Bad Credit Student Loan
Bad Credit Student Loan - What To Do If You Need One
by Mark Kessler
Are you concerned that bad credit will prevent you from going to college? While it is true that finding student loans with excellent interest rates is easier if you have a sterling credit rating, bad credit student loan aid is possible. For example, the most popular US Department of Education loan, the Stafford loan, assumes that most applicants will be going to college straight from high school, and will not have a credit rating yet. Therefore, Stafford loans do not even consider the credit rating a factor when it comes to qualifications. The same holds true for Perkins loans, which are federal loans designated for the neediest students.The only reason bad credit would interfere with these kinds of student loans are if you have defaulted on a federally granted student loan in the past.
Bad credit student loans are also possible if your parents have better credit than you do. In this case, a PLUS loan, which is granted to parents and not to the student, might be the way to go. US Department of Education student loans (like Stafford and Perkins loans) assume that the parents will pay for a certain amount of their children's schooling; PLUS loans are intended to cover the amount that the parent is obligated to contribute toward college costs.
Federal funding is a good choice for a bad credit student loan because they are specifically designed to help make college more accessible; therefore, their requirements are much looser than those of most banks and other lending companies. However, if you are unable to secure a US Department of Education student loan, you may need to turn to private loans. If you are planning to graduate in a field with a high earnings potential, like law or medicine, you might have a better chance of receiving a bad credit student loan from private lenders.
None of these choices are either/or possibilities, by the way. You may be able to put together enough money to finance college through a combination of any or all of the above types of loans. Moreover, even if your bad credit student loan is at a very high interest rate, all is not lost. Many student loans defer payment until you have finished college, giving you time to improve your credit rating. At that point, you might want to look into ways to consolidate your student loan at a better rate, lowering your payments to a more affordable level.
About the Author
Mark Kessler's website offers a comprehensive free resource of college financial aid for Consolidating Student Loans, as well as... Alternative Student Loans, ACS, Bad Credit, US Department Of Education Student Loans, including a variety student loan articles
Bad Credit Student Loan
When Should You Consolidate Student Loans? by Mark Kessler
If you have just graduated from college, the likelihood is that you are under a large amount of debt in the form of student loans. You might be wondering if there is any way to reduce the amount you have to pay. One solution for reducing your debt is to consolidate your student loans.
Student loan consolidation is similar to refinancing a house on better terms: although the principal of the loan will not be affected, the interest rates you can lock in when you consolidate student loans to a fixed rate can be substantially better, reducing your monthly payments by up to forty percent. Plus, you might be able to stretch out your payment time to reduce your monthly payment amount even further.
The disadvantage when you consolidate student loans during your initial six-month grace period is that you must start making your payments right away. This can be difficult if you have not found a job after graduation, although you can wait until just before the grace period ends to consolidate, and still receive the lower rates. Furthermore, once you have consolidated your student loans, you cannot un-consolidate them again, so make sure to consider your choice carefully.
How is Interest Calculated When I Consolidate Student Loans? When you consolidate student loans, your lending company pays off your government loan and issues you a new loan under its own name. The typical way to determine the interest rate on the new loan is to take the average interest rates on all of the student loans, and offer a new rate that is an eighth of a percentage point higher (up to a maximum interest rate of 8.25%).
Although agreeing to a higher interest rate might not sound like a good reason to consolidate student loans, this rate is fixed over the life of the loan, whereas the government rates will fluctuate. Since rates are at an all time low right now, locking in the current rates might be a good idea. Furthermore, many banks give you ways to bring down the percentage rates. For example, some lending institutions will drop the rate by as much as a quarter point if you agree to automatic deductions from a checking or savings account, whereas others drop the rates after a certain number of timely payments. As an additional bonus, there is no penalty for paying off your consolidated loan early.
When Would You *Not* Want to Consolidate Student Loans? Before you decide to consolidate student loans, you should carefully consider your alternatives. For example, did you realize that it might be possible to have your student loan cancelled altogether? Student loan forgiveness options include volunteering, for the Peace Corps for example, or working for the government in a low-income area as a teacher or doctor. Cancellation is not possible, however, after you have consolidated your student loans. If this kind of work interests you and is available, it could be a better option than loan consolidation.
Another time to hesitate before you choose to consolidate student loans is when you are close to finishing your payments. Stepping up the payments and saving yourself some interest and the hassle of consolidation might be more advantageous to you.
