bank’s website. Nelnet Bank has no control over such sites or their content, and is not responsible or liable for any such site or content. Nelnet Bank does not endorse or recommend the contents of the third-party sites. Your use of a third party website is subject to their terms of use and privacy policy.

The post Get Your Financial House in Order appeared first on Nelnet Bank.

Soft Credit Check

When potential creditors request your credit report, they may use a soft check or inquiry. This type of inquiry provides a basic check of your credit score. A soft credit check will generally not have a negative impact on your credit score.

For an example of a soft inquiry, say you received a pre-qualified offer for student loan refinancing in the mail from a company like Nelnet Bank. Before you received those offers, the lender likely pre-screened your credit with a soft check. Nelnet Bank uses soft credit checks to see if you meet the minimum criteria for refinancing and find out what rates you qualify for.

Soft checks are also done by employers, insurance companies, landlords, and utility companies. They do soft checks on your credit report to understand how responsible you are with your finances. These organizations use your credit score and history to determine the likelihood that you’ll pay on time. This type of information can sometimes factor into whether you’ll have to pay a deposit for utility services.

Hard Credit Check

A hard credit check or inquiry is different than a soft check as it may have an impact on your credit score.

A hard credit check is usually triggered by your active request (i.e., application) for a loan or extension of credit. When you apply for a student loan or another type of loan, the creditor checks your credit report to evaluate your eligibility. With a hard credit inquiry, the lender looks at your credit report in much more depth to determine your creditworthiness before granting or denying you that loan.

Hard credit checks are often done by mortgage lenders, auto lenders, student loan companies, and credit card companies. These types of credit checks may have an impact on your credit score because they show you are actively seeking new credit. While a hard check usually has a limited impact on your credit score, its impact depends on your individual circumstances and the credit scoring model used by the consumer reporting agency.

If you’re considering refinancing your student loans, Nelnet Bank can identify the best rate you qualify for using a soft credit check and we’ll only trigger a hard check when you’re ready to accept the loan.

Credit Score Tip: When you’re looking for a loan pre-qualification or a rate quote, make sure to read the fine print to find out what type of initial check the lender will make on your credit report. Just remember that once you formally apply for the loan, the creditor needs to make a hard credit inquiry and review your credit score and history in much greater detail.

Nelnet Bank does not provide legal, investment, tax, or financial advice. This page and the information contained herein is for informational purposes only. This content is not meant to address the circumstances of any particular individual. Nothing contained in this article constitutes a recommendation or endorsement by Nelnet Bank. For specific advice about your unique circumstances, consult with a qualified professional.

From time to time, articles may provide hyperlinks to web pages operated by third parties. When you click on these hyperlinks, you will be leaving Nelnet Bank’s website. Nelnet Bank has no control over such sites or their content, and is not responsible or liable for any such site or content. Nelnet Bank does not endorse or recommend the contents of the third-party sites. Your use of a third party website is subject to their terms of use and privacy policy.

The post Your Credit Report: Hard Inquiry vs. Soft Inquiry – What’s the Difference? appeared first on Nelnet Bank.

After submitting my loan application, to my surprise, I wasn’t offered the lowest rate. “But why?” I asked the mortgage loan officer. I had never missed a payment on any of my loans or credit cards. Isn’t that what they should be concerned about? They told me my credit score wasn’t high enough to warrant their lowest rate.

After some research, I discovered the quality of the applicant’s credit score is one of the most important factors lenders consider when deciding whether to extend credit. It’s also taken into account when deciding what terms and rates are offered. And, that a person’s credit report determines the person’s credit score.

What is a credit score?

A credit score is a numerical representation of your credit risk. That essentially means how likely you are to pay back the loan. Credit scores range from 300 to 850, and are used by lenders to easily and objectively evaluate your credit risk. Higher scores usually mean less credit risk. Most lenders require a minimum credit score before they offer you a loan. They also create credit score tiers used to determine what interest rate they offer. That’s why you should have as high a credit score as possible before applying for any loan, regardless of type.

What can you do to raise your credit score?

The first thing to know is it takes time to improve your credit score. While you can ruin your credit score very quickly, it can take several years of good behavior to increase it. This is especially true if you have had a credit mishap like a missed payment. Below are six suggestions to help you improve (or maintain) your credit score.

1. Review your credit report annually. At least once per year, check your credit report for accuracy, and ensure that nothing is on it that shouldn’t be. Reviewing your credit report can also help you protect yourself from identify theft , which could ruin your good credit. If you have any questions about your credit report, or wish to dispute an error, immediately contact the credit reporting agency that issued the report. Tip: You can get one free credit report per year from each of the three major credit reporting agencies simply by visiting www.AnnualCreditReport.com and requesting your free credit report. Unfortunately, you won’t find your credit score on your credit report. Some credit card providers have partnerships with one of the three large credit bureaus to provide free credit scores to their customers. Check to see if your credit card provider has such an arrangement.
2. Pay your bills on time. This may seem like a no-brainer, but it’s important to make your payments on time, as any late or missed payments are likely reported to the credit bureaus. If you’ve missed a payment, get your account current and stay current. The longer you go without missing a payment, the more your credit score may increase.
3. Pay down your credit card balances. When your credit cards have high balances, it gives you a high debt-to-credit ratio (also known as utilization rate) and can signal credit providers and lenders that you are facing financial difficulty. Tip: Don’t move your balance from one credit card to another as this won’t help.
4. Only apply for a new loan or credit card when you truly need one. When you apply for a new credit card, you add a “hard inquiry” to your credit report, which causes your credit score to drop slightly in the short term. You may also be adding more new debt than you can afford to repay, both of which could negatively impact your credit.
5. Enroll in automatic payments. Enroll in automatic payments through your credit card and loan providers to have payments automatically debited from your bank account. Most student loan providers offer an interest rate discount for automatic payments, so there is that added benefit as well. Tip: When setting up automatic payments on credit cards, if you choose to make only the minimum required payment, you could be rolling over large balances each month and get hit with high interest charges.

How Does It All Help?

Having a clean credit report and a high credit score might help you in many ways, including lowering the cost of borrowing, obtaining insurance, setting up housing utilities, getting a job offer, and more. If you are having trouble making your payments, be sure to speak with your credit card provider or lender before you miss a payment. It’s in their best interest to work with you to find a mutually agreeable solution, so you may be able to work out an arrangement that meets your needs.

Nelnet Bank does not provide legal, investment, tax, or financial advice. This page and the information contained herein is for informational purposes only. This content is not meant to address the circumstances of any particular individual. Nothing contained in this article constitutes a recommendation or endorsement by Nelnet Bank. For specific advice about your unique circumstances, consult with a qualified professional.

From time to time, articles may provide hyperlinks to web pages operated by third parties. When you click on these hyperlinks, you will be leaving Nelnet Bank’s website. Nelnet Bank has no control over such sites or their content, and is not responsible or liable for any such site or content. Nelnet Bank does not endorse or recommend the contents of the third-party sites. Your use of a third party website is subject to their terms of use and privacy policy.

The post What You Can Do to Improve Your Credit Score appeared first on Nelnet Bank.