Student Credit Card and Credit Education Blog

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…)

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…)

Earlier this year, I wrote a post on saving large amounts of cash while in college. Believe it or not, it is possible to make it through four years or college without living entirely off Ramen noodles. Here are some more tips that could lead to big savings:

Let your bank help you. Almost every bank and credit union nowadays is coming up with ways to help customers save money. The mentality is, the more you save, the more likely you are to remain as a customer. So take advantage! If your debit card offers cash back rewards, use it! If your bank deposits a certain amount from checking to savings every month, sign up for it. These promotions are there for a reason, and can save you a solid chunk of change every month.

Adjust your tax withholding. A lot of people claim 0 or 1 on their taxes. Truth be told, most people can claim more exemptions than that. By doing so, you will earn more in your weekly paycheck. Now keep in mind, this means you will have a substantially lower tax return, and you can only claim legal exemptions. But if you have found your self living paycheck-to-paycheck, earning more in the short-term won’t hurt.

Eat healthy. Oh, the freshman 15. Not good times. Bad times. You’re away from home for the first time, and finally – finally!- you can live out your dream of eating pizza every night of the week. It’s a noble goal, but one that won’t do much for your health or your wallet. Want to save money? Adapt to a diet. Get acquainted with your dining hall salad bar. Many campuses offer vegetarian options that are healthy and can save you from running up a huge fast food tab.

Get a scholarship! Just because you’re in college doesn’t mean you couldn’t use a little extra money. Sign up for www.ScholarshipPoints.com today for your chance to win a monthly $1,000 scholarship! Here’s a bonus code to get started: SAVINGS2

In your daily travels, perhaps you have seen signs in bank windows advertising, “12 Month CDs 2.8%!” To those without a background in banking or strangers to saving money, it might look and sound like gibberish. Let’s dispel the confusion and go over what a certificate of deposit is and how it works.

What is a CD?

A CD is a savings tool. Simply put, it is a way of stashing away money for months at a time to earn more interest than you would in a traditional savings account. You’re basically giving up your right to access the money for the length of the account to get a high interest rate on money you wouldn’t need to touch right away. (more…)

When I was in college, I bought my first laptop using a financing option. The terms of the agreement stipulated that if I paid off the balance in six months and make at least the minimum monthly payments, I wouldn’t be charged any interest. Perfect, I thought. I’ll put a little aside each month and in six months, the laptop is mine. Like any good American, I became complacent and kind of ignored the bill.

About three months in, I forgot about it all together, and didn’t look into the charge until the end of the six month period.  Because I didn’t read the fine print, I didn’t realize that missing a payment, or even being late on a payment meant the no-interest financing deal was off, and I was immediately charged the full six months of interest.

That’s the dirty little secret about no-interest financing. It’s incredibly fickle. There is no margin for error. Not only that, but the interest rate jumps from a wonderful zero percent, to a wallet-crushing 20% or more. After that expensive lesson, I still take advantage of no-interest financing, but now I set up automatic bill pay. If you are going to take advantage of a seemingly great financing offer, I suggest you do the same.

If you are attending college for the first time in the fall, you have probably been inundated with a list of items you need to buy before your folks drop you off at the dorms, from a laptop to a shower caddy. Well, here is the opposite of that list. Here are some things you will be tempted to pay for in college – but shouldn’t.

New Books at the Bookstore – During my entire freshman year in college, I bought all of my books at my school’s bookstore. I spent a little over $1,000. After that, a friend introduced me to Half.com. From then on, the most I ever spent in a semester was $150.  The point is, there are so many options out there for finding the textbooks you need, that you should consider your college bookstore like a last resort. Check out Half.com, Amazon.com, or even eBay. Ask your professor if she keeps one on hold at the school library. Speak with a couple of classmates to see if they are interested in sharing a book.

All of these are better options than the school bookstore.

