Credit Card Quick

The Top Four Reasons why Debit Cards may not be so Convenient After All

ATM

It may seem like the best thing to do in this economy is use your debit card instead of your credit card. Although debit cards serve a useful purpose, it is important to understand that they may not be the best choice in every situation. And here’s why:

• Debit cards, although they provide protection from fraudulent purchases, may end up giving you a large headache because your checking account can be drained in the process.  Waiting for your bank to investigate a case of fraud and replace your checking account balance can be difficult because you may not have access to cash during this time, which means you could have bounced checks and the like.
• Often times, if you use a debit card at hotel and gas stations, they impose debit card blocks, which means they charge anywhere from $1 to $100 for up to a few days, which means your access to cash in your checking count could be compromised during this time.
• The use of skimmers by credit card thieves has put many debit card users at risk for fraud. Skimmers, small devices placed over standard card readers, allow thieves to steal debit card numbers and pin numbers and quickly drain individuals’ accounts.
• Debit cards don’t help build your credit score. You may think you’re doing yourself a favor by using debit cards over credit cards, but in the end you haven’t done your credit score any favors.

Credit cards, instead of debit cards, provide individuals with a number of financial protections, and are a great way to begin building a strong credit score. Provided you use common sense and practice responsibility when it comes to using a credit card, it can be quite advantageous to use one. In addition, credit cards can provide consumers with a number of perks, including rewards, travel protection, rental car insurance and discounts, just to name a few.

If you want to begin building your credit, then it pays to start exploring the many benefits of credit cards over debit cards. IYoYouYou

How to Make a Store Credit Card Work for You

Choosing Credit Card

It’s no secret that store credit cards cost consumers quite a bit of money every year. Store credit cards are quite easy to get, and are quite easy to use, thereby leaving many consumers in deep when it comes to exorbitant interest rates and mounting balances.

Although it always pays to thoroughly examine the terms and conditions of a store credit card, including the interest rate and related fees, there are ways to make a store credit card work for you.

In other words, although your favorite store credit card boasts an interest rate high enough to make you break out into a cold sweat, you may actually be able to beat the store at its own game. Here’s how:

• Pay off your balance each and every month, without fail. Using a store credit card can be quite convenient – that is, until you begin paying steep finance charges on your balance. You can avoid paying any fees or finance charges by simply paying off your store credit card before the due date each month.
• Take advantage of the store card’s initial discount. If the store offers you an attractive discount just by opening the account, by all means take advantage of it. However, once again, it is important to pay off your balance when the bill arrives. After all, paying interest on your purchase will likely negate any benefits you received from your initial discount.
• Take advantage of the member benefits of the card. Carefully read any correspondence you receive from your store so you know when to shop. Most store credit cards come with special discounts, coupons and shopping days for card members, so remember to pay attention to these offers so you can save the most money.
• Be aware of your shopping habits. If you tend to spend more because you have a store credit card in your back pocket, it may make more sense to pass on using a store credit card. It may also pay to shop first without your credit card and then return with your credit card once you have given some thought to what you need and what you can afford.

Why it is Important to Pay Attention to your Credit Card’s Spending Limit

Introduction

With everything else we need to be concerned about regarding our finances, it may seem like a small point to worry about our credit card’s spending limit. But ignoring your credit limit may cost you big, in a number of ways.

Your credit card’s spending limit affords you freedom and flexibility and, thus, overspending and going over (or near) your credit limit may affect you in a number of ways. Here is what you need to do to stay safe when it comes to your credit card’s spending limit:

