Student Credit Card and Credit Education Blog

Re-aging is something more and more credit card companies are agreeing to do with their delinquent cardholders. It’s not something they broadcast, but if you ask they may hook you up.

Re-aging is a technique used to clean up your credit history, particularly if you had a brief problem and you’re back in control.

Here’s how it works. Say you’re behind or were behind in your payments by a few months, under the re-aging process the credit card company would agree to wipe away the late payments and fees if you agreed to a new payment amount or agreed to send in a large payment immediately.

Why is it useful? It helps to have those late marks removed from your record because they weigh down your overall FICO score.

You have absolutely nothing to lose by asking.

Did you know that credit card regulations require a credit card company to write off debt which has been delinquent for 6 months?  Now you probably understand why you get those harassing calls almost immediately after you’re late with just one payment.  There is major incentive for these companies to collect that debt quickly.

American’s are now nearly a trillion dollars in credit card debt, and, according to an April Nilson report, 15% of Americans have been late with a credit card payment.  Those are scary numbers for lenders, but good for you.

Call your credit card company and wheel and deal if you’ve been having trouble making payments.  Armed with your new found knowledge (6 month rule) you know they will be anxious to collect as much of the debt as they possibly can before the six month mark strikes.

They may forgive a major portion of your debt if you agree to an accelerated payment plan.

May saw another record topple down, but not in a good way. U.S. credit card defaults rose to record highs last month.

Delinquency rates, an indicator of future credit losses, fell across the board which was great. But the more sobering news was that this drop was expected. It is typical based on seasonal data for delinquency rates to drop this time of year as a large percentage of people allocate tax return dollars to due or past due balances. Unfortunately delinquency rates are expected to be on the upswing again in the coming months.

Perhaps the most important indicator that more unsettled times loom ahead is the unemployment rate which has increased steadily over the past 14 months from 5% in April of 2008 to 9.4% today. Many of the unemployed are using their credit cards like debit cards and running up astronomical bills they know they can not repay, at least not at this time.

I can’t really say I blame those who are charging every penny available to them either. The pastic serves as a neceassry evil. When the choice is between don’t eat or charge groceries I know which one I’m picking. Credit cards serve as a means to an end for so many. Economist say we are poised for 2010 turnaround - can we hit fast forward to January 1 please?

Regulations are going to get a whole lot tougher in the credit card industry beginning next year.  The changes center around more transparency, which means a lot of companies will be altering their terms of agreements and incentive programs.

If you have accumulated reward points on an existing account, consider cashing them in sooner rather than later. Some credit card companies have hinted that they may terminate or significantly change their rewards system.

I have a Visa card that accrues Disney points, so I better move fast if I want that Donald Duck lithograph.

The Credit Card Accountability Responsibility and Disclosure Act of 2009, which amends the Truth in Lending Act to establish fair and transparent practices relating to the extension of credit, has added benefits designed to protect consumers.

In this bill college students in particular have been singled out for special treatment.  Below are a few of the changes on the horizon which are scheduled to take hold in February 2010.

• Prohibits extensions of credit to consumers under age 18, unless they are emancipated under state law, or the consumer’s parent or legal guardian is designated as the primary account holder. Minors are allowed to have a credit card in their name on a parent or legal guardian’s account.

For full-time or part-time students attending an institution of higher education who are between 18 and 21 years of age, the legislation reads:

• Limits the credit line from any one credit card to the greater of 20 percent of annual income or $500, unless there is a co-signer.

• Limits the total credit line from all credit card sources to 30 percent of annual income, unless there is a co-signer.

• If there is a co-signer, requires written co-signer approval before granting any increase in credit line.

• Prohibits creditors from granting more than one credit card account to college students who have no verifiable annual gross income and already have a credit card account with that creditor, or any of its affiliates.

With all these changes in the pipeline it may be prudent to apply for a student credit card sooner rather than later.

Did you know that you as a consumer are entitled to receive a free statutory credit file disclsoure from a credit reporting company?

