Do you know if you have a good credit score? If you are looking to get a copy of your credit score, then chances are good you are looking for your FICO credit score, which is the credit score most frequently used by lenders. Unfortunately, the only place to get a copy of your FICO score is from MyFICO, or from a lender when you are applying for a loan (you can get it free if your application is declined).

MyFICO normally charges for your credit score unless you sign up for a free trial of their Score Watch®, which includes 2 FICO® Credit Scores, 2 Equifax Credit Reports, FICO® Score monitoring and alerts. The trial only lasts 10 days, and after that, you are required to pay for a minimum of 3 months of the service – which can get expensive if all you want is a one time score, and not a credit monitoring service. There are promo codes for MyFICO, but they are only available for a limited time, and there are often long periods when no coupon codes are available. We do our best to keep this article updated with current MyFICO promo codes.

Your Credit Score Visualized

If you don’t need a credit score from MyFICO, then you are definitely in luck. There are many other credit scores out there, and most of them use information from the three main credit bureaus – the same information used by FICO (though the algorithms differ slightly).  So if all you are looking for is a good idea of your credit score, then I recommend getting a free credit score from a different provider. In most cases, the score will be very close.

You can also get a free credit score from Credit Karma, which differs the VantageScore credit score, which is based on a different scale. Again, it isn’t the FICO credit score, but it can give you a good idea of any recent changes in your credit score, and give you an idea if you are making progress on improving your credit score.

myFICO Promo Codes

Customers can save up to 30% on myFICO products with current promo codes. Simply fill in the coupon code in step 2 of the user agreement in the “Promotional Code” section. Copy the coupon code exactly as you see it on this page and your savings should appear in the next step. (note: these coupons often run for a short time period, if they are expired contact us and we will try to find a more up to date promo code – also, you can try using a service such as Credit Karma or Credit Sesame, which both offer free credit scores with no credit card required and no strings attached).

Current myFICO coupon codes:

• 30% off all myFICO credit products use coupon code myFICOis9
• 20% off Suze Orman FICO Kit: use promo: SUZEFKP. (limited time offer!)
• 10 Day Free Trial of myFICO Score Watch®

About free credit reports and scores. You can get your free credit report from annualcreditreport.com, but that website does not offer free FICO credit scores. The only way to obtain a free FICO credit score is through a trial offer for a credit monitoring service or as part of another purchase.

About myFICO

myFICO is owned by the Fair Isaac Company, the creator of the FICO credit score, which is considered the industry standard for credit scores. myFICO offers several consumer credit products, such as your credit scores and reports, credit monitoring service, the Suze Orman FICO kit, and more. The most popular myFICO products are:

1. myFICO Standard. This is where it all begins – with the credit scores. myFICO Standard gives you a view of your credit scores, giving you a better idea of the interest rates you may pay if you are seeking a loan in the near future. It may be a good idea to check your credit score once a year, or before making a major purchase. You will also receive access to the FICO Score Simulator, which will help give you an idea of how your credit score will change if you repay a loan or take out another loan.
2. myFICO Score Watch®. myFICO Score Watch is a credit monitoring service that can help alert you to signs of identity theft or unwarranted changes in your credit reports or credit scores. This service allows you to check your credit score weekly or credit report daily.
3. Suze Orman’s FICO® Kit Platinum. This kit helps you better understand your credit score, gives you information to help scope out the best loans for your needs, and more.
4. FICO Quarterly Monitoring. myFICO offers a quarterly monitoring service for those who want to monitor their credit reports or scores, but don’t need a monthly update. This service is a good option for people looking to monitor their credit for signs of identity theft.

Checking your credit report and/or score regularly can help you monitor your progress and possibly detect signs of identity theft.

Related Articles:

1. Been Turned Down for Credit? You Could Get a Free Credit Score
2. Everyone Else Knows Your Credit Score
3. Why None of Your Credit Scores are the Same

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When we think of what hurts our credit scores, we often focus on missed payments and large amounts of debt. But you might be surprised to discover what else might be weighing on your credit. Remember that, even if you don’t think of it as a loan, or credit, other people that you owe money to can send unpaid accounts to collections, or even report you if you miss payments. Here are 6 things that might be dragging your credit down:

1. Unpaid Medical Bills

Are you hurting your credit score?

