Student Credit Card and Credit Education Blog

Risk exposes you to the chance of something bad happening to you, but educating yourself is your best weapon at your disposal to minimize that risk.

Billionaire Warren Buffet, who was named the richest man in the world by Forbes in 2008 with an estimated net worth of 62 billion at the time once said, “Risk comes from not knowing what you’re doing.”  Don’t blindly walk through life taking advice from people.  Educate yourself.  Whether is it about credit cards, 401K plans, 529 accounts, an IRA, or anything else.

Everything is kind of scary until you do your homework and become informed.  StudentPlatinum is an excellent resource for anyone wanting to become risk averse as it is chalked full of great information.   You can even post queries in the StudentPlatinum Forum where our experts will guide you.

Turn that risk into certainty!

Improving your credit score is a hot topic these days. Several weeks ago I posted an article entitled Would You Rather Have a Higher FICO or SAT Score. And while the views were mixed on which was more important all agreed that both were equally relevant. Of course this is not an either/or proposition. You can have your cake an eat it too. Most just need a little guidance.

Generally speaking students know how to improve their SAT score, but are unsure how to go about building a solid credit foundation. There are some simple steps you can take to build your credit score while in school, but there are also some professional organizations you can use to check your FICO score and monitor changes in your account for free.

The first step is to get a copy of your credit report. Once you have your baseline you can form a plan of attack. If you need to fix or repair your credit there are services available to assist you. If you have limited to no credit, work on strengthening it. It’s your future. Make it a bright one.

GET STARTED today!

A common misnomer is that lending institutions want you to be in debt, but that couldn’t be further from the truth.

When banks, lenders, and credit card companies lend funds they fully expect to get them back. They are not in the business of losing money, which is why they do a credit check to determine your credit worthiness. Now I realize some skeptics will claim that’s not accurate and that many card companies hand out credit cards like candy to individuals with virtually little to no credit at all. Some may even point to the fact that the term “deadbeat” in credit card circles is used to describe a borrower who pays off his or her credit card in full every month and does not pay interest. All of this would naturally lead you to believe they like having you behind the 8-ball, but what they really like is for you to only be partially behind it.

If you are buried in debt and can’t afford to make your monthly payments that becomes a lose-lose for both parties. Your credit gets wrecked and the lender does not get their money. No one wants that.

In a perfect world a lending institution would love for a borrower to spent within their means and only carried a minimal balance for several months while paying a reasonable interest rate. When that happens the magical win-win for all is the net result. You establish positive credit history, they reap some interest on the money they lent you, and they keep their balance sheet clean. But in the real world things seldom go as planned.

Unexpected expenses lead to debt mounting, interest rates rising, and payments becoming less affordable, which is why this may be the perfect time to consider debt consultation if you are having financial difficulties

Student Platinum has partnered up with Credit.com, a leading debt resolution specialist, which offers solutions based upon your unique financial situation. You will be peered with a debt settlement or credit counseling partner who will work to cut down your debt balance and outline a monthly plan that is conducive to your economic situation.

Debts must be unsecured (which is a debt not tied to any item of property). You must have a source of income, and you can not include school or auto loans.

Get your free consultation from a debt expert at StudentPlatinum today!

When I shuffled off to college back in the early 90’s my mom handed me a crisp hundred dollar bill and told me to tuck it away for an emergency. As bad luck would have it I was in need of those emergency funds the very next day when a flat tire left me stranded several miles from school. Like a fool I had been driving around without a spare. A tow and 25″ Goodyear later and my emergency funds were depleted. My security blanket was gone.

I didn’t have the heart to tell my mom the hundred had been spent in the first twenty four hours. Had I informed her I know she would have scrounged up more money she didn’t have. As a single parent she routinely did without. I actually found out later in life that her dinner on many occasions consisted of what was left on my plate (we were on a very tight budget). It was at that moment while waiting for my tire to be fixed that I first wished I had a credit card to help ease the burden.

Credit cards are ideal for emergency situations. In fact, even if you never use the card there is an implicit value as well. The peace of mind one derives from having a card, should they get in a bind, is equally important. But with so many cards to choose from it can be difficult selecting the right one, which is why I’m here. Citi’s Forward card rewards forward thinking students like you.

Citi’s Forward card is designed specifically with students in mind. You can earn rewards points by maintaining good grades and even drop your APR up to eight times for making on time payments. You benefit by simply being responsible. And with so many ways to benefit this card is at the top of our list.

