Helpful tips to save money in dental school?

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dentalprodigy

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I'm stating DS[UMDNJ] this summer and am overwhelmed at costs associated with deposits, housing applications, lease deposits, not to mention the tuition (even 4 state school).

for example I'm questioning my decision to dorm in the on campus housing for first year instead of cheaper off campus housing (non furnished)...

Q) can current dental students out there share money saving tips they wished they would have known when they were going through this process?

Any response is appreciated. Thanks!!

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Stay on campus for your first year. You will save a ton of money and time. I did it and it was like gaining an extra hour per day on my classmates. Plus my total monthly housing expensive was around $400/mo. See if they have some kind of graduate housing that mimics apartments.
 
Thx for feedback...yea I'm leaning heavily towards dorming on campus for first year.

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Thx for feedback...yea I'm leaning heavily towards dorming on campus for first year.

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buy a good bit of your "nice" clothes now. you'll likely be broke to be going out buying new suits/ties/poplin shirts while in school.

dont eat out! i know this is tough, but make a point to make your own lunch and so forth and you'll be amazed how much cash you'll save.
 
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We have plenty of commuters in our class at UMDNJ (2015), but its definitely nice living right next to campus. That being said, I wouldn't choose the student dorms to save money, because they are rather expensive. I think for a double, you are going to pay $880/month plus utilities. For reference, I live across the street in the Society Hill condos of University Heights, for $700/month plus utilities. If you are lucky and just need a room to rent, you can often find a place in society hill with other med/dental students for in the $600-700 range. I have found it to be quite safe and quiet there. Society Hill is also better if you have furniture to bring, since the dorms are furnished and you can't really bring any of your own stuff.

If you want to live in the dorms, do it for the ease of hanging out with your classmates and building those friendships and maybe even forming study groups if that works for you.

But definitely bring your lunch if you want to save money. If you buy your meals, its about what you would expect, $6-$10 dollars per meal. Will you be bringing a car? If not, grocery shopping could be a bit problematic. There is a grocery store adjacent to the school, but its a bit shady for sure.
 
Many may say no...but use a credit card--for everything! If you are somewhat of a responsible spender, a credit card will allow you to track all of the money you are spending. This makes it very easy to see what you are spending your money on and whether there are any areas that need tightened up. Eating out and beer money was a big sinkhole for some of my funds first semester as a D1...packing lunches and pre-gaming became much more important as the year progressed. Also, you may be able to pay for things like tuition, rent, utilities, etc with your card and those costs really add up. My rent for a 2 bed/bath apartment in downtown Baltimore is around 1500-1700 over the past 3 years (800/person). My roommate didn't want to mess with it, so I paid the rent and collected the frequent flier miles or cash from my card. The more of the necessity type things you can charge on your card, the more rewards you will receive whether it be free flights or cash from your credit card. In school, I don't think I ever had to pay for a flight home or wherever. Be sure to do some research as not all cc reward programs are created equal.
 
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Admittingly, the era of cheap gasoline and food prices are probably in the past. Hence inflation will probably go thru the roof in the next few years. 1970's style stagflation will return with vengeance. Current dental students really need to budget their monthly expenses wisely. Plan ahead for everything..no impulse shopping and etc...
 
actually track EVERY SINGLE ONE of your purchases. Put it all on a credit card to do this easily. Then, make a spreadsheet and sort your purchases. I think you'll be surprised how fast eating out adds up (this includes that $1.50 coffee each day (about $400 a year, or to compare, half your laptop).

Pay that credit card off every month. If you are not making money off your credit card, you're doing it wrong. Chase Freedom is a good card.

If you can bear it, live in a crap-hole apartment. You wont be there often anyways.

If you're school gives you the choice, dont buy the books, or at the very least share the book. If you really need the book, amazon can get in to you in 2-3 days.

good luck.

Edited to add: You dont NEED cable tv. You dont NEED a phone with a data plan. Those kick your monthly overhead up for little return.
 
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Stay on campus for your first year. You will save a ton of money and time. I did it and it was like gaining an extra hour per day on my classmates. Plus my total monthly housing expensive was around $400/mo. See if they have some kind of graduate housing that mimics apartments.

