Credit Card Quick

Three Reasons why a Balance Transfer is Right for You

Introduction

Balance transfers are a great financial tool for some consumers. However, like anything else, balance transfers may not be right for you and your particular financial situation. So, how do you decide if a balance transfer is right for you?

1. You are having difficulty keeping track of your credit card payments – If you have more than a couple monthly debt obligations, such as credit cards, car loans and personal loans, a balance transfer may be a great idea because it allows you to consolidate all of your higher-interest rate loans onto one, competitive-rate credit card. So instead of juggling a number of payments each month (and risking forgetting one), transferring your balances onto one credit card can save you time and money and eliminate much of the hassle associated with monthly bill payments.
2. You are paying high interest rates and have been unsuccessful at negotiating lower rates – If you have a credit card or two that has a high interest rate, and you have been unsuccessful negotiating lower rates, it may be time to break off your relationship with your credit card company and instead choose another credit card with an attractive balance transfer offer. Many people choose balance transfers to move their credit card balances from high-rate store cards onto one credit card with a lower interest rate, thereby making the process of paying off their debt a much easier one.
3. You have a payoff game plan – The only time it makes sense to take advantage of a balance transfer offer is if you have a realistic game plan for paying off that debt once the balances are transferred. It just doesn’t make good financial sense to shop for a new credit card with a new balance transfer offer every six to 12 months when your current credit card’s promotional rate has ended. Instead, find a good credit card with a great balance transfer offer and work to pay off that debt during the card’s promotional period. Make sure your repayment plan is realistic and make a commitment to sticking to your game plan so you can enjoy life without debt.

Four Ways to Make a Rewards Credit Card Work for You

Credit Card Rewards

We love rewards credit cards because they reward us for shopping! Rewards credit cards are commonly offered by credit card companies these days and widely used by consumers across the U.S.  However attractive a rewards credit card may seem, though, if you don’t adhere to the card’s terms and conditions, your rewards credit card may not be so rewarding after all.

Here are the top four ways to make sure your rewards credit card is working for you:

1. Apply for a card that best fits your spending habits – Rewards credit cards are a dime a dozen these days, so finding one that best suits you and your spending habits may take some time. However, your persistence will pay off in the form of rewards, so do yourself a favor and research the newest rewards credit cards until you find one that is most in line with how you shop, when you shop and where you shop.
2. Pay close attention to the rewards schedule – Most rewards credit cards have changing rewards schedules, meaning that you earn rewards in a variety of ways each month. For example, some cash back rewards feature rolling rewards schedules that allow you to earn more cash back rewards if you shop at certain retailers at certain times. Take the time to review the rewards schedule for your credit card, and the terms and conditions associated with earning those rewards, and always pay attention to any correspondence your credit card company sends you, as this will likely detail changes to your rewards schedule.
3. Charge! – The only way you will make your rewards credit card work for you in terms of rewards is if you spend on the card.
4. Pay off your balance each month- You can earn all the rewards you want, but if you fail to pay off your balance when your statement arrives each month, the finance charges you will pay on that balance will likely negate any rewards you earned throughout the month. In short, if you use a rewards credit card, pay off the balance each month. If you are the type of spender who frequently carries a balance over each month, then it makes more sense to find a credit card with a low, fixed rate and skip a rewards credit card.

The Top Ways you can Prevent Being “Skimmed”

Introduction

Most of us have already heard about the dangers of “skimming,” which is when a credit card thief tampers with a card reader at the point of sale by placing small device over the actual card reader. This small device actually “reads” the magnetic card of your credit card or debit card when you swipe and – voila! – the thief not only has your card number, but your pin number as well.

