During a recession, the flow of credit tends to tighten up as banks and lenders take fewer “risks.” The result of this is that people who are credit-worthy but have no credit history, such as students, are caught in the middle. Without a credit history, they can’t get credit cards and loans. With credit cards and loans, they can’t establish a credit history.
An old standby practice, piggybacking, was recently eliminated as the new FICO score rules changed how it treated authorized users. In the past, someone with poor or no credit could “piggyback” as an authorized user on an account of someone with good credit. Many parents put their children on their credit card accounts to help them establish credit, the parents were “co-signing” their child’s debts, so it was perfectly acceptable. Unfortunately, people started abusing this and selling “authorized user positions” on their accounts, some for as much as $500 or $1,000 a piece, so FICO had to respond.
Fortunately, credit card companies recognize that students have credit needs and are often supported by their parents, so they’ve created student credit cards that low limits, reasonable rates of interest, and looser credit requirements. Companies like Discover and Citi have always been in the forefront of this and my first credit card was one issued by Citi based solely on my income being defined by my tuition payment.
The most important thing to realize, whether you’re the student or the parent of a student, is that a credit card should not be taken lightly. A lot of students fall into the trap of not recognizing that credit is still money and that you shouldn’t be spending money that you don’t have. I think having a credit card is important, getting one is one of my 40 college money tips, but fiscal responsibility is far more important. One of the great things about student credit cards are that the limits are low but you can still fall very deep into debt. Only spend that which you can repay within the grace period and never carry a balance. If you don’t think you can do that, avoid these things at all costs.
Here are some other tips for smart credit use:
*Pay with credit only if you have the cash for it: If you don’t have the cash to buy something, don’t put it on your credit card. A $10 pizza can become a $100 pizza if you make only minimum payments and stretch it out as long as they will allow it. If you have the cash, you can pay off the bill after the grace period and take the rewards to the bank.
*Never carry a balance: When you carry a balance, your grace period goes away. As a student with limited income, you should never carry a balance because that is a beast you are ill equipped to handle. With little to no income, your balance can spiral out of control. You might end up with tens, if not hundreds, of thousands of dollars in debt with nothing to show for it.
*Understand your limits: It’s important to know what your credit limit is so you don’t get a punitive fee for going over your limit. This tip also refers to understanding how much you can spend based on how much you earn. A credit will let you go into as much debt as you want, because they will earn their interest as you struggle to repay it.
*Never pay an annual fee: Whenever I see a credit card offer the interests me, I always look to see what the annual fee is. If the annual fee is more than $0, I don’t even consider the card. Credit cards earn money when you use them, they charge the merchant a small fee, there’s no reason why I should pay them for the opportunity to make them more money!
*Avoid stupid fees: Remember when to make your payments, remember your credit limits, remember everything so that you don’t get dinged $35 for missing your payment by a day (or a minute). Develop good credit card habits and you can use them like a tool, rather than a crutch.
*Know when to walk away: If you can’t be responsible with credit, don’t be stubborn.
*If you know you can’t spend within your means, cut up your cards, focus on paying down debt, and live a cash-only lifestyle. Credit cards are double-edged swords, they cut both ways. If you find yourself being hurt by them, cut them up, repay your debts, and never use them again.
About Me
Monday, July 27, 2009
Saturday, July 25, 2009
Renters Insurance
University students spend both time and money to decorate our homes with art, electronics and furniture, and whether the cause is an unwatched pot on the stove or a covetous neighbor trying to get something they haven't earned, any student could incur a substantial loss.
Because disaster may strike anytime, the best motto for today's college student is "be prepared."
Allstate Insurance agent Tate Thigpen said renter's insurance is the young co-ed's weapon in a world filled with thieves and natural disasters.
"If your apartment building, townhouse or duplex burns, the landlord is going to be covered under their own landlord's policy, however, your stuff that is destroyed in the fire is not covered under that insurance," Thigpen said. "Therefore, you have no way to replace your belongings lost in that fire and this would also be the case with a burglary, vandalism or other destruction of your property."
Policies can be affordable, even for the average college student. Prices range from $15 to $30 per month, and policies are based on location, square footage and both quality and quantity of possessions.
Regarding claims, Thigpen explained exactly what a renter's insurance policy will cover after an accident or theft.