My situation was actually the opposite. Going off campus saved me more time + money. I didn't have to wait around for showers and could easily cook my own food. The dorms were actually pricier then having my own place.

Oh and get a roommate. Or 2 roommates for that matter. Rent will be cheaper and splitting utilities saves you a lot of money.
 
bump,
Please share tips and ideas for SAVING TIME and MONEY

I plan on stocking up on personal hygiene items 6 months at a time. Buying from Costco will do the trick. Sadly, I have figured out my consumption rate LOL.

I'll probably have to go grocery shopping at least once a week since I like my veggie fresh.
 
* Costco have hot dog and drink for $1.50.
* Shop at 99cents Only or Dollar Tree.
* Lunch on weekend by sampling at Costco.
* Cup-O-Noodle is $6 for 24pks at Costco.
* $1 menu at McDonalds
* Groupons
* Buy clothes at Goodwill
* Cut out cable and internet.
* Free smart phone plan with Freedompop.
* Drink tap water.
* Free wifi internet with Freedompop.
* Don't buy furniture.
* $1 Megabus for traveling.
 
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*cancel your brazzers subscription
*only buy alcohol that comes in plastic jugs
*only take "sure things" when gambling on sporting events
*accept gifts from lonely old men on craigslist
*strip clubs often have free lunch buffets
*place a tip jar at your clinic chair and hint that if they want their denture to fit well they need to give a little something, you know, for the effort
*never pay more than $5 for a foot long (and i DON'T mean subway)
*it's fun to stay at the YMCA
 
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I try to use Costco for everything...muffins, croissants, pizza (ten bucks for an XL combo!), groceries, maybe gas, eyeglasses, everything!
*cancel your brazzers subscription
*only buy alcohol that comes in plastic jugs
*only take "sure things" when gambling on sporting events
*accept gifts from lonely old men on craigslist
*strip clubs often have free lunch buffets
*place a tip jar at your clinic chair and hint that if they want their denture to fit well they need to give a little something, you know, for the effort
*never pay more than $5 for a foot long (and i DON'T mean subway)
*it's fun to stay at the YMCA
Caution: distasteful link...(NSFW?)
http://www.huffingtonpost.com/2014/04/28/elizabeth-raine_n_5227509.html
 
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Mint.com= best finance app ever
Winco= walmarts worst nightmare
 
* Costco have hot dog and drink for $1.50.
* Shop at 99cents Only or Dollar Tree.
* Lunch on weekend by sampling at Costco.
* Cup-O-Noodle is $6 for 24pks at Costco.
* $1 menu at McDonalds
* Groupons
* Buy clothes at Goodwill
* Cut out cable and internet.
* Free smart phone plan with Freedompop.
* Drink tap water.
* Free wifi internet with Freedompop.
* Don't buy furniture.
* $1 Megabus for traveling.
This is everything I already do! Wow, never heard of Freedompop, thanks!
 
Ride your bike vs. driving, go to the student computer lab and print out stuff rather than owning and maintaining a printer, pack your own lunch, make your own coffee rather than buying Dutch Brothers, get an antenna instead of paying for cable, get quotes from car insurance companies to see if you can get it cheaper elsewhere, make 2 big meals a week and then eat the leftovers (saves time and money), shop at thrift stores for clothes and furniture (just clean them before using or wearing), carpool, ride public transportation and study while someone else drives, live somewhere where some of the utilities are included in rent, if you want to eat out eat out for lunch instead of dinner, go to the dollar movie theater instead of the one with all the newest releases. That's all my advice from being a poor student and poor post-grad for the past seven years.
 
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All the credit card ideas are STUPID in my opinion. You can track your payments just as easily with a debit card, if you don't have the cash then don't buy it. Everyone starts out thinking they're a lot smarter than the masses and won't get caught up in the "credit card game", yet the average credit card debt is over 20k. Listen to the advice of those telling you to be frugal and conserve. Don't borrow money, because LIFE will happen and you won't be able to make a payment sooner or later and then those minimum payments become quite comfortable.
 
