What’s the difference between an authorized user and an employee card? – The Points Guy


What’s the difference between an authorized user and an employee card?


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Source: thepointsguy.com

How to Maintain a Good Credit Score in College

College life brings a host of new and exciting experiences in the various aspects of your life. Financial independence and responsibility also come to play. While your achievements are important in putting you in your right career path, a good credit score is paramount in bettering the deals you will get when renting or buying a home, purchasing a car, getting a cellphone plan, applying for a student loan or in some instances, getting employment.

This calls on your effort to not only build but also maintain a good credit. It may sound complicated and intimidating especially when you don’t know how to go about it. Below, is all you need to know on how to maintain a good credit score in college.

Good Credit in CollegeGood Credit in College

Taking Advantage of your Parent’s Good Credit

This is commonly referred to as ‘piggybacking’. It allows people with bad or no credit to enjoy a spillover of other people’s good credit. It is a great way of establishing and maintaining your credit especially if you need a little help in managing your budget. For you to qualify for this, you have to become an authorized user of your parents’ accounts.

This comes in handy especially if you can’t get your own credit card; according to Oct 1st 2013 Credit Act report, students and other persons below 21 years of age cannot get their own credit cards without proof of income or at least a co-signer. Apart from the credit boost you get from your parent’s account, your credit card use is forwarded to credit bureaus in your name.

Get the Most Suitable Credit Card

Your ability to qualify for a credit card opens you to the opportunity to choose from a variety of cards. You should research and shop around to find out what these cards have to offer before making your choice. Some of the benefits to look out for include low interest rate, no annual fees, convenient credit limits and other competitive incentives.

Better still, you can opt for student credit cards. These come with incentives such as cashback rewards, limited credit history requirement, no annual fees and 0% introductory APR among other benefits. Your own credit card comes with sole responsibility. This means that it’s up to you to stay on top of your billing statements so as to improve and maintain a good credit

Always Pay your Credit Balance

Your payment history accounts for 35% of your credit. Good credit of course depends on timely and full payment of your balance. Inability to pay or late payment may attract additional interest, accrue more debt and negatively affect your credit.

This can take a long time to repair. Besides this, it is also a sign that you are living beyond your means. Ideally, your credit balance should be about 30% of your credit limit or below.

Tip: The higher your credit balance in relation to your limit is, the worse your credit becomes.

Pay your Bills on Time

Late or failed payment of rent, utility bills, parking tickets, library or school fees and other payments can harm your credit; especially is if they are sent to collection agencies and reported to credit bureaus. Ways of beating this include setting up payment reminders and electronic billing. You can also organize for auto payments with your bank to ensure that timely payments are done.

If you live in an apartment, you might get credit for full and timely payments. You can take advantage of eRentPayment which transfers your payment reports to the three major credit bureaus; Experian, Equifax and TransUnion. This consequently improves your credit. However, your landlord needs to be registered and the lease needs to be in your name.

Limit Applications and Inquiries for New accounts

Numerous credit inquiries negatively impact your credit score. In the event that you need to make new credit applications that warrant hard inquiries, concentrate them into period of 14 days in which they will factor as one inquiry.

Once you decide to get a credit account, get all the facts right to avoid the urge to close and open others every now and then. Short credit histories with several new accounts are seen as riskier compared to a few accounts with long credit histories. When you close a credit card, you not only lower your available credit but also shorten your credit history both of which can reduce your score.

In a Nut Shell

Maintaining a good credit score in college is important if you are going to get any good deals in personal credit in the future. This requires vigilance on your part to ensure that you do not do anything that can have negative impact on it. When all is said and done, it all comes down to personal financial responsibility.

Source: creditabsolute.com

4 Credit Cards With Great Security Features

[UPDATE: Some offers mentioned below have expired and/or are no longer available on our site. You can view the current offers from our partners in our credit card marketplace. DISCLOSURE: Cards from our partners are mentioned below.]