Writing Services – Regardless of your major, you’re going to have to do a lot of writing in college. You will also see a number of ads from “writing professionals” who want to lend you a helping hand. Do. Not. Bother. First and foremost, having someone do your work for you is unethical. You and/or your family are paying a lot of money for you to get an education, not to have some hustler do your work. Second, it’s astronomically stupid. Many professors are wise to these services and all it takes is a hint of suspicion and a quick Google search and you will be busted. These days, many colleges and universities have zero-tolerance academic honesty policies. It’s just not worth it. Write your own paper.

Fast Food – You will be tempted as a student to simply spring for a burrito and a Coke every night. Don’t. While it’s okay to cheat every so often (I used to allow myself fast food on Friday and Saturday, and either cooked or visited the dining hall every other day), if you become a regular at your area Burger King, you’re going to get a head start on your Freshman 15, and the only thing you will have that’s skinny is your wallet.

Credit Card fees – If you elect to get a credit card for school, be responsible. Set up automatic billing so you don’t miss a payment and get hit with a late fee.

ScholarshipPoints code: NOSPEND

One of the nice things about having a credit card is the perks. Card companies love to offer incentives to customers so they will use their cards more. Two of the most popular – and useful for customers – are cash back and rewards points programs. Which program works best for college students? Let’s break them down.

CASH BACK: Cash back programs allow you to earn cash based upon a percentage of your daily charges. For most cards it’s a flat rate; for others you can earn more or less depending on what type of purchase you’re making. My card, for example, lets me earn up to 5% cash back on gas. (A nice bonus if you’re planning a road trip.) Other cards allow you to earn more cash back for things like groceries or using your card at certain stores.

REWARDS POINTS: Points programs earn you a specific number of points for every dollar you spend. Those points can then be used almost like a gift card at certain stores designated by your card company. One of the most common types of rewards points programs are airline miles cards. (I would highly recommend this if you are going far away to school and will need to fly home a couple of times per year.)

So which is best for you? Obviously, cash back offers you more freedom. Unlike rewards points, you can use your savings pretty much anywhere, or to pay off some of your balance. It’s like getting a small discount every time you shop.

Conversely, rewards points typically give you more since they are targeted toward certain stores. If your card is partnered with a specific department store, both the card and the department store will want you shopping there.

I would personally stick with cash back if you are planning to make a bunch of small purchases at many different locations. Even if you’re only getting 1% cash back every time you use it, it can still add up.

However, if you know the stores where you plan to shop, and those businesses coincide with your credit card rewards partners, you might be better off using a points program. As I said before, if you plan to fly a couple of times per year (either to go home or on spring break), then I would recommend an airline miles card. A friend of mine went to school in Boston, but lived out in California. She used her card enough where her flights were almost all paid for by the time her junior year came around.  NOTE: Some cards have expiration dates for rewards points and airline miles. Always check these first.

Also, remember cash back and rewards points are based on your use of the card. If you use the card too much and can’t make your payments, the impending interest you will owe could render any points or cash moot. So be careful!

ScholarshipPoints code: CASHREWARDS

Image credit: pfreviews on Flickr

If you’re a high school senior, then for a while now and over the next few months, you’re going to be seeing and hearing a lot about the cost of college. From student loans to scholarships, it can be a lot to take in. While paying for tuition, housing fees, etc. is obviously top priority, don’t forget that you are going to want to have a little extra spending money as well, especially if you’re planning to move away from home and live on campus.

Freshman year at college is a great opportunity to learn the value of a dollar and take your first few steps into the real world. If you’re not sure if you will have a job in college, you might be a little worried about walking around with an empty wallet, and that’s why you should start saving today.

Living on campus can be costly and so you should take precautions now to build up a nice little nest egg by the time the fall rolls around. Here are some easy ways to do that:

1. Open a savings account. Lets say you have a part time job that pays $150/week. If you could place $50 of that into savings, by September 1, you will have $1,000 saved up, with possibly a few extra bucks interest. Over the spring and summer, look for ways to continue feeding that account, from allowance money to high school graduation gifts.

