Building Credit for Students
Tips to help college students build their credit reports and continue their education.
Acquiring Your MBA Through Online University Education
Jul 17th
Today, an increasing number of universities and institutes offer online distance learning programs in a wide variety of fields. Aside from vocational courses, four-year degree courses, associate’s degrees and master’s degrees can also be acquired through an online education course.
If you’re planning to take up an MBA, have you thought about enrolling in an online MBA program? In this article, let’s talk about the advantages of pursuing an MBA and why a university online education is worth considering.
Why Get An MBA Degree
An MBA or Master of Business Administration degree can be acquired after one to two years of college education. Formal training and certification in business management is a major advantage when seeking for a job in large corporations and high-paying industries.
Graduate students who have finished a bachelor’s degree may choose to pursue an MBA degree right away. Nonetheless, since most companies hire applicants with at least two to three years of job experience, some graduates may choose to apply for a job first and build up their portfolio before pursuing returning to grad school.
Advantages of Online MBA Programs
If you are presently employed for a company and is thinking about getting back to school for your MBA diploma, there are some things that you need to seriously consider. First, will you quit your job so you can completely focus on your studies or will you enroll in part time MBA program so you can stay employed while earning a higher degree at the same time?
In case you decide to continue working while enrolled in a part time MBA course, an online distance learning program is definitely a viable option. First, it gives you the freedom to choose a convenient schedule that fits well with your work hours. Second, it gives you the flexibility to learn at your own pace. Since classes are conducted on a one-on-one basis, the progression of your lessons will largely depend on how much time you are willing to devote on your studies.
Is an MBA Worth It?
Of course, having an MBA diploma does not guarantee that you will instantly get your dream job. With the current state of economy, even those with MBAs are confronted with the challenge of getting hired by their chosen company.
Nonetheless, being knowledgeable, trained and certified in Business Administration will surely give you a stronger edge over competitors. If you’re having second thoughts whether or not to pursue an MBA, it is recommended that you seek advice from a career counselor or the guidance counselor from the university where you graduated.
(1 votes, average: 5.00 out of 5)Things to Consider Before Applying for a Student Credit Card
Jul 14th
Student credit cards are effective tools in paving the way for a bright financial future. A lot of consumers can attest to this statement. After all, by applying for and managing their very first credit card responsibly, many cardholders are able to build good credit reputation that enabled them to rent apartments, land excellent job opportunities, and even buy their own cars.
Unfortunately, when used irresponsibly, student credit cards can also pave the way for a financial disaster. There are a lot of reports and experiences of college students, who were not able to control their spending habits, who eventually fell into debt traps. Not only did they accumulate burdensome debts. They also inflicted long-term damage to their credit history.
This is the reason why students need to be very careful in choosing and in applying for their very first credit cards. This way they can ensure that whatever cards they intend to get will really suit their needs and will work to their advantage.
Now, what should college students consider when they shop for a good credit card program? We will find the answer to this query on the next portion of this article.
Top Considerations Before Getting Student Credit Cards
1. The interest rate. Before getting a credit card for students, you need to consider the rate that will be charged on your card. Ask yourself the following questions: Can I afford to pay the interest that will be charged on my credit card in case I cannot completely pay off my credit balance? Is the rate within the acceptable range of interest rates offered in the market? Is the rate of interest fixed or is it only part of a short-term teaser program? The answers for these queries will help you decide whether or not you would get the credit card program being offered to you.
2. The fees and charges. Be mindful of the fees and charges imposed on your credit card for students. Remember that you will need to pay these costs before and even while you are using your first credit card. So resolve to settle only for the card that asks for very few fees and charges. This way you won’t need to spend a great deal of your money just so you can get the card you desire to use.
3. Features offered in the student credit card. It is also advised that you look at the other features of your card. Inquire whether the card has a cash advance facility which you can use especially during emergency situations. Also, try asking whether you can earn rewards when you regularly use your card in making necessary purchases and in paying your monthly bills. You may also ask for insurance programs that may be offered to you as a cardholder. This way you can maximize the benefits you can get from your student credit card.
