College students often find themselves in a financially difficult position during the summer months. They may be taking summer classes but not getting as much financial aid as they do during the normal semester and are therefore struggling to meet their financial commitments. Alternatively, they may not be in school and trying to find a short-term job for the summer but the jobs that are available for just a few months at a time are rarely ideal and often don’t pay well enough to cover living expenses as well as general bills. This puts many college students in an awkward financial position in terms of dealing with their student credit cards.

There are two general issues that come up for college students which relate to the use of student credit cards during the summer:

1. Deciding to use the credit cards to afford life during the summer. Many college students don’t want to get a job during the summer months and don’t have enough money to pay their rent and living expenses since there is no money coming in from financial aid. These students decide to use the credit card to pay for general expenses throughout the summer and tend to rack up excessive credit card bills as a result.

2. Inability to pay credit card bills during the summer months. Because there isn’t that money coming in from financial aid and school loan assistance, many students find that their ability to make timely payments towards their credit card debt is made difficult during the summer months. This can result in late or missed payments and damage to the student’s credit.

Dealing with both of these issues means taking responsibility for using credit cards responsibly during the summer, something that many college students would prefer not to do because it feels a whole lot easier to ignore the problem until that first student loan check comes in the fall.

The main thing that college students need to realize is that irresponsible use of credit cards during the summer months lasts a lot longer than just the duration of the summer. Students who rack up a lot of debt during the summer will struggle throughout the upcoming school year to pay back that debt. Students who fail to make credit card payments in the summer will find that their credit suffers as a result even after they start to make timely payments in the fall.

The smart solution for most college students is to implement a summer budget, reduce spending as much as possible, get at least a part-time job to pay for expenses and to make sure to make at least the minimum payment on credit cards during the summer months. This takes some will power and a sense of responsibility – after all, most college kids would prefer to just enjoy their summer vacation – but it’s something that is financially a good plan to follow. Students who are able to do so are generally going to be more financially stable and satisfied in the long run than those students who use summer to get themselves into a financial mess.

Most people are aware of the fact that there are credit card scams out there which can cause them to become the victims of identity theft. Unfortunately, most people also believe that it is unlikely that they will ever actually become the victims of one of these credit card scams. In order to fully protect yourself from the scams that are out there, you need to be aware of the fact that there is indeed a serious risk that you could become one of these credit card scam victims. This isn’t just something that happens to somebody else but is something that could very well happen to you.

The best defense that you have against becoming the victim of a credit card scam is to know what the most common types of scams are so that you can make sure that you don’t get suckered in to participating in one of these scams. There are many different types of scams out there but the most common ones happening right now are ones that take place through telephone and Internet communication. Being aware that these are two high-risk areas of communication that could put your credit card security at risk is going to make you significantly less likely to be impacted by one of these scams.

One of the most common places that you’re going to see scams in your daily life is in your email inbox. There are two major types of email scams that occur. The first is the international assistance scam. In this scam, someone emails you saying that they are from another country and seeking assistance with some sort of transfer of funds. The details may vary but ultimately this involves using your credit card information to assist the individual; ultimately this results in stolen identities.

This scam is actually less common than the second type of scam which is an email that appears to be from a legitimate institution such as your bank. This email will say something along the lines of that your credit card information has been mixed up and that you need to reply to the email with your account information to verify that the problem is going to be resolved. Sometimes they ask you to email your account information, sometimes they ask you to call about it and sometimes they ask you to go to a third party website. In all cases, it is a mistake to give out your credit card information. If your bank needs it, they will contact you via phone or written letter so there’s a good chance that this is a scam.

There are similar scams to both of these that take place via phone or through a combination of email and phone. For example, the latter case may ask you to call a phone number which requests that you input the credit card information into the phone using the phone pad keys, resulting in the theft of your credit card information. Always be suspicious of anyone who requests information about your credit cards over the phone or the Internet. If you get this type of request, contact your credit card company to confirm the legitimacy of it.

You have just gotten approved for your first credit card and you’re ready to start using it. This is an exciting time in life, something that is almost a rite of passage in American society today. However, it’s also a time when you must start recognizing that you’re an adult who has to take your finances seriously. Many people make some big mistakes with their first credit card, mistakes which they end up paying for in the long run.