All the credit card ideas are STUPID in my opinion. You can track your payments just as easily with a debit card, if you don't have the cash then don't buy it. Everyone starts out thinking they're a lot smarter than the masses and won't get caught up in the "credit card game", yet the average credit card debt is over 20k. Listen to the advice of those telling you to be frugal and conserve. Don't borrow money, because LIFE will happen and you won't be able to make a payment sooner or later and then those minimum payments become quite comfortable.
So true, besides interest rates on credit cards are so high that you end up paying so much more in interest than you would have had to pay in the first place.
 
If you have the personality become an RA. Free room and board to babysit a floor of undergrads. The first two years you are going to be spending a lot of time studying, you might as well get paid and the coeds love a man in uniform.
 
It's a pain to keep track of credit cards and payments-will be canceling some cards. I took advantage of air travel miles last year just to reap the benefits. I was taught to pay off credit card balances every month when I first got my student cc.

Did you receive financial aid (ie living expenses) in a lump sum at the start of the year? Some credit unions might offer higher interests on saving like CD, money market. I might as well make good use of the cash.

As far as clothing, I am probably good for a while unless I gain massive weight lol.

Brazzers subscriptions? who has money to pay for that? Haha.
 
It's a pain to keep track of credit cards and payments-will be canceling some cards. I took advantage of air travel miles last year just to reap the benefits. I was taught to pay off credit card balances every month when I first got my student cc.

Someone correct me if I am wrong, but I am pretty sure it would be better for your FICO score if you kept your cards opened but just didn't use them. Both your credit utilized/credit available ratio and your length of time accounts are open positively impact your credit score. If the temptation is too strong, just freeze them in a block of ice like my mom did:)
 
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if i use my credit cards i'll be paying them off every month. if anything, i'll be periodically asking for increased credit limits.
 
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I disagree with the user above, credit cards are awesome when you're financially responsible =)!

Plus, its important to build up long term credit history, especially when most of us will be getting a practice loan sometime in the future.

I have a FICO over 750 and I'm 22 years of age. 3 credit cards with zero balances. <Without any parental help, including cosigning!

Don't be afraid of credit cards, just make sure to do your research. If you're smart enough to get into dental school, you should be able to make responsible financial decisions!
 
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All the credit card ideas are STUPID in my opinion. You can track your payments just as easily with a debit card, if you don't have the cash then don't buy it. Everyone starts out thinking they're a lot smarter than the masses and won't get caught up in the "credit card game", yet the average credit card debt is over 20k. Listen to the advice of those telling you to be frugal and conserve. Don't borrow money, because LIFE will happen and you won't be able to make a payment sooner or later and then those minimum payments become quite comfortable.

You can say the same thing about cars... people crash and die in them everyday, but we still use them! Credit cards are an essential tool in today's world. Not having a credit card will really make boosting your credit score a lot harder, and thus will cost you more money when it comes time to buy a house/practice/car/etc. Also, they are great for an emergency where you don't have the cash to pay immediately. Effectively, they boost your credit score and give you an effective working capital that you would not have otherwise. To say they are stupid is like saying driving is stupid; use it wisely and you will be far better off than if you did otherwise.

So true, besides interest rates on credit cards are so high that you end up paying so much more in interest than you would have had to pay in the first place.

Interest rate is irrelevant if you intend to pay off your card every month. If you only buy what you can afford then you will never carry a balance and thus never spend a dime on interest. That, and if an emergency comes up and you need to pay for it, then I would rather be able to pay and pay off my credit card than be forced into default. Like a poster above said, if a credit card is not making you money, then you are doing it wrong lol. :)
 
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That's a valid point about making damage to your credit scores. Well, I have no idea how much it will damage. The rule of the tump is to keep a few credit cards as possible so that you don't misplace the bill or overlook at the due dates. A late payment would definitely make a dent on credit worthiness. It would also become cumbersome to keep track of them in a spread sheet. I'll cancel some and keep the ones which I have been a member since forever.

if i use my credit cards i'll be paying them off every month. if anything, I'll be periodically asking for increased credit limits.