"The policy will only pay for you to replace your stolen/destroyed property with things of the same type and value up to the coverage amount of the policy," Thigpen said. "Therefore, any purchase receipts or appraisals you have are helpful in properly figuring the claim amount."
Thigpen said claims can be settled in just a few days.
"Claims depend on the extent of the damage to the dwelling and the individual customer's belongings," Thigpen said. "Usually 24-48 hours, but a total loss to the property could take longer."
Renter's insurance policies cover one year and may be renewed at the renter's request. Also, if the renter changes residence, their policy can simply be updated with a change of address form and by notifying their insurance company.
Thigpen said the only person who doesn't need renter's insurance is someone who can afford to replace all of their possessions without any assistance.
"If you can afford to replace all of your things at their present value, then you may not need renter's insurance, but who can really afford to do that?" Thigpen said. "Most people could not and if you answered this question 'no,' then you probably need to check on getting renter's coverage that will at least help you get back those things that can be replaced."
Radican said renter's insurance helped ease the burden of losing his possessions and home to damages.
"Renter's insurance is a necessity for anyone because accidents can happen anytime," Radican said. "If I didn't have renter's insurance, I would have had to pay for all the expenses out of my own pockets."
Thigpen said he stressed the importance of renter's insurance in a world filled with increasing costs and responsibilities.
"With the rising costs of college tuition, a major loss to your personal property can be devastating to a student," Thigpen said. "It makes sense to protect yourself from those costs up front with a good renter's policy."
Because disaster may strike anytime, the best motto for today's college student is "be prepared."
Allstate Insurance agent Tate Thigpen said renter's insurance is the young co-ed's weapon in a world filled with thieves and natural disasters.
"If your apartment building, townhouse or duplex burns, the landlord is going to be covered under their own landlord's policy, however, your stuff that is destroyed in the fire is not covered under that insurance," Thigpen said. "Therefore, you have no way to replace your belongings lost in that fire and this would also be the case with a burglary, vandalism or other destruction of your property."
Policies can be affordable, even for the average college student. Prices range from $15 to $30 per month, and policies are based on location, square footage and both quality and quantity of possessions.
Regarding claims, Thigpen explained exactly what a renter's insurance policy will cover after an accident or theft.
"The policy will only pay for you to replace your stolen/destroyed property with things of the same type and value up to the coverage amount of the policy," Thigpen said. "Therefore, any purchase receipts or appraisals you have are helpful in properly figuring the claim amount."
Thigpen said claims can be settled in just a few days.
"Claims depend on the extent of the damage to the dwelling and the individual customer's belongings," Thigpen said. "Usually 24-48 hours, but a total loss to the property could take longer."
Renter's insurance policies cover one year and may be renewed at the renter's request. Also, if the renter changes residence, their policy can simply be updated with a change of address form and by notifying their insurance company.
Thigpen said the only person who doesn't need renter's insurance is someone who can afford to replace all of their possessions without any assistance.
"If you can afford to replace all of your things at their present value, then you may not need renter's insurance, but who can really afford to do that?" Thigpen said. "Most people could not and if you answered this question 'no,' then you probably need to check on getting renter's coverage that will at least help you get back those things that can be replaced."
Radican said renter's insurance helped ease the burden of losing his possessions and home to damages.
"Renter's insurance is a necessity for anyone because accidents can happen anytime," Radican said. "If I didn't have renter's insurance, I would have had to pay for all the expenses out of my own pockets."
Thigpen said he stressed the importance of renter's insurance in a world filled with increasing costs and responsibilities.
"With the rising costs of college tuition, a major loss to your personal property can be devastating to a student," Thigpen said. "It makes sense to protect yourself from those costs up front with a good renter's policy."
Friday, July 24, 2009
Today's My Birthday
Well today is the 19th birthday of me. I pretty much celebrated my birthday yesterday so I'm just relaxing and sleeping today. Above is a picture of the birthday cake that my friend's got me. That cake was magically delicious. I'm not even a fan of chocolate but this cake had chocolate in it and I liked it. It was an ice cream cake from Dairy Queen. I suggest everybody give it a try.
Anywho, I also went to the casino and lost money. UGH! I'm so through with the casino. It's rigged for losing. Lol. I think I was so mad cause it was this one lady that just kept winning...over and over and over again. I was quite frustrated about it if I must say.
Well it's time for me to get some quick shut eye in before my phone starts ringing and buzzing again.
