Credit Card Quick

Is a Credit Card Right for You?: Things to Consider Before You Apply

Introduction

In today’s world, credit cards are often considered both a need and a want. Consumers want them for the convenience and perks they offer, and they need them to help build credit, add capital to a small business, rent a car, reserve a hotel and any number of things you just can’t seem to do anymore without having plastic in hand. While credit cards can be a great asset to have, they are not for everyone. There are several questions you need to ask yourself before you fill out that credit card application. Some of these questions can determine if it is wroth your time to even bother filling out the form and others can help you to decide if you can afford a credit card. If a mainstream bank issued credit card is not for you, look into other options, such as secured or pre-paid cards.

Income

What does your income currently look like? Can you afford to take care of yourself? Pay your bills and expenses, supply your needs? Beyond that, is there extra money aside from the basics? If you can say yes, then a credit card may be right for you. If you are struggling just to get by and barely making ends meet, you might want to hold off on that credit card until your financial situation gets better. Obtaining a credit card while you’re already struggling could lead to more debt and more financial woes than it is worth.

Your Credit Score

If your credit score is not all that great, you might not want to fill out the credit card application. You could very well find yourself denied credit or given a card with an extremely low limit and high interest. While a card like this could help to build up your credit, it might be worth holding off until you can improve your credit score in other ways. If you already have debt and a low score, you probably are in no position to take on more debt in the form of a credit card. Focus on improving your score and later on, when you can afford it, you might be able to get a credit card with a higher limit, better rates and additional perks.

Responsibility

Are you good at paying your bills on time, every month? Do you resist spending frivolously? Are you careful to keep a budget? While it’s acceptable to buy yourself something special every now and then, you want to seriously consider what kind of spender you are before you go getting a credit card. If your spending leaves you scrambling to gather up the money to pay your bills, you might want to get some credit counseling or budgeting education you even consider getting a credit card. If spending is a bad habit you already have, you might find yourself maxed out and drowning in debt very quickly.

Before you fill out any credit card application, ask yourself these questions and carefully consider your current position in life. if you can afford it and do not think the consequences of owning and uses a credit card will hurt you, then go for it. If a credit card will only lead you into further financial distress, consider alternatives or wait until your circumstances change.

To Sign or Not to Sign? That is the question

Identity Theft

Flip over your debit or credit card. On the back, there is a signature strip. Everyone already knows this. However, there is some question as to whether or not one should really sign the back of the card. Some people believe this is an added security measure to prevent theft and fraud. Does signing or not signing rally make a difference?

“See ID”

While some consumers are not signing at all, others are writing the words “See ID” in the signature space on the back of their debit and credit cards. While it seems like a clever idea to leave that card unsigned or to refer merchants to your other form of identification in order to stop would-be cons in their tracks, there are a few things to keep in mind.

“Card Not Valid Unless Signed”

Take a close look at your card. Many of them say this on the back. It does not really specify that the signature has to be your name, so writing “See ID” might be acceptable.  However, this clause is rarely enforced, as the credit card company can not possibly know whether you singed your card and how you signed it and the merchant would have to take a good look at the card to know that the card is not considered valid unless signed. Which brings us to another point.

Merchants

Try as they might to beef up the security of credit cards, merchants and technology are not helping us much. For the signature to even matter, as mentioned before, the merchant would have to take a look at the card, see if it was signed, check ID, etc. Few even bother to do this these days. They ring up a purchase, take the card, run it and hand it back. It’s almost as if they have a “Don’t ask, Don’t tell” kind of policy. Maybe they are just trying to get through their day; maybe they simply want to get their money and let others deal with the issues of credit card fraud on their own. Either way, they have gotten lax, so it is easier for a thief to use a card without authorization.

Technology is not on the consumer’s side either. In this day and age of do-it-yourself card swiping for purchases, you only have to swipe the card, press a button or two and go. No one is checking identities here and PINs do not always protect you. It is easy to bypass the PIN request on most POS machines with a debit card. As for credit cards, rarely do you use a PIN unless at an ATM.

Your best bet? If you would prefer not to sign your card, do not leave it blank. Write “See ID” in bold letters with permanent ink. Keep the card safe and secure at all times, lessening the chance of a thief getting their hands on it. When using your card at a merchant who does run the card for you, offer up the card with your ID. Insist they take a look. This protects you, even if it annoys the merchant. However, your insistence might also lead some store clerks to start requesting ID and checking cards. At the very least, you can be an example in credit card integrity.

