How Secure Are Credit Cards?

You have had credit cards for a while, you have a good credit score, you are pretty good at controlling and managing your debt, and you feel that you have handled credit cards and the responsibility that comes along with them fairly well ever since you started out. But how safe are credit cards? Despite the ability you have to keep your credit cards under control, is there anything outside of your control that could hurt you and your credit score?

The form of security differs with each secured credit card. Many credit cards do not have really great security. So when you are shopping for a credit card, make sure you know what you will be protected against and what kind of risks you will be taking.

There are several things that have improved about credit card security, and technology is one thing to thank for that. The security that protects you from getting ripped off has gotten better recently, and is continuing to improve. It is getting more difficult for thieves to get money off of your credit card without you knowing it. Here are few examples of the security that is being used to protect you against such fraud.

One way to protect yourself from getting your credit card misused by someone you do not even know concerns purchases made online. When you buy something off the internet, many places you buy from will ask for a shipping address along with a billing address. This makes it so that if someone who has stolen your credit card account number buys something online, they would have to pick it up at your home in order to get it at all.

Another form of security is basically a fake account number. This is also for online purchases. Certain credit card companies will provide an account number that is different from your credit card number, sending that number instead of your real one to the person you buy from. This allows only you and the credit card company to see and use your real account number, and no one else.

Once the transaction has been done with the fake account number, it is verified through your credit card company, then charged to your real account. A credit card thief would attempt to use the fake credit card number to make other purchases. This person would be denied access to your account, because once the transaction is finished, that number becomes invalidated.

There are these and several more forms of security that will protect you from credit card fraud. Many people out there can get away with purchases made on your credit cards that you end up having to pay for, but the amount of fraud in recent years has gone down considerably, and the credit card world is becoming a little safer. It is important, when you are looking for a credit card, to know what type of security it has, if it has any at all, and the things you should do in case you are a victim of credit card fraud.

How Can You Obtain A Russel Simmons Card?

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First of all, what is a Russel Simmons Card? A Russel Simmons Card is a type of prepaid card that allows you to buy things on credit when you do not have a bank account of any form. Other credit card companies will not allow you to get a credit card with them unless you do have a bank account. This is why so many Americans today benefit from the Russel Simmons form of prepaid card. But how do you get your hands on one of these cards?

How Does It Work?

A Russel Simmons card basically works like a debit card. It allows you to put a deposit in of as much as you want, and you are only allowed to spend that much. The best part about it is that it is safe, because you do not run up huge credit card bills that you cannot pay back.

You can buy things off the Internet and order things by phone, just like many other credit cards. You are allowed to get money out of an ATM anytime, and can use your card just about anywhere that Visa is accepted. This prepaid rush card is also less expensive compared to most cards, including other prepaid cards.

There are some fees that are incurred with the rush card. However, the fees are not as high as most credit cards, and even many prepaid cards. Perhaps you could shop around and decide what company you would like to go with based on those fees, such as processing fees and setup fees.

Having a Rush card is inexpensive, mostly because there are much fewer fees than a normal credit card company or a bank would charge, and you can benefit also because of the ability that card holders have to track their spending right up to date. You can also make payments on your bills and do other transactions online that, if you do not have a bank account, would cost you huge fees in other places.

How Do You Get It?

Getting a Russel Simmons card is basically like getting any other prepaid credit card. Everyone is eligible to apply for a Rush card, and no one can be turned down for not being employed, because you do not have to confirm on your application that you have a job. Another nice thing about it is that when you are being considered to have a prepaid Rush card, they will not check your credit report.

Whether or not a Rush card is right for you is basically your decision. It is a very helpful tool in getting you money that you need fast if you do not have a bank account. Banks can be a hassle because of their fees and contracts, but with a Russel Simmons card, you pay very low fees, which, by the way, include no monthly or annual fees, and you do not run the risk of getting into debt that you cannot escape.

If I File Bankruptcy, Can I Keep My Credit Cards?

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Several years ago, my sister and her husband had to file for bankruptcy. I did not really know what all that meant back then, so I asked my mom. She told me that it was what happened when you can’t pay back the money you owe on credit cards or loans, and that they take away things that you have to pay for them. She also told me that it is very difficult to get a credit card after you file bankruptcy, but was it really true that you could not have any credit cards at all?

Now that I am older, I know a little bit more about the subject. When a person file for bankruptcy with existing credit cards that have an existing balance on them, you have to list it as a debt. After all, that’s what it is, because you owe money to the credit card companies. Because of this you cannot keep your credit cards.

However, if you have a credit card that does not have a current balance, you are allowed to keep it. Because you do not owe that company any money on the credit card, it does not have to be listed as a debt, therefore allowing you to retain your card for further use. But if the credit card company in which you are borrowing this money from find out that you have filed for bankruptcy, they may want to change the terms and conditions that the card comes with, like your credit limit on that card and the interest rate you are paying each month.