Finally, there are loans that you might want to keep open because they offer special advantages. For example, if you are considering going back to school and you have a Perkins loan, you would not want to consolidate that with your other student loans.
The government will pay all interest on Perkins loans while you are in school, but if you have chosen to consolidate student loans, you will not be able to receive this benefit. You could always choose to leave any special kinds of loans out of the consolidation mix, however.
About the Author
About the author Mark Kessler..His website is quickly becoming recognized for it's wealth of information and resources on everything you need to know about student loans. Check it out right away, your bank account depends on it! Go to Student Loans 411
Student Loans: The Life Preserver Of Our Education System by Tucker R. VanZandt
A loan is the reason many students are able to go to college
and not have to worry about money until after they've
graduated. There is a lot of paperwork involved in the
application process of a loan, but once you've completed it
and been accepted, it will have been worth it. Loans
can help with the cost of books, tution and even living
expenses or they can cover them completely. It all depends
on your eligibility, which is determined in the application
process of the loan.
Applying for a loan is free and you can even complete it
online. You can get a copy of the application at your
college's financial aid office, post office or library. It
takes some patience and time to fill it out and various
paperwork is needed before you can turn it in, but you will
be happy once the loan comes in. Your grades are taken into
consideration when applying for a loan as well. Although you
don't have to have a 3.0 GPA to get a loan, you do need to
be making satisfactory grades to receive any assistance.
Your college will determine whether you're eligible to apply
for a student loan or not.
There are some criteria that you have to meet before you can
even be considered for a loan although. You must be a U.S.
citizen or an eligible non-citizen. You must be making
satisfactory grades and be attending a college that
participates in the federal student loan program. You also
need to be a half time student, at the least and truly be in
need of assistance.The amount of assistance you will receive
depends on whether you're an independent (you report only
your income and that of your spouse if applicable) or a
dependent (you report the income of both your parents). The
grade level you're in is also taken into account when the
loan assistance is being determined as well.
You don't have to pay back your loan as long as you are
enrolled in classes at least half time. 6 months after you
graduate is when you can expect to start having to pay back
the loan and you can set up a payment plan. Not all schools
offer loan programs, so you'll have to do a bit of homework
to see if yours offers such assistance. It's best to check
this important fact out before deciding on which college to
attend if money is an issue for you. Make sure to get your
application in early also, to ensure that your assistance
will get to you in time for the tuition due date. 60-90 days
before the beginning of the semester is recommended.
There are a couple different types of student loan awards
you can try to receive. A subsidized student loan means
that you do have great financial need for assistance while
an unsubsidized student loan means you do not have need for
assistance. The student that has a subsidized student loan
is not responsible for interest until they graduate and the
student with an unsubsidized loan is responsible at all
times for interest.
So, what are you waiting for? Apply for a student loan
today and you'll be on your way to that college education
you've always wanted for yourself!
About the Author
Tucker R. VanZandt is founder of All About Loans an
excellent resource site dedicated to information on loans
Student Credit Cards 101: A Student's Guide to Credit by Rebecca Lindsey
If you’re a college student, you probably already have a credit card. If not, you may have plans to get one or more soon. So why should you read on?
- Because financial debt is one of the main reasons that many students end up dropping out of college.
- Because your college years can be some of your most memorable—and some of your most costly. They don’t, however, have to be the beginning of an adult life strapped with debt.
- Although you may still feel in limbo between your teen years and adulthood, it’s time to take charge of your finances and manage them as an adult. The sooner you do, the sooner you’ll be able to start saving and spending your own money.
For those new to credit cards and for others who know all about credit, let’s go back to the basics.
Why do credit card companies court college students?
It’s obvious by the friendly representatives who offer a free t-shirt or CD just for signing up in the student center. Or the applications slipped into bookstore bags. Or mail boxes crowded with card offers. Credit card companies want college students to carry their card.
Did you ever stop to wonder why? One reason is loyalty—once a person has a card in their wallet, they are likely to keep that particular card and its upgrades for years to come. Another reason: college students are good customers.
While this may seem ironic considering that most college students are without a steady source of income, Robert Manning, Ph.D., Professor in the College of Business at Rochester Institute of Technology and author of Credit Card Nation, says this is one example of how the credit card industry has changed radically in the past decade or so. “Previously, conservative rules deemed a good customer as one that paid their bills on time,” he says. “Now, a good customer is one that can’t repay their debt.”
