Your financial aid package for your new school probably includes loans, all of which must be repaid with interest. With so many options, choosing a lender can be daunting. But if you understand a few basics, you can usually find the best loans for you.

Fill out the Free Application for Federal Student Aid (or FAFSA). This is a must. Without it, you won’t have access to federal student loans – many of which are not based on need (or your income).

Always use federal loans first, such as the Perkins, Stafford, and PLUS loans. They carry lower, fixed interest rates and often have better terms than private (or alternative) loans.

Know the difference between the types of loans in your financial aid award.

• Subsidized Stafford loans: the government pays interest while you are in school
• Unsubsidized Stafford loans: you pay interest while you are in school
• PLUS loans: loans for graduate students and parents of undergraduate students
• Private loans: loans from banks or other non-government sources, often with competitive rates.

If you need to use private loans, consider all of the costs. Private loans can have origination fees, different ways of compounding interest, and higher interest rates or higher APRs. It pays to compare.

Know your credit score. The lower your score, the higher your rate will likely be on a private loan. If your rating is poor or non-existent, you might need a cosigner. Fees and penalties can be higher than with government-backed loans and your repayment terms may not be as favorable.
New online service allows you to compare your student loan options – across 25 different lenders. Save time and money. Get the tuition process under control now.  

Using a credit card wisely is an important step in building a good credit rating. If you’re trying to re-build your credit or if you’re young and just starting out, pay close attention the next time you receive a new card offer in the mail. When you’re trying to build a positive credit history for yourself, using the right credit card makes sense. Making small purchases and then making your payments on time each month is a simple, reliable way to build an outstanding credit report.

What to Look For On a Credit Card Application

If you receive a credit card application that appears to offer a low monthly interest rate, don’t make a decision until you turn it over and closely examine the Disclosure Box. In it you’ll find a more important measure of credit terms - the Annual Percentage Rate, or APR. By federal law, the Disclosure Box will also tell you whether or not the card has what is called a grace period - a number of days, usually 25, until your purchase starts to accrue finance charges. If a card has a reasonable grace period and you pay off your balance at the end of each billing cycle, you won’t have to pay finance charges. It isn’t difficult to find credit cards that offer these grace periods, so if the Disclosure Box doesn’t declare one then throw the application in the trash and look for a better offer.

If you don’t have any credit history at all, a credit card company won’t want to give you a very high credit limit, but that’s probably best when you’re just starting out. You don’t want to be tempted to go into serious debt with your very first credit card.

Calculate Your Monthly Finance Charges

Ideally you want to pay off your balance each month to avoid paying any finance charges, but when that isn’t possible it’s important to know the actual cost of the items you purchase. The annual percentage rate, divided by 12 months, gives you the periodic rate that will be applied to your outstanding balance each month. You can estimate what your monthly finance charge will be by multiplying the periodic rate times the outstanding balance. It may sound complicated at first, but taking the time to learn this simple equation can make a big difference in how you use your credit card.

When you’re able to see how much you actually spend on an item that you don’t pay off at the end of the month, it might help you to resist the temptation to over-use your card. An item that you want to buy might be on sale at the time you purchase it, but if you don’t pay off your balance at the end of the month then those finance charges can dramatically increase the actual amount you’ll end up paying.

Use Your Credit Card as a Tool

Credit cards are only one of the tools available to help you build a positive credit history. Making on-time payments for other forms of credit, such as rent and utilities, are also important. Depending on your situation, within 1-2 years your credit rating will be improved enough that you no longer need to use your card for new purchases to maintain your good credit. Use these tools wisely, and they’ll help build your financial future!

Tags: credit card

Credit cards have revolutionized the purchasing experience since Diners Club released the first credit card in the year 1950.

The Dinners Club credit card gave consumers limited credit that, at times, even surpassed the personal savings of some participants. It allowed them to buy items they usually could not afford if they were to make a straight cash purchase. It also provided the convenience and safety of not having to carry large amounts of cash.

On average, American households possess 4 credit cards or a total of 13 payment cards if debit cards and store cards are included. There are, actually, 1.3 billion payment cards of assorted types in circulation in the United States.

But, if you think that credit cards have made the lives of modern American consumers easier, you may be wrong…

Statistics show that the average credit card debt for each household in the U.S. is $4,800 per month. Also, there were 1.3 million credit card holders declaring bankruptcy in the year 2003.

And if you still consider yourself unaffected by credit card debt, then consider this: upon retirement, most Americans can only expect to receive about 37% percent of their annual retirement income because of prior debt payment. This will leave many individuals depending on the government, family and charity for economic survival.

These are some scary facts. So before you find yourself in a position of economic uncertainty, it might be wise to evaluate your spending and current credit card debt.

If your credit card debt exceeds what seems to be a reasonable level, you may want to consider credit card debt consolidation.

So what is credit card debt consolidation?