Still, the credit card company that gave you that card does have the right to cut off your credit line through that card if they ever find out that you filed for bankruptcy. It all depends on whether or not they are willing to keep you, but most credit card companies still want your business, even afterwards. Some credit card companies, however, will see you as irresponsible and take away the credit line you have through them, despite the fact that you do not have a current balance, just because of bankruptcy.

Getting new credit cards after bankruptcy is not really hard at all. One thing about bankrupt victims of debt is that they continue to get credit card offers, and perhaps even in more quantity than they were given to them before. Of course, the interest rates may very likely be higher than they normally are, and the offered limits might be lower, all because of your high risk of not paying off your debt.

To me, the whole point of getting out of debt by taking the path we call bankruptcy is to learn from our mistakes. We should not file bankruptcy with the goal in mind to just get more credit cards and get deep into debt again. The whole idea of it is to learn from our mistakes and trying not to repeat those mistakes.

How Soon After Chapter 7 Bankruptcy Can You Get a Credit Card?

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Chapter seven bankruptcy is the most common form of bankruptcy that is used in the world today. It is the type of bankruptcy that liquidates your business or assets to allow them to be used to pay the people that you owe money to that you cannot pay back yourself. This liquidation happens all too often in our atmosphere of misused credit today.

There are several small steps you can take to get back on your feet after bankruptcy. However, most of these methods take time, because it is impossible to be instantly qualified for credit and back on track right after you have claimed that you cannot pay off your debt. Having credit card companies, banks, and other lenders trust you with credit again is going to take some time.

Build Your Credit Score

The best thing you can do to qualify yourself for good credit, better interest rates, and descent credit limits again is to build your credit score. Unfortunately, the only way you can really do this is to use some form of credit, like credit cards. So at first it may be difficult to pay those high interest rates and have such low credit limits, but you must face the consequences of filing for chapter seven bankruptcy and pay the price until you are back on your feet. Once you have again established a good credit rating, you will have lower interest rates and higher limits because you have rebuilt your trust and lowered your risk of another bankruptcy.

Manage Your Credit Wisely

The fact that you had to file for chapter seven bankruptcy alone should be a lifelong lesson that will get you to be more careful about your spending habits and your payment abilities. Now that you are trying to move on, you should create a budget for yourself so that you know just how much you can spend on credit, how easily you will be able to make the monthly payments on that amount, and how many things you could go without so that you can gain a better credit score.

Getting Another Credit Card

Getting a credit card after you have filed for bankruptcy will not be difficult. You will still receive offers and qualify for several different kinds of cards. In fact, if it is used more wisely than it was prior to your bankruptcy, a credit card may be the very thing that gets you out of your slump.

Having a credit card and using it sparingly after bankruptcy will help to build your credit score and get you back to where you were. The way in which you could do this is by getting a card, only spending a small amount of money on it, and paying it off each month. Keeping your credit card account open and paying it off frequently will build your credit score more rapidly than it would if you just let your credit card debt stay at a plateau or continually increase.

Can Your Spouse’s Bad Behavior With Credit Cards Affect Your Credit Score?

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Before the Marriage

So you have fallen in love, and you believe that you have finally found the one that you were always meant to be with. The have all the qualities that you could ever possibly want in a spouse, and you can’t believe you have actually found them. But wait… are there certain things about this love of your life that you should know about before taking the plunge?
Probably the last quality you are going to search for in a companion is their money management skills. Perhaps you do not even know how well he or she can manage their credit until after you are married. But getting to know this side of your fiance will be of more benefit than you think.

If the love of your life has a horrible credit score and a bad credit history, you should probably talk it over. Getting into a marriage that will cause you financial heartache will be a burden that may not be necessary to bear. No, you don’t have to cancel the wedding just because your fiance has money management problems.

Having a spouse will not affect your own personal credit score. However, when people get married, usually they eventually get their credit cards, loans, and other forms of credit merged to make it less of a his and her’s sort of thing. It is important to know what your future spouses credit card behavior is like so that you can determine whether or not this type of merger is a good choice.

During the Marriage

If your spouse has a horrible habit of not paying his credit card bills on time, perhaps a combination of your two accounts may not be such a bad idea, for the reason that you could help build his or her credit score. If you take on the entire responsibility of paying the credit card bills and you are the most responsible out of the two, both your credit scores will thrive. However, there are a few risks you take on when you join your credit card accounts into one.

If You Get Divorced

Despite the idea you had of a lifelong love when you first got married, perhaps the relationship did not work. The last thing you need is another burden like being concerned about your credit score. However, the damage that can be done to your credit score because of their credit card spending habits is an uncontrollable factor that will create problems and even more heartache down the road.

All of the things that are done on your joint account show up on each spouse’s credit report. Because of this, after a divorce, one person’s bad habits will be reflected on another’s credit score, even if that person has good habits. You should get all of your joint accounts dissolved by either paying them off and closing them, or taking one person’s name off of the account, leaving the other solely responsible for that account.

Can You Buy a Car With a Credit Card?

