Finance - Page 2

Bad credit loans can do a lot of good for people with poor credit score

A good credit score is a prerequisite for availing loans easily because lenders consider it as in index of the reliability of borrowers.  People with high scores have a good track record in managing them and hence more dependable to lenders while those with a poor score are risky borrowers about whom lenders have strong reservations.

Different lenders have different methods of considering what constitutes good score, but generally, a score above 700 is good, and anything below it up to 599 is the average score. Going down further can strictly debar people from availing it as lenders consider it high risk to lend them any sum of money no matter how small it might be. 

According to creditninja personal loans are mostly unsecured in nature, the score assumes the highest importance in gauging the reliability of borrowers. Low scores can not only limit borrowing options but can even result in denial. However, all is not lost for people with the poor score because many lending companies provide a lifeline to them by providing bad credit loans. It is the same personal payment but with some special consideration. 

Bad credits are alternative to traditional loans


They are an alternative to traditional loans because banks and credit unions have strict requirements of good score to approve it of any kind. When someone with poor scores faces any financial emergencies like making payments for medical bills or need cash for meeting the high cost of car repair they would simply not qualify for it from the traditional lenders who use score a yardstick to determine its eligibility.  Instead, some other companies that specialize in the personal loan would be willing to give it to them despite bad credit and name it like bad credit loan. The approach is similar to repacking a product to make it look different, whereas all the characteristics of them are the same as any other. 

What is good or bad credit score?

Scores reflect the dependability of borrowers to lenders and the good or bad about it depends on the way lenders analyze the score to assess the risk of borrowers.  The score that some lending companies consider as a risk for their businesses might not be as much risk to some other companies. However, there are some guidelines to understand the broad distinction between good, fair, and poor score. The score scale ranges from 300 to 850 scores between 700 and 759 is good, and from 760-850 is excellent. The mid-range from 600-699 is fair, and anything below this range can be bad for borrowers as it diminishes the chances of availing it greatly.

Giving a lifeline to borrowers


People with poor credit score must work hard to get it because the closer they are to the 600 marks, there is still some chance of getting it, but the interest rate will be much higher. They must pay the cost of higher interest in case they manage to get any of it approved. The high-interest rate helps to cover the risks perceived by lenders, and it can even be a lesson for borrowers who would be careful to ensure that they improve their score for better borrowing options next time. In fact, bad credit loans give borrowers an opportunity to correct their score and build a positive image that paves the way for better borrowing rates in the future.

Impact of bad credit score on borrowing

Shopping becomes extremely difficult for people with a bad score, but the silver lining is that still, they can hope to get it if they are willing to bear high interest. The options are, of course, much less because only a few companies would be willing to provide bad credit loans, but still, there is some hope that it would be available. Some lending companies offer both secured and unsecured loans to people with bad credit, but unsecured of it is more costly as it carries very high interest.  Yet, some types of it can come in handy when people are in dire need of money that should be available quickly.

Types of bad credit loans


 Secured and unsecured are the two broad categories of it that have some sub-categories like Bad credit installment, PayDay, Cash advances, and title 

Bad credit installment loans As the name implies, its payment comprises of fixed monthly installments, which is a great relief for borrowers as they do not have to pay it at one go nor immediately. It is a great opportunity to rebuild your score. Since the payment spreads over a long period, you can include it as a part of other monthly bills you pay. Making timely payments can qualify you for rewards too.  

Payday loans – When you are in urgent need of cash, it can save your day. The application process of it is simple and fast as the money reaches your bank within 24 hours. However, you must pay back it as soon as you receive the next paycheck. The APR on it is usually about 400%, and you need to plan well before taking it or else it can become difficult to manage.

Cash advances – This is a variant of a payday payment, and consists of issuing a check to the lender for its amount together with lenders fee and interest (annual APR is 400%) and the lender will take the full amount as soon as you receive the next paycheck.   

Title loans – You can avail it online or at storefronts, but it is a secured loan with an annual APR of 300%, and you must furnish collaterals. You must pay it back in a few weeks.  

