credit score
Sep 14 2016
How to Start Building Credit in College

As you prepare to enter college, you need to make sure that you also set yourself up for success when it comes to your credit score and financial future. If you do not start working on it now, you will not be able to finance the things you want as you transition from college life into real life. Below, we will go over some ways that you can start to build up your credit while you are in college.

  1. Get a Credit Card

One of the first steps that you can take to build up your credit in college is to get yourself a credit card. You will find that there are MANY choices when it comes to credit card options. You should evaluate all of your options before you apply for any.

As you look for a card, think about whether or not you want cash rewards, point rewards, or none of those options. You also need to study the information presented to you and make note of any annual fees, interest fees, and minimum payment charges.

Credit Card

If you do apply for a card and are approved, you should only use your card to purchase items that you know you can afford. It would not make much sense to purchase a $750 television set if you know you do not have that much money in your account.

Be wise and spend frugally when it comes to your card.

  1. Consider Being an Authorized User

If you cannot get your own credit card or you do not want to make that big of a step just yet, consider talking to your parents and find out if you can be an authorized user on their credit card.

When you are an authorized user, you can start to build up your credit score, but you do not have as much liability. Of course, you are responsible for your own payments, but your parents can safeguard you and themselves by controlling the spending privileges you have too.

Also, even if you do not use the card, you will receive a boost in your credit score when your parents make their monthly payments and use the card.

  1. Put a Bill in Your Name

Another way to start building up credit while you are in college is to open up an account with a billing company in your name. What we mean by this is something such as a cell phone or a utility bill.

These companies report your payment history and balance to all credit bureaus and you will find that as you pay your balance each month, your score receives a small boost.

The more you pay your bill on time, the more likely it is that you will start to receive enticing offers for credit cards that have zero interest, no fees, etc.

  1. Pay Your Bills

We mentioned that you should put a bill in your name above, but just a bill alone will not boost or build your credit score. You need to pay that bill too!

You want to do your best to avoid missing payments or paying late on your bills because this will negatively impact your credit score.

bills

Remember, pay ALL of your bills on time ALL of the time! If you ever find yourself in a situation where you cannot afford the payment, call the company you have a balance with immediately. They may be willing to work with you and when they do, they do not typically report the outstanding balance as a late payment.

  1. Pay Your Student Loan Interest

Paying your student loans or at minimum, the interest on them, will help you build your credit while you are in college. These interest payments are not going to be much, but your federal student loans do show on your credit report. Therefore, if you pay them, it will show and it will improve and build up your credit score.

  1. Keep Your Debt Low

If you do have some debt, make sure you keep it to a minimum. Companies look at your debt to income ratio and if you have more debt than income, you will hurt your credit score.

Even if you use your credit card, make sure you do not max it out and do not carry a balance on it from month to month without making full payments.

Building credit in college will take some financial discipline and work, but it is possible. You will find that if you build your credit now, you will have a wonderful financial future ahead of you.

 

 

 

 

 …

Gilbert Guadalupe 0 Comments
graduation
Jun 12 2016
The Differences Between Federal and Private Student Loans

If you have already decided that a student loan is in your near future, you may be wondering just what the difference is between a federal student loan and a private student loan. While both of these loans will provide you with money to go to school, there are many key differences that you need to take into consideration before you settle on the type you plan to take out. Below, we will go over the differences, which should help you pick the right one much more easily.

Federal Student Loans

money treeWhen you take a look at federal student loans, there are two main types, which include the federal direct loan program and the federal Perkins loan program. The Perkins loan program is designed for students who have an exceptional financial need and is not as common.

The federal direct loan program is one of the most popular and relied on loan programs for students. The Department of Education is the lender when you take out one of these loans. There are four subcategories of loans, which include the direct subsidized loan, direct unsubsidized loan, direct PLUS loans, and direct consolidation loans.

Subsidized loans are for students who do have a financial need and unsubsidized loans are for students who do not need help financially.