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Buying a car is a big step for most people. Whether you have done it once or a dozen times, buying and financing a car is an important issue because it determines where a lot of your money will be going for the next several months. It is kind of like having a credit card. You make monthly payments on something that you have, but that you have not paid for yet. Credit, in that aspect, is quite the same. But the kind of credit that you get is quite different.

So can you kill two birds with one stone and pay for your car with the credit card that you make monthly payments on? Yes. It is possible to buy a car with a credit card. For some people this may be the perfect solution, but it depends on the circumstances.

Buying a car with a credit card requires a much higher credit limit than it would if you were just using the card to make random purchases at a clothing or grocery store, depending on the price of the car. Getting high credit limits can be risky. This is because it could possibly hurt your credit score if creditors believe that you may buy something that expensive on a credit card and not be able to pay it back.

Interest rates

One advantage to financing your car on a credit card is lower interest rates. If you shop around and search for a good deal, you could get a credit card that would allow you to pay less for your car in interest than you would if you took out a loan. This, in the long run, will save you hundreds if not thousands of dollars in interest.

Still, the risk of increased interest rates are greater with credit cards if you make late payments, making it so that you may even spend more on interest. It all depends on the circumstances, and how you will be able to make your payments. It also may depend on the terms of the credit card. Make sure that you know what your introductory interest rates are, if they will change, and what they will change to if they do. Knowing the terms of your contract before you buy a car with that card will make a huge difference in whether or not you save money by taking this route.

Rewards

If you buy your car using a rewards card, you could get benefits that you also would not get by just paying for it by taking out a loan. Rewards cards give you benefits based on how much you spend. Since buying a car is such a huge purchase for a credit card, it would give you many more rewards than it would if you had just used the card to buy groceries. These kind of rewards can be cashed in for things like gasoline, travel, air miles, and cold hard cash. This is another way you can benefit from your purchase.

Maximizing Credit Card Skymiles

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Owning a skymiles credit card can be very rewarding if you know how to properly use it. People often overlook the many benefits that can come from using a rewards card in everyday life.

When making ordinary purchases, people mostly use cash and/or debit cards, which is a safe yet unrewarding way to increase personal benefits. If people would simply switch their usage of cash and debit cards for reward cards, their amount of skymiles and other financial rewards would automatically increase. When buying gas, going grocery shopping, getting new clothes, paying bills, and making other ordinary purchases, remember to use your rewards card.

This simple technique will help you earn skymiles that would otherwise not be gained, obviously, with cash or debit cards. Although credit cards can cause people a lot of pain when used unwisely, they can also be very rewarding when used properly and wisely.

Other ways to maximize the skymiles on your credit cards is to apply all your major purchases to the credit cards. Wisdom must be used when this technique is used, but when used properly, it can harvest huge skymile rewards. Such major investments on credit cards include buying new or used motorized machines such as cars, motorcycles, dirt bikes, boats, etc.

Other major investments that can be applied to credit cards are sporting event season tickets, jewelry, and home improvements. Some people put all of their major purchases on their reward cards and receive major rewards in return. A number of airline companies even give out a free flyer pass, which allows a person to travel anywhere free for a certain period of time, to those customers with extremely high reward card investments.

There are new stories about people who get to fly all over the world simply because of all the skymiles that they have accumulated. This is how smart investors both make and save money in their life. Wise investors not only invest in money, but also in other assets that are extremely valuable but also overlooked.

Since globalization continues to dramatically increase in the world today, more and more people continue to build their desire to travel to different places. Since money isn’t the only valuable asset in the world, people have found other unique methods that allow them to accomplish worldwide travel. One of these unique methods includes the acquisition of skymiles through creative financial spending and investing.

In the end, the wise use of rewards cards can be extremely beneficial and rewarding to loyal customers because of the essential need of credit card companies for people to use their specific cards. That is why in recent years there are so many companies willing to invest in the creation of rewards cards, since it harvests huge profits from the customers. Customers can tap into the secrets of coming off financially successful as well.

Not only will the number of a customer’s skymiles increase, but also the number of other related rewards that each airline company offers.

Top 3 Pitfalls Of Misunderstanding Promotional Interest Rates

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Interest rates are commonly misunderstood. It is difficult sometimes to take in all the detail that comes with them, and the many different kinds of interest rates. Still, understanding how interest rates work is an essential part of having credit cards. The penalties for misunderstanding interest rates, especially introductory or promotional rates, can be a mistake that ends up costing you way more than you thought it would. It is important to know everything about the interest rate on a credit card before you even get it. That way, there are no surprises.

Top 3 Pitfalls of Misunderstanding Promotional Interest Rates

1. Buying on credit cards and paying later… in more ways than one

This seems to happen a lot when you buy things on credit from specific stores. They promise you a tempting 0% interest rate for a certain period of time, during which you do not even have to make any payments if don’t want to. But the thing about interest rates is that whether you are paying interest or not, it still builds up, slowly increasing during that time and adding up to be more than you bargained for. For instance, you could buy a couch from a furniture store because it promised a low interest rate for the first six months, in which you don’t pay a dime, and then find out six months later that the interest rate has been climbing and is suddenly ten times more than you started out paying.

