Archive for the ‘Credit’ Category
Student Credit Cards – Great or Awful Idea?
November 3rd, 2010
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Author: Does a college student need a credit card? Better yet, should a college student apply for a credit card?
We all know that new credit card laws have made it more difficult for college students to obtain a student credit card. Now college students (and anyone that signs for them) need to think twice before getting that first credit.
There are many responsible credit card usage tips that college students can follow. On the flip side, there are also many college students that will fall victim to the credit card debt trap at an early age.
The question that I often receive in some shape or form is- should a college student have a credit card?
My answer is simple- all college students should have a credit card.
Before a mob of parents runs after me with blazing torches, allow me to explain myself.
Benefits of a Credit Card For College Students:
1. Build your credit rating.
When you make your first major purchase, whether it be a car or home, you will realize that one thing is very important- your credit score. This number makes a world of a difference. Before you do anything else you need to read about the importance of a credit rating.
The earlier you get a credit card the early you can build your credit rating. Yes I do realize the flip side here but please bare with me and continue reading for now.
Your credit rating becomes very important as you graduate from college and progress through your 20s. If you begin building up your credit at an early age you’ll notice some big wins.
Posted in Credit
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Tags: Awful, boatload, Cards, Credit, credit card debt, credit card for college students, credit score, debt trap, Great, idea, Student
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Apply For Credit Card-Getting Approved For A Credit Card Can Be Difficult
Getting approved for a credit card can be difficult without a positive credit history working in your favor. It’s a Catch-22: To obtain a credit card, you need a good credit history. But to have a good credit history, you need to establish good credit!
This no-win cycle can keep people with a non-existent, limited or negative credit history from getting approved for a credit card. But it doesn’t have to if you understand the type of credit cards available and how to build a good credit history.
When it comes to credit cards, the type of card you apply for will depend on your situation. If you’re a student, you’ll, naturally, sign up for a student card. But if you’re a non-student with a non-existent or bad credit history, a card that is secured or obtained with a co-signer may be your best option. With co-signed credit cards, the co-signer guarantees and is responsible for the debt. This means that the co-signing person is responsible for paying the full amount of the debt if the card holder doesn’t pay. In fact, when co-signed debt goes into default, three out of four times co-signers are normally asked to repay what is owed, according to the Federal Trade Commission.
Furthermore, the issuing bank can attempt to settle the debt without first trying to collect from the card holder. The bank can also use the same collection methods against the co-signing individual, including suing and garnishing wages. If the debt is not paid, it can leave a negative mark on the credit history of the co-signer, as well as the card holder.
Posted in Credit
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Tags: Apply, Approved, bad credit history, card, CardGetting, Credit, credit card issuers, debt, Difficult, garnishing wages, history, negative credit history, pre paid credit cards, score
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Credit Rating Scores
There is no reason beating around the bush when it comes to credit rating scores.
The problem I find with most people who give others advice on their finances is they are too nice. Well I am here to tell you that nice doesn’t pay the bills.
I have learned you need to be blunt and to the point no matter how it feels for the person you are talking to when it comes to their credit rating scores.
I know we live in a very tough economy and I know over the last couple of years things have become very difficult. The problem is when things took a drastic turn for the worse so many people didn’t compensate for things.
People continued to spend the same way as when things were great. In turn for many people it bit them in the butt and now they are looking for ways out.
The good news is there are still ways to save yourself but the bad news is it is going to be a lot tougher then if you would have planned for it when things started getting tough.
I guess the first thing you are going to have to do if you want to build your credit rating scores is first start believing in yourself. You need to sit down and take a long hard look at yourself and tell yourself that no matter how hard things get you are going to get through them.
Posted in Credit, Finance
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Tags: Credit, Credit Rating, Credit Rating Scores, Finance
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Avoid credit card traps
If you’re like most Americans, offers for credit cards arrive in your mail on a daily basis. Why are credit card companies so eager for your business? There are many reasons.
Credit cards, for one thing, are not free cash. Funny enough, many customers think of them this way, and that—aha!—is how credit card companies make their money.
You’ll notice when you read through the fine print about credit cards that there are varying APRs, or annual percentage rates. This refers to the amount of interest you’ll pay on credit card charges if you don’t pay your monthly balance in full. Think about the last time you went shopping. Did you look at the tags and make sure everything you bought could be paid with your monthly paycheck? If not, you are a credit card company’s dream come true. You see, these companies bank on the chance that consumers will use their credit cards to buy more than they can actually afford at the time of purchase. When the bill comes and it can’t be paid in full, the customer pays interest on this borrowed amount, and that interest accrues daily. This money goes right into the credit card company’s bank account. With thousands of customers falling into this predicament on a monthly basis, you can see where the companies get rich quick.