Benefits of the Federal Student Loan Program

Federal student loans are beneficial for students in a variety of ways. For example, you do not have to pay interest on your loans until you graduate or leave school. In some cases, the government will actually pay for the interest on your student loans while you attend school.

Federal student loans also offer flexible repayment plans. You can apply for different programs including the income-based repayment plan. This plan will evaluate how much money you make annually and then base your monthly payments on a percentage of your discretionary income. Sometimes, students have a $0 payment every month.

In addition, loan forgiveness programs do exist and as long as you meet the requirements, your loan will be forgiven.

Lastly, the interest rate on your loan is fixed instead of variable. This means that you will pay the same interest rate throughout the life of your loan and you do not have to worry about it fluctuating.

Private Student Loans

holding moneyA private student loan is a loan that is offered by a bank or private institution and it is not offered through the federal program. These loans are different than federal loans and offer a variety of different benefits.

Typically, to apply for a private student loan, you need to have good credit, a favorable credit history, a job, and you may need a co-signer. This is often difficult for students to obtain and thus, they cannot always apply for a private loan.

Benefits of Private Student Loans

While these types of loans differ from the federal loan program, there are still some benefits of choosing this option.

For starters, private loans often come with a variable interest rate, which means you may receive a significantly lower interest rate than you would with a federal loan. If you are not too worried about a rate increase, then the variable rate will benefit you in a number of ways and you will not only pay less per month, you will also save thousands of dollars.

Private student loans are also beneficial because you can obtain more than one when needed. A federal student loan is only offered in per year or semester amounts, whereas, you can obtain multiple private loans.

Downsides to Private Student Loans

There are some downsides to private student loans. For example, you do not have the same repayment options and protections that federal student loans offer and you must repay private loans immediately, meaning there is no break in between the time you receive the money and the time you graduate.

Final Thoughts on Federal and Private Student Loans

hatFederal student loans are a wise choice, but ultimately, it is up to you as to which one you want to apply for. Remember, you do have more protection when you apply for and receive a federal loan.…

Gilbert Guadalupe 0 Comments
Jan 15 2016
Do’s and Don’ts for a successful High School Science Fair Project

Coming up with a unique project idea can be challenging especially when the science background of a student is poor.

School Science Fair Project

Parents and teachers have a significant role to play in helping students choose and execute their projects.

It is vital for a student to select a project that can be done within the predetermined budget and time.

Students should come up with quick and easy high school science fair projects that match their abilities and which they can perform well.

Do’s and Don’ts to aid students succeed in their projects

• Proper selection of research topic is crucial. Students should pick on topics they are comfortable in.

computerIt should be the topic they are well-acquainted in and can gather as much information as possible.

Some students select topics they cannot complete within the stipulated timeframe and end up failing.

Projects that are time-consuming and require information from sources they cannot access should not be picked.

Magazines, internet articles, documentaries and reference books among others are excellent sources of information.

• It is vital to start a project early. A big mistake that most students do is to wait until last minute then they start working on their projects.

What happens is that they end up including wrong and misleading information that makes their projects rejected.

Starting a project the earliest is the best step to take.

• Choose a proper scientific method when doing a project.

This helps in showing the objective of the project when writing a hypothesis, how variable were measured, and how they were selected.

This gives the project some direction and indicates that the student had some goal in mind.

• Incorporating charts, graphs, lettering and background colors make the project easy to understand. Besides, it also makes it grab attention with ease.

However, students should be keen when choosing background colors. Clashing colors can reduce the final mark.

• Practice before the final presentation matters a lot. Practice helps a student realize flaws in their projects and gives them time to do the necessary corrections.

Doing a dry run in front of friends or family members is the best step to take.

Quick and easy high school science fair projects are the best learning experiences students can undertake to qualify for scholarships, earn prizes as well as distinguish them for college application. In fact, it involves much more than typical homework as it involves a lot of thinking and creativity.

In summary, the success of any science project heavily depends on the topic chosen.
…
Gilbert Guadalupe 0 Comments

Privacy Policy - Terms and Conditions