Before you apply for a credit card, there are a few things that should always be considered:
What will you use the credit card for? Make sure you know how you will use your credit card and what you will purchase with it before you apply. Keep in mind that every time you use the card, you incur debt that you will have to repay, with interest. You need to shop around. Before you apply for a card, ask what interest rates and credit limit you qualify for and shop around for the best possible deal. You want to look for the best option before committing yourself to any certain card.
Make sure you understand the terms. Before applying for and accepting a card, make sure you understand the terms and conditions of the plan. Read the fine print. Ask yourself whether you are able to afford the card. What are the rules for the card and are there frees for breaking these rules. Pre-approved credit cards can be tricky. Pre-approved offers tell you that the credit card company has looked at your credit report and determined that you might qualify for the interest rates and credit limit being offered. However, whether you will really get the best rates depends on your income, employment, and credit history. It is therefore important that you read the credit agreement carefully before you sign on the dotted line - there may be limitations or conditions that are not obvious in the advertisement.
Start with your credit score. Lenders make their judgment about your credit worthiness based on your credit score. A FICO score of 700 or more is considered very good; over 760 will usually qualify you for the best rates (which is up from 720 several years ago). If your credit score is less than 640, you'll probably land a high interest rate and limited credit options. Your credit score will also be used to determine the features of your card, such as the credit limit and balance transfer terms. If you're surprised by your credit score, check it for errors. Correcting mistakes is the fastest way to raise a credit score.
Before you get a credit card, be sure you know how you'll pay off the credit card. You need to take a hard look at your financial habits to determine what kind of credit card customer you are. Will you pay off the entire balance each month on time, or will you carry a balance? Knowing the answer will help you determine the type of card you need. If you plan to pay off your balance each month, then pay close attention to the rewards offered. The best type of rewards cards out there are those with no annual fee and cash back rewards. Rewards are skimpier than in previous years, so expect a 1% cash back reward rather than 2% or higher. You may also find there are reward tiers based on your spending level. If you carry a balance most months, than apply for a card with the lowest possible rate. The less you pay for interest, the more you can pay toward your balance and the faster you can pay off that card. Whatever you do, do not pay a higher rate just to get rewards.
Pick one card and apply for it. Compare three or four cards by studying the terms and conditions of these cards. Then select the best one and submit an application. Limit the number of applications you submit because each application is recorded as a credit inquiry on your credit report. Multiple applications are a red flag that can lower your credit score because people actively seeking credit are typically a higher risk to lenders than people who are not seeking credit.
Avoid store cards. Don't apply for a store card just because the store gives you an immediate discount on your purchase. The rates are usually much higher than an average card, and if you don't pay off the balance in full the first month, you could pay much more in interest than the money you saved.
Pay attention to your rate. Most rates are now variable, and they'll increase in the future as the Federal Reserve raises the prime rate.
Monday, February 28, 2011
Friday, February 25, 2011
Budget-friendly recipes
Just like many college students, I enjoy finding budget-friendly recipes and saving money in anyway that I can!
Listed below is the link to a site that I find very helpful for great recipes that are low-cost to make!
Enjoy! :)
http://simplyrecipes.com/recipes/baked_ziti/
Listed below is the link to a site that I find very helpful for great recipes that are low-cost to make!
Enjoy! :)
http://simplyrecipes.com/recipes/baked_ziti/
Thursday, February 24, 2011
Know your score when considering credit
By Sam McIntosh
A lot of little things add up to big things. And when it comes to financial education, one must take care of little things. Otherwise, what consumers face will be out-of-control spending and growing personal debt.
Dr. Kimberlee Davis, an assistant professor in the Family and Consumer Sciences Department at Texas State University, talked to San Marcos business leaders and students Tuesday about credit, budgeting and mental accounting.
She primarily focused her presentation on the function of credit scores and credit reports. She also discussed credit cards versus debit cards, identity theft and other issues that are musts in boosting financial literacy. A credit score is one of those little statistics that must be monitored over the long-term. Even the slightest event can affect one’s credit.
“It’s the little things that prevent us from making progress,” Dr. Davis said during a two-hour workshop organized by the San Marcos Chamber of Commerce. Keeping one’s credit in mind can be vital when planning to make large purchases or borrowing money. Mistakes can be made and neglecting to monitor your credit will result in disappointing losses.
“If there is a mistake with poor credit scores, it will be addressed in ‘x’ number of hours and dealt with within 60 days,” Davis said. “If you found your dream house and there was a mistake with your credit, by the time it was dealt with, you just lost your dream house.”