Although it may seem unlikely that you can avoid being a victim of a skimming device, there are actually steps you can take to ensure that you’re not the next skimming victim:

• Because, in addition to the fraudulent card reader, bank card thieves place small cameras near the card reader to get a glimpse of your PIN number, it is always best to shield the pin pad with your hand when entering your PIN number.
• Take a look at the PIN pad. If it seems out of place or if it looks any different from other PIN pads nearby (look at other registers), simply don’t use it. You may want to look for hints like tape or exposed wires, which often indicate that it was placed there and doesn’t really belong there.
• If the card doesn’t slide easily into the card reader, cancel the sale and don’t use it. Anytime it seems particularly easy or particularly hard to slide the card into the card reader, it’s a sign to be careful.
• Be particularly careful at gas stations, as these places are most commonly targeted by credit card thieves. The reason: it is quite easy for a thief to place a card skimming device onto a gas station because it is away from store employees and quite easy to gain access to them.
• Remain vigilant when it comes to monitoring your accounts. Thanks to the Internet, it is possible for us to take a quick peek at our credit card activity or bank account activity any time of the day or night, so make a point of checking your account activity once or twice a week; particularly if you use your card frequently.

The Top Four Ways we make it Easier for Identity Thieves to do Their Dirty Work

Identity Theft

The truth of the matter is that the things we do – or don’t do – actually make the job of an identity thief much easier. It may seem rather odd that we are actually helping a thief do his dirty work, but it’s true! Here are the top four ways we often make the job of an identity thief an easier one:

1. We do our banking from a public computer or through a Wi-Fi network. The only way to better protect your personal identity and account information is to bank from the privacy (and safety) of your home. Public networks and public Wi-Fi areas are a hot spot for identity thief activity, as it is much easier for them to gain access to a number of things (through key logging malware), such as account numbers, passwords and other personal information. So, the next time you’re sitting at your favorite coffee shop, leave your online banking and shopping tasks at home.
2. We use unfamiliar ATMs. Using a local ATM for which you are familiar protects you because you are familiar with what the ATM looks like and what the card reader looks like, thereby allowing you to spot anything out of place, such as a card skimmer. Using unfamiliar ATMs does not afford you this luxury, thereby setting you up for identity theft.
3. We pay our credit card bills without looking closely at the statement. There have been many studies that have shown that credit card customers pay for bogus charges all the time, simply because they can’t be bothered with taking the time to examine their credit card statements. In fact, some credit card thieves charge just a few dollars to your card because they know that, chances are, you won’t spot the charge.
4. We toss our receipts. Even if you look closely at your credit card statement each month, do you really remember the exact total of your purchases? Because most consumers don’t hang onto their credit card receipts long enough to compare them to their statement, the door is left wide open for credit card thieves.

The Importance of Financial Communication for Newlyweds

Introduction

We plan for our wedding day for months – even years, but many of us never give finances more than a moment’s thought before we say “I do.” It isn’t any wonder, then, why so many marriages break over finances and money issues.

Before you walk down the aisle and exchange vows – heck, even before you pick your reception venue and choose your maid of honor and best man – sit down and have a frank discussion about money. Because, in the end, after the wedding hoopla has died down and you’re sharing expenses as husband and wife, finances will quickly go from being an afterthought to being front and center.

Here are some of the topics you may want to discuss:

• Your wedding – No, not what color tulips you want at the reception; talk about how much money you want to spend and establish a firm budget. Weddings are wonderful, don’t get me wrong, but they aren’t wonderful when you get in over your head with expenses and spend the first part of your marriage struggling to pay them off.
• Your debt – It is important to be completely open about the current debt both you and your future spouse are carrying, as your fiancés debt will soon become your debt, and vice versa. After you have laid all your debts on the table, so to speak, develop a game plan for paying them off.  And, by all means, consider postponing the wedding until you have gotten a better grasp on your debt load if you or your fiancé are in over your heads with debt.
• Your financial philosophy – Starting a marriage with two, completely separate philosophies about money will certainly create tension in your marriage. Talk openly about your views on spending, about credit card debt, and about saving for retirement. If your soon-to-be spouse doesn’t share your same views, it may be time to have a serious conversation about how you will handle these differences going into your marriage. Remember: it is always best to find out about each other’s personal views and opinions regarding money before the wedding and not after!