While the opportunity of getting it’s despite poor credit is good news, be careful to evaluate the offers with a focus on the payment terms and interest rates so that you can manage it smartly.

Finding A Mortgage Lender That Is Right For You


Buying a home for the first time can be a scary experience, especially if you are taking out a large loan (even if you’re getting a great mortgage rate by using a site like to cover the majority of the purchase. There are all sorts of things to consider before making your home purchase. Here are some of the most important things to consider before committing to a mortgage lender. After reading, you may want to visit Focus Federal Credit Union to learn more about the mortgage lending options that are available to you.

  • Know What You Qualify For

Before going in and asking your lender for a loan, do your research, check your credit score, and make sure that you are in a position to qualify for the amount you want. You will save everyone time and energy by doing this.

  • Credit Scores Are Important

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Improving your credit score is a crucial part of the process, many don’t realize how much money can be saved over the lifetime of the loan when you are approved for lower interest rates. You check your credit score on websites like Credit Karma and use this information to gain a better understanding of the interest rate you may qualify for.

  • Know When You Want Move

Buying a home means moving from where you are to where you want to be. If there are specific dates that you need to move by, you need to make sure your paperwork and the qualification criteria are submitted and processed in time to meet your deadlines. If there is a home on the market that you have your eye on, make sure that your realtor works with the seller’s realtor so that your timeline is accounted for.

  • Plan On Spending More

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When you move into a new home, usually there are things that arise that we’re not planned for. Appliances go out, water pipes leak, and general wear and tear begin to surface as you spend more time in your new place. Set aside some extra money and be prepared to spend some cash on repairs and upgrades, once you get into your new home you will want to make it yours. Adding your personal finishing touch to the property will truly make it feel like home.

Mortgage lenders can be found in your local area by searching the internet or speaking with your local bank or credit union. There are definite advantages to working with credit unions over other traditional lending firms. If you are part of the U.S. military there are also special financing options that you may qualify for. Stop by your local credit union and apply for a mortgage loan today.

In Australia, Consumers are Standing up to Big Banks


After years of stability, some turbulence prompted Australians to switch credit card providers en-masse. Here is why:

The saying “needs must when the devil drives” has been thoroughly tested in other banking sectors around the world, but in Australia, where the recession has been absent for more than a decade, people were always very loyal to their banks and hardly ever switched. This all changed during the recent property crash when big banks started to recall loans from clients they knew for years – and when the RBA lowered interest rates, but many card providers did not reflect this amply in the way they charge the consumer.

The consumer was eventually left with no other choice but to switch

Today, credit card comparison websites are popping up across Australia – and a more open market finally means that consumers have more choice to escape the debt trap laid by some of their card providers. People have realized that the banks are looking after themselves first and now consumers are mirroring that approach as we discuss below:

A man on a mission to educate and inspire change

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Meet Roland Bleyer – the CEO of Australia’s leading credit card comparison website He is the man behind thousands of people who abandon the big banks for alternative options, all to get a better deal: more favorable terms and lower interest rates. When asked how he went about inspiring such a cultural shift in a country that is rather conventional with issues such as personal finance, Bleyer said: “We did this by equipping the public with powerful information in a series of courses they access on our site – and by connecting them to better options from alternative providers in a few simple clicks. By leveraging AI and technology to pair match the right people with the right providers, we save time for both parties, delivering a win-win outcome”.

Bleyer explained the magnitude of the credit card phenomenon in Australia, where people are totally in love with credit: “We might be a nation with a fantastic GDP per capita, yet Australian consumers racked up $50 Billion in credit card debt. If it was zero interest, fine, but it’s not: a massive $5.3 Billion was paid in credit card interest last year. Furthermore, it costed $1.5 Billion in credit card fees In Foreign fees alone. This comes to over $1 million dollars a day. When you think about these facts and the reality that Australians present a lower risk to banks than people in other struggling economies or heavily populated high-unemployment regions, well then Australians are not getting a good deal! So they have no choice but to compare the leading credit card deals to fight the banks – and get the deal they deserve”.

