The Best Student Credit Cards of 2016

These days, if you want to be able to buy a house later or get a good deal on your insurance rates, you need good credit. One of the easiest ways to build good credit is with the help of a credit card. If you are responsible in your use of credit, making occasional purchases and paying them in full before you are charged interest, you can build a good credit history.

The best student credit cards in Canada help those who have little to no credit established themselves. You can start building a financial reputation with the right credit card. Below are the best credit cards for students.


Scotiabank SCENE VISA Card – You can build your credit and earn cool movie rewards with the SCENE VISA card. Earn one point for each dollar you spend anywhere, and redeem those points for movie admissions and concessions. You can earn extra points (five for each dollar spent) at participating Cineplex locations.

There is no annual fee with this student credit card, and you get 2,000 bonus points with your first SCENE VISA card purchase. That’s enough for up to two free movies. Buy what you normally would, pay off the balance, and then get your entertainment for free. (Full Review)


MBNA Rewards Student Awards Card – This is a very straightforward credit card that can be used to build your credit history while earning rewards. You receive one point for each dollar that you spend. The MBNA Rewards Student Awards card also provides you with 1,000 points after your first purchase, and you get 1,000 bonus points each year on your cardmember anniversary. Points are flexible, and can be redeemed for merchandise, travel, cash back, and even charitable donations.

This card comes with no annual fee. You are also not capped on how many rewards points you can earn. The interest rate is 19.99% for all transactions from purchases to balance transfers to cash advances.


Scotiabank L’earn VISA Card – Earn up to 1% back every year with the L’earn VISA Card from Scotiabank. There is a tiered rewards system, starting at 0.25% cash back and working up to 1%. If you use your card wisely, though, paying for things you would buy anyway, it’s possible for you to earn rewards quickly and get that cash back faster.

There is no annual fee with this credit card, which means that you don’t have to worry about extra costs. The interest rate is 19.99% on purchases and 21.99% on cash advances and balance transfers. You can also get special discounts with various partners. Scotia bank also offers student credit tips for free so that you can learn how to best manage your credit card. You need to apply for this card at a branch, or by calling 1-888-882-8958.

source: canadianfinanceblog.com

Does Paying Rent Improve Your Credit Score?

Not too long ago, paying rent didn’t have much to do with your credit score. Not paying rent could (and still can) wreck your credit score. If you were behind enough to have your account sent to a collections agency, your past-due rent would likely be reported as negative information to the credit bureaus.

Rental rates in the United States are skyrocketing because of foreclosures, an unstable housing market, and the general hesitance of younger Americans, especially, to buy homes. While renting can be a good option for many, historically it has not been helpful in building a credit score.


For renters who are rebuilding credit after a foreclosure, or those who are renting until they can afford to buy a house, that’s a problem.

For many of us, rent is the biggest check to hit the bank account every month, and not getting some acknowledgement for paying that important bill on time is frustrating.

Luckily, some of the major credit bureaus are beginning to take rent into account on credit scores.

Experian and TransUnion now allow renters to include their positive payment information in their credit histories, according to the Wall Street Journal. But because this is relatively new, there are some caveats. Here’s what you need to know about your rent’s effect on your credit score:


Not All Companies Use It

At the moment, Experian and TransUnion will include rental information in your credit file; Equifax will not.

Also, not all credit score calculations are set up to include rental payments. The VantageScore calculation may incorporate rent into your score, but the more popular FICO calculation will not. This means that rent will affect certain scores based on the information from certain credit files.

Here’s how it works: Each credit reporting bureau keeps a file of credit history information on you. Your credit history is the basic facts of your payments, account inquiries, balances and such. It doesn’t automatically have a numerical score assigned to it.

In order to get a credit score, a credit scoring formula is applied to the raw information in your credit history file. This means that you could get three very different FICO scores – one for each credit bureau – or even three very different VantageScore results. And lenders can choose which score they use.

