Although banks do initially lose money on student accounts, they act as a loss leader because they work to the fact that many students will continue to use the bank for years to come, generating profits through other products, from savings accounts to mortgages.

Student accounts are designed specifically with students in mind, allowing money to be paid in and withdrawn, as well as offering a number of other benefits including 0% overdrafts and discounts on products and services.

Below are some on the main things to keep in mind when searching for the best student account.

ñ  Look around for the best interest free overdraft

Most students will find the overdraft facility is the most useful tool they have, so it can pay off to find the best deal. Look into how the overdrafts are given, as some accounts advertise big limits but in the small-print you will see that these can’t be reached until the second or third year of study.

While many banks try to attract students with cash incentives or discounts, the most valuable feature of all is the 0% overdraft (unless you don’t need it). This can also be true after you have graduated, so look into the graduate accounts that will follow.

ñ  Always stay within your overdraft

It very important to make sure you never exceed your 0% limit. This isn’t just a rule for student accounts, it’s something you need to stick to for life.

Doing so is likely to lead to penalty charges, so if you’re desperate, go and speak to your bank as they may agree to increase your limit.

If you do find you have accidentally gone over your overdraft and you are charged, call your bank to explain – they may refund the charges if you are back within your limit and don’t make a habit of it. Something else to keep in mind is that different banks charge different amounts, so you could be charged up to £30 per transaction upon exceeding your limit.

ñ  Building up your credit score

Any products that allow you to spend money that you don’t already have, including bank accounts with overdrafts, are used to build up a picture of your financial activity which will affect your credit score. The data is stored, so if you stay within your limits you will build up a good credit rating.

However, exceeding your overdraft will have a negative affect on your credit score.

Your credit score is used by lenders to make an informed decision on how much of a risk you pose to them. Prove that you can be trusted with credit and you are more likely to be accepted on application to the top deals on loans, mortgages and credit cards.

This rule also applies to student credit cards, so be sure to stay within your credit limits.

ñ  Don’t choose your provider based on convenience

Just because a bank has a branch near to your campus, or it is the bank that you have used in the past, it doesn’t make it a reason to open a student account with them.

Most cash points offer free withdrawals these days and most banks come with online banking facilities, so this should mean you won’t need to visit a branch very often. Therefore, you should focus your reasoning purely on what the account offers.

ñ  Switch to a graduate account after finishing your studies

Once you have graduated, you will still be eligible for preferential terms, including interest free overdrafts to help you clear your debts without having to pay interest for the privilege. In some cases these accounts are free, but those that do charge often come with other benefits such as mobile phone insurance and breakdown cover, which may be less than you currently pay for these services.

Filing for bankruptcy when you’re in a financial bind is no fantasy; it’s something millions of Americans must resort to each year. In the event that you think you need to declare bankruptcy, here are a few things to consider before taking the plunge.

Explore your options

It’s very important to understand that just because you’re in debt doesn’t mean bankruptcy should be your first option. Depending on how much debt you’ve incurred, you may have a number of options available to you.

Debt Consolidation: Taking out a loan in order to pay for your other loans may seem counterintuitive, but it could mean lower interest rates and a single, steady road to financial revival. One effective way to consolidate your debts is to apply for a balance transfer card. These allow you to move your debt from other credit cards into one place so you can consolidate your payments and whittle away your debt without interest for a time. However, keep in mind that most credit cards charge 3-5% of however much you transfer.

Work with a Credit Counselor: You can try to take control of your debt situation with the help of a credit counselor approved by the Department of Justice. They’re there to help you get organized and come up with effective strategies to slowly pull yourself out of debt. Usually they can offer solutions to your financial woes, but if not, they can at least properly assess whether or not filing for bankruptcy is the right option for you.

Still in trouble?

If you’ve exhausted these options and still find yourself in a bind, it’s important to know exactly how bankruptcy works and how it will affect you. First and foremost, filing for bankruptcy significantly lowers your credit score—somewhere between 130 and 240 points. When you file for bankruptcy, it remains on your credit report for 10 years, making it difficult to get any credit or to make big purchases, like a house or a car, for a very long time.

It costs about $1,500 to even start the filing process and you’ll need to do pre- and post-bankruptcy counseling on your dollar according to the amendments to the law made in 2005.

