5 College Credit Card Gimmicks

5 College Credit Card Gimmicks
In case you are going to college, you're probably considering credit cards for college students. Despite popular belief, credit cards usually are not evil incarnate. Actually, building up a credit history while you're still in college can serve you well when you submit a rental application, take out a car loan, or obtain car insurance. But issuers know that you're probably unskilled in choosing a credit card, so be on the lookout for gimmicks, tricks and slick marketing.

1. No co-signer required
Many college student credit cards promote that they do not require a co-signer. Actually, they're the same as almost every other credit card. If you have an income of your own (usually, you do not earn enough as a full-time student to qualify), you do not need a co-signer on any credit card. On the other hand, if you don't have an income, you'll need a co-signer no matter what. Per the Credit CARD Act of 2009, your credit card application will be considered using the earnings of the people liable for the debt. Without having any money, sorry, you'll need a parent on the card along with you.

2. Good GPA discounts
A few rewards cards will give additional points for those who have good grades. Mind you, extra rewards are extra rewards, though the marketing continues to be a bit misleading. For instance, one credit card promises up to 2,000 points twice a year for getting good grades. Even so, you get the entire 2,000 points only when you have a 4.0. If you're human, just like the rest of us, probably the most you can get is 750 points having a GPA between 3.5 and 3.99. The card advertises $20 in rewards, but if you have a 3.9, you'll just get $7.50.

3. Shiny rewards programs
Credit card issuers would like you to get rewards credit cards. Really. Even though it looks like they're giving away money, they'd actually much prefer that you go with a rewards card over one with a low APR. That's because they already know even though you know you should not carry a balance on a rewards card, you most likely will. Don't be drawn in. If you figure that you will have credit card debt, go with a low interest credit card. Although they're not as enticing as pretty rewards programs, you'll spend less in the long run.

4. Prepaid debit cards
Numerous credit card issuers also offer prepaid debit cards as an alternative to personal lines of credit. They'll bill these as a smart way for college students to learn financial responsibility and money management, since you can't spend more money than what's on the card. What they don't tell you, however, is the fact that prepaid debit cards frequently come packed with hidden fees and charges. These may vary from monthly maintenance fees to a charge each and every time you make a transaction, make an ATM withdrawal or look at balance. In case you are intending prepaid, read the fee schedule carefully. Generally, though, you're better off with a regular old checking account with no fees.

5. If you're considering a credit card...
Be extremely careful. Look into the terms and conditions, particularly the facts about the rewards programs. You might see limits on the quantity of benefits you can earn a year, or high rewards rates that only activate once you have spent a certain amount. Understand your spending behavior. Are you going to carry a balance? Then select a low APR card. Can you handle credit in any way? Be honest with yourself: should your parent is co-signing the card, any missed payments by you will pull your parent's credit score down as well. Like most parts of college, credit cards signify newfound independence but additionally significant responsibility.

PROTECT YOUR KIDS FROM IDENTITY THIEVES

You are probably worn out being advised to take precautions against id theft, but here is a wrinkle may very well not have thought about: Identity thieves have widened their reach by harvesting children's dormant Social Security numbers (SSNs) and utilizing these to illegally obtain jobs, credit accounts, mortgages or auto loans, and a lot worse.
Many affected individuals have no inkling anything at all is wrong until they later apply for a student loan, banking account, job or apartment and are turned down because of bad credit history. Some households have even been hounded by collection agencies or served with arrest warrants because the debts or criminal actions thieves executed were so overwhelming. There is no completely foolproof method to protect your child's identity, but here are some safeguards you can take:




Although it's tempting to simply not register your children for SSNs until they turn 18, that isn't practical in today's world. For one thing, children need one if you want to claim them as dependents for your taxes. Additionally they might need one if you want to obtain medical coverage or government services on their behalf or open banking accounts or savings bonds in their name.




Most parents register their kids for SSNs concurrently when they make an application for birth certificates at the hospital. In the event you wait until later to apply, you must provide evidence of your son or daughter's U.S. citizenship, age and identity, in addition to evidence of your own identity.







