Credit Cards & Paying for initial expenses before $disburse Forum

[WhatTheLawSchool]

What I really need is for someone to give me a hug and tell me that everything is going to be alright.

Ok, so I don't own a credit card. I really don't have cash on hand for moving across country to my school, paying deposit on new place, and all other initial expenses. I've also seen that the government loans can take up to a month after school starts to come in. How the heck do I take care of all of those expenses? Can I really get a credit card to cover the thousands it will cost me? I have pretty good credit, but I just don't know where to go to get a good card, etc. Advice?

[traehekat]

Do a search, there was a thread on this a few weeks back. I am in the same position and I got a credit card from Chase in order to pay for things like furniture, moving, etc.

Just make sure you pay it off when you get your loans.

[thebookcollector]

I know it can take up to a month, but I was told I'd have my refund first week of school.

I'd check with credit unions and other institutions first to see if you can get a short term "signature" loan. These usually have a high interest rate, but it is generally lower than credit cards because it has a fixed payback period (generally five years). You could just pay it off when you get your other loans, and your interest would be minimal.

Credit card wise, I recommend Chase Freedom. I put all of my purchases on it and pay it every two weeks when I get paid... you get 1% cash back on everything, and every quarter, they give "bonus categories" which pay a higher percentage... this quarter, for example, you get 5% on gasoline.

[WhatTheLawSchool]

How does the disbursement come? Does it just go straight into a designated bank account, that I choose or that they choose?

So, would I be crazy if I got a card with a 0% introductory for the first 6 months or whatever, used that for all my moving expenses here at the beginning, paid it off with my first disbursement, etc, and then just didn't use it thereafter?

[eandy]

How does the disbursement come? Does it just go straight into a designated bank account, that I choose or that they choose?

So, would I be crazy if I got a card with a 0% introductory for the first 6 months or whatever, used that for all my moving expenses here at the beginning, paid it off with my first disbursement, etc, and then just didn't use it thereafter?

You can usually get it put into your bank account. Check the student information system or call financial aid.

At least you guys are 21 and can get a credit card. I won't be 21 until a few weeks into class, so no luck for me. I don't know what I am going to do.

[danidancer]

HUG!!!

Seriously, it'll be fine. Make a budget for yourself now. Figure out how much money you're getting back at the beginning of the semester, what your expenses during the semester will be, etc, and what's left is the absolute max you can safely charge on the card and payback without accruing interest (I'm assuming your credit limit will be higher). Credit cards are only bad when you charge more than you can pay back. It's exactly these types of start up costs that are probably the most legitimate charges you can make. Just... Pay it off as soon as you can and don't carry a balance ever if you can help it and you'll be fine.

[danidancer]

At least you guys are 21 and can get a credit card.

You have to be 21 now? WOW. Things sure are different in this economy. When I was an undergrad (all the way back in the 'aughts) banks were literally throwing themselves at anyone and everyone over 18 with a pulse.

[CyLaw]

At least you guys are 21 and can get a credit card.

You have to be 21 now? WOW. Things sure are different in this economy. When I was an undergrad (all the way back in the 'aughts) banks were literally throwing themselves at anyone and everyone over 18 with a pulse.

I believe the two bolded parts are related.

[WhatTheLawSchool]

(all the way back in the 'aughts)

Haha, thank you for calling them the "'aughts." And thanks for the hug.

So, is the first disbursement larger than others? I'd assume that's the case what with tuition costs, books, moving.

haha, I feel like a crazy person. I just need my financial aid person to call me back.

[Na_Swatch]

At least you guys are 21 and can get a credit card.

You have to be 21 now? WOW. Things sure are different in this economy. When I was an undergrad (all the way back in the 'aughts) banks were literally throwing themselves at anyone and everyone over 18 with a pulse.

I believe the two bolded parts are related.

lol credited

[eandy]

(all the way back in the 'aughts)

Haha, thank you for calling them the "'aughts." And thanks for the hug.

So, is the first disbursement larger than others? I'd assume that's the case what with tuition costs, books, moving.

haha, I feel like a crazy person. I just need my financial aid person to call me back.

Not unless you set it up that way when you accepted your award. I had mine changed to be that way.

They will more than likely be equal.