Below is one of my bday presents. My gorgeous roses.
Wednesday, July 22, 2009
Student Loan Consolidation
Student loans are a great source of financial aid for students who need help paying for their education. Unfortunately, students often leave college with burdensome debt. In addition, they often have multiple loans from different lenders, meaning they are writing more than one loan repayment check each month. The solution to this problem is loan consolidation.Student Loan Consolidation, also called a Student Consolidation Loan, combines several student or parent loans into one bigger loan from a single lender, which is then used to pay off the balances on the other loans.
For the best type of student loan consolidation interest rates, you can find them on the internet.
All you have to do is contact the lending companies that are willing to give you affordable repayment plans. Always look for those companies or sites who take time to share great financial advice, especially on how to effectively handle and manage your multiple college loans.
Do a research for the lowest interest rate reductions. On the market there are two available reductions. The first one says that most lenders offer reductions for consecutive on-time payment.
The interest rates for student loan are based on annual rate in United States. These rates can be anywhere between minimum of 4.70% to maximum of 8.25% for the Federal Stafford loans and 9% for the Plus loans.
Student loan consolidation rates are not that different than what a graduate is already paying. The new rate on a student loan consolidation is simply the weighted-average of someone's current loan rates, rounded up to the nearest one-eighth of a percent (.125%).
For example, if three-quarters of your loan is at 8% and one-quarter is at 6%, the new rate would be calculated as the follows:
8% x .75 = 6.00%
plus
6% x .25 = 1.50%
Total New Rate = 7.50%
But it is advisable first to check and study the terms and conditions that are presented by the college debt and loan provider.
For the best type of student loan consolidation interest rates, you can find them on the internet.
All you have to do is contact the lending companies that are willing to give you affordable repayment plans. Always look for those companies or sites who take time to share great financial advice, especially on how to effectively handle and manage your multiple college loans.
Do a research for the lowest interest rate reductions. On the market there are two available reductions. The first one says that most lenders offer reductions for consecutive on-time payment.
The interest rates for student loan are based on annual rate in United States. These rates can be anywhere between minimum of 4.70% to maximum of 8.25% for the Federal Stafford loans and 9% for the Plus loans.
Student loan consolidation rates are not that different than what a graduate is already paying. The new rate on a student loan consolidation is simply the weighted-average of someone's current loan rates, rounded up to the nearest one-eighth of a percent (.125%).
For example, if three-quarters of your loan is at 8% and one-quarter is at 6%, the new rate would be calculated as the follows:
8% x .75 = 6.00%
plus
6% x .25 = 1.50%
Total New Rate = 7.50%
But it is advisable first to check and study the terms and conditions that are presented by the college debt and loan provider.
Friday, July 17, 2009
Update
So things in my life has been alright. School is going magically. My grades are looking magnificent. However, I'm still paying on my tuition therefore I'm broke everyday of my life. On top of that, my boyfriend is surely showing his behind. I can go deep into that story but I think I would just get mad all over again.
On a good note...my birthday is approaching quickly. JULY 24TH. Yayyyy!!! Unfortantely, it wont be that special this year. I'll be stuck up at school. All my friends are back at home and everybody has to work. UGH!! I had plans but as usual...they all fell through. I won't really had cards up on my dresser like all my other birthdays. I won't have a cake because no one is going to buy me one and I can't afford to buy one. I'll probably be sicking back doing some type of writing or watching movies. Sucks! But hey, thats life sometimes.
Any who, I'm blessed therefore I shouldn't been complaining like this. Let get back to cooking before I accidentally burn the dorm down. I'll be back soon.
On a good note...my birthday is approaching quickly. JULY 24TH. Yayyyy!!! Unfortantely, it wont be that special this year. I'll be stuck up at school. All my friends are back at home and everybody has to work. UGH!! I had plans but as usual...they all fell through. I won't really had cards up on my dresser like all my other birthdays. I won't have a cake because no one is going to buy me one and I can't afford to buy one. I'll probably be sicking back doing some type of writing or watching movies. Sucks! But hey, thats life sometimes.
Any who, I'm blessed therefore I shouldn't been complaining like this. Let get back to cooking before I accidentally burn the dorm down. I'll be back soon.
