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Credit Cards for College Students – How to Build Credit Early

Credit Cards for College Students – How to Build Credit Early

Credit cards for college students are available online. The downside is that card issuers realize that most students do not have a direction established. This is true since if you go to college and ask students what are their goals, most will say, I haven’t decided yet, i.e. if they are just starting out in school. The good news is, there are great ways for them to build credit early.

Card issuers are aware of this because at one time they were in college too. Therefore, credit cards for students often have high-interest rates, annual fees, as well as other fees attached. If you have good credit, likely you will find a low rate card. If you are searching for credit cards for college students, it is wise to go online, search, and compare and contrast each card. This will give you an idea, of what the cards offer, as well as what the benefits from each card offer you.

The Internet lists several cards that are best suited for college students. The cards available come from leading card issuers and getting one can help them build credit early. The search will help you save money and time while guiding you to the best cards.

Card Offers

Several of the top student credit cards will offer 0% APR up to six months on balance transfers, cash advances, and purchases, providing you do not default on your credit card payments. I will quote the “0 liability,” since this is important. Some credit card issuers will charge you for unauthorized charges made on your card. I recommend that you check the liability agreement to weed out clauses or stipulations, making sure the 0% fees are legit. Some cards have no annual fee, and you will have the ability to manage your accounts free online at any time, and best of all you will not need a cosigner, and only required to have a minimum income. The regular APR’s on student credit cards are a bit steep, however, if you pay the balance off before the grace period ends, the benefits will make up for the interest rates.

The downside is most students have not established credit history. You might notice that each of the cards listed on some sites require that you have good or very good credit. This can set you back and force you to look somewhere else for credit cards. What do I do next?

Searching for Credit Cards While You Build Credit Early

Sometimes if you scroll down the pages, you will notice to the left side of the page or sometimes the right side of the pages, additional links are available. Click on the student links and review the credit cards offered. Second, never give up. Simply because this is a good credit offer, if you do not have a good credit history, it is possible you can still get the card. You might have to pay higher interest rates at first, or possibly an annual fee, still you might be eligible for a college student card of your choice.

Credit Repair Terms – From C to A Paper

Credit Repair Terms – From C to A Paper

If you’ve ever applied for a home loan with less than stellar credit, you know how much extra you have to pay. Even though it can take some time, knowing some of the most important credit repair terms is definitely worth pursuing.

Credit Scores

When considering your application for a home loan, a financial institution looks at your credit and assigns it a score. In the industry, these scores are loosely referred to as a type of paper. The best scores equate to “A” paper, while lower scores are graded just like in school, to wit, “B”, “C”, “D” and “Oh, my god” paper. If you have an “A” paper, you can expect to get the best deal, while lower grades are known as sub-prime borrowers.

Credit Repair

Credit repair is important because even small movements in your credit score can move you from one score to the next. If you move from B paper to A paper, you will save thousands of dollars in lower interest rates. A credit score of roughly 680 is considered to be A paper. If you have a score of 670, credit repair can bump you to 685 and save tens of thousands of dollars. In short, you want to make the effort to repair your credit whenever possible. Don’t just sit and suffer from sub-prime loans.

To repair credit, there are simple credit repair terms to learn and steps that can be taken. Let’s take a look at some.

Credit Card Debt Ratios

Believe it or not, you can improve your credit scores by simply moving credit card balances around. A credit card with no balance actually doesn’t help you much if you have another card that is maxed out. If you shift the debt evenly among all credit cards, your credit score should increase. This has to do with something called your ratio of debt to available credit. It is a loophole of sorts, so take advantage of it. If debts are bogging you down, a repair service can surely help!

Closing Accounts

Don’t! Many people will close a credit card or other borrowing accounts when they are done with them. This is a huge mistake. First, it hurts you because you’ve reduced the available credit portion of your debt to available credit ratio. Second, you lose a record of your long-term credit payment history for the account. Lenders like to see these, so suck it up and keep the account open.

