Opening a Student Bank Account

Many college students will open their first bank account just as they leave for campus.  Others have had bank accounts since they were kids.  Student banking may be a new concept to you, or you may have had a bank account for quite a while. Either way a student bank account is essential for managing your money and for the transfer of your grant or student loans funds. There are a number of key aspects to think about when choosing your bank and how to use it effectively. Read more for all you need to know about banking.

Considerations for a student bank Account

What are the typical considerations for Student Banking or when opening a new account?  There are many.  The first place to start would be by asking an adult, counselor or financial aid officer.  Otherwise, visit a number of websites offering online banking services.  Once you have some general information, walk into your local bank and ask for advice from there team.

In general, most student simply need a checking account.  If you have savings or additional cash, you may consider a savngs account which will earn you interest on the amount deposited.  A CD or Money Market account might pay you more interest on your savings but may also have some string attached.

For more information, visit: Student Banking from StudentPlatinum.com

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.

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…)

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…)

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!

If I learned anything during my four years in school, semi-obsessive personal finance is definitely among the finalists. If you think about it, you have relatively low income (or none) and constantly are juggling any number of expenses that have to be paid from textbooks to feeding yourself.

Now that I have graduated, the components have changed but the game remains the same. To this end, I thought it might be helpful to explain why Mint.com worked for me and how you can use the service to keep tabs on your personal finances. (more…)

I don’t consider myself an especially “green” person. Sure, I turn off the lights when I leave a room and I don’t throw trash on the sidewalk.

I am also a huge fan of going paperless when it comes to my banking. This is not to because I care about Mother Earth one way or the other, but because the benefits of going paperless are pretty far-reaching:

Avoid late fees – Going paperless and doing all of your banking online is a very responsible and easy way to avoid making a late payment and dealing with the ensuing charges. There are few things more harrowing than being just a couple of days shy of a payment due date and having to rely on snail mail to get your bill sent in on time.

Further, many credit card companies add a specific time to their due dates. In other words, your payment may be due July 15, but read a little further and you will see it’s actually due on July 15 at 1:00 p.m. So if you have a slow mailman who gets your bill in at 1:30, you get stuck with the late charge.

With online bill pay, not only do you avoid the treachery of the slow mailman, but you have the option to sign up for an automatic pay option. Many card company websites allow you to set up a time every month when your payment will be made automatically. Essentially, you don’t even have to remember when your bill is due. Now that’s being responsible!

Easier to avoid identity theft – It wasn’t so long ago that paying a bill online seemed like an easy way to get your identity stolen. But these days it might actually be safer to pay online. Card companies have devoted a lot of time and money into beefing up their online security. Not only that, paying online allows you to avoid having your bills and statements stolen out of the trash by dumpster divers, compromising your personal and financial information. Paying online gets rid of the paper trail.

(Remember to always be smart about online banking. Change up your password from time to time and don’t leave yourself logged in on a public computer.)

Stay on top of spending – Want to hear something archaic? There was a time when people wrote down every purchase they made in a little bankbook. Some people, at the end of every month, had to sit down and balance their checkbook. Crazy, right?

With paperless online banking, you can see every purchase you make down to the cent, quickly and easily.

In light of the environmental crisis afoot in the Gulf, it becomes clearer and clearer that steps need to be taken to protect ourselves well in advance of a problem’s appearance. As much as this applies to offshore drilling and many other environmentally-destructive industries, there are lessons to be learned in your personal finance as well.

Much like a gushing well deep under the ocean, unmonitored credit debt swells and compounds on itself until it becomes so toxic that your finances may not recover for years. Worse still, there usually is collateral damage to other things as well like your standard of living and ability to take out loans for school or things you need. Therefore, prevention and careful planning becomes paramount to harnessing the power of credit for good and avoiding nasty consequences for its misuse. (more…)