Medical costs can be very expensive. If you can’t pay them, though, it’s a bad idea to ignore them completely. Many medical facilities are willing to work out payment plans if you can’t pay all at once. You might have to pay some interest charges, but it is usually better than having your account sent to collections and reported to the credit bureaus.

2. Improperly Canceled Gym Membership

Sometimes, instead of going through the motions and paperwork of canceling a gym membership, it seems easier to just stop the payment from your end, by notifying the bank or the credit card if there is an automatic payment. If you are actively paying each month, and you stop making payments without canceling properly, some gyms will report you. If you don’t go through the motions and sign the cancellation paperwork, you could easily find yourself reported to the bureaus — it’s not worth hurting your credit score over a gym membership.

3. Forgotten Utility Payments

If you move, you might still owe on some of your utilities, but might not realize it. This actually happened to me. Something happened in between when we moved, and when we had our mail forwarded, and one of the last utility bills slipped through the cracks. I didn’t think about it, or even remember it — until the collection agency called more than a year after our move. My credit score took a temporary hit, and I paid the bill and it hasn’t troubled us since.

4. Unpaid Traffic Tickets

This shows up as debt owed the city or county, and it can show up on your credit report. Also note that overdue books at the library (and the subsequent unpaid fines) can also be seen in the same light. Make sure that you pay what you owe to government agencies, even if the agencies are in a different state.

5. In-Store Financing

It’s tempting to use in-store financing when you make a large electronics purchase or furniture purchase. However, it’s important to understand that your credit score doesn’t view all debt as equal. Store department cards are seen as worse than cards issued by major banks, and in-store financing is treated as barely a step above pay day loans. Your credit could be dinged by the use of in-store financing, and that could affect you later.

6. Skipped Rent

Some people think that if they don’t have a mortgage loan, they don’t have to worry about a missed rent payment showing up on the credit report. However, your landlord can report your payment history to the credit bureaus, and your delinquent payments can be sent to a collection agency. It’s always best to pay what you can, and make arrangements if you won’t be able to make payments.

All of these items may seem small, but if left unchecked, they can have a damaging affect on your credit score. This is why you should check your credit report at least once per year, if not more frequently, and always dispute any errors.

Photo credit: FybridPhotos.

Related Articles:

1. Improve Your Credit Score without Using Credit Cards
2. Difference Between Credit Score and Credit Report
3. Raise Your Credit Score in 7 Steps

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There is no doubt that your credit history is an important part of your financial life. It’s fairly common for consumers to understand that the three major credit bureaus — Equifax, TransUnion, and Experian — offer insight into how others view them. You can get a free credit report from each of these bureaus every year by going to www.annualcreditreport.com.

However, reports from these credit agencies aren’t the only files on your behavior. Indeed, there are other companies that collect information on your various consumer habits. These reports can be accessed by interested third parties, and might impact decisions made about you.

Do you know who is checking up on your past?

The FACT Act applies to other consumer reporting agencies, allows you access to several different consumer reports. You are entitled to one free credit report each year from the following:

• LexisNexis Full File Disclosure: This is a report that concentrates largely on public records and criminal background. It also collects information about homeowners insurance claims and auto insurance claims. You can go to personalreports.lexisnexis.com to find your free report. Under “Information About You” and “Full File Disclosure Reports” you will find an “Access your personal information” link that can take you to your free report.
• CoreLogic: CoreLogic is working on creating a new credit scoring model. In the meantime, though, the company offers its own consumer credit report. It includes public records, as well as loan information. You can get a copy of your report by calling 877-532-8778. The company also hopes to be added to the Annual Credit Report web site along with the three major bureaus sometime this year.
• Chex Systems and TeleCheck: These are reports that offer information about how you handle your checking account. Bounced checks and overdrawn accounts are reported in these files. These are two different companies reporting similar information. Banks that use these reports might deny you a checking account if it appears that you have too many infractions. Access your Chex Systems report at www.consumerdebit.com, and get your TeleCheck report at www.firstdata.com/telecheck. Both sites allow you to request your free report.
• Prescription Drug History: Did you know that your medication history is compiled in a consumer report? This history includes information from the last five years about your prescriptions, dosages, and the doctors that have prescribed them. Your drug history is collected mainly by two companies: Medpoint (888-206-0335) and Intelliscript (877-211-4816).