Next, you need to consider which kind of bankruptcy you’d like to file: Chapter 7 or Chapter 13. Chapter 7 bankruptcy will wipe out all of your debts except for child support, alimony, student loans, and income tax debt, to name a few. Be sure to check if your debt can be lifted to avoid filing and ruining your credit score for no reason. You will be required to take a means test to see if you qualify for Chapter 7 bankruptcy or if your income is steady enough to gradually pay off your debts. It also remains on your record for 10 years, so make sure it’s the best option.

Chapter 13, on the other hand, allows you to pay off some of your debts over a 5-year period. You are assigned a payment plan that works with your current, stable income, and are given a little bit more breathing room. This stays on your record for 10 years—shorter than Chapter 7, but just as hard on your credit score.

Never Do It Alone

The best advice one could give is to never try to do this alone. There are plenty of sites claiming to help you avoid lawyer fees by declaring bankruptcy on your own, but the truth is, it just isn’t worth it. There is so much that could get lost or confused in the entire process that you may end up in a bigger jam than before. Find a credit counselor or a lawyer well versed in credit card debt to help you get through the process with as little damage as possible.

Bankruptcy should always be your last resort. It may be devastating to start, but it could eventually end up being your one lifeline when you need it most.
Tim Chen is the CEO of NerdWallet, a credit card company dedicated to finding you the best credit cards out there.

Of course, if you’re looking to ensure utilities, broadband, mobile phone and subscription television fees are paid on time then there are multiple other options available. Some companies allow you to pay over the counter at the Post Office, while others accept special payment cards that can be used at designated outlets. The problem some people might have with these, however, is that it takes time out of your day and is seemingly just one more thing that needs to be added to your extensive list of things to do.

This is where Direct Debits and standing orders really come into their own, as once they have been set up the money is taken from your account and the third party is paid on time. The whole process is automated so you should never have to worry about being chased about missed payments – provided, of course you have sufficient funds in your current account to pay the bill – and any funds taken will be detailed on your statements.

However, as the two facilities are so similar, there is often some confusion about how they differ. Both are basically an instruction to your bank to make a payment to a third party on what is usually a regular quarterly, monthly or weekly basis – although they can also be arranged to be more flexible . The only real difference comes down to how they are managed and how much they cost. A Direct Debit will often be the favoured option by companies as they are cheaper to operate. Therefore, some offer discounts to customers who choose to pay this way. Of course, both options are free for the account holder to set up, but as standing orders need to be verified by the bank it can often take longer for the funds to be completely transfer.

Therefore, although the differences between Direct Debits and standing orders may seem small, there are savings to be made. So, having a current account that offers the ability to set up both might be the best option. In addition, if the facility also has an arranged overdraft you may find that even if your account is in credit, the money can be taken without you having to incur any charges. Of course, this will depend on the individual provider, but may offer you just one more reason to consider switching bank accounts sooner rather than later.

It was discovered that on average, 68 per cent of respondents admitted they would be likely to switch bank accounts if they were unhappy. Those in Northern Ireland were the most adamant on the matter, with 85 per cent saying this was the course of action they would take. This region was followed by residents of Yorkshire and Humberside (73 per cent), the North West (71 per cent), the North East (70 per cent) and the South West (69 per cent). The least likely to change current accounts in the UK were people in Wales, but even among this group, 58 per cent said switching was preferable to sticking with an account that didn’t work for them.

Commenting, Which? chief executive Peter Vicary-Smith said there were many reasons consumers might want to change, but ultimately it was their opinions that were the most valuable in deciding the future of the industry. With all this in mind, is it about time you considered the facilities of your account and whether or not they are the best for your needs? You may not currently have internet access on your account, but there are all manner of online bank account options available to you that might be worth thinking about. Alternatively, you might not currently have an overdraft, but once again this is something you could address by checking out what is on offer.

You may find the process is particularly easy and requires much less in the way of filling in forms than you would expect. This is in part due to changes in European law in 2008 that are designed to make switching simpler for consumers and involve both your old and new bank account provider having to work together to ensure the transfer of payments, direct debits, standing orders and other information is done as rapidly and hassle-free as possible. So why not take a look at your current account today and see if you might benefit from being one of the consumers up and down the UK that are making sure they are equipped with the best current accounts?

Taking out a mortgage to buy your first home

Often the hardest part of getting a mortgage is saving up a deposit, which is usually at least 10 per cent of the value of a property. However, once you’ve got a decent amount squirreled away, you can find yourself at something of a crossroads. Continuing to rent where you live could seem a safe option – there’s no debt involved and with savings behind you, you’ll always be able to cover the rent, even if you lose your job. However, the rent is effectively ‘dead money’ – you’ve gained nothing of tangible value by putting cash in your landlord’s pocket.

