income

Quick Options You Have To Increase Your Income

If you’re a human being, then it’s very likely that at one point you’ve wished you had a larger income. You can try as hard as you can to make more money in a month through second jobs and savings accounts, but sometimes we just can’t make ends meet. Take a look at a few of the tips below to cut down your spending and increasing your bank account in a single fell swoop.

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Sell Your Surplus Online

It’s a trick everyone will use. If you have junk laying around the house, collect it up, clean it up, and then put it online. It can take a little bit of time for bidding times to end or for someone else to find what they’re looking for in your product, but you’re guaranteed to shift a couple of pieces at least.

Some of the old favourites are Amazon and Ebay, which allow you to increase on cost effectiveness by having the buyer pay the shipping costs. You can also find specialist sites to sell a special piece of equipment, such as cameras at http://www.camerajungle.co.uk/. This would be sensible to do considering the investment you originally made in such technology.

Try Your Luck With A Credit Card

Using a credit card can be a double edged sword. It’s good for you if you know what you’re doing and have limits for yourself, but a lot of people don’t through no fault of their own. When it comes to paying off a credit card balance at the end of a month, pay it off in full. No extra charge can be placed on top of this original sum this way, and any credit rewards will come as actual rewards instead of something you had to pay for with the interest.

You can find the credit card that’s right for you at comparison sites such as https://www.gobear.com/sg/credit-card, which allow you to estimate your spending on resources each month and the kind of budget you need to accommodate. It’s important you find a card for your needs instead of one that comes highly recommended, as these can entice you in and get you to sign up for things you do not need.

Cut Down On Brand Costs

For those living on smaller incomes, buying own brand products is already a daily staple. It’s a secret everyone should partake in however when money is thin on the ground for the month, as buying name brand is really only for your peace of mind.

Big stores are designed in a certain way to make us come out with a lot more than we needed to come in for. Following along this vein, a lot of these supermarket lines are exactly the same quality as the big products and go just as far. You can even find more worth by the pound with food items such as cereal. Spending in this way can actually save you thousands per year.


TFS Closed End Fund Strategy

The strategy seeks to create portfolios of Closed End Funds (CEF’s) which provide a high level of current income with the potential for capital appreciation.The strategy will invest in CEF’s which are trading at significant discounts to Net Asset Value (NAV) and provide high levels of current income. These portfolios will primarily invest in the following CEF’s sectors: Emerging Market, High Yield, and Energy/Resources. MLP’s and REIT’s may also be used.

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Closed End funds have similarities to exchange?traded funds. They are launched through an initial public offering. The proceeds of the offering are invested by the fund manager according to the fund’s strategy. The CEF is then configured into an equity security which trades on an exchange in the secondary market. Investor activity takes place in the secondary market and has no impact on the underlying assets or NAV of the fund. An ETF, on the other hand, has a market maker which can either create more shares or redeem shares to keep the value of the ETF close to its NAV. A CEF does not have this mechanism. This leads to periods when the market price of the CEF may differ substantially from the NAV. This tends to occur during periods of extreme volatility and investor sentiment in the marketplace. CEF’s are frequently leveraged into “little income producing factories”. This leverage typically may be 25%?35% of the assets of the fund.

Gold_InvestmentThe CEF is a relatively complex investment vehicle which makes it less liquid and more volatile than ETF’s or mutual funds. The dealer community does not normally follow CEF’s and the market is too small for institutional investors. This makes CEF’s a retail product which is followed by a relatively small group of sophisticated investors. This frequently creates opportunities during periods of extreme negative market sentiment when investors are desperate to liquidate their holdings.

We monitor the CEF universe for funds with high levels of current income which are trading at deep discounts to their NAV using a measure called the z?statistic to determine the relative attractiveness of the discount. When the Z?stat is ?2 it means the funds discount is 2 standard deviations from its average. We like to look at this measure for differing time periods such as 1, 3, 5, and 10 years. When this measure is ?2 or less it is considered statistically “undervalued.” This is not a common occurrence, but does happen during market extremes. After we determine a fund meets these criteria we then take into consideration the following in our bottom up analysis: Morningstar ratings and reports, the people involved in the management of the fund, the process the fund manager employs, the positioning of the fund, the risk & return characteristics of the fund, fees, and leverage. We employ top down analysis to determine which category and style to emphasize. For example, we may choose to overweight emerging market fixed income because we feel they are attractive and will outperform high yield funds. Diversification among funds is not a primary concern.

