Posted by Linda Schultz | Comments Off on Things To Know About Credit Cards For College Students
There are many things to know about credit cards for college students. The college years are often when young people first get introduced to the concept of credit cards, as credit card providers love issuing cards to college students. Students that are getting a post-secondary education tend to wind up in higher-paying jobs with more income, and more importantly, with more discretionary income than their high-school diploma counterparts. More income means more ability to spend and charge things, and credit card providers that get college students get to possibly hook a potential customer for their entire adult life.
Advantages do exist for college students with credit cards. The ability to charge certain things and then pay them off over several months makes it far more possible to weather the financial blows that sometimes happen. The beginnings of semesters are sometimes particularly hard, when tuition, board, rooming, and fees are all sometimes due, if they are not financed through grants or student loans. Buying books for a bunch of classes can add up fast, and a credit account can mean having the financial space to absorb shocking price tags that weren’t known or in the budget and then pay it down when able over the semester after bills die down. Students of online classes and community colleges can sometimes pay for their entire education with a credit card, although the interest rates come into play here!
Another huge advantage college students get with credit cards is being able to start building a credit score. The sooner in life information starts going on their personal report, the sooner they can start getting their credit score up. While most college kids are primarily concerned with simply graduating and getting a job, possibly followed by moving back home or renting apartments after graduation, the faster they establish a credit score and start raising it, that much faster they can possibly secure a mortgage and their own home.
One advantage of graduating college with an established and/or good credit score is possibly one their parents might not be aware of. That is the fact that an increasing number of employment positions are prescreened for credit background checks. Baby Boomers might think this only happened with high-level executives and anyone in a position of financial responsibility within a company. However, members of Generation X saw this expand into any position of management at all levels within businesses, and credit checks became common for even entry-level positions involving basic cash handling. Millennials have become accustomed to the fact that certain background checks can in fact totally prevent their resume or application from even getting through software to a pair of human eyes.
Another realm of advantage about credit cards for college students is that some cards specifically only exist for college students while they are actively enrolled. Benefits vary by card but are typical advantages slanted heavily towards students and helping them through their college years.
As college students often have no credit score to speak of, secured cards are often necessary, where deposits are sent in to secure the balance of the card. Sometimes, it is necessary for parents to co-sign for a card, and while this might annoy a student, it is a good chance for parents to have influence over their yn and also teach them fiscal responsibility.
Since many college students do not make a lot of money or any, any credit cards they have during this period of time in their life need to feature low-interest rates and also hopefully low monthly payments. It’s also highly imperative that students not run up the maximum balances ever. Not only will this hurt their credit reports, but it can prove to be a problem if they need to return home for a weekend, vacation, or even an emergency or a funeral, and then find they do not have the space they need to buy an airline ticket or rent a car.
Credit cards for college students do have their advantages and disadvantages. When used properly they can help make the college experience easier, and sometimes even affordable. On the other hand, college students are still kids and can easily rack up lots of debt, either out of irresponsibility or the assumption they can pay them off after graduation, only to find out the jobs or income they were expecting were not there. While there are advantages to establishing early credit scores, and indeed this is sometimes just necessary in order to find some places of employment, there is also the potential to graduate college with a low or bad credit score, meaning fewer job opportunities, despite more urgent need of income to pay down debts.
The saddest situations are students who rack up so much debt they have to quit school to pay it down and then never wind up going back.Read More
Posted by Linda Schultz | Comments Off on How To Verify A Credit Card Number
Once you have successfully been approved for a credit card, and it has been sent to your physical location, you can activate the card so that you can use it after calling the number, or access and activation portion of their website. The card that you now have will be ready to use, and each one is designed in a specific manner. Depending upon the credit card that you have been approved for, the numbers on the card will be different, designating what type of card it actually is. If you are in the business of taking payments, you are also aware of how the different cards have different numbers. You may have to verify what type of credit card it is, and also verify the credit card number. Here are some tips on how to verify a credit card number very easily either over the phone or by using websites that can provide you with this information.