“Credit is no longer an earned privilege,” continues Dr. Manning. “It’s now considered a social entitlement, and the screening criteria (for card applicants) is weak.”
Banks make money by charging annual fees, late payment penalties and interest fees on unpaid credit card balances. Therefore, card holders with revolving debt (those who do not pay their balances in full each month) are desirable. NellieMae.org illustrates this point beautifully through an example of a student with a credit card balance of $7,000 at an interest rate of 18.9%. If this student faithfully makes the minimum monthly payment of 3% or $25 – whichever is higher, and does not charge anything else to the account, it will take more than 16 years and $7,173 in interest fees to repay the bill!
Additionally, Manning notes the banking industry has learned that college students will draw upon various sources of income to pay their debt—including student loans, money from part-time jobs, and as a last resort, many will ask a family member to supply the funds to get them out of debt.
How to make credit work for you, not against you
According to Nellie Mae, 81% of college freshman have at least one credit card. And for good reason. Credit cards enable online purchases—from text books to concert tickets, make it possible to rent a car, and help with medical emergencies or vehicle breakdowns. Used wisely, credit cards can be helpful throughout college, and can assist you in the development of financial management skills.
As soon as you get your first credit card or loan, you have entered the world of credit reports and scores. A credit report is compiled by credit bureaus and contains information about your identity and credit relationships, among other things. Credit scoring is a system that lenders use to help determine your ‘credit worthiness.’ Credit scores are based upon your bill-paying history, the number and type of accounts you have, late payments, collection actions, outstanding debt and the age of your accounts.
It’s vital to know that your credit score affects your ability to get loans, car loans, and home mortgages. Future jobs and insurance premiums can also be influenced by your credit score. By paying your bills in full or in a timely manner, a credit card will help you establish a good credit score. Late payment or no payment will help you earn a poor credit score. For more information on credit reports and scores and how they affect you, check out CardRatings.com.
Developing a new view about credit
Mary Ann Campbell, CFP, founder of www.MoneyMagic.com
and a money educator, cites unrealistic expectations as a major reason for high student debt.
Campbell, who teaches personal finance courses, says “Many students’ expectations of their earning potential after college far exceeds what their actual income will be.” She notes that some students use their credit cards with abandon during college, planning to pay off their debt when they land that great job after college. Indeed, some students forget that in order to get to the top of the career ladder, there are a few rungs, i.e., less paying jobs, they have to climb first. And the expense of starting a new job and life on your own can just add to existing debt.
Manning’s website, CreditCardNation.com, contains a great resource for students seeking a more realistic view of the first few years after college. Using the ‘Budget Estimator,’ a module designed by Manning, students can identify an average yearly or monthly starting salary for jobs in their particular major. The program automatically figures in estimates for taxes and social security payments. Students can then plug in expenses for housing, car payments, utilities, food, insurance, telephone and internet bills, clothing, credit card bills, student loan payments, and entertainment, etc. The module lets you know when you have spent more money than you make, and allows you to adjust payments as necessary until you get the hang of how your money is best distributed.
Students that seem to have the most credit woes? Those who believe their standard of living during and after college should not vary from when they lived at home on their parents’ income. Cable television, cell phones with cameras, and new cars become ‘necessities’ instead of nice extras.
Advice to grow on
When it comes to credit cards, students have great advice for other students. Heather, a college junior from Arkansas, recommends getting one card with a low limit. “This limits the amount of credit you have access to and therefore removes the temptation to spend more than you have or more than you can pay off immediately,” she says.
Another student recommends selectivity. “Don’t sign up for a card that charges an annual fee to use it, and read the terms of the card before applying. You wouldn’t believe how many people don’t know what an APR rate is.” For more information on finding the best rated cards, check out CardRatings.com. You can read reviews of cards from other students and get the lowdown on perks of various credit cards.
Campbell has three recommendations for students: The first is open communication. Campbell says students who are educated about financial matters seem to have a better overall attitude regarding credit cards. Students should find a trusted source to talk openly with about money issues. Second, students should switch from spending behaviors (such as shopping) to activities that help you achieve the same feeling of gratification or reward, such as intramurals, exercise or campus organizations.
Last, but certainly not least, enroll in a personal finance course as soon as your schedule allows. Says Campbell, “If it’s not required coursework, take it as an elective. You will learn a set of life skills that will not only help you right now, but also after college and for the rest of your life.”