For most loans, it’s the credit report, and the credit score based on the report, that matters. However, there are some who might want to check your background using other reports. If someone asks tells you that he or she will be running a check, you can ask which report(s) will be used. That way, you have an idea of where the information is coming from.

In any case, it doesn’t hurt for you to pull your consumer behavior reports regularly. It’s free, and it might alert you to possible identity theft, as well inaccuracies that might exist in “official” records (you can dispute errors on your reports). Besides, checking your consumer files might help you understand how others are likely to view your behaviors.

Related Articles:

1. What Do You Do When One Credit Bureau Reports Your Credit History Incorrectly?
2. National Consumer Protection Week
3. Tired of FreeCreditReport.com? FTC Changes Free Credit Report Advertising Rules

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My wife and I bought a house last April, and while we were going through the house buying process, I was curious about the role my credit score would play in getting the mortgage and how it would be affected once we got the mortgage.

Of course, I know you need a good credit score to be approved for a mortgage, especially in the current economic climate. But I didn’t know if getting a mortgage would have a major impact on my credit score. I was surprised to see that my credit score wasn’t affected very much at all.

How much does a mortgage affect your credit score?

Will a mortgage affect your credit score?

I’ll show how my credit score was affected once I got the mortgage, and how it looks almost a year later. This is based on my personal experiences, and there are literally hundreds of factors which can go into your credit score, so your mileage may vary.

Before jumping in and showing the actual credit scores before and after our mortgage, I think it’s best to look at some of the factors which explain  how it works and what changed in my credit profile. Let’s start by looking at the big picture, then work our way down.

Understanding your credit score. This graphic is from the MyFICO website, and it shows how the factors are weighted for your credit score. So the makeup of your credit score before you apply for your mortgage will help shape how your credit score looks after you get your mortgage.

How is Your Credit Score Determined

Tracking my credit score. There are several ways you can track your credit score. Before we got our mortgage I started using a credit monitoring service out of curiosity – mostly I wanted to see how they work and what they track. I signed up and got a copy of my credit scores based on the three major credit bureaus (Equifax, Experian, and TransUnion). Many people say that you should get the FICO credit score directly from MyFICO, but a score based on the major credit bureaus was good enough or my purposes as it was for personal reasons only, not for a specific loan.

If you are looking for a free way to get your credit score (free as in, no credit card required, no trial period, etc.), then check out Credit Karma and/or Credit Sesame. These aren’t the FICO credit scores, but they are based on information from the major credit bureaus and are accurate enough for personal use.

Just applying for a mortgage, or any other loan, can affect your credit score. Applying for any line of credit, including a credit  card, car loan, or mortgage can cause a drop in your credit score. The change in your score depends on many factors, including the type of credit you apply for and how many lines of credit you apply for in a time period. A typical hard credit pull can lower your score by 2-5 points, which usually isn’t enough to make a major change in your credit score.

How a mortgage changed my credit score

The following credit scores are mine from various times last year. You can see how applying and being approved for a mortgage changed my credit score. The January credit scores were taken at the request of our landlord to prove we were credit worthy (we had a short term lease before buying a home). The April credit scores were taken when we applied for the mortgage, but before the mortgage closed (we closed about 2 weeks later). There were no other credit applications or credit pulls during that time. The December credit scores reflect our credit score after our mortgage had been active for 8 months, and after I had opened a new line of credit (a credit card with a $25,000 limit <<— no, I didn’t ask for that much, they just gave it to me. I would have been happy with a $5,000 limit!).