The Internet And Credit Cards
A great way to run your business, whether you are selling physical products or digital products, is to take payments using credit cards. The Internet makes it very easy for people to create a website where they can take payments, and receive the money once the transaction has gone through. Unfortunately, there are other people that do not immediately process the numbers that they are given, and this could lead to several different problems. Let’s first look at the structure of a credit card number and then how you can validate the ones that you are given to make sure they are real and not stolen.
The Structure Of A Credit Card Number
Credit card numbers typically have 16 digits, divided up into four sets of four numbers. For example, if you have an American Express credit card, this is going to be different in structure when compared to a Diners Club card, a Discover card, or a Visa or MasterCard. These numbers can be entered into a website where you are submitting your payment information. This is what the payment processing companies will use in order to debit the money from your credit line. However, if you need to verify a particular number, to make sure that it is actually a legitimate card, there are a couple of ways that you can do that.
How To Verify Or Validate Credit Card Numbers
The easiest way to verify whether or not a credit card is real is to use one of the many online checkers that are available right now. You simply have to enter in the number, all 16 digits one after the other and click the validate button. By doing so, the website can determine whether or not the card is actually valid, or if it is simply a forgery using random numbers. This is sometimes necessary when you are in business, and because of the Internet and the companies that make these validation websites, you can save yourself a lot of time when taking payments from customers.
Why Would You Have To Validate A Credit Card?
If you want to validate a credit card, it’s actually very necessary when you are taking the numbers over the phone, on your website, or at your physical place of business. There are many people that are scam artists that will provide you with fraudulent information, hoping that you will not validate or verify that the card is actually real. In most cases, the information is entered in and is automatically validated by the payment processor itself. However, if you are taking payments manually, it is a better idea to validate the numbers to make sure that the card is real so that you can later process the payment. This is only pertinent to those that are not able to immediately run the credit card through their system and are taking the word of the customer on faith. This will prevent any possibility of selling something to someone who has provided you with a fraudulent card which may lead to use losing money.
The benefit of using online credit card validation systems is that it can prevent people from being scammed. People will sometimes do anything to purchase merchandise, and they may even use a stolen card. By using these credit card validation websites, you can easily determine whether or not the person that is purchasing has a valid card, or if they are using something that is stolen or fraudulent in any way. Taking the time to validate your credit card can mean the difference between running a successful business that actually generates a significant amount of money or one where you start to lose money because you are not verifying the authenticity of the credit card numbers that you are given.Read More
Posted by Linda Schultz | Comments Off on How To Understand The Difference Between A Credit Card And Debit Card
If you have ever wondered about the difference between a credit card and a debit card, you might think that they are very similar, but in reality, they are not that similar at all. One of them has a credit limit that you can borrow up to a certain amount, whereas the other will only have the amount of money that you put into it. Both of these can be very useful when you are traveling, or simply heading to the store. Let’s look at the difference between a credit card and debit card so that you can know the difference, and also touch on the best ways to utilize them when you are purchasing different things online or at a regular store.
What Is A Credit Card?
A credit card is simply an account that you have with a bank that has issued you a credit line. The credit card that you are sent is what you will use when you are making purchases. You have probably gone to a store and used your credit card to make a purchase for things such as groceries, or purchasing something that is a physical commodity that you will use such as furniture. They can also be used to purchase things online which are digital commodities that you can download after making the purchase. They are also very necessary when you are renting a vehicle, or a hotel, and are often required before you can make these types of purchases. Credit cards are also good for building up your credit. As long as you are making your payments on time, you should have the ability to get your credit rating above 700 which will allow you to get more credit along the way. However, a debit card is very different, and it does play a vital role in your ability to purchase things regularly that you use every day.
What Is A Debit Card?
This is a card that looks very similar to a credit card and also operates in a similar way. If you go to a store, you will simply have the card scanned, but you will need to type in your pin number which you will receive from your bank. This will allow the company to go through with the transaction, debiting the money from your bank account. It is similar to writing a check in that the money that it is accessing is not a credit line, but actual funding that you have deposited into the account.
