Student Credit Cards Pros and Cons

Most people agree that learning to manage one’s personal finances at an early age is imperative. I certainly did not have much guidance in this area when I was studying and between seeing my friends and cramming for exams it did not rate as a high priority! Financial independence is something most human beings strive for yet very little is taught on this subject at schools and universities alike. It is a shame that such critical life skills are rarely addressed in our youth unless our parents are particularly diligent in this area, as many of us have to learn our lessons the hard way.

Whilst at university I observed many of my friends struggling with student credit card repayments. These guys had fallen into the easy trap of spending money they didn’t really have and leaving the worrying for a rainy day. Well guess what? When it rained it poured! One particular friend of mine was spending a lot more on his credit card than he was able to earn each week. I’m sure it was nice buying all those girls those drinks but was it worth the headache of insurmountable credit card interest repayments? This friend still pays to this day for his mistakes as his credit history will not qualify him for anymore credit of any kind. This is quite sad because credit actually can be beneficial to those who manage it appropriately. In fact it could be argued that every human being will need or at least benefit from some type of credit in his or her lifetime. You may know that it is very rare for investors to use their own money in business, instead they leverage the bank’s money to gain profit for themselves before paying the bank back. This an acquired skill and a whole other topic.

So, the question is; should students have their own student credit cards? Despite my rather bleak introduction to this article I would say absolutely yes. I say yes because as I said there are many benefits of having some credit. Also, learning how to manage credit from an early age will set you up to avoid some serious financial headaches in the future. Remember my friend? Trust me, you don’t want to end up like him.

Student credit cards are readily available these days. All major banks will actually have a range of credit cards specifically suited to the needs of the student. Often this might mean reduced rates, student focused benefits, etc. Applying is made very simple by websites like http://www.uscreditcardguide.com where you are able to review the best offers from different banks and also apply online for fast and easy approval. Just remember to have your personal financial information on hand so you can fill out the forms correctly.

There are a few reasons I believe it is important for students to have their own credit cards. Firstly I recommend every student have an ‘advisor’. An advisor can be a professional, a parent or family member, or friend with skills in this area. Most college campuses will offer free financial advice to its students as well. An advisor can help you with budgets, understanding interest rates and help you understand your unique situation. It is important to understand your earning capacity and know whether it will allow for credit card repayments.

It is very beneficial to anyone to establish a credit history which banks use to assess further loan and credit applications. If you wish to own your own home you will have to go through this one day and the longer you can show have adequately maintained a credit card and its payments the better chances you will have.

Financial emergencies, which all of us can relate to, will also come up and a credit card can really make things easier to manage these little crises. Often a low limit of $500 to $1000 is all you need to cover some unexpected expense. It is a great feeling knowing you can handle these situations without having to phone home or borrow from a friend.

Simply using credit cards to pay for things and then transferring money from your savings account to cover the costs on your credit card is a good way of earning benefits from your credit card supplier. These benefits will range from frequent flyer points to shopping credits. Check some really cool student cards including the extremely popular MTV Card.

What Are Reward Credit Cards?

Reward credit cards or loyalty cards earn their proprietors certain inducements in terms of cash back or redeemable reward points. These benefits and reward points maintain mounting as more than than than charges are applied to the card, i.e. more you pass more you get. The best-known reward cards are those that offer frequent circular miles or cash based upon the amount of purchases made with the card. There are numerous companies that offer you ‘fantastic’ Oregon ‘unbeatable rewards’ for the privilege of providing you with their credit card, however, which card you utilize should be chosen carefully.

Annual Fees

Convenience users or people who utilize credit cards for frequent purchases harvest the upper limit benefit out of reward credit cards. Many of these reward credit cards come up with an annual fee, sometimes higher depending on your ‘reward’ level. This fee should be taken into consideration when estimating any hereafter reward level. See the sorts of reward strategies being offered and the minimum amount you need to pass each calendar month in order to help the reward bonuses. Analyze your disbursement habits, since the degree of disbursement determines the degree of benefits earned.

Golden Rule of Reward Cards

There is one golden regulation concerning any type of reward card, whether it be an chemical attraction credit card or cash back, you must pay the balance in full every month. If you make leave of absence a balance and interest accrues on this it will negate all benefits that you received from the card, in fact it could stop up costing you more than in interest than you earn with rewards.

Which Reward Card?

These credit cards make not just earn you circular miles. You can earn reward points redeemable against discounted or in some cases free gasoline, gift certifications for wares at peculiar retail merchants or for general online use, and even price reductions on your adjacent automobile. Though free circular miles might entice you to purchase an air miles reward card but ultimately if you make not wing frequently adequate to deliver those miles, you will be at a loss. However, on the other manus cash back or price reduction points card could be more than good to raise a aslant budget.