Taking out a mortgage is a big decision, especially if it’s a six-figure amount. Although house prices can fluctuate, when the market picks up, you’re likely to be left with more than you put in – along with having somewhere to live that’s your own.

Paying for home improvements with a credit card

If you’re planning to sell your home, paying for a home improvement such as a new kitchen with a credit card is a calculated gamble. The aim of the exercise is to add more value to the home than the cost of the credit – meaning you’ll be able to pay back the money you owe once the house has been sold. Other options for paying for the work could include taking out a bank loan or remortgaging your property – a financial advisor should be able to take you through your options.

Taking out a car loan to buy a new vehicle

If you already own your car outright, it could seem a strange idea to pay for a new one using credit. However, if your vehicle is old and inefficient, you could be spending far more than the difference on petrol and repairs, meaning that buying a newer, cleaner model is a better bet in the long run.

In all instances, the key is understanding the difference between good and bad debt – and the role that risk plays in improving your financial health.

Although travel companies can offer their own insurance as part of a package break, it’s essential to shop around to look at other deals before signing up.

There’s a number of things to look out for when searching for travel insurance – and price is not always the best marker of a good policy. In fact, cheaper policies tend to offer worse value overall due to their exclusions and the limited cover they can offer. If you’re a frequent traveller, getting an annual policy may be the best avenue to go down, but if it’s for a single trip, here’s a few things to look at.

Keep an eye on the excess
If a policy seems particularly cheap, it’s a good idea to first focus on the excess. If the cost of a claim is going to run into hundreds of pounds, you’ll be less likely to claim than if the excess is more reasonable. A policy like this could end up being far more than cheap – it’ll be pretty worthless if it prices you out of claiming.

Scrutinise policy exclusions
Most travel insurance policies are littered with exclusions, meaning you have a number of things to consider before signing on the dotted line. For example, some policies may offer no cover for pre-existing medical conditions or ask that you provide a police report before the claim is processed. This may sound relatively simple, but in some foreign countries a report can be pretty hard to get hold of – especially if you’ve already returned home.

Pay close attention to the small print
It’s imperative that you read and fully understand every word of a travel insurance document before signing up. For example, if your policy talks about events relating to a “close relative”, you may be surprised at who this does and doesn’t refer to. If a breakdown is mentioned, this could only refer to public transport rather than your own car. If you’re ever unsure of what something means, get in touch with the insurer and ask them to clarify – and they don’t make things clear, it may be best to consider another policy where the claims process is more transparent.

The key to much of the above is giving yourself ample time to find a comprehensive travel insurance policy which offers good value for money and cover. With this important little document in your suitcase, you’ll be able to get on with enjoying your holiday with the peace of mind that you’ll be covered for many unexpected mishaps.

If you don’t have a savings or checking account, you should start one. Credit card issuers often require that you have a bank account before they will issue you a credit card. There are “no bank account” cards that are pre-funded. That means that you re-load the card with money in order to use it. These are good for people who want to control their spending and don’t want the temptation of having an open credit line, this is the easiest way to apply for a credit card.

Some issuers will issue a guaranteed credit card in which you must start an account with the same amount of money as your card’s spending limit. For example, if you want a card with a £500 credit limit, then you have to open up a savings account and put £500 in it. With this type of card, called a “secured” credit card, you can use a good payment history to establish or re-establish your credit history. After several months of paying on time, you can improve your credit standing.

If you aren’t happy with the credit cards you can apply for from your local bank, there are dozens of credit cards you can apply for online. The website creditcards.com has several methods of comparing different credit cards based on a number of factors. For example, you can make a comparison of credit cards based on interest rates, annual fees, cash back, reward programs, or just about any other variable.

In many cases, you can go to an issuing bank’s website and apply online. Sometimes – particularly if you have very good to excellent credit – you can get an acceptance within minutes. If you don’t get instantly accepted, it doesn’t necessarily mean you were rejected. Some issuers don’t give out instant acceptance. And in some cases, if your credit history is borderline, they may want to review it more closely before giving you an answer.

There are more places than ever that you can apply for a Visa credit card. You have more options than ever in terms of rewards, interest rates, and fees. The better your credit, the more choices you will have.