The rise of alternative credit card options

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Whereas previously, the privilege to issue credit cards was severely limited to a handful of banks, today Bleyer’s comparison site features a string of providers such as NAB, Me, Virgin Money, Latitude, ANZ, American Express, Bank of Melbourne, BankSA, Citi, Wespac, HSBC, BankFirst, BOQ, BCU, Bank of US, Bank of Sydney and Bank West.

Evaluating a plethora of options in seconds

It would, however, have been impossible for the average working person to find the time to compare all these banks individually and make a decision. This is where comparison websites come in: At the click of a button, they aggregate the various options available. Consumers can then see a side-by-side comparison of what might be best suited for their individual circumstances. Some have lower interest rates; others have better perks while you spend (including air miles and zero fees on international transactions) and so forth. So, depending on what you need most, the aggregator provides an option to screen all the options – and to apply immediately to the most suitable ones.

It is, in fact, a genius invention as it is helping both banks and consumers find each other in a market that suddenly became more crowded. When education aggregators started in the US and UK, universities were critical: today they are all on board because they are losing enrolments. So is it also with the banks – now the biggest banks are after Bleyer in order to get a piece of the action.

Balance transfers are often the biggest attraction

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Some 450 000 new credit cards were issued in Australia in the last year with the ASIC debt clock showing astronomical statistics. With 83% of young people using credit cards to support their lifestyle, many sit with debt on which they need to pay interest. So, in order to clear the debt easier, without interest or with very low interest, many opt for a “balance transfer”. This is simply when you apply for a new credit card from a new provider, use it to settle the balance on the old credit card and switch providers. Often these balances come with zero-interest for up to 24 months, either enabling consumers to “breathe”, or to set the debt without paying much interest.

Final scoop on credit card comparison in Australia?

The Australian credit card market will never be the same again: The consumer is awakening to a new set of rules that enable them to take back power from the big banks – the power to decide for themselves where the best deal exist at any point in time. Many consumers are now switching every two years, so this certainly represents a new trend to watch closely.

Creditworthiness: What’s In It for Borrowers?

You probably have read or heard about the term “creditworthiness” many times when researching a loan or credit cards. It’s not surprising as it has a very important part of every loan application there is.

The term is pretty self-explanatory as it’s basically a term describing how worthy the borrower is off the loan as well as his or her likelihood to default on the obligation.

How Do Lenders and Creditors Get Your Information

You need to render some personal information first to qualify for a loan. This should include necessary details like your name, contact information, and address. The lender or creditor like CreditNinja Financing might also ask finance-related questions to you to better gauge your eligibility, such as your employment status and income.

After submitting your application, they will run a hard credit check that will affect both your credit report and score.

For instance, a lender might check how much debt you currently have and what your income to help them ascertain your capacity to repay the loan that you’re applying for.

What is a Credit Score?

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It consists of a three-digit number ranging from 300 to 850. A high score means your creditworthiness is good. It also implies that you manage and pay your debt and obligations on time.

The biggest factor that affects it is how often you settle your bills on time. Delayed payments and other financial misconducts lessen it.  As a consequence, it will be difficult for you to get approvals on loan and credit card applications.

Besides financial and debt management, the amount of debt you’re carrying is also a big factor. For example, having a high balance can make it hard for you to get loan approvals.

That being said, pay down your loan balances and keep your balances below 30% of the limit. Also, lessen your applications for a new card and only apply for new items if necessary.

What Your Credit Report Contains

It houses important personal details about you that lenders check when evaluating your creditworthiness. Apart from basic information, you’re probably wondering what else is written on the report and how you can check it out yourself.

In case you don’t know, you’re entitled to one credit report every year. The three major bureaus namely; Experian, Equifax, and TransUnion, will allow you to check your report through visiting their websites.

