Student Credit Card and Credit Education Blog

While we use them on a regular basis and usually take them for granted, there are certainly ways that they can be improved upon. Some have confusing benefits, while some don’t always work how they’re supposed to. Here are a few areas where I believe they can be even more beneficial to their customers.

Make it easier for more stores to accept a wider variety of cards - I’ve heard that American Express charges merchants a higher surcharge rather than a Visa. Why? Does it really offer that much more in terms of benefits? If they were to even out the surcharge with the other cards, would the new business balance the lost surcharge revenue?

Simplify the stolen credit card process - Who has all the numbers to their credit card companies? If your wallet is lost or stolen, it may take you a day to cancel your cards, if it takes you that long to realize your wallet is missing. In that time period, the thief or person who found your card may have drummed up a great deal of charges. You would then have to deal with removing them from your record. How about instead of making 5 or so calls; maybe just one? A company could offer a service to handle this arduous undertaking.

Better explanation of benefits - Credit card companies seem to provide a lot of bonuses for their customers. Insurance services. Product discounts. Extended warranties. How about a list of these on a regular basis? You have my email address - use it!

There are a great deal of choices when it comes to choosing your “weapon of plastic” (a.k.a. credit card). I’ve went over some before but let’s take another look at the list and pick out some more highlights.

American Express SimplyCash Business Card - Even though it says it’s a “business” card, I don’t know if you really must have one to get this card - I know Dell Small Business doesn’t. If they don’t as well, then it’s definitely worth applying for. You get a 5% rebate on gas, office supplies, and wireless services (i.e., cell phone bill) and 1% on everything else. Having the 5% back for gas is great for those who drive a lot. Even better, the rebate is automatically applied to your subsequent bill each month. Some cards (like the AmEx Blue Cash) only provide the credit once a year, so this is a great benefit of the SimplyCash.

Chase Perfectcard Mastercard - Another solid gas rebate card. You get 6% back on your gas purchases for the first 90 days and 3% after that. All other purchases provide a 1% rebate, which is applied to the next month’s bill. If you’re not able to get the AmEx SimplyCash card, then this one should also be at the top of your list.

Also, we’ve created a new section of StudentPlatinum.com to provide our visitors with an easier way to sift through the variety of credit cards we offer.
With this new page, you now have the ability to sort through cards that carry specific features. Only looking for cards with a certain APR? Or only one that supplies airline miles? Now, you can do so!

Continuing from last post, you may be at the stage where you have purchased some stock and are debating whether or not you should sell.

Before you do, take a look at these important factors:

Keep your wits about you with the stock market. Don’t go crazy, buy what you know and what’s been around, and you should do just fine!

While in college, the existence of disposable income is quite rare. However, if you are in this situation, through a co-op or summer job, or just graduated school and are beginning your first year of employment, you may wonder what to do with the savings you accumulate. Of course rent, utilities, credit card, and student loan bills take precedence - but after all that, let’s say you want to play the stock market.

First, you need a way of buying them. You can always call up Charles Schwab and hire a broker, but the volume you’ll be buying in won’t warrant such a luxury (or expense). So, sites like Fidelity, eTrade, TD Ameritrade, etc are all great places to get your feet wet. The trade costs are relatively low and the sites are fairly easy to use.

Second, what should you buy? There are probably 1,000 books and 10 times as many websites which attempt to answer this question. My thoughts towards this is if you don’t need this money for a period of time (a.k.a. 10 years) you most likely won’t get burned by picking up companies within the Fortune 500 list. I say “most likely” because of situations like Enron and Sun Microsystems (went from 60 to 5 and hasn’t rebounded in 6 years). So, peruse through the list and pick out a few that you have some knowledge of. Also, it’s actually better to pick them up after a recent decrease or downward trend. Consider them “on sale” since due to their size, they should come back at some point.