Key Benefits

• The credit card that rewards you for good grades
• Up to a 2% purchase APR reduction when you make a purchase, stay under your credit line and pay on time 3 billing periods in a row
• 6,000 bonus points after $50 in purchases are made within 3 months of account opening
• 5,000 bonus points when you sign up for paperless statements within 3 months of account opening
• 5 rewards points for every $1 you spend on dining, books, movies and music.
• 1 reward point for every $1 you spend on other purchases
• 0% APR for 6 months on purchases and balance transfers

Points Program

• You can redeem your rewards points for gift cards, music and electronics, but also for student loan rebates, statement credits and charitable donations.

• But here’s the best part, if you don’t find a rewards benefit that you like, call Citi and they’ll come up with a unique plan just for you. It’s called Your Wish Fulfilled. How cool is that?

ScholarshipPoints code: FWDTHINK

The new four letter word on everyones lips these days is debt, which in turn leads to other four letter words. Debt has always been there, it’s just been seated comfortably at the kids table. Now it’s at the head table and scooping up a second helping of stress and anxiety; a most distasteful helping indeed. But help is available if you know where to look.

Student Platinum has partnered up with Credit.com, a leading debt resolution specialist, which offers solutions based upon your unique financial situation. You will be peered with a debt settlement or credit counseling partner who will work to cut down your debt balance and outline a monthly plan that is conducive to your economic situation.

Debts must be unsecured, which is a debt not tied to any item of property. You must have a source of income, and you can not include school or auto loans.

Get your free consultation from a debt expert at StudentPlatinum today!

Scholarshippoints members may enter the code DEBTCONST for 15 fabulous points to use toward a monthly scholarship drawing!

An eye-opening article posted recently by CreditCards.com -

Credit card balances suffered their biggest percentage drop in more than 30 years in February, according to the latest Federal Reserve data, as consumers responded to the recession by reducing their reliance on plastic.

People are spending less, saving more and the credit card companies are cutting limits. It’s a triple whammy

Basically what is happening in the credit markets is that credit card companies are being forced to increase their limits on who they are willing to lend credit to making credit cards harder to get, especially for students.  Later in the article it explains how this trend will reverse -

Right now, the dominant trend is people paying down balances in anticipation of a rough year ahead. Later that trend will reverse as people are forced to pay back basic expenses on credit cards

What does this mean for students?  As we have said before, student credit cards are in trouble.  This is dangerous for students because it reduces their ability to build a positive credit score.  When students graduate from college with no credit history, it will be even harder for them to get a decent credit card, take out loans, etc.  When the “savings” trend reverses, and people are forced to use credit cards again, you are going to need a decent credit score in order to obtain a credit card with a good APR, rewards plan, etc.  Luckily there are still student credit card options for students with limited credit such as the Orchard Bank MasterCard, and prepaid credit cards which come with the guarantee that they will not put you in debt.

Keep your eye on the news.  What is happening today in the credit markets is likely to affect you in the future.

A lot of students find themselves in debt early into college, and often worse after graduation.  It may be with credit cards, bills at your first off-campus apartment, or car payments – we have all experienced it.  If your one of the lucky one that hasn’t, believe me, you will.  The trick is managing your finances, creating a budget, and CONTROLLING your debts.  That is the key to success, and the key to living a debt free life.

Here is a small list of services that you may find useful to get yourself out of the hole, and get your finances back in order:

1.  Free PDF – Credit Card Debt Reduction Plan

A free guide for students including tips and tricks on managing debt, and budgeting money.

Download Free eBook!

2. Free Debt Consultation

Reduce your non student loan debt by up to 50%.  This includes credit card debt, phone bills, personal loans, etc. Be debt free in as little as 12- 48 months!

Get a Free Debt Consultation!

There you have it.  Two valuable resources to getting yourself back on track.  Your young, you have time to get your finances in order.  But you need to start NOW.  You’ll be thanking yourself it in the future.

Got a unique situation of your own and not sure what to do about it?  Ask our experts in the StudentPlatinum forum!

ScholarshipPoints.com members : Here’s your code to help you win free scholarships! NOMOREDEBT

This promotion has ended.

Some people can live a frugal life, save all their money and derive great happiness and satisfaction from simple things in life. Ruby-orange sunsets, drops of dew on a rose petal or knowing that when you’re 85 you’ll have lots of money might be all you need in life but that’s not me. I’ll bet it’s not you either.

Since the $1,200 Handbag article I’ve gotten a wide spectrum of response; many of them defending the purchase of a pricey leather pouch stamped “Gucci”. I actually agree with buying the handbag in certain cases and I don’t mean just cases where you’re filthy rich. All work and no play or all saving and no spending is not what life is about for most of us. Living in self-imposed poverty until you’re 70 and retired might just leave you comfortable in your last few years but feeling like you’ve missed out. So how can you live a life sprinkled with frivolity and still retire in comfort?

