Tips to help college students build their credit reports and continue their education.
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Half a Dozen Money-Management Tips for College Students
Sep 1st
Are you looking for money-management tips that will help you manage your finances well as you are pursuing your degree? If you are, then you have surely stumbled upon the right article. This is because we will be discussing several pointers that you can use to responsibly manage your cash on hand. This way, you can avoid falling into debt traps as well as compromising your financial prospects.
Six Tips on Money-Management
1. Join a credit union. Track down a credit union in town or do some research on online banks that offer credit accounts to students like you.
2. Don’t get a student credit card unless you absolutely need one. A common mistake among college students is that they hastily apply for credit cards for students without understanding its effect on their finances. And since they are very much eager to use their very first credit cards, they keep on charging all their purchases – necessary and otherwise, on their cards. And soon enough they will incur a hefty student credit card debt that will prove very difficult to settle.
So finance experts suggest that college students sign up for a credit card for student only when it is absolutely necessary. This way they can minimize the risk of running up large credit balances and of retiring large financial obligations.
3. Avoid non-academic debt. Students cannot seem to resist the urge to buy the latest gadgets and items they see in the market. So, they use their first credit card to immediately get their hands on these new products, without thinking whether or not these items are really necessary.
This is why most experts recommend that students use their student credit cards only for academic purposes; that is for paying tuition and school fees, purchasing books and school supplies, and paying for their other school needs. Should they want to buy the latest gadgets, they need to save up until they can come up with sufficient amount of money to buy the item they want.
4. Pay bills on time. College students should always be reminded to pay their bills and credit card charges as soon as they arrive. This way, students need not worry about forgetting the bills they are supposed to pay. Aside from this, they can also avoid paying penalties and other additional charges.
5. Monitor your spending and make a personal budget. College students are encouraged to list down all their expenses as well as the allowances or income they receive. This way they can identify whether they need to cut on some of their spending to spend on more important purchases. They can successfully do this with the aid of a monthly budget.
6. Guard your important documents. It is also important that college students understand the importance of protecting themselves from credit fraud and identity theft. How can they do this? Well by simply not giving out their social security number or their bank or card information to just anyone. They also need to keep their important documents and credit-related papers in a well-concealed yet easily –accessible storage. In so doing they can prevent themselves from falling victims to the illegal use of their identities as well as of their credit information.
We hope that this short discussion provided you with much information on how you can manage your money wisely. This way, you will not encounter any financial problems or difficulties as you pursue your bachelor’s degree.
(1 votes, average: 5.00 out of 5)Five Financial Tips for College Graduates
Jul 19th
Fresh graduates begin their quest for financial independence as soon as they move out of their college or university campuses. After several years of study to earn their respective degrees, they plunge headfirst into the challenging corporate world, with the primary goal of achieving financial stability.
However, not everyone succeeds in their quests. Though some graduates are able to juggle their work responsibilities and finances carefully, a lot of fresh graduates who are now employees of different companies are having a hard time handling their money. They tend to make hasty financial decisions that can eventually hurt their credit prospects and cause them great financial problems. And so instead of attaining financial independence and stability, what they encounter are the direct opposites of their goals.
But are there ways to avoid encountering financial difficulties? Of course there are! Below we have listed five financial tips that college graduates can employ to avoid experiencing credit woes and other financial dilemma. This way, they can realize their dreams of becoming financially stable and independent.
Five Financial Tips for Fresh Graduates – Student Credit Cards
1. Consider your student loans and student credit card debts. First and foremost, fresh graduates must determine a way through which they can settle their student loan accounts and student credit card debts. This should be their top priority before making other financial decisions like purchasing cars or homes and even starting their businesses. Ex-students must devise a debt management plan that details how they intend to retire all their credit accounts.
This step may involve taking a debt consolidation loan program to finally pay off all their existing credit balances. Or fresh graduates can also look for debt negotiation assistance that can help reduce their outstanding credit accounts. By choosing a suitable debt-busting program, college graduates can be assured of gradually paying off the debts they have incurred from their credit card for students and from the educational loans they applied for, without compromising their monthly needs and expenses.
2. Think of better alternatives to your first credit card. Credit card for students surely made it possible for students to support their needs during their years of study. However, relying too much on their first credit cards can lead to more and bigger spending and financial liabilities. So, students must see to it that they use their student credit cards with great care.
Financial experts recommend that fresh graduates consider the use of debit card programs. This way, they can be more aware and more in control of their spending habits.
Using debit cards also have additional benefits. Debit cardholders do not pay interest rates and penalty fees. After all, they do not assume credit or loan from a credit card company. In fact they themselves are the ones providing balance onto their debit card accounts.
3. Find your first apartment. Even if it is really exciting to move into your own place, you still need to consider all the costs that will be involved in your transfer of residence. Think of the rent and utilities that you have to pay each month. Not only that. Consider how much money you need to shell out for your transportation expenses as you travel from your home to your place of work. These important aspects must be considered in your search for the most suitable apartment.
