Credit Card Quick

Why Lost Credit Card Statements are not your ‘Get out of Jail Free’ Card

Credit Repair

If there’s one thing you will need to know is that you are responsible for paying your credit card bill each and every month, regardless of your circumstances. For example, friends of mine were quite surprised to find not only a late payment fee, but a mark on their credit report, when they failed to pay their credit card bill.

Their excuse: they didn’t receive their credit card statement in the mail.

Sorry, but that excuse just won’t cut it in the eyes of your creditor.

Creditors don’t want to hear about lost credit card statements, payments that may have gotten lost in the mail, or nearly any other excuse (real or otherwise) that you may throw their way. You may have some leeway with your creditor the first time this happens, but don’t expect your creditor to be a sympathetic ear to your financial blunders. Take matters into your own hands and make sure the bills get paid.

Because of this, it is important to understand and take care of your monthly debt obligations. Here’s what you can do:

• Make a spreadsheet or other document that clearly marks all debts that require monthly payments, including the mailing address for the creditor, your account number and the due date each month. A spreadsheet will allow you to reference your monthly obligations, thereby ensuring you won’t overlook a payment.
• Set up electronic statements and forgo the paper statement. An electronic statement notification will be delivered, via your email, each month, and your statement will be available online and accessible using a username and password. The email notification may be just what you need to remind you of an upcoming credit card bill.
• Set up automatic payments, if desired. Automatic payments allow you to pay your credit card bill each and every month, at the same time, without a thought from you. If you have trouble remembering to pay your credit card bill (or any other bill, for that matter), automatic payments are definitely the way to go.

Common Misconceptions College Grads have about Money

Introduction

You’ve done it! You’ve made your way through four years of college and are now ready to tackle the world. This time is likely the most important, as far as finances go. In other words, this is the time when you will want to begin building a strong credit score so you can enjoy access to credit to do everything from purchasing a car to buying your first home.

With that said, this is not the time to begin making financial mistakes, as they will likely haunt you for many years to come. Here is our list of the most common misconceptions college grads have about money so you won’t make the same mistakes:

• “I’m staying away from credit cards because they spell trouble” – One of the worst things you can do is avoid credit as a college graduate because your key to a positive financial future is establishing a strong credit history. In other words, the only way to build a strong credit history (and therefore a strong credit score) is to use credit. When used responsibly, a credit card or two can be your ticket to a great financial future.
• “My student loan obligations aren’t a priority” – Student loans, or should I say the failure to pay student loans, are one of the biggest mistakes college grads make, and are one of the biggest reasons college grads find their credit scores in the tank. In short, failure to make payments on your student loans will result in a huge dip in your credit score. Pay your student loans on time, every month, and if your inability to land a job following graduation leaves you financially unable to pay on those loans, immediately contact the loan provider and ask to defer the loan.
• “I don’t need to worry about retirement now.” – Although it may seem like retirement is worlds away, if you begin building your retirement savings now, you will be financially secure by the time retirement age rolls around. Plus, if you begin saving in your twenties, the sheer length of time your money has to grow will result in a substantially larger retirement nest egg than starting in your thirties or forties.

Traveling in Style: Choosing the Best Credit Card for Traveling

Choosing Credit Card

Regardless of whether you are traveling for the first time or the thousandth time, it pays to consider the value of a great credit card. Although credit cards with travel rewards are best suited for individuals who frequently use their credit card for travel, a comprehensive credit card with a number of consumer protections and features are ideal for nearly anyone who uses a credit card.

From rental car insurance to lost or damaged luggage protection and roadside assistance, some of today’s best credit cards do far more than offer you a low interest rate and frequent flyer miles.