About the Author
Rebecca Lindsey is a Senior Staff Writer for www.CardRatings.com. She began writing articles about consumer credit issues for www.CardRatings.com in September 2000.
by Mark Kessler
Are you concerned that bad credit will prevent you from going to college? While it is true that finding student loans with excellent interest rates is easier if you have a sterling credit rating, bad credit student loan aid is possible. For example, the most popular US Department of Education loan, the Stafford loan, assumes that most applicants will be going to college straight from high school, and will not have a credit rating yet. Therefore, Stafford loans do not even consider the credit rating a factor when it comes to qualifications. The same holds true for Perkins loans, which are federal loans designated for the neediest students.The only reason bad credit would interfere with these kinds of student loans are if you have defaulted on a federally granted student loan in the past.
Bad credit student loans are also possible if your parents have better credit than you do. In this case, a PLUS loan, which is granted to parents and not to the student, might be the way to go. US Department of Education student loans (like Stafford and Perkins loans) assume that the parents will pay for a certain amount of their children's schooling; PLUS loans are intended to cover the amount that the parent is obligated to contribute toward college costs.
Federal funding is a good choice for a bad credit student loan because they are specifically designed to help make college more accessible; therefore, their requirements are much looser than those of most banks and other lending companies. However, if you are unable to secure a US Department of Education student loan, you may need to turn to private loans. If you are planning to graduate in a field with a high earnings potential, like law or medicine, you might have a better chance of receiving a bad credit student loan from private lenders.
None of these choices are either/or possibilities, by the way. You may be able to put together enough money to finance college through a combination of any or all of the above types of loans. Moreover, even if your bad credit student loan is at a very high interest rate, all is not lost. Many student loans defer payment until you have finished college, giving you time to improve your credit rating. At that point, you might want to look into ways to consolidate your student loan at a better rate, lowering your payments to a more affordable level.
About the Author
Mark Kessler's website offers a comprehensive free resource of college financial aid for Consolidating Student Loans, as well as... Alternative Student Loans, ACS, Bad Credit, US Department Of Education Student Loans, including a variety student loan articles
Bad Credit Student Loan
When Should You Consolidate Student Loans? by Mark Kessler
If you have just graduated from college, the likelihood is that you are under a large amount of debt in the form of student loans. You might be wondering if there is any way to reduce the amount you have to pay. One solution for reducing your debt is to consolidate your student loans.
Student loan consolidation is similar to refinancing a house on better terms: although the principal of the loan will not be affected, the interest rates you can lock in when you consolidate student loans to a fixed rate can be substantially better, reducing your monthly payments by up to forty percent. Plus, you might be able to stretch out your payment time to reduce your monthly payment amount even further.
The disadvantage when you consolidate student loans during your initial six-month grace period is that you must start making your payments right away. This can be difficult if you have not found a job after graduation, although you can wait until just before the grace period ends to consolidate, and still receive the lower rates. Furthermore, once you have consolidated your student loans, you cannot un-consolidate them again, so make sure to consider your choice carefully.
How is Interest Calculated When I Consolidate Student Loans? When you consolidate student loans, your lending company pays off your government loan and issues you a new loan under its own name. The typical way to determine the interest rate on the new loan is to take the average interest rates on all of the student loans, and offer a new rate that is an eighth of a percentage point higher (up to a maximum interest rate of 8.25%).
Although agreeing to a higher interest rate might not sound like a good reason to consolidate student loans, this rate is fixed over the life of the loan, whereas the government rates will fluctuate. Since rates are at an all time low right now, locking in the current rates might be a good idea. Furthermore, many banks give you ways to bring down the percentage rates. For example, some lending institutions will drop the rate by as much as a quarter point if you agree to automatic deductions from a checking or savings account, whereas others drop the rates after a certain number of timely payments. As an additional bonus, there is no penalty for paying off your consolidated loan early.
When Would You *Not* Want to Consolidate Student Loans? Before you decide to consolidate student loans, you should carefully consider your alternatives. For example, did you realize that it might be possible to have your student loan cancelled altogether? Student loan forgiveness options include volunteering, for the Peace Corps for example, or working for the government in a low-income area as a teacher or doctor. Cancellation is not possible, however, after you have consolidated your student loans. If this kind of work interests you and is available, it could be a better option than loan consolidation.
Another time to hesitate before you choose to consolidate student loans is when you are close to finishing your payments. Stepping up the payments and saving yourself some interest and the hassle of consolidation might be more advantageous to you.
Finally, there are loans that you might want to keep open because they offer special advantages. For example, if you are considering going back to school and you have a Perkins loan, you would not want to consolidate that with your other student loans.