Monday, July 13, 2009
Car Insurance For College Students
While you are packing extra long sheets, the right laptop, and other electronics for your college-bound freshman, add auto insurance to your checklist. Whether your student is taking one of the family cars, his or her own set of wheels to campus, or is going to be without wheels, it will affect the family's auto insurance. While you are setting up final dental appointments, call your insurance company and find out how your insurance picture changes when your child squeals out of the driveway on the way to the university. Taking the time to do so could mean a few extra bucks in your family pocketbook plus the assurance that you are protecting your child away from home.
Location, Location
Your family auto insurance policy will most likely cover a car that your child takes to college as long as the vehicle is registered with you, the parent, as owner. However, the car's new locale might make a difference in your premiums, so it is important that the insurance company be notified that the car will be garaged at another location. If your child will now be living in an urban area, for instance, your premiums may rise. Insurance companies rely on statistics to set rates and they will look at the accident and theft statistics for that area when calculating a premium that could be lower or higher depending on the statistics.
Grades Matter
The student with wheels on campus can also lower their premiums by hitting the books. Manyinsurance companies will lower premiums for students with a B-average or better. There are reductions for taking defensive driving courses as well. Check with your respective insurance company to get all the reductions available.
Without Wheels
Depending upon your policy, you could lower your premium if your college-bound student does not take a car to school, because some insurers will reduce rates for drivers attending school at least 100 miles away from home.
Policy Ownership
Insuring a car in your child's name is expensive. You can count on adding 50 percent for a female and 100 percent for a male under 25. You will need to check on the insurance requirements in the state where your child will attend school to be sure your current policy concurs with state insurance laws. Do make sure your child has auto insurance on his or her vehicle, however, whether it's through your policy or per their own. An accident by an uninsured driver can haunt them the rest of their lives and ruin their credit rating for a very long time. Uninsured drivers can lose their license plates, incur stiff fines and sometimes jail time.
Location, Location
Your family auto insurance policy will most likely cover a car that your child takes to college as long as the vehicle is registered with you, the parent, as owner. However, the car's new locale might make a difference in your premiums, so it is important that the insurance company be notified that the car will be garaged at another location. If your child will now be living in an urban area, for instance, your premiums may rise. Insurance companies rely on statistics to set rates and they will look at the accident and theft statistics for that area when calculating a premium that could be lower or higher depending on the statistics.
Grades Matter
The student with wheels on campus can also lower their premiums by hitting the books. Manyinsurance companies will lower premiums for students with a B-average or better. There are reductions for taking defensive driving courses as well. Check with your respective insurance company to get all the reductions available.
Without Wheels
Depending upon your policy, you could lower your premium if your college-bound student does not take a car to school, because some insurers will reduce rates for drivers attending school at least 100 miles away from home.
Policy Ownership
Insuring a car in your child's name is expensive. You can count on adding 50 percent for a female and 100 percent for a male under 25. You will need to check on the insurance requirements in the state where your child will attend school to be sure your current policy concurs with state insurance laws. Do make sure your child has auto insurance on his or her vehicle, however, whether it's through your policy or per their own. An accident by an uninsured driver can haunt them the rest of their lives and ruin their credit rating for a very long time. Uninsured drivers can lose their license plates, incur stiff fines and sometimes jail time.
Tuesday, July 7, 2009
I'm back.
I've been gone for a minute due to vacation but now im back.
I'm back in more excited than I can ever be. I finished up with one of my classes last week. Can we say A- in that class? Whooohooo!!! I also passed a quiz in my ENGL class that I thought I did bad on. I'm so relieved that I didnt.
Anywho, I just got back from my mini vacation and I must say I had a wonderful time. I wonder what fun I had in store for my birthday. It's on the 24th so I've got time to finalize some things. I dont plan to do the amusement park thing though. It was kind of hot when I went this previous weekend so I know it will be scorching when my birthday rolls around. However, Michigan Adventure does have a very exciting water park.
I'm back in more excited than I can ever be. I finished up with one of my classes last week. Can we say A- in that class? Whooohooo!!! I also passed a quiz in my ENGL class that I thought I did bad on. I'm so relieved that I didnt.
Anywho, I just got back from my mini vacation and I must say I had a wonderful time. I wonder what fun I had in store for my birthday. It's on the 24th so I've got time to finalize some things. I dont plan to do the amusement park thing though. It was kind of hot when I went this previous weekend so I know it will be scorching when my birthday rolls around. However, Michigan Adventure does have a very exciting water park.
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