Inquiries

As strange as it sounds, inquiries on your credit report hurt you. Try to eliminate these by challenging them through the Fair Credit Reporting Act and limiting the credit applications you pursue. You can challenge inquiries by ordering copies of your credit reports and following the instructions on the report. Make sure to do this for all three credit reporting agencies – Equifax, Experian, and Transunion.

Check Your Report

The big three credit agencies must report to Congress each year. Each year they report an astonishing number of problems with their systems. This can affect you since accounts will appear that are not yours. If these accounts have problems, your credit score goes down. Make sure you check your report before applying for a loan. You want to deal with these issues before you are in escrow.

Borrowing large sums of money for a home loan can be intimidating. Avoid acting like a dear in the headlights. Deal with your credit issues and save yourself thousands in payments.

Credit Card Report Questions And Answers

Credit Card Report Questions And Answers

The Fair Credit Reporting Act (FCRA) promotes the accuracy, fairness, and privacy of information in the files of the nation’s consumer reporting companies. The Federal Trade Commission (FTC) enforces the FCRA with respect to consumer reporting companies. Recent amendments to the FCRA expand consumer rights and place additional requirements on consumer reporting companies. Businesses that provide information about consumers to consumer reporting companies and businesses that use credit card report also have new responsibilities under the law.

Here are some questions consumers have asked the FTC about consumer reports and consumer reporting companies, and the answers. If you have more questions about your credit card report, feel free to contact us for more information.

Q. Do I have a right to know what’s in my report?

A. You have the right to know what’s in your credit card report, but you have to ask for the information. The consumer reporting company must tell you everything in your report and give you a list of everyone who has requested your report within the past year – or the past two years if the requests were related to employment.

Q. What type of information do consumer reporting companies collect and sell?

A. Consumer reporting companies collect and sell four basic types of information:

  • Identification and employment information: Your name, birth date, Social Security number, employer, and spouse’s name are noted routinely. The consumer reporting company also may provide information about your employment history, homeownership, income, and previous address, if a creditor asks.
  • Payment history: Your accounts with different creditors are listed, showing how much credit has been extended and whether you’ve paid on time. Related events, such as the referral of an overdue account to a collection agency, also may be noted.
  • Inquiries: Consumer reporting companies must maintain a record of all creditors who have asked for your credit history within the past year, and a record of individuals or businesses that have asked for your credit history for employment purposes for the past two years.
  • Public record information: Events that are a matter of public record, such as bankruptcies, foreclosures, or tax liens, may appear in your report.

Q. Is there a charge for my report?

A. Under the Free File Disclosure Rule of the Fair and Accurate Credit Transactions Act (FACT Act), each of the nationwide consumer reporting companies — Equifax, Experian, and TransUnion — is required to provide you with a free copy of your credit report once every 12 months, if you ask for it.

Q: How do I order my free report?

A: The three nationwide consumer reporting companies are using one website, one toll-free telephone number, and one mailing address for consumers to order their free annual report. To order, call 1-877-322-8228, or complete the Annual Credit Report Request Form and mail it to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. Do not contact the three nationwide consumer reporting companies individually. You may order your free annual reports from each of the consumer reporting companies at the same time, or you can order from only one or two. The law allows you to order one free copy from each of the nationwide consumer reporting companies every 12 months.

Q: What information do I have to provide to get my free report?

A: You need to provide your name, address, Social Security number, and date of birth. If you have moved in the last two years, you may have to provide your previous address. To maintain the security of your file, each nationwide consumer reporting company may ask you for some information that only you would know, like the amount of your monthly mortgage payment. Each company may ask you for different information because the information each has in your file may come from different sources.

Q: Are there other situations where I might be eligible for a free report?

A: Under federal law, you’re entitled to a free report if a company takes adverse action against you, such as denying your application for credit, insurance, or employment, and you ask for your report within 60 days of receiving notice of the action. The notice will give you the name, address, and phone number of the consumer reporting company. You’re also entitled to one free report a year if you’re unemployed and plan to look for a job within 60 days; if you’re on welfare; or if your credit card report is inaccurate because of fraud, including identity theft. Otherwise, any of the three consumer reporting companies may charge you up to $9.50 for another copy of your report within a 12-month period.