4. License/ Accreditation of the card issuer. One of the most important things you need to consider before finally applying for a credit card for students is the legitimacy of the card company. You need to perform a thorough investigation of the license to operate or federal accreditation that the card issuer holds on to as proof that the business is legitimate. You may also need to perform additional researches regarding the track record of the company in terms of having fully-satisfied clients. This way, you can have the guarantee of dealing only with credible card companies and getting only the best card programs.
(1 votes, average: 5.00 out of 5)Essential Loan Tips for Fresh Graduates
Jul 12th
Have you just graduated from college? Congratulations! You have finished a great achievement and now it’s time for you to prepare yourself for the opportunities and challenges that await you in the corporate world. But before you get too overwhelmed with other things, see to it that you do not forget your obligation to pay back your student loans for college.
Student Loans for College and Student Loan Debt Consolidation
The US Department of Education reveals that more than two-thirds of college students graduate with an average student loan debt of $19,200. Most students have obtained multiple student loans from different sources so repayment can become a very challenging task.
If you are managing multiple student loans from different lenders, you may consider student loan debt consolidation. By consolidating or combining your student loans into a single loan, you can reduce your monthly payments, enjoy a lower interest rate, and eliminate the confusion of juggling payments from one lender to another.
Nonetheless, those who decide to take student loan debt consolidation must be very careful in choosing a consolidation loan company. Take note that some predatory lenders do impose unreasonable conditions, high interest rates and hidden charges. Furthermore, consider the length of the repayment period. While a long repayment period may greatly reduce your monthly obligation, in the long run, you end up paying more because of the additional interest charges.
Before consolidating, find a realistic repayment term that you will be able to stay on for a long time. Spend time comparing different debt consolidation companies. Also, if you have acquired Federal Student Loans and Private Loans, it is recommended to keep these two loans separately, instead of consolidating all into one account. The reason is that some lenders may off consolidation of both federal and private loans, yet charge high rates with no repayment discounts. Also, Federal student loans already have low rates so they should not be merged with private student loans.
Submit Your Student Loan Payments On Time
Student loans must be paid on time from the start until the end of the loan term. Doing so enables the borrower to save a significant amount of money by not paying penalty fees. It also enables a fresh grad to maintain good credit history and credit score, which is very important to have now more than ever. Lastly, it allows the borrower to finish repayment at a sooner time, save money on interest rates and be free from student loan obligations.
It is a good idea to arrange automatic payment system with your bank to sure that you will not miss a single due date. Electronic payments can also save you about 42 cents on stamp each month and you may be able to enjoy a 0.25% off of your interest rate or more, depending on the lending company.
Try to pay more than the required monthly payment as much as possible. Even adding $10 to $20 on your monthly loan payment can make a difference in the long run. Make your goal to complete your student debt consolidation loan payments within three years or shorter, especially when found a job with a good pay.
(1 votes, average: 5.00 out of 5)Effective Financial Strategies for Students In College
Jun 22nd
Being a college student brings many privileges and opportunities for young people. But along with these privileges are responsibilities. If you are a student in college or in your freshman year, read on the rest of this article and check out these valuable financial strategies that you can start practicing right now:
On Money Management – Credit Cards for Students
Use your student credit card for schooling purposes. It’s a good thing to have a student credit card so you can build an early credit history for yourself. Nevertheless, uncontrolled use of credit cards can easily lead to bad credit. Thus, a student must be discreet and wise in using a business credit card for buying things or paying bills.
Keep track of your own spending. Managing a credit card for students can be a good training for young people with regards to handling debt. Most credit cards allow cardholders to access their account online so they can closely monitor their personal spending and payment due dates. If you find unfamiliar purchases in your account, call up your issuer immediately to clarify the details in bill before posting your payment.
Create a budget plan. As early as now, make it a habit to plan out your monthly spending. Having a written budget plan will not only help you control your spending, it will also enable you to distribute your allowance effectively.
Keep financial records in a safe place. Always review your monthly credit card bills and other receipts and keep these financial documents in a safe storage. These documents can be indispensable references that you can use in case you may need proofs when filing a complaint.
Protect your personal information. Many college students have been victimized by identity theft and fraud because they failed to protect their personal information. Get to know the tactics used by ID thieves. Be very cautious when providing personal information (Social Security number, credit card number, address, complete name, etc) especially when using Social Networking Communities over the internet such as Facebook, Twitter, My Space, etc.
