Student Debt and Credit Education Blog

For loans (including private student loans), student credit cards or investments that involve compounding interest, there are two popular interest rate related terms.

Annual Percentage Rate, or APR, is a measure of how much interest will be on an annual basis without taking into account compound interest.

Annual Percentage Yield, or APY, is the same interest rate measure, but accounts for compound interest – a better measure of how much you will actually pay in interest. Banks and credit card issuers often express credit card interest rates in APR, in order to better hide just how much interest would cost.

Learn more, Read:

What is the difference between APR and APY?

Thanks to the credit crunch, the recent economic recession and the rising cost of education, student debt is more prevalent than ever. Between credit cards and student loans, many graduating seniors will have as much as $50,000 to $60,000 in debt that has to be repaid.

Here are a few strategies that can be used separately or together to curb your debt and get you on track to financial stability and better quality of life.

1) Get a free debt consultation.

There are tons of services such as Credit.com’s free debt consultation service that match you up with a licensed and certified financial professional. We always recommend that you consult with an industry professional because they will know all options available to help you get control of your debt.

2) Budget, budget, budget!

While most of us have a negative knee-jerk reaction to the word “budget”, the truth is it is ESSENTIAL to managing and reducing debt. Even something as simple as plotting out how much money you are willing to spend on basics like food and entertainment can free up a surprising amount of money in a month to go toward your debt.

To give a quick example, I recently decided that I would buy lunch no more than 3 times per week (I usually buy every day.) I’ve already saved about $50 per week (more if you don’t count groceries) — that’s $200+ a month!

3) Make small overpayments directly to principal.

If you aren’t familiar with loan jargon, “principal” is the physical amount of money you borrowed. Interest is figured out based on how much principal you have remaining, multiplied by the interest rate.

Thus, if you pay more than your minimum, the raw total the interest is based on goes down quicker and you pay less money overall. It’s a win-win.

Note — always specify that you want extra money going directly to principal. Otherwise, some banks will sneakily apply it to “future interest” and you won’t be slimming down your payments like you want to.

Did you know that StudentPlatinum has a credit education center with over 15 articles on various credit and student credit topics?

We’ve done the legwork to make sure the information presented to you is accurate, practical and useful for everyday life. No deceptive practices, no sketchy content. (more…)

According to the Free Financial Dictionary, credit score is defined as,

A credit score is a numerical expression based on a statistical analysis of a person’s credit files, to represent the creditworthiness of that person, which is the perceived likelihood that the person will pay debts in a timely manner. A credit score is primarily based oncredit report information, typically sourced from credit bureaus / credit reference agencies.

In laymen’s terms, a credit score is an at-a-glance measure of risk for banks. The higher the number, the less risky you are to lend to or be given the ability to charge purchases to a line of credit. (more…)

If you’re in the market for a credit card – be it your first or not – the complexity of picking one can be overwhelming and pretty confusing. There are tons of different features and benefits in play such as Purchases APR, Balance Transfer APR, annual fee, cashback, etc.

Let’s outline a few basic rules to make the process easier and less stressful for you. (more…)

Hey there summer boys and girls! The heat is in full swing up here in Boston so if you are looking for something to do inside, consider checking your credit for free.

Did you know that every private student loan requires a good credit score and stable history? Even things like renting an apartment, buying a car or getting a cellphone can require credit to be approved. Therefore, it’s really important to keep on top of your score and make sure you are free of fraud and delinquency on your accounts.

So pull up a chair, bask in that amazing air conditioning (you know it feels good!) and head over to FreeCreditScore.com. Make sure that all your cards are listed properly and nothing appears that you don’t own. If you have any questions about credit once you get there, head over to Student Platinum’s Credit Education Center to learn more!

Check your credit for free! »

After you’ve checked your credit, head over to ScholarshipPoints and redeem this code for 25 scholarship points: FREECREDITYAY

It is extremely important to make sure your credit card payments are made on time.  A late payment can lead to additional charges and a dip in your credit score. It’s true! Part of your credit rating is based on your ability to make payments on time, and even one late payment can hinder your ability to take out a mortgage or finance a car in the long-term.

Here are some easy ways to ensure you never miss a credit card payment.

Use automatic bill pay. Imagine being able to pay your bills without having to lift a finger. It’s possible. If your bank allows you to set up an automatic bill pay, use it. You set the date each month and your bank automatically deducts the amount you wish to pay.

Set an alert for when you will pay your bills. You don’t need a full planner to keep track of bills. It’s very easy to set up an alert on your phone or email to remind you when you need to pay online or mail out a check. For example, Google Calendar lets you set up an alert that will send you an email or text message on the day you want to make a payment.

Dispute unfair charges. If you are unjustly penalized for a late payment, you can dispute it. The first thing you will need is documentation. Print out bank statements or credit records and take note of the dates. The best evidence you can provide is a printed copy of an online pay receipt. If you pay your bill online, you will often get an email from the bank’s website telling you when you have submitted a payment. Print this page out and keep a folder handy to log all of your payments.

It’s not exactly a secret that trying to build credit as a student is like power washing a house with toothbrush. There are a lot of hurdles, but having an established credit history is absolutely crucial for pretty much every big life event in the book.

For instance, did you know that in many cases you need to pass a credit check to rent an apartment? Or that for pricier cell phone carriers like Verizon, you need credit just to start a contract? (more…)

Hey everyone! Are you looking for ways to improve your credit score? StudentPlatinum has just added a page with four simple steps you can take to Improve Your Credit Score for Free.

The first of your options is to talk with a credit expert from a debt counseling company to develop a personal credit management plan.  The people at Credit.com can help you make sure you don’t go into debt by maintaining an adequate credit score.
If you’ve had a few glitches with your credit, you can review it and fix it at no charge. Freecreditreport.com can provide you with your credit report and credit score. If you have a high credit score, keep up the good work. You may be eligible for appealing rewards. If your credit score is on the lower side, a Credit.com expert can provide suggestions on how to improve this.

Since building a high credit score has become so important these days, why not start as soon as possible by opening up a credit account in college? You can use your card to make regular payments on things like food, books, and gas while at school by applying for a student credit card like the one offered by Discover. If you already have money for these items in your bank account, and were planning on paying for them with cash, think about using a card and paying the company directly instead so you can reap any rewards they throw your way for regular and on-time payments.

If for some reason you find yourself in multiple debts, one final step that this article mentions is to consolidate these debts into one payment, and reduce your debts significantly. This will make it much easier for you to keep track of your debt and eliminate it altogether in no time at all.

Make sure you check out the article. I hope you will find it helpful!

Summer is not all sand and surf for college students. Many have to find an apartment for the fall. Others are looking to buy a new car. Some might be looking to take out a private student loan for college. For each of those expenses, you will need a good credit score.

That is why you have to check in on your credit score from time to time, and research ways to improve it if it is below par.

That may sound daunting, but you can easily research improving your credit score in one easy place. Visit Student Platinum’s credit score improvement page today. Find out your credit score, and which credit card is right for you. It won’t take long, and you will be back on the beach in no time!