The best use of the strategy is to build up the income component of the portfolio while waiting until the CEF’s return to more normal pricing. The best time to invest in CEF’s is when market sentiment has been very negative and these funds are trading at deep discounts to NAV. Since this only happens occasionally, it is difficult for money managers to develop an ongoing stand?alone CEF strategy. We believe the best use of CEF’s is to augment existing portfolios with CEF’s when opportunities present themselves.


Saving For Retirement Invalid Reasons to Avoid Doing It

SavingsWhen it comes to saving for your future, the process may seem overwhelming. After all, in these tough economic times, it’s easy to feel pressure from student loans, mortgage rates, banking fees, creditors, insurance and other expenses. Planning your retirement may seem like the last thing you need to prioritize.

Millennial face the brunt of the retirement woes. According to Forbes, only 29% of millennial in a recent survey said that they used a retirement calculator to see how much income they would need for a healthy retirement, and only 17% said that they were currently on track to meet their retirement goals. In a post recession economy, experts say that now more than ever should young people start planning and saving for retirement.

With that said, many people under thirty still tend to rationalize why they aren’t prioritizing for their future. Here are five of the biggest excuses and justifications people tend to make whenever the topic of “retirement planning” comes up in conversation.

I Don’t Have Enough Income

This is bar none, one of the biggest excuses people like to make and its one of the easiest to dismiss. No matter how small your monthly income is, there are always ways to start budgeting for your future. Even many minimum wage jobs offer some sort of 401(k) retirement plan.

Start small and don’t try to save too much too fast. The younger you are, the less your monthly savings goals should be. As you get older and your income increases, gradually raise your amount taken off every paycheck.

I Don’t Know Where to Begin

This is another excuse that young people tend to make when it comes to saving for retirement. There are a plethora of ways for those in their twenties or thirties to start a retirement savings plan immediately. In addition to withholding partial sums from payroll checks, it’s beneficial to look into Roth IRAs or annuity programs.

Check out annuity assist to find out if annuities are right for you. These financial products allow you to pay your insurance company with either a lump sum or in small chunks. Over time, you’ll see that money return in disbursements while accruing interest. This option is perfect for young people who want to start saving responsibly right away.

I Will Rely on Social Security

Despite what you may think you know about American Social Security, it’s unwise to put all your eggs in one basket. The Social Security Administration was even quoted as saying “don’t count on it” when it comes to relying solely on it for retirement planning. According to an article on Mint.com, a 2010 report from the Social Security and Medicare Board of Trustees states that SS funds may be depleted by 2036.

Experts expect young people will get at least 75% of their Social Security benefits – an estimated credit of $1,269 a month. While Social Security benefits are certainly an asset for retirement planning, it should be used to complement what Americans have after a lifetime of other savings and investments.

I Have Plenty of Time

Most finance experts agree that the earlier you save, the better off you’ll be after retirement. It’s a simple logic really. However, those in their twenties may not realize the importance of saving for a future that’s decades away. The thing most young people seem to forget is that a large portion of money accrued for retirement does not come from what is put into it. A good amount of that nest egg is accrued from decades of gradual interest and wise investments.

For example, a person who invests $15,000 a year for 30 years results in a sum of $450,000 saved. However, thanks to compounding interest, that same total could result in a figure of a couple million dollars. This interest takes years to accumulate though, and those who start earlier will reap the rewards and could earn several thousand if not millions more than those who wait to begin saving and investing.

I Don’t Have Enough Time

While it’s true that many people wait too long to begin saving for retirement, on the flip side, some people may feel that they’ve missed their window of opportunity to get started. While there will have to be some sacrifices made and possibly an extension of your working career, retirement “late bloomers” still have a shot of having a nice savings set aside for their golden years.

Remember, anything you can scrimp and save and set aside will pay dividends if you took the right steps to invest wisely.


What is Underwriting and How Does it Work?

Mortgage_monkeyOnce you’ve finished your house search, made an offer for the property and been pre-approved for a mortgage, you may feel as though that home is yours. Unfortunately, however, the process is far from finished.

