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Earn Extra Income

Top Ways College Students Can Earn Extra Money

Good students spend the extra time to get better grades. Sometimes that means late nights, missing out on fun, and stressful days. But getting good grades can also mean more cash in your pocket. You can often get approved for more financial aid if you have good grades in college, and you may even get scholarships. However, scholarships are not the only way to get paid for good grades. Here are a few more ways to benefit from good grades.

 

Save Hundreds by Skipping College Classes

You can begin earning extra money as early as middle school. If you are a relatively good student and you choose the more difficult classes, you might get an advanced placement in high school. This will allow you to skip some lower level college courses which could save you hundreds. If you skip enough classes, you might even be eligible to graduate early, saving thousands and starting your career early.

 

Get Cash Back on Your Student Loan

If you decide to borrow student loans, consider this: good grades can mean cash. Some student loan servicers offer incentive programs that will give you cash back based on regular payments or auto draft payments. But others will offer cash back simply based on the grades that you earn. Consider the Good Grades program from Discover Student Loans that offers 1% cash back on each new student loan if your GPA is a 3.0 (or equivalent) or higher.

Get Rewarded with Cheaper Insurance

As you begin paying your own bills, you might be surprised to find out that your good grades can earn you cheaper car insurance and even cash back on your credit card. Insurers like Allstate, Nationwide Geico and State Farm, offer discounts up to 25% off your monthly bill. If you pay $100 a month for car insurance, that could mean a savings of up to $300 dollars a year! Add that to the cash back your good grades could earn you via your credit card, and you will have extra cash to grow an emergency fund or save for a short getaway.

 

Get Rewarded with Credit Card Cash Back

The Discover card gives cash back for good grades. Discover card recently launched its Good Grades Reward Program, which exclusively rewards new student cardmembers who apply after July 23, 2015 with $20 in Cashback Bonus® if their grade point average is 3.0 (or equivalent) or higher each year they are enrolled in school, for the first five years from the account opening.

 

The Good Grades $20 Cashback Bonus is in addition to the current rewards structures for the two student credit cards Discover has available:

 

Discover it® chrome for Students offers an automatic 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases quarterly.

 discover it chrome

Discover it® for Students offers 5% cash back in categories that change each quarter, up to the quarterly maximum in combined purchases, when you sign up.

discover it

Both cards earn 1% cash back on all other purchases.

 

Now you have no reason to complain that college only drains your bank account. With these programs you can easily earn extra money as a college student. Making the choice to study on the weekends instead of party? Well, that’s a totally different story.

Originally posted 2015-09-16 10:00:00.

Categories
Budgeting & Saving

Get a Free FICO® Credit Score and How to Track Your Credit

The FICO® Credit Score is a credit rating that forms a major part of the information used by lenders in assessing the risks involved in a loan application. This score is used to decide whether to extend a loan or grant credit. FICO® is an acronym for the company that created it, the Fair Isaac Corporation.

The Key Factors to Your FICO® Score

The FICO® Score is computed using various key factors from information available in your credit reports. The components are divided into 5 groups, and each account for a percentage of your overall score:

  • Payment History – 35%.
  • Debts or Amounts Owed –30%.
  • The Age of your Credit History –15%.
  • New credits or inquiries –10%.
  • Types of credit/combination of accounts –10%.

The exact percentages and weights are proprietary to the scoring model; refer to these as approximate weights only.

How Lenders Use Your FICO® Score

The FICO® Score scoring system converts your entire credit history into a three-digit number: lenders use this number to determine your “creditworthiness.” This three-digit number influences the conditions and amounts – if any – that will be offered to you in a credit application. It is used to predict your future behavior; how you will pay, if you will pay, etc.

For lenders, this kind of information is very important. It helps them evaluate how likely a person is to pay his/her bills on time, forecast the accounts which are likely to default, and identify the profitable accounts, among others. In addition, insurance companies often use credit scoring in their business processes to help them to determine which customers are likely to file claims.

