Student Credit Cards

A recent addition to a college student’s must-haves is a credit card. Along with the cell phone, the credit card is becoming more and more prevalent among young people ages 18-25.

Perhaps it is but natural for credit companies to mine this previously untapped market. More and more products and services are being targeted towards these customers. And the more cool stuff is out there, the more they will want to buy – if not with cash, then on credit.

Unfortunately, the problem with swiping away plastic is just that – students fail to realize that with each swipe they are one step closer to debt, which they may be unable to manage. That is why it is important that the right information on the judicious use of credit cards be made available to students.

That is not say that a credit card per se is a bad thing. In fact, when used wisely, it becomes a smart way for young adults to build their credit history, which they can continue to build on as they becoming self-supporting professionals.

Having a credit card also teaches students financial responsibility – showing them that it is important to live within means. It makes them aware of concepts such as principal, interest, balances and debt. The earlier they get comfortable with these, the better they can cope further on in the future.

On the other hand, young adults can still be prone to financial naiveté particularly when it comes to fine-print terms and conditions. Perhaps in the excitement of being issued their own credit card, they may simply skim over, if not totally forgo, reading the terms and conditions the credit company stipulates over the use of the credit card.

It is possible for someone of that age to be content in knowing that their card offers 0% APR. What they may not be aware of is that the offer is for a limited time only or that if monthly payments aren’t fully paid, a high finance charge will be applied.

Although nearly 80% of college students today own more than two credit cards, it is unfortunate that less than half are able to pay off the monthly balance. This only proves to show how little effort is made to educate students on the right usage of a credit card.

If you’re a student considering getting or already owning a credit card, or if you know someone who does, here are some things to help you get started on learning how to use a credit card wisely and to manage finances in general.

- Consider the nature of your income and how much of it is stable income.
Credit card statements come in monthly. Therefore, you should know how you would get the money to pay for these. Stable income is important because you will be relying on this to make those regular payments. If you don’t have a steady source of income, rethink getting a credit card. Continuing with one in spite the lack of a stable income will run you into debt in no time.

- Observe your credit limit.

Unless you specifically ask for it, a credit company will set the limit for you. To avoid unmanageable debt, your credit limit should be around 25% of your stable monthly income. So even if you’ve topped off your credit, you’ll still be able to pay off the monthly balance. If your credit limit is beyond 25%, call your credit company right away and ask for an adjustment.

- Designate purchases

Credit cards should not be your primary method of payment. It should only be a means to bridge gaps in your cash flow. As early as possible, develop the discipline to limit certain purchases for your card.

For example, it is a practice of some to charge important things such as rent and utilities to a credit card. The rationale for which is that even if the cash income is delayed, payments for the essentials will not. However, the idea is that the balance will be fully paid off by month’s end.

These tips should get you started as you build a good credit history. You may start out small now, but as you learn good financial management early on, in the future, handling bigger things will hopefully be easier.

right now im in school and my credit isnt really good i owe student loans does anyone know were i can get a student credit card without a credit check

I’m a college student who got a credit card a little less than a year ago. I spend a lot (around $700 a month) and always pay back the total in full before the due date. My bank has increased my credit line three times since because of my good credit.

So are there any additional advantages to having a good credit score than easily getting approved for credit cards and getting large credit lines? Does it also project to any type of loans (i.e. it is easier to get approved for a car loan with a lower interest rate) or something?

The vast majority of students take out a series of loans to see them through college and often end up with a huge debt which then takes them many years to pay off. So, is it possible to pay for a college education without having to burden yourself with loan debt?

The simple answer is yes, but it does take a little bit of planning.

If you start thinking about college far enough in advance then you can begin putting money aside into a college fund and perhaps even enlist the help of parents and other relatives to make regular contributions to your fund. Now this is almost certainly not going to be enough to see you through college, but it can help a great deal.

The next excellent source of money for many students is scholarships and grants. Your own college can be a good place to start as many colleges will have grants and scholarships available just for their own students. Beyond this there are thousands of different sources of grant and scholarship funding available both locally and nationally and it is simply a matter of hopping online and searching for those which you are eligible to apply for.