Here are a few we really like:

• Capital One Venture Rewards – We like the fact that the Capital One Venture Rewards credit card has no foreign transaction fees and double miles earned on every purchase. The points earned on this credit card can be used toward any number of things, including plane tickets, hotel rooms, rental cars, and even cruises! Although the Capital One Venture Rewards card has an annual fee of $59, we think the cost is worth it, considering the money this card can save the traveler.
• Escape by Discover – Discover’s Escape card comes with its share of perks, including $50,000 primary collision damage waiver coverage (which means you won’t have to file an auto claim through your traveler’s insurance policy), roadside assistance, lost  or damaged luggage insurance and even trip cancellation insurance.  This card is particularly unique, as it offers $500,000 in flight accident insurance. The annual fee for the Escape by Discover card is $60 but, once again, it is usually well worth it.
• The Chase Freedom Visa – In addition to providing cardholders with one percent cash back on all purchase, the Chase Freedom Visa also allows cardholders to earn five percent cash back on certain purchases each quarter. Unlike some cards which only allow cardholders to earn points, the Chase Freedom Visa allows them to earn cash back, which is something everyone can understand and appreciate. This card, because it does not have an annual fee, is particularly useful for the casual traveler.

The Five U.S. Cities with the Highest Consumer Credit Card Debt

Credit Card Debt

It’s no secret that many U.S. families are knee-deep in credit card debt. Between poor spending habits and as a result of the poor economy and job losses, many Americans are struggling to handle the burden of credit card debt.

Equifax recently reported that, for some households, credit card debt burden equaled an astounding 17 percent of their income. What’s even more amazing is this total doesn’t include debt from store credit cards.

Experian has also analyzed consumer spending habits and found that the average consumer now holds an average of $4,200 in credit card debt. One bright light to this number is that it is four percent less than the year before. There are some cities, however, where credit card debt is far above the national average.

Here is a list of the top five U.S. cities with the highest consumer credit card debt:

1. San Antonio, Texas – Residents of San Antonio are now carrying, on average, $5,177 in credit card debt; that’s more than 20 percent above the national average. Jeanie Wyatt, CEO of the San Antonio-based firm of South Texas Money Management, explains that San Antonio’s debt problems are closely linked to the fact that this city is largely comprised of the working-class, and that wages earned in San Antonio are often less than other parts of the country.
2. Jacksonville, Florida – Residents of Jacksonville owe an average of $5,115 on credit cards. In addition, this city has a lower-than-average credit score. Jacksonville’s credit card debt problems come as no surprise, as this area of the country has been deeply affected by the real estate meltdown and mortgage problems.
3. Atlanta, Georgia – If you live in Atlanta, chances are your credit card debt is around $4,960. Atlanta has suffered from the housing market collapse, leading many to spend on credit cards out of “economic desperation.”
4. Honolulu, Hawaii – Honolulu’s debt average is about $4,939 per person, which is 15 percent higher than the national average.
5. Dallas, Texas – Dallas residents are now carrying an average of $4,936 in credit card debt, which is 15 percent higher than the national average. A bright spot in Dallas’ number, however, is that it is four and a half percent lower than last year’s numbers.

Sensible Solutions for Curbing Overspending

Introduction

Tell us about your credit card woes. Is it a job loss, a real estate transaction (or mortgage) gone sour, or is it just about your overspending?

The truth of the matter is that many of us are in significant credit card debt because of our penchant for material goods. If you are an overspender (and trust me, you know if you are), you must make better decisions when it comes to your spending, otherwise you can be assured your future will include the burden of credit card debt.

If it seems as though the mall is calling your name, you need some sensible solutions to curb your need to spend. Here are a few sensible solutions for curbing your overspending and getting your credit card debt and your finances under control:

• Understand who you are – You may be an overspender if: you have maxed out credit cards with little to show for it; you purchase things you never use or wear; or you frequently hide your purchases from your significant other. It’s time to face the music, so to speak, and realize your spending has become more than a relaxing pastime.
• Understand your motives – Why do you shop? Do you shop to distance yourself from the stressors of life? Do you shop because you experience a brief high after making a purchase? Or do you shop because you are consumed with accumulating material goods? You can’t begin to change your way of thinking or your actions unless you really begin to understand why you overspend.
• Take immediate action – The best route to take when overspending is to eliminate the triggers and the cards themselves. Remove the credit cards from your wallet, cut them up if you have to, and identify the circumstances that may trigger an impulse to overspend.
• Maintain a journal – Your journal may include everything from your emotions and feelings to your spending habits. Writing everything down so you can look back on it and reflect is one of the best ways to begin changing your actions.
• Stay away from temptation – This may seem quite obvious, but it’s worth mentioning: stay away from locations and settings where you have a tendency to overspend.
• Develop strategies – One of the best ways to extinguish bad behavior, such as overspending, is to replace it with a healthy alternative. Instead of shopping, call a friend and catch up over coffee; begin reading those books you have stacked in the corner; or volunteer at your favorite charity each weekend.