What is your reason to increase the credit limit?

Isn't the banks are afraid of you using your available credit all of a sudden. Therefore, your potential loan amount would be limited?
 
I think in today's age, missing a credit card payment is pretty ridiculous. All you have to do is setup your account so that you get automatic, phone, text, and email reminders. You can customize so that you get it X amount of days before the due date.

In addition, you can also setup an automatic payment system so that you will never be late as well...
 
You can say the same thing about cars... people crash and die in them everyday, but we still use them! Credit cards are an essential tool in today's world. Not having a credit card will really make boosting your credit score a lot harder, and thus will cost you more money when it comes time to buy a house/practice/car/etc. Also, they are great for an emergency where you don't have the cash to pay immediately. Effectively, they boost your credit score and give you an effective working capital that you would not have otherwise. To say they are stupid is like saying driving is stupid; use it wisely and you will be far better off than if you did otherwise.



Interest rate is irrelevant if you intend to pay off your card every month. If you only buy what you can afford then you will never carry a balance and thus never spend a dime on interest. That, and if an emergency comes up and you need to pay for it, then I would rather be able to pay and pay off my credit card than be forced into default. Like a poster above said, if a credit card is not making you money, then you are doing it wrong lol. :)


Yep, credit card company charges the merchant 2.75%-6% on the gross sales. I'm all about earning points and cash back :).
 
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* Costco have hot dog and drink for $1.50.

* Free wifi internet with Freedompop.

How do they make money? Do they sell my browsing and shopping history?
 
What is your reason to increase the credit limit?

Isn't the banks are afraid of you using your available credit all of a sudden. Therefore, your potential loan amount would be limited?

No real reason, I just want very high limits. From a practical standpoint, I align with what bereno mentioned, they're like emergency financial insurance.

In my experience, the fear you speak of is a bank's reaction to a borrower's credit worthiness. If you have a low fico, you are a greater lending risk, and a bank will hesitate to extend credit.

At any rate, I would recommend anyone in this thread to keep your credit accounts open if you already have them. Nobody says you need to use them for everything...or anything. Just keep them active by buying a pack of gum every six months then paying the balance of your statement. It will help your personal fico, which is one of the main factors banks will use to judge your value. And home and auto insurance providers. And sometimes employers.

And if you're going to chew the gum, make sure it's sugar free. You're going to be dentists for God's sake...
 
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I think in today's age, missing a credit card payment is pretty ridiculous. All you have to do is setup your account so that you get automatic, phone, text, and email reminders. You can customize so that you get it X amount of days before the due date.

In addition, you can also setup an automatic payment system so that you will never be late as well...

guilty as charged!
 
You can say the same thing about cars... people crash and die in them everyday, but we still use them! Credit cards are an essential tool in today's world. Not having a credit card will really make boosting your credit score a lot harder, and thus will cost you more money when it comes time to buy a house/practice/car/etc. Also, they are great for an emergency where you don't have the cash to pay immediately. Effectively, they boost your credit score and give you an effective working capital that you would not have otherwise. To say they are stupid is like saying driving is stupid; use it wisely and you will be far better off than if you did otherwise.

What can I say except typical American mentality. Odds of being in a deadly car accident vs odds of being in constant debt from credit cards are night and day. I've never met a person that became a millionaire from airline miles, 1% back, or points. I have however met thousands of people that feel like their "smarter" than the system and won't get caught up in the credit card debt because they believe themselves to be far more educated/responsible etc than the average person. Credit cards are like the lottery, which is essentially a tax for the poor, something the average person uses because they believe it will bring them wealth. But to each his/her own. The average dentist leads a lifestyle they cannot afford, and when the market crashes they end up closing their doors. Your average mentality will lead you to the road of an average dentist in my opinion. Which nowadays is a million plus in debt when you add the house you can't afford, the leased cars you can't afford, and your "dream" practice that again you can't afford. Being able to afford something and being able to afford the payments are two completely different things.
 