Third, you’ve got a few, and maybe one of them went up a few bucks - should you cash in? This is based on a few factors - necessity, commission cost, capital gains taxes - all of which we’ll go into next time…

You just got a part-time job for the summer (or are starting your first full-time position). Someone from HR provides you with a benefits packet. You glance through it and try to make sense of it all - Health insurance? Got it. Life insurance? OK. Vacation days? Definitely. 401k plan? Ummm..huh?

The 401k is something you should certainly understand. It’s an investment plan that allows you to take pre-taxed money and deposit it into a separate account for your retirement (or at least until you are 59 1/2.). Usually, your company will provide you with a series of investment options - these will most likely include a variety of mutual funds or company stock. Once you reach the withdrawing age, you should then have a great deal more money because you’ll have the initial principal you invested plus all the interest you earned from your investments in mutual funds, stock, etc. Since your money isn’t taxed when you make the initial deposits, you are taxed at whatever your income tax rate is when you withdraw - ideally, a much lower amount than when you were working.

Sounds complicated - what’s so great about all this?

There are a number of reasons why you should participate:
1) Many, many companies offer a company match. This means that if you contribute 3% of your salary to your 401k, the company will also contribute 3% (or whatever their matching policy is). So, if you add $50 a month, your company may also add $50 to your account. Yes, this is free money!! Yes, you should take advantage whenever you can!!

Why do they do this? Because saving for your future is very important and most companies understand this. Therefore, assisting their employees boosts morale = happier employees = better productivity.

2) The fact that the money is deposited on a pre-tax basis means that you’ll actually get more money than if you just threw your post-tax money into stocks or a savings account. Say you’re in a 30% tax bracket, and your gross pay is $1,200. If you sock 3% of your paycheck into a 401k account, that $36 you’ve saved isn’t hit at the 30% tax rate. Very nice.

3) If needed, you can use this money in an emergency. You’ll be penalized a bit but if you need the money, you need the money.

Clearly, the company match is the main reason why workers participate in this program. And, if your company is one of them, there’s no reason why you shouldn’t either. It’s free money!

Want more info on 401ks? Visit Fidelity or Wikipedia.

As Americans, we love our options. Dunkin Donuts or Starbucks. McDonalds or Wendy’s. For that matter, Biggie-sized or regular. It can be tough to decide.

The same goes for your credit card decisions. Visa or American Express? Debit or credit?Pay an annual fee? Or, which type of reward card should you get - points, miles, or cash back?

Everyone has a preference here. Those who swear by specific brands (say, Delta or Starwood) and only participate in flights and stays with these brands may wish to look more closely as cards which provide airline miles or hotel stays. In addition, frequent use of this card can sometimes provide you with a complimentary upgrade to a better class of airfare or hotel room. However, if you were to use mileage, it can sometimes take quite a bit of spending before you can get any of these high-end bonuses. Also, virtually all of these types of cards carry an annual fee, which is usually between $50 and $100 per year. So, minimal usage (and subsequent rewards) will be negated by the annual fee.

Additionally, you can get a card that provides “points” for you to spend within their array of merchants. One example, is the Citi Diamond Preferred Rewards Card. The variety of goods you can get range from electronics to gift cards. However, sometimes the rate from dollar spent to item purchased can be high. On the lighter side of your wallet, these types of cards rarely carry an annual fee.

Finally, there is the straight cash back card (such as the American Express Blue or Chase PerfectCard) which give you a percentage of your spending back as either a check or applied against your balance. These cards are my preference, as they allow you to do what you want with the money you earn. Also, you generally receive a higher percentage back for certain purchases. The aforementioned Blue Cash, gives you bonuses for groceries, drugstores and gas. For these, it starts at 1.5% but goes up to 5% once you reach an annual spend of $6,500. The PerfectCard simply focuses on gas, but provides you with a great 6% back for the first 90 days, and 3% afterwards. An excellent choice for those with long car-based commutes.

Again, there are many, many options. But, do your research on credit card offers and choose what you feel best matches your spending habits.