Credit Bureau Reporting, a Bonus of Easy Approval Cards

Credit Bureau Reporting, a Bonus of Easy Approval Cards

Easy approval cards represent a step in the right direction for the many of us who have pretty bad credit. These cards have a significantly lower set of standards for an applicant in order to be accepted and are available from several issuing companies. They also have several features that, if utilized properly, can help move your credit score in the right direction.

As one would expect, though, these cards come at a cost to the applicant in comparison to other cards that are a little more challenging to acquire. Many have an ‘account setup’ fee, and nearly all of them have an annual fee as well. Easy approval cards typically have a low credit limit, usually in the mid to low hundreds, as well as varying interest rates. Some advertise rates as low as 9.9%, though to qualify for such an APR your credit would probably have to be pretty good, likely good enough not to need an easy approval card. Others advertise APRs as high as 19.75%.

Very few, if any, have a low introductory period with their interest rates, so you’ll dive immediately into whatever APR you get assigned. There are a few easy approval cards that allow balance transfers, though most do not, and you can expect a notable balance transfer fee on the cards that do. Although you could consider the fees as a sub-prime debt consolidation cost, they can put a dent in a tight budget.

Not deterred or scared off by all that? Good. There are some upsides to easy approval cards if your credit has fallen as far and as fast as a meteor. If you can keep up with the payments and the various fees, most cards report to several credit bureaus, which means that if you can play ball, they will tell the people that can make your credit better. Go for an easy approval card if you can be a conservative spender for a while.

One thing to remember: do not, under any circumstances, get an easy approval card if you can not make payments on time. Say you’re rolling down the hypothetical financial hillside, taking out credit card after credit card to pay off bills and your old cards. Your credit is already ridiculously bad, so you figure ‘hey, I can get one of these cards to stay afloat a little while longer!’ This is a mistake. With the higher interest rates and fees, if you default on one of these, you’ll be blown back into the Stone Age by your bill. And don’t forget they report to credit bureaus monthly. You see how ugly this could get.

The point I’d like to make is that easy approval cards are risky, but can be beneficial if you pay close attention and don’t do anything crazy. Keep in mind if you need one, your habits with money are probably not the best, so you need to reform a little before you take one of these on. If you can stay on track for a period of time, the financial rewards of an improved credit rating will greatly offset any expenses you incur while digging yourself out of the bad credit pit. Contact us today if you need help with getting easy approval cards!

College Credit Cards – Building A Good Credit History At An Early Age

College Credit Cards – Building A Good Credit History At An Early Age

College credit cards are intended specifically for students who normally would not qualify for regular credit cards, as they do not have a steady income or a credit history. As a student, it is a good idea to establish a first-rate sound credit history at an early age, which would help you get a regular credit card in the future, regardless of your employment status.

College Credit Cards Versus Generic Credit Cards

In theory, college student credit cards are identical to regular credit cards. However, these types of credit cards are meant for college students who do not have a previous credit history. Hence, these cards have more restrictions or conditions than the generic cards. The top three restrictions include:

– Co-signature from the parent or guardian at the time of application
– Lower credit limit (Example: $500 to $1000)
– Higher interest rates than traditional credit cards: Normal interest rates on these cards are 16-18%

Advantages of a College Credit Cards

A college credit card has become a necessity for most students. The advantages are many provided you understand how the credit card works and use it with caution. Students, especially in the United States, are prolific users of this type of credit cards. This is primarily because it gives them great flexibility to manage their credit.

Students can use these cards to pay their tuition fees, to rent a car, or to fill gas. In fact, there are certain credit cards that offer low-interest rates to students who maintain good grades. These cards are also packed with rewards and benefits. They can help students to learn and manage their finance at a young age.

A college credit card can also be a prepaid one, with a ceiling on the credit limit. This ensures that the student does not overspend and it also helps parents keep an eye on their children’s spending behavior.