Having got your pool of free money it is then time to start thinking about earning the money you need to meet your college fees and living expenses and, despite the fact that many people will tell you that you will not have time to fit in a job and that it will detract from your studies, evidence shows that the opposite is true. Most students who work a regular part-time job in college have to organize their time well to fit everything in and the result is that they usually end up carrying their work discipline across to their studies and frequently end up with better grades as a result. Another great benefit is that it also teaches you the true value of money and having to work for an hour to earn just a few dollars makes you far more careful about how you spend that money.

Think carefully however about just what sort of job you want and try to pick a job that you are interested in and that is going to pay well. There is nothing wrong of course with serving burgers in a local fast food restaurant, but if you have some skills then it is far better to put these to use if you can. Remember too that many companies in the area will probably be very happy to employ part-time students and the Internet also provides an excellent source of income, which also has the advantage of normally allowing you to work when it suits you.

Finally, do not forget that some colleges are a lot more expensive than others and will not necessarily provide you with a better education than a cheaper alternative. It might be thought that attending a particular college will provide you with better earning potential but this really is not true. In the vast majority of cases your future prospects have much more to do with how hard you work at college and beyond than they do with the name of the college you attend.



By: Donald Saunders

In my last post I talked about how college was one of the most rewarding experiences in my life but it also left me with a fair amount of debt. I realized that it doesn’t take much to accumulate debt, especially when your income is next to nothing. It also doesn’t take long to become despondent when you see your personal finances dip further and further into the red. There is hope! I have created a list of four tips can be useful in helping you start to erase your college debt!

1. The first thing you need to do is discover how many loans you have. If you live in the United States log onto the Website for the National Student Loan Data System. There’s a lot of important information at this site that will show how much you owe and from whom. Before you can review the details at the NSLDS you will need to obtain a four-digit PIN from the Department of Education.

2. Consolidate your College Debt. This is very important. It will help eliminate multiple payments each month and lower the interest rate. It’s easy lose track of your budget if you are paying off four or five different loans.

3. Renegotiate the rate and term your of loan: It’s a fairly simple formula that the longer you are paying off your debt, the more interest you will pay in the long run. It may not be feasible for you to pay it all off in one or two years but the more quickly you do so, the less interest you will pay on your college debt in the long run – even if it is at a higher interest rate.

$20,000 at 7% for 10 years equals $7, 866 in interest.

$20,000 at 13% for 5 years equals $7, 304 in interest.

4. Don’t miss any payments. Ever. This is probably one of the most important pieces of advice I can give. Not only will missing a payment damage your credit rating but the penalties will add up quickly. Chances are your college debt won’t be the only loan you have in your life and you’re going to need a quality credit rating for other major purchases such as house or a car or for that much deserved vacation. That’s why it’s important to negotiate an amount that is manageable so you can make every single payment when it is due and not get in over your head when other expense’s come your way.

These four tips may seem simple enough but sometimes it’s easy to make mistakes, especially when you are busy at your brand new job. Take a day as soon as you can to start with these tips. Most financial institutions are now open six days a week so it is important that you take the time to fast track your financial situation. I challenge you to start with these steps this week. You would be surprised how much more money you will have by the end of next month if you take care of it now. Good luck eliminating your college debt and be sure to save a few dollars for that beautiful new glass frame for your diploma.

Bye for now!



By: Brandon Schmid

My daughter has a monstrous student debt – she hasn’t been able to make it pay off and is now very over qualified although she is virtually unemployable at a professional level because she hasn’t passed the bar. She can’t afford a car, she can’t afford to live, she can’t afford her debt. How does she get this on an easy payment for the rest of her life plan – and still be able to have a life? Ideas please. I co-signed and it is also on my plate. I’m not at all sure she has done everything she has the power to do, she may not know the answer. Its not an easy discussion to have with her, she’s stressed to the max.

When you go off to college for the first time there are many things that you find you need and perhaps just not enough money to pay for them right at the time of your needs. You hate to keep asking your parents for things as now that you are an adult you like to be able to pull your own weight in some things. You find that you are making a small amount of money working part time so you feel that getting a credit card would help you with your extra expenses. You believe that you will only charge a few items and with your part-time job you can easily pay the credit card company. You should watch out for the “Credit Card Trap” that students find themselves deep into before the first semester is over.

