Student Credit Cards and Loans

GoStudentSavings.com: Student credit and student loans

2008-05-19T18:57:00.004-05:00

A typical college curriculum is loaded coursework dedicated to history, math, english, science, and whatever classes that support your actual major. The one thing that colleges lack in teaching is basic financial education, most notably how to handle debt; including credit cards, student loans, and finances beyond the college experience. I imagine some college students have no concept of balancing a checkbook and the word "budget" what is that? Sad but true.

Many websites offer good information about credit card information and definitions. If you want to learn more about student credit or information about student loans, visit the student credit page here or the student loan page here.

Knowledge Is Not Always Power: Credit Cards, College Debt

2008-02-20T23:30:00.003-06:00

Since graduating from college (5 1/2 years to complete thank you very much), I have reflected on some things that I could of done a little better as well as some things that I could have avoided, like CREDIT CARD DEBT!

Some of my credit card debt has unfortunately spilled over into post college life and along with my innevitable college debt payments, I am going to be paying off debt for awhile.

This is what I would have done, hindsight is always 20/20 as they say.

Ok first, I would have USED SCHOLARSHIPS! Take the Just do it approach. Take the time out and fill out the information. Every college offers some sort of scholarship program, obviously the bigger the college the more grants, scholarships, etc. At my school alone there were thousands and thousands of scholarship dollars not utilized every semester. Boy I wish I would have taken the time out. I won't tell you how much I have in school debt.

Second, avoid excessive spending on credit cards. This seems pretty obvious, but college campuses are preying grounds for credit card reps soliciting 0% APR credit cards for a free sandwich or some sort of other tantalizing offer. Be smart about it.
If you have to use your credit card for short term expenses like books, partial tuition payments, or whatever, then so be it. Sometimes I would use my credit card to pay for books and such until my grant and loan money came in through FAFSA

Ok finally, if applicable, use your company's tuition reimbursement plan. A lot of students work while in college to support themselves and pay for college. Some companies offer as much as $3,000 per year or more. You will have to check with your company's HR rep for more info.

Anyway there you have it, these are just a few things I would have done.

Is Money The Most Important Thing? Hot Jobs For College Graduates.

2007-08-07T20:17:00.000-05:00

Below you will a find an article my CNNMoney.com that reveals some information relating to college students and what they value in a job.

For college grads, money isn't everything

Survey shows students would rather have good health plan than high salary; Disney seen as top potential employer.

NEW YORK (CNNMoney.com) - College students would rather have a good health plan than make a lot of money, and many of them want to work at the magical world of Disney, according to a survey released Monday.

Walt Disney (Research) was voted the No 1 potential employer, after coming in 17th last year, among college students, according to the Undergraduate Ideal Employer Ranking Survey conducted by Universum Communications.

Google (Research) leaped 150 positions to second place in the overall survey and was the top employer among information technology students.

Engineering students chose Lockheed Martin Corporation, which knocked aerospace giant Boeing down from the top spot for the first time ever. General Electric came in third, followed by BMW, Walt Disney, Intel, Google and IBM.

Besides Walt Disney, business students also chose PricewaterhouseCoopers, followed by Ernst&Young, Google and Deloitte & Touche.

Health care was the top ranked industry, with Mayo Clinic, Pfizer, Johnson & Johnson, Glaxosmithkline and Merck in the top five amongst science majors.

Government and public services ranked No. 2, with the Department of State, FBI and CIA ranking high among liberal arts majors.

Liberal arts majors expected to make $39,237 straight out of school while IT majors expected to make $52,229. But more important than base salary, at 74 percent preference, was a strong health plan, at 84 percent, according to the survey. Other important compensation elements included a good retirement plan - such as 401K or 403B, followed by sick/personal and vacation day allowance.

The industries with the highest salary expectations were electronics, engineering consulting, chemical/petroleum, investment banking and venture capital, all in the $52,000s. Five years after graduation, venture capital, at $101,084, and investment banking, at $97,086, become the two industries that are expected to pay the most.

But this year the financial strength of a company was no longer the most important characteristic of an ideal employer. It slipped to 26 percent, compared with the 39 percent of respondents who chose high ethical standards as the one most significant factor when determining what company to work for, the survey said.

Most college students said their career goals are to balance their personal and professional life, pursue further education, build a sound financial base and contribute to society.

The study polled over 37,000 students from 207 schools in the U.S.

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Big Business Helping Credit Card Fees?