2. Balance transfer offers

Along with low interest offers that you often find in stores, balance-transfer offers present great promotional interest rates. But if you find out more about it, you may come to see that these rates may only be in effect when transferring a balance or when a new purchase is made with your card. Sometimes it only applies to one of those cases, leaving you stranded with a high rate when you use one or the other. For example, if you were to transfer your balance to one credit card that seemed to have a low interest rate, but proved only to apply that low rate to new purchases, you come out paying way more than you thought you would starting out.

3. Having low promotional rates sky rocketed into high regular interest rates

Find out exactly when your seemingly perfect interest rate expires. You could get a great interest rate on a credit card at first, but because you did not read the fine print, you come to find out that great rates only last for so long. Many credit card companies will start out with low interest rates, but can increase them after a certain period of time, making you pay ten times more than you started out paying.

Understanding how interest works and knowing just exactly what you’re getting into when you apply for a credit card that has low rates is very important. Paying on credit cards is much easier when you know how much you will be paying now and what you will pay once the promotional rates expire.

Top 3 Myths About Paying Off Your Credit Cards

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So you have finally paid off all your credit cards. It took you a long time, and for a while it didn’t look like you were going to get it done, but you are finally at the point where you are debt free. It’s a great feeling, isn’t it? So you sit back in your easy chair, patting yourself on the back…but what happens now? Will this add or take away any points from your credit score?

Would it be better to just close your account so that you won’t be tempted to get into debt again? Since you paid off your debt, will your late payments and other negative records be forgotten on your credit report? Maybe you should know a little bit more about what is fact when it comes to paying off your credit cards, and what is fiction.

Myth: Your Credit Score Will Improve by At Least 50 Points Because You’re out of Debt

Fact: Some would like you to believe that just because you paid off your debt, your credit score is going to improve enormously… fifty points is the most popular belief. But because of the complex formula that is used to calculate your credit score, it is difficult to say just how many points exactly will be added to your score. Even if it isn’t fifty points, your credit score will, in actuality, improve.

Myth: Negative Records Will Be Taken from Your Credit Report Once You Pay Them Off

Fact: Whether or not you pay your credit accounts off on time or even early, your late payments and other negative records could stay on your credit report for up to ten years. Paying off your accounts early will improve your credit score, but it will not take away the mistakes you’ve made that hurt it. Eventually those mistakes will be erased from your credit report. It is just better to not make a late payment in the first place, keeping your credit report clean.

Myth: Your Credit Score Will Get Better If You Close Your Old Credit Card Accounts

Fact: The longer you have an account, the better. Having an old account, whether it is active or not, is good for your credit score because it shows that you have a long credit history. This is beneficial especially if you’ve paid all your bills for that account on time. Closing an old account can lower your score because it can make your credit history look shorter. If any accounts should be closed, it is best if you pay off and close the newer accounts rather than the old ones.
Getting out of debt is a big relief, but knowing how to pay off your credit cards can be beneficial when it comes to keeping a high credit score. The key things to remember are that it’s best to pay them off, but keep the old ones open, and pay the requirements on time so you can avoid negative records on your report.

How Many Credit Cards is Too Many?

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Is there such a thing as too many credit cards?

There can be. Honestly, it goes both ways. Most people would agree, though, that they are at a higher risk of getting into debt that they cannot escape if they own way more credit cards than they can control. Having so much credit can be too tempting, and many people have given in to that temptation, spending more than they can pay back and ending up with a bad credit card and debt up to their earlobes.

This is why it is often difficult to keep, or build up to, a good credit score. Creditors look at how many credit cards you have and almost automatically see a potential threat that you will not be able to pay off your debt. This automatically decreases your score, and it also may make it difficult to receive other forms of credit, like a loan, or another credit card.

So how do you escape the automatic assumption that just because you have a lot of credit cards, you cannot pay your debt?

Well, there are some cases in which people do not have a bad credit score, even when they have several credit cards. What did these people have that those with even a few cards did not? A good credit history. That and regular payments helps your credit score either stay in the high numbers, or increase to where you want it to be.

So how do I know how many credit cards I can have?

How many credit cards you can handle is up to you. If you have a large number of credit cards in your wallet and are confused as to why you are having difficulty paying your bills on time, you may want to cut down a bit. Your spending habits and our monthly income are what determine how many credit cards you can have without letting your debt get out of control, and how well you control your debt is what will determine your credit score.

How do I build up a good credit history?

If you are just starting to get familiar with credit, you should probably start out with a low number of credit cards, if not one. Buying too many credit cards at once will make you appear as a potential over-spender, and even worse, someone who will not be able to pay their bills. To start out low and use your credit card wisely, like paying your bills on time and paying your cards off frequently, will eventually prove that you can handle credit cards carefully and result in a very good credit history, allowing for you to build up to an excellent credit score.

How can I show creditors that I’m dependable with my credit cards?

