5 Credit Tips for College Students
Delray Credit Counseling asked:
Some credit tips for college students
How we handle our credit determines to a large extent how secure we feel in our lives. College students are no exception to this rule. A large part of our financial lives depends on how good our credit ratings are. However, if students follow the credit tips mentioned below, they are less likely to face any serious problems.
1. Follow a budget
Living on a budget is perhaps one of the most important credit tips for college students. . When a month begins, note down all your monthly expenses in the order of what you will need to pay first. Once you have fixed your priorities, pay the items from your income accordingly. Make sure that you do not spend any money on anything outside these categories till you have paid all your expenses first. Budgeting in this way serves another purpose. It increases your understanding of your own financial condition and dissuades you from spending money on unnecessary items. In this way, it reduces the possibility of a credit problem in the future.
2. Begin a credit history
In order to begin your credit history, open your savings and checking accounts. In the next step, try using a student credit card – but only to make those purchases that you’d make anyway and then make full payments on time every month with the funds from your checking account. Daily transactions will gradually play a key role in your credit worthiness.
3. One credit card only
Using only one credit card is also one of the most important credit tips for students. In fact, more than one credit is not required at all if you use it to make only planned purchases and pay it off every month. Although the limits start off quite low, they go up as you buy things and pay your bills on time. It has been observed over the years that a college student using more than one credit card is more likely to face credit troubles.
4. Be responsible
It is also imperative that you act responsibly and pay your credit card bills on time. Remember that any failure to pay your bills on time will damage your credit for several years. So pay earlier if possible, but never late. Try to remain within the limits of your credit card as well.
5. Check credit reports regularly
Remember that unscrupulous elements of this world won’t spare you just because you are a student. So make it a point to check your credit report regularly for any irregularities. You are entitled to check your credit report for free every year.
So these credit tips should be followed by every student if credit problems are to be avoided in the future.
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Some credit tips for college students
How we handle our credit determines to a large extent how secure we feel in our lives. College students are no exception to this rule. A large part of our financial lives depends on how good our credit ratings are. However, if students follow the credit tips mentioned below, they are less likely to face any serious problems.
1. Follow a budget
Living on a budget is perhaps one of the most important credit tips for college students. . When a month begins, note down all your monthly expenses in the order of what you will need to pay first. Once you have fixed your priorities, pay the items from your income accordingly. Make sure that you do not spend any money on anything outside these categories till you have paid all your expenses first. Budgeting in this way serves another purpose. It increases your understanding of your own financial condition and dissuades you from spending money on unnecessary items. In this way, it reduces the possibility of a credit problem in the future.
2. Begin a credit history
In order to begin your credit history, open your savings and checking accounts. In the next step, try using a student credit card – but only to make those purchases that you’d make anyway and then make full payments on time every month with the funds from your checking account. Daily transactions will gradually play a key role in your credit worthiness.
3. One credit card only
Using only one credit card is also one of the most important credit tips for students. In fact, more than one credit is not required at all if you use it to make only planned purchases and pay it off every month. Although the limits start off quite low, they go up as you buy things and pay your bills on time. It has been observed over the years that a college student using more than one credit card is more likely to face credit troubles.
4. Be responsible
It is also imperative that you act responsibly and pay your credit card bills on time. Remember that any failure to pay your bills on time will damage your credit for several years. So pay earlier if possible, but never late. Try to remain within the limits of your credit card as well.
5. Check credit reports regularly
Remember that unscrupulous elements of this world won’t spare you just because you are a student. So make it a point to check your credit report regularly for any irregularities. You are entitled to check your credit report for free every year.
So these credit tips should be followed by every student if credit problems are to be avoided in the future.
Buy Tramadol, Tramadol, Fioricet, Pain relief resources
Tags: Checking Accounts, Monthly Expenses, Student Credit Card
Facts you Should Know Before Considering Credit Counseling or Debt Consolidation
Jay Peters asked:
There is one topic which every time I write about it seems to generate some hate mail while at the same time spawning a flurry of wonderful praise from consumers. Of course, the hate mail is always from a few people that happen to own these “certain types” of businesses I discussed and those businesses of course are Credit Counseling or Debt Consolidation companies; of which many “claim” to be non-profit organizations.
You’d almost have to be an ostrich with your head stuck in the sand to not see or hear at least one advertisement a day from a Credit Counseling or Debt Consolidation Company. However, you can expect this to change and change soon. Since this is a topic which tends to “stir up” the owners of these businesses, I am going to take a different approach by NOT sharing my opinion, but rather, the opinion of others. I will start with the news media and the Internal Revenue Service:
“(NPR News, May 15, 2006). The Internal Revenue Service is revoking the tax exempt status of some of the largest credit counseling agencies in the country. An IRS investigation disclosed that the firms solicited business from people seriously in debt and that they didn’t provide counseling or consumer education, as required.
