The use of cash is beginning to fade away as plastic, in many forms such as college student credit cards, charge cards, and debit cards are taking over during these tough economic times. Read more…

As a college student you need to start thinking about adult things such as credit. For some college students this is something they have been taught about from there parents and they will be successful, usually. Read more…

As a parent of a 13 and 15 year old, I can not imagine the day when they start getting offers for student credit cards. I will probably try to toss them from the mail box before they get a chance to see them. This is probably what many of you parents will think and do once your child gets of age to start talking and making arrangements for college. Scary times. Read more…

College is the last care free step you are going to have before real life begins, or at least it should be. College students should be able to go to sleep each night with the only thoughts of responsibility being the Math exam tomorrow morning. They should still get to live in a world where although they can not afford much more than the occasional late night drive through McDonald’s or downloading the latest hit single, at least they are not worrying about paying a mortgage yet, most forms of insurance, utility bills, or the college student loan that is allowing them to get an education.

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How do you plan to choose the right credit card for you? I am sure you having been receiving all the offers in the mail and seeing them set up at the school trying to get you to sign up. Student credit cards are good financial tools when utilized properly, just make sure you make the right decision when choosing the one you will take. Read more…

Is a college student credit card and your young college student a deadly combination? It does not have to be! If you have done your job in teaching them about credit and debt they will do fine. It is still scary when we think about our children having credit cards and gas cards and all that debt. I can feel your pain.

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“Did you get your student credit card yet? Ya, I did too. Let’s go on a road trip.” Stop, rewind. These two will probably have a tough credit history ahead of them. Why? Because that student credit card is not for a road trip or impromptu vacation. That very precious student credit card you have just received is for emergencies. What are emergencies? Remember last month when you got that flat tire and you had to wait a week before you could get it fixed because you had no money? That was an emergency.

In the young life of a college student it may not be so easy to distinguish between I want and got a have and I really need this for school. I hope you will allow me to offer some helpful advice and tips. You are a college student because you want to learn. Well, set back and listen to an older college student that has been in your shoes and learn from her mistakes.

I remember the first time I received a credit card. They did not offer “student credit cards” in my day so it was just a regular visa or master card. Of course, this was Many, Many years ago. However, the credit game really has not changed all that much. If I knew then what I know now, financially, I really would be much better off. I am not saying I am poor and destitute, but I am saying to this day I have struggles with credit and do not always get the best interest rate on things that really make a difference such as a home. It is a reality that your credit history will follow you. Yes, things do drop off after a certain (long) time frame, but it puts you in this category of thinking. What do you think, “It is already screwed up, and here goes another mistake.” For most of us, we almost always know when we are about to make the wrong decision. You can fill it in your gut. Listen to it.

Now is the time you need to rewind and back up. Yes, you have made a mistake, but do not keep making those mistakes. Give your credit history a chance to recover and move on to the good part. You see, my credit history follows me because that was my frame of thought. It is not now, but I am older and should have learned many years ago. Some people really are thick headed (me). Do not give way to bad self talk (yes, I like Dr. Phil), and talk to yourself like you would to your best friend. We almost always give our best friend the right advice. Do the same for yourself.

As I said, now is a time of learning, there are bound to be mistakes along the way. Just do not get caught up in the “mistake pattern”. As long as you learn from your mistakes and move forward with better decisions it is all good. So what you need to do now that you have received your first student credit card is enjoy the fact that when an emergency does come up, you will be able to take care of the situation and not put your future financial freedom in jeopardy.

As a college student your credit score is probably not as high as you would like it to be, knowing that you have the power to improve it is something you need to remember. The manner in which you have handled your finances plays a huge role in your current credit rating. This being said, if you have healthy finances, you will also have a healthy credit history and score. It does take discipline and dedication, but it is worth the effort, especially when you do reach a credit standing that will allow you to qualify for all types of loans, lower interest rates, and much, much more.  I have outlined fine essential rules you need to adhere to always.

1.    Simply pay your bills on time. – This can be the single most important aspect in determining your credit score, making up 35% of its total. Missing just one payment on any credit card or car loan can take 50 to 100 points off your credit score. If you miss an entire month’s worth of payments, your score will easily drop 100 to 200 points.

2.    Paying down your debt and charge less in the future. – Creditors do expect a certain amount of room (gap) between the amount of debt on your credit card and your total credit limit. The more debt you pay off, the wider the gap and the better your credit score.

3.    Do not automatically close older accounts you have paid off. – In the past this was the way of thinking.  It has since been updated over the past few years The rule of thumb had been to automatically close a zero balance account to improve your score. The strategy now is just the opposite. When you do close an account, you lower the total amount of available credit, which in turn raises the ratio of balances (on your other cards) to credit limits. By closing those older accounts, you may actually be considered less creditworthy.

4.    Try credit counseling. – Legitimate credit counseling agencies can help you improve your credit scores and situation.

A study conducted by the Fair Isaac Corporation, creators of the FICO credit scoring service, found that credit counseling clients were less likely to default on their loans or to declare bankruptcy than other consumers. And because a debt management program does require that you make on time monthly payments to your creditors, it eventually means a faster trip to an improved credit score.

5.    Avoid bankruptcy. – What is the very worst thing you can do to your credit score? Declaring bankruptcy is definitely at the top. It can take 200-300 points (or more) off your score. Those who do file bankruptcy will then find it very difficult to obtain new credit, and once they have it will be at much higher interest rates then before they filed. A bankruptcy will generally stay on a credit report for a very long time, up to 10 years. And during this time it will be seen by everyone from lenders to landlords to employers.  Basically anyone who has access to your credit report.

As you can see, your credit report and score are huge in your financial future.  Starting off and playing the games with the right rules will only enhance your credit worthiness as well as access to the big dreams in life.