Characteristic and Features of College Student Credit Cards:

There are many college student credit card options from Citi, Discover, and Chase. Apart from these, there are many pre-paid card options. Most of these student cards have many similar features including:

– 0% APR for the initial period of usually 6 months on both purchases and balance transfers (typically)
– No annual fee, at least for the first year
– Online account management at no extra cost

While many of the above characteristics are also applicable to many traditional more generic credit cards, there are certain distinctive features that make the credit card stand apart including:

– 0% liability for any unauthorized charges on the account
– A good GPA helps earns points for the cards
– Theft and fraud alerts

It is a good thought for students to have their own college student credit cards. However, it is important to understand that, at an early age, bad credit could have horrible consequences. Parents can assist their kids in choosing the best credit cards based on their child’s spending behavior and repaying capability. College student credit cards promise financial freedom at a young age if they are used judiciously.

The Pros and Cons of Prepaid Credit Cards

The Pros and Cons of Prepaid Credit Cards

Most people agree that prepaid credit cards definitely help them in a lot of ways. Ever since the introduction of the technology of this plastic money, more and more people want to apply for a credit card. With only a plastic card, you can have different opportunities for the things and items that you want to purchase in the market. Even if you do not have a lot of cash at hand, you can simply use your credit card to buy the things that you want. Moreover, since you do not have to carry a lot of cash all the time, it also saves you from the possible robbery in the streets.

Advantages Of A Credit Card

Having a credit card at hand is indeed advantageous; however, it also has its downsides. A credit card is truly a big responsibility especially if you are only starting on building up your finances. Since credit cards give you the chance to buy now and pay later, it gives you a sense of assurance that you are financially stable today. However, as you purchase more items, so does your debt accumulate. It means that after the purchase, you then have to deal with credit card bills that may tell you have already spent the maximum restraint on your credit card and that you have to pay on the given deadline. But what if you cannot afford to pay on time?

Prepaid Credit Cards as an Alternative

While credit cards may be a great tool for purchasing, another type of credit card, the prepaid credit card also works wonders. A prepaid credit card works just like a normal credit card but the difference lies with the payments that you are giving. This type of credit card already has a preliminary balance within it, so if you want to use it to purchase something, the value of the item will be simply deducted for your current account. This gives you a lot of benefits since unlike credit cards, you can absolutely track the deductions that are happening in your prepaid credit card. Furthermore, you can see just how much money you are spending each day, and thus giving you an opportunity to properly plan and budget your finances.

Pros of a Prepaid Credit Card

In addition, since you are aware of your balance, the only money that you can spend, then you are aware that any unnecessary spending will give you a tremendous deduction in your account. This type of credit card truly works for anyone who is too afraid of taking the risk of owning a credit card. Also, this type of credit card is great for people who want to budget their money well.

Cons of a Prepaid Credit Card

However, there are also cons with having a prepaid credit card. Having such a card means that you have deposited a certain amount of money into your account so that you can spend it later on. But the problem will arise if you have no possible resources to deposit to your account, thus making your prepaid credit card temporarily halted. To prevent such a thing from happening, you have to make sure that you plan very carefully your finances so that a certain percentage can be allotted for your credit card. As long as you are being thrifty with your decisions, then your prepaid credit card will definitely work great for you.

Need help find the best credit cards for you? Just answer a few questions and we’ll narrow the search for you.

The Marvel Of A Prepaid Credit Card

The Marvel Of A Prepaid Credit Card

Most of the time, people think twice before applying for a credit card especially if they are still not sure if they can handle accumulating a certain amount of debt for a time. Although credit cards can pose different advantages for their users, they also have their own disadvantages. These disadvantages occur if the person who owns the credit card fails to pay off his debt regularly and also if he has accumulated a lot of debt over the long run. The possibilities with a prepaid credit card are indeed endless, but not too many realize that also limitless is the possibility of you not being able to handle your finances and your credit properly.