Prodded in part by a congressional oversight committee and consumer advocates, the IRS began investigating dozens of credit counseling agencies — most holding non-profit status — two years ago. IRS Commissioner Mark Everson says the companies “poisoned an entire sector of the charitable community.”
Everson says in many instances, companies were organized merely to funnel business to loosely affiliated for-profit companies. Many of the firms spend millions of dollars on commercials that urge anyone with debt to call them to solve their financial woes. And because tax-exempt organizations are not bound by the federal do-not call list, the firms were able to randomly call consumers, pitching their services under the guise of a non-profit counseling service.
The IRS investigations are also likely to affect consumers, thanks to a new bankruptcy law that requires consumers considering bankruptcy to get counseling before they are allowed to file. The IRS wants to ensure that only legitimate non-profit agencies are doing the counseling. In addition to the actions announced Monday, the IRS is sending more than 700 compliance letters to the rest of the credit counseling industry (END).”
Since almost all Credit Counseling and Debt Consolidation companies claim a non-profit status, I feel most consumers are easily sucked in with their skepticism and defenses at bay. After all, when most of us hear the word “non-profit” the first thing we usually think of is a church or homeless shelter.
From the NPR article and the actions of the IRS, I think it’s fair to assume that many of these “non-profit” organizations have been operating under a scenario similar to that of a wolf guarding a hen house. However, this doesn’t mean all credit counseling and debt consolidation companies are bad but… you do need to know the truth about how they operate and their limitations.
The first thing you want to understand is these companies are ALL more interested in making money off you than they are in preserving your credit rating. The bottom line with either credit counseling or debt consolidation is that it absolutely ruins your credit. I can just hear the companies arguing this with a consumer right now, telling them nonsense like “It helps your credit since it tells creditors that you’re working on your situation and not just running away from it.” Listen… if one these places tells you that than watch out. Why? Because they will lie to you about other things as well!
One of the first actions these programs usually requires you to do is for you to CLOSE all your revolving credit accounts. You then make payments to the organization and they take care of everything for you. What this says to all your creditors (as well as anyone considering giving you credit) is that you are so out of control with your finances that you can’t even manage paying everyone back on your own. Therefore, you’re hiring someone else to do it for you!
99% of the time these companies will claim they can negotiate with your creditors and get interest rates reduced thereby saving you money. While this is true, what’s also true is you can easily negotiate these same rates as well as they can by just calling your creditors yourself. You’d be amazed at how many of your creditors would love to hear from you (especially when the chips are down!). Not too mention, any money the counseling company was to save you would more than likely be sucked back up by their monthly fees (usually around $500 to $1,000 per year).
This brings us into a whole other dynamic of their business model. Because these companies always make their money off of monthly fees paid by the consumer, the longer they can keep those monthly fees coming in the more profitable their business will be. It’s for this reason that most consumers who sign up with these companies usually find themselves on payment plans with the lowest monthly payment possible (which turns out to also be the LONGEST payment plan as well). Not surprising is it?
Am I against Credit Counseling and Debt Consolidation companies? Absolutely not. After all, there are millions of people in America who will never be able to manage their finances. Credit to them is a destructive addiction much like alcohol or drugs and they will never be able to control it. Instead, it will always control them. We’ve all seen these people. Every time they are extended credit shortly thereafter they are in financial trouble (usually blaming it on some external factor). For these people I think these credit and debt counseling programs can be a good thing (as a ruined credit report is not a hindrance to them but actually an asset). It keeps them out of future financial trouble by forcing them to live their lives on a “cash and carry” basis; which is ultimately conducive to a better standard of living down the road.
On the other hand. If you’re good with your finances and have control with credit but went through some type of hardship beyond your control in the past (i.e. divorce, job loss etc); then the services of these companies will never be for you. You will do far better and preserve your credit rating by taking matters into your own hands. Reason being is that you understand your credit rating is a powerful tool that can help you move ahead faster, help others and help yourself as well as create the life you want. It all comes down to self management. We all know that those who cannot manage themselves will ultimately be managed by others. Credit is no different. When you learn to manage it well, you are the master and it is the servant.