Personal finance can be like walking through a minefield. Financial responsibility is a habit that must be practiced over a lifetime. Having a positive record of paying bills is one small way to establish the reputation for earning credit. Dr. Davis said the psychology of spending is a big part of being a disciplined consumer. The public must guard against spending money that they just don’t have, she said. Responsible money management will lead to a positive credit score.
The leading credit score in the industry is FICO and figures a score ranging from 300 to 850. Credit scores also have an effect on the amount of insurance premiums for a car or a home. A higher credit score, something approaching 700, may mean receiving a lower mortgage rate, which will mean a savings of tens- or hundreds of thousands of dollars over the life of a loan.
Credit reports, which detail your financial history, lead to credit scores. The credit reports can have a cost, even though they don’t have to. Consumers are entitled to one free credit report per year, Dr. Davis said, but not all free services are actually free. “Freecreditreport.com isn’t really free,” Dr. Davis said. “After your free trial expires, they start charging $14.95 a month. You get one free credit report a year from Equifax, Experian and TransUnion LLC.”
Dr. Davis emphasized the idea of understanding and monitoring ones credit. She was specific in saying that even the slightest thing can affect credit scores.
“It’s the little things that prevent us from making progress,” Davis said. “I didn’t realize how important this was until I became a financial planner.”
If you find yourself in the hole with credit, it is often necessary to seek professional help. If it is a persistent and serious issue, it could cause further harm if dealt with improperly.
“Don’t do it yourself,” Davis said. “You wouldn’t give your dog surgery, you would take it to the vet; the same applies here.”
Although there are plenty of tips and facts associated with financial literacy, Dr. Davis acknowledged there decisions about personal finance follow one throughout life. The road, like life itself, is complicated. Our spending habits are a science, she said.
“Remember, credit is a tool” for financial success, she said
A lot of little things add up to big things. And when it comes to financial education, one must take care of little things. Otherwise, what consumers face will be out-of-control spending and growing personal debt.
Dr. Kimberlee Davis, an assistant professor in the Family and Consumer Sciences Department at Texas State University, talked to San Marcos business leaders and students Tuesday about credit, budgeting and mental accounting.
She primarily focused her presentation on the function of credit scores and credit reports. She also discussed credit cards versus debit cards, identity theft and other issues that are musts in boosting financial literacy. A credit score is one of those little statistics that must be monitored over the long-term. Even the slightest event can affect one’s credit.
“It’s the little things that prevent us from making progress,” Dr. Davis said during a two-hour workshop organized by the San Marcos Chamber of Commerce. Keeping one’s credit in mind can be vital when planning to make large purchases or borrowing money. Mistakes can be made and neglecting to monitor your credit will result in disappointing losses.
“If there is a mistake with poor credit scores, it will be addressed in ‘x’ number of hours and dealt with within 60 days,” Davis said. “If you found your dream house and there was a mistake with your credit, by the time it was dealt with, you just lost your dream house.”
Personal finance can be like walking through a minefield. Financial responsibility is a habit that must be practiced over a lifetime. Having a positive record of paying bills is one small way to establish the reputation for earning credit. Dr. Davis said the psychology of spending is a big part of being a disciplined consumer. The public must guard against spending money that they just don’t have, she said. Responsible money management will lead to a positive credit score.
The leading credit score in the industry is FICO and figures a score ranging from 300 to 850. Credit scores also have an effect on the amount of insurance premiums for a car or a home. A higher credit score, something approaching 700, may mean receiving a lower mortgage rate, which will mean a savings of tens- or hundreds of thousands of dollars over the life of a loan.
Credit reports, which detail your financial history, lead to credit scores. The credit reports can have a cost, even though they don’t have to. Consumers are entitled to one free credit report per year, Dr. Davis said, but not all free services are actually free. “Freecreditreport.com isn’t really free,” Dr. Davis said. “After your free trial expires, they start charging $14.95 a month. You get one free credit report a year from Equifax, Experian and TransUnion LLC.”
Dr. Davis emphasized the idea of understanding and monitoring ones credit. She was specific in saying that even the slightest thing can affect credit scores.
“It’s the little things that prevent us from making progress,” Davis said. “I didn’t realize how important this was until I became a financial planner.”
If you find yourself in the hole with credit, it is often necessary to seek professional help. If it is a persistent and serious issue, it could cause further harm if dealt with improperly.