You still have to prove your credit worthiness to the underwriter before everything will go through on the sale, and if it is proved that you’re not worthy of credit, the sale will not go through. The job of checking your credit risk lies with the underwriter, and if you’ve told any ‘little white lies’ on any of your forms, the underwriter will find them.

Why Do Underwriters Exist?

For this reason, you can think of the underwriter as a form of ‘real estate detective’. Although your loan company may have pre-approved your finances, the deal isn’t sealed until the underwriter has approved it too. This is because the standards of the underwriter are much higher than the loan company. They will examine your application with a fine toothcomb in order to see if you have represented yourself in a fair and accurate manner. A loan company will assess your request at face value.

The reason that underwriters have increased their scrutiny is because of the reckless lending that led to the financial crash. Beforehand, banks were relatively loose with their lending and, as a result, many people were given loans that they simply couldn’t pay off. As a result, many homes have been repossessed, and because banks cannot afford to lend, they have tightened their regulations, employing underwriters. Today, you won’t be approved for a mortgage unless you can afford it and this provides both you and the bank with reassurance.

Spotting ‘Red Flags’

Any declared bankruptcy in your credit history or any irregularly will be considered to be a ‘red flag’. A red flag does not disqualify your loan qualification straight away, but it does make obtaining a mortgage much harder. If you have a solid employment history and can prove that you have rebuilt your financial situation significantly, however, you can still qualify. At the very least, they’ll accept a large down payment.

When your application is underwritten, the amount of money you owe will be factored into the equation. As a general rule,

Types of Underwriting

Underwriting, however, doesn’t only apply to mortgages. Many businesses the world over use underwriters to assess their insurance and the insurance they offer to others. Huge underwriting and insurances companies such as Catlin USA have specialist insurance policies for every situation and, as a result, they employ underwriters who specialize in specific niches.

So, to conclude, an underwriter will assess how much of a risk you are for a mortgage or how much of a risk you pose for insurance purposes. Remember, just because you’ve been pre-approved for finance doesn’t mean the underwriter will agree, and they will always flag it up if they think that you are trying to borrow more than you can afford.


The Best Money Tips For New Graduates

Graduating from college is a milestone that leaves many students overwhelmed with finding a new career, managing monthly expenses and paying off student loans. Finding a solution that allows you to manage your money wisely is the best way to start a new career, and an independent lifestyle, without accruing more debt than you can handle. Learning which steps to take to create a new home and new life, and which to avoid, helps you avoid some of the most common mistakes that new graduates make.

Prioritize Your Spending

Setting up a new apartment is one of the first steps that you will take after college. It is important to take the time to decide which items you really need to purchase, and which can wait a little longer. For example, you will need furniture, but a top of the line television is a luxury that you can put off until you are a little more financially secure.

It is also important to look at your weekly budget for food costs and entertainment. Setting a budget for food, drinks with friends and other non-necessary expenses can save you thousands of dollars a year. You can also take the time to learn new skills, like cooking, that can help you stretch your money. Cooking meals at home is one of the simplest and most effective ways to cut spending.

Use Debt to Your Advantage

Debt isn’t always a bad thing to have. A manageable amount of debt can be an advantage when you make payments on time. Making payments on time allows you to begin building your credit score, which will assist you in buying a new home or car in the future. Just make sure that you only take out loan amounts that you can comfortably manage to ensure you aren’t overwhelmed by the monthly payments during the first months after graduation.

Start Saving

Saving can seem challenging to new graduates but this step is one that you shouldn’t skip. Even a small portion of your income can make a big impact on your retirement or emergency fund over the course of several years. Start by investing about two percent of your income into a savings account that is set aside for emergencies, such as unexpected car repairs, then switch to investing in your retirement account. You may want to research your options before choosing an investment account to find the best returns on your investments.

Get Organized

One unexpected aspect of being financially independent in keeping up with and organizing paperwork. Choose to use online statements and automatic payment options whenever possible to help reduce the amount of paperwork you need to organize at home. Not only will paperless options cut down on clutter, automatic billing and payments taken directly from your account ensure you make payments on time without the hassle of sending a check.

By planning your finances carefully and prioritizing spending, graduation can be an exciting adventure instead of a financially stressful event. Begin planning your financial future early to be confident that you are prepared for your new life as a recent college graduate.

Featured images:

Daniel Ramos is working for Garden Savings bank. He loves to blog and offer people advice on their personal financial issues. When he is not blogging, he enjoys writing for his own finance blog.


