5 Credit Tips for College Students

by: admin - January 26th, 2011   Filed under: Credit Card Tips

Some credit tips for college students

How we handle our credit determines to a large extent how secure we feel in our lives. College students are no exception to this rule. A large part of our financial lives depends on how good our credit ratings are. However, if students follow the credit tips mentioned below, they are less likely to face any serious problems.

1.      Follow a budget

Living on a budget is perhaps one of the most important credit tips for college students. . When a month begins, note down all your monthly expenses in the order of what you will need to pay first. Once you have fixed your priorities, pay the items from your income accordingly. Make sure that you do not spend any money on anything outside these categories till you have paid all your expenses first. Budgeting in this way serves another purpose. It increases your understanding of your own financial condition and dissuades you from spending money on unnecessary items. In this way, it reduces the possibility of a credit problem in the future.

2.      Begin a credit history

In order to begin your credit history, open your savings and checking accounts. In the next step, try using a student credit card – but only to make those purchases that you’d make anyway and then make full payments on time every month with the funds from your checking account. Daily transactions will gradually play a key role in your credit worthiness.

3.      One credit card only

 

Using only one credit card is also one of the most important credit tips for students. In fact, more than one credit is not required at all if you use it to make only planned purchases and pay it off every month. Although the limits start off quite low, they go up as you buy things and pay your bills on time. It has been observed over the years that a college student using more than one credit card is more likely to face credit troubles.

4.      Be responsible

It is also imperative that you act responsibly and pay your credit card bills on time. Remember that any failure to pay your bills on time will damage your credit for several years. So pay earlier if possible, but never late. Try to remain within the limits of your credit card as well.

5.      Check credit reports regularly

 

Remember that unscrupulous elements of this world won’t spare you just because you are a student. So make it a point to check your credit report regularly for any irregularities. You are entitled to check your credit report for free every year.

So these credit tips should be followed by every student if credit problems are to be avoided in the future.

Article Source: http://www.articlesbase.com/debt-consolidation-articles/5-credit-tips-for-college-students-485093.html

About the Author

Delray Credit Counseling offers Debt Consolidation and credit counseling. A more educated consumer is a debt free consumer.

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Can you lighten your debt load by consolidating your debts?

by: admin - November 23rd, 2010   Filed under: Debt Management

Consumer debt in America is at a record high level. With the US national debt level striking $13 trillion, most Americans are found drowning in credit card debt. If you’ve already made a debt reduction plan of your own and now you think that sticking to it is quite difficult, don’t lose heart. You can try consolidation where you can consolidate your multiple payments into a single affordable monthly payment with drastically lower interest rate. Here: http://www.debtconsolidationcare.com/ are a bunch of tips that will help you pay off your credit card balances once and forever.

1.Transfer your high interest balance to a low interest card

Have you heard of the balance transfer method as a successful way of consolidating your credit card debts? Yes, this is actually transferring your high interest balance into a low interest (often 0%) credit card. But there are some risks involved while transferring your balance. Most companies offer the low interest arte for a particular period known as the introductory period. You have to keep track over the introductory period so that you’re not subject to outrageously high interest arte as the period ends. Also watch out for the balance transfer fees. Shop around before settling on a particular balance transfer card.

2.Tap the equity accumulated in your home

If you plan to take out a home equity loan or a home equity line of credit, you’ll be able to enjoy the benefits of drastically lower interest rates and longer repayment term. Since you’re taking out a secured loan in order to consolidate the unsecured loans, you will certainly get lower interest rates. You will also get some tax benefits on a home equity loan. But you need to be extra watchful while consolidating your unsecured debts into a secured loan. Since you’ve used your house as collateral, you must be able to make regular and timely payments on your loan to avoid the risk of losing your home to foreclosure.

3.Consolidate your credit card bills through a debt consolidation program

The last way in which you can consolidate your credit card debts is through a debt consolidation program. As you enroll yourself with a debt consolidation program, your debt consultant will try to lower the interest rates and the monthly payments on your loans. This will also allow you to make a single monthly payment to the debt consolidation company and relieve you of the stress of making multiple payments.

Therefore, if you’re looking for ways to eliminate your debt burden, you can easily seek the help of consolidation services. Consider the tips mentioned above so that you can get back a grip on your finances soon.

Author: Charles Anderson

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How To Get The Best Mortgage Loan Rate With Bad Credit

by: admin - July 6th, 2010   Filed under: Mortgage Tips

For most people, applying for a mortgage loan to buy a house is one of the biggest and the toughest lifetime financial exercise. It gets even more difficult for those who have had a bad credit history. Even though people with bad credit are at a disadvantage, lenders do recognize their financial problems and needs and offer them mortgage deals that might not be the best but which at least provide them with an opportunity to own a home.

In order to get the best possible mortgage options, a borrower has to impress upon a lender that in spite of a bad past, he is financially responsible. To convince the lender of your credibility, the foremost thing to do before applying for a mortgage loan is to start clearing the red flags that mark your credit report. Begin by reducing your credit card debts as much as possible. Similarly pay off other debts like car loans or auto debts, particularly if they have more than 9 monthly installments left, since auto debts with less than 9 payments are generally excluded from debt calculations.

The next best thing to do is start saving big for a good size down payment on your home. Since you fall in the bad risk category for a lender, the bigger the down payment, the more it assures the lender of being able to recover his cash in the event of a future default. Do remember to include closing costs when saving for your down payment as they can add as much as 3% to the purchase price. Overall, saving more than 20% of the total purchase price should improve your credibility.

The borrower should target and reduce his monthly liabilities to less than 50% of his total income in order to give confidence to the lender about his ability to repay his mortgage loan without any defaults. It is never to late to get into better financial habits, like reducing the use of credit cards and postponing large purchases. At this point of time, it is wise to hold on to your present job and not make any unnecessary jumps. A steady employment of over two years adds to your image as a consistent and stable person.

Lenders will go through your bank statements to figure out your expenses and incomes. Any unusual entry may raise question marks. If a friend or family member gifts you money to help you purchase your house, make sure the lender know it is a gift and not another loan. Reveal all your liquid and cash reserves that you own since lenders judge your paying capacity from them and generally prefer that they have at least two month’s reserve of the monthly mortgage payments.

Last but not the least, even factors like prompt payment of house rents, phone bills, insurance premiums and other financial bills add to your credit worthiness. Finally, even after you have spruced up your credit image, make sure to approach more than one lender and compare their lending terms and conditions in order to get the best mortgage loan.

About the Author:  Pat Witt
Find tips about bee traps and drone bee at the Bee Problem website.
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