Thieves lurk in the physical and virtual world, looking for ways to access your credit card number or commit identity theft. Whether you shop online or in brick-and-mortar stores, it’s wise to take steps to protect yourself against fraud.

Credit card companies have many tools to help combat credit card fraud, and sometimes offer additional security features to protect against identity theft.

Here are four credit cards with great security features.

1. Discover it Cash Back

Rewards: 5% cash back on up to $1,500 in quarterly rotating categories like gas stations or restaurants, 1% cash back on everything else

  • I just watched a documentary on the dark web, and I will never feel safe using my credit card again!

  • Luckily I don’t have to worry about that. I have ExtraCredit, so I get $1,000,000 ID protection and dark web scans.

  • I need that peace of mind in my life. What else do you get with ExtraCredit?

  • It’s basically everything my credit needs. I get 28 FICO® scores, rent and utility reporting, cash rewards and even a discount to one of the leaders in credit repair.

  • It’s settled; I’m getting ExtraCredit tonight. Totally unrelated, but any suggestions for my new fear of sharks? I watched that documentary too.

  • …we live in Oklahoma.

Signup Bonus: Discover will match the cash back you earn in the first year.

Annual Fee:

Annual Percentage Rate (APR): , then

Why We Picked It: Discover’s Freeze it feature gives you peace of mind if you’ve lost track of your card.

Security Features: With Freeze it, cardholders can freeze their card within seconds using Discover’s website or mobile app. This way, if you can’t locate your card, you can freeze it and look around before reporting it lost or stolen. If your card is misplaced, Discover offers free overnight card replacement. Cardholders also won’t be held liable for any unauthorized purchases.

Drawbacks: To maximize cash back, you’ll have to do the work of activating and tracking rotating purchase categories.

2. Blue Cash Everyday from American Express

Rewards: 3% cash back on up to $6,000 spent at supermarkets, 2% cash back at gas stations and select department stores, 1% cash back on everything else

Welcome Offer: $150 statement credit after spending $1,000 in the first three months of card membership

Annual Fee:
$0

APR: 0% for 15 months on purchases , then 13.99%-23.99% Variable
See Rates and Fees

Why We Picked It: Cardholders can control available spending for authorized users.

Security Features: If you have multiple cards for authorized users on your account, you can set a spending limit for each card’s billing period. That way, your authorized user (or a conniving friend) can’t rack up a huge balance. American Express won’t hold you accountable for any unauthorized charges.

Drawbacks: If you don’t spend a lot at supermarkets or gas stations, you may want to look for another cash back card.

3. Citi ThankYou Preferred

Rewards: Two points per dollar spent on dining and entertainment, one point per dollar spent on everything else

Signup Bonus: 15,000 bonus points when you spend $1,000 in the first three months

Annual Fee: $0

APR: 0% for 15 months on purchases and balance transfers and then 15.24% – 25.24% (Variable) ongoing APR.

Why We Picked It: Citi has an impressive range of security features that help you fight fraud and identity theft. (Full Disclosure: Citibank advertises on Credit.com, but that results in no preferential editorial treatment.)

Security Features: If your credit card is lost or stolen, Citi will send you a new card for free and provide an emergency cash advance. To protect you online, Citi can issue temporary credit card numbers for secure online purchases. Finally, if you become the victim of identity theft, a Citi specialist will help you contact TransUnion to put a fraud alert on your credit reports and help you complete a police report. Cardholders aren’t held liable for any unauthorized purchase.

Drawbacks: If you use your credit card for “meat and potatoes” spending and rarely use it on a night out, this card won’t deliver as much value.

4. Bank Americard Credit Card

Rewards: None

Signup Bonus: None

Annual Fee: None

APR: 0% intro rate for 15 months, then variable 12.74% to 22.74%

Why We Picked It: Online shopping is safer with Bank of America’s ShopSafe service.