Most lenders use the FICO score, but VantageScore is starting to be used more often. To keep up, FICO may change its formula to include things like rent and utilities payments.


 It’s Not (Usually) Automatic

 

Experian is working with property managers through its RentBureau system to have rental payment data automatically updated for renters. Even though the company works with landlords across the country, only a fraction of renters have their information automatically reported to RentBureau. 

 

Also, the other information in your credit file may determine whether your rent is weighed in your overall credit score. According to CNN Money (emphasis is ours):

“VantageScore’s new model will also weigh rent and utility payment records, and public records like bankruptcies for people with very limited credit histories. This will allow it to score as many as 30 million people who previously couldn’t get a credit score and potentially help them qualify for more competitive credit rates.”

So even if your landlord does report your rental information to Experian or TransUnion, and even if you do pay your rent on time, you may not see a huge credit score boost. The inclusion of rent in a credit score calculation is mostly meant to benefit those who otherwise wouldn’t have much – or any – information in their credit files.

Of course, as more Americans opt to rent instead of buy, these standards could change.


How to Get Rent Counted in Your Credit Score


Now that you know these caveats, you may still be interested in having your rent reported in your credit history. It’s a good idea if you’re trying to repair bad credit, or if you don’t have much credit history. But how do you get it done? Here are four options:

1. Talk to your landlord. According to Experian, you can ask your landlord or property management company to join the RentBureau program. Your landlord has to sign up with a rental payment service that works with RentBureau, and then you can opt to have your rental history reported to Experian.

2. Use WilliamPaid to pay rent. WilliamPaid is one of the services that Experian, in particular, uses. Your landlord doesn’t have to sign up for you to use it. Basically, you use the service to pay your rent with a credit card, debit card, bank account or cash, which is accepted at certain retail locations. WilliamPaid also has an automatic payment option.

The fees for using various WilliamPaid payment options vary. It’s free to have your bank account electronically debited, but it costs 2.95 percent of your total payment to charge it on your card. You can also use a combination of payment methods for a 2.95 percent fee. Also, you can use the service to split rent payments between roommates, tracking who has paid and who hasn’t.

With WilliamPaid, you can have your rental payments reported to Experian. If you’re responsible with your payments and have them drafted from your bank account, it’s an excellent, free way to include rent on at least one of your credit reports. And if you use a credit card, you get the added benefit of having your credit card payments reported to the credit bureaus by your credit card company.

3. Try Rent Reporters. Rent Reporters is another rent reporting service, but it is not free. To get started, you enroll in the service, and the company verifies your information. Then, you’ll get an online account where you can track what information is being reported to credit bureaus.

You can sign up with Rent Reporters for free, and they’ll verify your information. Then, you pay $9.95 a month to have your rental information reported to the bureaus. For an additional $34.95, Rent Reporters can send up to two years of your rental payment information, as well. This could be a good option if you’ve always paid your rent on time and are trying to boost your credit score.

4. Check out Rental Kharma. Rental Kharma is similar to Rent Reporters. Again, you create an online account, but with this service, you’ll pay a one-time $10 fee for reporting up to two years of rent payments.

Rental Kharma provides information only to TransUnion, but Cullen Canazares, the company’s founder, said via email that Rental Kharma hopes to begin working with Experian soon.

One interesting thing about how this service works is that it makes rent appear as a tradeline on your TransUnion credit report. A tradeline is an account, according to Experian. So, essentially, TransUnion treats your rent payments like a credit card account or another installment type loan.


 Are These Services Right for You?

Whether these services are right for you depends on your credit situation and needs. Because rent is meant to be part of the credit scoring process for those with bad credit history or no credit history, these options are best for those on the low end of the credit ladder.

Experian representatives told CNN:

“Through the addition of rental data, one in three consumers falling in the lowest rung of Experian’s VantageScore credit scoring model (receiving a letter grade of an F and scoring between 501 and 600) will move up at least to the next level (with a D grade and a score between 601 and 700).