Always pay in full and on time. The thing that will hurt your credit score the most is having frequent occurrences where you make your payments late. Paying your bills on time every time will show that whether you have one or fifty credit cards, you can pay back the money that you borrowed on those cards.

Rewards Credit Cards

We use our credit cards for a lot of things. In fact, we use them for almost everything. Here’s an interesting tidbit: the only thing I’ve found I couldn’t buy with a credit card was a money order. Can you believe that? I want to know what powerful lobbyist in Washington made sure I had to go through the credit card companies’ exorbitant cash advance fees.

Anyway, my point isn’t the slimy lobbyists. My point is that if you’re going to use your credit cards for every purchase under the sun you might as well get paid.

What? Get paid to use your credit cards? In a sense, yes. Rewards credit cards are making it possible for credit card holders to get a little something back. Call it a thank you from the banks – a thank you for those billions of dollars in credit card interest we all pay every year.

Let’s make one thing clear – the credit card companies make a lot of money whether you ever carry a balance on your card. I’m fine with it. Companies need to make a profit to survive. Every time you swipe that card the merchant pays visa a fee. Multiply a few cents times millions of transactions per day and you’ve got large stacks of cash. I’m only telling you this so you understand the credit card companies aren’t going out of business even if you pay your balance every month. So do it.

In fact, the key to making rewards credit cards a good deal for you is to never carry a balance. Think about the different rewards you can get – cash back, points toward purchases, airline miles, etc. In every case, one point or one mile has a dollar value you never think about. For example: if a $50 laptop back costs 1,000 points to purchase, then each point is worth 5 cents. So you get 5 cents for every point, and you usually get 1 point for every dollar you spend.

That’s all great right? But wait, what if you spend $500 per month on your card, and you carry the balance from month to month. It’s not going to take very long before the finance charges will far outweigh the rewards points. I doubt they want you thinking about that. They want you thinking about the ‘free’ stuff you can get.

Listen, I want you to take advantage of rewards credit cards. I love mine. I take at least one trip each year courtesy of American Express or Capital One thanks to their airline miles programs. All I’m saying is you have to make sure those ‘free’ miles don’t cost you hundreds of dollars.

Student Credit Cards. Your Millions Start Here.

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As members of the under 30 crowd one of the biggest topics we talk about is credit and debt. Our parents are, for the most part, baby boomers. Unfortunately that mean they are, for the most part, broke and up to their eyeballs in debt. That’s not a true statement in every case, but it’s the reality for a scary percentage of the over-50 set. A couple of years ago I read that only 1 out of 50 baby boomers are financially ready for a comfortable retirement. Yikes. I guess we better start making some serious money or our parents are going to be in a world of hurt.

Lots of people want to point the finger of blame at the credit card industry as America’s financial downfall. I agree they’re giving us the gun, but we’re the ones pointing it at our own foot and pulling the trigger not once, but several times (For insight into that analogy, google ‘bankruptcy statistics’. You’ll see what I mean.).

Young people should be establishing credit for themselves. Credit is a tool, nothing more. If we’re dumb we’ll use it poorly; if we’re smart we’ll use it to get rich. It’s that simple. If our club-wielding ancestors had given up on fire after they burned themselves the first time, where would we be?

I’ve heard a rumor that Bill Gates started Microsoft with his credit cards. True? I have no idea, but it makes for a good story. I do have a friend whose website made $100,000 in one month thanks to the advertising he was able to do with his credit cards. Without them he would only have been able to accomplish a tiny fraction of that success.

What does this mean for the rest of us? It means we have a few choices: 1) we can buy into the advertising and use our credit cards to buy lots of thing we can’t afford and don’t need, putting ourselves into a hole from which we may never emerge, 2) we can hide our heads in the sand with statements like “I don’t believe in credit cards.” or 3) we can educate ourselves, develop self-restraint, and use credit as a vehicle to help us get to our financial goals a lot more quickly.

Door #1 leads to great friendships with bankruptcy lawyers. Door #2 leads to, well, it leads to being very bored, but probably sleeping well at night. Door #3 probably leads to a few mistakes, but eventually it leads to financial independence.

Here’s how to avoid Door #1 while you’re in college. Open a couple of student credit cards, but keep the limits low. If you’re going to screw up and spend all the way to your limit a couple times, better to do it with a $500 limit and not a $5000 limit right?

Also, get in the habit of paying the balance every single month. If your credit card offers a program where they’ll pay your bill out of your checking account, use it! Anytime human beings can automate good habits into our lives we definitely should. If they don’t offer that program, your bank probably offers something similar through your online bill payer. Use it!

If you’ll get in the habit of paying your bill monthly you set yourself up to use your credit cards intelligently for the rest of your life. I love credit cards. I believe that, used with care, they are the best financial tool in the world today.

Credit Unions That Offer Visa Credit Cards to Students

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First of all you should probably understand what a credit union is. Credit unions are what is known as a ‘co-op’ or cooperative. What does that mean? A cooperative is a business or organization owned by its members, as opposed to being owned by an individual or corporation. The single biggest difference between credit unions and banks is that banks are run for profit.

