Student Loans & Credit Cards – Worry Less! Study More! First Time Credit For Academic Success!

May 20, 2012 credit

Students have the great opportunity to establish credit by securing exclusively offered Student Credit Cards. These specialized credit programs offer young students the opportunity to build a solid credit foundation as well as take advantage of special student incentives offered by lenders. Most importantly these cards offer individuals a proper introduction to the world of credit, and are a great ‘first time’ line of credit for students.

The majority of these credit lenders also provide custom guides outlining the importance of credit rating, good standing credit, tips on managing debt, and other great resources beneficial to those securing credit for the first time.

Many student credit cards also offer special rewards or benefit programs that provide discounts and savings for the things a student may need the most. This includes but is not limited to discounts on textbooks, gas, computers, clothes, travel, and even food & groceries! Selecting the best credit card with the right rewards program can provide the savvy students amazing savings so that less time is spent worrying about their financial situation, and more time can be focused on academic studies!

Like any line of credit, is it critical for every individual to properly assess their unique situation and educate themselves on the various options available before committing to any one solution. What may work best for your roommate, may not be the ideal choice for you, so take advantage of the information and resources available online and explore every option before making a final decision!

Here are some helpful tips to keep in mind when jumping into your first credit card!

1) Spend within your budget. Resist the temptation to purchase something you may not really need and you might not be able to ‘afford’ without using your credit card.

2) It is advised that you do not exceed 3/4 of your available credit line. This will give you the most benefit each month on your credit report.

3) Pay your credit card bills on time! As obvious as this may seem, it is probably what got many of us into trouble to begin with. Make your payment on time, and if possible submit more than just the minimum payment.

4) DO NOT hold more than two lines of credit at any given time. At this point, you may become overwhelmed with debt and so begins the dark path of drowning in debt!

Don’t stop now. Learn more about the many ways you can secure a Student Loan or Credit Card! Information & Resources await you at the Student Loan | Credit Card Center [http://www.badcreditloanzone.com].

[http://www.badcreditloanzone.com]

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Credit Repair – How to Raise Your Credit Score

May 20, 2012 credit

Get the Big Picture

Do you want to have fantastic credit scores? Would you like to be approved for the lowest cost financing available when you purchase a home or an automobile? If so, you need to understand the factors that have the greatest impact on your credit scores – and how to control them. Credit repair can make a dramatic difference in your life; just take one step at a time.

Open New Credit Card Accounts

Credit scores take both the positive and the negative items on your report into consideration. Effective credit repair requires a balanced approach focused on cleaning up negative issues and building positive credit simultaneously. If you don’t have any open accounts in good standing you should open a couple of new accounts as soon as possible. Secured cards are an excellent option if you have had credit problems in the past.

Watch Your Balances

Credit cards are the most powerful credit repair tool available. But they can be your downfall too. It’s all about your balances. High balances can ruin your credit scores, while low balances can propel your scores to new heights. The FICO scoring model recognizes five different balance-to-limit ratios which measure the relationship between your balance and your high credit limit. The ratios are 20, 40, 60, 80, and 100 percent. Pay your balance down to below 20% of your high credit limit and watch your scores take off. But let your balance run up to the max and you may see 100 points come off your score. Just remember, the lower the balance the higher the score.

Avoid Store Cards – Sort Of…

Everyone loves a discount. So when the salesperson offers a discount if you open a new store card you may be tempted. Sometimes it makes sense. But if you plan to apply for a loan anytime soon you should decline the offer. Store cards have a funny way of sending your credit scores into a nose dive. This is because they usually involve a combination of an inquiry, a brand new account, and a new balance equal to the high credit limit. These three things combined are deadly. On the other hand, there is nothing wrong with saving money! Just make sure that you don’t need your credit score to be at its best in the next few months.

Clean Up Your Student Loans

Unlike other forms of debt there is no statute of limitation for student loans. This means that they are collectible forever. And the longer you ignore them the worse it gets. Are you behind on your student loans? Do something about it right now. But make sure you know your rights! Call the Student Loan Ombudsman Office at (800) 557-2575. They are there to help you understand your options. They will explain how you can rehabilitate or consolidate your student loans. They will also explain that you have the right to affordable payments and even deferment if you cannot afford repayment at this time. Pick up the phone. Include your student loans in your credit repair effort today!

Remove Old Collections

Are there collections on your credit report? Too many people make the mistake of believing that if it is on their report it is correct. Credit repair requires a healthy dose of skepticism. Don’t believe your eyes. Collections change hands regularly. Did you know that collectors who do not currently own the debt are not allowed to report it? There is a high probability that older collections should not be on your credit report. And if you see more than one collection for the same debt, at least one of them should not be there. Challenge those collections. Watch your scores take off.