“Don’t do it yourself,” Davis said. “You wouldn’t give your dog surgery, you would take it to the vet; the same applies here.”
Although there are plenty of tips and facts associated with financial literacy, Dr. Davis acknowledged there decisions about personal finance follow one throughout life. The road, like life itself, is complicated. Our spending habits are a science, she said.
“Remember, credit is a tool” for financial success, she said
Wednesday, February 23, 2011
Audrey Allure: Lulu's Gift Card Giveaway!
Audrey Allure: Lulu's Gift Card Giveaway!: "I am partnering with Runway Rundown for a giveaway! Here is your chance to win a $100 gift card to Lulu's! I am so jealous of the lucky win..."
ENTER TO WIN :)
ENTER TO WIN :)
What's in a credit score?
You're first question might be...what is a credit score?
A credit score is a number based on a statistical analysis of a person's credit files. Your credit score represents your "creditworthiness" or your likelihood of paying your bills on time. Your score is based on what banks, stores, utility companies and other creditors tell the three major credit bureaus about how much you owe and how often you pay your bills on time.
Where does your credit score come from you might ask?
If you have every had a credit card, auto loan, mortgage or even electric bill in your name, you have a credit history and a credit score attached to your name. Your credit score is based on credit report information from one of three major credit bureaus: Experian, TransUnion and Equifax.
What do you need a credit score for?
Credit scores are used by lenders such as banks and credit card companies, to determine who is eligible to receive loans at what interest rate and credit limit.
Your credit score can range from 300 to 850 with a credit score around 720 being considered "good enough" to qualify for the best rates on just about any loan. The higher your score, the better your credit and the more likely you are to get approved for a loan and a receive lower interest rate.
What are some important factors of your credit score?
- Payment history accounts for 35 percent. You want a long record of paying your bills on time with no missed payments.
- How much of your available credit you've used accounts for 30 percent. Having accounts open for a long time increases your credit score, although inactive accounts don't help as much as active ones.
- New credit accounts for 10 percent. Opening a bunch of new accounts in a short period of time decreases your credit score and makes lenders nervous.
- Types of credits used accounts for the last 10 percent. Your score will be a little higher if you have a record of repaying a range of debts such as credit cards, auto loans and mortgages.
How often can you check your credit report?
You are entitled to one FREE credit report within a 12-month period from EACH of the three credit bureaus: Experian, TransUnion and Equifax. That means you can technically check your credit report, for free, three times in one year. However, you are not entitled to receive a free credit score from the report. You will need to pay extra to receive your credit score.
To check your credit report for free go to:
annualcreditreport.com
A credit score is a number based on a statistical analysis of a person's credit files. Your credit score represents your "creditworthiness" or your likelihood of paying your bills on time. Your score is based on what banks, stores, utility companies and other creditors tell the three major credit bureaus about how much you owe and how often you pay your bills on time.
Where does your credit score come from you might ask?
If you have every had a credit card, auto loan, mortgage or even electric bill in your name, you have a credit history and a credit score attached to your name. Your credit score is based on credit report information from one of three major credit bureaus: Experian, TransUnion and Equifax.
What do you need a credit score for?
Credit scores are used by lenders such as banks and credit card companies, to determine who is eligible to receive loans at what interest rate and credit limit.
Your credit score can range from 300 to 850 with a credit score around 720 being considered "good enough" to qualify for the best rates on just about any loan. The higher your score, the better your credit and the more likely you are to get approved for a loan and a receive lower interest rate.
What are some important factors of your credit score?
- Payment history accounts for 35 percent. You want a long record of paying your bills on time with no missed payments.
- How much of your available credit you've used accounts for 30 percent. Having accounts open for a long time increases your credit score, although inactive accounts don't help as much as active ones.
- New credit accounts for 10 percent. Opening a bunch of new accounts in a short period of time decreases your credit score and makes lenders nervous.
- Types of credits used accounts for the last 10 percent. Your score will be a little higher if you have a record of repaying a range of debts such as credit cards, auto loans and mortgages.
How often can you check your credit report?
You are entitled to one FREE credit report within a 12-month period from EACH of the three credit bureaus: Experian, TransUnion and Equifax. That means you can technically check your credit report, for free, three times in one year. However, you are not entitled to receive a free credit score from the report. You will need to pay extra to receive your credit score.