Here are the top ten things that you don’t want to do with your first credit card if you want to get off on the right foot with good credit:

1. Spend more than your credit limit. Make sure that you are aware of what your credit limit is so that you don’t go over it. This will help you avoid over-limit fees, keep your debt manageable and keep your credit in good standing.

2. Make late payments. This is one of the most common problems people have with a new credit card and you want to avoid it at all costs because it’s nothing but trouble for your finances and your credit rating.

3. Pay only the minimum balance. You want to try to pay off the entire card in full each month to establish good credit and keep debt under control. At the very least, you’ll want to pay as much as possible on the debt each month.

4. Live off of the credit card. You should never rely on credit when you don’t have an income to pay the debt.

5. Buy things that you don’t need. It’s tempting to use the credit card to make unnecessary purchases but you want to avoid this. Try to purchase only those items you would also buy if you only had cash.

6. Use it to help others. Don’t lend money to friends using your credit card because even if they pay you back, you’ve still paid the interest on the card for them.

7. Assume that this is just a trial card. Some people treat the first credit card as a “test it out” card and figure that their mistakes don’t matter. The reality is that this is going to impact your credit so you want to get it right from the get go.

8. Put yourself at risk of identity theft. Before you’ve gotten used to using a credit card, it’s easy to make mistakes that can put you at risk of identity theft. Don’t leave receipts lying around. Don’t lend your card to anyone. Don’t give out account information to strangers via phone or email unless you’ve initiated a purchase. Don’t throw statements in the trash without shredding them.

9. Go into the situation blindly. Really sit down and ask yourself why you want a credit card, what you’re going to use it for, what you need to do to be responsible with it and how you feel about the use of the card. Thinking through it helps you to make better decisions about using the credit card.

10. Be afraid to use it. Some people are so afraid of making the above mistakes that they end up avoiding use of the credit card all together. That won’t help you develop good habits so don’t be afraid to use it as long as you use it responsibly.

If you develop good habits with your first credit card then you can go on to much better use of credit cards and other loans over the course of the rest of your lifetime. If you develop bad habits, you’ll find yourself paying for them for many years to come.

When you are looking to get a new credit card, one of the first things that you are going to look for is a low interest rate. Everyone is basically aware that a low interest rate is an important criterion for a good credit card because it generally reduces the amount of money that you pay for borrowing funds on a credit card. While it’s certainly important to keep this in mind as you choose a credit card, it’s also important to be aware of the fact that there are times when the low interest rate on a credit card doesn’t really matter. Sometimes, there are going to be other benefits of a card that can outweigh the drawbacks of a higher interest rate so that you wouldn’t necessarily choose the low-interest card from the credit card options available to you.

The first thing to realize is that the interest rate on a credit card typically only matters if you are planning to carry a balance on the card. Many people make use of the credit card as a convenient method of making payments for daily expenditures while keeping monthly finances concisely organized. These people often pay off the credit card balance in full each month because they aren’t using the credit card to borrow money that they don’t have but are instead using the credit card to simplify their financial lives. Those people who are consistently going to pay off the entire balance of a credit card at the end of each billing cycle are people who really don’t need to worry about a low interest rate because they aren’t being charged interest anyway.

Another thing to realize when it comes to interest rates and choosing your credit cards is that the low interest rate is only valuable on big expenditures if it’s going to be a permanent or long-term low interest rate. For example, many people try to find a low interest rate on balance transfers so that they can consolidate a big chunk of debt into an easier-to-pay-off loan. In this case, the low interest rate is important but it’s only going to be useful if it lasts long enough to make it possible to pay off at least a large percentage of the consolidated loan before the low interest runs out. In other words, it’s nice to lower your interest rate from 15% to 10% but if the lower interest rate only lasts six months and then climbs to 20% then it probably wasn’t a good idea in the first place.