If you care about your credit and want to benefit from it in the future, then you will never rely on a credit or debt counseling service to help you get out of any trouble you find yourself in. Instead, you’ll look inward and get yourself out while preserving your credit rating the best you can. Credit and debt counseling is for people who are “ok” with throwing their credit rating in the trash so they can have “someone else” manage their payments for them (since they are unable to manage them themselves). And again, as far as negotiating interest rates, you can do just as good as them or better. If you don’t believe me just call any of your creditors and straight out tell them your situation. You will quickly find you don’t need to be afraid of them. They just want to get paid like the rest of us.
www.Credit-Secrets-Bible.net
debt consolidation loans
There is one topic which every time I write about it seems to generate some hate mail while at the same time spawning a flurry of wonderful praise from consumers. Of course, the hate mail is always from a few people that happen to own these “certain types” of businesses I discussed and those businesses of course are Credit Counseling or Debt Consolidation companies; of which many “claim” to be non-profit organizations.
You’d almost have to be an ostrich with your head stuck in the sand to not see or hear at least one advertisement a day from a Credit Counseling or Debt Consolidation Company. However, you can expect this to change and change soon. Since this is a topic which tends to “stir up” the owners of these businesses, I am going to take a different approach by NOT sharing my opinion, but rather, the opinion of others. I will start with the news media and the Internal Revenue Service:
“(NPR News, May 15, 2006). The Internal Revenue Service is revoking the tax exempt status of some of the largest credit counseling agencies in the country. An IRS investigation disclosed that the firms solicited business from people seriously in debt and that they didn’t provide counseling or consumer education, as required.
Prodded in part by a congressional oversight committee and consumer advocates, the IRS began investigating dozens of credit counseling agencies — most holding non-profit status — two years ago. IRS Commissioner Mark Everson says the companies “poisoned an entire sector of the charitable community.”
Everson says in many instances, companies were organized merely to funnel business to loosely affiliated for-profit companies. Many of the firms spend millions of dollars on commercials that urge anyone with debt to call them to solve their financial woes. And because tax-exempt organizations are not bound by the federal do-not call list, the firms were able to randomly call consumers, pitching their services under the guise of a non-profit counseling service.
The IRS investigations are also likely to affect consumers, thanks to a new bankruptcy law that requires consumers considering bankruptcy to get counseling before they are allowed to file. The IRS wants to ensure that only legitimate non-profit agencies are doing the counseling. In addition to the actions announced Monday, the IRS is sending more than 700 compliance letters to the rest of the credit counseling industry (END).”
Since almost all Credit Counseling and Debt Consolidation companies claim a non-profit status, I feel most consumers are easily sucked in with their skepticism and defenses at bay. After all, when most of us hear the word “non-profit” the first thing we usually think of is a church or homeless shelter.
From the NPR article and the actions of the IRS, I think it’s fair to assume that many of these “non-profit” organizations have been operating under a scenario similar to that of a wolf guarding a hen house. However, this doesn’t mean all credit counseling and debt consolidation companies are bad but… you do need to know the truth about how they operate and their limitations.
The first thing you want to understand is these companies are ALL more interested in making money off you than they are in preserving your credit rating. The bottom line with either credit counseling or debt consolidation is that it absolutely ruins your credit. I can just hear the companies arguing this with a consumer right now, telling them nonsense like “It helps your credit since it tells creditors that you’re working on your situation and not just running away from it.” Listen… if one these places tells you that than watch out. Why? Because they will lie to you about other things as well!
One of the first actions these programs usually requires you to do is for you to CLOSE all your revolving credit accounts. You then make payments to the organization and they take care of everything for you. What this says to all your creditors (as well as anyone considering giving you credit) is that you are so out of control with your finances that you can’t even manage paying everyone back on your own. Therefore, you’re hiring someone else to do it for you!
99% of the time these companies will claim they can negotiate with your creditors and get interest rates reduced thereby saving you money. While this is true, what’s also true is you can easily negotiate these same rates as well as they can by just calling your creditors yourself. You’d be amazed at how many of your creditors would love to hear from you (especially when the chips are down!). Not too mention, any money the counseling company was to save you would more than likely be sucked back up by their monthly fees (usually around $500 to $1,000 per year).
This brings us into a whole other dynamic of their business model. Because these companies always make their money off of monthly fees paid by the consumer, the longer they can keep those monthly fees coming in the more profitable their business will be. It’s for this reason that most consumers who sign up with these companies usually find themselves on payment plans with the lowest monthly payment possible (which turns out to also be the LONGEST payment plan as well). Not surprising is it?