The answer and challenge is to plan how you spend your money so that you can have the irrational things you might enjoy and save at the same time. It’s OK to spend your money on something that does nothing but make you happy like a pricey handbag, expensive shoes, a new car instead of a used car, especially if it’s a reward for saving and budgeting responsibly. You can’t buy everything you want because that’s irresponsible but if you don’t enjoy life along the way you could burn out and fail in the long run.

It’s like dieting. I’ve been successfully dieting using a really clean and healthy diet for several months and now I’m at and maintaining my target weight but continuing to diet anyway. People ask why I’m continuing to eat this way and say it’s no way to live. I tell them its super healthy and I eat pizza, ice cream and whatever else I want one day each week without an ounce of guilt. In fact my pig-out day is far more indulgent than I ever would have dared before. I can do this because I cut out the cheap fast food and burgers during the week which added the pounds and didn’t really taste that great anyway. Indulging is psychologically refreshing and enables healthy eating all the other days.

It’s the same exact thing with finances and saving. It’s easier to stay on a healthy savings and financial plan with a little planned fun to look forward to. You need it psychologically and it will make your life happier. As you save for college, a house and retirement also plan on rewarding your hard work with fun stuff along the way. Make sure you have some spending money set aside in your budget even if it’s just a little, then don’t feel bad about spending it.

If you keep track of the little dumb things you buy all the time and cut them out you might be surprised at what you could soon afford. Here’s an exercise I recommend you try:

1. Make a wish list of everything non-essential you want to buy in order of importance to you along with the prices (everything from coffee, to new jeans to a new TV)
2. Start another list of the non-essential things you actually buy with the prices and track it for a month
3. At the end of the month compare your lists and see how many things on your actual list were on the wish list, let alone on top
4. Add up the cost of all the things on the actual list and see what you could have bought on your wish list!

I’ll wager that for most of you the actual list will look much different than the wish list and hopefully this exercise will help you see how you can have some of the things you want. The main point here is that it’s important to budget and know where your money is going. It’s also important to leave yourself some money to use for fun and if you do you will meet your financial goals and have some guilt free pleasures along the way. I mean aren’t ruby-orange sunsets more enjoyable viewed through a new pair of designer sunglasses while wearing your best designer jeans and holding a Gucci bag?

For all my ScholarshipPoints friends enjoy 15 points towards a free college scholarship drawing at www.scholarshippoints.com with code: ENJOYLIFE

Somebody once told me “never go to your boss with questions, always go with answers”. As I was arguing on the phone recently with my motorcycle repair shop’s jerky service manager it occurred to me that the same advice applies to negotiating with people about money , services or any other issue needing fixing. Basically, if you give people options rather than just simply complain and demand your way you are more likely to be happy with the results.

You see humans are a competitive species. Our very evolution is proof that we don’t like to lose. When you disagree with anybody there are more elements at play than the essential rightness or wrongness of the issue. Emotion, ego, weather and even the mustard stain on your shirt can all cloud things and serve to influence any conflict. If you complain and don’t tell the person what you want them to do to fix the problem you will go around in circles and end up nowhere. If you raise a problem then demand your way, the only out for the other person is to lose and nobody likes to feel like the loser. I find the best thing to do when you have a problem with a product or service is to do the following:

1. Clearly state your problem or issue
2. State what you expect the other party to do to fix the situation
3. Offer an alternative choice or two that you might be willing to live with.

If you demand your way and offer other solutions which you could live with you are giving the person a way out of letting you win. You are subliminally painting in their mind the other options besides giving you your way. The thing is none of those options include “no”. With options they can give in and feel like neither of you completely won or lost.

In my case the mechanic promised not to charge me for something he did which I didn’t need done then when I got the bill he forgot about the promise and charged me anyway. I didn’t notice until I got home and reviewed the bill. I don’t think he forgot, I think he made a mistake and giving me my money back would entail him explaining to his boss that he screwed up. My approach was to call him and state my case to which he predictably acted like a jerk about because well, he is a jerk. I then told him I wanted a full refund and if that wasn’t possible I would accept a store credit or else be forwarded to the general manger to discuss options with him.

The reason I could accept a store credit is that I know I will need to have an oil change and service done in a month anyway. If he denied at least the store credit I would have never gone back and written a letter to the general manager explaining why and I told him that. He ended up giving me the credit rather than have me go to his boss and never come back. He sort of won because I didn’t get a refund but who cares, I get my money back in a month with the credit on service.

This advice can help you with your mechanic, boss, boyfriend or girlfriend or professors. The next time you have an issue that you need somebody to correct, try being clear about the issue and solution as you see it. Then paint the possible responses for them by defining alternative solutions. Odds are they will grab one of those and walk away feeling like they won. You just have to try not to smile until they’re gone.

If you are a member of www.ScholarshipPoints.com then you know we’re not jerks. Here is a code worth 15 points to prove it: DUMBJERKS