Student Credit Card and Credit Education Blog

There are two things I want you to do next time you speak with your credit card company.

1) Ask them if they apply your payments to the lowest interest portion of your balance first, and

2) Ask them if they raise your interest rate on outstanding balances.

Under the Credit Card Accountability, Responsibility, and Disclosure Act passed in May banks are no longer able to get away with this.   The Act is supposed to be officially in place by February but consumer complaints may expedite the full enforcement of the Act by December 1.

If you are like me you probably graduated from college with two things; a diploma and a pile of debt. It is completely normal for students to have federal student loans and private student loans to pay off after college, but on top of credit card payments, rent and insurance payments these loans can be a huge burden. There are ways to quickly pay down your debt without getting overwhelmed. Here is the method that I use:

1: Figure out your monthly income and expenses including any student loan and credit card bills. This will allow you to see how much money you have left over after the bare minimum is paid.

2: Pay at least the minimum payment on all of your debts each month. Missing any payment can negatively affect your credit score. A poor credit score will makes it hard to rent an apartment, buy a car and take out any kind of loan in the future. Additionally, if you put off making payments you will end up getting slammed with interest in the long run.

3: Without neglecting any other living expenses and a modest savings plan, use any extra money to pay off whichever debt has the highest interest rate. If you have a lot of credit card debt it is probably best to pay that down first. Once your credit card debt is paid off, try not to accumulate any additional debt. Once your first debt is paid you can move on to using your extra money to pay off whichever student loan has the highest interest rate and so on until you are debt free.

ScholarshipPoints Bonus Code: PAYDOWNDEBT

Let me just start off by saying I was a few fries short of a happy meal back in my college days. I stayed up way too late and drank entirely too much. Needless to say clarity of thought was not my ally during those hazy days. That said, I’m sure you’re wondering how on earth someone could wind up paying more than a hundred bucks for a pack of gum. Well, lets follow the bouncing ball on its enchanted path to overdraft charges.

That particular Friday started off innocent enough as I recall. I woke up at noon, took a quick shower, grabbed a bite, and began my day. I then decided to skip my two o’clock Statistics class. I know I shouldn’t have skipped class but probability theory and standard deviations just weren’t doing it for me. In hind sight getting my butt to class would have saved me a lot of money. Anyway, after I made the executive decision to skip class I headed to the gas station. I realized on my way that I didn’t have any cash on me, but that wasn’t a big deal because I had my debit card. I knew my checking account balance was fairly low however. I was thinking my balance was around $20 bucks. This was my first mistake. All I had to do was call and confirm my actual balance, but I was too lazy.

I then proceeded to pumped $15 of gas, which was fine, but it was the next purchase that set in motion a rash of overdraft charges that had never before been seen. I strolled into the convenient store after pumping my gas and paid for a pack of gum. That $1.50 pack of gum, believe it or not, set me over the brink. I would later discover I was hit with a $39.00 overdraft fee, yikes! As it turns out I only had $16 bucks left in my account that day. The gas charge was fine but the gum purchase pushed me past my available balance threshold. Still, I was none-the-wiser at the time as I continued on my merry way.

After the gas station I swung into the liquor store and picked up some beer for the night. This was strike two. I already knew I was dangerously close to my remaining balance but made the purchase anyway figuring I could just transfer the funds over to my account when I got home that afternoon and avoid any fees.

Here is where a little bad luck and incompetence come into play. When I got home I did transferred the funds over just as I promised myself, but transferred them the WRONG way! I wanted to transfer money from my ING account to my Citi account, which was connected to my debit card, but instead accidentally clicked transfer funds from my Citi account to my ING. Strike three! That was $117 in overdraft charges ($39 x 3) that hit me within an hour!

What I should have done

• I should have called to get my balance
• I should have spoke to a customer service representative to at least dispute my accidental transfer request and get $39 waved
• I should have had an overdraft protection plan. Had I been using my ING debit card instead of my Citi I would have saved myself a lot of money. ING doesn’t charge you a flat overdraft fee, provided you fall within your qualified protection line. Here is how it works: If I was extended a $100 protection line, which I was, and made some purchases totaling $26, while only having $16 in my account the $10 bucks would be pulled from my protection line. Then I would have only paid interest (based on the ING Prime rate) on that $10 until my next deposit was made. Pretty sweet deal.