Which One Is Better?
There are some people that think that a credit card is a much better option when making purchases, and this can be true for several different reasons. As mentioned before, it can help you build your credit, but it can also help your credit rating. A debit card, on the other hand, is simply a way of transferring funds, but this does have its benefits. You will know how to budget your money accordingly, knowing that you have only a specific amount of cash to work with, whereas a credit card can sometimes have a very large limit which will cause people to overspend. This could lead to making minimum payments for many years just to pay it off. You are actually using money that you do not have. However, you can also get a credit card where you can earn frequent flyer miles or points, and in doing so, earn free hotels, flights, or even a cruise, simply by paying your bills with your credit card. Therefore, when deciding on which one is actually better, it depends on what your objectives are. If you want to build your credit up and earn free flights or car rentals, a credit card is definitely your best choice. If you want to budget your money appropriately and learn how to do so on a monthly basis, a debit card is something that is much better as you will be more frugal when you are purchasing things that you want or need.
You can obtain a credit card by submitting an application to a bank that offers them. Your credit needs to be exceptional to get higher credit limits, or even get approved. A debit card is simply given to you by your bank once you have opened up a checking account. It is only used for spending, and not for building credit or points for travel purposes, and therefore is not as useful in most cases when looking at both of these cards that are used every day.Read More
Posted by Linda Schultz | Comments Off on How Many Credit Cards Should You Have?
A lot of people are afraid of credit cards. They’ve seen people who racked up a tremendous amount of debt and are concerned that the same thing could happen to them if they’re not careful.
However, unless a person has a serious credit card addiction, people should try not to avoid credit cards outright. The right cards can help you to build credit, and can make your credit report look a lot more attractive to lenders.
So how many credit cards should a person have? Most experts say that 2-3 credit cards are advisable. This is enough to help a person build more credit, but not so much that lenders will think they have too much credit.
Keep these things in mind if you’re trying to decide what your 2-3 credit cards could be.
- Look For A Card That Offers You A Special Incentive
If you’re using a credit card, you should be trying to get more out of it than a higher credit score. If you play your cards right, your credit card could save you money, and could even earn you special perks, such as frequent flyer miles.
When you’re looking at cards, try to find one that will offer you some kind of special perk. Whether you opt for a cash back credit card or a card with some other kind of benefit, you’ll be getting the most out of the plastic in your wallet.
- Don’t Spend Money You Don’t Have
The main reason people run into problems with their credit cards is that they use them irresponsibly. They treat them like free money instead of like something they’ll need to pay back later on.
Unless you’re in an emergency situation, you shouldn’t use your credit card to pay for something you don’t have the money for. You’ll just wind up building up lots of interest.
Try to use your credit card for lots of purchases, but always pay off your balance at the end of the month. This will help you to build a healthy credit score, and will keep you from falling into debt.
- Avoid Cards With High Fees
Some cards charge annual fees to their users. This is especially true of cards that are aimed at people with poor credit.
While you don’t have to rule out every card with an annual fee, you should stay away from cards with fees that are very high. Your credit cards should be helping you, not hurting you. If your card has too many fees, it may make it difficult for you to keep your finances in order.
- Consider Making One Of Your Cards A Store Card
If you’re interested in having three cards in your wallet, think about making one of them a store card. Store cards are very easy to get, even if your credit score is very low. They also offer a lot of incentives to shoppers.
See if any of your favorite stores offer some kind of card. If they do, take a look at what the card has to offer. See if this card is something you would like to apply for.
- Don’t Get All Of Your Cards At Once
If you don’t have any credit cards right now, you shouldn’t feel as though you have to get three credit cards immediately. While 2-3 credit cards are advisable in the long term, you should try to work your way up to this point.
Start off by applying for a card that is easy to secure. Use this card regularly and raise your credit score. After some time has passed, you should be able to secure a more prestigious credit card. After that, you can decide whether or not you’d like to add a third credit card to your wallet.