Many credit card companies visit the campus to entice you into getting a card. You find that each time you use it you are borrowing money and that a high interest rate is being charged. You are getting deeper and deeper in debt and your part-time job no longer pays the bills. Then you find that you are applying for a new card to pay off the old credit card which only makes your situation that much worse. Just as you go shopping for those things you need for your room and to make you comfortable you should shop for the best credit card deal available. The many credit cards offered to you on campus is not always the best deals for students.

When you are looking to get a card check out the three key features that will help maintain your budget and keep you from going too far in debt by owing too much on your credit card. When you are shopping for one select one that offers no annual fees, a reasonable interest rate and online account management. You do not have to select a credit card because it is being offered by the college you can go online and find one that is best suited for your budget. You should not skip a payment make sure that you are on time and if possible pay more than the minimum required each month. The minimum normally covers the monthly interest and a small percentage goes toward the balance due. In order to get out of debt the best thing is to pay more than the amount required and you will find that soon your debt will not be over powering.

When It Comes To Student Loan Debt… You’re Not Alone!

Escalating college tuitions are making student loan debt an eerie fact of life for students everywhere. The average cost of tuition for 4-year colleges has more than doubled over the past 30 years. By the time you add up the cost of tuition, plus room and board, the cost of attending a private college hovers around $29,026 per year and around $12,127 at four-year public universities. Consequently, debt from educational loans has reached overwhelming epic proportions. As we face these uncertain economic times, more individuals are feeling the pressure of the costs of education.

The facts don’t lie; graduates are having a hard time coping with debt and are in need of debt relief. The percentage of Americans with outstanding student loans that say this debt is preventing them from making major purchases, such as a house or a car is increasing. Thirty percent of those polled say their student loan debt is a major burden. Once an individual becomes part of the student loan abyss, they must tread lightly. If this debt is not managed properly, it can not only lead to bad credit, it can also lead to loss of eligibility for future federal aid, and the possibility of wage garnishment and the withholding of tax refunds.

I truly believe it is time for college students and graduates to rally together and establish a grassroots organization that lobbies for student loan reform. Unless that happens, the powers that be will gladly sit back and watch as the student loan debt meter continues swelling to epic proportions.

If you are having challenges with paying your student loan, there is help with nonprofit organizations such as American Student Assistance. They offer outreach and education, loan repayment counseling, budget planning, information on repayment options, and even help for borrowers who have defaulted on their loans.

If you have federal loans through the Direct Loan program, you may qualify for an income contingent repayment plan. Or, if your income isn’t sufficient to repay a federal loan, you can apply for an economic hardship deferment or forbearance, which would suspend or reduce your monthly payments. Just bear in mind that the interest will continue to multiply on student loans that are not federally subsidized. The important thing is to act now! Don’t wait until action is taken against you. To determine if you qualify for any these programs, check out the website Finaid.org

What We Have: Clear and Concise Paths To Help You End Your Debt Problem. You Won’t Find This kind of Guidance Anywhere Else, Not For Free.

Who It’s For: ANYONE who needs, wants and passionately desires to GET OUT of DEBT and live Debt Free without losing their sanity and dignity.

How To Get It: Simply click on the Get Out of Debt link and start rejoicing!



By: Joel Marks

A debit card is a great way for any student to be able to receive money from their parents while they are away from home at college. The debit card with one of the major logo’s like Visa, MasterCard, Discovery or American Express can be used just about everywhere there is an ATM machine. These cards are usually accepted by all major retail businesses and at hotels all around the country. Many times students are able to make reservations on airlines and book their hotel room by using the debit card. The debit card is very popular among students and parents since it gives both the opportunity to control the spending and keep track of how the money is best spent.

One of the nicest features about a debit card is that when you have obtained the card from your bank it is very easy to turn this card into a credit card where the student has access to cash when it is needed. Many times the bank will allow charges to go through even though the cash limit has been drawn against the account. It is wise not to depend on that unless you have made your card into a debit/credit card.

You can secure your card very easily by opening up a savings account that will guarantee funds in case of an overdraft. Most banks are very happy to let you go over if they have some secured funds in a savings account that they can transfer out to the card. You will pay a fee for this service but it is great to have especially when you are traveling.

Are you able to make your payments? I am just curious what everyone else is doing. So far, I have about $20,000.00 in student loan debt for 4 years of school (I have a bachelors in psychology now). I am going on to graduate school and student loans are going to have to cover all those costs too, including me getting a used car for a few grand. Is everyone else spending all this student loan money too?