The Best Financial Advice for Young Adults

Introduction

As young adults, the thought of finances may be quite overwhelming. But, the fact of the matter is they don’t have to be! Here is a list of financial tips that will never steer you wrong:

1. Your credit score matters – Although, up until this point, you may have given very little thought to your credit score, it is important to understand that a strong credit score can afford you many opportunities, such as the ability to rent an apartment, lease or buy a car and purchase your first home. With this in mind, treat your student loans like you would any other debt and pay them! Student loans are one of the most common reasons young adults ruin their credit score early on.
2. Pay more than the minimum payment on your credit card – Credit cards are great financial tools, but overcharging and paying only the minimum payment can quickly put you in a precarious financial position. Always make a point to pay off your balance every month, but if you find you are unable to do so, pay as much as you can and always, always avoid paying just the minimum payment.
3. Don’t spend more than you make – You may have big aspirations for a nice car and new furniture once you are out of college and in the working world, but your desire for the best of everything can quickly spin out of control and cause you to get in over your head in debt. Set goals and save your money so you can begin buying the things you’ve always wanted. It may take more time than charging everything you want, but it will save you from credit card woes in the future.
4. Always contribute to your retirement accounts – Contributing to a retirement account when you are 40 years from retirement may seem silly, but the truth is that you can accomplish so much by starting early when it comes to saving for retirement. In addition, if your employer is matching your contributions and you don’t contribute, it’s like throwing money down the drain! Always, always, at the very least, contribute as much as your employer will match.

Examining the Value of Credit Card Debt Protection Products

Credit Card Debt

You have likely encountered the request from your creditor to enroll in their credit card debt protection program. However, what is a credit card debt protection program, and is it something you should be considering?

Americans are known for many things, and running up a considerable amount of debt is one of them. Creditors are banking on this because it means you may want to consider protecting your finances and your credit if something catastrophic happens. And that’s where credit card debt protection comes into play.

Typically, credit card debt protection programs are like insurance policies on the debt you carry from month to month. They are designed to pay your credit card bill should you lose your job or experience some other type of financial hardship. However, this protection doesn’t come free, so it’s up to you to decide whether the cost of a credit card debt protection plan is worth your time and money.

Here’s what we know:

• In 2009, credit card consumers paid out more than $2.4 billion for debt protection products to the nine largest credit card issuers.
• For every dollar you pay to the credit card company for debt protection, you receive about 21 cents in benefits. The credit card company, other hand, earns about 55 cents out of every dollar you pay in debt protection fees.
• Monthly fees for debt protection programs range anywhere from 85 cents to $1.35 for every $100 of debt. To put this into perspective, expect to pay between $500 and $800 per year for debt protection for a $5,000 balance.
• Premiums paid out by consumers for debt protection vary widely, as states oversee this type of insurance.

Debt protection products usually work by suspending monthly, minimum payments or even cancelling out a balance due to illness, unemployment or death of the cardholder.

The bottom line is that the value of these products is difficult to measure. Some advocacy groups, like the Center for Economic Justice, criticizes the sheer cost of these insurance policies and state that many cardholders could be ineligible to receive benefits if they ever should need them. For example, an individual working part-time who loses his or her job will be unlikely able to claim benefits.

Your best route to take when deciding whether a debt protection insurance product is right for you is to carefully read and review all of the information before signing on.

Why Saving Money on Gas is as Simple as Using your Credit Card

Credit Card Rewards

The price of gasoline has affected everyone in the country in one way or another. If it’s not the pain at the pump, it’s the increased cost of everything from delivery services to groceries. In fact, high gas prices have created income shortfalls for nearly everyone in America.

Aside from parking the car and walking everywhere (wouldn’t that be a great solution?), there is a simple way you can beat the gas companies at their own game – and the solution may be sitting in your wallet.

Gasoline rewards credit cards that offer cash back rewards for gasoline purchase can put a portion of your gasoline bills back into your wallet. In fact, nearly all gasoline rewards credit cards have programs that can save you money on each gallon of gas you put into your car. Over the course of a week, a month, or even a year, these savings can really add up and become quite significant.

Many gas rewards credit cards offer as much as five percent cash back on gasoline purchases which, over the long run, can mean big savings for you and your pocketbook. And, given the fact that the price-per-gallon of gasoline has risen significantly over the past few months, your cash back rewards can begin adding up quicker than you expected.