In a nutshell, credit card debt consolidation is taking all your credit card payments and consolidating them into one monthly payment. This way, you don’t have to worry about managing the payments individually. Aside from this advantage, it may also provide you with the following additional benefits:

- Reduce interest payments
- Waive late and overtime fees
- Reduced monthly payments
- Debt relief in a shorter time
- Credit improvement
- Save more money in the long run

There are actually two major types of credit card debt consolidation…

You may want to consider a Credit Card Counseling firm. They assist consumers by consolidating all their monthly payments into one single payment and then dispersing this to the creditors on behalf of the consumers.

The other type is through a home equity loan or other secured loan. This is done by exchanging an unsecured debt (such as
credit card debt) for a secured debt (a debt backed by specific assets such as real estate).

Now, credit card debt consolidation isn’t a magic balm that will drive all your credit card debt malaise away. But, it will make paying all your debt easier and might save you money in the long run. Definitely an alternative worth considering…

Tags: Credit Card Debt

Credit card fraud is a serious problem and is a leading cause of identity theft. Credit card fraud is on the rise. Thieves, con men and scam artists steal credit card numbers and make millions of dollars of purchases, often before consumers are even aware that there’s a problem.

Because credit card fraud is so common in today’s society, we must take every step we can to secure our credit cards and information. Here are some simple things to keep in mind:

- Make sure you always know where your credit cards are located. Don’t let them lie around, or lend them to other people. Also, be careful what you do with your credit card receipts, as they often contain your complete credit card number.

- Open credit card statements promptly and check for any suspicious charges. If your issuer provides online account access, use that facility to regularly keep up to date on activities on your card.

- Call to activate and sign your credit cards as soon as you receive them.

- Keep a list of all your credit card numbers, expiration dates, customer service numbers and addresses. Keep this list in a secure place and keep it up to date.

- Retail sales employees who handle card numbers cause a large percentage of credit card fraud. Be careful of who you hand your card to, and don’t let it out of your sight if at all possible.

- Never give your credit card information out over the phone, unless you initiated the call or are very certain whom you are talking to.

- Be careful with your online purchases. Before entering any personal information on a website, verify that the website is secure. Do that by checking the status bar at the bottom of your browser, somewhere on there it’ll show the symbol of a closed lock to indicate that the website is secure and your information will be encrypted. That means that outside parties will not be able to read the information you’re sending.

Credit card fraud is a major problem faced by online businesses and merchants. It is costing them millions of dollars in losses, charge backs and processing fees every year. It is estimated that half of all credit card fraud is conducted online.

For that reason, if you have an online business, protecting yourself is vital. You have to implement every form of protection offered by your credit card gateway and merchant account holder.

Credit card fraud is clearly a very broad topic of discussion and one that we all need to take seriously.

Eating good, nutritious food and drinking enough water are vital to your health. The time you invest in making the right food choices and preparing healthy meals will pay off in dividends.

If you put just some of these tips into action over the next few weeks, you’ll definitely be protecting your number one business asset and feeling the benefits. Take that 15 minute break now you deserve it!

Tags: Credit Card Fraud

In today’s world our credit score is everything. Creditors and bankers approve or disapprove loans based on your credit worthiness. It is also something that will determine your credibility to certain employers or landlords.

If you have a good credit rating you will be able to apply for loans and/or credit cards easily. And, ultimately, isn’t that the goal? It will also mean that you will have more chances of getting certain jobs. You will be able to pay your bills on time.

Having bad credit reduces the opportunities of these things. You may get approved for a loan or for a credit card but you’ll most likely have a very high interest rate. You will be an “at risk” customer because the creditors are not sure if you will be able to pay your bills on time. If you are trying to apply for an apartment complex the landlords may take a look at your credit score to determine if you will be able to pay your rent and utilities.

These are just some of the many reasons as to why having a good credit score is very important in today’s world. However, what do you do if you happen to have a bad credit score? If you have bad credit it is important to fix the problem as soon as you can. Here are several ways to do just that.

First, you must stop your bad credit before it gets worse. So how do you do this? You pay your previous overdue debts as soon as possible. This cuts off the bad credit reports from creditors. It will not improve the actual credit score but it will put you on the right track to repairing your credit history.

Secondly, you must raise your credit score by opening a new savings or checking account. You should also apply for a secured credit card. This will mean that you will have a higher interest rate but it is also a good way to control your credit card spending and it will also raise or repair you bad credit score. By paying the monthly credit card bills on time you will be able to see a significant rise in your credit history report.

If you continue to follow these steps you will eventually start to see a good credit rating. However, your past credit history will contain bad credit scores and ratings. This does not expire for 5 to 7 years. You must remember that it does take time to raise your credit rating. You must be patient and diligent to see a change.

That is why it is very important to make positive reports for your creditors. They then will pass those on to credit reporting agencies. Remember to pay your loans and credit cards on time in order to get a good credit rating. By doing so you will eventually end up with a good credit score and history. Never miss out on a future financial opportunity when they come your way.

Tags: Credit Reports