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What can I say except typical American mentality. Odds of being in a deadly car accident vs odds of being in constant debt from credit cards are night and day. I've never met a person that became a millionaire from airline miles, 1% back, or points. I have however met thousands of people that feel like their "smarter" than the system and won't get caught up in the credit card debt because they believe themselves to be far more educated/responsible etc than the average person. Credit cards are like the lottery, which is essentially a tax for the poor, something the average person uses because they believe it will bring them wealth. But to each his/her own. The average dentist leads a lifestyle they cannot afford, and when the market crashes they end up closing their doors. Your average mentality will lead you to the road of an average dentist in my opinion. Which nowadays is a million plus in debt when you add the house you can't afford, the leased cars you can't afford, and your "dream" practice that again you can't afford. Being able to afford something and being able to afford the payments are two completely different things.

:eek::stop:

Man, you either have a serious grudge or are a debby downer. Calm down there tiger. First off, there are quite a few logical fallacies in what you are saying, and I am not sure how to reply to all of what you said haha. Never met a millionaire form airline miles, 1% back, or points? Me neither. That's not the point of having a credit card. Credit card like the lottery? I always thought you got to keep the lottery, not pay it off every month... I have yet to meet an "average" person that believed credit cards will bring them wealth, but it seems you have. The average dentist lives a life they cannot afford? What are the dentists like in your area? The ones in mine seem to be retiring just fine - that's another way of saying they have afforded their life well enough. My average mentality? Not to inflate my own balloon here, but I am a finance major and am well versed on how to properly handle finances. If I happen to have an "average" view here, I think it is at least a founded one. Once again, not to buff my own ego, but the dental work I do is well above the average in my class, so I really doubt I will be an average dentist. Lucky for you, I am hoping to specialize with my average self. You mention that being able to afford something and being able to afford the payments are two different things, but I see them as the same; if you cannot afford the payments, you cannot afford the item. This is another way to say cashflows are more important than explicit dollar amounts, but that is a whole different topic.

Since you so eloquently painted a picture of me, here is what I think. I think you are afraid of the temptations involved with credit and thus choose not to use it. However, you are casting the title of "stupid" on all those that use it wisely. Dentists are by nature smart people, and have lower default rates than the vast majority of the public. Out of all the people who you could screen to properly use credit it would be us dentists. Would you really not buy a house till you can pay cash? Would you only buy a practice with cash? Would you really shoot yourself in the foot and not build your credit because you falsely label it as stupid and thus avoid it? I genuinely hope you take a second look at credit and try and keep your emotions out of it.

TLDR: Calm down there man, moderation in everything is important.
 
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What can I say except typical American mentality. Odds of being in a deadly car accident vs odds of being in constant debt from credit cards are night and day. I've never met a person that became a millionaire from airline miles, 1% back, or points. I have however met thousands of people that feel like their "smarter" than the system and won't get caught up in the credit card debt because they believe themselves to be far more educated/responsible etc than the average person. Credit cards are like the lottery, which is essentially a tax for the poor, something the average person uses because they believe it will bring them wealth. But to each his/her own. The average dentist leads a lifestyle they cannot afford, and when the market crashes they end up closing their doors. Your average mentality will lead you to the road of an average dentist in my opinion. Which nowadays is a million plus in debt when you add the house you can't afford, the leased cars you can't afford, and your "dream" practice that again you can't afford. Being able to afford something and being able to afford the payments are two completely different things.

Actually, just school (private) + practice will put you at a cool million. Someone borrowing for COA at a private school + the average practice (~700K gross, ~4-500K value) will will be an easy 1 mil in debt--nevermind the leased cars and the house. That would take you close to 2 mil. But I get it, and I agree.
 