Know it that this report doesn’t include your credit score. But you can check it separately and for free through financial sites that provide credit score checking services. Another way to check your score is by taking a look at your current loan statements.

Below are the pieces of information that you can find in your credit report.

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  • Personal details such as your name, birth date, address, social security number, and phone number.
  • New and old accounts information, including payment history, account balances, account types, creditors’ names, and available
  • Public records like bankruptcies, foreclosures, liens, and civil suits.
  • Inquiries from companies from companies that checked credit report.
  • Debt collections

At this point, you’re now aware that lenders who run a hard credit check on your report can see just about everything related to your finances. All of these metrics come together so they can gauge how risky you are as a borrower.

Creditworthiness Varies

It’s important to know that it also varies depending on the type of loan you want to apply for.

For example, payday loan lenders have more lenient standards and requirements than mortgage loan lenders. The reason is that mortgage loans pose higher risks for the lenders because they involve bigger money with nothing to back them up in case the borrower defaults the loan. Good thing you can secure a loan with collateral which helps minimize the risk so you can qualify.

On the other hand, applying for a credit card is easier and have a higher approval rate, even if you have a shoddy credit history or a low score. However, when such is the case, the loan comes with a higher interest rate.

How to Improve Your Creditworthiness

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To stay on top of your creditworthiness, it’s important that you monitor your score regularly. You can do so by using credit checking platforms online. These platforms will grant you access to your score and give tips on improving it.

Now, if you’re having a hard time getting approved for loans, you need to polish it. Prove to the lenders that you’ll not default on debt obligations.

Get a Credit Card

You need to build credit if in order to build your score. It doesn’t necessarily mean your card should carry to improve your score. It means you need to make purchases that you can afford to pay once your billing cycle ends.

Paying your bills in full every month will showcase your capacity to repay a debt on time, which is crucial in establishing good credit. If you can’t acquire a regular credit card, you can get a secured version from a lending institution or a bank. They can also give you a card limit that’s equivalent to the money you deposited into an account.

Be Responsible with Using Your Credit Card

Don’t max out your card and always pay your bills on time. Remember that having a high balance on your card can harm your score even if you’re paying it every month. It’s ideal to keep your monthly expenses within or less than 30% of your credit limit.

In case you exceed your limit, settle the balance right away. It must be done before your statement closing date to minimize the balance that’s going to be reported to the credit bureaus.

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Apply for a Loan

Credit comes in two types: revolving and installment credit. If you want to get the best possible score, you need to build your creditworthiness with both.

Know that a credit card falls under the revolving credit type. Thus, if you don’t already have installment loans such as mortgage, car, or student loan, consider applying for a small personal loan that you can easily pay.

Stay on Top of Your Credit Report

To make sure that you don’t have any negative marks on your reports, you must regularly monitor it. If you find inconsistencies, errors, or unauthorized accounts or reports on your report, dispute them right away.


If you feel like there’s still room for improvement for your credit history and score, there are steps you can do to fortify them as well as your overall creditworthiness. Just put in mind that it is a loose term whose definition can vary depending on what kind of loan you’re seeking and on the lender.

While it’s difficult to determine what do lenders care about the most in your credit report and how strict they can get in terms of requirements, knowing what information they use to gauge your eligibility is the first step in increasing your likelihood in securing a loan and in improving your financial health.

How to Travel on a Small Budget?


Exploring fascinating places doesn’t have to cost a lot of money and you obviously don’t have to break your bank to travel the world. If you’re looking forward to traveling on a small budget, we’ve got you covered. Below you’ll find some tried and tested tips to help you plan a great vacation on a budget:

Plan Well

There is no denying the fact that impulsive traveling is awesome. However, it is only possible when you have plenty of time and resources. But, if you’re following a strict budget, the most important thing is to work on a feasible plan. No, you don’t need a rigid unbending minute-by-minute itinerary, but you should have a general idea of the route that your journey will take or how long you plan to spend in each country or state. This way you could save hundreds of dollars as last-minute flights are generally pricier.