Conclusion

In general choosing the right reward card for your needs is probably the most hard determination that visitants confront when choosing a credit card. Most other types of credit card are simple adequate to choose, whether it is a balance transfer card, an introductory 0% purchase rate or an adverse credit card. However, with the reward card you must be able to pay the balance in full, cipher the annual fee cost then, estimation your disbursement degree and then cipher your estimated rewards.

Then make it over and over again with every card that entreaties to you.

Student Home Purchase Plan

Tuition costs are climbing, housing costs are climbing, it seems like all the costs for students are climbing these days. Students can afford cost increases less than any other demographic in Canada. Because of this, parents and students alike are looking for new ways to offset the costs of education.

Student loans can be used to defer these costs to some extent, but they need to be repaid after graduation. It's difficult to climb the corporate ladder or get ahead in life when you have $30,000 worth of debt before your first job is even found!

Bursaries, grants, and scholarships are another great source of funding for a student. However, the amount of money available is thinning, and the competition is growing stiffer for this money each year.

The average student, over a 4 year degree, pays over $16,000 in tuition and books. Housing costs approximately $38,000 for a 4 year degree. This is based on rent of $800 per month for 48 months.

This means the total cost of education for a student is over $54,000 before paying for any clothes, food, or recreational expenses. Given that the average student doesn't qualify for more than about $9000/year in student loans, this means an average student needs to find over $18,000 during their 4 year education career to be able to go to school. Not to mention the cost of food and clothes.

So how does a student get ahead in life, avoid massive student loans, and still get an education?

Many parents have been turning to Real Estate as a solution for a solution. Let me explain what they're doing…

When their first child enrolls in university, the parents purchase a small home with easy access to the University. The more bedrooms the better! This opens many possibilities for the parents, as well as the students.

First, the property will likely appreciate in value, presenting the parents with equity that can later be used to repay student loans or their own personal use.

Second, the rent the student would have paid to a landlord or dormitory is being used to repay the mortgage, creating more equity in the property.

Third, being a rental property, the tax benefits of the property are fabulous. Any interest paid on the mortgage is a write-off. Maintenance and improvements, as well as taxes and often utilities, are expenses that can be written off.

Fourth, there is the potential for additional tenants. Suppose you were to purchase a 3 bedroom bungalow for approximately $150,000. The cost of the mortgage would be approximately $900; based on a 5.5% 25 year mortgage with 5% down payment. That's just $100 dollars more than rent on a typical 1 bedroom apartment close to the University of Alberta right now.

Your child finds 2 roommates to share expenses with. They each pay you $600 per month; the tenants are then saving $200 per month over the cost of renting an apartment. A good deal for them!

Your total revenue on the home is $1200 per month. Your child lives for free, and clears $300 per month, which can be put towards living expenses and spending money. Now your child can go to school, not work, and focus on studying.

What if you were to finish the basement with an additional 2 bedrooms? That would essentially double your income, or allow you to "clear" $1500 per month. Your child gets $500 per month for expenses and living, and there's an additional $12000/year ($100/month) to be put towards tuition, books, and other university expenses.

Let's look at this again, using 2 family as examples. The Smith's and the Jones'.

The Smiths send their son, Steve, to university for 4 years. He rents an apartment in residence for $800 per month while going to school. His tuition, including books, is about $4000. Spending money, clothing, and food costs are approximately $500 per month. So Steve's annual costs are approximately $20,000 annually.

Student loans and scholarships (assuming Scott qualifies) cover approximately half of this, leaving him and his parents to cover the rest. Scott has to get a part time job to pay for some of it, and work full time in the summers to help.

The Smiths struggle through, using their savings and hard work to get through a tough 4 years. When Scott graduates, he has to start repaying is $30,000-$35,000 in student loans. He'll be making that payment for the next 10 years…

Now let's look at the Jones'.

The Jones' purchase a home close to the school for their daughter Sally. They make a 5% down payment ($7500) on a home worth $150,000. It has 3+2 bedrooms. Their daughter lives in 1 room, and manages the rest of the tenants in exchange for free rent and a monthly allowance of $500 to cover her living expenses. Each of the additional 4 rooms are rented for $600 per month including utilities and laundry. A great deal for ANY student.

Each month Sally collects the rent from her 4 roommates, totaling $2400. She keeps her $500, and deposits the rest into a bank account dedicated to the property. The mortgage and taxes get paid each month from that same account. Together, these cost $1100 ($900 for the mortgage and $200 for the taxes). That leaves an end-of-the month profit of $800 for the property. That money just sits in the account in case of emergencies, repairs, or other unforeseen expenses.

Remember, the taxes and interest on the mortgage are tax write-offs at the end of the year for Mr. & Mrs. Jones.

