http://www.student--creditcards.com Helping students pick a credit card Tue, 01 Jun 2010 02:46:54 +0000 http://wordpress.org/?v=2.8.4 en hourly 1 http://www.student--creditcards.com/2010/05/is-there-such-a-thing-as-good-debt/ http://www.student--creditcards.com/2010/05/is-there-such-a-thing-as-good-debt/#comments Tue, 01 Jun 2010 02:46:54 +0000 admin http://www.student--creditcards.com/2010/05/is-there-such-a-thing-as-good-debt/ I remember one day in my first year economics class at NYU, my professor was talking about deciding to purchase something based on individual preferences and perceptions. He used the example of paying for college, explaining that in most cases it is a good decision to incur the debt of paying for college because it will increase the value of your skills, therefore increasing your prospective income. The future value of that college education would be greater than the debt you would incur in the present – meaning that you could pay off the debt quite easily. He added on to the end, “and NYU students have an advantage because they often have much higher salaries than most.” He described this kind of debt as “good debt,” – an investment.

I loved this. I loved that it justified my decision to take out a giant student loan to go to NYU and live in the big city. I loved that it calmed my anxieties about incurring such a large debt at the young age of 18. But, I kept thinking of how I could have bought a quaint house with the same loan I took out for college, and wondered if it was really the right decision.

What I have learned from reading Rich Dad, Poor Dad, my research and my discussions with my financial guru friends is that a college education isn’t necessarily “good debt.” This concept relies on making an investment that will have high returns in the future – increasing your value and wealth. However, this is an incomplete definition.

The investment should provide you with tools to increase your passive income. The way my professor explained it, you would still be working for a monthly salary, not gaining passive income that would increase your financial stability. Therefore, that debt would still be a liability instead of becoming an asset. Monthly income is not considered an asset.

Now, I am not saying that you shouldn’t go to college. The education you receive can be vital and extremely valuable. But I highly suggest organizing your goals for your career and researching your desired career. How much, on average, will you make? How quickly can you work your way up a pay scale? How quickly would you like to pay off your debt? What kind of payment plan will that require? Does that work with your monthly salary?

The value of your college education should be weighed with your intended career choice. And instead of working to pay off your education, find ways that you can make your college education work for you. Find means of creating a passive income with your talents and strengths. Then, you can pursue your desired career without selling your soul for healthcare or a monthly salary. You can be more selective in which jobs you pursue and have more control over where your career goes.

So, if you decide to go to college, do not simply accept that it is a “good debt.” If you do not educate yourself about your personal finances and find ways to apply your education to build your passive income and financial stability, it is NOT a good debt. It will only remain a liability that influences your choices, both in life and your career.

Why don’t they teach this in college?



By: Jess Shorland ]]> http://www.student--creditcards.com/2010/05/is-there-such-a-thing-as-good-debt/feed/ 0 http://www.student--creditcards.com/2010/05/student-credit-cards-with-no-fees/ http://www.student--creditcards.com/2010/05/student-credit-cards-with-no-fees/#comments Sat, 29 May 2010 01:49:11 +0000 admin http://www.student--creditcards.com/2010/05/student-credit-cards-with-no-fees/
Many times students apply for a credit card and without thinking end up paying a high annual fee. No annual fee is very important to all college students. Keep in mind that the annual fee and interest rates can become outrageous. You find that by paying high interest rates along with a high annual fee that most of your credit limit is used. You need to make sure that does not happen to you. Always check out your contract before you sign it. You need to make sure that the credit card company is offering you 0% APR on purchases and balance of transfers for at least six months. You should also try to get your credit card with no co-signer involved. Whenever a co-signer is required then you are not getting credit for your payments but your co-signer is the one who gets credit from the reporting credit bureaus.

Your first credit card and your pay history are very important to you. This report goes to the credit bureau which puts out your score for any more credit that you might want to apply. You may find that you are in the need of a car for instance. When you go to apply for credit your history of paying back the credit card will determine the type of debtor that you are and this is important in order to get more credit. When you do get your credit card it is important that your annual fee and interest is not so high that it makes it impossible for you to ever get out of debt with the company.
]]> http://www.student--creditcards.com/2010/05/student-credit-cards-with-no-fees/feed/ 0 http://www.student--creditcards.com/2010/05/student-gas-rebate-credit-cards/ http://www.student--creditcards.com/2010/05/student-gas-rebate-credit-cards/#comments Sat, 22 May 2010 11:09:32 +0000 admin http://www.student--creditcards.com/2010/05/student-gas-rebate-credit-cards/
The average college student spends time traveling especially over the holidays and summer that is why it is important that they carry a credit card that offers gas rebates. The high cost of gas for the vehicle can practically put shackles on the average student since they have a very low income while in college. Many students work while they are not studying on a part-time job but they need transportation while in college. The average student usually walks while on campus but going to work, doing outside activities, and going to church requires that they drive some sort of vehicle. The students who live relatively close to home like the idea of going home over the weekend when possible. Many students take their spring break as a vacation time and go to where the climate is much warmer. Some students prefer to go skiing but normally no matter where they go it does take gas.

