Most medical doctors had a grueling 4 years of undergraduate studies to get the best grades and grade point average to get admitted to medical school and once in medical school, had sleepless nights and weekends to keep up with their studies to make the grade and meet the rigorous demand of medical school and graduate with a doctor of medicine degree and have the title of medical doctor. Now after graduation, the real life starts and part of the real world is having credit. Besides the tens of thousands of medical school student loans, many new graduates of medical schools do not have established credit and may have a hard time establishing credit due to lack of diversified credit and no payment history since they have not begun to make payment on their medical school student loans yet. Establishing credit is a must and the sooner you do it after graduation, the better it will be for you in obtaining future credit and save you thousands of dollars in lower interest rates.
Many recent medical school graduates think that cash is king and want to avoid credit at all expense if possible to the tens of thousands of dollars they owe in medical school student loans. That is the wrong mentality and approach to take. If you are a brand new doctor with a good paying job in your medical specialty, the first thing you need to do as part of your financial planning is to start establishing credit. People are aplaying for FHA, VA loans or other like homepath loans. There are many credit card companies that will issue credit cards to recent medical school graduates such as the Doctors Funding Group. Doctors Funding Group is a specialty lender for doctors, dentist, chiropractors, veterinarians, and other members of the healthcare industry and one of the programs they have is credit card and personal loan services for healthcare professionals. Other ways of establishing credit for new doctors is by getting three to five secured credit cards with at least a $500 credit limit.
Secured credit cards are the best tools in establishing credit and re-establishing credit after periods of bad credit. Secured credit card companies will require you to make a deposit with them and they will issue credit equivalent to your deposit. The secured credit card companies will charge interest on the outstanding balance and will charge you an annual membership fee. The ideal with secured credit cards is that they report you to all three credit reporting agencies and with your timely payments, you will start establishing credit and a good payment history on all three credit reporting agencies. The three credit reporting agencies, Transunion, Experian, and Equifax will have a history of your credit, your payment history, and will issue you a credit score. Credit scores will vary month to month but the longer you have a credit history, the stronger your credit profile will be.
Credit tradelines are having credit history for at least 12 months. If you are applying for credit such as for a home loan, your mortgage lender may require anywhere between three to five credit tradelines. Remember that by just opening a credit account does not automatically establish credit tradeline for you. You need to have a good payment history for at least 12 months to be considered a credit tradeline. If you are a recent medical school graduate with no credit and intend on buying a home in the near future, it is best recommended that you start establishing credit and secured credit cards will be a great way for you to start establishing credit.