Open a FREE ING Checking Account Now!

To this day I haven’t bought another pack of Doublemint gum.  It hurts too much.

ScholarshipPoints Code: GUMYUMGUM

Poor and college students go together like rhythm and blues.  As soon as one bill gets paid “poof” another one surfaces. It’s really tough when you’re living for today with minimal means while planning for tomorrow, which is what college is all about. Toss in your occasional $25 overdraft charge and it feels like you’ll never be able to climb out of that financial ditch.

It’s embarrassing to admit but when I was in college I used to gather loose change from underneath the seat cushions of the couch in the common area. There was nothing like the taste of a Pepsi I didn’t have to pay for, and sadly couldn’t pay for. But it doesn’t have to be that way for you. There are ways to bridge the gap between now and your winter break when most students grab some seasonal work. A credit card by Citi can serve as your best friend over the short term.

The real key to credit card discipline is identifying needs and wants and only using it for the needs. Unfortunately that line sometimes gets blurred by many young adults which leads to a sizable credit card balance. Charging a $299 PS3 system on your credit card is clearly a want and not a sensible purchase while using your card for such essentials as gas and food is a reasonable need. Still, if you don’t trust yourself completely you may want to request a lower line of credit or set a credit limit alert for yourself, which Citi offers to all its cardholders.

The credit limit alert system is great because it sends you an immediate email notification if you are getting close to your credit limit. It really is a terrific way of monitoring yourself. With a modest line of credit and a credit line alert you will ensure you’re in control of your spending.

College is stressful enough without wondering if you can make it from here to there because your tank is buried on “E” or stressing out over how much money is left on your credit line. Just think of Citi as the perfect last line of defense. Oh yeah, and as an added perk you can earn points as you spend to use toward gift cards, concert tickets, video games, airline tickets, mp3 players, DVD’s and much more. Qualified applicants can even score a 0% APR on purchases and balance transfer balances for the first 6 months.

So if the seat cushions at your school come up bare now you know you have another option.

The best college cards for students: Citi mtvU & Citi Forward card

ScholarshipPoints code: FINLNEEDS

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

Having a budget while you are in grad school will help you successfully pay for school without being strapped for cash.

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

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

Having a budget while you are in grad school will help you successfully pay for school without being strapped for cash.

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

Risk exposes you to the chance of something bad happening to you, but educating yourself is your best weapon at your disposal to minimize that risk.

Billionaire Warren Buffet, who was named the richest man in the world by Forbes in 2008 with an estimated net worth of 62 billion at the time once said, “Risk comes from not knowing what you’re doing.”  Don’t blindly walk through life taking advice from people.  Educate yourself.  Whether is it about credit cards, 401K plans, 529 accounts, an IRA, or anything else.

Everything is kind of scary until you do your homework and become informed.  StudentPlatinum is an excellent resource for anyone wanting to become risk averse as it is chalked full of great information.   You can even post queries in the StudentPlatinum Forum where our experts will guide you.

Turn that risk into certainty!

Credit Unions and Equifax are joining forces to make it easier to secure up-to-date compliant loan documents for lenders by rolling out a fully integrated system.  It’s a win for the lender who will now spend less time tracking down compliant documents and a win for those applying for a loan who will benefit from a more expeditious process.

>Read Full Article

During my first month of school as a college Freshman I attended College Fest. College Fest was a huge back to school festival featuring live performances, contests and “free stuff”. As a freshman in college I could not resist free stuff! There were credit card companies everywhere giving away free t-shirts, backpacks and water bottles to any student who would sign up for one of their cards. I thought it was awesome! I signed up for three cards that day and walked away with a big bag of swag.

After a week or so I had completely forgotten about the cards I had signed up for, that is until my Mom came out for a visit with a pile of mail.  I got a tongue lashing from her as she held up my newly minted credit cards.  I promptly canceled all three and did not apply for another card until my senior year of college.

What  I neglected to realize is that there is a right way and a wrong way to get your first credit card. The wrong way is to sign up for any old card just to get a free t-shirt. We all hate to do laundry, but one more extra large t-shirt is not going to make a huge difference in your wardrobe. What you need is a place to go where you can educate yourself about credit, like you are today. We can aid you with your credit card research and help determine the best credit card for you. We also provide credit education for students wanting to learn about APR, FICO scores, debt management, and money matter topics. I wish a site like this was around when I was a college freshman.