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You can get a house with no credit and high net income if your bank knows basic mortgage underwriting, I will buy cars cash, and if I do take out a loan for a practice it won't be one filled with new equipment or 100k+ pano to impress my colleagues (lets be honest to patients its just a box that lights up ). The fact that you're a finance major explains why you have little fear of risk as you were conditioned that debt is a necessity and tool used to gain wealth. Sometimes debt is necessary (student loans, practice) your right, and I hope you and everyone on this wonderful forum are among those way too smart to get caught in your own debt. Don't forget about those with the Harvard MBA in business that were delivering pizzas during the recession. I think your belief that because you are a dentist to be, or that dentists themselves are that much smarter financially then your average joe is kind of naive. Most have no formal education in finance, and those that do are just taught that debt is a necessity. But hey lets meet up in 10-20 years and see what happens :p. The average person is a slave to their possessions living paycheck to paycheck, most dentists are also slaves they just have nicer things that they're living paycheck to paycheck for lol
 
The whole point of having a high credit score is so you can have lower interest on you house mortgage. Even just a percentage point on a 30 year fixed saves a ton of money. I've only had a credit card for 9 months and my FICO score is already 720.
 
You can get a house with no credit and high net income if your bank knows basic mortgage underwriting, I will buy cars cash, and if I do take out a loan for a practice it won't be one filled with new equipment or 100k+ pano to impress my colleagues (lets be honest to patients its just a box that lights up ). Good luck buying a house with no credit. Also, I agree that you should only spend what you can afford. Why do you assume that those using credit are spending frivolously?! The fact that you're a finance major explains why you have little fear of risk as you were conditioned that debt is a necessity and tool used to gain wealth. What risk is there in credit? There is no risk in using my credit card for my monthly expenditures and paying it off every month. Also, if I must use risk, it is not in the form of credit, but as an investment; two very different things. Sometimes debt is necessary (student loans, practice) your right, and I hope you and everyone on this wonderful forum are among those way too smart to get caught in your own debt. You just admitted that sometimes debt is necessary... You're shooting yourself a little here. Don't forget about those with the Harvard MBA in business that were delivering pizzas during the recession. This is extreme anecdotal evidence, since there was one person that did this. Even then, it was a UCLA grad that started his own hedge fund, risking his personal savings. Far from appropriate here. I think your belief that because you are a dentist to be, or that dentists themselves are that much smarter financially then your average joe is kind of naive. Statistics prove me right though... doesn't this make me the opposite of naive? Most have no formal education in finance, and those that do are just taught that debt is a necessity. Not wholly true, but not wholly false. You do not need formal education to make automatic payments on your credit card. But hey lets meet up in 10-20 years and see what happens :p. You know that this is an appeal to the masses argument (argumentum ad populum) and is known to be undo-able, so you say it for impact. If it were possible, I would take you up on this. Please stop with the fallacies. The average person is a slave to their possessions living paycheck to paycheck, most dentists are also slaves they just have nicer things that they're living paycheck to paycheck for lol

OK, so correct me if I am wrong, but it seems that I am saying "A" and you are hearing "B". I understand that spending frivolously is stupid, that we can agree on. However, using credit does not equate to frivolous spending. Using credit properly is the best way to secure your financial future. The fact is though, and like many things in life, use it wisely and you will be better off. Please refrain from the hyperbole.

My responses are in blue above.
 
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The whole point of having a high credit score is so you can have lower interest on you house mortgage. Even just a percentage point on a 30 year fixed saves a ton of money. I've only had a credit card for 9 months and my FICO score is already 720.

I agree. My FICO is 767 and I plan to leverage that in a possible refi someday. I want to keep my payments as low as possible to spend the least possible I can.

I do not know why so many people equate the use of credit with over spending... Do people not make budgets anymore?!
 
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I agree. My FICO is 767 and I plan to leverage that in a possible refi someday. I want to keep my payments as low as possible to spend the least possible I can.

I do not know why so many people equate the use of credit with over spending... Do people not make budgets anymore?!

Pretty much. I use mint.com religiously and man it keeps me from going broke.
 
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There is a huge difference between a person who uses their credit card responsibly and pays off everything in full and someone that charges the maximum amount for reward points and pays only the minimum.

I don't understand why you can't accept the fact that there are responsible credit card users.

Btw, paying in full cash for certain items is dumb. Why do think most wealthy people don't pay off their houses in full?

If you consider the roi you get from even the safest investments and subtract out the interest lost from a house mortgage, you will have a higher net gain than if you were to pay off your house in full.

