Since launching Savvy Student, the Student Financial Services Blog, we've received emails from students, faculty and staff about topics ranging from credit cards to student loans. We have posted just a few of the questions below with answers from our staff.

Dear Savvy Student,
I'm still paying off loans from my undergraduate education. I have a low interest rate, but some months I feel as though I could pay more than my regular monthly payment. Does it make sense to pay more every once in a while to get my loans paid off early or should I just make the regular payment because my interest rate is low?
-Dana MacPhee, Senior TYP Coordinator

Dear Dana,
The answer to your question depends on your individual financial situation. If you have other loans, it is wise to pay down those with higher interest rates first. If this is your only loan, you should absolutely pay more than the minimum payment whenever you can. The less time it takes for you to pay off your loan, the less interest you'll eventually have to pay. Always remember: good credit is reflected by consistently making payments on time.


Dear Savvy Student,
What's a good interest rate for a credit card? How can I ask the company to lower mine?
-Anonymous

The best interest rate for a credit card is a 0% interest rate. Some companies will have a 0% introductory rate for a specific period of time (usually for the first six months). It is important to be aware of any fees associated with these 0% cards as very high fees may not justify a 0% interest rate.

Many people have found success in simply calling their credit card company and requesting a lower interest rate. Banks have an incentive to lower your interest rate because they want your business. It costs much more to replace you as a customer than it does to cut an interest rate to keep your business. There are many examples of card holders having their interest rate cut by a third, so don't be afraid to call. An effective way to convince your company to reduce your rate is to be prepared to move to another company if you are not satisfied with their offer. Say things like "is that the best you can do?" and "I've received credit card offers in the mail with better rates." If your customer service representative is not willing to give you a deal, try again in a few weeks. There's always the possibility of speaking to someone more accommodating. Be persistent, because there's no reason to pay more to your credit card company than you have to.


Dear Savvy Student,
I see those "freecreditreport.com" commercials on TV all the time. How often should I get my credit report? How do I do that? What's a good credit score?
-Anonymous

Thanks for the question. The federal Fair Credit Reporting Act requires each of the nationwide consumer reporting companies to provide you with a free copy of your credit report once a year. However, only one source is authorized by the federal government to do so: annualcreditreport.com. Because there are many websites offering "free" credit reports only with the purchase of other products, the Federal Trade Commission advises consumers to use only annualcreditreport.com and to ensure that the web address is entered correctly. Please be advised that the credit report does not include a credit score. To receive your credit score you do have to pay a nominal fee.

We recommend you check your credit report at all three bureaus once a year to ensure that there are no errors contained in your report. Those who do not take steps to protect their financial credibility are most vulnerable to identity theft.

We compiled the following table, complete with our very own original assessments, to give our readers a glimpse at good and bad credit score ranges:

Penny for your thoughts? If you have any feedback leave a comment on this post.