However, remember that you’re not guaranteed to receive better loan offers, even if your rent is reported to Experian and TransUnion, since you never know which score from which bureau a potential lender will pull.

Still, with services like Rental Kharma, costing $10 (or $20 if you’re married because you’ll have to apply separately), and with potentially free options like WilliamPaid, it doesn’t cost much to get a potential credit score boost. Plus, FICO may make some changes soon that could broaden the impact of having your rental income on your credit report.

Would you ever use one of these services to have your rental payment history reported to a credit bureau?

source: doughroller.net

Bank of America's Newest Credit Card Pays You to Repay Them

A new credit card from Bank of America (BAC) will offer cash rewards up to $120 a year to cardholders who pay off more than the minimum balance every month.

The BankAmericard Better Balance Rewards card gives cardholders $25 per quarter as long as they always pay their bill on time and pay off more than their monthly minimum due amount. Cardholders who also have a Bank of America bank account get another $5 each quarter, bringing the total to $120 a year just for staying on top of their bills and making an effort to bringing down their debt. The rewards can be cashed out or put toward your credit card balance.




That's a very different rewards program than you see on standard rewards cards, which focus on getting cardholders to spend as much as possible to get cash back. And while those rewards cards tends to be geared toward people with excellent credit, the Los Angeles Times notes that this card is likely to be aimed at lower-income consumers with fair credit.

So is the card a good deal?

The rewards are certainly attractive. To get $120 in annual cash rewards on a standard rewards card with 1 percent cash-back, you'd need to spend $12,000 in a calendar year (though bonus categories with rewards of up to 5 percent can allow you to get there more quickly).

By contrast, you don't have to rack up a ton of spending on this card to get a comparable cash bonus. In fact, even if you have only a $15 minimum payment, you could put a measly $20 on the card every month, and as long as you're paying a little more than the minimum due amount, you'll reap the rewards. If you also have a bank account with Bank of America, that means you could wind up getting $120 in bonuses on $240 of spending, a tidy 50% cash-back rate.

But that same feature also means that the card doesn't necessarily encourage people to make a serious dent in their balances. Because the cardholder need only pay "any amount more than the monthly minimum due" to get the cash bonus, simply paying a dollar over the minimum would be sufficient to get the rewards. A better incentive to encourage responsible borrowing might be to require cardholders to pay a minimum percentage of their total balance.

Another issue is that the annual $20 perk for holding an account with Bank of America might backfire on some consumers. The card, after all, is aimed at lower-income customers, who may not be able to maintain the necessary minimum account balance to avoid Bank of America's monthly account fees. If you're considering this card and you're currently with a bank or credit union that doesn't charge a monthly maintenance fee, you should examine Bank of America's fee structure to make sure that switching banks won't cost you considerably more in the long run.

As with any other credit card, then, you'll need to examine your own personal finance habits to determine whether it's a good fit for you. Played the right way, the Better Balance Rewards card can help you make some easy money without significantly altering your spending. Just don't be fooled into thinking it's a magic bullet for eliminating your credit card debt.


source: dailyfinance.com

Personal Loans With Bad Credit: The Advantages of Instant Access Financing

Not everyone has the kind of collateral needed to secure a loan approval quickly. Even when an applicant has a good credit history, the challenge of getting approval on an unsecured loan can be quite hard, so when seeking personal loans with bad credit, the difficulty is understandably much greater. But there are loan options available.

The problem with pledging an item as collateral is that, should the loan be defaulted upon, it is lost. And when the item is a family heirloom or a piece of valuable jewelry, losing that collateral for the sake of $3,000 or so can be a bitter pill to swallow. But there are other options when hunting for guaranteed loan approval.

These are basically fast access personal loans that require the minimum time for approval. They are usually referred to as payday loans, but there are large loan options too, providing sums greater than $1,500. But these loans come at a price, and compromises must be accepted before funds can be accessed.