Call Mom – Last Chance for Authorized User Accounts

Want a quick increase in your credit scores? Here is an easy credit repair trick. Call mom, or dad, or anyone you know that has excellent credit. Have them contact two of their credit card issuers and add you as an authorized user. You don’t have to use the card, and your donor can remove you at anytime. Within two months the account will appear on your credit report and your credit score will enjoy the benefit of your donors perfect account history for that account. Just keep in mind that this is not a long term fix. The new FICO scoring model has eliminated this loophole and the three credit bureaus will eventually adopt the new model. But it’s still good credit repair medicine!

Confused? Hire a Professional

Credit repair can be confusing. But there is no need to struggle along on your own. Pick up the phone and call a few credit repair services. Choose one that you are comfortable with and let them take over. A credit repair professional will make sure that everything possible is being done to clean up your credit report and optimize your credit scores. But don’t wait. The sooner you start the sooner you will be able to experience the benefits of your credit repair effort. Good luck!

Copyright © 2007 James W. Kemish. All Content. All Rights Reserved.

Jim Kemish, a nationally recognized credit repair and restoration expert, is the president and founder of Sky Blue Credit, a leading credit repair service since 1989. Jim is also the president of Power Mortgage, a Florida mortgage company based in Delray Beach, Florida.

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Turn Your Credit Card Into A Check?

May 20, 2012 credit

Recently, before my granddaughter left for university, we chatted about credit cards: uses, abuses, mixed messages, and the alternative she has been practicing from pre-teen. Prior to our discussions, I reflected on current economic challenges and the credit card deception: society tells students they need credit cards (“cards”) early to build credit ratings for early, significant credit access. Parents agree, don’t teach or practice responsible card use, children use cards like parents, and the debt cycle traps them.

Sadly, we don’t see contradictions in our views on credit. Earlier sub-prime debacle resulted from financial institutions’ seeking out, and then lending funds to people with bad credit! Lately, have you listened to advertising for vehicles, furniture, appliances, and other consumer items? To retain or grow sales, merchants offer credit to almost anybody! Christian ministries, too, have entered the fray: they encourage donors to give on credit, irrespective of ability to pay!

New Credit Card Regulations

Introduced in the USA in 2009, and Canada in September 2010, they require greater card issuers’ transparency to protect card users. Canadian regulations mandate an effective minimum 21-day interest-free grace period for customers paying full balance. But my favorite rule that applies in both countries require credit card statements to show repayment period if consumers paid monthly minimum payments only. This will shock some users who will learn that their monthly payments amounts to a life, debt-sentence!

Prudent Credit Card Use

Will regulations help? Probably not. Card users need behavior change to use credit cards wisely: a return to old-fashioned save-then-buy. Prudent card use pays full balances monthly; misguided, expensive use carries monthly balances. Perhaps a first step to stop using credit for consumer items might be a prepaid credit card. Banks offer them, loaded with funds–essentially they are cash cards–no credit checks needed because the card must be backed by cash equivalent to each buy. If folks want to take advantage of the minimum 21 days credit (in Canada), the next step is to turn the credit card into a check. Here is an approach:

Get a low limit card, say, $500
Open a bank account, deposit $500
Arrange with your bank to pay from that account on due dates, full monthly card balance
Monthly, top up your bank account with the amount the bank withdraws to pay the previous month’s charges

In month one, if you charged $300, which the bank paid from your account early month two, leaving $200, deposit $300 to restore the balance to $500. Repeat the cycle. Linking your credit card to a bank account from which the bank pays the full monthly balance was standard practice in Japan when I lived there in the mid-90′s. Today in Canada, if requested, most banks will agree to this procedure, but they are unlikely to offer it.

Beware; unless you distinguish the two parts to each spending decision–establishing the need, and then deciding how to pay for the item–merchant’s seductive financing offers will trap you. As well, unless you work with a budget, or spending plan, you will spend more than if you used cash–estimates range up to 30% more! If you don’t plan buys, and you don’t to pay the full monthly balance, you can’t afford a credit card; use cash or a prepaid card. Do you know how much interest on credit card debt you paid last year? This year to date?

Copyright (C) 2010, Michel A. Bell, Ontario, Canada.

If you want to learn more about turning your credit card into a check, and to stay on top of monthly spending, visit, http://managinggodsmoney.com.
Michel A. Bell is an author, speaker, founder and president of Managing God’s Money and a former senior business executive devoted to help folks live a debt free life style.