In general, payment history and existing loans influence your FICO® Score the most. People who have paid their loans past the due date and are using all of the credit available to them often receive poor credit scores. On the other hand, a missed payment once 5 years ago is unlikely to affect your score greatly. Minor issues, particularly if they happened a few years back, cannot ruin your score.

Where to Get a Free FICO® Score

The credit bureaus that collect and process credit scores; Experian, TransUnion, and Equifax, are not required by the law to provide scores to individuals. For this reason, you might conclude that the only way to get your FICO® Score is to pay for it. Fortunately, there are ways to get your FICO® Score or an approximation of it absolutely free.

You can get your approximate FICO® Score by registering for a free service like Credit Sesame or Credit Karma. The score that you see is typically based on the same key factors but it is not a FICO® Score, only an approximation.

Certain credit card issuers offer a FICO® Score for free to customers. For example, as a Discover cardmember you can view up to a year’s history of your FICO® Credit Scores and receive key factors from your credit history impacting the scores – available online and on statements. Discover was the first major credit card issuer to proactively provide free FICO® Scores on cardmembers’ monthly statements. And now with the FICO® Credit Score tracking, you can understand the why behind your personal FICO® Score.

Get a Free FICO® Credit Score and Track Your Credit

Get a Free FICO® Credit Score and Track Your Credit

Have you checked your credit score recently?

 

This post was created as a part of the Discover partnership program.

Originally posted 2015-08-24 10:00:52.

Categories
Young Finances

Parents! Know This Before Borrowing Students Loans for Your Child

It’s almost time for the back to school discussions and families are gearing up to chat about one of the most important topics, money. As students get ready to enter college for the first time, the cost of tuition, books, and room and board is a concern for many parents and students. As a parent of a new college student, here are the top 4 things you should know about paying for college.

1. Discover the Options Available

When I graduated high school I had no idea what career I wanted to pursue, but I knew that I wanted to go to college. My parents agreed. According to a recent study by Discover Student Loans 81% of adults with college age children feel that college is very important to their children’s future. The concrete data supports this emotion. The overall employment rate for those with a college education (72.5%) is higher than for those with only a high school diploma (54.6%). (Source)

Researching the available options is the first step to helping your child fund a college education. According to the Discover Student Loans survey, only 9% of parents say they can afford all of their child’s education. To cover the costs, you may need to look into financial aid and other borrowing options.

2. Understand Co-Sign versus Parent Loan

While it may be tempting to borrow the full cost of your child’s college education on your own, it’s important to understand the difference between co-signing a loan and borrowing a federal Parent PLUS loan.

An option from financial aid is a federal Parent PLUS loan. However, many people don’t realize there are limits to federal student loans. The limit to what you can borrow is determined by the school and factors in any other financial aid your child may receive.

To help your child with expenses, you can also co-sign a private student loan for your child. When you co-sign a loan, you agree to joint liability for the loan. While your child will be responsible for payments, you are guaranteeing that those payments will continue. Be sure that you are ready to take on full responsibility for the loan if your child cannot make payments. It is important to look for the right loan for your situation. In addition, search for loans that offer rewards for good grades, on-time payments, and zero fees.

3. Encourage Alternative Funding Options

Before you immediately reach for a student loan to cover all expenses, take the time to maximize grants, scholarships, and other free financial aid. I applied for scholarships and used those funds to offset the cost of college. There are also work-study programs to help with college costs. If your child is not eligible for work-study programs, consider suggesting a part time job to help with costs.

4. Help Your Child Research Majors

Choosing a major is just as important if not more important than choosing what college to attend. A study from CareerBuilder.com shows that one-third of college-educated workers do not work in occupations related to their degree. In order to make sure your child does not leave school with a degree they won’t use and will likely not appreciate, it’s important to research majors to find one that fits passions with desired lifestyle.

Watch this video to discover what college majors yield high paying salaries.

The decision to attend college is a large one and it comes with a subsequent conversation about how to pay for college. There are many options and it is important to research them fully. Check into financial aid, grants, scholarships, and finally look into private student loan options to help cover the costs. Making the decision is not easy but there is no doubt that a college degree is worth it. See more from the Discover Student Loan study by clicking here.