Security Features: With ShopSafe, you can receive temporary credit card numbers to safely shop online. If abnormal spending patterns are detected, Bank of America will block the card’s use and contact you to discuss potential fraudulent activity. You’ll never be held accountable for unauthorized transactions.

Drawbacks: This is a very basic card without any rewards to speak of.

Choosing a Card With Strong Security Features

Federal law states that you can’t be held accountable for more than $50 in unauthorized purchases if your card is stolen. But cardholders concerned with security should look for card issuers that offer zero liability for unauthorized charges.

To further protect yourself, consider cards that go above and beyond in the realm of security and protect you in areas where you may be particularly vulnerable.

If you frequently shop online, you may want a card that offers temporary credit card numbers for limited time use, which stops digital thieves from gaining access to your real card number. If you tend to misplace things and you’re scared of losing your card, you may want a card that lets you easily freeze all activity.

Of course, if your only credit card requirement is security, you should pick a card with the most enhanced protections. But if you also want a card that rewards spending with points or cash back, you’ll want to consider your spending habits and how a card can reward your purchasing behavior.

What Is Required to Get a Card With Security Protections?

Any legitimate credit card should have some security features. Cards with strong security could be available for consumers with credit ranging from poor to excellent. No matter what card you choose, you should know your credit score ahead of time to gauge your chances of approval. Before you apply, you can check two of your credit scores for free at Credit.com.

At publishing time, the Discover it, Blue Cash Everyday from American Express and Citi ThankYou Preferred credit cards are offered through Credit.com product pages, and Credit.com is compensated if our users apply and ultimately sign up for this card. However, this relationship does not result in any preferential editorial treatment. This content is not provided by the card issuer(s). Any opinions expressed are those of Credit.com alone, and have not been reviewed, approved or otherwise endorsed by the issuer(s).

Note: It’s important to remember that interest rates, fees and terms for credit cards, loans and other financial products frequently change. As a result, rates, fees and terms for credit cards, loans and other financial products cited in these articles may have changed since the date of publication. Please be sure to verify current rates, fees and terms with credit card issuers, banks or other financial institutions directly.

Image: kali9

Source: credit.com

College Students: Here are The Biggest Financial Mistakes You Need to Avoid

Slipping up while in college is basically a rite of passage. I made so many mistakes at Indiana University – many of which I would never admit publicly – that reminiscing on my college years comes with a heavy dose of embarrassment.

Thankfully, most mistakes made while at university are temporary. They may have short-term consequences, but drinking tickets and dorm infractions don’t tend to follow you into adult life. Financial mistakes, on the other hand, can be a little stickier.

College may seem like a safe little bubble, but money is still money. The cash you blow on parties and takeout doesn’t magically get reimbursed once you earn a diploma. Beyond that, the bad habits you develop during these crucial years can haunt you for decades to come. Trust me – I’ve been there.

Here are some of the biggest mistakes I made in college, and how you can avoid them.

Not Keeping a Budget

My forays into budgeting as a college student usually fizzled out. Like a New Year’s resolution, I’d make a firm commitment and then give up after a few weeks.

When I was a second-semester senior, I decided to finally buckle down and stick to a budget. Graduation was fast approaching and I knew I hadn’t been handling my money responsibly. It was time to get serious about budgeting before I entered the real world.

At first it was really hard. I wasn’t used to depriving myself, and seeing how much I was wasting on eating out and buying new clothes was a hard pill to swallow. It wasn’t until I started my first real job after college that I finally got the hang of budgeting – but it took a lot of trial and error.

If you’re interested in starting a budget, set up a Mint account and try tracking your expenses for a few weeks. Knowing where your money is going could be enough to change your behavior and establish better spending habits.

Not Making Loan Payments While in School

Did you know you can start paying off your student loans while you’re still in school? Yeah, I didn’t either.

