Tips to help college students build their credit reports and continue their education.
Posts tagged credit cards for college students
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)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)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.
(No Ratings Yet)Best Tips to Avoid Student Credit Card Debt
Apr 28th
Every year, thousands of consumers struggle with credit card debt- many are student credit cardholders. If you are a teenager who owns a student credit card, what can you to avoid debt problems? Consider the following:
tips to avoid debt for student credit cards holder
Ask your parent to be your co-signer. According to the new Credit CARD Law, students who are below 21 years old must have a co-signer. Having a co-signer is ideal because a parent can assist a young person in evaluating credit card choices. Review the Terms and Conditions with your parents before deciding which student credit card fits your needs.
Start with a low limit. Because students do not have regular job, it is best to start with a low credit limit. A low borrowing limit is recommended so that a young credit cardholder can exercise more control with his/her monthly spending.
Check your bills. Do not be complacent that all charges in your bill are correct. As the owner of the account, it is your duty to check your monthly credit card statement to make sure that you are not being charged with purchases that you did not make. Keep in mind that consumers have the right to dispute inaccurate reporting.
Do not use your credit card on entertainment. Students love doing recreational activities and usually it also involves money. If you own are student credit card, make sure that you are not using your credit card on unimportant purchases. To avoid unplanned spending, do not bring your student credit cards when going out with your friends on Friday nights or if you just plan to hang out in the mall. Use cash instead of using your credit card.
Plan before you buy. Do not use your student credit card to buy items that was not in your plan to buy in the first plan. For instance, if you find a nice dress or a cool shirt on display while hanging out, do not use your credit card to buy it even if the item is on sale. Before going to the grocery, make a list of all the items you NEED to buy, not what you want to buy. Remember, if you did not put it in your list, then most likely it’s not a very important purchase. Never leave the house to shop without a list prepared to avoid impulsive buying.
(No Ratings Yet)Benefits of Acquiring Credit Cards For Students
Apr 23rd
Many people will agree that using credit cards is the most convenient way to buy things or make payments. However for students, using a credit card should be first and foremost, all about building good credit history.
What are the benefits of using student credit cards? If you are a college student, why should you be interested in owning your first credit card? If you are a parent, why should you encourage your kids to apply for one?
Building Credit History with Student Credit Cards
The best time to apply for an unsecured credit card is while you are still a student. If you are under 21 years old, ask your parent or a friend with good credit rating to co-sign for you since it is now a requirement under the New Credit Card Law. On the other hand, if you can present proof that you are making your own living, then you can get approved for a student first credit card even without a co-signer.
Using a student credit card is an essential step in building your personal credit history as preparation for the coming years. Why should you strive to build early credit history? When you graduate from college, you will, sooner or later need to obtain a loan – be it a car loan, a personal loan, or a mortgage loan. When that time comes, having an impressive credit history will surely work to your advantage.
Aside from the assurance that your loan application will get approved, lenders will be confident to give you better interest rates and more flexible repayment terms based upon your credit standing. On the contrary, if you do not have credit history, you may find it more difficult to get approved for the best loan deals in the market.
Aside from creditors, employers and landlords will also be interested in what your credit report reveals. If you have good credit, you can choose to rent any apartment you like without worrying about getting rejected. For job seekers, an impressive credit score can be one of your strongest points that will separate you from other applicants.
Good Financial Skills Start Early
Owning a credit card while in high school or in college can teach young people about responsibility and strategy while practicing financial independence. Parents play a big role in providing support and advice for young credit cardholders. How?
First, parents must assist their kids in making the right credit card choice. Students must also understand how their credit card use affects their personal credit history. When used correctly, having a student credit card is an easy way to build solid credit. Nevertheless, students must always keep in mind the possible consequences if they fail to exercise responsibility.
(No Ratings Yet)Tips on How to Use Student Credit Cards Wisely
Apr 19th
For young people who are starting to build their own credit history, credit cards for students can be the perfect tools for building credit. Nevertheless, achieving a good credit standing all boils down to how the student manages his/her credit card. If you are a student credit card holder, below are some tips written just for you:
Use only one credit card at a time. If you own more than one student credit cards, make sure you don’t use two or more cards within the same month. Incurring charges on more than one card can prove to be risky, especially since most students do not have their own source of income and try to pay off their charges using the money sent by their parents.
Be mature. This is your chance to show that you are a responsible adult. Thus, before using your first credit card for anything, ask yourself these questions:
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Do I really need to make this purchase now?
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Is it really important?
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Can I pay this in full on or before the due date?
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Will I need to ask money from my parents to pay for this?
Limit your credit usage. How much of your borrowing limit you use can make a big difference in your credit rating. Experts recommend not using more than 40% of your available credit. By keeping your purchases minimal and by paying your monthly balance in full, you can avoid the risk of debt build-up and maintain good credit rating.
Submit your payment right away. There’s no need to wait until your due date before you submit your payment. You should make your payments at the earliest time. If you have the cash in your hands, why not submit your payment the same day you made the purchase? This way, you can avoid additional charges such as the interest rate and late penalty fee.
Plan your spending. Never use your credit card for any purchase that you did not plan. If you want to use your credit card to buy your groceries, create a shopping list before going to the supermarket. Stick to the plan you created and fight the temptation to buy things that are not on your list. By doing so, you can avoid purchasing things that are not important or you do not really need.
Keep your credit card in a safe place. You need to be conscious about where you put your credit card whether you are in school, in your dormitory or outside. If you lost or misplaced your card, call up your bank or Issuer immediately to report it. When paying with a credit card, keep an eye on your card and make sure that it never leaves your sight.
(No Ratings Yet)Common Mistakes in Student Credit Card Form
Apr 15th
To apply for a student credit card, you must submit an application form to your chosen Issuer. If you are a student or if it will be your first time to get a credit card, be sure to fill out the application with care. Not doing so may cause the processing of your application to be delayed or even rejected. Below are some useful reminders that you must not forget:
Personal Details. This is the section where you must provide information about yourself such as your complete name, residential address, telephone number, date of birth, and Social Security Number.
Double check the spellings and the digits you fill in. Remember, even a single spelling mistake or a single missing digit can change your identity. The credit card issuer may try to inquire about your report and pull out someone else’s credit history instead of your own.
Financial Information. The changes to the New Credit Card law limit those who are under 21 years old from obtaining a credit card for students all by themselves. If you’re below 21, you can still get a student credit card if you have co-signer or if you can show proof of an independent income. You must declare your estimated annual income along with any accounts (checking, savings) you may have with a banking institution.
School Information. Basic details under this category would be your school, school address, enrolment status, etc. You can choose to receive your credit card billing statements from your residence or school.
Make sure that you have provided the correct address as encoding the wrong one could cause problems later since you will not be able to receive notices from your credit card issuer on time. And since credit card mails contain confidential information, it will also put you at risk of Identity Theft or credit fraud in case they fall in the wrong hands.
Agreement. The last section of your student credit card application would be the agreement. There will a check box which upon checking, confirms that you have read and you agree with the Terms and Conditions of your Issuer.
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