Tips to help college students build their credit reports and continue their education.
Posts tagged students credit cards
How can I Stay Out of Credit Card Debt?
Aug 24th
A lot of people believe that teenagers should not be allowed to use student credit cards. They contend that young people are very irresponsible and reckless when it comes to handling their finances. These people think that students will only fall into a great deal of financial trouble should they be allowed to use and hold on to their very first credit card. But is this belief correct?
Well, even though students may have the tendency to be careless when it comes to money matters, this does not justify the point that they should not be given their very first credit cards. As long as they are given guidelines and sufficient information on how they should manage their student credit cards, they can also succeed in staying out of credit card debt. But how can they do this? Well, they can do so by employing the tips and pointers that we have listed below.
Tips on Staying Out of Student Credit Card Debt
1. Shop and compare different credit card programs. Once you enter college, for sure you will receive several offers from different issuers of credit card for students. Will it be wise to get the very first student credit card offered to you? Of course not! You need to take your time in shopping and comparing the terms and features of different credit card programs. Consider the rates of interest, payment terms, fees and charges and of course the application requirements. In so doing, you can select a credit card for students that will perfectly suit your needs and your financial capabilities.
2. Budget your expenses. Making a budget is an important life lesson that each individual must learn. The sooner this lesson is imbibed, the more financial rewards the individual will surely receive. But how can you devise your own budget?
Well, it is relatively easy. You need to jot down all the expenses you have incurred in a month. Then deduct your total spending from your total allowance or from the proceeds of your student loan. Consider each value listed on your budget. And ask yourself: is this expense really necessary? If the answer is yes, then retain it on your list. If the answer is no, then erase it from your list. This way you can cut down on unnecessary and wasteful expenses and you can allocate your money only on your basic needs.
3. Stick to a personal budget. Devising a personal budget is easy. However sticking to your budget is very difficult. Still you need to resolve to stick only to what is listed on your personal budget plan. This way, you can avoid incurring debts that will prove very difficult to pay off later on.
4. Pay on time. If you have existing student credit card debts or other credit accounts, then you need to pay them off in the soonest time possible. This way you can minimize the payments you need to make on interest. You also need to make sure that you pay your bills as soon as they arrive. In so doing you can avoid paying additional charges such as overdue fees.
5. Spend some cash. Even if you have a credit card, resist the urge of charging all your purchases and bills on your card. It is still recommended that you use cash for daily expenses. After all, paying with cash for certain items will keep your budget intact and promote financial discipline.
We hope that these five tips can help our readers keep themselves out of credit card debts as they work their ways into earning their respective degrees from colleges or universities.
(No Ratings Yet)How can I Stay Out of Credit Card Debt?
Aug 10th
A lot of people believe that teenagers should not be allowed to use student credit cards. They contend that young people are very irresponsible and reckless when it comes to handling their finances. These people think that students will only fall into a great deal of financial trouble should they be allowed to use and hold on to their very first credit cards. But is this belief correct?
Well, even though students may have the tendency to be careless when it comes to money matters, this does not justify the point that they should not be given their very first credit cards. As long as they are given guidelines and sufficient information on how they should manage their student credit cards, they can also succeed in staying out of credit card debt. But how can they do this? Well, they can do so by employing the tips and pointers that we have listed below.
Tips on Staying Out of Student Credit Card Debt
1. Shop and compare different credit card programs. Once you enter college, for sure you will receive several offers from different issuers of credit card for students. Will it be wise to get the very first student credit card offered to you? Of course not! You need to take your time in shopping and comparing the terms and features of different credit card programs. Consider the rates of interest, payment terms, fees and charges and of course the application requirements. In so doing, you can select a credit card for students that will perfectly suit your needs and your financial capabilities.
2. Budget your expenses. Making a budget is an important life lesson that each individual must learn. The sooner this lesson is imbibed, the more financial rewards the individual will surely receive. But how can you devise your own budget?
Well, it is relatively easy. You need to jot down all the expenses you have incurred in a month. Then deduct your total spending from your total allowance or from the proceeds of your student loan. Consider each value listed on your budget. And ask yourself: is this expense really necessary? If the answer is yes, then retain it on your list. If the answer is no, then erase it from your list. This way you can cut down on unnecessary and wasteful expenses and you can allocate your money only on your basic needs.
3. Stick to a personal budget. Devising a personal budget is easy. However sticking to your budget is very difficult. Still you need to resolve to stick only to what is listed on your personal budget plan. This way, you can avoid incurring debts that will prove very difficult to pay off later on.
4. Pay on time. If you have existing student credit card debts or other credit accounts, then you need to pay them off in the soonest time possible. This way you can minimize the payments you need to make on interest. You also need to make sure that you pay your bills as soon as they arrive. In so doing you can avoid paying additional charges such as overdue fees.
5. Spend some cash. Even if you have a credit card, resist the urge of charging all your purchases and bills on your card. It is still recommended that you use cash for daily expenses. After all, paying with cash for certain items will keep your budget intact and promote financial discipline.