Am I against Credit Counseling and Debt Consolidation companies? Absolutely not. After all, there are millions of people in America who will never be able to manage their finances. Credit to them is a destructive addiction much like alcohol or drugs and they will never be able to control it. Instead, it will always control them. We’ve all seen these people. Every time they are extended credit shortly thereafter they are in financial trouble (usually blaming it on some external factor). For these people I think these credit and debt counseling programs can be a good thing (as a ruined credit report is not a hindrance to them but actually an asset). It keeps them out of future financial trouble by forcing them to live their lives on a “cash and carry” basis; which is ultimately conducive to a better standard of living down the road.
On the other hand. If you’re good with your finances and have control with credit but went through some type of hardship beyond your control in the past (i.e. divorce, job loss etc); then the services of these companies will never be for you. You will do far better and preserve your credit rating by taking matters into your own hands. Reason being is that you understand your credit rating is a powerful tool that can help you move ahead faster, help others and help yourself as well as create the life you want. It all comes down to self management. We all know that those who cannot manage themselves will ultimately be managed by others. Credit is no different. When you learn to manage it well, you are the master and it is the servant.
If you care about your credit and want to benefit from it in the future, then you will never rely on a credit or debt counseling service to help you get out of any trouble you find yourself in. Instead, you’ll look inward and get yourself out while preserving your credit rating the best you can. Credit and debt counseling is for people who are “ok” with throwing their credit rating in the trash so they can have “someone else” manage their payments for them (since they are unable to manage them themselves). And again, as far as negotiating interest rates, you can do just as good as them or better. If you don’t believe me just call any of your creditors and straight out tell them your situation. You will quickly find you don’t need to be afraid of them. They just want to get paid like the rest of us.
www.Credit-Secrets-Bible.net
debt consolidation loans
Tags: Congressional Oversight, Debt Consolidation Companies, Debt Consolidation Company
A Guide To Credit Counseling
Ray Subs asked:
Debt counseling has become a $7 billion dollar industry, but not all of them play fair. 10 years ago the credit counseling industry was dominated by the National Foundation for Credit Counseling, who nonprofit affiliates, usually known as Consumer Credit Counseling Services, would negotiate lower interest rates and payment plans for people who were behind in their payments. Now Consumer Credit Counseling Services are in just about every city.
The services have plenty of competition now. A rise in consumer debt in the 1990s helped create hundreds of rivals. Some of these rivals have million-dollar advertising budgets, slick Internet come-ons and sound alike names.
Some of the recent rivals actually will negotiate a good repayment plan, while others only charge large, upfront fees, pay their executives even larger salaries and pocket most of the money that should be going to pay off creditors. Some of these companies will target people who are not late on their payments, but are tired of the high interest fees..
The really bad ones of the lot are not even credit counselors. They will usually bill themselves as specialist in “debt settlement”, they promise to help you get rid of your debts for pennies on the dollar, of course that would be after you pay their upfront fee of $3000 or more. In many cases by the time someone, who could do something about them, hears about these types of companies, they have already left with the victim’s cash, disconnected their phone lines, and are now doing business under a different name somewhere else.
Since these people don’t seem to have any trouble finding someone in need of their services, there are plenty of people out there who need the services of a legitimate credit counseling company. It is hard to get an accurate count of the number of people who have used credit counseling services for debt repayment. Of those in debt repayment plans only about half are expected to successfully complete their repayment plans. The other half will drop out, with some of them filing for bankruptcy.
Most credit counseling services will negotiate lower payments with credit card companies and other lenders, then will make the arranged payment to the creditors using a check or an electronic transfer given to them by the client.
Many of the credit counseling services receive their fees from the lenders themselves, which is sent back to the service from the portion they have received. Because of this many critics have accused credit counseling services of being a tool of the lending industry.
Because the payment system is known as “fair share”, it has encouraged the growth of credit counseling services. This has caused some agencies, driven by competition, to openly target consumers who have not fallen behind in their debts by promising lower interest rates. This practice has angered credit card companies and many times hurts the consumers. These consumers find out too late that these types of plans can hurt their credit and are unnecessary.
Just so that you understand. If you are able to make your payments and are current on all of your accounts, you do not need the services of a credit counseling agency. If your interest rates are too high, many time you can negotiate a lower rate with your credit card company, all you have to do is ask or threaten to take your business elsewhere.
If you are unsure whether or not you need a credit counseling service, look at this list below.
You are unable to pay even the minimum payment on your credit cards.
You are always late paying one or more of your regular bills.
You have collection agencies and your creditors calling you all the time.
You have tried to work out a reasonable payment plan with your creditors, but have been unable to do so.
If you are too far in debt, credit counseling may not be able to help. Your creditors will have their limits as to how far down they will go, and the credit counseling service may not be able to get your payment low enough to give you breathing room or to help you get out of debt. It this is the case, bankruptcy may be the best option for you.