Finally, it’s important to realize that a low interest rate is only one critical factor that you’re going to want to look at when you are assessing the credit card that is right for you. You’re going to sometimes find that the other benefits of a card may outweigh the fact that it has a higher interest rate than other choices, a fact which may depend upon your particular spending style. For example, let’s say that you don’t carry a very high balance on your credit cards but you tend to be disorganized with your finances and often incur late fees. A credit card without late fee penalties might be a good choice even if it has a higher interest rate than other cards that you’re considering using. Weighing factors in addition to low interest rates is important when selecting a credit card for regular use.

Everyone knows that they are supposed to try to have a good credit report with an excellent credit score. However, most people don’t completely understand all of the benefits of having great credit. They just know that it’s something that they’re supposed to aim to have. The reality is that there are a lot of things that you can get more easily in life when you have a good credit report to back you up. When others see you as a good borrower, they assume that you are responsible with your money as well as with the rest of your life and they are more easily willing to trust you. This means that a good credit report gets you better terms with your credit, loans for larger purchases such as cars and homes and even gets you better housing.

The main reason that you’ll be interested in improving your credit is because you can get better terms for your credit if you have a good credit score. The interest rate on your credit cards is determined in part by your credit so you’re going to pay less in interest on your credit cards if you have a higher credit score than if you have bad credit. You’re also going to qualify for better credit card rewards programs, get better general perks on your credit cards and be offered better customer service when you have a higher credit score. Basically, if you’re a good borrower on your credit cards then more credit card companies will want to compete for your business which means that they’re going to offer you better terms.

Having good credit will also make it significantly easier to get loans for larger purchases than what you could buy with your credit cards. People who are seeking out car loans and loans to purchase a home are going to find it much easier to qualify for those loans if they have already established good credit through the responsible use of their credit cards. These people will also find that the terms of these larger loans are much more favorable to them than they are to people with poorer credit. Again, lenders just take a stronger interest in lending to you if you’ve already established that you are responsible with your borrowing practices.

Finally, the individual with better credit is going to find life easier in ways unrelated to loans as well. The most common thing that you can get more easily with good credit than with bad credit is better housing. Landlords and even people selling homes are going to look at your credit report to determine whether or not you can be responsible in renting or buying a home from them. Those people who have good credit are going to find that they have more options than others in regards to the homes that they can choose to live in and the neighborhoods where those homes will be located. It’s worth making the effort to establish good credit so that others will view you as responsible and be willing to work with you in many different areas of life.

You are going to hear again and again that it is a bad idea to use balance transfer checks when they are offered to you by your credit card company. For the most part, this is good advice. These checks can come with high fees and can cause you to spend more money than you should on your credit card. However, there are times when it does make sense to use balance transfer checks because the benefits of using them outweigh the drawbacks. You should be aware of these times so that you can make wise use of balance transfer checks when they are offered.

Here are seven times when it’s actually smart to use balance transfer checks:

1. When you can pay off the balance during the low-percentage offer. Balance transfer checks usually have a low APR for either 6 or 12 months. If you want to consolidate debt and pay off the entire amount before that time period is up, using the checks could be a great way to do that.

2. When there is no transaction fee. Every once in awhile you’ll get balance transfer checks where the fee to use them has been waived. If the interest rate is low, this is a smart time to use them.

3. When you would otherwise have to make a late payment on another card. Balance transfer checks can be used to pay off other credit cards. If you have no other way of making a minimum payment, this is typically better than getting late fees on those cards.

4. When you’ll have lump sum money coming in soon. Students sometimes use balance transfer checks to hold them over until their school funds come in. If you’re in a bind and the checks come with low interest and low transaction fees, this can be a smart thing to do but only if you really do pay the bill when you get your money.

5. When disorganization with credit cards is getting you into trouble. If having to pay too many bills is causing late fees and over-limit fees then you might want to use balance transfer checks to consolidate and get back on track.

6. When you want to loan someone money with interest. If a friend needs help paying credit card bills then you can use the balance transfer checks to pay those bills and then charge the friend a higher interest rate to earn some money for your help.

7. When you know what you’re doing. As long as you understand how balance transfer checks work and what the pros and cons of using them are then you should be able to use them without serious damage to your finances or your credit.

It is definitely true that there are drawbacks to making use of those balance transfer checks that come in the mail. However, they aren’t all bad. Know how they work and then use them in a smart way to make them work for you instead of against you.