This post was created as a part of the Discover partnership program.

Originally posted 2015-07-30 10:00:05.

Categories
Budgeting & Saving

I Lost my Credit Card, What Do I Do Now?

Have you ever been somewhere, travelling or even in your own hometown, when you lost your credit card or even your entire wallet?

The moment of panic that ensues while you search frantically for your card is not fun to experience, but this may happen to you at some point or another.

With any luck you will come across your lost card or wallet because it’s simply misplaced. But once in a while, it’s truly lost. When this happens there are some immediate steps you need to take to ensure that your identity and financial information do not fall into the wrong hands.

Call the Credit Card Company ASAP

The first thing you need to do is call your credit card company. Unfortunately, most of us don’t have that number memorized or readily available since it’s usually listed on the back of the card you just lost. Some experts suggest writing down the phone number and storing it somewhere separately from where you keep your card.

But often we are not near that safe storage place when we lose our wallets or credit cards. My suggestion is to store it as a contact in your cell phone.

discover freezeitIf you are a Discover customer you can simply use Freeze ItSM an on/off switch that you can access on your mobile app and online to prevent new purchases, cash advances and balance transfers in seconds if you misplace your card.

Another option is to use the internet to search for the phone number you need, or to ask a friend or family member for the phone number if they have the same type of credit card.

Request a Hold or Account Freeze

Credit card companies act very quickly when you report a card lost or stolen. They will ask you about your last transaction and then put a hold on your account so nothing else goes through on your card. This will prevent a thief from using your credit card and racking up fraudulent charges.
Sometimes when you lose your credit card it’s gone for several hours, or even days, before you notice it. When this happens you still need to call the credit card company right away. As a Discover customer, the $0 fraud liability guarantee means you are never responsible for unauthorized transactions on your Discover card account. However, you must request an account freeze if your card is lost or stolen.

Document Your Calls

Occasionally mistakes occur and your card does not get cancelled or a hold does not get placed on your account. Whenever you report a card lost or stolen you should keep a written record of when you lost it, when you called the credit card company, and more.

It’s also a good idea to follow up with a written letter to your credit card company as soon as possible so they also have a written record of the activity on your account and they have written confirmation that you want your account frozen or cancelled. If you send a written letter, be sure to follow up to make sure it reached them.

Of course, if you simply use Discover Freeze ItSM, you can immediately verify the account freeze you have requested via your mobile device.
Hopefully you’ll never have to deal with the loss of your wallet or credit card, but chances are it will happen to you at some point in your life. At least with these tips you’ll know exactly what to do when you lose your credit card.

This post was created as part of the Discover partnership program.

Originally posted 2015-06-19 10:36:51.

Categories
Investing

Simple Steps to Become a Millionaire

“I want to be a millionaire, so freaking bad.” You might have been thinking it, but Bruno Mars sang it first. Many people strive to become a millionaire. In fact, there is even a day dedicated to those people. This year Be a Millionaire Day is May 20th. On this day we answer the question, “Who wants to be a millionaire?” with a resounding shout, “Me! I do!” While it may seem difficult to save a million dollars, there are a few tips you can use today to make it to millionaire status sooner rather than later.

Steps to Become a Millionaire

Start a Savings Account

If you plan to reach the Millionaire’s Club by saving money, then you must first open a savings account. In order to accumulate one million dollars within 30 years, you will need to save around $750 per month at a 4% interest rate.

Use this calculator to determine your required savings rate.

Lately, interest rates have been pretty low on traditional savings accounts. Instead of simply shopping at your local bank, try an online bank. Then, look into a certificate of deposit. A certificate of deposit or CD is a way for your money to earn more. CD’s sometimes have higher rates than traditional savings accounts. A Discover Certificate of Deposit is great option with flexible terms from 3 months to 10 years and you can open your FDIC insured CD account with as little as $2,500.

Begin Investing

Let your money work for you. Investing your dollars gives each dollar a job and that job is to earn more money. When you invest, each dollar has the ability to earn a return. If you decide to invest by purchasing 100 shares of stock in a company, and those shares rise in value, your money just earned more money!