Nine Ways To Be Prepared Against Always Changing Tax Laws

Nine Ways To Be Prepared Against Always Changing Tax Laws

Tax lawsClients ask about how they can be prepared against always changing tax laws. One of the certainties of modern taxation is constant, unending change. Perusing the Congressional Budget Office’s (CBO) “Reducing the Deficit: Spending and Revenue Options”, convinces any thoughtful person that changing tax laws are inevitable. Preparing for new tax laws while considering how to incorporate recent changes into a tax practice, is part of preparing for the next tax season. Consider these changes and trends:

1. High income earners, rising brackets and capital gains.

Single taxpayers earning $400,000 or married couples earning at least $450,000 rise to a higher tax bracket this year. Previously taxed at 35 percent, 2013 tax rates climb to 39.6 percent (+4.6 percent). Note that CBO Option 1 is “Increase Individual Income Tax Rates” from 2012-2021. If enacted, raising all tax rates by one percent would raise U.S. tax revenues by $480.4 bn through 2021. CBO recommends continuing, concurrent rises in capital gains rates. A client discussion about booking capital gains is timely.

2. VAT possibility.

CBO Option 27 explores the possibility of adding a five percent value added tax. A ‘narrow base’ would raise 1.390 bn in U.S. tax revenues through 2021. A ‘broad base’ VAT accessed would raise about 2.5 bn through 2021. About 140 countries around the world assess VAT for goods and services purchased.

3. Institutional fees.

Option 33, “Impose a Fee on Large Financial Institutions,” studies the financial impact of supporting institutions “too large to fail” and the Troubled Asset Relief Program. Assessing institutional fees would raise 70.9 bn in tax revenues through 2021 and would theoretically create reserve funds for the largest institutions in the event of a future financial meltdown.

4. Tax greenhouse gas emissions.

Option 35 proposes taxing the U.S. carbon footprint. Taxing emissions would increase the costs of some goods and services. If voted into law, the proposal estimates $1,178.9 bn in tax revenues would be raised through 2021.

5. Tax income of U.S. Corporations as earned.

Option 25 explores the double taxation imposed on multinational operations of some U.S. corporations. Corporate earnings outside of the U.S. would be taxed according to the laws of the country in which the income is generated. Changing the complex tax laws relating to repatriation of some corporate income would also generate a projected $114.2 bn in tax revenues through 2021.

6. Eliminate tax preferences for some education expenses.

Option 15 recommends adjustment of existing tax-deferred education payment accounts, grants and loans, and certain tax preferences related to education. The proposal would generate $47.7 bn in tax revenues through 2021.

7. Child care credit.

Modifying or eliminating the child care credit would raise significant revenues if enacted. Full elimination of the child care credit would raise $116.7 in tax revenues through 2021. (In 2013, child care credit was reduced to $500 per child.)

8. Tax exclusion on interest income for state/local bonds.

Municipal bonds issued by state and local governments appeal to civic-minded investors because interest paid is currently excluded from the bondholder’s AGI. Option 17 projects $142.7 bn in tax revenues raised by 2021 if the proposal is enacted.

9. Foresight and education.

Everyone wants to know how to prepare for future tax changes and no one has a crystal ball to precisely predict which proposed tax law changes will occur in the future. The ClientWhys Tax Update Seminar puts the information needed for next tax season in hand today! Attendees spend two days interacting with “A-team” speakers (29 hours of CPE!) and receive the completely searchable “Big Book of Taxes” for daily use.

Author Bio:

Lee Reams II is the founder and CEO of ClientWhys, Inc. ClientWhys is a SAAS developer that delivers online marketing solutions to businesses built by word-of-mouth. Applications include websites for accountants, email newsletters, secure client portals and tax and financial web content.

Author’s Google+: https://plus.google.com/109145937409705134783/posts


Tips for Getting Your Finances in Order

Your FinancesIt’s that time of year again.  When we start analysing our bank statements and credit card bills, as well as reviewing the fixed rate savings, cash ISAs and personal pensions on the market.  Once the festive season has been and gone, the financial season is well and truly upon us. Yes the new financial year and ISA season is a few months down the line, but now’s the time when we vow to sort out our finances and actually stick to the plans we put in place.

Here are a few tips to help you do just that.