Because each person's SSN is unique, it is not uncommon for schools, healthcare providers, and insurance providers, among others, to call for parents to provide one as an identification tool. However, do not be afraid to ask:




-- Why do they need an SSN? What is the legal requirement and if so, what is it?
-- Will they accept alternative identification?
-- What will happen if you don't disclose it?
-- What security precautions do they take with personal information?
-- Will they agree not to use the SSN as your child's personal identification number on correspondence, account statements or ID cards?




Warning signs your child's personal data could have been jeopardized include:
-- Preapproved credit account offers.
-- Calls from collection agencies, creditors or government agencies.
-- You're denied opening a bank account in their name because one already exists with the same SSN.
-- They are denied credit, employment, a driver's license or college enrollment for unknown or credit-related reasons.
There may be legit reasons why your child is receiving credit offers. For example, if you opened a college fund or they signed up for a frequent flyer program.
However, if you strongly suspect an identity theft has been committed, you can:
-- File a police report and keep a copy as proof of the crime.



-- Contact the fraud units at the three major credit bureaus for instructions: Equifax (800-525-6285), Experian (888-397-3742) and TransUnion (800-680-7289).



-- Notify the Federal Trade Commission (877-438-4338). Their Identity Theft site at www.ftc.gov contains information on fraud alerts, credit freezes, working with police and much more.



-- Ask Social Security (800-772-1213) whether anyone has reported income using your child's SSN. Search "Identity Theft" at www.ssa.gov for information.



-- Contact the IRS' Identity Protection Unit (800-980-4490).



Bottom line: Use the same precautions with your child's personal information as you do with your own and make sure you know the warning signs and what to do if it's compromised.

Riskiest Place to Use your Credit Card

RISKIEST PLACES TO USE YOUR CREDIT CARD 
Even if you use the utmost caution, you can still be a victim of credit card scams. Credit card providers and banks are more and more often placing the burden of finding and catching bogus or incorrect credit card charges on the consumer.

The most important thing is to look at your billing statement, needless to say. And there are organizations like Creditcards.com that provide tips on how to maintain your cards safe too. Here, we take a look at 10 of the riskiest spots you might use your card, according to Creditcards.com , and what you can do in order to avoid the hazards.

NON-BANK-OWNED ATMS 

Security at these types of ATMs is often less high-quality than at bank ATMs, meaning some locations are just not as safe. These ATMs also are more likely to be hacked. And perhaps, people have placed devices that look like ATMs but don't give out cash. Instead, these are just card-skimming devices geared towards robbing your credit card or debit card information.

Flea Markets 
Flea market merchants are sometimes transient and can be difficult to locate if there is a problem with charges. It's especially true for sellers who don't have online credit card terminals and instead make carbon duplicates of your credit card.

That doesn't mean those vendors are necessarily fraudulent, but it definitely makes the transaction less secure. The credit card company will often have trouble performing a charge back. If you are going to the flea market, take cash. It is also much easier to negotiate that way.

Small Shops/Cafes in Foreign Countries

These smaller merchants have a significantly greater percentage of credit card fraud reported by large banks and credit card companies. Many of these transactions end up being written off by the banks since the merchants simply cannot be located. There's just a higher potential for fraud when you are getting outside of the mainstream, so when unsure, use cash.

Non-Secure Online Checkout

Common sense. Any safe, reputable e-commerce website is going to have a secure checkout page, such as the one shown .  In the URL, it must show an HTTPS, with the S standing for Secure. In the event that doesn't appear, it ought to be a warning sign. You can almost be sure it's not legitimate, and even if it is, you're opening yourself to that financial transaction being seen by others.

Wi-Fi Hotspots and Public Computers

In case you are gonna be making online transactions over an unsecured wi-fi network like in cafes, parks as well as other hot spots, data may be compromised or seen while in transit, even if you're on a secure page while you are checking out. The same goes for public computers like in libraries. It's not advisable to at any time transmit private data when you are in a public connection environment, particularly on non-secure wireless.

Recurring Bills/Subscriptions

Instead of using automated billing, ask to be billed on a one-time bill by bill basis instead. If you use your credit card for purchases that involve weekly, monthly or annual billings, it is possible to encounter the frustration of over-billings, continued billing  once a subscription is finished, etc. Some less-than honest merchants will use automatic billing  in hopes you'll forget about it and won't check your credit card statement.