The government will pay all interest on Perkins loans while you are in school, but if you have chosen to consolidate student loans, you will not be able to receive this benefit. You could always choose to leave any special kinds of loans out of the consolidation mix, however.
About the Author
About the author Mark Kessler..His website is quickly becoming recognized for it's wealth of information and resources on everything you need to know about student loans. Check it out right away, your bank account depends on it! Go to Student Loans 411
Student Loans: The Life Preserver Of Our Education System by Tucker R. VanZandt
A loan is the reason many students are able to go to college
and not have to worry about money until after they've
graduated. There is a lot of paperwork involved in the
application process of a loan, but once you've completed it
and been accepted, it will have been worth it. Loans
can help with the cost of books, tution and even living
expenses or they can cover them completely. It all depends
on your eligibility, which is determined in the application
process of the loan.
Applying for a loan is free and you can even complete it
online. You can get a copy of the application at your
college's financial aid office, post office or library. It
takes some patience and time to fill it out and various
paperwork is needed before you can turn it in, but you will
be happy once the loan comes in. Your grades are taken into
consideration when applying for a loan as well. Although you
don't have to have a 3.0 GPA to get a loan, you do need to
be making satisfactory grades to receive any assistance.
Your college will determine whether you're eligible to apply
for a student loan or not.
There are some criteria that you have to meet before you can
even be considered for a loan although. You must be a U.S.
citizen or an eligible non-citizen. You must be making
satisfactory grades and be attending a college that
participates in the federal student loan program. You also
need to be a half time student, at the least and truly be in
need of assistance.The amount of assistance you will receive
depends on whether you're an independent (you report only
your income and that of your spouse if applicable) or a
dependent (you report the income of both your parents). The
grade level you're in is also taken into account when the
loan assistance is being determined as well.
You don't have to pay back your loan as long as you are
enrolled in classes at least half time. 6 months after you
graduate is when you can expect to start having to pay back
the loan and you can set up a payment plan. Not all schools
offer loan programs, so you'll have to do a bit of homework
to see if yours offers such assistance. It's best to check
this important fact out before deciding on which college to
attend if money is an issue for you. Make sure to get your
application in early also, to ensure that your assistance
will get to you in time for the tuition due date. 60-90 days
before the beginning of the semester is recommended.
There are a couple different types of student loan awards
you can try to receive. A subsidized student loan means
that you do have great financial need for assistance while
an unsubsidized student loan means you do not have need for
assistance. The student that has a subsidized student loan
is not responsible for interest until they graduate and the
student with an unsubsidized loan is responsible at all
times for interest.
So, what are you waiting for? Apply for a student loan
today and you'll be on your way to that college education
you've always wanted for yourself!
About the Author
Tucker R. VanZandt is founder of All About Loans an
excellent resource site dedicated to information on loans
Student Credit Cards 101: A Student's Guide to Credit by Rebecca Lindsey
If you’re a college student, you probably already have a credit card. If not, you may have plans to get one or more soon. So why should you read on?
- Because financial debt is one of the main reasons that many students end up dropping out of college.
- Because your college years can be some of your most memorable—and some of your most costly. They don’t, however, have to be the beginning of an adult life strapped with debt.
- Although you may still feel in limbo between your teen years and adulthood, it’s time to take charge of your finances and manage them as an adult. The sooner you do, the sooner you’ll be able to start saving and spending your own money.
For those new to credit cards and for others who know all about credit, let’s go back to the basics.
Why do credit card companies court college students?
It’s obvious by the friendly representatives who offer a free t-shirt or CD just for signing up in the student center. Or the applications slipped into bookstore bags. Or mail boxes crowded with card offers. Credit card companies want college students to carry their card.
Did you ever stop to wonder why? One reason is loyalty—once a person has a card in their wallet, they are likely to keep that particular card and its upgrades for years to come. Another reason: college students are good customers.
While this may seem ironic considering that most college students are without a steady source of income, Robert Manning, Ph.D., Professor in the College of Business at Rochester Institute of Technology and author of Credit Card Nation, says this is one example of how the credit card industry has changed radically in the past decade or so. “Previously, conservative rules deemed a good customer as one that paid their bills on time,” he says. “Now, a good customer is one that can’t repay their debt.”
“Credit is no longer an earned privilege,” continues Dr. Manning. “It’s now considered a social entitlement, and the screening criteria (for card applicants) is weak.”