To check your credit report for free go to:
annualcreditreport.com
Tuesday, February 22, 2011
Unconventional Ways To Save Money
Two weeks ago I entered into a contest to win a trip to New Zealand. The contest was simple. The company would tweet a question daily and choose a winner based on the best answer. The question I answered was "You're a chef preparing a dinner for Valentine's Day. What are you preparing?" I tweeted back with my answer thinking I would never win.
A few days later while grocery shopping I got the word that my answer was the winning tweet. Now, I originally wasn't planning on going to New Zealand so in theory I won't really be saving any money. However, there are sweepstakes that offer cold-hard cash as the prize. I encourage you to pursue this option when trying to live large on a small budget.
A few options for finding these great sweepstakes:
If you do win but you don't particular like your prize or have no use for it, sell it for some extra cash. Online markets, like Ebay or Amazon, make it easy to unload your prizes.
Unfortunately, not every contest is honest and there are scams out there so always read the fine print. This article offers tips from sweepstakes veterans and ways to avoid scams.
Have fun and good luck!!
A few days later while grocery shopping I got the word that my answer was the winning tweet. Now, I originally wasn't planning on going to New Zealand so in theory I won't really be saving any money. However, there are sweepstakes that offer cold-hard cash as the prize. I encourage you to pursue this option when trying to live large on a small budget.
A few options for finding these great sweepstakes:
- Twitter is a great way to find easy contest. Search #win or #giveaway
- This blog (best for women) details daily giveaways
- Sweeps Advantage has a variety of sweepstakes separated by category
- Search Google for even more sweepstakes and sweepstakes websites
If you do win but you don't particular like your prize or have no use for it, sell it for some extra cash. Online markets, like Ebay or Amazon, make it easy to unload your prizes.
Unfortunately, not every contest is honest and there are scams out there so always read the fine print. This article offers tips from sweepstakes veterans and ways to avoid scams.
Have fun and good luck!!
Sunday, February 20, 2011
Deals & Steals
As a college student I have developed many habits. Some haven't been great (i.e. going out for margaritas instead of studying) but others have helped me out along the way.
I have gotten into the habit of using coupons--no clipping required--to live large on a college-student budget. Here are a few of my favorite money-saving sites.
For more money-saving tips check out Bobcat Net Worth Network on twitter -- @bobcatnetworth
I have gotten into the habit of using coupons--no clipping required--to live large on a college-student budget. Here are a few of my favorite money-saving sites.
- Listen to any song for FREE as many times as you want at GrooveShark
- Sign up for with an .edu address here to get an Amazon Prime account for one year.
- This includes free two day shipping, $3.99 one day shipping for each item (think textbooks!)
- Find a coupon for almost any online retailer at Retail Me Not
- Pizza lovers: Domino's offers coupons (and sometimes free cinnastix!)
- Nu Coupons was created in San Marcos, for San Marcos.
- This iPhone app has coupons for restaurants, retailers and other goods in the area
- Check out the discount page before you go to the outlets: Tanger and Prime
- The Texas State Student Discount Handbook also offers a variety of local coupons
For more money-saving tips check out Bobcat Net Worth Network on twitter -- @bobcatnetworth
Friday, February 18, 2011
Plan and Save
One of the key factors to saving money is planning. One must plan for retirement, plan a budget, plan for the future and so on. This idea of planning doesn't have to be long-term, as very simple organization can prove dividends on financial well-being. Try to organize your funds in order to, not only keep track, but be more productive with money and avoid unnecessary waste.
Grocery shopping can be an easy way to save and waste money. You save money by avoiding high-price meals at restaurants but waste money buying too much of the wrong things or just the wrong thing all together. Instead of going to the grocery store with a completely open mind, walking aisle to aisle scanning, try to plan your meals for that week. For instance, you could plan for pasta on Monday and burgers on Tuesday. That way, you know exactly what you need to prepare those two meals. Buying a bunch of random groceries will lead to wasting as you throw away unused produce, dairy and meat.
Here is an example of a weekly meal plan:
Monday - Pasta w/ tomato sauce: pasta, sauce, salad ingredients, bread
Tuesday - Burgers: patties, cheese, lettuce, tomato, etc. and a side (fries, baked potato, etc.)
Wednesday - Tacos: taco meat, taco shells/tortillas, cheese, lettuce, pico, guac, etc.
You get the point. Buying items specifically for meals will result in less waste, more conservative spending and, frankly, better meals. College students are known for creating makeshift meals out of unsavory ingredients.
Plan before shopping and you may discover you are finally stimulating that palate. Oh, and of course, keeping your bank account in check!