At the end of the first year, September to December, there is $3200 worth of cash in the bank account, or roughly 50% of the initial down payment. Sally is happy because they can use that money to pay for Sally's 2nd semester tuition without any student loans, not to mention that she hasn't needed to work a job while going to school.

Mr. And Mrs. Jones are happy because of the great tax write-offs they get from the property, plus Sally has no excuses for not getting good grades.

Over the summer, the house pays for Sally to take some extra curricular courses, or perhaps do some traveling. Maybe she even just lounges around the yard and does nothing. She has options because she doesn't have to work.

By the start of September of the next year (beginning of Sally's 2nd year at university), the Jones' have collected $6400 in revenue from the property. Sally's tuition for the next semester is paid, so are her books and she's living for free. The cycle continues for the rest of her time at university.

At the end of the 4 years, they have profited over $20,000 in cash after all expenses. They have also been paying down the mortgage and the property has likely increased in value.

Sally hasn't worked a single day while at school, she has absolutely no student loans, and is fresh and ready for the work force. She's carrying no debt, so she quickly gets ahead in life.

Sally graduates with honors because she could focus on her studies and not worry about making money for school. Total investment from the Jones': $7500 in the initial deposit plus Sally's first semester tuition of approx. $2000.

Total profits; $35,000 in cash and equity. Is it any wonder why we're all trying to keep up with the Jones'!

But it doesn't stop there…

The Jones' now have to figure out what to do with the property. Sell it? Sure. They would net a tidy profit from the home. Remember, the mortgage has been paid down for the last 4 years, as well as the value increases of the home over those 4 years.

But let's say they keep the home and rent out the entire property to students. Their total revenue could be as high as $3000 per month, or $1900 after mortgages and taxes. And that's assuming that the rental rate hasn't gone up over the 4 years…

If you were the Jones', you could go to www.mercedesbenz.ca, pick out his and hers Mercedes convertibles, and not pay a dime for them. The leases would be covered every month by the $1900 in revenue.

For being such great parents, and paying for your child's entire education, you deserve a couple of convertibles don't you?!?

All figures are approximate, and provided as examples only. Some properties may not perform as well, while some may perform better. To select a good investment property, contact a real estate professional like John Carle and Sharon Gregresh. We do not guarantee good grades for your children at school.

Car Insurance For College Students

As your kid go forths for college, many ideas may run through your head. One of the last ideas is probably about your auto insurance, but it is a necessary thought. Many colleges make not allow freshmen to have got got cars on campus, yet over two one-thirds of the remainder of the students have cars. So what are some of your options regarding your auto insurance coverage on your child’s car?

The first option, which may do you a small less popular with your child, is to go forth the car at home. Discourse this option with your broker or agent, as you could be eligible for a discounted rate if the statute title of the car is in your child’s name, no 1 will be drive it, and your kid will be more than than 100 miles away from home.

Now, there are some grounds to allow your kid to convey the car to school, including a job, living off campus, and even just the pouting human face of your college student. If you should allow your kid to take his or her car to college, then you should first advise your auto insurance company that the car will be housed in another location. Be prepared, though, for a change in your premium, as it can increase or lessening depending on your auto insurance company.

A College Loan Will Finance Your Education!

A college loan have given people all over the United States a opportunity to additional their education, even if they are not making a batch of money. Education loans can be a large aid in paying for college. You'll happen these loans offer a low interest rate and a generous repayment period. Of course, student loans must be repaid, usually with interest, although some instruction loans have got commissariat for cancellation if the borrower executes a program-related service. If you are looking for a loan, be aware that there are many different types of loans. Try to happen the student loan that tantrums you the best.

For example, there is a loan called the Federal Soldier Stafford Loan. The Federal Soldier Stafford Loan is the most widely used loan in the student instruction loan program. Federal Soldier guidelines bounds the upper limit interest rate to no more than than 8.25% and lineation repayment terms of up to 10 years. Remember that if you ever need aid or are falling behind on payments, see a consolidate student loan.

Tips on getting a postponement for your College Loan.

If for some ground you are not able to ran into your monthly payments, see a college loan deferment. A postponement is a suspension of payments for particular reasons. Usually, those who borrowed their first Stafford Loans after July 1, 1993, are eligible to postpone payments if are enrolled in astatine least half-time at an eligible school, unemployed, in a alumnus fellowship program, in a rehabilitation preparation programme for people with disabilities, or agony economical hardship. A college instruction is expensive, but with the right student loan you will be attending social class without financial concern in no time!

Student Car Loans

Are you ill of public transportation? Perhaps you are tired of having to walk to social class in wet, cold weather? Maybe you need a car to get to and from a new occupation that you just started. If you are a student seeking an easier agency of getting around, there is answer! You can apply for a student car loan, even if you have got no credit or bad credit!