Other than being a non-profit entity, credit unions run pretty much the same way as banks. They offer checking and savings accounts, investments, mortgages and other types of debt tools -including credit cards.

Lots of people seem to prefer dealing with credit unions as opposed to banks, and a lot of students are looking to get credit cards from credit unions. The question is whether they can find any. The answer is, of course, yes.

Before I get into what credit cards a student could get through a credit union, let me explain a little about why people would rather belong to a credit union than a bank.

Credit Unions are dedicated to a philosophy of service to the members. Over 60 years ago the philosophy was outlined in the ‘Seven Cooperative Principles of Credit Unions’. Here they are:

1. Voluntary Membership. Any person willing to accept the responsibilities of membership can become a member.
2. Democratic Member Control. One member, one vote. Credit unions are owned and controlled by the membership.
3. Members’ Economic Participation. Members make the decisions about the financial choices of the institution.
4. Autonomy and Independence. Membership makes decisions about decisions that affect the co-op as a whole.
5. Education Training and Information. Credit Unions want their membership to be well informed about what it means to be a member.
6. Cooperation Among Cooperatives. Credit Unions seek to work in unison with other cooperatives, especially other credit unions.
7. Concern for Community. Credit Unions were formed for the benefit and strengthening of communities in their financial lives.

Basically, credit unions are by the people and for the people. Seeing these seven governing principles you realize why credit unions are able to charge lower fees and interest rates on all their financial tools – they’re established and maintained by the people paying those fees and interest rates.

Here are a few examples of Credit Unions Offering Student Credit Cards:

• The Student Credit Union Alternatives Visa Credit Card.
• Fort Belvoir Federal Credit Union Student Visa Credit Card.
• University of Wisconsin Student Visa Credit Card.
• State Employees Credit Union (Maryland) Student Visa Credit Card.
• Missouri Student Federal Credit Union Student Visa Credit Card.

There are a lot of government organizations and most universities will have a credit union. Any one of them should be able to help you get the student credit card that will get you on track to building credit history and raising your credit score.

International Student Credit Cards

For a lot of foreigners, the Amercian Dream begins with college. More and more universities are accepting foreign applicants to improve the diversity of their campuses, and like it said in Field of Dreams, “If you accept foreign students, they will come in droves.” I think that’s what it said anyway, or something very similar.

So what is life like for a college student freshly arrived from Canada, China, India, or Europe? They have to get used to a new culture, a new currency, a different language (although most of them probably come to this country with a working knowledge of English), and they have to get accustomed to the business and financial practices of the United States. Depending on their country of origin, the way our financial systems work may be completely different.

And what is it that makes our financial world go around? Two things: savings tools and financing tools. This blog doesn’t deal much with the investing side of money, so let’s talk about how a foreign student can break into the world of American debt. The way for them to get started is with international student credit cards.

It’s not going to be easy for most international students to get credit cards. First of all, they will come to the country with no credit history or credit score in the eyes of the American credit bureaus. That makes them a big risk in the eyes of any credit card provider.

Since most foreign students will be viewed as a risky client for the credit card companies, the best way to go may be with either a prepaid or a secured credit card.

My preference would be for the student to get a secured credit card, because the provider of that card is more likely to report consistent use and payments of the credit card to the credit bureaus. After several months or a year of positive reports the foreign student will start to establish the credit score and history they need to get better credit cards (as in higher limit and lower interest rate).

Here are a couple credit cards I found that are available to international students:

American Express Blue Credit Card for Students – many international students have been able to establish their first unsecured credit card with American Express. It offers some great benefits as well, with discounts on airfare, no annual fee, and a couple of hours of free long distance phone calls. And don’t forget the snob factor of owning an Amex.

Chase Platinum Credit Card for Students – Chase seems to approve a relatively high percentage of first time foreign applicants. Also, Chase won’t charge you an annual fee if you get this card and they’ll provide fraud protection on the card as well.  You even get to choose from four designs.

Secured Student Credit Cards

One of the best things that any college student can do is get a credit card. There are a lot of options out there where you can go get credit cards. Some of you might have some difficult history in your past when it comes to credit. That is fine because there are still avenues for you to take a look at. One of the best ways to improve your current credit is to go get a secured student credit card.

Next you want to see what type of interest rates you can get. Usually if you have had a bad past with credit, your interest rate is going to be anywhere from 15% and up to 25%. There could be an initial lower interest rate, but make sure you read all of the terms and conditions of the contract. Be aware that there can be changes very quickly in your contract with the interest rate. It can take them only a 15 day notice before they make a change in the APR and bump it up.

Prepaid Student Credit Cards

When you get a secured credit card, you need to decide what type of credit limit you are looking to get. It usually isn’t more than a couple thousand dollars as a possibility, but more than likely a few hundred dollars. Usually the deposit will be about the same as the credit limit, but it could be less or more depending on the credit card company. It might be 50% of the credit limit or it could be up to 150%. You should search around to find a secured credit card that will allow for a smaller deposit.