Going Back to Basics with your Finances

Introduction

Are you finances a jumbled mess? Do you have multiple credit cards and does it seem like every time you turn around you are either bouncing a check or missing a payment?

If so, then maybe it’s time to go back to basics with your finances. Here’s how:

• Make a budget – Not many of us think to create a budget, but this simple act can make a huge difference in how you spend and save your income. Just by making a budget you can better understand where you’re spending your money and why you are unable to make ends meet.
• Make changes in your spending – After you’ve made a realistic budget, you can begin going back to basics by making cuts to your spending. That latte every morning at your local coffee shop could be costing you big and cutting it out could allow you to put an extra $100 on your credit card each month. Remember: small changes can (and do!) make a big difference in your household budget.
• Order a copy of your credit report – One of the best ways to clear up your finances and your credit is to order a copy of your credit report from all three credit reporting agencies. Knowledge is your best friend when it comes to your finances, so correct any errors or discrepancies on your credit report and find ways to improve your credit score.
• Consolidate your credit cards – A great way to scale back when it comes to your finances is to move all debts onto one credit card with a competitive interest rate and an attractive promotional balance transfer offer. But don’t undo all the good you did by transferring balances; put those other credit cards away and make a commitment to stop spending on them while you pay off your balance transfer.
• Find one, great credit card and stick with it – Instead of using retail credit cards with high interest rates and carrying around multiple credit cards, which are often hard to keep track of when it comes time to pay bills, shop around for a good credit card with features that best fit your lifestyle and spending habits.

Factors that Won’t Lower your Credit Score

Credit Score

It seems as though financial experts are telling us every day of the many things we can do to destroy our credit. In fact, we hear so much bad news that we begin to think that, well, everything we do (or don’t do) will have a negative effect on our credit score.

Make no doubt about it: We must remain responsible and vigilant when it comes to maintaining our good credit. But there are a number of things that simply have no effect on our credit (so rest easy):

• Your income – Simply put, your income has no effect on your credit score. In other words, an individual making six figures can have a lower credit score than another individual making minimum wage.
• Your utilities – Failing to pay on your utility bill will not affect your credit score, regardless of what you may have heard. If you miss a utility payment the credit reporting agencies will not know of this because utility companies do not report payments to them. However, there is one exception: if you continually fail to pay your utility bills, the utility company may send your account to a collections agency, in which case your failure to pay your utility bills will certainly put a dent on your credit score.
• Bank overdrafts – Although overdrawing your bank account is an unpleasant, and often expensive, occurrence, the fact of the matter is that is won’t have a negative impact on your credit score, provided you settle your account in a reasonable amount of time. Otherwise, your bank can send your overdrawn account to a collections agency, which will then negatively affect your credit score.
• Your age – The credit reporting agencies do not hold your age against you, just like being of a certain age does not help your credit score. The only thing you may have going for you regarding your age is the time you have to establish a strong credit score.
• Your rent – Paying your rent on time, unfortunately, does not have any effect on your credit score. The only exception to this, however, is if you fail to pay your rent and your landlord takes you to collections for the debt.

The Top 4 Clues that it’s Time to Re-evaluate your Finances

Credit Card Debt

The last few years have been financially difficult for many Americans. These hard times, however, have taught many of us to keep a closer eye on our finances. With this in mind, it is important to identify when our finances are on shaky ground so we can take the necessary steps to avoid a financial meltdown.