2007-07-15T01:46:00.000-05:00

I read an article by Mike from findqualitycreditcards.com and he gave some interesting insight into how big biz is helping to lower credit card fees:

Big Business Leads the Drive for Lower Credit Card Fees

There are a lot of mixed messages floating around about credit cards.
We know that they're a vital part of building and improving credit, but
it's hard to tell exactly what you're paying in monthly fees and late
penalties. It seems so complicated! Fortunately, credit card companies
are beginning to lift the veil of secrecy so that it's easier than ever
to see exactly what you're paying and when.

Why the Change of Heart?

Thanks are due to two unlikely sources: Wall Street and retailers.
MasterCard just became a publicly traded stock in May, and Visa is going to
follow suit next year. This is great for cardholders everywhere,
because Wall Street bigwigs want to see the raw data before they invest
money in a company. There have long been rumors that credit card companies
work together to gouge consumers with excessive fees. No investor would
want to put money into a company that could go the way of Enron.
Lawsuits, scandals, and shifty business all add up to lost money for the
stockholders, so in order to make their stocks attractive to investors,
credit card companies are bending over backwards to show that they are on
the up-and-up. This doesn't only help Wall Street investors, it helps
all cardholders see exactly how much they are paying and when they are
paying it.

The other group that is responsible for this increased disclosure is
the merchants who take credit cards. If a cardholder is unhappy with his
service, he can always switch to another plan, or even another
provider. However, retailers who choose not to take credit cards end up losing
business to competitors who will. They've decided not to take it
anymore, and who can blame them? Merchants typically pay one or two percent
of each purchase to the card companies. There are about eighty types of
fees that merchants have to pay, depending on how a card is swiped,
whether they take a signature, how often each card is used, and much more.
Now that retailers are learning how much they are being charged, they
can put pressure on the card companies to give them better deals - and
a better deal for them means a better deal for you!

The Benefits For the Cardholder

So it's easy to see why investors and retailers want to see the details
of credit card companies' fees. But how does it help the average
person with a Visa or Mastercard in their wallet? The first way is that
comparison shopping is now easier than ever. In the past, most people based
their decisions on interest rate alone. However, that card with the
lower rate could be sticking you with excessive late fees, or even
raising your rate each time you're late - without even informing you!

As cardholders become more informed and comparison shop for the best
deal, companies will undoubtedly lower their fees and rates, especially
those tricky "hidden" ones. The competition will encourage the card
companies to try to win business, rather than just taking it for granted.
Having a credit card is vital in today's society, but it's been a
daunting prospect for some consumers. Soon there will be no excuse for living
without a credit card, and we'll have "Big Business" to thank it!

Credit Card Mistakes

2007-07-07T14:16:00.000-05:00

Students are prone to get caught in credit card debt. Let’s take a closer look at the following mistakes that students make with their student credit cards.

Signing up for the first student credit card offer
As you enter college, you might receive a lot of credit card offers from different credit card issuers. If you’re not going to think about it carefully, you might just sign up for the first offer that you think sounds good enough for a credit card. It’s easy to get one enticed by a credit card offer. Most credit card companies make a lot of exciting promotions that may be hard to resist. However, if you’ll read the complete terms and conditions, you might be surprised to see that there are certain charges that are higher than expected.

To Sign or Not to Sign
To avoid signing up for the wrong credit card offer, don’t just read the best features of the credit card. Take the time to read the terms and conditions which can be found in the credit card’s website. This way, you’ll get to know about all the rates and charges that come with your credit card. Check out websites that give credit card reviews on different credit cards for students. These websites compile all possible student credit cards in the market, along with their main features in just one page. This will help you see what choices you have and compare them.
In addition, since this is your first time applying for a credit card, it will be better if you seek advice from your family or relatives who may know more about credit cards than you do. Better, you may seek assistance from a financial consultant who can give you an objective and informed opinion about the best student credit card.

Using up all your credit limit
Students are usually given a huge credit limit. But this does not mean that you can spend credit limit to the fullest. Bear in mind that you should keep your balances below 50% of your credit limit. Using up your entire credit limit on expenses has a negative impact on your credit report. Also, you’ll more likely have a hard time paying off your balances in time if you get in the habit of spending your credit limit to the maximum. This brings us to the next biggest mistake that students commit.

Not paying on time
The biggest mistake you can do on your student credit card is not paying your balances on time or skipping on your payments. Credit card companies can increase the rate of your APR, charge you with penalty fees and even take back your rewards and privileges. Worse, you might not be able to keep up with your credit. Incurred monthly balances are the most common cause why students get swamped with credit card debt.
Remember that owning a student credit card is your first step in establishing your credit history. You want to make a good credit report for yourself especially because an excellent credit status will be an enormous help for you when you finish college and enter the corporate world. So take your responsibilities on your student credit card seriously and avoid committing these mistakes.
Divine Linkletter is a credit analyst and a writer for Buildingcreditforstudents.com. She specializes in providing optimal solutions and advices to financial crisis especially to student credit and student credit card mistakes. Copyright 2007 http://buildingcreditforstudents.com
Article Source: http://EzineArticles.com/?expert=Divine_Linkletter

College Students: Work on your credit history.

