A Few Pointers Before Getting A Student Credit Card

A student credit card can be a great way to deal with difficult times during your study years, however they can also be disastrous to your wallet, your bank account, your credit file and even your ability to get financial facilities in the future. So are you certain a student credit card is right for you? Let’s take a look..

1. Can you manage the repayments responsibly?

Firstly you need to carefully consider your repayments before you make an application! It doesn’t matter whether you have a small or a huge balance, each month you’ll receive a bill. Regardless of the amount, you will still need to make a payment each and every month until your debt is cleared. This is YOUR responsibility.

2. Can you stay in control?

So you know you can afford the payments. Next you need to decide if you have the discipline to stay in control! Can you stay in control and only use your student credit card when you really need to? If you’re one of those people who tends to splash out and spend more than you can afford, stay away from a credit card! A student credit card should be used as a way to help you out in case of emergencies.

3. Your credit file does matter!

The final consideration is your credit file! Everything you do concerning a credit card is recorded on your credit file. This is a really important document that records your financial histories such as payments on credit cards, loans, finance agreements and mortgages. Your credit file is used by lenders when considering your application so it’s extremely important to keep it in good shape!

So what do you think? After considering the important three points above, you should be in a better position to decide if a student credit card is for you at the moment.

This entry was posted on Monday, December 17th, 2007 and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
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How Credit Scores Affect Mortgage Applications

With a good credit score an applicant will receive prompt response from many lenders, all of them offering low interest rates and low down payment options. The loan amount offered also may be high. On the contrary a low credit score would result in a lot of rejection from various mortgage financers. Because creditors wouldn’t come forward easily to give credit to individuals that have a history of difficulty in repaying existing loans. After all, creditors take risk when they finance mortgages against the credit history of a debtor. Naturally, they will wish to remain on the safe side and pick up less risky ones that have good credit histories. A good credit score means less chance of missing on payments and therefore less risky.

But there are some real risk takers that will come forward to finance mortgages for individuals with bad credit scores. They would charge high down payments and always high interest rates though. They may also fix additional charges for every little paper work and may charge high closing rates. The loan amount offered will also be considerably less. The individual with poor credit scores will not have much choice but to accept the terms and conditions as there are no other alternatives. This is a tight situation and to avoid this you must have a good credit score.

People with bad credit may fall in to the trap of ’secured loans’. Secured loans are the ones where the loan applicant offers an asset as collateral security. The lender becomes secure about the repayment of the loan and not the borrower. Securing a loan with bad credit score becomes easy only when the applicant is willing to offer some asset as collateral security. This again is a very dangerous situation where an individual runs the risk of losing his entire collateral asset in case of failing to pay the loan installments in time. An individual should always avoid such type of a loan.

Resort properties normally require large amounts of finance which a person with bad credit may find it difficult to obtain. So it is always advisable to keep your credit score high. Incase the credit score becomes low due to unavoidable financial reasons it can be improved upon. There is no need to lose hope simply because a person has a low credit score. If the property that he intends to buy has good equity he should go out and try to obtain finances for it. There are many sub prime lenders willing to offer their services.

For a review of your credit report as it relates to a mortgage loan and a consultation on the best loans available to you, give us a confidential, no obligation and no cost call.