Jan 17, 2011 (before applying for a mortgage):

• Equifax – 803
• Experian – 801
• TransUnion – 798

Apr 1, 2011 (immediately after mortgage approval, but before closing):

• Equifax – 792
• Experian – 777
• TransUnion – 795

Dec 28, 2011 (8 months after mortgage became active):

• Equifax – 811
• Experian – 796
• TransUnion – 788

Takeaways from applying for a mortgage

Multiple credit applications may or may not hurt your credit score. It’s always a good idea to shop around for mortgage rates when you are buying a house, and the credit bureaus realize that people are going to shop around. So multiple mortgage inquiries in a 45-60 period may only count as one credit inquiry, and shouldn’t affect your credit score too much. But you might see a larger drop in your credit score if you are also applying for credit cards or car loans at the same time. It’s best to secure your mortgage before opening other lines of credit.

Multiple lines of credit in a short time frame may not hurt you. While you should always secure your mortgage before applying for new credit cards, car loans, or other loans, opening a credit card after your open a mortgage might not hurt you. In fact, the credit simulator at Credit Karma showed that opening a credit card with a $10,000 line of credit would actually improve my credit score, even though it would decrease my average age of credit and increase my credit limit. This seems to have been the case, as I opened a credit card in early December in my credit score has improved.

Your credit score might go down at first, but should rise after awhile. Getting a mortgage will most likely cause your credit score to drop – but that should be a temporary event as long as you make your mortgage and other loan payments on time. Your score should rise after you make payments on your mortgage for a few months. In some cases, your credit score may end up higher than before you got your mortgage. Again, it all depends on the specific factors affecting your credit score.

You might expect to see something like this:

• Expect your credit score to drop a few points when you apply for your mortgage
• Expect your credit score to drop a little more when your mortgage is approved
• Your credit score will stabilize
• Then your credit score should begin improving, provided you make all loan payments on time (all loan payments including your non-mortgage debt).

Your results may vary. As I mentioned earlier in this article, your results will depend on many factors, such as your credit history, payment history, total number of lines of credit, average age of credit, and other factors.

Related Articles:

1. What Credit Score Do You Need to Refinance a Mortgage?
2. Factors That Affect Mortgage Interest Rates
3. FICO 8 Mortgage Score Could Make it Harder to Get Approved

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It’s true that the fastest way to build credit is to use a credit card. However, many people prefer not to use credit cards. Even if you don’t want to use credit cards, though, your credit score is important. Mortgages and car loans require that you have good credit if you want the best rates.

You don't need a credit card to build credit

On top of that, there are a number of other financial service providers that want to know your credit score. Satellite and cable TV providers often ask to run your credit to determine whether or not you need to provide a security deposit. Insurers often check your credit to determine your premiums. While employers aren’t supposed to check your credit score, they can check your report.

You want your credit report to show your finances in the best light, and you want your credit score to reflect your good habits as well. But, if you don’t use credit cards, how can you build a credit history that speaks well of you?

Alternative Credit Reporting

The increased interest in building credit without credit cards, and proving good payment records without the need for high interest debt, has prompted the development of some alternative methods of credit reporting.

Even FICO, the company that created the credit score and is considered the foremost authority in such matters, has developed an alternative score, which it calls the Expansion Score. This score takes into account your bank account activity, as well as your utility payments, rent payments and your purchase plans. However, you have to request that companies report on this information, and you should be aware that negative information is, of course, recorded along with the positive information.

The credit agency PRBC uses the Expansion Score as part of its service to provide a consumer credit report that includes “non-traditional” information. You submit your information and pay a fee to have it verified, and those you make payments to report your history. On top of that, the major credit bureau Experian is adding rent payment history to its scoring model in some instances.