With these cards, you can build a lot of credit during your younger years. You need to make some improvements to your credit and getting a secured credit card can be a great way to get you back into good graces with credit bureaus. Also with the deposit you might find yourself taking more notice and responsibility for your credit then what maybe you have done before in the past. This could also be a good option if you simply have no credit history at all. Find a lot of options before you make a decision so that you are not caught with a lot of fees and high interest rates.

Another choice you can look at is getting a family member to cosign on a line of credit to get your foot in the door, if a prepaid student credit card appears to much for you to handle. If that doesn’t work out then look to work through a debit card with a checking account and start building a good recognizable history that way.

Free Student Credit Cards

What’s the first word that comes to mind when you think about being in college? Broke. That was me. I was broke from the minute I walked into my first college class until about six months after I finished my last one. Then I finally had job and a little money, and I was able to move past the beater apartments and ramen noodles.

But while you’re in school you have to spend most of your time pinching pennies. That’s why when you’re looking for credit cards you can’t deal with bunch of fees. I mean, they’re already going to charge you high interest rates, given your lack of credit history and a fairly low credit score.

It is a good idea to get a credit card or two while you’re in college. When you get out of school and get that first job, you’re going to want to buy a car to replace your Geo Prizm and maybe even buy a condo or a townhouse. If a bank is going to even consider giving you the loan for your toys and your new pad they will need to see that you know how to use credit. In other words, they need to know you’re probably going to pay them back.

Check out this list of student credit cards that can help you get the right start in the world of debt and credit. Use them wisely.

• Bank of America Student Visa Platinum Plus Credit Card- no annual fee.
• Capital One Platinum Student Credit Card – no annual fee and no balance transfer fees. Retail savings program with yahoo!
• Discover Student Clear Card – no annual fee and 0% APR for six months.
• Discover Student Monogram Card – 0% APR for six months and choose your own design.
• Discover Student Tropical Beach Card – 0% APR for six months and no annual fee.
• Discover Student Card – 0% APR for six months and no annual fee.
• Citi Bronze/AAdvantage Card for College Students – no annual fee and free membership into American Airlines rewards program.
• Citi Platinum Select Card for College Students – 0% APR and no annual fee.
• Discover Open Road Card for Students – 0% APR and no annual fee.

Most of these cards also offer online account management. And one more thing – they’re going to give you a small enough credit line to keep you from getting yourself into trouble while you’re in school.

United Airlines College Student Credit Cards

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One of the best decisions you can make if you are a constant flier of the friendly skies is to get a credit card with an airline company. Many students face the issue of having to travel states away to go to college and back home. You want to make sure that you can travel safely home for holidays and special events. To be honest you probably don’t have the money to spend on flights. If you do then you are going to try to save as much as possible instead of spending hundreds or thousands of dollars to make it home and back.

It is smart to get a credit card from a company that you fly with often because this will help you to put your money to use. You have probably heard of frequent flier miles. Many airlines and companies in general do this to help alleviate the pain of spending. It is amazing how much easier it is for you to go for the more expensive purchase because of these types of offers. Now you might find yourself spending more just because you have a credit card to “save money for more miles” but be careful that you aren’t spending recklessly. This might help toward free miles, but in turn you end up going broke…not good. Just make it your primary credit card and use it when you have to. It will make the swipe less painful.

United Airlines will usually offer you a free mile in the air for every dollar that you spend. Depending on what type of card you get, you could potentially have a limit on the amount of miles you can get unless you get the Platinum card for their “preferred customers”. This is a higher annual fee, which all of their cards have, but this will allow for more ways to build up miles. For some of your spending, including for any United related items or housing related, you will actually get 2 miles for every dollar spent.

In the end it really comes down to how often you plan on spending on these cards. If you are only looking for a trip or two a year then maybe you should go with a more conservative card, but if you plan on spending a lot on credit cards for schooling, dates, or whatever floats your boat, then you will probably want to go with the platinum card. This all won’t matter if your credit is bad or you don’t have any credit history, so you might see if your parents can get one to help you come home.

Student Major Credit Cards

The major credit cards for students can be some of the best choices and honestly will probably be the most comfortable for you. For many of you, you are just like me…sheepish. I like to go with a well known brand name because I have heard of them. I know they exist and that many people use them, so the chances of them scamming me tend to be less even though they have more customers. We all figure that they have gotten these customers because they have built a reputation with giving out good credit card offers and they don’t intend to bomb you with high interest rates, an enormous amount of fees, and all of these hidden and misleading charges in the Terms and Conditions…all things you’re not really thinking about when you start to apply for student credit cards.

The American consumer society has become used to not trusting businesses and having to do a lot of research because of the tactics of careless companies. This is warranted because they want to make sure that you truly can provide them with solid value and at the same time it goes too far. That is why it is so important for companies to brand themselves excessively to drill themselves into your mind.

How many Capital One commercials have you seen with their funny skits ending with a simple question, “What is in your wallet?” How many priceless MasterCard commercials have you seen that have made you all warm and fuzzy inside when you realize it is all about making people happy, no matter what goes on the card. This is the beauty of credit cards. They are trying so badly to warm up with you to get your business, but everyone does this.