A student should consider their credit card and the advantages that are given to them but make sure that one of the perks are gas rewards or cash back when they use their card. There are over the road credit cards that give back cash for charging their auto maintenance and gasoline used. One of the most popular for this expenditure lets the average student earn 5% cash back is the Discover Card. This is one that many students should check into because of the cash back features.

When it comes down to saving on gas, the easiest thing to do is get a gas card. As long as you pay your bill off in full each and every month, you won’t have to worry about any interest rates being tacked on. Gas rebates cards are almost like a discount card if you use them right. As long as you do your homework, you should be able to find a card that suits your needs.
]]> http://www.student--creditcards.com/2010/05/student-gas-rebate-credit-cards/feed/ 0 http://www.student--creditcards.com/2010/05/student-debt-help/ http://www.student--creditcards.com/2010/05/student-debt-help/#comments Thu, 20 May 2010 15:55:32 +0000 admin http://www.student--creditcards.com/2010/05/student-debt-help/ With the cost of education rising and the easy availability of credit, student debt help is something that more young people are seeking. Student debt relief is available, but as a student you will first want to take the time to understand what type of debt you have and your best option for eliminating that debt.

As a student, your most common types of debt are student loans and consumer accounts, better known as credit card debt. These debts are handled differently when it comes to getting debt help. Credit card debt must be repaid in full for it not to have a serious negative effect on your credit.

This gives you the option of increasing your income or decreasing your expenses. If you can do both, you will have your debt paid off that much sooner. This really is the best way for you to get out of debt, but not all students are in the position where they can use this alternative. Credit counseling is also a choice that you have, provided you are not more than 3 months behind and you are able to make a 2 percent payment on your balances each month.

However, if you have graduated and are having trouble paying your student loans, they cannot be placed in credit counseling. Credit card accounts, utilities and medical bills can be placed in CCCS. A credit counseling service will consolidate all of your unsecured debt and you will make a monthly payment to the credit counseling agency. Your debt counseling company will then disburse this payment to your creditors.

Credit counseling may affect your credit score at first, but as you begin to reduce your debt and make your payments on time, you will see it increase. The most important aspect of getting out of debt is addressing the problem early. So many people wait until the situation has become critical and as a result their options are limited.

As far as your student loans go, you will want to talk to your student loan company and see what kind of hardship programs they have available. They are normally willing to work with you as you try to get your finances stabilized. Ignoring student loan payments is one of the worst things you can do. This is actually true for any payment. Many companies have programs that can assist with student debt help, but you are going to have to talk to your creditors in order to know what debt relief options are available.



By: Marjorie Salada ]]> http://www.student--creditcards.com/2010/05/student-debt-help/feed/ 0 http://www.student--creditcards.com/2010/05/student-credit-cards-in-todays-economy/ http://www.student--creditcards.com/2010/05/student-credit-cards-in-todays-economy/#comments Wed, 19 May 2010 20:30:05 +0000 admin http://www.student--creditcards.com/2010/05/student-credit-cards-in-todays-economy/
Students are on summer break looking forward to returning to college in the fall and knowing how the economy is worried about their future when it comes to credit making them a little bit apprehensive. There is no need to worry for the credit card companies are well and alive, looking for new students to lend money to and wanting to increase the amount of money that the older students are presently able to borrow.

Money is now moving on the wheel giving cause for lending institutions to once again open up their doors and welcome new customers. Students are usually on top of the list when it comes to lending out money. Many students have jobs now that make it easier for them to repay a loan and their career goals are excellent when it comes to lending from major institutions.

There is no need to worry about the ability to borrow money when you are a college kid since lending institutions stay in business from the profits they earn from loans. If it were not for the younger generation who makes loans and pay back interest rates and yearly membership fee’s lending institutions would soon go broke putting them out of business. The welcome sign being posted most lending institutions are offering different perks to get your business.