4. Compare the cost of a new and a used car. If you are planning to purchase a car, then it will be good to look at and compare the costs of a brand new and a used vehicle. Do not only look at the price tag of the cars you plan to purchase. You also need to calculate the depreciation expenses you will be incurring every year. By thinking about these costs, you can select a car that will be most suitable to your financial capabilities.
5. Save early, compound often. Finance experts also encourage fresh graduate to save early. They can set aside a certain amount from their monthly income, that will go to their personal savings account. In so doing, they can expect to receive a substantial amount as long as they keep their savings fund intact.
We encourage our fresh graduate readers to employ these five financial tips. And we guarantee that by doing so, they can surely attain the financial independence and stability they have been dreaming of.
(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.
(1 votes, average: 5.00 out of 5)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.
(1 votes, average: 5.00 out of 5)How Students May Ruin Their Personal Credit
May 13th
While nobody wants to have bad credit, you unconsciously inflict damage to your credit history without even realizing it. If you are a student or a first time credit card holder, below are some things you need to avoid so as not to ruin your personal credit:
- Submitting multiple applications to different companies. Did you know that sending out too many applications to loan companies and credit card issuers can badly hurt your credit? Students usually get a lot of offers from student loan firms and credit card companies so they are prone to committing this error.
Keep in mind that each time you try to apply for credit, an inquiry will be made into your credit report. These inquiries will be reflected in your report as well. Having too many inquiries in your report can instantly make you a “Risky” customer in the eyes of creditors and insurers.
- Carrying a balance in your account. Contrary to what others believe, leaving a balance in your credit card accounts will not improve your credit standing. In fact, paying only the minimum monthly due payment increases the risk of debt build-up.
To keep a good credit standing, make it a goal to pay your complete balance each month. Doing so minimizes your chances of accumulating debt in your account; saves you from additional credit card charges such as interest rate and late penalty fees; and frees up your credit limit.
- Maximizing your borrowing limit. Even if your credit card for students come with zero interest or a low rate, you should still keep your charges minimal (ideally, 40% or less). You should know that your credit-to-debt ratio is a standard factor used in calculating your FICO score. It makes up 10% of your final rating.
- Being late in making payments. Being late in submitting your payments even just for one day can have a dramatic effect in your credit standing. This principle applies not only to your student credit card but to the rest of your bills as well.
If you’re having trouble submitting your payments on time or remembering your due dates, you may consider setting up an automatic payment system with your bank. Remember, payment history makes up 35% of your credit.
- Not reviewing your bills. Carefully examining your monthly statements of account is an important step that must never be overlooked. If you find any error in your bill, you have the right to dispute those charges.
Be sure to read all notices that comes from your credit card Issuer. The new credit card law mandates Issuers to give at least 45 days of advance notice before making changes to their terms. If you do not bother to check your mail, you might be surprised to find out that your interest rate has already increased without your knowledge. By that time, it can be too late for you to complain.
(1 votes, average: 5.00 out of 5)How Teens Should Manage a Student Credit Card
May 7th
While parents can give all the advice they can give to help their teenagers stay away from bad debt, they cannot be there all the time to watch they’re every spending. Once classes start, many students will be left on their own with their first credit card.
Are you a student who owns a credit card? If yes, then consider it as a blessing that you can use for your studies. However, along with the convenience it provides are the responsibilities on your shoulders. If you’re going to use your student credit card as a responsible adult would, you can be sure that it will bring you great advantages later on. With correct management, you will be building an excellent credit foundation for yourself.
Consider the following credit card management tips that are not just meant for students but for adult credit cardholders as well:
Understand the terms of use. Before even signing up that credit card application, see to it that you are aware of the rates, fees and conditions associated with using your card. As first time cardholders, teenagers may not be familiar with finance terminologies. Parents must review the Agreement with their kids and explain to them the implications of the terms.
Review your monthly bills. Examine your monthly credit card statements to be sure that all the charges in your account are accurate. If you notice unfamiliar charges, call up your issuer to clarify the matter. It is not uncommon for cardholders to be charged with bills they never incur. Students must understand that all consumers have the right to dispute erroneous billing as stated in the Fair Debt Collection Practices Act.
Skip the interest rate. Credit cardholders can save a great deal by not paying the interest rate. How? If you pay off your monthly balance completely, then you should not have to pay the APR. If your card offers 0% APR, make sure that you are aware as to when the introductory rate will expire.
Keep your charges minimal. It does not really matter whether you card has low rate or a high rate. The surest way to avoid bad credit is to keep your charges minimal. This way, you can easily pay off your full balance each month and avoid additional finance charges such as interest rate, late fees, over-the-limit fees, etc.
Choose a credit card that suits you. Consider your personal needs and lifestyle. Don’t compare yourself with other people, as each of us has his/her own financial capabilities. Don’t be tempted to get a reward credit card just because your friends or classmates have one. If you cannot commit to paying your monthly balance in full at all times, then a non-reward card with a low interest rate is the most practical choice.
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