Obviously for them to spend millions on ads, they have gotten somewhere to do so. It just didn’t happen and surely not by destroying trust with millions of customers. If they did then the government would shut them down. Instead, they have solid systems in place. They take good care of their customers and are willing to resolve issues with you to keep your business. You have to build their trust too in this relationship because it is their money that you are using, no matter what you want to think. So if you build that trust then it should not matter.

So for a college student it doesn’t matter if it is Capital One, Visa, MasterCard, Discover, or whomever. They are all good. You just need to be fair to yourself and see what they all have to offer. Don’t go and apply for a boat load of cards or pick your favorite card based on your favorite commercial. Do your research first before your apply. Start with one card and build a good credit history and then you can move on to other lines of credit as you build a stronger income in your life and establish a household.

0% APR Student Credit Cards

This can be a complete success or a complete disaster. A lot of this will have to do with how frugal you are with your credit cards and how aware you are of your credit situation. Many students can go through a great deal of trouble because they don’t realize that this amazing interest rate can vanish instantly.

A credit company only has to give you a 15 day notice before they drop the hammer and the interest rate goes from 0% to anywhere between 15% and 30%. You could see a higher interest rate because they considered the grace period a big favor for you, but in reality it is just a pain in the butt because you might have piled up debt that you can only make minimum payments on and then you have no way to pay it off after they bump up the interest rate.

That is why it is important you go over the Terms and Conditions and find out if there are any changes that could happen during the next year or as long as you have the card. Sometimes you can find cards with 6 months or a year of guaranteed no interest. This can be a huge opportunity for you to leverage someone else’s money if you have some good strategies in place.

I personally got into a lot of debt after a failed business experience. It was a lot for a college student anyways. I felt as though I had no way out. I was at square one and I had to find a job and just try to get out of debt. Well I had gotten a cash advance of $10,000 for that year and I had to make some changes. I didn’t realize this until about August when I was down to about nothing and I had until the end of the year to pay off the line of credit. So I started improving my spending and found a good job. My situation improved, but I realized that it wasn’t going to happen by December of that year. So I found another company that gave the exact same opportunity for 12 months with a 0% APR. I took advantage of it and used the cash advance of this company to pay off this other card and it bought me another 12 months. Within the first couple months I was out of the hole and I was able to pay off the second card.

So you see that this can be a great opportunity to buy you some time to find out your financial life as long as you realize the terms of the card. Next you have to make sure you spend wisely and live a well budgeted lifestyle for your income. If you can do this then you will find 0% APR credit cards a blessing and not a curse.

Are College Students Misusing Credit Cards?

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In the last several years credit card companies have pursued college students a lot more aggressively. I hate to say it, but the marketing strategy of the big tobacco companies comes to mind – Hook ‘em while they’re young. I’m not saying big credit providers are as predatory (and at least using their product won’t kill you – physically anyway) as the tobacco companies. I’m saying they recognize that if they can snag college kids while their young they’re more likely to retain that customer for a long time – maybe life.

What’s the affect on the financial situation of our young men and women on the nations college campuses? It doesn’t look great.

Here are four statistics I can point out:

• In 2004, 83% of students with at least one credit card in their name had a credit card with a balance in excess of $2300.
• 32% of students had four or more credit cards in 2004.
• As of 2004, the average graduate student had six credit cards and one in seven owes more than $15,000.
• In 2005, 65% of teens failed a financial literacy test according to the Jump$tart Coalition.

Consider them individually, then consider them as a whole. What you see is a lot of debt carried by the majority of students in a country where most kids don’t really understand how to manage their finances. Scary? A little. College students do appear to be misusing credit cards.

Credit cards may not cause lung cancer, but it wouldn’t be too much of a stretch to call them a financial cancer – if they’re used unwisely and mismanaged. As I’ve said before, I love credit cards. I use them to my financial advantage every day. Our students need to be equipped with the knowledge so they don’t misuse their credit cards.

Here are the three most important methods for avoiding exorbitant credit card debt as a student:

1. Keep your limits low – for now. When I got my first credit card it had a limit of $1500 and I promptly maxed it out. Stupid right? Yeah, it was. I wish I’d had a limit of $500 so when I made the mistake it wouldn’t have taken me as long to pay for it. Once you’ve learned discipline with your cards, get higher limits. I have several large limit cards now and they’ve served me well. Just make sure you know how to handle them.
2. Make it a habit to pay the balance every month. You hear this one a lot, but you never hear that the biggest reason to do it is it becomes a habit. Once you’ve done this for a couple years it will come naturally to you to pay the card every month, avoiding late fees and high interest charges.
3. Don’t carry more than 2 cards. The more you get, the harder it is to keep track of them. I really wouldn’t recommend opening department store credit cards. They have ridiculous interest rates and they don’t help build your credit much. Use a couple of cards a lot and pay them off, and you’ll get the credit building benefits you’re looking for.