Banks make money by charging annual fees, late payment penalties and interest fees on unpaid credit card balances. Therefore, card holders with revolving debt (those who do not pay their balances in full each month) are desirable. NellieMae.org illustrates this point beautifully through an example of a student with a credit card balance of $7,000 at an interest rate of 18.9%. If this student faithfully makes the minimum monthly payment of 3% or $25 – whichever is higher, and does not charge anything else to the account, it will take more than 16 years and $7,173 in interest fees to repay the bill!
Additionally, Manning notes the banking industry has learned that college students will draw upon various sources of income to pay their debt—including student loans, money from part-time jobs, and as a last resort, many will ask a family member to supply the funds to get them out of debt.
How to make credit work for you, not against you
According to Nellie Mae, 81% of college freshman have at least one credit card. And for good reason. Credit cards enable online purchases—from text books to concert tickets, make it possible to rent a car, and help with medical emergencies or vehicle breakdowns. Used wisely, credit cards can be helpful throughout college, and can assist you in the development of financial management skills.
As soon as you get your first credit card or loan, you have entered the world of credit reports and scores. A credit report is compiled by credit bureaus and contains information about your identity and credit relationships, among other things. Credit scoring is a system that lenders use to help determine your ‘credit worthiness.’ Credit scores are based upon your bill-paying history, the number and type of accounts you have, late payments, collection actions, outstanding debt and the age of your accounts.
It’s vital to know that your credit score affects your ability to get loans, car loans, and home mortgages. Future jobs and insurance premiums can also be influenced by your credit score. By paying your bills in full or in a timely manner, a credit card will help you establish a good credit score. Late payment or no payment will help you earn a poor credit score. For more information on credit reports and scores and how they affect you, check out CardRatings.com.
Developing a new view about credit
Mary Ann Campbell, CFP, founder of www.MoneyMagic.com
and a money educator, cites unrealistic expectations as a major reason for high student debt.
Campbell, who teaches personal finance courses, says “Many students’ expectations of their earning potential after college far exceeds what their actual income will be.” She notes that some students use their credit cards with abandon during college, planning to pay off their debt when they land that great job after college. Indeed, some students forget that in order to get to the top of the career ladder, there are a few rungs, i.e., less paying jobs, they have to climb first. And the expense of starting a new job and life on your own can just add to existing debt.
Manning’s website, CreditCardNation.com, contains a great resource for students seeking a more realistic view of the first few years after college. Using the ‘Budget Estimator,’ a module designed by Manning, students can identify an average yearly or monthly starting salary for jobs in their particular major. The program automatically figures in estimates for taxes and social security payments. Students can then plug in expenses for housing, car payments, utilities, food, insurance, telephone and internet bills, clothing, credit card bills, student loan payments, and entertainment, etc. The module lets you know when you have spent more money than you make, and allows you to adjust payments as necessary until you get the hang of how your money is best distributed.
Students that seem to have the most credit woes? Those who believe their standard of living during and after college should not vary from when they lived at home on their parents’ income. Cable television, cell phones with cameras, and new cars become ‘necessities’ instead of nice extras.
Advice to grow on
When it comes to credit cards, students have great advice for other students. Heather, a college junior from Arkansas, recommends getting one card with a low limit. “This limits the amount of credit you have access to and therefore removes the temptation to spend more than you have or more than you can pay off immediately,” she says.
Another student recommends selectivity. “Don’t sign up for a card that charges an annual fee to use it, and read the terms of the card before applying. You wouldn’t believe how many people don’t know what an APR rate is.” For more information on finding the best rated cards, check out CardRatings.com. You can read reviews of cards from other students and get the lowdown on perks of various credit cards.
Campbell has three recommendations for students: The first is open communication. Campbell says students who are educated about financial matters seem to have a better overall attitude regarding credit cards. Students should find a trusted source to talk openly with about money issues. Second, students should switch from spending behaviors (such as shopping) to activities that help you achieve the same feeling of gratification or reward, such as intramurals, exercise or campus organizations.
Last, but certainly not least, enroll in a personal finance course as soon as your schedule allows. Says Campbell, “If it’s not required coursework, take it as an elective. You will learn a set of life skills that will not only help you right now, but also after college and for the rest of your life.”
About the Author
Rebecca Lindsey is a Senior Staff Writer for www.CardRatings.com. She began writing articles about consumer credit issues for www.CardRatings.com in September 2000.