credit card bills

Tips on Building Your Credit Rating in College

Credit Rating in CollegeWhether you have just entered college or if you’re already enrolled and you’re seeking ways to secure your financial future, building your credit rating can help in many areas of life. When you’re in college, building your credit rating is possible regardless of your age with the proper support and the right opportunity. Before you begin to build your credit rating, it is important to determine your own personal goals for your financial future and your capabilities on affording your credit card bills each month once you’re approved.

Before Building Your Credit Rating in College

Review the budget you have available to spend each month based on your income, current bills, and tuition costs. Before you apply for a credit card, determine why you want the card and how much you plan to spend personally each month to help building your credit score.

By spending money using the credit card each month and paying the bill on time without any delay, your credit rating will improve regardless of what you’re using the card for when making a purchase. You should also plan on using your credit card for payments you already make such as paying your phone bill. So, you should create a plan on what things you’ll use your credit card for and what things you won’t.

It’s also ideal for you to get a steady source of income through employment as this would heavily benefit your credit card application. Even when going for the lowest credit limit, they could still deny you if you don’t have a source of income.

The Benefits of Building Your Credit Rating in College

Building your credit rating and overall score in college can help assist you if you want to take out a loan for a vehicle, home, or even a personal business investment once you have graduated. Having a higher credit rating means you’re also capable of being approved for loans that have lower interest rates, ultimately saving you more money as long as you’re capable of paying all of your bills on time. Investing in a home or launching a business is entirely possible if your credit rating is high enough by the time you graduate or receive your degree from college.

In addition, it can also theoretically be useful when applying for positions that conduct background and credit checks on potential employees.

Find a Student Credit Card

Applying for a credit card for students is often possible as long as you can provide proof that you’re a student. If you can provide proof of your income as well, searching for a student credit card is simple and does not require the signature of a parent or another guardian to have the card approved as long as you are over 18. Student credit card offers may be available on a college campus you’re attending as well, so make sure to inquire with your college. You can also visit a local bank or compare various types of student credit cards that are available to you right from home online.

Ask Your Parents to Co-Sign for a Credit Card

If you’re unable to sign for your own credit card, you have the ability to ask your parents to help by co-signing for the card with your name on it. Your parents must, of course, trust you to pay off the credit card bill each month before co-signing for the card, as the responsibility of the bill will be theirs if you’re unable or unwilling to pay for the charges yourself.

If you’ve shown financial responsibility while you were in high school, this shouldn’t be too much of a problem.

Use a Secured Credit Card

It is also possible to apply for a “secured credit card” if you’re not qualified for a traditional card and if you do not have relatives who will help to co-sign for a card in your name. A secured credit card is an option that allows you to invest a specific amount of money into an individual savings account in exchange for the card itself. By depositing a trusted amount of money, you’re able to use the card to help with improving your credit rating. A secured credit card can be applied for by using trusted banks and institutions online as well as by applying for the card in person at a local banking branch.

Comparing Credit Card Offers Online

Searching for the ideal credit card with the lowest interest rate for students is possible by browsing online to compare the available options. Looking for a credit card that is right for you online is a way to read and review all card terms and conditions while also comparing interest rates and credit limits, based on your qualifications, age and whether being a student gives you an advantage. Comparing credit cards online is ideal and can also save time regardless of the type of card you’re interested in and your purpose for applying for one.

Using Your Credit Card Responsibly Once you’re Approved

Once you have been approved for a credit card (co-signed or to you individually), it is essential to be responsible at all times regardless of how much the card is used. Any time you spend money on your credit card, be sure to pay the monthly bill in a timely manner. When you avoid paying your credit card bill on time, it may negatively impact your credit score and rating, causing it to drop. Ensuring you pay the bill on time every time will also help you boost your credit rating instead. Using the card for items you need to purchase is highly recommended, as it will allow you to stay within your budget so you’re never incapable of paying off your credit card bills.

This article was written by Donald Turner on behalf of Kanetix. When searching for a credit card, make sure to consider checking out Kanetix and see how they can help you find the right credit card.

How to Reshape your Finances and Live a Debt Free Life

Debt FreeMany think that living a debt free life is a farfetched dream and cannot be easily attained. It is one of those things that they strive to gain but fail every time due to some circumstances or the other. Be it reckless lifestyle or overspending on the credit cards debts sometimes are too hard to shake off.