We hope that these five tips can help our readers keep themselves out of credit card debts as they work their ways into earning their respective degrees from colleges or universities.
(1 votes, average: 5.00 out of 5)Helpful Credit Card Tips for College Students
Aug 1st
We often wonder why credit card companies provide college students with excellent first credit card programs. Aside from receiving very affordable interest rates and fees, college student are also showered with gift items such as T-shirts, beach towels, bags, caps and other free products. What could be the reason behind this “special treatment”?
Well, card issuers understand that college students are potential, lifelong consumers of their card programs. And these kids will continue to spend, spend, and spend using their very first credit cards. According to a 2005 study, an average freshman carries over $1500 worth of credit card debt. And this value is projected to double by the time the student leaves his college or university campus.
Now, are you a college student, who wishes to have and use your very first credit card? If you are, then what tips can you use in applying for and in using your student credit cards? Below we have listed some pointers that college students can employ to succeed in getting a good student credit card program. The tips we have enumerated below will also help our readers in managing credit cards for students in a responsible manner.
Tips for Student Credit Cardholders
1. Find a card with a good rate. Students are easily lured by the zero percentage offers of most card companies. However, they need to look at the Annual Percentage Rate (APR) charged on their respective credit card programs. They need to take their time in finding the student credit card that imposes the most affordable interest rate. This way, they will only need to make small payments on interest in case they are not able to pay in full their credit balance for the month.
2. Avoid student credit cards that charge annual fees. Students should skip cards that charge annual fees. Instead they are encouraged to settle only for the cards that charge the lowest possible interest rate and fees so that they won’t need to spend a lot of money just to get and use their very first credit cards.
3. Beware of reward cards. The idea of earning rewards while you spend is a good promotional strategy employed by card companies. But college students need to remember that they can only redeem the rewards if and only if they are able to spend a great deal of money by using their cards. And this can cause them to accumulate large credit card debts. So, students need to be wary of reward credit cards.
4. Keep it to one card. Even if it might be very easy to get approved for a credit card for students, students must resolve to stick to just one or two credit cards. This way they can minimize the risk of running up more and more debts on their respective cards.
5. Pay on Time. College students must remember to always pay completely their credit card bills, when they are due. This will not just help them avoid paying large interest and fees. This can also help them build a good credit reputation, which determines the credit prospects that will be made available to them.
6. Avoid the cash advance facility of your credit card. Relying too much on the advance cash offered by most student credit cards can prove to be very costly. This is because the cash advance feature normally charges high variable interest rates. Not only that. Consumers may also be required to pay additional finance charges every time they withdraw money using their credit cards. So as much as possible, students must avoid taking cash advance with their credit cards
(1 votes, average: 5.00 out of 5)Four Programs You can Choose From to Get Your Very First Credit Card
Jul 26th
Students and minors often find it difficult to get approved for their very first credit cards. After all, they do not have credit records to present to their prospective issuers when they attempt to apply for regular credit card programs. Aside from this, most teen-age card applicants do not have stable jobs that they can use to guarantee the immediate repayment of whatever debts they might be incurring.
Still, it is possible for students and teenagers to get the credit cards they need. There are actually four card programs available to first-time cardholders. Through these card options, students and minors can gain access to business establishments that rely solely on card transactions. Not only that. Through their very first credit cards, young consumers can successfully launch their credit reputation which paves the way for a bright financial future.
So, what are these four card programs open to students and first-time cardholders? Let us discuss them one-by-one.
Four Card Options For First-Time Cardholders – First Credit Card
1. Credit card for students. Teen-age card applicants can get approved to use credit card for students. However the main requirement for this student credit card program is that the applicant must be currently enrolled in a college or in a university. Now what should a student consider before applying for and in using a credit card for students?
Well, a student needs to remember to apply only for the student credit card that possesses the lowest possible interest rates and fees, and the most flexible payment terms. And after he gets approved for a credit card for students, he must resolve to use his card in the most responsible way he can. He also needs to stick to just one card, so that he can avoid running large credit card balances which will prove very difficult to pay off.
2. The bank where you opened checking or savings account. If you have a savings or checking account with a bank, then you can approach the customer service representative of your bank, and ask about the possibility of opening up your first credit card. Having an existing relationship with your bank can improve your chances of getting your credit card application approved, so long as you have been responsible in managing your bank account.
3. A department store or gas card. Department stores and gas companies usually have easy approval credit cards. Through their quick approval system, you can immediately get the credit card you need for you to make purchases and pay off your monthly bills. However, these credit card have one big downside. Your card will charge a very high interest rate and this can cost you a lot, especially when you decide to carry a credit balance from one month to the next.
4. A secured credit card. Even if you lack credit history, you can still get approved for a secured credit card. You just need to submit all the relevant documents, pay the charges and fees to activate your card, and provide a monetary deposit that will serve as collateral for the usage of your credit card. And soon enough you can have the secured card you can use in making purchases and even reservations in commercial establishments that depend on card transactions.
We hope that this article helped you see the credit card options that you can take advantage of should you want to get and use your very first credit card.
(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)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)
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