Saving Money for College

Looking for a Credit Card for Christmas Shopping? Before you submit a credit card application, first review the main points which will help you choose the right credit card for your needs.

What Charges You'll Make - If you're going to use the credit card mainly for booking airline reservations and hotels, it might be best for you to get a travel credit card that offers sky miles and hotel points or cashback. If this will be an emergency credit card only, then your main concern may be for a low interest rate credit card with low fees.

When You'll Repay Charges - Will you pay off credit card charges in full every month, or will you carry a balance month to month? If you're going to carry a balance, you want the lowest possible interest rate as well as a low introductory rate. But if you'll payoff balances in full every month, then interest rate really doesn't matter so no annual fee and/or a long grace period would be a bigger concern. If you're going to carry a balance, be concerned about how the finance charge is calculated. The most common method is the Average Daily Balance, which means that the daily balances are added together and then divided by the number of days in the billing cycle. Stay away from credit cards that compute the balance using two billing cycles, as this method costs more money in financing fees.

What Amount You'll Charge - If you're going to use the credit card for all your monthly expenses, then you need a card that has a high credit limit and a high cashback percentage.

More info about Interest Rates, Credit Limits, Incentives, Fees and Penalties

Interest Rates - The interest rate (Annual Percentage Rate) APR can either be a fixed rate or a variable rate that is tied to another financial indicator, most commonly the prime rate. With a fixed rate credit card you know what the interest rate will be every month, whereas a card with a variable rate can fluctuate. Of course, even the interest of a fixed rate card can change based on certain events, such as paying your credit card bill late, exceeding your limit, or simply because the credit card issuer decides to change it after providing you ample advance notice.

Credit Limit - This is the amount of money the credit card company will let you charge to the card. This amount varies depending upon the card offer and your credit history. Be sure to get a credit card with an ample limit, because getting close to your max can hurt your credit score. Just remember that you don't have to max out your limit just because it's available.

Incentives - To compete for and to gain customers, many credit card companies offer rewards. Even if you normally use cash, why not use your credit card and then use the cash to make the payment during the grace period? You still won't pay interest and meanwhile you'll rack-up rewards. A credit card with 5% cashback will earn you $5 for every $100 charged. If your total bills come to $2,000 per month, you'll earn a free $100 every month. Look for a rewards program that you'll use and which offers flexibility, such as cashback or travel.

Fees and Penalties - Compare common charges such as late fees, overlimit fees, balance transfers, cash advances, and for making payments by telephone. Regarding balance transfers, look for credit card offers with no transaction fees and zero percent interest for at least 12 months.

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Saving Money for College

By Credit Federal | Published 12/19/2008

Saving Money for College without Stealing Money from Retirement Funds

If you own your home and have extra income - like rental income for example, saving for college can be easy. You simply decide how much save every month and deposit it in a savings account. Another option is to invest money. But having money allocated for college is only half the battle - what about college bills and what if you have two kids in college at the same time? What if there is little hope for Scholorships or grants for your kids? If $200,000 had been set aside - it would evaporate like dew in a hurry.

Set aside the concerns about college and consider Your Retirement - is it secure and would you want to sacrifice any of it to pay college - probably not. What about college loans - do you really want to take out huge loans for college? That may leave the option of financial aid - and do you make too much to qualify?

First, scout out the college options - which college will your child attend and what is the cost of four years? How much will you need to save out of your cash flow each month to meet the cost?

Once a "Free Application for Federal Student Aid" or FAFSA is filed an EFC or "expected family contribution" is necessary. This is a calculation used by the U.S. Department of Education to determine how much you can pay for college and it is used by colleges to determine the kind of financial aid package necessary. It may help from a financial-aid perspective to have as many family assets in the parents' names as possible.

Consider a 529 plan in which investors deposit "after-tax income" into an account in which distributions aren't subjected to federal income tax as long as the money is used to pay for college. When your kids get money it can be put in the 529 Plan too.

Never think it to late to save for college. The biggest obstacle is to review where you have unnecessary cash expenses or income that could be used toward college and begin early to save for college. Make sure you have already decided on how much money you need for the college you choose for at least four years and work toward that goal. Of course knowing the type of career your child will be seeking will help in choosing a college. Keep your retirement on track as well! Consider paying your children money to get things done. They in turn can give their money to you to deposit into your IRA to keep it away from financial aid calculations.

Start early to save for college, start appling for financial aid when kids are juniors or sophomore, look for scholarships, talk to school counselors, and pursue all resources available.

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Saving Money for College - by <a href=http://creditfederal.com>CreditFederal.com</a> <div style="text-align: left; font-family: Verdana;">Saving Money for College without Stealing Money from Retirement Funds If you own your home and have extra income - like rental income for example, saving for college can be easy. You simply decide how much save every month and deposit it in a savings account. Another option is to invest money. But having money allocated for college is only half the battle - what about college bills and what if you have two kids in college at the same time? What if there is little hope for Scholorships or grants for your kids? If $200,000 had been set aside - it would evaporate like dew in a hurry. Set aside the concerns about college and consider Your Retirement - is it secure and would you want to sacrifice any of it to pay college - probably not. What about college loans - do you really want to take out huge loans for college? That may leave the option of financial aid - and do you make too much to qualify? First, scout out the college options - which college will your child attend and what is the cost of four years? How much will you need to save out of your cash flow each month to meet the cost? Once a "Free Application for Federal Student Aid" or FAFSA is filed an EFC or "expected family contribution" is necessary. This is a calculation used by the U.S. Department of Education to determine how much you can pay for college and it is used by colleges to determine the kind of financial aid package necessary. It may help from a financial-aid perspective to have as many family assets in the parents' names as possible. Consider a 529 plan in which investors deposit "after-tax income" into an account in which distributions aren't subjected to federal income tax as long as the money is used to pay for college. When your kids get money it can be put in the 529 Plan too. Never think it to late to save for college. The biggest obstacle is to review where you have unnecessary cash expenses or income that could be used toward college and begin early to save for college. Make sure you have already decided on how much money you need for the college you choose for at least four years and work toward that goal. Of course knowing the type of career your child will be seeking will help in choosing a college. Keep your retirement on track as well! Consider paying your children money to get things done. They in turn can give their money to you to deposit into your IRA to keep it away from financial aid calculations. Start early to save for college, start appling for financial aid when kids are juniors or sophomore, look for scholarships, talk to school counselors, and pursue all resources available. </div> This article provided courtesy of <a href=http://creditfederal.com target=_new>www.CreditFederal.com</a>, a personal credit resource of good or bad credit credit cards and loans.

Credit Tip: Need a high limit for Christmas credit card charges? If you have bad credit, consider a personal loan by refinancing your mortgage. Even if you have cash to buy Christmas presents, we recommend using a prepaid card to make purchases because it's safer than carrying cash.