[danidancer]

At least you guys are 21 and can get a credit card.

You have to be 21 now? WOW. Things sure are different in this economy. When I was an undergrad (all the way back in the 'aughts) banks were literally throwing themselves at anyone and everyone over 18 with a pulse.

I believe the two bolded parts are related.

I mean... Yes. Clearly I knew there were massive changes in the credit industry as a result of the economy, I guess I just didn't realize that this was one of them. Crazy how fast things can change given the impetus!

[eandy]

Yeah, I can take out thousands of student loans for a TTTT that can never be forgiven, but no credit card for me.

It's ok, though. I totally understand why the new law exists. Kids really were getting preyed on by the CC companies.

[WhatTheLawSchool]

I don't think I've had any options for setting up my disbursements yet. I guess that will come soon?

So, is the first disbursement larger than others? I'd assume that's the case what with tuition costs, books, moving.

Not unless you set it up that way when you accepted your award. I had mine changed to be that way.

They will more than likely be equal.

[eandy]

I don't think I've had any options for setting up my disbursements yet. I guess that will come soon?

So, is the first disbursement larger than others? I'd assume that's the case what with tuition costs, books, moving.

Not unless you set it up that way when you accepted your award. I had mine changed to be that way.

They will more than likely be equal.

You should have received your financial aid award and approved it. That will tell you your aid("disbursement") amounts for fall and spring. If you poke around your school's information system(whatever you viewed your award in or where you can input other info) there is probably something where you can setup direct deposit for your refund. If you don't see it, call the financial aid office.

[98234872348]

you are dumb.

htht

[WhatTheLawSchool]

you are dumb.

htht

Thanks!

[MrKappus]

If you "don't own a credit card," then I have bad news for you...it means you don't have "pretty good credit." You're an idiot, and probably not ready to be an adult. Hit up your parents (as I'm sure you've done before) or get a job flippin' le burgers (you're familiar w/ one of those options).

[pleasetryagain]

It's ok, though. I totally understand why the new law exists. Kids really were getting preyed on by the CC companies probably too dumb to be in college and thought credit cards were free money - probably because thir parents were too dumb and thought the same thing.

[eandy]

If you "don't own a credit card," then I have bad news for you...it means you don't have "pretty good credit." You're an idiot, and probably not ready to be an adult. Hit up your parents (as I'm sure you've done before) or get a job flippin' le burgers (you're familiar w/ one of those options).

It's not my fault--I'm 20

[lawduder]

If you "don't own a credit card," then I have bad news for you...it means you don't have "pretty good credit." You're an idiot, and probably not ready to be an adult. Hit up your parents (as I'm sure you've done before) or get a job flippin' le burgers (you're familiar w/ one of those options).

It's not my fault--I'm 20

are you sure you can't get one? I got a credit card when I was 18 and I'm 21.

[SamSeaborn2016]

The new CARD act that went into effect in February changed a lot of rules regarding credit cards but the biggest one effecting most younger folks is that in order for a lender to approve someone for a credit card, they have to meet and verify minimum income guidelines. Typically if one is only working part time or relying wholly on student loans for income they will not qualify for a credit card. This was done because lenders were throwing easy credit at college students with no means to repay.

For the organization I currently work for, we simply don't give credit cards to anyone between 18-21 without a co-signer.

[kalvano]

At least you guys are 21 and can get a credit card.

You have to be 21 now? WOW. Things sure are different in this economy. When I was an undergrad (all the way back in the 'aughts) banks were literally throwing themselves at anyone and everyone over 18 with a pulse.

You have to be 21, have a co-signer, or have a job with sufficient income to cover the obligations.

[kalvano]

If you "don't own a credit card," then I have bad news for you...it means you don't have "pretty good credit."

That's entirely wrong. You can have good credit without having a credit card.

Though at under 21, it's more difficult.

[Geist13]

One thing to bear in mind is that your loan amount will include living expenses for 10 months only. They assume you will be making money over the summer (which for 1L we probably won't be). So you have to make your 10 month budget stretch to 12 months to begin with. Be careful about planning on using that money to pay for august expenses made on credit. If you do, then you have to make that money last 13 months. It gets more difficult to do each month you add on. It's better to work until you move.