When I was in college, I was certain I’d find a well-paying job after graduation. My loan balance was filed under the “worry about it later” category. It wasn’t until much later that I learned a hard truth – if I had paid just $50 a month, I could have saved hundreds in accrued interest.

Start paying back those loans as soon as possible, even if you can only afford ten bucks a month. You’ll still make a dent in the total balance, and the solid repayment habits you develop in college will pay dividends when life gets crazy after graduation.

Not Researching My Student Loans

I knew while applying to college that I’d have to subsidize my tuition with student loans. Before I made my decision, my parents told me to pick an affordable school where I wouldn’t need to borrow more money than I expected to earn in my first year out of school.

I wanted to be a journalist, and the average starting salary for a reporter was around $26,000 a year. I planned to take out $24,000 total, so I felt good borrowing slightly less than my future salary.

That was the only research I did into my student loans. I didn’t examine what my monthly payments would be or what it would be like to actually live on $30,000 a year while repaying my balance.

When I graduated, I got a job making $28,000 a year and was shocked when my first student loan payment came due. The minimum payment was $350 – or 20% of my take-home pay.  After rent, utilities, groceries, gas and loans, I had little left over to save for retirement, travel or spend on hobbies.

If you’re not sure how much money you’ve borrowed, it’s time to take a closer look. I had so many friends in college who had no idea how much they were taking out. A few years ago, my alma mater, Indiana University, started sending out annual letters to current students showing them how much they’d pay every month. The result? Borrowing dropped 16%.

Talk to your financial aid office about your loans and see if you can take out less next year. If you’re using loans for living expenses, consider getting a part-time job to cover those instead. The less you borrow now, the less you’ll have to repay down the line.

Succumbing to Peer Pressure

When I was in high school, I heard a lot of lectures about peer pressure. Teachers told us not to do things just because the “cool kids” were doing it. They’d tell us to avoid alcohol and drugs and stick to our own values.

Unfortunately, no one explained how your peers could pressure you to spend more money. I can recount dozens of instances where I didn’t want to go out for dinner or go shopping, but gave in because my friends were doing it.

It’s so tempting to live the good life in college, putting off the stress of adult life until after graduation, but it’s also important to learn how to say no and think about long-term consequences. You can always strike a balance between having fun and staying on top of your responsibilities.

Not Applying for More Scholarships

Students usually assume the only time to apply for scholarships is before they start college. The thing is, there are plenty of scholarships available for current students. While I applied for a couple scholarships during my time in school, I didn’t take the applications seriously.

I told myself applying for scholarships was a waste of time. “What’s the point,” I’d think. “I probably won’t get it.”

That line of thinking probably cost me thousands of dollars, and it wasn’t until I was repaying my loans that I realized how much money I’d left on the table. If it seems like a hassle to apply for a $500 scholarship, consider how long it would take you to earn that amount in the real world.

Avoiding Credit

One of the biggest mistakes a college student can do is not track their credit history. A credit report is like a financial grade that lenders, landlords and sometimes even employers use to gauge your creditworthiness. If you have a low credit score or no credit, you probably won’t qualify for an apartment by yourself and will need a cosigner.

Thankfully, I didn’t have to worry too much about my credit while I was in college. My parents made me an authorized user on their credit cards, so while I was attending class and partying on the weekends my credit history was slowly growing.

If you don’t have a credit card right now, and you think your parents could be in a position to help, ask your parents if you can become an authorized user on their card or ask them to cosign on a student credit card.

Using a credit card to improve your credit history is simple if you have great self control. Pay a couple small bills with your card every month and then pay the balance in full once the monthly statement posts. Doing so regularly can give you a huge leg up after graduation.

But do remember a credit limit is not “free money” and should be looked at as a tool for your financial health. A credit card only has benefits if you pay it off in full every month, carrying over debt could be problematic for your financial future.

This blog post does not constitute, and should not be considered a substitute for legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.
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Source: mint.intuit.com