Student Credit Card and Credit Education Blog

There are two things I want you to do next time you speak with your credit card company.

1) Ask them if they apply your payments to the lowest interest portion of your balance first, and

2) Ask them if they raise your interest rate on outstanding balances.

Under the Credit Card Accountability, Responsibility, and Disclosure Act passed in May banks are no longer able to get away with this.   The Act is supposed to be officially in place by February but consumer complaints may expedite the full enforcement of the Act by December 1.

As we approach the half way mark of the semester many college students are finding they are tapped for funds. This is nothing new of course as poor and college students go together like rhythm and blues. Still, it’s tough when you’re living for today with minimal means while planning for tomorrow, which is what college is all about. Toss in an occasional $25 overdraft charge and it feels like you’ll never be able to climb out of that financial ditch.

It’s embarrassing to admit but when I was in college I used to gather loose change from underneath the seat cushions of the couch in the common area. There was nothing like the taste of a Pepsi I didn’t have to pay for, and sadly couldn’t pay for. But it doesn’t have to be that way for you. There are ways to bridge the gap between now and your winter break when most students grab some seasonal work. A credit card by Citi can serve as your best friend over the short term.

The real key to credit card discipline is identifying needs and wants and only using it for the needs. Unfortunately that line sometimes gets blurred by many young adults which leads to a sizable credit card balance. Charging a $299 PS3 system on your credit card is clearly a want and not a sensible purchase while using your card for such essentials as gas and food is a reasonable need. Still, if you don’t trust yourself completely you may want to request a lower line of credit or set a credit limit alert for yourself, which Citi offers to all its cardholders.

The credit limit alert system is great because it sends you an immediate email notification if you are getting close to your credit limit. It really is a terrific way of monitoring yourself. With a modest line of credit and a credit line alert you will ensure you’re in control of your spending.

College is stressful enough without wondering if you can make it from here to there because your tank is buried on “E” or stressing out over how much money is left on your credit line. Just think of Citi as the perfect last line of defense. Oh yeah, and as an added perk you can earn points as you spend to use toward gift cards, concert tickets, video games, airline tickets, mp3 players, DVD’s and much more. Qualified applicants can even score a 0% APR on purchases and balance transfer balances for the first 6 months.

So if the seat cushions at your school come up bare now you know you have another option.

The best college cards for students: Citi mtvU & Citi Forward card

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Knowing the formal process involved in disputing a charge on your credit report is of paramount importance. You obviously want to move quickly to correct the situation and gain back those valuable credit points that have been stripped from you.

Your credit score can either serve as your best friend or your worst enemy as it is used when considering leases, loans, and employment. The funny thing is that for something so important we seem to treat it like a rusty old bike in the backyard; we pay little mind to it at all.

In contrast we protect the contents of our homes by locking the door, have alarms installed in our automobiles, and even put little fences around our gardens to fend off predators from feasting on our tomatoes and cucumbers. There is also a way you can protect your credit score, which we discuss later in this blog, but for now lets focus on your five step plan for disputing a charge on your credit report.

Step 1: Contact the three major credit bureau’s: Trans Union, Equifax, and Experian and place a fraud alert on your credit report. That way if anyone tries to open up a new line of credit under your name the lender will notify you, though it is not required by law for them to do so.

Step 2: File a dispute with each of the three bureau’s (response generally takes between 30-45 days while your claim is being investigated). It is best to submit your dispute in writing with any documents you have on file to support your position.

Step 3: Send a dispute notification in writing to the creditor whom you are disputing the item.

Step 4: Send your disputes certified mail, “return receipt requested” so you can document that your letters were received.

Step 5: Ask the consumer reporting companies to send notices of correction to anyone who received your report in the past six months, assuming you have a favorable result (they will only do this if you ask).