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A Credit Dilemma – Young People and Credit Cards, the Other Side of the Story

May 19, 2012 credit

We have all watched the television talk shows as one guest after another relates appalling stories about their credit card situation. “I owe more than $22,000 on my credit cards” one credit card debtor mentions. Another guest who confesses that she enjoys treating her friends to expensive gifts and other luxuries admits, “I have totally trashed my credit rating. And yet another state she has her credit debt situation under control, while at the same time she is attempting to manage over $50,000 in credit card debt, spread out on 13 different credit cards, on a low level junior executive salary.

And to top it all off, these and the other individuals on the TV talk show, who are sharing their credit card horror stories, are college students who are still in their late teens and early 20s. A few of them have already declared bankruptcy. For many of them, their first introduction to credit cards was at the national card company sign up tables during college registration. A recruiter, also on the panel states, as far as national credit card companies are concern, students are just bait, and the card companies are the sharks. He went on to say that each recruiter earns points or each student they are able to get to sign up for a credit-card, therefore, they are not beyond slightly bending the truth to convince the student.

These young people learned the facts about using credit cards the hard way. Unfortunately that is how most people learn…the hard way.

Credit cards are excellent conveniences when used correctly; however, if they are allowed to get out of control they become a burdensome problem that can keep you captive for many years to come. Credit cards are a short term debt instrument however the vast majority of its users treat it just the opposite. The interest rate charged and the additional associated fees that are tacked on quickly accumulate and exceed the actual principal debt in a very short period of time.

In order to correctly use your credit-card, it is important to be realistic about your expenditures. If you are using your credit-card to cover routine expenses such as gas for your vehicle, eating all of your meals, making small daily purchases, etc, you are living beyond your means. You must discontinue this immediately.

It is also important for you to understand the trap of the credit-card minimum monthly payment. Here is an example; if you make only your minimum credit card payment, which is generally around 2%, and let’s say it is on a balance of $2,000, so you will be making a monthly payment of approximately $25, at an average interest rate of 18%. It will take you nearly 16 years to pay off the balance, and during that time you will have paid $3,328 in interest charges. It is always best to make a monthly payment which exceeds the minimum monthly payment and even better, to pay off the entire debt as soon as possible.

It is foolhardy to add or accept more credit-cards to your collection when you can not keep up with one credit-card. More credit cards do not mean more money is coming in. More credit-cards mean more money will be going out, and for a much longer period of time.

Credit is a privilege which comes with responsibility. Learning to use credit wisely is important. Credit-cards make these young people spend more money than they can afford to pay back. Proper money management through budgeting is the correct way to handle and control credit-card debt. If these young people fail to become credit wise, they will soon discover they have ruined your credit rating which can hurt their ability to get a place to live, buy important necessities on time, and even get a job. Make the right choice, use your credit wisely.

Gharold, author of Unclaimed Money Finders [http://unclaimedmoney.infogine.com/] has published numerous other opinions you may or may not find interesting at According to GHarold.

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7 Key Benefits to Using Prepaid Debit Cards

May 19, 2012 credit

Prepaid debit cards are similar to credit cards, but they require upfront collateral (cash) before you can use them. There are actually several benefits that come with using them versus a traditional credit card.

1. Perfect for College Students

One of the easiest and most convenient ways to provide money for a student is with a prepaid debit card. You can set monthly limits that get reloaded at the end of the month, helping the student operate within the budget you specify.

2. Safer Than Carrying Cash

Like credit cards, if your it is stolen, you are protected. If someone takes your cash, you are not!

3. Helps You Better Manage Your Budget

Since a  debit card isn’t a credit card, it won’t allow you to make purchases on credit. Thus forcing you to stay within your set budget.

4. No Credit Check or Application

A prepaid debit card, like the kind you can get from ACE Cash Express, uses upfront collateral, so there’s no need for credit checks, long applications to fill out, or the concern of being denied an account because of bad credit.

5. No Credit Card Bill

There’s never a credit card bill with a prepaid debit card, because it’s already been paid for. Prepaid credit cars help you only spend what you have.

6. Accepted Everywhere

Prepaid debit cards utilize either Visa or MasterCard, so they can be accepted by any merchant that supports those electronic payment networks.

7. Get Cash from any ATM

You can use it at almost any ATM to withdraw cash.

Tushar Mathur writes regularly about Personal Finance and Investing at Everything Finance (http://www.everythingfinanceblog.com). He also writes about Investing in India at http://investmoneyinindia.com

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