The Fair and Accurate Credit Transactions Act (FACT) allows consumers to get one free comprehensive disclosure of all of the information in their credit file from each of the three national credit reporting agencies once every twelve months through a Central Source. Consumers are also entitled to a free credit file disclosure if they: 1) have been denied credit, insurance or employment as a result of their credit report, 2) believe Identity Fraud has resulted in inaccuracies on their report, 3) will be applying for unemployment or 4) are receiving welfare assistance. The Fair Credit Reporting Act mandates that consumers who have been denied credit have the right to a free credit file disclosure.

If your pleas to convince Mom and Dad that you’re responsible, and that you will not abuse a credit card or debit card have been met with sadistic laughter and your least favorite word, “No,” than perhaps it’s time to try a new strategy. Look at things through their eyes.

They were young once too (believe it or not) and felt the temptations of the mighty plastic themselves. They know how easy it is to run up a huge debt or deplete a savings account. They basically view your request as another bill they’ll have to pay in a time when most are trying to pay down outstanding balances and ride out the economic storm. What I would suggest doing is to speak their language. Tell them about the Discover Teen Prepaid Debit Card with built-in parental controls. It’s not only great for you, but probably your best chance at getting your own debit card and proving just how responsible you are.

Why it’s great for Teens

• No previous credit needed
• Make purchases online, over the phone, & in stores
• Withdraw cash from ATM’s
• Exclusive discounts at your favorite merchants
• Unique card designs

Why it’s great for Parents

• Easily to add funds from a credit card or bank account
• No APR
• Daily, Weekly, and monthly Spending limit management
• Restrict use in unwanted shopping categories (e.g. Liquor Stores, Tobacco Stores, Hotels, etc)

Additional Card Details

• $0 Fraud liability (safe way to keep and spend money)
• Free Direct Deposit for Parents and Teens
• $5 monthly fee or $50 annually

Discover’s prepaid card really is a win-win for all. Teens get the financial independence they crave (up to the maximum on the debit card of course) while parents maintain control over the daily, weekly, and monthly limits, as well as the shopping categories.

Teens and parents don’t see eye to eye on many things, so relish this rare moment of nirvana.

Special code for scholarshippoints.com members: LUVPREPAY

With a federally charted pedigree firm in hand, and safeguards to ensure safety and privacy for their customers that would make ADT quiver with envy, it’s easy to overlook the extraordinary benefits ING extends to its valued customers.

Take ING’s world class checking account, which is one of the best in the market today. I converted at the end of last year, and got my old school Dad to see the light last month (read the blog post here). The only regret I have is that I didn’t do it sooner. Below I’ve listed the top 5 reasons ING checking accounts kick butt.

1. Earn Interest

That’s right. A checking account that earns interest. Depending on the amount you have in your checking account you may earn from 0.24% to 1.63%.

2. Overdraft Protection

I’ve been hit with a few $30.00 overdraft charges in my day, which made this benefit very appealing to me. ING doesn’t charge you a flat fee, provided you fall within your qualified protection line. Here is how it works: let’s say you have a $200 protection line and buy a computer for $800, while only having $650 in your account. The $150 will be pulled from your protection line and then you will pay interest (based on the ING Prime rate) on that $150 until your next deposit is made. Pretty sweet deal. We all make mistakes, but it’s good to know with ING it won’t cost you a steak dinner.

3. Free Bill Pay

Say goodbye to paper bills and checks. Bill Pay works like a wire transfer. If the business you want to send payments to is set up with the popular Bill Pay banking system ING will simply transfer money electronically to that business. You can expect payment to arrive within 3-5 business days.

4. Send Paper Checks

Writing out checks from home, putting a stamp on the envelope (stamps just went up to 44 cents by the way), and mailing them out is so archaic. If the business you want to send payments too is not set up with Bill Pay this is your next best option. It works just like a paper checkbook, only you are writing them online and it doesn’t cost you a dime. The check is then sent out first-class the next business day.

5. Free ATM

You can access your cash for free at over 35,000 Allpointâ„¢ ATM’s nationwide. Allpointâ„¢ is America’s largest Surcharge-Free ATM Network and is located in all 50 states.

So if your aim is to save time each month, while keeping more money in your pocket, your search is over. The ING checking account is the perfect fit for you. The proof is right there in the pudding. And the pudding tastes oh so good.