• Set your own personal spending limit. If your credit card has a high credit limit or no limit at all, it may seem useless to worry about spending on your credit card. However, it pays to note that, regardless of whether you stay within the card’s predetermined credit limit, your credit may be affected by your spending. High balances on your credit card not only put you in a vulnerable financial position, they may result in finance charges. In addition, high balances on your credit card can quickly spin out of control and create monthly minimum payments that are beyond your budget.
• Aim to never spend more than 60 percent of your credit limit. Your personal credit score is determined by a number of things, one of which is your available credit, or your debt-to-income ratio. Your debt-to-income ratio is the amount of available credit you have at any given time, so if you spend at or near your credit limit, your available credit is diminished, thereby lowering your credit score. If you make a conscious effort to spend no more than 60 percent of your credit limit, you will not only protect yourself financially, but you will also protect your credit score, as well.
• Never, ever exceed your credit limit. Your credit card company will likely impose fees and higher interest rates if you exceed your credit limit, so it is important to always be aware of your credit limit and to never exceed it. Luckily, online tools can help us keep up to date on our daily balances, thereby helping us to prevent overspending.

How to Make a Balance Transfer Work for You

Introduction

A balance transfer offer from your credit card may be a great financial tool for you. However, just like any other financial tool, you need to understand how balance transfer offers work in order to make the offer work best for you and your personal financial situation.

There are two, major factors to consider when searching for a credit card balance transfer offer: the balance transfer fees and the APR. In short, never accept a balance transfer offer from your credit card unless you are fully aware of all the fees and finance charges that are attached to the offer.

What to look for when using a credit card balance transfer offer:

• Introductory APR – The first thing you will want to note is the introductory APR being offered by the credit card company. Most balance transfer offers come with low, introductory APRs, but it doesn’t stop there. It is vital that you pay close attention to the length of the introductory APR, as credit card companies vary widely when it comes to this. It is quite common to find introductory APRs for as little as six months and for as long as 18 months.
• The default APR – Once the introductory period has ended, you will begin paying interest on your transferred balances. Many credit card companies lure in customers with attractive balance transfer offers, but end up hitting them with high APRs once the introductory period has ended. If you think for one minute that you may be unable to pay off the transferred balances during the card’s introductory period then you must pay close attention to the card’s default APR.
• Balance transfer fees – Once again, the credit card company may be offering a very attractive introductory balance transfer offer, but the details of the offer are often what matter most. Enter the balance transfer fee, or the fee you must pay to transfer your balances. This fee, which is usually a percentage of your transferred balances, may be as low as three percent or as high as five percent. For example, if you transfer a $5,000 balance and your balance transfer fee is five percent, you will be charged a $250 balance transfer fee by the credit card company.

How to Manage your Credit Card Obligations

Credit Card Debt

Credit cards can be a great financial tool and are often a fantastic way to manage our finances. However, when mismanaged, they can create a number of problems that can lead to financial trouble, a low credit score, and plenty of headaches.

Here is what you need to do to manage your credit card obligations so your credit card is working for you, and not the other way around:

• Track your spending using your credit card’s online tools. The very best way to ensure your credit card spending does not get the better of you is to make it a habit of checking your credit card spending and your balance at least once a week. Often times, our credit card balances get quickly out of hand because we simply lose track of our spending over the course of a month. Take advantage of the conveniences of the Internet and mark it in your calendar to check your spending on a weekly basis.
• Always thoroughly review your spending. In addition to keeping track of your balance, it is important to pay close attention to the purchases. The best way to make sure everything is correct on your credit card statement is to keep your credit card receipts and compare them with your monthly statement. Doing so will allow you ensure there are no discrepancies or errors on your statement, and will also allow you to immediately spot any unauthorized charges on your credit.
• Keep a monthly budget. It is always much easier to manage your credit card expenditures when you have a sensible, working budget. In short, you will be able to easily pay off your credit card balance each month when you have the funds set aside to do so.
• Do your best to avoid carrying over credit card balances. Although there may very well be times when you are unable to pay off your credit card balance, do your best to only spend what you can afford to pay off each month. It just doesn’t make sense to pay finance charges to your credit card company if you don’t have to.

How to Make your Cash Back Credit Card Work for You

Credit Card Rewards

We love cash back credit cards because they can provide us with an extra perk just for spending on our credit cards. However, it is important that you pay attention to the details when using cash back credit cards in order to fully enjoy their benefits.