If you want to use a gas rewards credit card so you can begin saving on your gasoline expenditures, it pays to consider the following:

• Don’t assume the rewards program will stay the same over the course of the year. In fact, many gasoline cash back rewards programs change the terms of their rewards program on a quarterly basis.
• Pay close attention to the amount you must spend before your cash back rewards kick in.  This amount may be quite high on some gasoline rewards credit cards.
• Read and understand the terms and conditions of the cash back rewards programs for your gasoline rewards credit card. It just doesn’t make sense to use a cash back rewards credit card unless you understand how to fully take advantage of all the rewards the credit card company is offering.
• Always make a point to pay off your cash back rewards credit card each month because paying interest on your gasoline purchases will likely negate any benefits you get from your cash back program.

The Top Five Reasons why you shouldn’t Put Away your Credit Card

Introduction

Although it’s been quite a difficult couple of years regarding the economy and the credit card industry, there are still plenty of reasons why using a credit card is still a good idea.

Although it may at first make sense to take your credit cards out of your wallet for good, the truth of the matter is that it may make better financial sense to continue spending on your credit cards, provided you do so in a responsible manner. And here’s why:

1. Simply put, credit cards are the quickest and easiest way to build a strong credit score. If you need to obtain a loan, snag a car loan or secure a mortgage you need strong credit to do so. And you can’t achieve a strong credit score without a strong credit history; and credit cards are the perfect financial tool to achieve the credit score for which you striving. It’s quite easy to get a good credit score going, too. Simply charge on your card each month and pay it off when the bill comes.
2. Many of today’s best credit cards are rewards credit cards, which can offer everything from airline miles to cash back rewards. It only makes sense to use a rewards credit card to purchase the things you would have bought anyway and reap the rewards! Consider how you spend each month and what you spend your money on each month to determine what type of rewards credit card is best for you.
3. Credit cards are usually the most convenient way to pay for purchases. Carrying around cash is often difficult and impractical, and few establishments take checks these days, so carrying a credit for everything from your everyday purchases to travel expenses just makes good sense.
4. In keeping with the convenience of credit cards instead of cash, using a credit card also provides you with financial protection. If you lose cash or have it stolen, you are out of luck. A stolen credit card, however, affords you a number of cardholder rights, thereby preventing very little (if any) loss of money on your part.
5. Credit cards are ideal for bookkeeping purposes, as they allow you to keep track of your monthly expenses through a monthly statement. A credit card statement allows you to track your spending and keep a close eye on monthly expenditures.

Michaels Stores Customers Get Scammed Over Skimming

Identity Theft News

The latest credit card scam has hit the media, and it involves the country’s crafters. Customers of Michaels Stores have fallen victim to one of today’s most prevalent credit card crimes: skimming.

What is Skimming?

Skimming is the process of placing a fake credit card reader over a legitimate one. It works like this: a credit card thief places the fraudulent device over a legitimate one, such as those found at retailers nationwide, and sits back while customer after customer swipes their card into the device. After a day or two, the thief then removes the skimming device and – voila – has hundreds, maybe even thousands, of credit card numbers.

The latest skimming fraud took place in Michaels Stores across the country, including two in Utah. The Irving, Texas-based company confirmed that their credit/debit card readers in several stores have been compromised by skimming devices. Although Michaels Stores claims that less than 90 pin pads were affected, the store has removed all devices – there’s more than 7,000 – from their stores due to what they call an “abundance of caution.”

How They do It

Many criminals have managed to carry off this scam by either distracting cashiers or posing as repairmen. Many times, thieves simply replace the legitimate card readers with processing machines embedded with skimmers.

Although avoiding this type of scam is close to impossible, particularly if the thief actually replaces the real card reader with a fraudulent one, many times the thieves place a small skimming device over the legitimate one, making identifying it a bit easier.

The best thing you can do to avoid falling victim to a skimming scam is to never use a card reader at a retailer or location at which you are not familiar; to not use an ATM machine at a location you are not familiar; and to never use a card reader that looks suspect.

Finally, it always pays to look closely at your credit card statement each month and your bank account each month if you use a debit card. Immediately reporting fraudulent activity is the best way to avoid a considerable amount of damage to your bank accounts or credit score.