Nate Buchanan a graduate of the University of Tennessee and the founder of a new startup called “Credit Virgin” is looking to help as many young people, and college students make their credit lives easier. The Knoxville news reports that when Buchanan and a friend went to rent an apartment, the friend couldn’t get approved for the apartment because he had no credit history. It didn’t matter that the friend worked fll time and both perspective tenants made more than enough to afford the apartment. Because Buchanan’s friend hadn’t established any credit they were turned away.
Of course Buchanan knows that as young adults between 18-24 credit can be a double edged sword. Although it’s not as prevalent as it was in the late 90’s and early part of the 2000’s, there are still plenty of credit card companies and other finance companies that prey on college students who are already racking up enormous amounts of debt with student loans.
According to the UT Federal Credit Union, the average college student graduates with $8,000 in credit debt,outside student loans.
Through Credit Virgin, Buchanan hopes to first educate college students and young adults on the pro’s and cons of credit and how to establish credit via videos delivered on the startups website. He hopes to also integrate the site with a credit card evaluation tool which will compare terms and conditions as well as interest rates and other need to know information about credit cards typically offered to college students.
Buchanan hopes to also offer a credit monitoring service for students and their parents so they can monitor their credit together.
Credit, when used responsibly, can be a tool for young adults starting to establish themselves.
“Younger people don’t realize the implications of that until they go to buy a car and they have to get a loan, or they try and buy a house and don’t have a down payment,” Melinda Wood, Vice President of Marketing at the UT Federal Credit Union said to the Knoxville News.
Source: Knoxville News
Find out more about CreditVirgin here