Finally, you may want to consider protecting yourself with a service like myFICO score Watch which serves as your personal safeguard by alerting you immediately when there is a change or query into your credit.

myFICO Score Watch Benefits

• Monitors important changes to your FICO
• Provides timely alerts when important changes are detected
• Easy-to-read view of how lenders see you and items affecting your score
• Alerts you when you might qualify for better interest rates on loans

You can never have too much protection. Find out what all the hype is about with a 100% Risk-Free 30-Day FREE Trial!

Credit card theft is something we are all weary of, but do we do enough to protect ourselves? A former colleague of mine was a victim of credit card theft this past May. Fortunately for her she picked up on the fraudulent activity within days of the card being compromised after calling to get an account balance. It’s a scary thing when someone breaks into your safe haven.

Just last month the Department of Justice announced that more than 130 million credit and debit card numbers were allegedly stolen by a group of hackers. They designed a program that was able to find its way around a network’s firewall to steal credit and debit card information. This effected Hannaford’s, 7-Eleven, and Heartland Payment Services customers. Inevitably it will happen again, but there are some things you can do to protect yourself.

Protection Tips

• Call and request a new credit card number from your lending bank every two years. The reason it’s important to change your account number and not just cancel your card and apply for a new one is because the length of time you stay with a credit card company is counted positively toward your FICO score.
• Become more vigilant. Check out your account statement once a week online or make a quick call to ensure the balance is consistent to where you believe it should be.
• Don’t ever write your entire account number on a check if you are manually sending in a payment. The last four numbers are sufficient. The billing department will be able to match your name and cross reference the last four numbers to apply your payment.
• An alert service is great to have for several reasons. If you have a credit card that you seldom use you may not realize it has been compromised. If the perpetrator changed the billing address you’d never even receive a statement. That would in turn lead to missed payments and a poor FICO score. Nowadays you can sample a service for FREE and see what you think. It’s nice to have that insurance in your back pocket.

All it takes is a few simple steps to help keep you one step ahead of the hackers.

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While your top priority is scoring well on exams, there is no reason you can’t kill two birds with one stone and enhance your credit score at the same time. With a little knowledge and know how you can make it happen.

How to build credit while in school

• Auto debit: Instead of paying for your books in cash charge them on your credit card and setup a reoccurring auto debit for several months until the books are paid in full. It may cost you an additional $15-$25 in interest over that time but you will be saving yourself money in the long run.
• Don’t sign up: You may see several credit card companies on campus this fall chasing you down with a free t-shirt to sign up for their card, and though it may help you put off laundry one more day, don’t do it. Multiple queries into your credit are not favorable. In fact, they can actually decrease your credit score.
• Low balance: Keep your balance relatively low in relation to your total credit line. By keeping a favorable debt to credit line ratio you will score valuable points.
• Keep one card: Don’t bounce from card to card or stockpile multiple cards. Keeping one card for an extended period of time holds significantly more value than hoping around.
• General purchases: Credit cards are great for everyday purchases like groceries and gas, provided you can pay them off at months end. Again, it’s all about getting on the grid and displaying a positive credit history.

Check out the BEST credit cards for students »

When is your credit score most commonly viewed

• When applying for a credit card
• When leasing an apartment or buying a house
• When purchasing a car
• When taking out any type of loan (personal, equity, etc)
• When applying for employment for many professions

• Learn how to improve your credit score »

Can a prepaid card help me build credit?

No. You need to have an actual credit line extended to you to strengthen your credit score. You don’t actually borrow money with a debit card. Building good credit is all about borrowing money and making on time payments. As you establish a positive credit history your credit score will rise and your interest rate will drop. That said, debit cards are a good way to get your feet wet.

Debit cards work the same as a credit card in the sense that you can make purchases online, over the phone, and in stores. You can also take cash withdrawals from ATM’s. If your parents are steadfast against you having a credit card you may want to suggest a prepaid card to prove to them how responsible you are before graduating to a credit card.

• APPLY NOW for a prepaid card »

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Do you feel colleges do enough to educate students on responsible finance? Do you believe part of your core curriculum should include a credit card class which goes over the basics?