It's not always about avoiding interest but acquiring a large net gain, the emphasis in net..

Proper investment is the key to financial success, not paying in cash for everything.

There is a time and place for everything , cash and credit included.
 
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if i use my credit cards i'll be paying them off every month. if anything, i'll be periodically asking for increased credit limits.

In my experience, they increase your credit limit automatically if you use the card responsibly. For example, my wells fargo CC started with a $1,500 max when I opened it in 2007. They have periodically increased the limit over the last 7 years until it is now over $14,000.

What you should periodically ask for is a rate reduction. That same card started with 12.9% APR and is now 8.9% APR. It's not much worse than a student loan!


and @ktran17 , you are up there with @Bereno as one of the most financially savvy traditional students I have read posting on this site.
 
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In my experience, they increase your credit limit automatically if you use the card responsibly. For example, my wells fargo CC started with a $1,500 max when I opened it in 2007. They have periodically increased the limit over the last 7 years until it is now over $14,000.

some of mine do, some of mine don't. even for those that do, i still ask.
 
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When it comes to auto credit limit increases, my Discover card has been the best.

I love using my credit cards and milk them for all I can. Like others here, I have a credit score in the 750+ range at the age of 22. I have used my cards since high school with zero issues.

When it comes to CCs, this thread from a while back was pretty good: http://forums.studentdoctor.net/threads/building-credit-getting-a-credit-card.1054683/

Here is my take on them....

DO NOT EVER MAKE LATE PAYMENTS. ALWAYS PAY OFF THE BALANCE IN FULL. If you do that, there is no reason not to have one. Not only are they immensely more convenient to use than cash, but you need to be building credit. Plus, if you get a card with good rewards (all 3 of mine have great rewards), you can do a lot with the cash back. You can also save good money by using the "online stores" that CCs offer. I am not a big spender and always spend well below my means. Even with my minimal income and spending, I rack up about $250/year in rewards. Is that a ton of money? No... but it's better than nothing at all, which is what you get by using cash!

Even as a very young person, I have a credit score in the "excellent" range. The only thing holding my credit score back is the age of my credit history--it's still very young. I'm confident that once I've had my cards for just a few more years, I will be in the 800+ score range. So, by the time I graduate dental school and actually need to be taking out non-government loans (car, house, practice, etc.), I should be able to get awesome interest rates.

If a person is just starting out, from what I understand, their parents could add them as an authorized user on their card. This would get them an instant credit score. However, a person shouldn't consider doing this unless their parents have excellent credit and no delinquencies. I am not an authorized user on my parents' card because I don't really need the boost in score, but I was talking to them yesterday about adding my younger brother so he could more easily qualify for a card at some point. He's just 18.

Basically, as I understand it, you can get on your parents' card for a month or two, get an excellent credit score, and then easily qualify for a card of your own. At that point, your parents could drop you as an authorized user. Your score will drop, but at that point, you'll have a card and will be able to build credit just like anyone else.

Also, I've read that making multiple payments throughout the month on your credit card can help boost your credit limit, so I do that, too--and I think it has worked. It's incredibly easy... though I have automatic payments, anytime I go online to check my card statement, I just click a button and it pays it.

I have credit limits that are honestly sort of ridiculous for someone with my income, but like I said, it has caused no problems for me. It is also very helpful because my credit utilization ratio is extremely low. This is one of the biggest determinations in your credit score. You want your utilization to be very low.

Unlike lots of other things in finances, credit cards are actually pretty easy to research and understand. I'd begin by making an account at creditkarma (yes, they are legit). Though they can only estimate your credit score, they are a fantastic tool and are free! I find that the score they estimate for me is always within 5-10 points of my actual credit score.

I also would apply for just one card to begin with. If you apply for a card for which you are not pre-approved, the credit company is going to do a "hard pull" on your credit history. This negatively impacts your score, but it is a necessary thing in the beginning. Conversely, if you apply for a card for which you are pre-approved, they only do a "soft pull" and your credit score is not negatively impacted. So don't just go crazy with the applications--the hard pulls stay on your credit report for 3 years, but I think they are only figured into your score for 2.