However by taking some planned steps you can cut down your dues and live a debt free life. It may be a little time taking and a little difficult at the beginning but it is not impossible. So, instead of repenting on the things that are already done, try and get your finances back on track by implementing some of these debt free direct ways:

  1. Design a budget plan: If you want to keep an accurate track of your expenses and get control over your finances it would be a good idea to design a budget plan. If you can stick to a well made monthly budget plan you can cut down your unnecessary expenses and can save some money to pay off your bills. A proper budget plan also helps in maintaining a stable financial life by avoiding debts.
  1. Cut down your credit card bills: You may not realize the amount of problems you face due to reckless spending habits till you get your credit card bills. You may be fond of buying things with cards but the habit may not be beneficial if you default on your bills at the end of the month. If the amount is high you may find it difficult to repay them. Such defaults may further lead you to debt problems. So in order to avoid that the best thing is to set a limit on your credit card expenses.
  1. Reduce your interest rates: You can get rid of your debts faster by reducing the interest rates on your debts. If your financial condition is poor inform your creditors and convince them to reduce your interest rates. If they agree to your negotiation deal you can pay off your debts comfortably and also avoid any problems relating to foreclosures, lower credit scores or bankruptcy. However make sure that you give proper reasons and show earnest efforts in becoming debt free.
  1. Avoid defaulting on payments: When in debts it is very important to make the payments of your other loans properly. It helps in improving your financial condition slowly and maintains your credit score. Avoid defaulting on the monthly payments of any bills. If required keep a track of your payment dates so you do not default on them and end up paying penalties.
  1. Consider other sources of income: If you want to get rid of your debts faster you just cannot depend solely on your primary income. The amount may not be sufficient for making the payments after meeting all your basic financial needs. In such circumstance consider taking up a part time job or work overtime to supplement your income. You can use this income to pay off your debts without hampering your budget plans.

Have proper personal finance habits – Learn the tricks

Have proper personal finance habits – Learn the tricks

It is very necessary for you to have proper personal finance habits in order to stay out of debt. The major problem with most Americans is that they fail to live within their means. What you should understand is that saving is an integral part of your life and you should spend less than what you earn. However it is seen that most of the times people spend more than what they earn and this leads to the root of all debt problems; mounting credit card bills. Keeping your credit card debt under control is of utmost importance to you. This will enable you save money and not fall into debt problems. Debt problems are something that gets difficult to get out of once you get in. given below are some personal finance advice that you can make your own to keep away debt.

  • Make your money’s worth work for you – If you make small changes to your lifestyle, even without having to modify it drastically, you can maximize your savings. For instance, you can train yourself to have good financial discipline and then use reward credit cards for every purchase and payment that you make in a month. If you pay back your credit card bills in full at the end of each month, that is, a billing cycle of 30 days, you would have interest free loans for the time span of 30 days and also you earn more rewards from the credit card company. When you can view your transaction records, it is easier to see where you are spending your money every month. You should also check your existing bills in order to come up with ways to save money in typical expenses such as phone and cell phone services, utility bills, cable television.
  • Use your money wisely – If you upgrade your bank account into a one with higher interest rate or no fees you can either make or save quite some amount over time. You can try and invest your money in accounts that will earn for you more amount of interest for the length of the time you will able to keep the money untouched in the savings. This is the magic of compounding interest.
  • Anticipate and prepare for the unexpected – There are a lot of people who don’t even have money to repair their vehicles when it breaks down citing it to be an unexpected event. Same can be the case with repairing broken tiles, electrical lines in the house and so on. What you have to keep in mind that is that these are not really unexpected in the true sense of it. Your car which you use regularly and your house where you live can undergo damage with time and you have to anticipate any damage can be caused. Although you wouldn’t know the particular timing for such events, which is why you should build an emergency fund.
  • Build an emergency account – This account helps you to keep moving and stay up on your feet at a time when disaster happens. You should start building your account by saving some money every month. You should have set aside at least 3 months of living expenses to be at the safe side. If you haven’t reached this target then continue keeping aside some money.  It is important that you understand that your emergency fund is not the same as savings account. This emergency fund is not to be used for vacations or for investments.

Thus you can see how the above tips in personal finance can help you in keeping your finances under control.

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