Student car loans have got two major advantages!
1) Buying a car will assist eliminate all of your no-transportation headaches! 2) Utilizing a car loan to purchase a new car will assist construct your no credit or bad credit history into a positive one. Every monthly payment you do for your car loan will be reported to every major credit reporting agency.

I have got no credit. How am I going to get approved for an auto loan?
With most car loan companies, being immature and having no credit is not a factor when it come ups to granting approvals. How come? Because a car loan is a secured type of loan. The lenders are protected by the fact that if your loan travels into default, they get your car.

What about bad credit? How make students get approved for a car loan with poor credit?
Same thing as getting approved for funding with no credit! Students with bad credit should not have got a problem getting a car loan with bad credit because the lenders are protected; you don’t pay, you lose the car!

What about interest rates? What can one anticipate with poor credit? What sort of rates are associated with no credit car loans?
The interest rates related with bad credit student funding will be given to be a small spot higher than interest associated with no credit student loans. No credit loans with be slightly higher than interest rates for student with good credit. However, no matter what your credit is, if you do your payments in full and on time, in about one twelvemonth you can apply for auto refinancing and accomplish a lower interest rate for your car loan.

Do students need a co-signer when applying for college student auto loans?
Typically, auto finance companies will not necessitate a co-signer for loans up to $25,000. If you are a student, there is no need to have got a car loan for an automobile that costs more than $25,000.

What about buying? Bash Iodine need to purchase from a dealer? Can I purchase from a private seller?There are only a few auto loan companies that offer the flexibleness of being able to purchase from anyone you want. Most finance companies work directly with dealers, often only with franchised dealers. However, dealers will work with you to happen any brand or theoretical account of new or used car that you are looking for.

Getting a student car loan is not a hard thing to do. In fact, as outlined above, it is pretty simple! Just do certain you do your car loan payments in full and on time, every month!

It Only Takes a Few Simple Steps To Avoid Student Loan Debt

Student loan debt is a problem that impacts many former students. It is a long and hard procedure to pay off a student loan. Undoubtedly, it is much easier to avoid student loan debt in the first place. There are a few simple stairway that tin be taken to either flight student loan debt or guarantee that the debt won’t be too hard to pay off in the future. See student loans only after you have got researched all the beginnings of free financial aid.

Many people who are eligible for financial don’t even recognize it and instead take out a student loan. If you are not eligible for financial assistance and need to take out a student loan, be aware that there are three major types of student loans: Federal Soldier Soldier Soldier Family Education Loans, Federal Direct Loans, and Federal Perkins Loans.

Make certain you don’t travel over your caput in debt by deciding how much you can afford to borrow, and how much you can realistically repay.

Ask for aid if you have got problem paying off your Student Loan Debt.

If you’re having trouble repaying your loans, don’t be afraid to speak it over with your lender or loan servicer. Generally, the earlier you inquire for help, the easier it is to get it.

If you are having problem remembering to pay your student loan, inquire a bank for aid and they should be able to put up an automated paying service, where you won’t have got to worry about authorship a check. Or, see asking for student loan debt consolidation, which will compound all your federal loans into a single loan.

Are You Ready for Your Student's Student Loans?

Your boy or girl is a high school senior and your disquieted about the approaching year, and more than importantly, the approaching student loans? College have got go so of import in your children's hereafter that parents have begun to program for it at their child's birth. But, not all of us, as new parents thought that far ahead or could afford too. So, now what? Student loans, whether they are federal loans or not, are options to considered, but to understand first.

Many students that come in college need financial aid. College financial assistance supplies for direction as well as the costs of books. But, usually, it makes not supply for life arrangements or meals. These are added disbursals most of the time.

Federal financial assistance or Federal Soldier Soldier student loans are very common picks for college. Federal Soldier financial assistance are usually grants which make not have got to be paid back. Federal Soldier loans are loans backed by the authorities and make have got to be paid back but with a low interest rate. These loans usually have got 10 old age to be paid back. These loans are usually referred to as direct student loans as they are paid directly to the higher learning establishment.

Finding the right student loans for your kid can look a spot overwhelming. It can go unreassuring if you make not get the information you are looking for. So, what can you make to set up for your student's expenses? First, once the school have been chosen, do an attempt to travel to or contact the school's financial assistance offices. These people can assist you one on one and measure your needs. They occupation is to supply you with information about support your kid education. Of course, they desire your kid to attend their school, so they will offer you ever spot of advice you need. But, you can also happen this information online as well as at local libraries. Forms will be available there.

So, take a few proceedings and program out your ideas for support your child's education. And since many of us have got not been able to salvage for their future, we must take the clip to happen the lowest interest rate loans available to make so. Spending this clip learning, will heighten and authorise you to assist your kid with their learning.