Always Travel Out of Season

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Selecting the right time also plays a crucial role especially when you’re traveling on a budget. Never travel during school vacations or festive holidays as rush during these months is usually more than the other months. Also, during special days, the cost of accommodation, transport, and food are comparatively high. Research the perfect time to visit your favored destination and you may pick the time just before or after these researched dates. Resorts and airlines cut down their prices to attract more customers during shoulder season.

Look for Alternates

The accommodation cost is certainly one of the biggest costs for those traveling on a budget. One of the ways to save lots of money on accommodation is to ditch expensive hotel suites and look for more reasonable substitutes. For instance, you can find an appropriate hostel at decent price and share a room with someone. Also, websites like AirBnB help you book a spare room in someone’s house.

Pack Smartly

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According to JanSport, while there is nothing better than traveling light especially if you’re traveling on a budget, it’s still suggested to bring everything you need in your suitcases and backpacks to avoid shopping. Keep in mind, shopping at tourist destinations is hell pricey. So, no matter where you’re heading, make sure to keep a spare pant, tee, and accessories with you.

Booking In Advance Can Save You a Lot of Money

If possible, always book a two-way flight as packages with return tickets are usually economical. Generally, airlines offer their flight seats in advance and the more you get closer to the date of departure, the costs will escalate.

Choose Your Flight Days Wisely

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Always choose your flight days wisely. For instance, midweek ticket prices are relatively lower as compared to the weekends. Thus, look for the availability of tickets on Tuesday or Wednesday. Not only, midweek days are better in terms of ticket cost but you can also avoid long queues at security and check-ins. Also, there is no need to upgrade no matter how appealing business class looks. The selection of economy flights can let you spend more money on better food and accommodation options. Economical airlines are absolutely okay if you’re traveling a short distance. These airlines also introduce great, cost-effective deals for the travelers so make sure you keep yourself updated with any recent offer the airline has introduced for its customers.

Opt for Public Transport

Instead of taking short-distance flights, opt for buses or trains. Not only these options are cost-effective but you can also enjoy great sceneries on the go. Also, an overnight train journey can save you a one-day rent/fair of your hostel or hotel.

Don’t Spend Too Much on Food

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Low-cost breakfast, lunches, snacks, and dinner can easily be bought from local supermarkets or nearby farmer’s market. Instead of overspending your cash on expensive food options and restaurants, try out local delicacies or street food. Try to check all the possible options before deciding a place to eat for yourself. Consuming beer with every meal will also add up to the cost. There is no better and healthier substitute than water, so try to stick to it as much as you can.  There are hostels that allow visitors to access their kitchen and cook their own meals. If you love cooking, just buy a few of your favorite ingredients from the supermarket and prepare a delicious meal for yourself at the best possible price.

There you have it. These simple yet extremely effective tips will help you have wonderful holidays on a budget. If possible, convert your vacations into working holidays by carrying forward your freelance work or you can also work as a skiing instructor or a language teacher if you want. The possibilities are literally endless.

What do you usually do to make your vacations budget-friendly? Feel free to share your opinion below as we’d love to hear back.

Learn How to Manage Money to Invest and Prosper

When you look at how much money you make in a year, it seems like you’ve got everything together. Your career is on an upward trajectory and you keep pulling in a bigger salary every year. But your bank account is a whole other story.

It’s a common experience: you make a lot of money but you can’t seem to save it. Life can get expensive for plenty of reasons and it’s easy to lose track of your spending. Weddings, vacations, a busy social life – it can all add up to a costly lifestyle, and that maybe what’s draining your paycheck before you have a chance to stash it away and build up some savings.

Those who never learned how to save growing up but have the means to do it now are especially prone to spending too much and not building up their investments and savings for their future. Remember that it’s great you’re earning money now, but the economy can change. What do you want your life to look like in 10, 20, and 50 years?

These personal finance tips can help you turn around your financial prospects. If you’re already earning money, half the battle is already over.