Here’s what you should keep in mind when using your cash back credit card:

• Pay attention to the terms of your cash back program – Many cash back credit cards offer introductory rewards, such as one percent cash back on all purchases during the first six months, for example. But what you may not understand is that, many times, the credit card company will not begin paying out cash back rewards until you have spent a certain amount on your credit card. Pay attention to any tiered systems the credit card company may have regarding their cash back program.
• Pay close attention to the spending terms on your cash back credit card. In short, make sure you fully understand where you can earn your cash back rewards. Many credit card companies, for example, will offer you cash back if you use your credit card for certain purchases, such as gasoline or groceries. In addition, pay close attention to any information you receive from your credit card company each month, as this could detail the monthly cash back rewards retailers. In other words, if you want to reap the most rewards from your cash back rewards credit card, make sure you know where to spend your money.
• Pay attention to the interest rate on the card. Although it is always best to pay off your cash back credit card each month, there may be times when you are unable to do so, so make sure your card’s interest rate is competitive.
• Don’t dismiss a cash back rewards credit card if it comes with an annual fee. Although there are plenty of cash back credit cards that have no annual fee, some companies charge an annual fee. This fee, however, may be quite small compared to the rewards it offers, so always weigh your options before dismissing a card based solely on the annual fee.

Your Options for Rising Credit Card Interest Rates

News

It is no surprise that credit card companies are charging much higher interest rates in the years following the country’s recession and credit crisis. Although it’s true that, in some cases, the rise in interest rates are beyond your control, the truth of the matter is that you may be able minimize some of the effects of rising interest rates if you commit to good credit management habits.

Here’s how to protect yourself from rising interest rates:

• Do what you need to do to never miss a credit card payment. If you maintain a flawless credit history and never miss or skip a credit card payment, you will have much more leverage when it comes to rising interest rates. In other words, if you get notice from your credit card company that your interest rate will be raised, you can contact your credit card company and make a case with them to avoid the interest rate hike. If you have a sketchy credit history, your leverage with your credit card company is greatly diminished.
• Always attempt to pay off your credit card balance each month – If your credit card’s interest rate is raised by the credit card company, it won’t make much of a difference to you if you don’t carry a balance from one month to the next. Plus, if you call the credit card company to negotiate a lower interest rate, it helps to have the upper hand, and that can only happen if you don’t have a hefty balance.
• Because credit card companies must inform you of a credit card rate increase in advance, you can always begin looking for a new credit card before the rate increase takes place. If possible, find a credit card that features an attractive balance transfer offer, or cancel your current credit card and pay off your balance under your current interest rate. Keep in mind that credit card companies must allow you to pay off your outstanding balance under your current interest rate if you reject the interest rate hike and cancel the credit card.

Important Steps you can Take to Protect your Wi-Fi Privacy

Identity Theft

Many of us know we have to protect our privacy when using a public Wi-Fi network, but did you also know that you could be vulnerable when it comes to your home Wi-Fi Internet service? The truth is that others can piggyback and gain access to your home Wi-Fi connection, thereby putting your privacy in danger.

Although most individuals who use your Wi-Fi network will use it simply for their own purposes, the fact of the matter is that there are individuals who can gain access to your personal information, such as your credit card information, through your Wi-Fi network. It is therefore very important to protect yourself on your personal Wi-Fi network.

Do you know how to protect your home Internet security so that your computer and your computer activity are protected?

• The first step when protecting yourself and your Internet safety (including credit card transactions on your computer) is setting up a password on your network. Simply by setting up a password you can discourage nearly every user from hijacking your Wi-Fi connection remotely.

Although setting up a password on your network varies slightly according to the type of router you have, the basic way to get yourself a password is to connect an Ethernet cable to your router so your computer can access the router’s Internal settings through an Internet browser.