2007-06-30T14:35:00.000-05:00

I received an email from a little while back that came from Mike at
ECreditDirectory.com . It contained some pretty good information to pass along.

The Importance of Building Credit History

For many people, credit is a Catch-22: They can't get approved for
credit because they don't have a credit history, but they can't build a
credit history without first being approved for credit. Luckily for them,
college students don't tend to have this problem. Credit card companies
view them as low risk, at least compared to other young people with no
credit, and so they're willing to give them a first chance. As a new
cardholder, it's vitally important that you make good use of this first
chance.

When you have a credit card, the issuing company reports information to
each of the three major credit bureaus - Experian, Equifax, and
Transunion. This information includes the amount of credit you've been
approved for, how much of that credit you are currently using, and most
importantly, your payment history. All payments - both late and timely -
show up on your credit report, and even one late payment can hurt you
rather badly when you lack a solid credit history. This is why you should
always, no matter what, pay at least the minimum due on each of your
credit card bills.
Always Try To Pay More Than The Minimum Due

While it's important to always pay at least the minimum due, you should
never only pay this amount unless you are completely unable to pay
more. In fact, it may not be a bad idea to pay the minimum immediately
upon receiving your bill and then pay more later in the month when you
have more money.

If you pay less than the total amount due, you will be charged interest
on your next bill. Even though the credit card company holds you in
higher esteem than one of your high school peers who didn't go on to
college, they still regard you as a rather risky proposition - which means
you'll probably be paying a very high interest rate. If you only pay
the minimum due on a card with a high interest rate, it could take you
several years to pay off even a modest amount of debt.

Take Advantage of Your Opportunities - But Use Your Credit Wisely

Believe it or not, it may be easier to get approved for credit while
you're in college then after you get out - particularly if you don't
start a professional job right away (or at all). The high interest rates
you're asked to pay are just part of being a newcomer to the world of
adult finance. But then again, if you always pay your credit card bills in
full, interest rates will be irrelevant.

Regardless of all the cautionary tales, you should definitely open up
at least one credit card account while in college to begin building a
solid credit history. If you can show the credit card companies that
you're responsible, you'll soon be paying much lower interest rates, and
you'll be able to get that new car or house when the time is right. If
you ignore or abuse your credit opportunities in college, it could be one
of the worst mistakes of your life. You're an adult now - it's time to
stand up, take responsibility, and enjoy your share of the American
Dream. And it all begins with responsible use of credit!

The Federal Reserve and how interest rates are set.

2007-06-25T14:07:00.000-05:00

You have probably heard about the Federal Reserve once or twice through your favorite news outlets. You may have also known that special members of the Federal Reserve hold meetings frequently to discuss interest rates and whether or not to raise or lower them. More information on monetary policy meetings here.

The Federal Reserve has a very profound effect on interest rates through changing what is known as the "discount rate. This is the rate in which money is disbursed to member banks in the form of loans. Member banks are required to keep reserves and sometimes need to borrow money to meet reserve requirements. These member banks also make loans to other banks, who in turn use that money to lend to corporations and individuals such as students. Major financial publications such as the Wall Street Journal, post the discount rate and other economic data in or around the front pages for investors to see. This data serves as a cluster of indications of the state of the economy and consistently reading these publications can give you tips on how to approach any investments and loans you may have. The one thing to take from all of this is: the higher the discount rate, the higher the cost of lending to you the borrower.

What Your Credit History Costs You

2007-06-21T11:37:00.000-05:00

Have you ever considered how lenders determine if you are worthy for a loan, and what about all of this talk about credit scores, credit worthiness, and why should it matter? Well, to preface the explanation on why credit scores are important, let's use an example: Let's say you plan to apply for graduate school(If you are like me, you just want to make it through undergrad school). The school of your choice will have minimum requirements for you to meet. When they receive your application, letter, and other credentials, they will look to see if you meet the requirements and if you are a good fit for their school. The process is similar with lenders when they approve you for a loan, credit card, or whatever. They want to determine if you measure up to their criteria. These measurements will determine first if you get approved, but even more than that, what interest rate you pay and how much you can borrow.

Ok, why is your credit history important?