Purchases on Smart Phones

Purchases on smart phones can also be less than secure. If your smart phone connects to a public wi-fi signal, you are much less secure. Someone else could very well see the financial transaction, or malware (SPYWARE) can be placed on your device that could potentially broadcast your financial information.

Unsolicited E-mail Offers

Unless you've signed up for solicitations from particular companies, be wary. Check the URL in the e-mail. If it looks suspect, don't visit it. You can always contact the company through their official Web site to confirm the legitimacy of the offer.

Strange and Foreign Domain Extensions

If you are likely to be shopping on the web, it's best to stick with websites which use a .com file format. And be sure there is a secure checkout. With extensions for countries away from U.S. - like .ru for Russia - use caution and make sure the company you're purchasing from is actually located in the country depicted in the domain extension.

Suspect Swipe Terminals

If there's something that looks suspicious at an ATM or perhaps a gas pump credit card swipe terminal - like a separate stand-alone device for you to swipe your card through - or something appears like it's been added onto the terminal, reconsider using it. More often than not, those types of add-ons are put there by thieves to allow them to take your credit card data.

the top 10 states for credit

Selecting the top 10 states for credit

How did the study identify the best 10 states for credit health? The list considered the following five variables:

• Average credit score (Experian, June 2011)
• Foreclosure rates (RealtyTrac, May 2011)
• Credit card delinquency rates (TransUnion, Q1 2011)
• Unemployment rates (Bureau of Labor Statistics, May 2011)
• Bankruptcy rates (American Bankruptcy Institute, Q1 2011)

States were ranked from top to bottom in each group. The rankings across all five groups were then totaled, and the top 10 states for credit were determined based on those totals.

The 10 states with the best credit overall health

It can be something about the cold weather that makes folks economically conservative, or maybe it is because much of the northern plains and Rockies didn't have the boom-and-bust cycle that continues to trouble many warm-weather locations. Whatever the reason, there is a heavy weighting toward cold-weather states in the top ten states for credit. Here's the list of the top 10, with a description of what stood out about credit conditions in each state.

1. North Dakota. North Dakota turned out on top in this survey by having the best rates of joblessness and credit card delinquency of any state within the U.S., and also by being one of the better five states in all categories used for this study.

2. Vermont. This Northeastern state has the lowest rate of home real estate foreclosures, by a very wide margin. While nationwide one of every 2,370 homes is in foreclosure, there is just one foreclosure for each 39,281 homes in Vermont. Like North Dakota, Vermont was one of the five best states in all five categories examined.

3. South Dakota. The home of Mount Rushmore was just topped by Vermont, but rates within the top six in every five groups, including having the second-best average credit history in the United States.

4. Nebraska. After North Dakota, Nebraska has the second-lowest unemployment rate of any state, and rates among the list of 10 best states for average credit score, foreclosure rates and credit card delinquency rates. However, it falls behind a bit with regards to bankruptcy rates, where it ranks around the middle of the pack.

5. Montana. Montana made this list on the strength of being one of the best ten states for credit scores and low credit-based card delinquencies, and was clearly above-average in all of the five categories

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6. Wyoming. Wyoming was among the best 10 states in four out of five areas, missing only when it comes to average credit score. Wyoming's average credit score of 703 merely few points greater than the nation's average of 696.

7. Iowa. Iowa ranked among the 10 best states for credit scores, lower credit card delinquencies, and low joblessness, but fell down to some degree when it came to foreclosure rates. Iowa's rate of one foreclosure for every 878  homes is worse compared to national average, and worse than the foreclosure rates of 28 other states.

8. Pennsylvania. An excellent overall contender, Pennsylvania didn't rule a single type, but made the list because they are continually pretty good overall. Pennsylvania wasn't in the top 10 in any group, but was above average in all five categories.

9. Alaska. Toward the end of the top 10, scores became more of a mixed bag, with good ratings in some groups, but a low enough score in one or more category to pull a state's ranking down. For example, Alaska had the lowest bankruptcy rate in the nation, and the second-lowest rate of credit card delinquencies. Despite that, it was let down by having a below average credit score.

10. Minnesota. Like Alaska, Minnesota had excellent rankings in some categories that were pulled down by below-average performance in one aspect of credit conditions. Minnesotans have the highest average credit scores of any state in the nation, but the state is a bit worse than average when it comes to foreclosure rates.