It can be hard for people to figure out how many credit cards they should have. Some people may have too many while others may not have enough. As long as you aim to have 2-3 credit cards, you should be in good shape. You don’t want to overdo it, but you do want to make sure you have something to show to lenders.Read More
Posted by Linda Schultz | Comments Off on Tips For Filling Out A Credit Card Application
It goes without saying that the goal of filling out a credit card application is to get approved for a new card. Unfortunately, getting that approval can be challenging for certain cards, depending on the credit requirements and income requirements of the card issuer. There are a few things that you can do to improve your chances of getting your application accepted.
First, before you begin applying for credit cards, you should work on improving your credit score as much as possible. The higher your credit score is, the more likely your application is to be approved. Not only that but a high credit score will allow you to apply for cards that have better interest rates and more appealing perks. If you have a low credit score, you will be limited to cards that either require you to pay extremely high-interest rates or that require you to deposit money on the card before you can use it. Although these types of cards can be good for rebuilding your credit, they are not ideal from a financial perspective.
Every consumer is entitled to a free copy of their credit report each year. Before you fill out your first credit card application, request a copy of your credit report and review it to make sure that all of the information in it is accurate. Additionally, if you already have other credit cards, pay them down as much as possible at least a month before you apply for a new card. This will give your credit report time to update so that it reflects the new balances on your cards. The less of your available credit you are using, the higher your credit score will be. Ideally, you should try to be using less than 30% of the entire amount of credit that you have available to you. If you are using more than this, it could negatively impact your credit score, thus affecting your ability to qualify for a new card.
Avoid the temptation to lie when filling out a credit card application. Don’t list your income any higher than it truly is. Likewise, don’t underestimate your housing payments. Credit card companies decide on your creditworthiness and your ability to make your payments based on these figures. If you lie about them, not only are you committing fraud, but you could be putting yourself in the position of having a difficult time paying back your credit card. If your credit limit is too high and you max out your cards, you will have a hard time affording your monthly payment which can cause you to be late with payments or miss them altogether. This, in turn, can negatively impact your credit score.
Ideally, you should apply for credit cards that are a good fit for your current finances and credit score. For instance, if a particular card has a reputation of only approving people with a credit score that is above a certain point, you shouldn’t even bother applying if your credit score is too low. Otherwise, chances are your application will be rejected. There are plenty of forums and websites online that provide information on the average credit score that most credit card companies require. This can help you find card offers that are a good match for your current credit situation, improving your chances of getting approved.
Over time, as you build your credit and increase your score, you can apply for additional cards that may have lower interest rates or better perks. However, by starting out with cards that you know you can get approved for, you can get your credit journey off on the right foot. Whichever card you are approved for, just make sure to always make your payments on time and to use your credit responsibly.Read More
Posted by Linda Schultz | Comments Off on Tips To Avoid Bad Credit With Credit Cards
If you are planning on applying for a loan, student loan, or for a home, you will want to make sure that your credit report is absolutely as good as can be and that your debt level is manageable. The good news is, keeping your credit score high and avoiding bad credit with credit cards doesn’t have to be too difficult. You simply need to follow some rules and tips and you should be able to avoid bad credit with credit cards. In this article, we will be going over some of the top tips to avoid bad credit.
Tips To Avoid Bad Credit:
- Pay Your Bills.
This is perhaps one of the most important things that you can possibly do in order to not have to deal with bad credit. You are going to need to pay your bills on time – every time. The more bills that you put off, not only are you going to accrue interest and hurt your bank account, but you are also going to significantly hurt your score as it is one of the primary factors that is looked at when determining your overall score. The best way to ensure that you pay your bills on time every single time you have a bill available is by turning on ‘auto pay’ which essentially takes the amount that is due out of your checking account for you.
- Don’t Hit Your Limits.