Other Strategies for Improving Your Credit Score

In addition to working with alternative credit bureaus and scoring methods, you can also take other steps to improve your credit — without a credit card. For the most part it’s fairly basic:

• Avoid missing payments: Even if you aren’t using an alternative credit bureau method of reporting, a missed payment on a non-credit account can be reported, and impact your credit score. Stay current on all your payments to avoid dings to your credit.
• Fix errors on your credit report: Since your credit score is based on the information in your credit report, wrong information can mean a lower score. Different credit scoring systems may use different information so you should review your credit report, and fix errors so that your financial history is accurately portrayed.
• Get an installment loan: A personal loan, auto loan or student loan can be used to help you build credit. Interest rates are usually lower than those on credit cards, and your on-time payments will help you build credit without the need for credit cards.

With some planning, and some creativity, it’s possible for you to show that you are financially responsible without the need for credit cards — as long as you can convince those you do business with to use alternative methods of reporting.

Photo credit: SqueakyMarmot

Related Articles:

1. Using Credit Cards to Rebuild Your Credit Score
2. How Do You Improve Your Credit Score When Credit Companies Close Your Account?
3. How to Improve Your Credit Score

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I hate debt.

It’s really that simple for me. I am uncomfortable with the idea of owing money, and so I generally avoid debt as much as possible, and I work to pay off any debt I have as quickly as possible. As of right now, the only debt I carry is my student loan and our mortgage, and I have been working my tail off trying to kill that student loan.

Should you pay off your student loans or invest?

But at the same time that I am sending the maximum that I can afford to my lender, I am also trying to beef up my retirement savings, since that has been on the back burner for several years. Debt feels more real to me than my retirement needs do, so I have been sending extra payments to my student loan while only giving the bare minimum (or less) to my retirement. The question is, have I been following a savvy money strategy or have I been shortchanging myself? I decided to find out.

How Much Will the Interest Cost You?

The first step in determining the best use of your money is to figure out exactly how much you will spend in interest with both your regular pay off schedule and with your accelerated schedule. Using the Crown Accelerated Debt Payoff Calculator, I discovered that it will take me 40 months to pay off the $13,169 remaining on my student loan if I send the minimum payment of $360 per month, and I will pay $1,022.10 in interest at my rate of 4.5%.

If I continue sending the $600 per month that I am currently allotting to my student loan payment, I will have the debt cleared in 23 months to the tune of $599.46 in interest. So far, so good. Apparently continuing with my quick-payoff plan will save me over $420 in interest and 17 months of payments.

How Much Will Your Money Otherwise Earn?

Of course, those calculations only tell half the story. I also need to determine just how much my retirement accounts will grow depending on how I choose to spend my money. Using the Savings/Investment Calculator on mycalculators.com, I found out the following:

If I pay off my loan in 23 months and send no extra money to my retirement accounts during that time, I will have $600 to send each month as soon as my loan is paid off. In that case, starting with $0 in my new retirement account and assuming that I earn a 5% return (which is a very conservative estimate) for the 17 months that I would otherwise still be paying my loan, I will come to the end of the 40 months with $9,931.24, $331.24 of which will be earned interest.

On the other hand, if I were to send the “excess” $240 to that same retirement account with a 5% return, I would end the 40-month period with $10,147.05, $787.05 of which will be earned interest.

At this point, it’s a little hard to tell what is the correct course of action. The amount that I earn in interest in each case is pretty close to the amount I’ll be paying in interest on the loan.

Other Factors

Again, that’s not the entire story. There are other factors at play:

Tax deductions: Up to $2500 worth of interest can be deducted per year. In either case, I will be paying much less than that amount in interest each year that I carry the loan, so I can take full advantage of the break.

Discipline: Some people need to have a specific agenda for every dollar or else it will be spent frivolously. I tend to be a “pay myself first” type—meaning that I send that $600 off each month and then figure out how to pay the rest of my bills. With just a slight tweak in my habits, I could easily start sending $240 off to my retirement account. For others, that nice round number of $600 might be too difficult to let go of.

Future income: As a freelancer, I’m not entirely sure how much I will make from one month to the next. If I knew for certain that my flush months were going to be the norm for the next several years, it might make more sense to pay off the loan early and count on a good income to help me make up the slack in retirement savings. Since I’m unsure of what to expect from month to month, it makes a more sense to send my lender the minimum, freeing up that extra money for retirement (or other needs, if necessary) until I can be sure of what my earnings will consistently be. After all, I don’t have to pay off my student loan early, as long as I am making payments.