Sign up for something with good rewards and no annual fee. I highly recommend the Discover it card. (https://www.discover.com/credit-cards/student/) The cashback bonus is fantastic (1% back on everything, 5% back in categories that revolve quarterly, and the shop discover store which allows you to get cashback on online purchases). Beginning recently, they even give you your FICO credit score for free on your monthly statement. I have had a Discover card for longer than anything else... and in the beginning, they were the only card that would approve me.

I recently signed up for the BankAmericard Cash Rewards Platinum Plus Visa. It's good because you get 3% back on gas all year round. (Discover usually has gas as a 5% bonus category during one quarter of the year. During that quarter, I use Discover... but I use the BankAmericard for gas at all other times.) The card also gives you 2% back on groceries, and has no annual fee. If you redeem your cashback as a statement credit into your BofA account, you get an extra 10% on what you redeemed.

I still greatly prefer my Discover, though, and would choose it if I only had one card. The free FICO credit score is very useful. The 5% categories are good, and the ShopDiscover store is great. I make online purchases all the time just to get the extra cashback. All you have to do is link to the store's website through its ShopDiscover page, and you get an extra % back (usually 5%, but sometimes more!).

For example, WalMart is on ShopDiscover. I got my brother an XBox game for Christmas. Sure, I could just waltz over to WalMart and buy it. However, I made the purchase online through ShopDiscover. I got 5% back on the game that way. WalMart has an "in-store pickup" option, so I just went over immediately and picked up the game from the customer service area. Took me maybe 10 seconds extra, and I got 3 bucks back. Is that a ton of money? No. Is it worth a few seconds of my time? Oh yeah! Those 3 dollars add up.

I have also used ShopDiscover for buying a Macbook Pro. 5% back on a 3k purchase is significant!!

You can redeem your cashback bonus as either a direct statement credit or for partner giftcards. If you redeem for a giftcard, you get extra money. For example, $45 cashback dollars can be redeemed for a $50 gift card at Starbucks. Some stores have even better deals--$40 cashback dollars gets you a $50 giftcard to Brooks Brothers. Tons of major companies participate in both ShopDiscover and the cashback redemption program. It's nice!

I am not a guru on this by any means, but I think credit cards--and particularly the rewards you get by using them and having a good credit score--are really interesting and convenient.
 
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I ain't readin all that...
 
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Ha. On my phone, that post looked absolutely massive
 
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Ways to save money:

Apply to be a Resident Advisor / Community Advisor / Graduate Advisor in the college dorms. They usually give you free housing for your services. Fun job - get to meet lots of undergrads. I wish I did this for more years.... Lots of perks: free printing, free food, bossing people around, etc.

Give up the car you are doing all those Costco runs with...

When you sign up for credit cards, make sure you shop around online for the best "sign-up bonus", sometimes you may have to wait for a good sign-up bonus to be available. I've been in the credit game for less than a year, and have made over $600 on sign-up bonuses alone. My credit score went down about 20 points after a series of applications, but now it is back up to where it was. Some banks will offer you sign-up bonuses if you create chequings / savings accounts with them as well!
I second the recommendation on the Discover It card: the free FICO score every month is useful. I'd also recommend an American Express Delta card if you travel at all. Also, the Chase Freedom is a staple: 5% cash back on rotating categories, 1% cash back on everything all year.... (similar to Discover It's, but rotating categories aren't the same each quarter).
 
I second the recommendation on the Discover It card: the free FICO score every month is useful. I'd also recommend an American Express Delta card if you travel at all. Also, the Chase Freedom is a staple: 5% cash back on rotating categories, 1% cash back on everything all year.... (similar to Discover It's, but rotating categories aren't the same each quarter).

I have the Chase Freedom and second that recommendation. I don't like their online setup nearly as much as Discover's, but the 5% categories are great. I typically use my Discover for most things, but use my Chase for the rotating categories and BankAmericard for gas and groceries (3% on gas and 2% on groceries all year long).
 
I have an Amex, freedom, and discover it. These are all credit cards with stricter requirements but they're so good especially if you rotate through them !
 
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