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The Lowdown on Citi Student Credit Card
Most credit cards would make it a prerequisite for applicants to have a credit history before their application can be approved. With this, students may find their choices of credit cards rather limited. However, the Citi Platinum Select Card for College Students is designed specially to meet the needs of students.
There are no annual fees incurred for this card, although the APR is higher than most other credit cards. Furthermore, the APR is based on a variable rate with the figure tied to the Prime Rate. Nonetheless, there is always the 6-months 0% APR (for balance transfers, cash advances and purchases) and a cashback reward program to fall back on.
Apart from that, the cash rebate program rewards students with up to 5% of the amount spent on purchases charged to the card. Purchases made with the Citi Student credit card at supermarkets, drugstores and participating merchant partners are eligible for a 5% cash return. Nevertheless, lower cash rebates of 1% are applicable for cash advances and check transactions.
The downside to this is that cash rebates will be issued through $50 checks with rebates for general purchases limited to $300 a year. Other attributes of the card include a 20-day interest-free grace period each month, and a minimum credit limit of $500.
Interest charges are calculated based on an average daily balance method but as always, it may not be advisable for consumers to make late payments. Accounts can be managed online and customers are given the choice to pay their bills automatically. As a safety feature, the Citi Student credit card provides an option for the card holders photo to be printed on the card to prevent identity theft occurrences. Ultimately, this card serves as their stepping stone for students towards building a strong credit history, which is vital for their future financial dealings. Concurrently, this would also be a great card to instill spending habits discipline in young adults.
Top 5 mistakes when getting home equity
Rates have historically never been better, so nowadays the temptation to borrow against your home equity is very strong. However, many homeowners unknowingly make costly mistakes.
Here are the top 5 mistakes people make when applying for a home equity loan.
Mistake 1 – Not Knowing The Difference between a Home Equity Loan and a Home Equity Line of Credit
A home equity loan is a one-time transaction that allows you to draw out all the funds available.
A home equity line of credit (HELOC) is open; you can choose a small initial advance against the full amount of the line; then reuse the line of credit as often as you want during the period that the line is open. Your monthly payment is based on the outstanding balance.
A general rule of thumb is: use a home equity loan when you need all the money up front; such as cash for home improvements, debt consolidation, or a large one-time purchase.
If you need ongoing access to cash and revolving credit a HELOC may be your best choice.
Mistake 2 – Taking a Home Equity Loan When You Plan on Refinancing Your First Mortgage
Many mortgage companies look at the combined loan amounts (i.e., the sum of the first and second loans) even when you are refinancing only your first loan. If you plan on refinancing your first loan the lender may require you to pay off both your first and second mortgages; or close your home equity line completely.
Check with your mortgage company to see if having a second loan will cause your refinance to be turned down.
Mistake 3 – Not Knowing The Hidden Costs
If you feel you must take out a home equity loan or open a line of credit it is important to know ALL the costs. With any loan secured against your property there can be hefty insurance costs, appraisals and other fees that can cut into your loan amount.
Mistake 4 – Only Applying at Your Current Bank
Many consumers apply for their home equity loan from their home bank. This can be a costly mistake.
As in any other type of loan, be sure to shop around for the best deal. Your current bank may not be able to give you the best interest rate or the best terms.
Think twice before deciding to use your local bank; you may find that there is another lender out there that can offer you a substantially more attractive loan program.
Mistake 5 – Not Checking Your Credit First
As in any type of loan, it is imperative that you get the best rates and terms. However, if you have credit problems it will seriously affect your ability to qualify.
In fact, if your credit is not the greatest you may have no choice but to use alternative lenders specializing in hard to place loans. The solution: Make sure you go with the bank or lender that provides the best rates for your type of credit whether good or bad.
There you have it. Avoid these 5 mistakes and you could save yourself hundreds, if not thousands of dollars when you get a home equity loan.
Strategic Capital Network is a licensed mortgage brokerage specializing in helping credit challenged homeowners qualify for home equity loans.