Another thing that you will want to avoid doing is getting too close to your credit card limits. This is an important thing that you will want to take seriously because the more you spend on your card and the closer that you get to your limit, the more risk the bank is essentially going to view at providing you with credit. They are going to look and see that your spending habits are very large and this only generates more risk for them. Therefore, this can significantly reduce your score. For the best possible results, you are going to want to keep your available credit at around 70%. Meaning, do not utilize more than 30% of it. If you need to, you can simply spread around payments to different credit cards.
- Pay Your Bills In Their Entirety.
Another thing that you are going to want to do is make sure that you are paying your bills in their entirety. You want to try to pay your bills in full because if you do not, you will accrue interest on them and you are going to end up losing money as a result. Minimum payments can trap you into a never ending debt cycle. Therefore, track your spending and do not purchase anything that you are not going to be able to pay off in full at the end of the billing cycle.
- Spread Your Applications Out.
Another thing that you are going to want to do in order to keep your credit score as high as possible is to make sure that you are not applying for too much credit in too little time. If you are planning on applying for credit cards or some kind of loan, you will want to make sure to do them at the same time or completely spread out. Otherwise, lenders will wonder whether or not you are digging yourself too far into debt that you have to keep applying for more credit. They will ultimately view you as being riskier than they would like and it can impact your credit score as a whole.
As you can see, there are many different things that you are going to want to do when it comes to trying to avoid bad credit. By implementing the tips above, you should be able to position yourself to achieve a good overall credit score. Be sure that you are not utilizing too much of your available credit on any particular card. Make sure that you are not applying for cards or loans too quickly. And make sure that you are paying off each and every one of your bills in their entirety every single time. You do not want to miss payments or else you will need to pay off late payments and you are going to have to deal with interest as well.Read More
Posted by Linda Schultz | Comments Off on Is Having Credit Cards Good Or Bad For Most People?
It is always a good idea to have a credit card that you can use from time to time in order to have a backup in case you are the one money. It is also a great way to build your credit, and also earn points on different things that you would like to purchase such as airline tickets or hotel rooms. However, there is also the ongoing debate as to how many credit cards are enough, or if having credit cards at all is actually a good idea. Here are the pros and cons associated with deciding whether or not having credit cards is good or bad for most people.
Positive Reasons To Having A Credit Card
There are several positive reasons why a person should have a credit card. First and foremost, it is the best way that you can build credit when you are younger. Also, everyone can apply for and receive a small credit card, usually giving them a few hundred dollars in credit, which they can use to begin to build their credit rating. By charging a small amount and paying it off every month, you can develop your credit rating very quickly. From there, you will be able to qualify for a mortgage for a home if you want to buy one, and you could also get lines of credit for a business that you want to start. Unfortunately, this can also go the other direction. Sometimes people will spend all of their available credit and forget to pay their minimum payment on their credit card. This can be to some of the negative reasons for having a credit card, usually the result of making poor choices.
Negative Reasons To Having A Credit Card
The main reason that having a credit card is bad is that it can become a form of temptation in terms of spending beyond your means. Many people that start with a small amount of credit are often given the opportunity to get additional credit cards, and this can cause a significant problem. They will charge all of their credit cards up as high as they can go, and then they are forced to make monthly minimum payments. If that is all they do, they will never pay off the total amount, creating a negative balance with their paycheck every single month. Instead, when you are offered credit cards, you should rotate your use of them. You might want to keep a small balance on one to build credit in that manner, whereas the others you will simply pay off at the end of the month, both strategies helping you to build your credit rating.
Anyone that has a credit card can make a choice. The choice that they make is going to either make owning a credit card a good or bad decision. Credit cards are similar to owning a weapon. It can be used as a line of defense, or it can be used in an inappropriate way. In conclusion, it is definitely better to have a credit card than not to have one, especially if you ever want to build up your credit rating so that you can become a functioning member of society with a mortgage, or the ability to get a car or boat loan. It is a great way to establish yourself as a person that is trustworthy enough for lenders to provide you with these loans.Read More