Be frugal. Frugality is best practiced when you’re young. Find creative ways to save money such as purchasing second-hand text books, comparing prices before purchasing, buying clothes at thrift shops, etc. Do not use your first credit card to pay for something you did not plan to buy in the first place. Recognize the difference between NEEDS and WANTS and be smart enough to say no.
(1 votes, average: 5.00 out of 5)The Pros and Cons About Student Credit Cards
Jun 7th
Are you thinking about applying for a student credit card? Before you go and sign up that application, carefully weigh the pros and cons that can result from using a credit card. By doing so, you can be more aware about the steps that you can do to avoid getting yourself into trouble.
The Pros about Credit Cards for Students
Build early credit history. Applying for a credit card for students is the easiest way to build credit history. If you are a student, you have the privilege to get approved for an unsecured credit card without difficulty. Even with the new changes to the credit card law, it is still much easier for students to get their first credit card despite the absence of credit history.
Why is it important to build your personal credit history while in college? The sooner you start, the more impressive it will be to future creditors, insurers, and even to employers and landlords. The length of your credit history comprises 10% of your total FICO score so starting early can give you that significant advantage.
A good training to financial independence. Letting a young person handle a student credit card is an effective training on responsibility and debt management. Parents can play a big role in teaching their children about the proper use of credit cards. Indeed, teenagers need not get themselves stuck in bad credit to learn the consequences it can bring.
The Cons about Credit Card for Students
The risk of overspending. There is no denying that owning a credit card poses the risk of overspending. In fact, surveys show that a lot of teenage cardholders are guilty of such a bad habit. Splurges and unplanned purchases can quickly lead to a mountain of debt and bad credit. Therefore, students must learn how to exercise control over their credit cards.
Maximizing credit limit. Credit cards for students usually have lower borrowing limit compared to regular credit cards. While it is not necessarily a bad thing, some student credit card owners are prone to maximizing this limit. Such a habit can be damaging to your credit history. Why so?
One of the factors that determine your final credit score is your credit-to-debt ratio. Using up your available credit down to that last limit can pull down your score by as much as 10%. This is why financial consultants advice cardholders to keep their credit card use minimal- at least below 40% of their borrowing limit to protect their credit rating.
Increased amount of purchases. Students need to be aware that if they fail to pay their full balance on time, they will incur the additional interest rate cost in their bill. The interest rate can range anywhere from 14% to 20%, depending on the Issuer. While some student credit cards may offer 0% APR, that rate may only be applicable for 6 months or a bit longer. Afterwards, the regular interest rate will apply.
(1 votes, average: 5.00 out of 5)Establishing Credit History for the First Time
Jun 2nd
One of the most important aspects of being financially independent is establishing personal credit history. If you are a student in college, this is the perfect time for you to start thinking about establishing and building up your credit rating. Listed below are
Tips for first time credit builders on their first credit card:
Open a bank account. Although a savings or checking account will not be reflected in your credit report, it is a great way to get an easier approval from prospective lenders. If you have your own bank account, a lender would have more confidence in your ability to manage credit and debt repayment.
Apply for a student credit card. As a student, you have the privilege to get approved for an unsecured credit card without difficulty. Under the New Credit CARD Law, consumers who are under 21 years old must get a co-signer or must have independent income to get approved. If you are under 21, your parents are the best candidate to act as your co-signer, as long as they have good credit history.
Apply for a secured credit card. For students who do not have a co-signer, a secured credit card is a great option. Unlike a student credit card, you will be required to submit a cash deposit in your account which can range from $200 to $500, depending on the credit limit you want. Youngsters who are starting to build credit history are advised to start with a low limit ($200) to exercise control over their credit card spending.
Get a department store card. Another way to start building credit history is to get a credit card issued by your favorite department store. A lot of merchants offer store cards to their loyal customers and offers credit reporting to the credit bureaus.
Get a gas station card. If you drive your own car, perhaps you may consider getting a gas station credit card from your preferred gasoline company. Just make sure that the company does offer credit reporting to the three major credit bureaus.