Debt-to-Income ratio: This is part of how credit scores are determined, and carrying debt for longer than necessary can negatively affect your credit. Paying off that debt early can help to improve your score.

Emotion: No matter what the numbers may say, you may feel better paying off debt early. As long as you don’t use that as an excuse to neglect your savings or retirement, there is nothing wrong with doing what feels right.

My Choice

I have decided to reduce my student loan payment and send the rest to retirement. I have been ignoring my retirement needs for long enough that I feel it would be better for me psychologically to feel like I’m moving forward in that arena. And since the numbers put me slightly ahead by doing this, it was an easy decision.

Photo credit: the Italian voice

Related Articles:

1. When to Think Twice About Paying Down Your Debt
2. DIY Debt Consolidation Options
3. Is Dave Ramsey’s Debt Snowball the Best Way to Pay Off Debt?

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Consumers understand that the difference between being approved or denied for credit is often based on the magic three numbers that make up their credit score. What some consumers may not know is the fact that there is more than one credit score available for lenders to review.

Most people are familiar with the FICO credit score which was first introduced in the mid 80′s by a company that was known at the time as Fair Isaac. The FICO credit scoring system was designed to make it easier for lenders to assess the risk of individuals applying for credit. The FICO credit score is calculated using a credit-scoring formula that includes payment history, level of debt, age of credit history, types of credit and credit inquiries. While many lenders check the FICO score, they also have the option to check another credit score, one that may not be as familiar to consumers.

What is the VantageScore Credit Score?

The VantageScore Credit Score was launched by the three major credit reporting bureaus in 2006 and while it is not as widely recognized by consumers, it is a score that should not be ignored. The VantageScore model was designed to offer a more consistent score than those presented by each individual credit bureau. In doing so, lenders can often get a much clearer picture as to how applicants have managed credit in the past and what level of risk they pose in the future.

VantageScore Visualized:

Source: VatangeScore.com

As you can see from this chart, the VantageScore is made up of:

• 32%: Payment History. Repayment behavior (satisfactory, delinquency, derogatory)
• 23%: Utilization. Percentage of credit amount used/owed on accounts
• 15% Balances. Amount of recently reported balances (current and delinquent)
• 13%: Depth of Credit. Length of credit history and types of credit
• 10%: Recent Credit. Number of recently opened credit accounts and credit inquiries
• 7%: Available Credit. Amount of credit available

VantageScore Credit Score Scale and Other differences

The VantageScore credit score is calculated in a similar fashion to that of the FICO credit score, however there are a few distinct differences. Where the FICO score is determined using five categories, the VantageScore credit score uses six. They include; payment history, utilization, balances, depth of credit, recent credit and available credit.

Another difference between the two is the weighting given to each category. Payment history and new credit inquiries have roughly the same amount of influence when calculating each score. There is a big difference however in how each formula treats types of credit, credit history and credit utilization. The VantageScore formula places more weight on your credit utilization- 15 percent more than FICO. Conversely, credit history and types of credit carry less weight in the VantageScore formula (13%) versus that of FICO (25%).

In addition to the differences in calculating your credit score, VantageScore credit score and FICO credit score have a different grading system. The FICO credit score range is between 350 and 850, while the VantageScore credit score ranges from 501-990 with letter grades assigned based on where your number falls within the range. For example a score between 901 and 990 would be an A, while 501-600 gets a F. When looking at either score, lenders consider the higher the number, the lower the risk.

It is important for consumers to be familiar with both credit scores to understand where they stand with lenders. As to which score is better, that depends on which side of the application you are sitting and your credit itself. The VantageScore credit score is believed to be very efficient at predicting risk, therefore lenders might benefit more by using this score. In any event, consumers should take their credit score seriously and take every available action to improve their credit- regardless of which score is viewed.