1. Plan for the Future

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One of the reasons you’re not saving is probably because you’re not planning for the future. It’s an easy trap to fall in; virtually every company out there wants you to think about today, and tomorrow never. Financing deals on things like furniture and cars are the biggest culprits. They often offer 0% loans for the first 6 months (or any given time period) – followed by high interest that you can still be paying. Think about whether or not you can afford to pay something off before interest kicks in, including your credit cards. It’s always better to pay the full balance whenever you can.

2. Break Down Your Spending

One of the hardest parts of saving is giving up life’s luxuries (big and small), but the good news is, in your situation, you don’t have to cut back to austerity. Here’s how you should break down your budget:

Fixed Expenses: About 50-60% of your income should be going toward fixed expenses like rent/mortgage, gas, bills, and generally predictable, necessary expenses.

Savings and Investments: 15-25% of your money each month should be going toward savings and investments, assuming you are debt-free. Send some to a savings account for short-term goals like a vacation, while 10 to 15% should go straight into investments.

Discretionary Spending: This is the fun stuff, and can account for up to 20-45% of your spending, depending on your retirement and saving goals. You don’t have to give up everything, but putting a hard cap on this budget will help you prioritize.

3. Invest for Growth & Wealth Preservation

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Now that you actually have money to invest, where do you put it? It depends on your goals. At first, growth is going to be more important, but as you continue to save, your goals will evolve, and wealth preservation will become more important.

Protection: Hard assets like gold are some of the best ways to protect your wealth from uncertainty. Now is a great time to start investing in gold coins and bars, because the global economy is starting to show signs of weakness again. Investors around the world flock to gold coins and gold bars when they lose confidence in the stock market. Gold dealers like SilverGoldBull offer gold around the world at competitive prices online. It’s easy to compare, click, and get your investments.

Shares have higher growth potential, but gold has lower risks – including no third-party risks when you buy gold coins in physical form.

Growth: Shares and bonds tend to be the most popular investments when you’re looking for your money to earn interest or dividends. Shares will grow your earnings more quickly, but there’s more risk, whereas bonds provide a guaranteed interest rate. The difficulty with bonds is that inflation may outpace them.

Start saving money and investing it in assets that will help you grow and preserve your wealth.

Short Term Loans to Bridge the Business Gap


Business is moving faster than ever before, and cash flow is more important than anything. In tough economic times, savvy business managers are having to get clever with banking. Financial managers are often shopping around to find ways to spread their cash or find short term solutions to cover a temporary shortfall.  Businesses today have options when it comes to helping their business battle the storms of the tough times the world is facing. One such solution is short term borrowing.

Borrowing to gain

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Borrowing money from the bank is something few people really enjoy and in a perfect world, they would not necessarily do. However,  businesses are using short term loans to help them gain the upper hand in business. Borrowing because income is not forthcoming is a short-sighted and futile solution to business challenges but borrowing when times are good can be a way to make good times even better. Borrowing is not always a negative thing and when considered as part of a growth strategy it can make perfect sense.

Reasons for a short-term loan

As stated, borrowing to cover reduced income is a poor idea but there are some very good reasons why a short-term loan makes business sense. Cashflow in business is a priority and in companies where equipment can drain capital or hemorrhage cash, a short-term loan makes absolute sense. Very often there are upfront expenses on a job or project that must be covered long before even down payments have cleared in the bank. Often the cost of equipment or materials required to complete a job or project can hinder cash flow and monthly budgets and the money must be found either in the business or, as is in many cases, from a willing lender.

Business borrowing is easy

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Business borrowing is the key to sustainable success for many companies. The amounts borrowed bridge the gaps before assured payments come in. Banks and other financial houses understand the short-term needs of businesses and when backed by commitments and contracts a short term loan makes sense. The process of applying for a short term loan is easier than many imagine. There is no more trudging off to the bank with a pile of papers and contracts, today the entire process is done online in a matter of minutes. The process, especially for business loans, has been designed to keep business moving. The process takes a few minutes, approval is just as quick, and the funds needed often take less than 24 hours to reflect.