Use your credit card regularly. Keeping your student credit cards or secured credit card in your wallet will not help you build credit history. You can only build credit by charging expenses to your card and submitting your payments on time. As a student, this is your chance to prove that you are ready for financial independence and the responsibilities that comes along with it.
Check your credit report regularly. Consumers are advised to check their credit reports at least once every six months to ensure that it contain accurate information. Keep in mind that you have the privilege to order one free copy of your report from the three credit bureaus each year by visiting Annualfreecreditreport.com. In case you find errors in your file, you also have the right to dispute or request for corrections by sending a letter to the bureau that issued your report.
(1 votes, average: 5.00 out of 5)Things Credit Card Holders Must Be Aware Of
May 30th
There’s a great deal of information that consumers need to know about credit. Being aware of the basics of credit card management as well as establishing credit history will help first-time cardholders in selecting and using their very first credit card.
And not only that. Being knowledgeable about credit cards will also help individuals avoid making costly mistakes as they apply for credit card programs. So what are the basic information that all prospective cardholders, especially students must be aware of?
Things You Need to Know About Student Credit Cards
- There are different types of credit cards. Even though credit cards have the same shapes and sizes, they do not carry the same terms and conditions. Before you obtain a certain type of credit card , know what options are available to you. You will be more likely to select the most suitable card for your needs and financial capabilities if you know exactly what is being offered by different card issuers.
- Credit cards possess different features. Credit cards carry different features like interest rates, credit limit and payment terms. These features must influence your decision whether or not you will take the credit card program being offered to you. After all some of these features can affect the cost you have to pay later on.
- Card charges are billed once a month. You should know that there is more to credit card billing than getting a mailed statement every month. So you need to understand the billing process of your chosen card issuer. This way you can comprehend what and how your credit card company charges you each month.
- Credit cards come with fees and charges. Credit card companies make money by charging fees and penalties on the credit card for bad credit programs they offer. Still, you can avoid paying large fees and charges, if you will make the right decision on which credit card to apply for and even on the way you pay your monthly bill.
- Choose credit cards with care. Take your time in shopping and comparing the features and terms of the cards you intend to apply for. This way you can choose the right card that will work to your advantage.
- Be diligent and persevering. Because your very first card will be the key in establishing your credit history, you need to be diligent in doing research.
- Pay your bills and charges on time and in full. These two activities will help you maintain excellent credit ratings which are important since they influence the credit and financial options that will be made available to you.
- Fight the urge to get more than two credit cards. Applying for way too many cards can cause a negative impact on your credit history. And it can also reduce your chances of getting approved for the credit cards you have been applying for. So resist the urge to get too many credit cards and be contented with the ones you already have.
(1 votes, average: 5.00 out of 5)Tips for Parents: Help Teens Manage Student Credit Cards
May 24th
A lot of teenagers find it difficult to control their credit card purchases. As soon as they get their very first credit card, they tend to use it as frequently as they can. Some teenagers swipe their cards to buy whatever they like – the latest albums, movie or concert tickets, and of course the trendiest clothes they can get their hands on. As they keep charging purchases on their cards, they will just start worrying about their obligations when their parents receive the financial statements of their credit card accounts.
But despite the scenario above, parents still need to train their children how they should manage their first credit cards. After all, the way they handle their finances and credit lines today will show how they will manage their finances as adults in the future.
But what should parents teach their teenage children regarding credit card management? What tips can they give their teenagers in handling student credit cards? We have listed some tips below.
Tips for Parents: Help Teens Manage Their First Credit Card
- Understand the concepts of interest rate and fees. Some teenagers only look at the cost of items. They do not really think about interest rates and fees imposed on credit cards for students. Thus, parents need to patiently explain to their young kids what these items mean. Show them how rates of interest and penalties can cause a small debt to balloon out. This way, they can understand why it is important to avoid incurring debts as much as they can.
- Determine a need over a want. Teens do not usually understand what is necessary and what is unnecessary. They just follow their desire to buy the products they like. But if they will continue doing this, for sure they will accumulate large credit card debts. So, parents need to address this issue. They have to point out what is really needed over what is just wanted. This can help their teenage kids determine which purchases they can charge on their credit cards for students.