You might not be able to completely prevent fraud and theft, but you can do your part to protect yourself and encourage merchants to offer a more secure environment for the use of credit and debit cards.

Which Credit Card Rewards Program is Right for You?

Credit Card Rewards

Today, the choices in credit card rewards programs is vast and diverse, and to some consumers, having so many choices can seem overwhelming. However, there is a way to make things a little easier on yourself when it comes to choosing a credit card rewards program. You don’t want to go with just any old program. If you do, you might not see benefits that really suit you.

Lifestyle and Needs

Consider your income, spending habits and the way you pay your bills, especially a credit card bill. If you can pay the balance off every month, avoiding all that added interest, you have more flexibility in your choice of cards. If you will be carrying a balance, keep in mind that you will be paying more in interest, and it can take time for rewards to really add up. Look for a card that will benefit you most. If you need to save for something, get discounts on particular items and services that you frequently utilize, need to travel often, or just want cash back rewards, there are cards out there for all of that.

Options

Once you have considered your options for rewards, you need to take a look at and compare several cards to see who will give you the best bang for your buck. Ideally, you want plenty of benefits as well as a low rate. Compare other fees as well, like the annual fee, cash advance, late fees and other charges and look at just how your awards accumulate and how long it will take to be able to benefit from those rewards. Choose the card with the best balance among all of these things.

Read the Tiny Print

Some rewards programs have yearly and lifetime limits. Some are simple and straightforward while others are quite complicated. Be sure you understand what you are getting into and try to find a rewards program that does not leave your head spinning in the end.

Once you have found the card that best suits you, apply for it. Once you get it and start to use it and pay on it regularly, you can watch those perks and rewards really start to work for you. If you use it just right, a credit card can bring you lots of freebies from clothing to vacations and more!

Credit Card Interest Rate Hikes and Opting Out

Identity Theft Introduction

Credit card companies often exercise their right to raise interest rates for any reason at all. Even with an immaculate credit score and history and a long-term account in good standing, you might not always be free from that coming rate hike. Fortunately, all consumers have to be notified of this increase in rates before it goes into effect so they can be prepared. Most, but not all, credit card companies have an opt-out option that allows you to forgo these interest rate increases, but what doe it mean and what should you watch out for?

Opting-Out

In a nutshell, opting-out means you will send the credit card company written communication telling them your wishes to opt-out of the coming rate hikes. Be sure to check your terms and conditions closely to ensure that your company does, in fact, offer this option. Typically, you will be allowed to continue paying within the current terms and conditions until your balance is zero. However, many companies will most likely want you to pay off your balance in full or as quickly as possible and your card might be canceled, since you have declined the change. This gives you the opportunity to find a card more fitting to your wants and needs. However, you want to be careful and watch your step. There are some mistakes you just don’t want to make when opting-out of a credit card interest hike.

Don’t Continue to Use the Credit Card

If you inform the credit card company of your intention to opt-out and then continue to use the credit card in question, your use will nullify your wish to opt-out and your account will remain open. You will now be subject to the new interest rate. When your write that letter stating your intention to opt-out, set that credit card aside or get rid of it. Do not use it again.

Paying Bills

If you have some or all of your bills set up to be paid automatically using the credit card you are opting out of, be sure to change this information immediately and set up other arrangements. You do not want your bills to be late or not paid, and if your card were to be used, the nullification of the opt-out applies and you will be subject to those higher interest rates you wanted no part of in the first place.

Also, be sure that any company or retailer that you shop with online has all of your billing information updated. If the card you opted out of is stored in their system and accidentally used, it could mean voiding your opt-out and incurring higher rates. Make sure everything is up to date and all should go smoothly.

The Card

Protect yourself from fraud and identity theft by shredding or cutting up the card you are opting-out of, as opposed to just tossing it into the trash. You can also recycle your card using nifty craft ideas. Read up to protect your personal information and identity and take every precaution. Should this happen, and you are able to provide proof, the credit card company is not likely to hold you liable. However, you want to focus on prevention rather than solutions to the problem, if you can. It will save you a lot of time, effort and hassle.

Remember, you don’t have to sit back and accept the new rate increases from your credit card company. You can opt-out. Just be sure to follow the protocol to protect yourself, your finances and your credit score in the process.

Why Your Small Business Should Consider a Credit Card

Choosing Credit Card

Many small businesses shy away from credit cards, fearing that the debt will eat up their profits or thinking there is just no reason for a small business to worry about having a credit card. Let the big boys handle the plastic, they say. Small business owners often think it is simply better to pay by cash or check for everything they need. The truth, however, is that having a credit card can be an asset to a small business and has many benefits as well.