However, you have to be careful because if those shares drop in value, then so does your investment and you could lose money. Investing is not as safe as saving in an FDIC insured savings account. However, over the last ten years, investments in the broad market index, as measured by the S&P 500 have averaged 8.3% per year.

Mind the Gap

The gap separates a potential millionaire from a person that will never make it. What’s the gap? The gap is the difference between how much you earn and how much you spend. That unspent portion is available for saving and investing. Growing the gap will allow you to accelerate your millionaire status. How large should that gap be? Well that depends on how soon you want to become a millionaire. A larger gap means faster millionaire status.

“The amount of money you have has got nothing to do with what you earn… people earning a million dollars a year can have no money and… People earning $35,000 a year can be quite well off. It’s not what you earn, it’s what you spend.” -Paul Clitheroe

Here are a few examples.

Patrick and Jenny are 25 and both earn $50,000 per year. After taxes they each earn a take home pay of $3,000 per month.

Patrick keeps his expenses low and saves $1,500 per month or 50% of his take home pay.

Jenny enjoys shopping, dinners out, traveling, and attending concerts. She saves $300 per month or 10% of her take home pay.

In ten years, Patrick has saved a total of $220,876 with an interest rate of 4%. If he maintains the same saving rate he will become a millionaire by the time he is 55.

In the same ten years, Jenny has saved a $44,176 at a rate of 4%. If Jenny lives long enough, she will become a millionaire by the time she is 88.

Ultimately, becoming a millionaire is a simple process that requires diligence and persistence. Ready to become a millionaire? Open a savings account, begin investing, and create a budget that allows you to spend less and save more.

This post was created as part of the Discover partnership program.

Originally posted 2015-05-20 10:00:28.

Categories
Budgeting & Saving

3 Financial Tools to Help Reduce Stress

I recently found an old letter that I wrote to myself when I was very broke and extremely stressed. I wrote the letter and saved it so that I could look back and laugh. I knew that I would make it through that stressful time eventually. I was stressed because I needed to take care of the brakes on my car but I had no money! I was so scared that my brakes were going to give out on me before I had the chance to pay for them to be fixed. If I had simply saved some money in an emergency savings account, I could have saved myself the stress.

Money and finances are the top stressors according to the American Psychological Association. They recently released the Stress in America survey. According to the survey, 72% of adults report feeling stressed about money at least some of the time. Millennials are feeling this even more; 75% consider money to be a significant source of stress. With April being National Stress Awareness month its time to find some ways to combat financial stress.

A Budget Can Reduce Stress

Organizing your finances can minimize the time you spend thinking about your finances. Once you have your bills in one place, your due dates scheduled, and as many payments automated as possible, you can relax a bit. A budget is simply a plan for your money, the income and expenses. Figure out where your money is going then automate the payments. Using an online banking account can help you manage your budget easily from anywhere at anytime. For example, Discover Online Banking offers an online savings account that includes a low $500 minimum opening deposit with no minimum balance or monthly maintenance fees. This flexibility can help you manage your financial stress.

A Rainy Day Fund Can Reduce Stress

If I had taken the time to save a solid emergency fund then I would have felt less stress in my situation. For some people, just thinking about saving for an emergency fund can be stressful, but making savings a priority can help reduce stress. Here’s a painless way to save a quick emergency fund. Set up an automatic withdrawal from your checking to your savings. You can do this very easily in an online savings account. Choose a small amount, maybe 20 or 50 dollars and create a recurring transfer each month or every two weeks. Within a month you will have 40 to 100 dollars saved. As long as you don’t need that money in the first year, you can save a solid chunk of funds for your emergency savings account.

An Accountability Partner Can Reduce Stress

Getting organized and setting up a plan is the easy part, keeping up with that plan can be difficult. However, an accountability partner can help. Talk to someone that can encourage you on your financial journey. Write about your journey if you would prefer or start a blog.

Don’t allow money and finances to stress you out. Set up a budget, build a rainy day fund, and find an accountability partner to keep your stress levels low.

This post was created as part of the Discover partnership program.

Originally posted 2015-04-16 10:00:46.