The following list of clues will help you identify if it’s time to re-evaluate your finances:

1. You immediately begin to feel stressed when you head to the mailbox – If you get heart palpitations every time you walk toward the mailbox, it may be time to re-evaluate your finances. If you delay opening your mail, or if you fail to even open your credit card statement because you can’t bear to look at the balance, it is definitely time to re-evaluate your finances. Putting your head in the sand, so to speak, accomplishes nothing when it comes to handling your finances; and in many cases, it simply makes matters worse. It’s time to face your financial demons head-on so you can begin heading down a better financial past.
2. You are having difficulty paying more than the minimum payment on your credit cards – Credit cards are a great financial tool if used correctly; if used incorrectly, they can wreak havoc in your life. If you are struggling to pay more than the minimum payment on your credit card, it’s time to either re-evaluate your spending, your budget, or both as to avoid a vicious cycle of hefty finance charges and low, monthly payments.
3. You find yourself using credit cards to handle monthly bills due to a lack of cash – A sure sign of a financial problem starts when you begin paying your monthly bills with your credit card because you have mismanaged your cash flow. Credit card use should be a convenience, not a necessity.
4. Your credit card is near its limit – If your credit card is nearing its credit limit, your spending may be out of control. Pay close attention to your credit card activity over the past six months so you can determine where you went wrong in terms of spending.

How NOT to Improve your Credit Score

Credit Score

We all want to do everything we can to improve our credit scores. Although there are a number of ways to improve your credit score (pay your bills on time, keep your debts low, and establish a strong credit history), there are a number of actions that will do nothing to boost your credit score – and some actions that may even hurt it:

• Closing inactive credit card accounts – A good chunk of your credit score involves your debt-to-income ratio, or the amount of available credit you have versus your income. Although it may seem like closing inactive accounts will boost your credit score, the opposite is actually true because closing an account lowers your debt-to-income ratio. If you want to keep your credit score strong and your debt-to-income ratio even stronger, it is best to leave accounts open and charge on them a few times a year to prevent inactivity charges from your creditor.
• Opening a number of accounts in a short period of time – Some people think that opening a slew of credit card accounts will show a good debt-to-income ratio and, while it is true that the credit reporting agencies are looking at your available credit when determining your credit score, opening a number of accounts in a short period of time may show the agencies that your aren’t properly managing your credit and are becoming a credit risk. In other words, be choosy when it comes to opening new accounts and resist going crazy and opening up more cards than you can handle.
• Not charging on your credit cards – Although it may seem like the best way to get a great credit score is to have credit cards onto which you don’t charge, the truth is that the only way to being building a credit history is by making purchases and showing timely payments. The best way to begin building your credit is to charge frequently on your card, but pay if off in full, each month, as to avoid finance charges. In short, you can’t build credit if you don’t start using credit.

What you need to Know about Going Paperless

Introduction

April 22 is Earth Day, so why not make a commitment to stopping the paper mailings and going paperless?

If you currently receive your credit card bill each month via a paper statement, you may be wondering if it is a good idea to take your credit card company up on their offer to provide you with electronic statements.

Here is a list of things you should know about going paperless with your credit card statements:

• Your credit card company may offer you a number of discounts and/or benefits for going paperless because eliminating the need to pay for paper and postage will ultimately save them time and money.
• If you want to access older statements, your credit card company may charge you for this. Having paper statements that you can file away and access at a moment’s notice may be more convenient if you need to review or access older statements.
• If you need a clear notification that your bill must be paid, you may be better suited to remain with a paper statement, as many people overlook the email notifications provided by their credit card company. If you receive a large volume of emails every day, or if you tend to forget about due bills, it may be best to stick to the paper variety.
• Electronic credit card statements usually have a feature that allows you to set up automatic payments, thereby eliminating the need to worry about making a monthly payment on time.
• Consider how diligent you would be regarding viewing your monthly statement in an electronic version. If you feel you would be more diligent if you had a bill in your hand each month to review for inaccuracies or fraud, then it may be best to keep receiving paper statements instead of their electronic counterparts.
• If you choose electronic statements, consider you will have to remember your user name and passwords. Forgetting these could mean a considerable inconvenience for you.
• Consider the rewards offered by the credit card company for going paperless. Many credit card companies offer a bump in rewards, or discounts on a variety of services, simply for signing up for electronic statements.