Rejection Due To Bad Credit Standing

In some instances, people also get rejected to acquire a credit card because of bad credit history. It may be caused by previous debts coming from other banks or institutions. Also, perhaps it can be brought by existing credit cards that are yet to be paid off. Whichever may be the reason, applying for a credit card is indeed a difficult task especially if you have already made a bad history with your previous ones. However, there is one type of credit card that enables you to have a credit card without the risk of accumulating future debts.

Prepaid Credit Cards

This is in the form of a prepaid credit card. Basically, a prepaid credit card is a typical bank account that lets you deposit money into it. After acquiring such an account, the bank then gives you a prepaid credit card which you can use just the same way as you would with a normal credit card. The difference is that with a prepaid credit card, you are spending your own money at your own will. If you decided to purchase a certain item on the market, you will use the credit card as payment and the amount that you have purchased shall be deducted from your current bank account.

Advantages Of Prepaid Credit Cards

Another marvel of the prepaid credit card is that since it is not paid after the purchase, it absolutely holds no interest charges for you. You do not have to concern yourself with monthly bills and additional fees since the transactions are made directly to your bank account. In essence, this type of card works just as much like a debit card that is linked to your savings account. Having a prepaid credit card can definitely help you in limiting your expenses which means that you can be more practical with your decisions and purchases. It helps you predict just how much you can still spend over a given period of time. It will help you, in the long run, become a much thriftier and wiser person in terms of your finances.

Advantages Far Outweigh the Disadvantages of Having Prepaid Credit Cards

Aside from these, not only is a credit card able to purchase items on the market but it can generally serve as a credit card in reserving for rental rooms, hotels, and cars. And since your payments are done outright, you do not have to worry anymore about bills and interest rates. Indeed, having a prepaid credit card has more advantages than the risks that it may present in the long run.

Reward Credit Cards – Benefit While Building Credit

Reward Credit Cards – Benefit While Building Credit

Many cards available online are offering rewards, simply because it is the only way for card issuers to keep up with their competition. The cards available today are for students, consumers, business owners, and more, and while each card has its own style, the rewards are similar, yet contrasting. To learn more about reward credit cards, utilize the Internet where you will find a variety of card offers to compare.

Various reward credit cards online provide a way for cardholders to earn rewards, as well as discounts at select merchandisers and retailers. The rewards and discounts are available per purchase made on the card. Some credit card issuers will offer a surplus of points on initial purchases. Most credit card sites have taken special care to locate the leading card issuers, credit cards, and more. Some of the very best review cards are available at the secured sites.

Credit Card Offers

A typical reward credit card might offer 0% APR on balance transfers for up to a year as a “teaser” and some may even include 0% APR on purchases as well, although this particular feature is somewhat rare. Many reward credit cards will feature bonus points from making purchases at certain retailers such as restaurants, gas stations, office supply stores, and car rental agencies. Like many of the cards online that offer rewards, you can take advantage of billing and reports or reimbursements, viewing the information online. The best reward credit cards will also offer at least a competitive ongoing APR as well.

A few reward credit cards will give cardholders up to 5 percent cash back on charges made at supermarkets, gas stations, and drugstores, amounting to a pretty significant discount and subsequent rebate on purchases. Typically, cardholders might also be able to earn a smaller rebate percentage at a wider range of retail outlets, providing yet another incentive for purchase activity. Cardholders should make sure to find out what the maximum rebate limit is for the offer prior to applying. Typically, these cashback rewards tend to be capped out a maximum of $300 to $500 in cash benefit per year.

Low Rate Cards

Some of the best reward credit cards also feature very lowest interest rates. Certain reward credit card offers will provide introductory APRs on purchases for up to a year as well as 0% on balance transfers for up to 15 months. You will get competitive ongoing APR’s and you’ll receive generous credit lines up to $100,000 in some instances. The card issuers will also provide cardholders with options on redeeming their rewards points in either cash or travel rewards, offering great flexibility.

Reward credit cards are available everywhere, yet the Internet is one of the areas that offer security, as well as an area to search and compare some of the best reward credit cards online.