A student should just be careful before they sign the agreement to borrow money getting a credit card. Many times a good bargain may go sour in a few months that are why you should make sure that the opportunity presented to you is not a temporary one but one that will last the whole contract. Lending institutions sometimes put stipulations in the agreement that after a certain length of time the interest rate changes costing the borrower more money.
]]> http://www.student--creditcards.com/2010/05/student-credit-cards-in-todays-economy/feed/ 0 http://www.student--creditcards.com/2010/05/how-to-be-forgiven-student-loan-debt/ http://www.student--creditcards.com/2010/05/how-to-be-forgiven-student-loan-debt/#comments Tue, 18 May 2010 23:48:13 +0000 admin http://www.student--creditcards.com/2010/05/how-to-be-forgiven-student-loan-debt/
If you’ve already consolidated your student loans and no matter how many years you pay, the interest addition never makes the balance go down, is there any way to be forgiven this loan debt?
Please help. I’m past middle age, a social worker, and these student loans make me think that taking the gas pipe is the only solution to get out from under.
]]> http://www.student--creditcards.com/2010/05/how-to-be-forgiven-student-loan-debt/feed/ 7 http://www.student--creditcards.com/2010/05/getting-the-best-student-loan-help-possible/ http://www.student--creditcards.com/2010/05/getting-the-best-student-loan-help-possible/#comments Tue, 18 May 2010 00:33:14 +0000 admin http://www.student--creditcards.com/2010/05/getting-the-best-student-loan-help-possible/ If you are up to your ears in college debt, you may fear that it is too late to take advantage of student loan help. In reality, however, there are many options available if you know where to look. Even if you are currently in default or you simply cannot afford to pay, there are many, many programs designed to get you the best loan help for your situation.

The best way to get student loan help is to take action. This can be scary. After all, debt is intimidating, and college loan debt makes up the majority of most college graduates’ debt load. But you do not need to be frightened. It is in the lenders’ best interests to work with you on these loans. For the most part, you will find that they are accommodating and as eager to get you out of this situation as you are yourself.

First, contact your lender. Simply making contact with the lender can give you some serious relief and breathing room. If you have temporarily been unemployed but are not employed again, or if you have had a major family emergency, some lenders will lower your payments to whatever is manageable. In some instances, they will even let you skip a few months’ payments. You just have to be honest, polite and straightforward about your situation. Admittedly, this can be embarrassing. To get real student loan help, however, you are going to have to ask.

Now that you have a little time to breathe, take a deep breath. Then, start looking at your student loan help options. You will have a variety of steps that you can take. You might decide to enroll in an Income Based Repayment (IBR) program. These programs are designed to help you support your family while still making a dent in your debt. Some forms also include a forgiveness program if you pay reliably for 10 years. Also check out your student loan forgiveness eligibility. This is one of the best kinds – and least publicized – forms of college loan help. If you work in a public service job – one that serves a public need or is involved in community protection – then you may qualify for partial or total student loan forgiveness. These careers include doctors who do public service work, lawyers who work with needy clients and of course policemen, firemen and various community defense positions.

When you are looking for student loan help, it is okay to be optimistic. This is one of the best times in history to look for help with your student loan debt. Because so many people are having serious trouble repaying their loans, the lenders are unusually willing to work with borrowers who are willing to pay if they can find any way to do so. In addition, there are more student loan help programs available to you today than have ever been in existence before.



By: Butler J Raines ]]> http://www.student--creditcards.com/2010/05/getting-the-best-student-loan-help-possible/feed/ 0 http://www.student--creditcards.com/2010/05/can-i-rebuild-my-credit-without-a-car-loan/ http://www.student--creditcards.com/2010/05/can-i-rebuild-my-credit-without-a-car-loan/#comments Sun, 16 May 2010 13:32:41 +0000 admin http://www.student--creditcards.com/2010/05/can-i-rebuild-my-credit-without-a-car-loan/
If i file bankruptcy, can i still rebuild my credit without a car loan? I want to purchase a paid off car and get liability insurance. I still have a student loan and 2 credit cards, i’m planning to keep them to rebuild my credit. Will these get me to 700s after 2-3 years of paying on time?
]]> http://www.student--creditcards.com/2010/05/can-i-rebuild-my-credit-without-a-car-loan/feed/ 2 http://www.student--creditcards.com/2010/05/student-debt-and-student-loans/ http://www.student--creditcards.com/2010/05/student-debt-and-student-loans/#comments Wed, 12 May 2010 08:38:36 +0000 admin http://www.student--creditcards.com/2010/05/student-debt-and-student-loans/ The statistics show that more and more students are graduating from university with significant debt. The debt levels are growing year on year and many students will be paying them off for years after they graduate. It seems that the consumer addiction to credit and spending has effected the student population just as much as every one else. The fact that most students are not earning anything, and are living either on funds provided by their parents, or on money borrowed, they continue to spend millions each year.

These costs are spread over a variety of areas. Accommodation and other living expenses represent the largest portion of the expenditure. Added to this is travel to and from university, holiday and summer travel expenses, and entertainment. While students are generally financially responsible and not as out of control as many patents would have you think, they do continue to spend a huge proportion of their money on entertainment and socialising.

