Credit Card Quick

How to get your Finances (once and for all) in Order

Credit Card Debt

Do you want to get your finances in order so you can spend your summer playing in the sun and relaxing in the shade instead of worrying over your bills and debts? Simply devote the next day or two to getting your finances in tip-top shape and you can start your summer off with a clean financial slate. Here’s what to do:

• Order a copy of your credit report – Everyone is entitled to a free copy of their credit report, every 12 months, from each of the three credit reporting agencies. Take some time and really study your credit report so you can be sure all information is accurate and recognizable. If anything looks out of the ordinary or if you notice errors or discrepancies, contact the appropriate credit reporting agency immediately to get the matter resolved.
• Look at your debts – Sure, you know you have debts, but have you ever laid them all out on the table and really took a good look at your balances and interest rates?  Simply by taking the time to review your debts you can change the way you look at your debts and how you can tackle them and pay them off. If you are paying too much in interest rates, consider your options. Can you contact the creditor to negotiate a reduction in your interest rate? Can you transfer your balances onto one credit card with a competitive interest rate? Do you need to seek the assistance of a credit counselor if your debts are too much to handle?
• Develop and implement a game plan – Once you have your debts in front of you, it’s time to come up with a realistic solution for paying them off. Don’t beat yourself up over the length of time it will take to pay them off; simply focus on developing and implementing a game plan. There’s nothing quite as empowering as taking control of your finances and not letting them take control of you.
• Make your life easier – If you need to get better control over your finances, consider the many ways in which you can make this process easier. Set up bill payments through your bank; consider setting up automatic bill payments; and go paperless by eliminating paper statements.

Five Signs your College Student may be Ready for a Credit Card

Introduction

Your baby is headed to college, and you wonder if it may be time to arm him with a credit card. Because banks are now held to higher standards when it comes to approving college-age adults with credit cards under the CARD legislation, chances are that you will need to co-sign for a credit card for your college-age child. So, the question is: Is it time to help your college-age child obtain his or her first credit card?

Well, that depends. Although you want to be able to help your child begin to establish good credit, you are also putting your credit on the line if you co-sign. With that said, you should carefully examine your college student’s habits and financial maturity. Here’s what to look for:

1. He has a steady job – A steady job is a must if your child expects to pay off his or her monthly expenditures on a credit card. Arming your college-age child with a credit card only for you to pay it off each month teaches him or her little to nothing about responsible spending, so wait until your child actually has steady employment to be able to pay off the bill each month.
2. He has an active checking and savings account – A checking and/or savings account is a fantastic first step in the world of financial responsibility, so before any credit cards are applied for, make sure your child has an open and active checking account and learns the basics of checks and balances.
3. He pays his other bills on time – A great indication of your child’s ability to handle the responsibility of a credit card is whether he or she has bills and pays them on time, without fail.
4. He understands the value of money – Does your child save any money each month? Does your child save up for things he or she wants? Does your child have a clear understanding of living within his or her means?
5. He understands the importance of a strong credit score – Before co-signing for your college student’s first credit card, have a long talk about the importance of a strong credit score, the advantages to having a strong credit score, and the many downsides to a weak credit score.