2. Win scholarships. If you have access to a computer, you have access to tens of thousands of dollars in scholarship money available to high school seniors coast to coast. Simply visit ScholarshipPoints.com, where you can earn points for a chance to win scholarship money just by reading blog posts and completing activities. In fact, just for reading this blog post, we’ll give you 15 points to get started. Simply visit that link and enter the code: SAVENOW.

3. Find a student credit card. Now is as good a time as any to get your first credit card. Think of the expenses you pay for regularly – gas money, cell phone bill, going to the movies. If you pay for these with a credit card, and pay them off each month, you can not only begin to grow a credit score, but you can often get cash back savings and reward points. Get started with your credit card today!

Even if your student loans completely cover your cost of tuition, college is an expensive time. Food. Books. Going to the movies. Buying a new jacket for the springtime. It all costs money. Unless you decide to cover all of your expenses with credit cards (bad idea), you might be faced with the decision of trying to find a job. But what kind of job is right for you? Here are some ways to decide.

First, make a monthly budget. Write down every expense you have, from your cell phone bill to your total food cost. How much do you usually spend on the weekend? Write it all down and add it up for the month. You don’t have to get it down to the cent, but this should provide you a clear estimate of how much money you’re spending.

Now is a good time to see where you can save. Instead of ordering out for pizza every other night, you could use your school’s meal plan. Instead of running up a credit card bill, you could use a card with a good rewards plan that will give you cash back on everyday purchases. Here are some more tips for huge savings.

Next, make a budget of your time. Never forget that your primary job in college is to study and get good grades so you can graduate. Do not take on a full-time or other such job that will cause you to take time away from class or study. How much time can you devote during the week? Should you work only on weekends?

Once you’ve figured out how much money you need and how much time you can spend, explore your options. Many colleges and universities are surrounded by businesses that cater to students and almost exclusively hire students. Some schools even have jobs on campus. One ideal situation would be to find an on-campus job that has some relevance to your area of study. If you’re in a biology field, for example, some schools offer paid part-time positions assisting in the campus laboratories.

Find a job with flexible hours, so you can take time off if necessary during finals week, for example. Be sure to check if you are eligible for federal work-study. If so, this could be a perfect situation. Many work-study positions are on-campus with flexible hours. Plus, it’s free money from the federal government that you don’t have to pay back.

ScholarshipPoints code: GETAJOB

Let’s face it, college life can get pricey, and I’m not even talking about tuition costs. Every day, students from coast to coast throw their money away because (a) they’re lazy,  (b) they don’t know any better, or (c) both.  What many students don’t realize  is that some of the biggest costs in college can be easily avoided if you’re willing to be a bit resourceful.

If you have a meal plan, use it. Those meals are already paid for, and can save you big over grabbing a slice of pizza and a soda every night. When I was a student at Northeastern University, the cost of my plan came out to $9 per meal. At the end of one semester, I had twelve meals left over that didn’t carry over to the following year. That’s $108 down the drain.

Pay your credit cards on time. Credit card companies are notorious about late fees or other penalties for missed payments. Not only can this adversely affect your credit score later in life, it’s extra money you have to pay out of pocket. Here’s a tip: if you credit card offers online bill pay and automatic payments (and most do), set it up.

Set up overdraft protection on your checking account. Once in college, I accidentally overdrew on my checking account, and didn’t realize until the next day. During that day, I purchased a cup of coffee, a burger and fries, and a magazine despite having less than a dollar in my account. Total cost of those items? $12. Total cost after overdraft fees? Nearly $200. The coffee wasn’t even that great.

Buy your books online. It amazes me how many people still use the school bookstore to buy their books for class. You’re throwing your money away! Worse, those book buybacks at the end of the semester will give you only about 10-15% of what you paid for the book initially. While you probably won’t find every book you need for class, always check sites such as Amazon or Half.com to see if they have a used copy you can buy for cheap. You could save hundreds of dollars.

ScholarshipPoints Code: FORTUNE0310