I recall my core curriculum included an art class, but since I was not gravitating toward that career direction I would have much preferred a Credit Card 101 class instead. Heck, even algebra is something I don’t use in the “real world.” I wouldn’t mind if they scratched that one either.

What do you think? Would Credit Card 101 be a good idea? Sound off!

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Two steps forward and three steps back. That’s where we are in todays world when it comes to responsible credit for young adults.

Under the new credit card law which goes into effect early next year parents to those children under 21 will have to agree to take responsibility of their kid’s credit cards, pending and income threshold requirement. Where is the lesson in that? That Mom and Dad will always be there to bail you out?

In order to raise responsible adults you need to take the training wheels off and let them learn some valuable life lessons now while the stakes are low. Maxing out a $500 credit card is far better than maxing out a $5,000 card when they’re twenty-five.

Educate and teach them responsible finance now while they are in college. Enlighten them to the future implications of their poor choices should they elect to act irresponsibly. Be honest and tell them if they hope to lease an apartment, take out a car loan, or even secure a job that their credit will be an important factor.

Do what’s right now, so they don’t do what’s wrong later.

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As a Citi carholder I’m embarrassed to admit I had no idea what the Citi Private Pass was or how I could benefit from it until recently. In fact, it may be the best kept secret in the industry, but that’s all about to change. I want to make sure all my Citi friends cash in on the incredible benefits, namely $5 tickets to one of the hot concerts of the summer!

Now through the end of August Citi has teamed up with Live Nation to offer its valued members lawn seats for just 5 bucks to shows like Depeche Mode, blink-182, Crue Fest 2, Nickelback, Mayhem, Festival, and The Fray among others! This deal is open to all Citi cardmembers. Simply visit the official private pass site to retain the access code which allows you to buy $5 tickets! How easy is that?

The unprecedented access Citi cardholders enjoy with their private pass is second to none.

Citi Card members – Become a Private Pass member today and let the savings begin!

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Your FICO score is more important than your SAT score. Ok, we could probably debate the merits of that claim, but the fact is that debate is worth having given how your credit score effects every major purchase in your life.

My Dad helped me build my credit when I was 18 by co-signing a $500 loan for me that I didn’t even need. He instructed me to make the monthly payment consistently to help build my credit, and even kicked in the extra $70 of accrued interest at the end. I didn’t appreciate what he was doing at the time, but two years later when I wanted to purchase a new vehicle I was able to secure the loan by myself. My credit history told the bank I was worthy and responsible. I was independent at 20.

Clearly establishing positive credit history is one of the most important things you can do for yourself, but if you don’t protect your FICO score all your hard work could be vanquished in an instant. That’s why myFICO Score Watch is so important. MyFICO Score Watch serves as your personal safeguard by alerting you immediately when there is a change or query into your credit.

myFICO Score Watch Benefits

• Monitors important changes to your FICO
• Provides timely alerts when important changes are detected
• Easy-to-read view of how lenders see you and items affecting your score
• Alerts you when you might qualify for better interest rates on loans

You can never have too much protection. Find out what all the hype is about with a 100% Risk-Free 30-Day FREE Trial!

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I’m sure you have heard about your credit score before.  If you’re like me, this probably is not playing a very important part of your college life.  When I was in school a few years back, my credit score was probably the least of my worries.  Now, 3 years later, it is on my mind all the time.  I’ll explain why – first, ask yourself the following questions:

Do you plan on purchasing a home in the next 5-10 years?

Do you plan on purchasing a vehicle in the next 5-10 years?

Do you plan on landing a decent job?

Do you plan on renting an apartment?

If you answered yes to ANY of the above questions, guess what, your likley to need a good credit score.  With the recent economic changes in our country, it is now more important then ever.  Don’t hesitate, find out what your score is today, and aim to improve that by 100+ points by the time you graduate.  You will thank yourself – TRUST ME!

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