Below is an example of a very organized shopping list.
http://www.relishrelish.com/default.aspx?p=sample-list
Grocery shopping can be an easy way to save and waste money. You save money by avoiding high-price meals at restaurants but waste money buying too much of the wrong things or just the wrong thing all together. Instead of going to the grocery store with a completely open mind, walking aisle to aisle scanning, try to plan your meals for that week. For instance, you could plan for pasta on Monday and burgers on Tuesday. That way, you know exactly what you need to prepare those two meals. Buying a bunch of random groceries will lead to wasting as you throw away unused produce, dairy and meat.
Here is an example of a weekly meal plan:
Monday - Pasta w/ tomato sauce: pasta, sauce, salad ingredients, bread
Tuesday - Burgers: patties, cheese, lettuce, tomato, etc. and a side (fries, baked potato, etc.)
Wednesday - Tacos: taco meat, taco shells/tortillas, cheese, lettuce, pico, guac, etc.
You get the point. Buying items specifically for meals will result in less waste, more conservative spending and, frankly, better meals. College students are known for creating makeshift meals out of unsavory ingredients.
Plan before shopping and you may discover you are finally stimulating that palate. Oh, and of course, keeping your bank account in check!
Below is an example of a very organized shopping list.
http://www.relishrelish.com/default.aspx?p=sample-list
Tuesday, February 15, 2011
Eat Well on a Budget
As we get older, a lot of us start to become more health conscious. As a college student, I would love to eat healthy, but find that I simply can’t afford it.
But…
After a little research, I found some healthy, penny-pinching recipes.
Sweet & Sour Chicken with Brown Rice
Ingredients
2 cups instant brown rice
1/4 cup seasoned rice vinegar2 tablespoons reduced-sodium soy sauce2 tablespoons cornstarch
2 tablespoons apricot preserves
2 tablespoons canola oil, divided
1 pound chicken tenders, cut into bite-size pieces
4 cloves garlic, minced2 teaspoons finely grated or minced ginger
1 cup reduced-sodium chicken broth
6 cups bite-size pieces of vegetables, such as snow peas, broccoli and bell peppers
1.5 ounce can sliced water chestnuts, drained
2 cups instant brown rice
1/4 cup seasoned rice vinegar2 tablespoons reduced-sodium soy sauce2 tablespoons cornstarch
2 tablespoons apricot preserves
2 tablespoons canola oil, divided
1 pound chicken tenders, cut into bite-size pieces
4 cloves garlic, minced2 teaspoons finely grated or minced ginger
1 cup reduced-sodium chicken broth
6 cups bite-size pieces of vegetables, such as snow peas, broccoli and bell peppers
1.5 ounce can sliced water chestnuts, drained
Preparation
Prepare rice according to the package directions.
Meanwhile, whisk vinegar, soy sauce, cornstarch and apricot preserves in a small bowl. Set aside.
Heat 1 tablespoon oil in a large skillet over medium-high heat. Add chicken and cook, undisturbed, for 2 minutes. Continue cooking, stirring occasionally, until no longer pink on the outside and just starting to brown in spots, about 2 minutes more. Transfer to a plate.
Add the remaining 1 tablespoon oil, garlic and ginger to the pan and cook, stirring, until fragrant, 20 to 30 seconds. Add broth and bring to a boil, stirring constantly. Add vegetables, reduce heat to a simmer, cover and cook until the vegetables are tender-crisp, 4 to 6 minutes. Stir in water chestnuts and the chicken. Whisk the reserved sauce and add to the pan. Simmer, stirring constantly, until the sauce is thickened and the chicken is heated through, about 1 minute. Serve with the rice.
Monday, February 14, 2011
Happy Valentine's Day!! Love and Debt article! Definitely worth reading!
Happy Valentine's Day Everyone! Hope everyone has a very loving and blessed day!
A fellow classmate showed me this article about couples creating a money plan and I thought this would be appropriate for today, seeing as it is Valentine's Day! :)
Copy and paste the link below to begin creating your money plan with your Valentine!
http://www.nydailynews.com/money/2010/08/02/2010-08-02_love_and_debt_couples_need_to_get_together_to_map_out_their_money_plan.html
A fellow classmate showed me this article about couples creating a money plan and I thought this would be appropriate for today, seeing as it is Valentine's Day! :)
Copy and paste the link below to begin creating your money plan with your Valentine!
http://www.nydailynews.com/money/2010/08/02/2010-08-02_love_and_debt_couples_need_to_get_together_to_map_out_their_money_plan.html
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