Accounting

All businesses, whether they are small, large, or in between have some sort of accounting process to track both their expenses and their revenue. Accounting can be a big headache and requires great attention to detail. A small business owner will want to streamline the process as much as he or she can. In addition, one would certainly want to keep the business finances separate from the personal finances. After all, if you’re digging holes in your personal accounts just to pay for you business expenses, it does not say much about the success of your company.

Having a credit card for your small business can help you to track your expenses closely and easily, and will also help you to keep those personal and business accounts separated. It can also help with record keeping for taxes, so you can take advantage of those business deductions.

Building Credit

Did you think building credit only mattered when it comes to your own name and social security number? Not in the least! It is important for businesses to build up a credit score for the business as well. This gives the business a good name and will open doors later on for obtaining financing, such as small business loans, should the need arise.

Additional Benefits

Depending on the credit card you obtain, you might find yourself receiving added benefits. You could save money on travel, receive travel rewards and added insurance benefits to cover things like accidents and lost luggage. Concierge service is another nice perk you might benefit from. Need reservations? Forgot to pick up a gift and need it in a snap? Your credit card company’s concierge service is just a phone call away and can take care of the arrangements for you. Other perks include savings on purchases for the office as well as rewards programs that allow you to earn freebies.

Whatever the size of your business, there are just too many reasons for you to consider obtaining a credit card for the business. As long as it is used responsibly, a credit card can be a beneficial financial asset that will help your company to get off to a good start and move it forward to success.

Hidden Credit Card Perks

Credit Card Rewards

Some people may be well aware of all the perks their credit card offers; others might think they have a decent interest rate and a little bit of reward coming to them and that’s it. However, credit cards often offer more than just convenience with a little reward. Here’s a few things to know about often hidden perks:

Roadside Assistance

Car break down? Got a flat? Stuck in the middle of nowhere? Call your credit card’s customer service line and they’ll send a tow-truck out to help. Even if you’re locked out of your car, they can get someone there to help you. Often, this perk will save you some money on the service itself, as much as $50 to $100, simply for using the credit card company’s referral service. This is not true of all cards though. Sometimes, you might simply end up with a referral and no savings. Still, it’s a good perk to have when you’re stuck out on the road and need a little help.

Price Protection

Buy something for full retail price only to find a great deal of savings on the same item within 60 days of the initial purchase? No problem. The credit card company will refund the difference. Credit card companies do set a limit on this, but it is typically reasonable, about $250. Of course, there is a yearly limit, but you are not going to frequently be buying things and finding huge savings after. There are some excluded items and excluded sales and you will need to be willing and able to produce both the original receipt and a printed (non-internet) sales ad that shows the difference in price.

Get Cash Without an ATM

No ATM? No time to find one? Just don’t want the fees? Some credit cards will work like a debit card, allowing you to ask for so much cash back, depending on both your credit card and the store’s limits. It is not a cash advance, so you avoid the fees for that, but are still subject to the APR, as it is considered a purchase. It is a great and convenient perk, however, only available with certain cards and at certain merchants.

There are tons of other excellent credit card perks, both hidden and well-known. These are some of the best little known perks. Hope they give you some added leverage and insight into just what your credit card can do for you.

Save Yourself from Credit Card Debt – Tips to Curb Your Spending

Credit Card Debt

Having a credit card is nice. It is convenient and can even bring you many benefits and perks. However, it is also a tempting little piece of plastic that could have you singing the financial blues if you’re not careful. Before you race of to the store and say “Charge it!” here’s a few things to consider that will help your curb your credit card spending.

Money in the Bank

If you don’t have the money in the bank to write a check or make a cash withdrawal to cover your purchase, can you expect to pay off the balance on your credit card? The answer could be yes or no. It all depends on your particular financial situation. This does not mean you should not make the purchase with your credit card. You simply need to consider if the purchase will be worth the added fess and interest or if it would be better to just pay cash.

Minor Purchases

Try and make the interest rates worth it. Don’t run out and buy something on credit that will only cost you a few dollars. You could wind  up paying double. Save your plastic for the bigger purchases and make the interest worth the money you will have to pay.

Can You Afford It?

This is not so much about your bank balance as it is asking yourself if you can really afford to use that plastic. If you’re struggling to pay your basic living expense, you probably need to put the card aside an not use it until things get better for you financially. Sure, you might have a minimal credit card bill to pay every month, however, you won’t be racking up the charges, fees and interest.