You probably think that you know almost everything that there is to know about your credit score. This is something that the average person has been taught to learn because of the importance that it plays in taking steps forward in our lives. The individual who owns a business is going to be even savvier than the average consumer in this area because a good personal credit score can be crucial to getting the loans necessary to launch a business. But did you know that your personal credit score isn’t the only credit score that matters when it comes to doing business? There’s also such a thing as a business credit score and it can be equally as important as the personal credit score to moving a business forward over time.

When you start earning money and developing credit as an individual, the information is tracked using your personal identification number (your social security number). The same thing is true for the business. As soon as you’ve gotten an employer identification number and started to use it on financial documents, the information is being tracked. That information leads to a file which is considered to be your business credit report and it ultimately leads to the creation of your business credit score. This score is easier to understand in terms of the numbers because it’s a simpler rating system than your personal credit score. A personal credit score ranges from 300 to 850 which can confuse people. In contrast, the business credit score ranges from 0 to 100 with 75 or higher being a good credit score. That’s fairly easy to keep in mind.

So now that you know that a business credit score exists and that it’s important, how can you make yours better? The first thing to do is to get some information about your existing business credit reports. There are four major business credit bureaus that track this information. Two are the same as two of the personal credit bureaus: Equifax and Experian. The other two are Business Credit USA and Dun and Bradstreet. Just like you need to see your personal credit report to make sure it’s accurate, you need to see your business credit report to know how to improve it.

The one important difference between the personal and business credit score is that businesses lending money to another business aren’t required to report that to the credit bureaus whereas personal credit lenders are. As a result, you may find that businesses lending you money in the past didn’t report the information which means you may have a positive business credit history that was never reported. The quickest way to improve your business credit score is to ask these lenders to report the information to the credit bureaus. From that point on, it’s just a matter of making sure that you always use your Employer ID Number when getting business loans and that you request the information to be reported to the business credit bureaus. And make sure to stay on top of payments so that the business credit score stays high!

You were once happily married. You and your spouse shared everything, including your credit cards. You didn’t want money to be a big problem in your relationship so you just both used the same cards and dealt with the bills when they came in and tried not to think about it too much. But the marriage went sour and now that you’re in the middle of a divorce, you’re not too thrilled about the fact that you’ve got all of this credit card debt under your name that was really from purchases that your spouse made. What can you do about it? This is an increasingly common problem so there are more and more solutions in place for couples that are dealing with it.

Here are some of the things that you need to do to divide debt (and avoid future shared debt) when in the midst of a divorce:

• Try to work out an amicable agreement with your spouse regarding who is responsible for paying off which portion of the debt. This isn’t easy; dealing with money issues is tough even in the best of relationships. However, it makes the rest of the process go a lot more smoothly if it can be done. Sit down, calmly, with an organized file of the expenses and see what can be resolved.

• Bring in mediators. If you can’t resolve this on your own, you’re going to need to get your lawyers to resolve the issue with you. Come to the table with clear records of what the expenses were that caused this debt. Highlight all of the debt that you feel solely responsible for (your husband really doesn’t need to pay for your $500 shoes) and mark all of the debt that you feel partially responsible for. This will be a good starting point for the mediators to assist you in reaching a final decision on who pays what.

• Get it in writing. You want to make sure that the final decision on who pays what is going to be legal so write it into the settlement agreement. Make sure that you include a clause about what legal actions can be taken against your spouse if he fails to hold up his end of the bargain and causes harm to your credit rating.

• Contact the creditors together and ask that the debts be legally transferred to the individual who is going to be responsible for them. Some creditors will refuse and continue to hold you both liable but most are used to this situation and will be amenable to the transfer of liability.

• Put a “hard close” on the account. You can’t close a credit card account that has outstanding debt but you can do a “hard close” which means no new charges can be made. This is a smart move when divorcing to avoid additional debt from being incurred.

Make sure to take responsibility for making on-time payments regarding your own portion of the debt. This will allow you to avoid future legal issues with your spouse and will also help you to build good credit as a single person.