Open a FREE ING Checking Account Now!

Scholarshippoints.com members can enter the code INGFORME for 15 mouth watering points to apply toward monthly scholarships ranging from $500 to $10,000!!!

“I know training this old dog wasn’t easy.” That’s a direct quote from my Dad after I converted him over to an ING Checking account last month. You should know getting my Dad to do anything new (with the exception of venturing off to a new restaurant) is a daunting task. In fact, he still wears the same plaid shirt he wore to my high school graduation 16 years ago. If it’s not broke, don’t fix it has always been his belief in many facets of life. So when I tried to convert him to the world of online checking I knew he would look at me as if I was asking him to write a thesis on quantum physics.

Still, because I am his son, he placated me and heard out the reasons I believed it would benefit him. After I was done my jaw nearly dropped when he said, how do I get started? Although now that I look back I guess I really shouldn’t have been all that surprised. I knew what his concerns were and addressed them immediately.

As an old school guy the whole online banking concept scared my Dad because of the identity theft potential. He pictured some computer Wiz Kid hacking into his account, much like Ferris Bueller did when he changed his absentee record, and stealing all his money. Knowing this I reminded him that he’s been purchasing gifts online for friends and family with his credit card for nearly 4 years issue free. He hadn’t done it sooner because he feared his card number may get stolen. But more importantly I read ING’s Privacy Policy in advance and knew the proper precautions had been taken.

The ING Checking account has two safeguards in place to ensure safety and privacy. They have implemented security standards and processes-including physical, electronic and procedural safeguards. They also limit access to customer information to employees, registered representatives or agents who may need it to do their job only. No other company, including affiliates, have access to borrowers personal details.

Another hot button issue for him was if ING was a federally chartered bank, and the answer is yes. Deposits are insured up to $250,000 per depositor just as they are at any federally chartered bank you walk into.

So with security and insurance questions out of the way it was time for me to turn my focus to the cool benefits that I knew he’d love.

Continue here…

Open a FREE ING Checking Account Now!

We all want to be like Kelly Clarkson, Miss Independent, and do things on our own. We want to hang out with the friends of our choosing, come home when we see fit, and basically do whatever we want, short of breaking the law of course.

I imagine it’s especially tough for those students who live on campus during the school year and taste freedom, only to come home for the summer and adhere to curfews and required phone calls to Mom as to your whereabouts. But that’s only half of the independent puzzle. Financial independence is also something we all strive for.

When I was first starting out my Dad had me take out a $500 personal loan I didn’t need. I was the primary borrower and he was the co-signer. He gave me the $500 and instructed me to make the monthly payments each month for one year until the debt was paid off. He even kicked me the seventy-seven dollars in accrued interest on the loan. Can you say best Dad ever! Needless-to-say those 12 months of consistent, on time payments catapulted my FICO score and launched my independent plastic career.

Unfortunately with the current state of affairs many parents can not co-sign a loan for their children, which is why a prepaid visa card serves as the perfect do it yourself alternative.

The Vision Silver Prepaid MasterCard, issued by MetaBank, is a stored value card designed for those who may have difficulty in obtaining a standard unsecured credit card on their own. Prepaid cards require payments in advance, which are then used to offset future purchases made with the card. At this point you may be wondering, what’s the point then? If I have the cash upfront I can just pay for the item in the store, which is true, but that doesn’t help you establish credit which is our aim.

It is important to note that there are some fees associated with this card. There is an account set up fee of $9.95 (waived with direct deposit loads) and a low monthly participation fee of $3.95. Basically you are paying to establish credit, just as I did with the $77 dollars in interest on the $500 loan, and just as I do when I make my monthly credit card payments with a 12% APR. There is no additional charge for U.S. purchases.

It’s also common for stored value cards to lack benefits; however, this card does offer a free bill pay service (for the first seven transactions each month) and access to a free credit builder service, which reports bill payment information to a national credit reporting agency on your behalf. I know that some of you feel like you are doing it alone, and that your parents are either not willing or able to assist. You are alone no more.

For scholarshippoints members enter code PREPAIDME for 15 magical points to use toward monthly scholarship opportunities!