When times are tough, that credit card can seem even more enticing than ever; almost like a lifeline. However, credit cards were never intended to pay your living expenses for you. Using them when you do not have the money to pay can only add to your stress and debt. Remember, a credit card does not entitle you to a freebie. You are still responsible for payment. It’s simply a way to get something now and pay later or over time. Finding yourself unable to pay at the end of the month could lead to not having that card, or any credit card at all, in the future, and could seriously damage your credit score.

The Bottom Line

Only use your credit card for bigger purchases and only when you know  for sure that you have the finances to back it up. If you’re in a bad boat financially, put it away until things are looking up. For those who really only intended to have a credit card for emergencies, remember to keep it that way. A nice new dress does not qualify as an emergency. Hide the card so you are not apt to use until you need it.

By putting these simple tips into practice, you will find yourself thinking more consciously about your budget and spending habits, curbing your debt and easing your financial burdens.

Alternative Credit Cards Worthy of Consideration

Choosing Credit Card

We all know much about traditional credit cards. Those are the ones that are right in front of our faces in advertisements; the Visa, MasterCard, and Discover;  as well as the use-practically-anywhere-and-get-on- with-your-day-kind-of-cards. However, those are not the only credit options out there. There is a wide variety of options from secured cards to prepaid cards and so on. Here, we will touch base on some  secured options that most consumers do not even think about until it is set before them for one reason or another.

Bank Account Secured

This kind of credit card is a really good option for someone who is able to maintain a reasonable bank balance without overdrawing or overspending. It can help you to control your spending as well. This kind of credit card comes from your own bank and is secured by a deposit you have made into the bank account. The credit limit is equal to the deposit. If you can not make a payment, it comes out of your deposit, lessening the credit limit. This is great for those who have had tough financial times and are looking to rebuild their credit. However, don;t make it a waste of your time and your money. Make sure your card does not charge interest on purchases, has no annual fee and does report to the credit bureaus.

Home Secured

Consumers need to give this option a lot of thought before choosing. While it is, without a doubt, an easy form of credit for a homeowner to obtain, there can be dire consequences. A Home secured credit card is a card that is attached to your home equity line of credit. It is only for the most responsible and financially stable of consumers. You could easily lose you home if you fail to pay the bill. It’s not a bad idea, but not the best either. Consider the options carefully. An alternative might be to simply tap into your home equity credit line – minus the credit company and attached card – with a low interest rate. This option reduces your home’s equity until you pay it back, however, you do not risk your home itself.

Purchase Secured

If you frequently shop at a particular store, this might be a good option, given that you will pay the bill. Unlike the traditional credit card, store cards have their own qualifications and can often be somewhat difficult to obtain without an excellent credit rating. Of course, there are others who do not really check you credit, but extend the credit  with collateral being based the same way. Purchase secured credit cards are store specific cards where the collateral for later payment is placed in the goods you buy. As long as you 0pay the bill, the goods are yours. Failure to pay the bill gives the store the right to repossess your purchases to try and resell to make back their money.

When it comes to credit, there are a lot of options. The important thing is to explore what is out there, choose what is right for you, make sure the option is reported to the credit bureaus and use it responsibly, paying that bill on time, so you will have the credit whenever you need it.

Managing Multiple Credit Cards Without all the Headache and Hassle

Introduction

A recent television commercial for a debt counseling and consolidation group states that the average American is walking around with eight credit cards in their wallet. While there is no doubt that there are some consumers out there carrying this many cards, the company’s statement seems a little far-fetched. The chances that the average working American, which makes up a high percentage of consumers, is juggling this many credit cards is both unlikely and a ludicrous supposition. Still, there are many out there who do carry more than one card and balancing them can become quite tricky.

While credit cards are almost a necessity in this day and age, it is probably not necessary to juggle  a bunch of them. Still, if you carry more than one or two, you will want a few tips to take the headache and hassle out of managing multiple credit cards.

Paying that Monthly Bill

You could wait for the statement to come in the mail, write out a check or money order, seal and stamp the envelope and wait for the snail-paced USPS to get it there, hopefully, on time. If you want to make the process smoother and avoid penalties and late fees, you have two options: pay online or set up automatic payments from your bank account. Paying online saves you time, sometimes money and will get the bill there much faster. Simply go to the credit card company website, open your account and click ‘pay online.” Then, you can manually transfer the payment from your bank to the company. This gives you control over when the payment is made and allows you to transfer the money once or each and every month yourself, without having to give out your account information. Automatic payments are perfect for those who can keep enough money in the bank to pay the bill. An automatic ACH withdrawal will be made every month. All you have to do is ensure the money is available and track you bank account balance.