• Although a password is the first (and most important step) in protecting your personal information, like credit card transactions, on your Wi-Fi network, there are a few other things you can do, like turning on your network’s MAC (media access control) address. Your MAC address is the physical number that was assigned to your Wi-Fi adaptor hardware in your computer. By accessing the internal settings of your router you can determine your computer’s MAC address and specify it to your router. This works because any MAC address that isn’t specified on your router will be denied access.
• Check your router’s internal firewall program. Most routers have internal firewall programs that can be enabled using the settings menu for your router. The firewall program, when enabled, essentially makes your Wi-Fi network more difficult to access from the outside. Although Windows has its own firewall program built in, many computer experts suggest you invest in a better one.

Lifelong Money Lessons we can all Remember

Introduction

Most of think we are pretty savvy when it comes to our finances, but our credit card statements and bank accounts tell a different story. Perhaps many of us would be better off if we could stick to a few, tried-and-true money lessons.

After all, although many of us have decidedly more complex financial pictures than we did when we were younger, the concepts remain the same.

Here are a few lifelong money lessons we can all stand to remember:

• Understand your lifestyle and what it can support – One of the first mistakes many of us make is living well beyond our means. Understanding what kind of life we can afford to live is important because it requires us to be really honest with ourselves. Although it may initially make you feel more important to own a shiny, new car, struggling to manage the monthly payment will quickly overshadow any feelings of pride.
• Put saving money on the top of your priority list – Saving money each month –regardless of how little it is – is vital if you expect to live a financially secure life. Although most people will agree that this is important, the truth of the matter is that most of us put saving onto the bottom of our priority list. The result: we end up saving very little – if any – at all.
• Understand the responsibility that comes along with credit cards – if you don’t fully appreciate that credit cards can be your best friend or your worst enemy then you’re doomed for failure when it comes to the credit card game. If you make a commitment to spend wisely on your credit cards and pay off the bills each month, you can be sure you will use credit cards, but credit cards won’t use you.
• If you don’t know something, ask questions. Many of us, perhaps out of embarrassment or pride, fail to ask important financial questions and, as a result, find ourselves in deep trouble. Take credit cards, for example: if you fail to fully understand a card’s terms and conditions, you could end up with a card that causes you big problems. Your best bet is to carefully read the card’s terms and conditions and contact the credit card company for an explanation if you don’t understand something.

Study Ranks the Best and Worst Banks for Small Business Credit Cards

Choosing Credit Card

A recent study by Card Hub ranked the best and worst credit cards for small business. The study, which ranked the top 10 credit card companies according to their transparency and the extent to which they extended the new CARD Act protections to their business credit card customers, showed that not all credit card companies were fair and forthright to their business cardholders.

Because the CARD Act, which was enacted in 2009, does not apply to business credit cards, not all credit card companies extended the protections of the law to their business credit card customers. There were a few exceptions, though. Bank of America, in particular, was the only major credit card company to extend all of the protections of the CARD Act to its business customers.

Although many suspect that small business owners will soon be given the same protections under the CARD Act that individuals consumers are now afforded, the fact of the matter is that, at the current time, it can be quite tricky to be a small business owner with a business credit card.

Some of the results of the Card Hub study include:

• Wells Fargo, HSBC and U.S. Bank failed to provide any of the CARD protections to small business owners, and they also failed to provide transparency to small business owners about their policies.
• Citi, Chase and Discover ranked slightly higher than Wells Fargo, HSBC and U.S. Bank because they were upfront when it came to informing small business owners that the protections afforded to individuals consumers under the CARD Act did not apply to their small business credit cards.
• American Express and Capital One extended many (but not all) of the CARD Act protections to their small business credit card owners. It is important to research these credit cards before opening an account so you fully understand the card’s terms and conditions.
• Bank of America was the only credit card issuer to give its small business customers an important part of the CARD Act: They do not increase interest rates on its small business cards until the account is 60 days delinquent.