Review your budget – or create your first one

You can’t save if you don’t have a budget. First start by documenting all your income – this will include your monthly salary, any benefits you’re entitled to and any interest you earn on your existing savings. Then you need to track all your outgoings. Your necessary expenses such as bills, rent etc are immediately apparent, but it’s the rest of your spending which is much more difficult to keep track of. Keep a diary of your spending habits so you can track everything you spend, such as your weekly fuel costs or what you are outlaying for food, and once you start doing this it will become easy to see where you can cut back, as well as how much you can save.

Develop a strategy to pay off your debt

You need to get rid of those credit card bills and your bank overdraft. Consider transferring your credit card to one which offers incentives for balance transfers so you can start paying off the debt rather than just the interest. Set aside a lump sum each month that covers more than the interest which will mean living within your means but it will be worth it a few months down the line.

See where you can cut your necessary expenses

Car insurance and your energy bills might be necessary expenses, but it doesn’t mean you can’t look to cut down on these costs. When renewing your car insurance don’t automatically renew; if you shop around on comparison sites you may well find a better deal. The same applies to when it comes to your energy bills. If you quote your existing tariff to a new supplier they’ll always try and beat it to secure your custom. Once you do change also elect to pay by direct debit, as energy suppliers offer better rates to customers who agree up front to meet the payment deadlines.

Other ways to improve your finances include reviewing your savings accounts – whether it’s a fixed rate, instant access or a Cash ISA, as well as checking up on your pension options, whilst also reviewing your living situation, will all help.  Getting your finances in order can be a difficult process, but it’s well worth it.


How to Avoid Moving Back in With Your Parents

We’ve all been there. The awkward moment when your parents think they’re finally free of you and then you knock at their door with all your possessions.  It might be a life transition, perhaps you’re moving house or you’ve just finished university. But beware! You tell your parents, “It’ll only be for a week or so, while I find my feet”but before you know it, a year’s passed and you’re wondering why on earth you’re still lying on the sofa watching repeats of Jeremy Kyle. Whether you want to find a new home or just want to stay afloat, these are some of our top tips to avoid the dreaded move back.

Get a job

It’s best not to be picky when it comes to jobs. In fact, a lack of income means you will certainly need to move back in with your parents. Changing career or just starting one can be a tricky time and sometimes the wait can go on forever! In these situations don’t be afraid to take temporary work in bars or restaurants but if you can’t stomach endless hours in the catering world, then make sure you use your contacts. With most jobs it’s all about who you know, so if you have any friends in high places, make sure you get in touch!

Find affordable accommodation

You might have thought by this stage in your life that you’d be living in a penthouse suite over-looking the city skyline. Maybe there’s an indoor gym next door and on the roof there’s a hot-tub for all the parties you’ve been having. Think again! If you’re ever going to live independently you have to be realistic. Try and move in with friends or a partner, it’s a great way to keep costs down. If you heading out to a new city on your own, then you should definitely consider a house-share, it might get frustrating when the same unwashed pots and pans litter the side of the kitchen (we all know who it is), but it’s worth the sacrifice. You might even save some money for your own deposit in a few years time.

Relax – It’s not the end of the world

Importantly, while it’s nice to charge off into the world and achieve all your goals, life hardly ever goes to plan. So if you’re thrown a curveball and end up living at with your parents, don’t be too hard on yourself. Besides, Mums know best.


Strategies for Long-term Investing

long-term investingIn the economic environment investors have had to endure the last 4 years, it is a wonder any can look beyond their nose to see what the long-term investment future may look like. Many investors feel as if they are simultaneously juggling a bowling ball, a cat, and a lit firework and if they drop one their portfolio will suddenly disappear. Money managers and certified financial counselors are right there with them speaking as calmly and hopefully as they possibly can about staying focused in the markets without using manipulation or any other means that may land them in trouble.

The reality is that for now, long-term investing is the most sensible way to approach the markets right now. It is certainly a wise strategy for all ties, but especially now. As Warren Buffet said, and I paraphrase, “I never get into a market I cannot endure if it should close for five years.”

Perhaps the days of gravy will return when the economy stabilizes, but if the truth be known, it is not a bad time to invest. In fact in August of 2012 over $34 billion in dividends were paid out by S&P 500 companies. It is predicted that an increase of 16% will be paid out over the previous year. Yes, corporate profits have been strong, but there is so much more to your investment strategy than an immediate payoff.