Get your VantageScore for Free

Anyone can get his or her credit report free from each of the credit bureaus once per year by visiting AnnualCreditReport.com, but the credit bureaus are not required to give a free copy of the credit score. There are many companies which offer a free credit score, though some of these offers require signing up for a free trial to a credit monitoring service. If you want to know your credit score, but don’t want to give a company your credit card or sign up for a free trial that turns into a paid service, then I recommend checking out one of the following companies which require you to sign up for an account, but don’t charge you anything to use their service:

• Credit Sesame
• Credit Karma

Related Articles:

1. Why None of Your Credit Scores are the Same
2. Been Turned Down for Credit? You Could Get a Free Credit Score
3. How is Your Credit Score Determined?

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Many people debate whether or not college students should get credit cards. I don’t believe every student should get a credit card, but I believe that they should consider one if they can use it responsibly. I opened my first credit card while I was in college and used it to help build a strong credit score. I believe that when used properly, credit cards are a great tool and can help teach financial responsibility. However, when not used properly, credit cards can become a financial burden. That is why I put together this list of tips to help students learn how to properly use credit cards and begin building a solid foundation for their credit score.

Why College Students Should Consider Opening a Credit Card

Credit cards have many benefits, such as helping you build your credit score, extended warranties on purchases made with your credit card, cash rewards, integration with budgeting tools, ability to dispute charges, limits on liability against fraudulent activities on your card, and other consumer protections. Credit cards can also be used as an emergency source of funds – which is much better than being stranded or getting a payday loan from the local loan shark.

Opening a credit card may be a good idea if:

• You have the ability and conviction to pay the balance in full each month.
• You have the discipline to use it only for specific purchases (shop with a plan, not because you can).
• You need a safe source of emergency funds.
• You want to build a strong credit score through responsible credit card use.

Who should not get a college credit card

Credit cards aren’t for everyone. If you don’t have money in the bank or a source of income, then stay away! Here are some other reasons not to get a student credit card:

• Because you want to live the “high life.”
• Because you get a free t-shirt or other giveaway.
• If you have a shopping addiction or are a compulsive spender or gambler.
• If you don’t plan on paying the balance in full every month.

Tips for using college credit cards

The following tips will help students use credit cards wisely and begin creating a strong credit history.

• Begin with a low limit such as $500.
• Set limitations on what the card can be used for (books and lab fees, yes; pizza & beer, no).
• Only buy items you can pay cash for.
• Never carry a balance.
• Understand the fine print – fees, interest rates, etc.
• Additional tips to avoid credit card fees.

Best College Credit Cards

The best college credit cards don’t have any annual fees, and may offer a rewards program such as points or cash back, or come with a 0% introductory offer or 0% balance transfer offer. The following college credit cards from Citi and Discover are among the best credit card options available to students. Click on the links for more details, and remember, only apply for a credit card if you will use it responsibly.

Top College Credit Card: Discover® Student Card.

The Discover® Student Card has no annual fees, 0% interest on purchases for 9 months, and a generous rewards program – up to a 5% Cashback Bonus® in categories that change like gas, groceries, restaurants, department stores and more. Limitations apply* You can also earn up to 1% for general purchases. The Discover® Student Card offers multiple design choices and features the standard fraud protection benefits found on all Discover credit cards. Apply for the Discover Student Card.

Runner-up: Citi Forward® Card for College Students

The Citi Forward® Card for College Students rewards students for responsible credit card use by offering incentives such as lowering the interest rates and giving rewards points. The Citi Forward® Card for College Students features a 0% intro APR for 7 months on purchases. Unique benefits include:

• No Cosigner required
• APR reduction on purchases when using credit wisely
• 100 ThankYou Points each billing period that you pay on time and stay under your credit line
• Earn 1,000 points after you sign up for paperless statements within the first 3 months of account opening.
• Apply for Citi Forward® Card for College Students.

Remember, credit cards are like any other tool – in the right hands they serve a great purpose. In the wrong hands they can bring disaster!

Related Articles:

1. Best Student Credit Cards
2. Why College Students Should Get a Credit Card NOW
3. 4 Money Moves for Your Freshman Year in College

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