What Creates a Bad Credit Borrower?

Many people are categorized as bad credit borrowers, but while this once occurred as a result of poor money management and unreliable borrowing, the impact of the recent economic crisis has seen many honest borrowers slip down the credit rating table. As a result, there has been a jump in the number of people seeking personal loans with bad credit.

A low credit rating can come as a result of a county court judgment, or a bankruptcy ruling or even with a growing number of loans that have fallen into arrears. Of course, they can all affect the chances of getting guaranteed loan approval, but it is important to understand that they cannot halt the chances of getting approval itself.

The problem is that, when it comes to applying for a personal loan, a higher interest rate is charged, raising the cost of the loan and providing the opportunity for lenders to reject the application. This is where a no credit check loan with same day approval can be so valuable.

Terms To Consider Before Applying

As great as a no credit check loan might seem to someone seeking a personal loan with bad credit, there are negatives to the deal too. The fact that a low score can be ignored and have no bearing on the application process, is a boost but that convenience comes at a cost.

These loans practically offer guaranteed loan approval, but they are also considered the most expensive loans on the market. Because lenders are foregoing a credit check, they are leaving themselves vulnerable to borrowers with very bad track records in repaying loans. So, a higher interest rate is charged to cover their potential losses, sometimes as high as 30%.

What is more, the repayment term is usually very short. A typical payday loan is repaid within 30 days, while larger instant approval personal loans may require between 90 and 180 days.

Find the Best Loan

With these factors to consider, it can be hard to find a loan that is affordable. But there are lenders out there that specialize in lending to bad credit borrowers, mostly to be found on the Internet. Take your time in assessing the deals available there before making a decision on where to apply for a personal loan with bad credit.

When there is pressure to find funds, these fast access loans are definitely the best choice out there, with the much-needed cash accessed as quickly as in just a few hours. With guaranteed loan approval, this means that a lunchtime application can result in the money in the hand before 4 pm, so even financial emergencies can be dealt with very quickly through a personal loan.

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Article Source: http://EzineArticles.com/?expert=Mary_Wise

How to Improve your FICO Score

It is important for you to understand that trying to raise your FICO score is quite similar in nature to losing weight. There is no quick fix and it is absolutely going to take time. Quick fix efforts for improving your credit score can most certainly back fire if you are not careful. The best advice for you to follow is simply to manage your credit in a responsible manner over a period of time.

Tips for Payment History

1. Make sure that you are paying all of your bills on time. When you have delinquent payments or accounts in collection, you could be putting a serious negative strain on your FICO score over all.

2. If you have missed any of your payments, then you need to get current and you need to stay current. The longer that you manage to pay your bills in a timely manner, the better your credit score is going to be.

3. Understand that paying your collection account off is not going to remove it completely from your credit report. The delinquent collection account is going to sit on your credit report for a period of 7 years before it disappears.

4. Understand that if you are having trouble when it comes to making ends meet, legitimate credit counselors and working with your creditors may actually help you. You may not be able to improve your FICO credit score on an immediate basis, but you can begin to improve your management of your credit, paying on time, to improve your credit over time.

Tips for Amounts Owed

1. You need to keep your balances low on your credit cards and other types of revolving credit as well. When you have high outstanding debts, this can have a negative impact on your credit.

2. Make sure that you are paying debt off rather than simply moving it around. Pay your debt down and you will surely improve your credit score over a period of time.

3. Do not close out any unused credit card accounts because it is not going to raise your score in any way but rather may actually hurt you in the long run.

4. Do not open a bunch of new credit cards if you do not need them because this strategy is not going to improve your credit score. This approach could quite possibly backfire, lowering your credit score as a result.

Credit History Length Tips

1. If you have only been managing your credit for a short period of time, do not open too many accounts too quickly because too many new accounts will lower your average account age. This could have a serious impact on your credit score in a bad way.

source: richcreditdebtloan.com