Student Credit Card and Credit Education Blog

From Student Loan News, Updates and Blog Posts » Credit Cards:

I just have to laugh when I hear people say that credit cards put you in debt. I believe what they are really trying to say is, I’m irresponsible and can’t control my spending ways. That would at least makes sense to me.
The fact is credit cards serve a real purpose if used [...]

Originally published by Student Loan News, Updates and Blog Posts » Credit Cards.

Knowing the formal process involved in disputing a charge on your credit report is of paramount importance. You obviously want to move quickly to correct the situation and gain back those valuable credit points that have been stripped from you.

Your credit score can either serve as your best friend or your worst enemy as it is used when considering leases, loans, and employment. The funny thing is that for something so important we seem to treat it like a rusty old bike in the backyard; we pay little mind to it at all.

In contrast we protect the contents of our homes by locking the door, have alarms installed in our automobiles, and even put little fences around our gardens to fend off predators from feasting on our tomatoes and cucumbers. There is also a way you can protect your credit score, which we discuss later in this blog, but for now lets focus on your five step plan for disputing a charge on your credit report.

Step 1: Contact the three major credit bureau’s: Trans Union, Equifax, and Experian and place a fraud alert on your credit report. That way if anyone tries to open up a new line of credit under your name the lender will notify you, though it is not required by law for them to do so.

Step 2: File a dispute with each of the three bureau’s (response generally takes between 30-45 days while your claim is being investigated). It is best to submit your dispute in writing with any documents you have on file to support your position.

Step 3: Send a dispute notification in writing to the creditor whom you are disputing the item.

Step 4: Send your disputes certified mail, “return receipt requested” so you can document that your letters were received.

Step 5: Ask the consumer reporting companies to send notices of correction to anyone who received your report in the past six months, assuming you have a favorable result (they will only do this if you ask).

Finally, you may want to consider protecting yourself with a service like myFICO score Watch which serves as your personal safeguard by alerting you immediately when there is a change or query into your credit.

myFICO Score Watch Benefits

• Monitors important changes to your FICO
• Provides timely alerts when important changes are detected
• Easy-to-read view of how lenders see you and items affecting your score
• Alerts you when you might qualify for better interest rates on loans

You can never have too much protection. Find out what all the hype is about with a 100% Risk-Free 30-Day FREE Trial!

Credit card theft is something we are all weary of, but do we do enough to protect ourselves? A former colleague of mine was a victim of credit card theft this past May. Fortunately for her she picked up on the fraudulent activity within days of the card being compromised after calling to get an account balance. It’s a scary thing when someone breaks into your safe haven.

Just last month the Department of Justice announced that more than 130 million credit and debit card numbers were allegedly stolen by a group of hackers. They designed a program that was able to find its way around a network’s firewall to steal credit and debit card information. This effected Hannaford’s, 7-Eleven, and Heartland Payment Services customers. Inevitably it will happen again, but there are some things you can do to protect yourself.

Protection Tips

• Call and request a new credit card number from your lending bank every two years. The reason it’s important to change your account number and not just cancel your card and apply for a new one is because the length of time you stay with a credit card company is counted positively toward your FICO score.
• Become more vigilant. Check out your account statement once a week online or make a quick call to ensure the balance is consistent to where you believe it should be.
• Don’t ever write your entire account number on a check if you are manually sending in a payment. The last four numbers are sufficient. The billing department will be able to match your name and cross reference the last four numbers to apply your payment.
• An alert service is great to have for several reasons. If you have a credit card that you seldom use you may not realize it has been compromised. If the perpetrator changed the billing address you’d never even receive a statement. That would in turn lead to missed payments and a poor FICO score. Nowadays you can sample a service for FREE and see what you think. It’s nice to have that insurance in your back pocket.

All it takes is a few simple steps to help keep you one step ahead of the hackers.

Scholarshippoints Code: THEFTOHNO

From Student Loan News, Updates and Blog Posts » Credit Cards:

As you head back to school, some back to school financial aid tips…

Avoid credit reps on campus. You don’t need that free t-shirt, and a lot of inquires can hurt your FICO score.  (Your FICO score is used to determine your eligibility for student loans and other credit products.)
Make a budget BEFORE [...]

Originally published by Student Loan News, Updates and Blog Posts » Credit Cards.

Improving your credit score is a hot topic these days. Several weeks ago I posted an article entitled Would You Rather Have a Higher FICO or SAT Score. And while the views were mixed on which was more important all agreed that both were equally relevant. Of course this is not an either/or proposition. You can have your cake an eat it too. Most just need a little guidance.

Generally speaking students know how to improve their SAT score, but are unsure how to go about building a solid credit foundation. There are some simple steps you can take to build your credit score while in school, but there are also some professional organizations you can use to check your FICO score and monitor changes in your account for free.

The first step is to get a copy of your credit report. Once you have your baseline you can form a plan of attack. If you need to fix or repair your credit there are services available to assist you. If you have limited to no credit, work on strengthening it. It’s your future. Make it a bright one.

GET STARTED today!

While your top priority is scoring well on exams, there is no reason you can’t kill two birds with one stone and enhance your credit score at the same time. With a little knowledge and know how you can make it happen.

How to build credit while in school

• Auto debit: Instead of paying for your books in cash charge them on your credit card and setup a reoccurring auto debit for several months until the books are paid in full. It may cost you an additional $15-$25 in interest over that time but you will be saving yourself money in the long run.
• Don’t sign up: You may see several credit card companies on campus this fall chasing you down with a free t-shirt to sign up for their card, and though it may help you put off laundry one more day, don’t do it. Multiple queries into your credit are not favorable. In fact, they can actually decrease your credit score.
• Low balance: Keep your balance relatively low in relation to your total credit line. By keeping a favorable debt to credit line ratio you will score valuable points.
• Keep one card: Don’t bounce from card to card or stockpile multiple cards. Keeping one card for an extended period of time holds significantly more value than hoping around.
• General purchases: Credit cards are great for everyday purchases like groceries and gas, provided you can pay them off at months end. Again, it’s all about getting on the grid and displaying a positive credit history.

Check out the BEST credit cards for students »

When is your credit score most commonly viewed

• When applying for a credit card
• When leasing an apartment or buying a house
• When purchasing a car
• When taking out any type of loan (personal, equity, etc)
• When applying for employment for many professions

• Learn how to improve your credit score »

Can a prepaid card help me build credit?

No. You need to have an actual credit line extended to you to strengthen your credit score. You don’t actually borrow money with a debit card. Building good credit is all about borrowing money and making on time payments. As you establish a positive credit history your credit score will rise and your interest rate will drop. That said, debit cards are a good way to get your feet wet.

Debit cards work the same as a credit card in the sense that you can make purchases online, over the phone, and in stores. You can also take cash withdrawals from ATM’s. If your parents are steadfast against you having a credit card you may want to suggest a prepaid card to prove to them how responsible you are before graduating to a credit card.

• APPLY NOW for a prepaid card »

ScholarshipPoints code: BLDCREDIT