Three Reasons Why the Real World is Just Like Your College

In 2014, I entered the 10^th year of being a professional out of college and into the real world. Many things have changed since then. Today, we can check our emails from our phones and synchronise our contacts from our phone to social networks. In terms of grades, well they say it’s nice to escape from a grading system, but actually, it’s still here, except this time, the teachers are also competing against you.

1.    Financial Institutions Evaluate Your Grade

When you become employed, you have to do well at work. The HR will monitor every activity you do and your superiors your performance in handling your tasks with your skills. The banks will also observe your spending discipline and capability. From here, they will assess if they can trust you enough, based on grade, to take on higher credit limits.

2.     Interest Rates and Grade Level

The higher your interest rate, the lower your grade level. Grade levels are assessed by risk values. An unemployed person is equivalent to a freshman and is relatively unknown to the bank based on his financial conduct. Meanwhile, an employed person who had accomplished multiple financing on a home and a vehicle can have lower interest rates.

3.    Outstanding Students

Banks will always want their consumers to spend. However, spending on the average way you use your card will never merit you any higher credit limit or low interest loans from your bank. Outstanding borrowers have successfully juggled two or more high amount loans at the same time, which helps upgrade their credit score and earn the respect of their lenders.