The truth is having a credit card to use while in college would have been beneficial for me, because it would have helped me establish credit before I dawned my cap and gown. It would have also taught me how to be a responsible credit card holder. Establishing a credit history in college can help you get a loan, buy a car, and rent an apartment when you graduate. When I bought my first car after college I needed to have someone cosign the loan since I had almost no credit history. Once again I was at Mom’s doorstep.

A credit card is also beneficial because it gives you security in emergency situations and enhances you sense of personal responsibility.  If you establish healthy credit practices in college chances are they’ll follow you for a lifetime.  I have a credit card that I use to make almost all of my purchases now, however, I make sure I do not spend more than I have in the bank and I pay it off in full every month. Because of this I have established excellent credit and was recently able to secure a mortgage to buy my first home. Having good credit really does pay.

The sooner you realize it’s a plastic world the better off you’ll be.  Leave the t-shirts, backpacks and water bottles for the others to fight over.  You’re on a different plan.  You’re on the fast track to establishing a solid credit foundation that will set you up for the rest of your life.

CHECK OUT THE BEST STUDENT CREDIT CARDS

ScholarshipPoints code: WISECREDIT

Sometime over the past 60 years the view on credit cards has moved from revolutionary novelty to overused crutch that millions of Americans blame for their financial woes. But credit cards, which have been around since 1950, are an important financial tool that everyone should have in their arsenal, especially college students as they are working toward building a solid credit foundation. If you act responsibility there is absolutely nothing to be scared of.

When credit cards were first introduced they were only valid at select restaurants in New York, but today they are a widely accepted form of payment almost everywhere you go. The advent of the Internet placed even more weight on this mode of payment over the past decade. In fact, nearly 60 percent of all online purchases are made with a credit card, opposed to debit cards or third party companies like Paypal. Simply stated, credit cards provide you with the means to make a purchase today with the promise that you’ll pay it back with interest tomorrow. So if that’s all a credit card is designed to do why all the fuss? Why are people scared to own one? The two reasons I hear most often from students are that they are uncertain about credit card fees and fluctuating APR’s. Oh ya, and that Mom and Dad are telling them they better not get a credit card or else.

It’s true that credit cards carry fees, and it’s also true that your APR can fluctuate, but once you understand how and why those fees and changes occur you’ll see there’s nothing to be scared of. Then, after you explain to your parents that you understand the pitfalls that accompany credit cards they will be more inclined to sign off on the idea that you are a responsible young adult ready to take the next important step.

Common Credit Card Fees

• Annual Fee: a yearly fee charged for the convenience of having a credit card
• Application Fee: a fee charged for completing an application
• Cash Advance Fee: usually a 1-3% fee per cash transaction
• Late Fee: a charge made for missing the due date on your monthly payment
• Over-the-limit Fee: a charge made for exceeding your credit limit
• Return Check Fee: a charge for having insufficient funds to pay your bill

The good news is that all the fees listed above are avoidable. The annual fee and application fee can be avoided if you find a company like Citibank that doesn’t charge them. Citibank has designed two cards, the Citi mtvU and Citi Forward card, exclusively for students with no annual or application fees and great reward benefits. The additional fees listed are avoidable if you simply act responsibly.

Knowing your APR

• APR Purchases: generally you will have one APR for purchases and one APR for cash advances and balance transfers
• Introductory APR: these are generally offered to entice you to sign up and then increase at the end of the introductory period
• Penalty APR: your rate will increase if you are late on a monthly payment (usually two or more times)
• Tiered APR: Pending how much you owe will reflect a different APR tier.

It’s important to note that you can call your credit card company at anytime to request a rate reduction as your credit score strengthens. In fact, with the Citi Forward card you can earn up to a 2% APR reduction when you make a purchase, stay under your credit line, and make on time payments 3 billing periods in a row. Again, acting responsibly benefits you.

So what is there to be scared of? Spend within your means, establish positive credit history, and earn points you can buy cool stuff with. If that’s scary than I hope to be frightened for the rest of my days.

The best college cards for students: Citi mtvU & Citi Forward card

ScholarshipPoints code: RESPONSIBLE