As we start to get older, we worry a lot about what’s going to happen to our finances after retirement. The majority of people are terrified about entering retirement with a lot of debt under their belts. It’s true that you’re going to want to reduce the amount of debt that you have as much as possible before you retire. However, you don’t want to do this at the expense of setting up a retirement fund for yourself. It’s worse to enter retirement with no debt and no savings than it is to enter it with both debt and some savings. As a result, it makes more sense to save towards retirement than to pay off credit card debt in full.

The major reason for this is that most people have so much credit card debt that it is unrealistic to expect to pay all of it off before retirement and to still be able to sock away some savings. You don’t want to spend your entire working life paying off that debt only to find yourself facing retirement without any sort of income to invest in your future. As a result, you want to work at creating a savings account that will generate interest while it creates future financial stability. You’ll still want to work towards paying off your debt but you don’t want to solely target the debt while ignoring your retirement fund.

The key here is to make smart investments of your money that are going to yield more for you in the long run than you’re going to get if you just pay off your debt. This involves a two-step process in which you reduce the interest rate on your debt while simultaneously increasing the interest rate on your savings. This will allow you to generate more money in the long term than you would if you were simply paying off your credit card debt but not putting any money into savings.

In order to be able to maintain your credit card debt into retirement without facing significant financial consequences, you want to do all that you can to lower the interest rate on the debt. The best option is to consolidate all of your debt into a loan that offers a lifetime of low interest. This is better than a short-term zero interest loan consolidation if you’re trying to plan for long-term debt. Consider options that include home refinancing and other credit card debt alternatives as these are more likely to offer long-term low interest rates than cards will.

Use the extra money that you’ve been paying towards the credit card debt to invest in savings accounts that are going to offer you more interest than what is being taken away by the debt. For example, if your debt has an interest rate of 5% but you can find an investment savings account that yields you 10% interest then you’re going to be financially better off putting your money into that savings account than you are if you use it to pay off the debt. As you near retirement, you need to think long term and that doesn’t always mean paying off credit card debt immediately.

There are many different things that you’re going to take into consideration when you’re trying to get a credit card. You’re going to want to review the interest rates on purchases, balance transfers and cash advances so that you can choose the card with the best deal. You’re going to want to compare rewards programs so that you can get the most back for the money that you spend. And you’ll want to factor in specific perks and drawbacks for each card. You probably already know all of this. What you might not know is that the most important thing that you can review and consider before choosing a credit card is your own financial personality.

There are benefits and flaws to each credit card that is out there. The key is to know enough about yourself to understand which credit cards are going to play to your own financial strengths and minimize your financial weaknesses. Here’s a look at some of the most common financial personalities and the cards that are right for them:

• Impulsive / Indulgent Spending. This is the kind of person who doesn’t tend to plan well regarding spending. Instead, they’ll engage in frequent impulse buys or treat themselves to big expenses they can’t afford. The important thing to look for in a credit card here is low interest rates on purchases. This is more important than rewards or balance transfer rates because where you really spend a lot of money is on the immediate buy.

• Planned spending. In direction opposition to the person who loves impulse buys is the person who plans out every expense. If you’re the type to stick to a budget then you can benefit from credit cards that offer long-term plans. Rewards cards are perfect, especially those that are linked to savings account or investment plans. Since you probably already pay off your card in full each month, the interest rate won’t matter as much here.

• Disorganized spending. Sometimes you pay your bills on time and in full. Sometimes you forget that your bills are due until the utilities start shutting off. The credit card for you is the one that doesn’t penalize you a lot. Look for cards that let you avoid high late fees and over-limit fees.

• Inexperienced with spending. Some people don’t have problems so much because they’re disorganized as because they’re young and not yet used to paying bills. If you fall into this category, you should look for credit cards that are going to teach you to be smart with your finances. Student credit cards are ideal if you’re in school. The no-credit credit card may also be an option.

• Specific spending. Some people are so habitual that they always spend their money in the same few places. If that sounds like you, then you’re going to want to look for rewards cards that emphasize that spending. If you always spend on gas, get a gas rewards card. If you’re a frequent traveler, look at travel rewards. Alternatively, look at cards that offer double points back on your top areas of spending.

If you know what kind of financial personality you have, you’ll know which credit cards you need.