Borrowing makes sense

Business borrowing makes sense when it is considered as part of an overall financial management strategy. There are growing numbers of lenders and businesses can secure preferential interest rates for repeat business when short term lending is factored into a long-term business relationship.

Top 5 Money Management Tips for College Students

The poor college student: It’s a cliche in part because it’s so often true. The plight of most college students is that they go to school full time and usually only work part time. That means that they don’t have a lot of extra money to spend on much of anything. If you’re reading this, then it’s likely that you’re in this boat. Here are five ways you can make your money stretch further while you’re going to school.

1.Start by Making a Budget

For many new college students, going  to university is the first time that they’ve been asked to make a budget. In terms of keeping control of your finances, U.S. News and World Report puts learning to budget first on its list of college finance “must dos.”

A good college budget not only shows you how much money you have coming in from jobs, parents, and financial aid, but it also shows you how much you have going out. If you have more going out than coming in, then you will have a shortfall.

Here are a few things that should go on your budget:

  • Rent
  • Textbooks and supplies
  • Food (if you’re not on a meal plan)
  • Laundry (soap, coins for the machines, etc.)
  • Transportation
  • Personal care items

2.Shop Wisely for Textbooks

With college books costing you as much as $1,300 a year, your school books represent a major portion of your college budget. 

The problem stems from the fact that the textbook publisher sets the price for the books and your professors order the books. However, the person ordering the books – that’s the professor – isn’t the person who has to pay for the books, so the price of your books affect your professors very little. 

However, the price of your books affect you a great deal. That’s when it pays to know how to buy textbooks on the cheap. 

First, try not to buy textbooks brand new. You’ll save a lot more money if you get used textbooks. You may save even more money if you rent some of your books or get them in Kindle format.

Also, be aware that your campus bookstore may not be the best place to buy books from a price standpoint. There are other booksellers, like Booksrun that buy and sell school books online. Check out options like these when cash is short.

3.Separate What you Want From What You Need

You might feel like you need coffee to get yourself going in the morning, but do you need a Starbucks coffee everyday? Do you need to eat lunch at the deli around the corner? Probably not. 

According to Nerd Wallet, splurges, like your daily coffee start to add up to the tune of a $1,000 or more a year. That’s where knowing what you want versus knowing what you need to get by is so important. 

If you’re not sure about which expense is which, then keep a money journal for four to six weeks. Record everything you spend money on. After a while, patterns will emerge. You will begin to see where you’re spending money. You may actually be surprised at how many splurges you find on your money journal pages. 

Speaking of splurges, you should also be mindful of how you use your credit cards if you have them. Don’t wait until the bill comes to start keeping track of your credit card purchases. Put those in your money diary as well. Credit cards make it easier to spend money mindlessly. You don’t see the money you’re spending leaving your hands, so it’s like it doesn’t exist until the bill comes in.

4.Work on Your College Breaks

Money that you earn and save on a job is less money that you have to borrow in student loans. It may be that you already work throughout the year. If so, keep that job during winter and summer breaks.

If you have a work study job, then find a job once school’s out. Put as much in savings as you can. It’ll be a cushion for you in the coming year. 

5.Get Scholarships and Grants

Scholarships and grants save you a bundle of money because the more of them you get, the fewer student loans you have to take out. Having student loans to pay back means that some of your future earnings won’t be yours. 

Right now, the average student loan debt is almost $30,000. Since student loans cannot be discharged via bankruptcy, you’ll be paying back everything that you’ve borrowed until it’s paid off. In light of that, borrow wisely.

Final Thoughts

Although you may not have much money when you’re in college, these years also represent a great opportunity for you. Not only will you be getting an education, which could help you secure a job later, if you play your cards right, you’re also learning about how to handle money. 

Few experiences in your life will teach you as much about money as learning how to handle your money wisely while you are in college. During these years, you’ll really learn how to keep track of your money, how to cut costs, and how to make the money that you do earn count.