December 20, 2008
Student Credit Cards And Students
By Student Credit Finance
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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December 16, 2008
Chose The Credit Card That Will Benefit You
By Student Credit Finance
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 the rest of this entry »
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December 12, 2008
Debt Education
By Student Credit Finance
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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December 10, 2008
Credit Card Mistakes
By Student Credit Finance
“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.
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December 5, 2008
Is Your Credit Score Important To You?
By Student Credit Finance
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.
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November 30, 2008
Teach Them
By Student Credit Finance
Let’s face it, in the world we live in today we must have credit. For this reason it is OK to let you senior high school er or college student get that college student credit card. Moms and dads, in our day our parents would not even think of that as an option. It would have scared them to death. I do not know about you but, this might be why I have had a difficult time with credit from time to time. I really was not taught how to handle it properly.
Parents unite, let us teach our kids the right way to use credit. The perfect start is a college student credit card. For one, they are very easy to obtain. The do not require a credit history or a minimum monthly wage. For these reasons, as long as a student is enrolled and attending school, they will probably be qualified for a college student credit card.
Encouraging this, rather than telling them they will just mess up would be a good way to go. You do not want them to go behind your back. If they do, you will not have the opportunity to teach them a thing or two about credit. So, let’s just encourage this and be happy when they receive it. Then let the teaching begin.
What you can teach them at this point is how to use this new and very exciting college student credit card. Teach them that it is for emergencies, and that the pizza with the guys is not an emergency. An emergency is when the car breaks down or they need some unexpected supplies for school.
Also teach them how to pay the bill. The bill must be paid every month on time and if possible paid in full. Make them understand that if they just make the minimum payment every month, pretty soon they will have the college student credit card at the maximum limit and it will never get paid off. Let them know how that will hurt them, because you and I both know it will.
There is so much to know as well as teach you college student about credit. If it is a difficult subject for you, go on line and do some research yourself. You know there are some particulars you know to do or not to do. To fill in the blanks research it. The financial world has changed so much in the last twenty years or so, there is probably something out there you will learn as well. What ever the situation with you and your college student do not let this teaching opportunity slip by. We have a responsibility to teach them what we know, even if your experience was bad, they can learn what not to do from you.
Now is the time to encourage our kids. Encouragement will go a lot further then discouragement. You know if they want it they will get it any way. So, have the encouragement and they will let you given them the so needed advise. Give them a chance, you will be glad you did.
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November 22, 2008
College Student Credit Cards
By Student Credit Finance
Student credit cards and college students should go hand in hand. Why? Because they need to start somewhere. One way of building a young person’s credit history is by obtaining a college student credit card. A young person has to start some where in building there credit for the future, what better way than to apply and receive a college student credit card.
As parents, it really is our responsibility to see to our children’s education in certain matters. One of those matters in my opinion is credit. Typically, this is not a subject they will be able to take in high school so it really is up to us to teach them. Starting with student credit cards is smart in many different ways. For instance, obtaining a college student credit card verses a regular credit card you probably have in your wallet is much easier.
The credit card companies are going to make it easier because they know, first of all, the student is just starting out in the world and probably does not have any or very little credit history. Second, they also realize they are going to school and there income is going to be very minimal. The guidelines for a regular credit card are credit history (good), and a minimal monthly salary. With a college student credit card they look at your credit but generally will not deny you because you have very little or none. They want to get the college students that are just starting out because they can become a very loyal client.
When you give someone a chance in anything and they become successful, the chances are they will be very loyal to you. For this reason, college students are specifically targeted. However, it is up to the parent at this point to teach them how to deal with this type of credit and debt. With no experience at all it could be very costly for the student. Encourage and teach your child the rights and wrongs of financial situations. It will help them all through there lives and only enhance it.
What you need to teach them is how and when to use the credit card. Keeping it as an emergency is a good rule of thumb. You also need to make sure they understand the importance of paying there bill every month on time. This is what will build there credit history in a good way. If you do not pay every month and you are never on time you are just going to build a poor credit history. That is not going to get them the new car or the house they want to by for there family down the road, it will only make it more difficult for them.
They also need to understand that paying the card off rather than just the minimum payment will also be a plus for them. If they just make a minimum payment every month they will be making that payment for years and never pay it off. Look at the interest they are paying. These are just a few general rules someone starting to deal in credit should understand. Helping your child out in these matters is a great start for both of you.
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November 22, 2008
Student Credit Card Interest Warning
By Student Credit Finance
Interest rates on credit cards for college students can get the student in trouble if they are not careful. Building a strong credit profile includes exercising responsible spending habits.
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August 23, 2008
Hello College Community
By Student Credit Finance
Hello College community. Student Credit Finance will assist in giving you helpful tips and educational information regarding credit, spending, saving and loans.
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