- Responsibly handle credit card accounts. It is also important to teach teens to pay charges in full and on time. Parents should be responsible in explaining to their children the importance of paying debt charges on time. Instruct them how this affects their credit scores. This way parents can encourage their young kids to work on building and maintaining good credit history.
- Come up with a monthly budget. Teenagers also need to know the importance of budgeting. They should be responsible in identifying their daily and even monthly expenses as against their cash allowances. This way they will know where their money goes each day and each month. A personal budget will also help young kids to cut unnecessary expenses, especially when they go over their allocated allowances. This is a vital money-handling skill that your children can certainly use when they become adults.
Teach your teenagers these four tips in managing student credit cards and for sure you will help them become financially-stable and responsible individuals.
(1 votes, average: 5.00 out of 5)Key Points Concerning Student Credit Cards
May 20th
If you are a young person who owns a student credit card or are planning to apply for one, this article was written just for you. Check out the following
key points about students and their first credit card:
Credit card companies love students. For credit card companies, high school and college students are two important niches. By becoming their first credit card, students are more likely to stay with the same issuer even after their college years.
To attract young people, many issuers offer freebies (shirts, caps, CDs, mugs, gift certificates, etc.) as part of their marketing strategy. However, the New Credit CARD law prohibits credit card companies from distributing flyers or setting up application booths within 1,000 feet of school campuses. The new law aims to discourage young people from signing up for a credit card without doing research or reading the Terms & Conditions.
Understanding credit scores. Yes, a young person can establish his/her credit history by applying for a student credit card. Indeed, this is the only opportunity to get approved for an unsecured credit card without credit history.
However, teenagers need to understand how the FICO scoring system works. For example, the FICO score is calculated based on different categories and one is payment history (35%). In order to build a solid credit foundation, students must be able to consistently keep up with timely credit card payments.
Furthermore, not all issuers of student credit cards offer credit reporting service. To build your personal credit, make sure that your chosen student credit card will report your payments to the major credit bureaus (TransUnion, Equifax, Experian).
Interest rates, fees, terms and conditions. Before signing up your credit card application, check the interest rates, fees, as well as the policies of your chosen issuer. In comparing student credit cards, do not just focus your attention on the APR or the interest rate. Instead, pay attention to the smallest details to make sure that you will be making the right choice.
Since it will be your first credit card, it is recommended to ask for assistance from your parent or guardian or a friend who has good credit history. If there are terms in the Agreement that you do not understand, do your homework or ask for help.
(No Ratings Yet)Things to Consider When Applying for Your First Credit Card
May 18th
Students have the privilege to get approved for an unsecured credit card despite not having credit history. For this reason, financial advisors recommend applying for your credit card while you are a student. Today, let’s discuss some
tips on how to you can find the right credit cards for students:
Credit Card Features – Rates, Fees and Conditions
Check the terms and conditions before submitting your application. Understand how the interest rate is calculated. Keep in mind that credit cards with variable rates are subject to increase depending on the Prime Rate. How much is the penalty fee, the annual fee, balance transfer fees and other finance charges?
Once you submit your credit card application and gets approved, you are subject to abide by the Terms and Conditions of your chosen credit card company. Hence, it is very important to pay attention to the rules before taking action.
On Being A Student Credit Cardholder
While conducting your search, you may find that some credit cards for students offer introductory interest rates and exciting rewards. Young people can easily get attracted to credit card deals especially since it is their first time to apply.
However, before grabbing the offer, check the rates, fees and conditions when the introductory period ends. If you want to get a student credit card with rewards, make sure that you will be able to post your payments on time to avoid high interest rates or expensive penalty charges.
Are You Ready to Use Your First Credit Card?
Owning a credit card is a big responsibility. Yes, you have the responsibility to your credit card issuer to pay your debts in a timely manner. More importantly, a student credit card can be your tool in establishing your personal credit history so that by the time you graduate from college, you have already built a solid credit foundation for yourself.
When used correctly, credit cards for students can bring many benefits. However, when used carelessly, it can lead a person to uncontrolled debt and bad credit. Use your first credit card to prove that you are smart enough to manage your own finances without getting yourself in trouble. Be exercising self-discipline and motivation, you can surely enjoy the advantages of having a credit card.
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