What is Long-term Investing?

According to Investopedia, long-term investing is “An account on the asset side of an investor’s balance sheet that represents the investments that they intend to hold for more than a year. They may include stocks, bonds, real estate and cash.” Taking this a little further, long-term investing usually looks at least five years down the road.

Goals of Long-term Investing

Typically, most long-term investment goals are aimed at helping the investor achieve finances needed for retirement, college tuition, owning a business, and making a large purchase.

  • Retirement: Of course, investors have their own personal reasons and goals for what they want to accomplish. In fact, under retirement, almost every investor will have their own unique thoughts on what retirement looks like and what they will want to do during retirement. Retirement may include having the home paid off, being debt-free, traveling, working on one’s golf game, starting a second career without financial concerns, volunteering overseas in an orphanage, or simply relaxing on a front porch with a glass of fresh-squeezed lemonade.

An investor who is 30 now and hopes to retire by the time they are 65 have 35 years to save. Most investment counselors will say someone needs a minimum now of at least $3500 a month in income to live modestly in a non-urban area today. In 35 years, they will need a monthly income of at least $12,500.

  • College Tuition: The cost of college tuition has risen 1,120% over the last 30 years, according to a Bloomberg report. That would mean if things progress at the same rate, parents of a new child must save nearly $500,000 over the next 18 years just to pay for four years of college that now costs $10,000 a year. It is hard to imagine tuition reaching that unfathomable level, but the point is, long-term investing must also be smart as to be able to pay the academic costs that seemingly are out of control.
  • Owning a Business: The downturn in the economy these past four years has prompted inspired people to take more control of their future as we have seen a wave of entrepreneurs enter the market place However, most of these are really small companies doing less than $12,000 a year. They are more like second jobs and are subsidizing school sports, a second car, braces for teeth, or a family vacation.

However, there are others who want something larger and are willing to pay for it. Whether it is owning a Subway franchise or two or more, a small boat tour company in Alaska, a chemical research and development start up, something in technology, or a retail store, it takes capital, and lots of it. Long-term investors understand how much it will take them to start up or purchase the company they want to own and establish benchmarks along the way. Financing issues, finding the right tea to help you, hiring the right employees, location, marketplace, and more will all make up how one goes about investing.

  • A Large Purchase: There are as many large purchases in the mind of an investor as there are people. Houses and vacation homes, cars bought debt-free, weddings, boats, endowments and other financial gifts (see orphanage above), jewelry, travel, funds for grandkids, emergency medical savings, and more can all make up the designation for a large purchase.
  • By earning an MBA in finance you will learn to build a solid understanding of long-term and managerial finance through a systematic approach to financial analysis; applying techniques for planning, forecasting and managing finances; and evaluating and recommending ways to improve your organization’s financial performance. For more information about staying ahead of your finances click here.

Three Strategies for Long-term Investing

Following are three strategies for you to consider when defining, planning and executing your long-term investment goals:

1)      Safe Strategy: This is the strategy chosen by those who do not want to take risk. This will also at best grow an investor’s money the slowest. Just because it is considered “safe” does not mean it is impervious to failure. Usually it means growth will be slowest and there will be many investors in it. It is tragic to look at your statement each month expecting some radical jump in value. Safe can also mean being in an investment like natural gas that will continue to be in demand and for which the resources are great. Index mutual funds and bonds are found here also.

2)      The Faucet Strategy: This is a strategy designed to provide a decent enough return that you will be able to draw out cash occasionally, like turning on and off a faucet, without hampering the overall growth of your investment dollars and longer-term plans. These require more aggressiveness than that of the safe strategy. Investments like these include balanced funds, gold and silver, certain kinds of stocks and real estate.

3)      High Growth Strategy: This is for those who are ambitious and want their money to grow as fast as possible and are typically seeking 12% or more in portfolio growth each year. This is achievable in some economies, but not necessarily now unless you have the brilliance of Warren Buffet. Who would not want these returns But they require much more risk and loss is not uncommon until one hits. “Gambling is not for most investors who are considering retirement, college tuition, mortgages and more. A mix of sound investment combined with some exploratory capital may be wise as one’s portfolio matures,” says Chip Hutchison of the Hutchison Group Rock Hill, South Carolina.

From the writers at RevenFlo


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.


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