If you are in need of a credit counseling service, here are some things to watch out for.
Large upfront fees Consumer Credit Counseling Services will usually charge a $10 set-up fee. Do not go with anyone trying to charge you more.
No accreditation Legitimate credit counseling services are affiliated with the National Foundation for Credit Counseling or the Association of Independent Consumer Credit Counseling Agencies.
Delayed or missing payments Some companies will pocket the first payment as a fee rather than pay your creditors. This can hurt your credit rating. Make sure you know the amount going to your creditors and when it is sent to them.
Unrealistic promises Watch out for companies who claim they can get rid of your debt for no money or for very little money without hurting your credit rating. Legitimate credit counseling services help you to pay back what you owe and will tell you upfront that there may be some affect to your credit rating.
debt consolidation saving
Debt counseling has become a $7 billion dollar industry, but not all of them play fair. 10 years ago the credit counseling industry was dominated by the National Foundation for Credit Counseling, who nonprofit affiliates, usually known as Consumer Credit Counseling Services, would negotiate lower interest rates and payment plans for people who were behind in their payments. Now Consumer Credit Counseling Services are in just about every city.
The services have plenty of competition now. A rise in consumer debt in the 1990s helped create hundreds of rivals. Some of these rivals have million-dollar advertising budgets, slick Internet come-ons and sound alike names.
Some of the recent rivals actually will negotiate a good repayment plan, while others only charge large, upfront fees, pay their executives even larger salaries and pocket most of the money that should be going to pay off creditors. Some of these companies will target people who are not late on their payments, but are tired of the high interest fees..
The really bad ones of the lot are not even credit counselors. They will usually bill themselves as specialist in “debt settlement”, they promise to help you get rid of your debts for pennies on the dollar, of course that would be after you pay their upfront fee of $3000 or more. In many cases by the time someone, who could do something about them, hears about these types of companies, they have already left with the victim’s cash, disconnected their phone lines, and are now doing business under a different name somewhere else.
Since these people don’t seem to have any trouble finding someone in need of their services, there are plenty of people out there who need the services of a legitimate credit counseling company. It is hard to get an accurate count of the number of people who have used credit counseling services for debt repayment. Of those in debt repayment plans only about half are expected to successfully complete their repayment plans. The other half will drop out, with some of them filing for bankruptcy.
Most credit counseling services will negotiate lower payments with credit card companies and other lenders, then will make the arranged payment to the creditors using a check or an electronic transfer given to them by the client.
Many of the credit counseling services receive their fees from the lenders themselves, which is sent back to the service from the portion they have received. Because of this many critics have accused credit counseling services of being a tool of the lending industry.
Because the payment system is known as “fair share”, it has encouraged the growth of credit counseling services. This has caused some agencies, driven by competition, to openly target consumers who have not fallen behind in their debts by promising lower interest rates. This practice has angered credit card companies and many times hurts the consumers. These consumers find out too late that these types of plans can hurt their credit and are unnecessary.
Just so that you understand. If you are able to make your payments and are current on all of your accounts, you do not need the services of a credit counseling agency. If your interest rates are too high, many time you can negotiate a lower rate with your credit card company, all you have to do is ask or threaten to take your business elsewhere.
If you are unsure whether or not you need a credit counseling service, look at this list below.
You are unable to pay even the minimum payment on your credit cards.
You are always late paying one or more of your regular bills.
You have collection agencies and your creditors calling you all the time.
You have tried to work out a reasonable payment plan with your creditors, but have been unable to do so.
If you are too far in debt, credit counseling may not be able to help. Your creditors will have their limits as to how far down they will go, and the credit counseling service may not be able to get your payment low enough to give you breathing room or to help you get out of debt. It this is the case, bankruptcy may be the best option for you.
If you are in need of a credit counseling service, here are some things to watch out for.
Large upfront fees Consumer Credit Counseling Services will usually charge a $10 set-up fee. Do not go with anyone trying to charge you more.
No accreditation Legitimate credit counseling services are affiliated with the National Foundation for Credit Counseling or the Association of Independent Consumer Credit Counseling Agencies.
Delayed or missing payments Some companies will pocket the first payment as a fee rather than pay your creditors. This can hurt your credit rating. Make sure you know the amount going to your creditors and when it is sent to them.
Unrealistic promises Watch out for companies who claim they can get rid of your debt for no money or for very little money without hurting your credit rating. Legitimate credit counseling services help you to pay back what you owe and will tell you upfront that there may be some affect to your credit rating.
debt consolidation saving
Tags: Debt Counseling, Doing Business, Pennies On The Dollar