Financial institutions exist to make money, and they do this by charging interest and fees. In order to gain business, they offer different interest rates and fees to different people for a variety of reasons. These financial institutions consider your default risk(a measure to determine if you will pay your debt back), the cost of lending, and inflation(expectation of a rise in interest rates)in determining the interest rate you will pay. Only default risk is unique to you, and it is determined by your credit history. So the better your credit, the lower the interest rate you'll be offered.

As you can your credit history is vital in order for you to get the best rates on a loan. Your credit history shows what kind of default risk you have. To minimize your default risk, stay on time with your debt payments, lower any existing interest rates on current loans if possible, pay down your debt, and monitor your credit report as often as possible. If you are considering lowering your interest rates on a loan, you should consider loan consolidation, and if your credit history is less than perfect, you can get help through many credit repair specialists.

You should start now as it takes time to rebuild and build your credit history.

Debt Consolidation....... Some things to consider.

2007-06-19T13:02:00.000-05:00

You have probably heard of loan consolidation at some point. I remember the first time I consolidated my debt. I actually went to the student financial counseling center on campus(which I recommend seeking out on your campus), and getting a lot of good information, particularly deadline dates to apply for consolidation. I didn't know a date existed, but it does. Let's go over some things about debt consolidation according to Consumer Action:

What is Debt Consolidation?

Debt consolidation may be an answer for some people that have credit problems. Debt consolidation involves borrowing enough money from one lender to pay off all your debts.

When you consolidate:

-You make only one payment each month, to the new lender.
-You will usually pay out less money each month.
-You usually pay more money in finance charges to consolidate debts.
-You make payments longer.

Before you decide to consolidate your debts, look at your other choices:

-Talk to your family members about the problem. See if you can lower expenses or raise income.
-Seek financial counseling (on campus, or elsewhere). You can go to a credit counseling service. They may know a solution you have not thought of.
-Call your creditors to see if you can work out some change in monthly payments that will ease the pressure. The creditors may be willing to adjust payments.

*If you do decide to consolidate your debts, shop around. There are different places you can go, such as banks, credit unions, and finance companies.

Before you choose whom you will get the loan from, find out the following information from each place:

-The charge for the service.
-The annual percentage rate (APR).
-The amount of your monthly payments.
-How long you must make payments.
-What the total amount is that you will pay.
-What happens if you miss a payment.
-What happens if you are late making a payment.

Potential Problems:

Making only one payment a month may make you think you are better off than you actually are. You may be tempted to buy something else on credit, and before you know it you could have an even worse problem: too many bills with too little income.

Finally..

Be sure to seek out your on campus financial counseling center if one exists, or a counselor at the financial aid office to see what your options are. Generally your original lender who issued your loans will most likely be the one to consolidate your loans because they don't want you taking your borrowed money elsewhere. Keep in mind that now is a good time to consoldiate while interests are low.

Creditor Harassment

2007-06-18T12:39:00.000-05:00

Not many people know this but if a creditor calls you and uses aggressive tactics with you and threatens you, it is against the law. They are liable under the Fair Debt Collection Practices Act (FDCPA). It's a federal law that protects consumers from harassment or threats made by creditors and prohibits creditors from making false statements.

The Federal Trade Commission(FTC) is a place to go to file complaints against harassing creditors.Click here to access the FTC website and learn more about debt collection and the complaint process.

Get Smart Debt Solutions Now!

Credit Card Survey

2007-06-17T16:48:00.000-05:00

Check this survey out conducted by Consumer Action, it contains a wealth of information:

Credit Card Survey 2007

0% APR?

2007-06-17T13:55:00.000-05:00

One tidbit of information that you should know, is the the reality of a "0% APR". What does it mean? You probably have seen 0% APR displayed on solicitations in your regular mail as well as in your email inbox. Your APR is simply the interest you pay on a loan or credit card. You have to pay attention to credit cards because of the way your interest payments are calculated. The 0% APR is the promotional rate. Your new APR will become active as soon as the promotional period has ended. The 0% APR is not necessarily a bad thing and you can make it work for you if you don't let your spending get out of hand and if you make your payments on time. Unlike traditional loans, instead of interest being compounded monthly and having those payments eventually go to the principal amount, credit card payments are computed on an average daily balance and compounded daily. An explanation of how your payment is calculated is outlined in a disclosure given to you by the credit card company. Each credit card issuer's terms are different. "0% APR" could mean you pay no interest for 6 or 12 months, however you are still paying minimum payments per month. If you fail to make these payments on time then the contract rate will be applied and can be as high as 29.99%.

Also, 0% APR promotionals generally apply to purchases you make or balance transfers from another credit card or loan balance. Be sure to understand which one it applies to.

Also check out the Federal Reserve website as well. It has published some really good information on "Choosing a credit card".

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