Employment

Many students will also be working part time during their studies. There are a lot of jobs available and finding one is not a problem for most students who genuinely want one. Employers recognise their flexibility and willingness to work unsociable hours and also that they will generally be happy to accept minimum or close to minimum wage. Therefore, while the jobs are there, they generally pay little, and students who work more than 10-20 hours a week are probably putting a serious strain on their studies and risking their future chances of success.

Most student debt is comprised of student loans. The student loans company based on eligibility criteria provides these. These loans are cheaper than credit that is available on the market from high street banks and have other significant advantages for students. Firstly, students will not have to start repaying the loans until they are earning a set minimum amount, currently around the £15,000 mark. Then there is also the fact that loan repayments are calculated according to earnings levels and are therefore always reasonably affordable. Students are giving as much time as they need to repay the loans and the interest rates, as said before, are very favourable.

Overdrafts

As well as these student loans however, many students will also have other forms of debt. Most banks are offering interest free student overdrafts of up to £2,000 and there are not many students who do not use this up pretty quickly. Then there are bank loans, store cards and credit cards. All of these represent a significant amount of debt that most students are living with.



By: Joseph Kenny ]]> http://www.student--creditcards.com/2010/05/student-debt-and-student-loans/feed/ 0 http://www.student--creditcards.com/2010/05/student-credit-cards-pros-and-cons/ http://www.student--creditcards.com/2010/05/student-credit-cards-pros-and-cons/#comments Mon, 10 May 2010 22:16:18 +0000 admin http://www.student--creditcards.com/2010/05/student-credit-cards-pros-and-cons/
Most people agree that learning to manage one’s personal finances at an early age is imperative. I certainly did not have much guidance in this area when I was studying and between seeing my friends and cramming for exams it did not rate as a high priority! Financial independence is something most human beings strive for yet very little is taught on this subject at schools and universities alike. It is a shame that such critical life skills are rarely addressed in our youth unless our parents are particularly diligent in this area, as many of us have to learn our lessons the hard way.

Whilst at university I observed many of my friends struggling with student credit card repayments. These guys had fallen into the easy trap of spending money they didn’t really have and leaving the worrying for a rainy day. Well guess what? When it rained it poured! One particular friend of mine was spending a lot more on his credit card than he was able to earn each week. I’m sure it was nice buying all those girls those drinks but was it worth the headache of insurmountable credit card interest repayments? This friend still pays to this day for his mistakes as his credit history will not qualify him for anymore credit of any kind. This is quite sad because credit actually can be beneficial to those who manage it appropriately. In fact it could be argued that every human being will need or at least benefit from some type of credit in his or her lifetime. You may know that it is very rare for investors to use their own money in business, instead they leverage the bank’s money to gain profit for themselves before paying the bank back. This an acquired skill and a whole other topic.

So, the question is; should students have their own student credit cards? Despite my rather bleak introduction to this article I would say absolutely yes. I say yes because as I said there are many benefits of having some credit. Also, learning how to manage credit from an early age will set you up to avoid some serious financial headaches in the future. Remember my friend? Trust me, you don’t want to end up like him.

Student credit cards are readily available these days. All major banks will actually have a range of credit cards specifically suited to the needs of the student. Often this might mean reduced rates, student focused benefits, etc. Applying is made very simple by websites like http://www.uscreditcardguide.com where you are able to review the best offers from different banks and also apply online for fast and easy approval. Just remember to have your personal financial information on hand so you can fill out the forms correctly.

There are a few reasons I believe it is important for students to have their own credit cards. Firstly I recommend every student have an ‘advisor’. An advisor can be a professional, a parent or family member, or friend with skills in this area. Most college campuses will offer free financial advice to its students as well. An advisor can help you with budgets, understanding interest rates and help you understand your unique situation. It is important to understand your earning capacity and know whether it will allow for credit card repayments.

It is very beneficial to anyone to establish a credit history which banks use to assess further loan and credit applications. If you wish to own your own home you will have to go through this one day and the longer you can show have adequately maintained a credit card and its payments the better chances you will have.

Financial emergencies, which all of us can relate to, will also come up and a credit card can really make things easier to manage these little crises. Often a low limit of $500 to $1000 is all you need to cover some unexpected expense. It is a great feeling knowing you can handle these situations without having to phone home or borrow from a friend.

Simply using credit cards to pay for things and then transferring money from your savings account to cover the costs on your credit card is a good way of earning benefits from your credit card supplier. These benefits will range from frequent flyer points to shopping credits. Check some really cool student cards including the extremely popular MTV Card.
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