Due Dates

If you carry multiple credit cards, you probably have multiple due dates. This can be a real headache. Decide what you can afford and when and try to coordinate these dates so the payments can be made at the same time or on certain dates you have chosen. Customer service at your credit card company is only a phone call away, and they are likely to work with you to maintain your business with the company.

Consolidation and Limitation

If you are one of those people carrying more cards than fingers, try limiting the number. Pay down your debt and cancel accounts or transfer balances of smaller cards so you do not have so many to manage. Consolidating your cards and transferring balances can ease the burden an headache of carrying so many as well as reducing fees and interest and making due dates and bill payment an easier task to handle.

In the end, there is no reason not to carry more than one credit card. In fact, with some merchants accepting only certain cards, it is a good idea. However, you don’t need eight, 10 or a dozen cards, nor should you want the headache and financial hassle attached to that. Hopefully, these tips give you a good idea of how to limit the number of cards you carry as well as how to manage them with ease.

How to Put a Halt to Debt Collector Harassment

Credit Repair

Ring. Ring.”Hello?” “Hi, Mr. or Mrs. Such and Such, this is Mr. ABCD from the 123 Collection Agency. We’re calling because you owe a company money, and we now have the account in our possession, so you owe us too! We intend to call you daily and send you letters and drive you nuts with our empty threats until you pay up!”

Sound familiar? There’s nothing like finding yourself in over your head, trying to swim out of the financial cesspool and having to deal with these guys too. You’re trying to pay off your debts to the best of your ability, but they want more, more, and even more. Every time the telephone rings, you dread answering it. Do you resort to sarcasm and hanging up on them? Do you toss their letters aside or in the trash, just to get away from dealing with them, at least temporarily? Unfortunately, these tactics won’t stop these unscrupulous people. Don’t blame the guy or gal on the other end of the line, though. He or she has a job to do. Sadly, that job often calls for them to say rude things and try to scare you into paying them. Even asking them over the phone to stop calling does not work.

Did you know you can put a stop to harassment from bill collectors?

Yes, it can be done. It is simply a matter of knowing your rights and asserting those rights to the agency. Now, this rule does not apply directly to the company that you owe. However, it does apply to the agent they have turned your account over to for collection. The actual creditor is not going to harass you near as much. Sure, they have lost some money, but they have other customers helping them to reap their profits. Collection agencies need every account they can get to help make their money.

Your Rights

The Fair Debt Collection Practices Act, or FDCPA, has strict regulations for collection agencies. These people can not call you before 8 am or after 9 pm. They do not have the right to call you at work if the employer does not allow you to take personal phone calls. Frankly, this means they should not call anyone at their place of employment. They do have to limit how often they call, although some have broken the rules and called many times in one day, typically blaming it on some auto-dialer the company uses. The worst ones will use threats, intimidation and even insinuations that you have commuted some criminal offense by not paying your debt. None of that is legal, nor is the criminal element true.

How to Put Those Debt Collectors on Ice

The answer is very simple. These companies count on the naive consumer who does not know their rights to tolerate the harassment or give in to their horrid tactics. The next time someone calls you for an outstanding debt, be kind and explain that you are in no position to pay the debt in full but are, in fact, making all the effort that you can. Tell them you are sorry that it is not good enough for the collection agency, and then ask for the name and mailing address of the person in charge. Sit down and write a cease and desist letter. Be sure to include your name and the contact information they have been using, as well as the details of the account they have been calling about, so that there is no confusion as to who you are.

In your letter, demand that they cease all communication by telephone, mail and even e-mail, should they have resorted to that. There is no exact form for the letter, however be sure to let them know that you are fully aware of your rights under the FDCPA. This will show them that you mean business. While it is not required, it is a good idea to get this letter notarized before you send it. Always make a copy for yourself and be sure to send it by certified mail with delivery confirmation required. This will provide evidence for your claim should the debt collector ignore you and continue their harassment.

Once the letter is received, the agency has the right to send one last letter, outlining their intent of action. If they fail to cease communication after this, you need to report them to the FTC and your state’s  attorney general’s office. There is a 1 year statute of limitations on such complaints, so don’t wait.

While it is best to pay your bills on time, every month, difficult situations do arise. Hopefully knowing your rights will get the monkey off your back and lessen the stress as you try to get back on your feet, minus all the harassment.