Credit Card Quick

Tips for Smart Holiday Shopping

Introduction

Smart holiday shopping starts with a budget and a game plan. Without these two things, your holiday shopping expenses can quickly spiral out of control. Most of us have been in the situation where we charge our holiday purchases to our little hearts’ content, only to be sacked with huge credit card bills come January.

There are a few, simple ways, however, to make this holiday season memorable – without breaking the bank:

• Make your list and check it twice – There is nothing more detrimental to your holiday budget than wandering the stores without a general idea of what you are looking for. It is therefore of the utmost importance to do your homework, nose around and ask plenty of questions so that you can make a list of the holiday items your loved ones are hinting around for. You may also want to cruise the Internet to get a better idea of where to find certain items, to compare brands and to check prices between competitors.
• Create a reasonable budget and stick to it – Heading out the door to start your Christmas shopping without a budget in mind can spell disaster. So, along with your list, decide how much you can afford to spend on each individual. Although it may be difficult to stick to a budget, your wallet will thank you come January, when you will be one of the fortunate few not to have overwhelming credit card debt.
• Get creative and save – Remember that not everything needs to be expensive. It may sound contrite, but many individuals appreciate gifts from the heart as much as they do expensive ones. Use your talent for knitting to create a beautiful blanket for your new niece; purchase a gift card – and free babysitting services – to your brother and his wife; and frame personal photographs in unique and interesting ways for your parents.
• Check your credit card limit, interest rate and related fees before heading out the door. The last thing you need while shopping is trouble with your credit card.

How to Avoid Emotional Spending

Credit Card Debt

I will fully admit that I was a full-fledged, emotional spender. Upset, stressed or excited,  I would always head to the mall for a bit of retail therapy. Unfortunately, most of my emotional purchases came back to bite me.

Those $150 red, high-heeled boots that I thought I absolutely had to have? Yep, they’re sitting at the bottom of my closet. I never did find anything to match them. But, I paid the price for many months as I struggled to pay them off.

I awarded myself with a cruise for my job promotion a few years ago. Unfortunately, the cruise cost more than my job promotion paid and I ended up with a hefty credit card bill that took the better part of two years to pay off.

What both of these purchases had in common were that, given the opportunity to do over, I would have not likely indulged in them. Classic emotional spending mistakes that I wish I could have taken back.

I have since learned the art of controlling my emotional spending by following three, simple rules:

1. I keep all but one of my credit cards at home, locked in my safe. It’s a whole lot harder to make an emotional purchase if I have to travel home first to retrieve the credit card.
2. I avoid my weak spots. I have an affinity for a certain little retail shop in the mall. If I don’t have the money to purchase anything, I simply don’t go there. In fact, I don’t even walk past it. It may sound simple, but many of our little “harmless” trips into our favorite stores end up costing us big.

I wait it out for at least 24 hours. I have learned to “sleep on” any large purchases. In other words, I check out the product, get a price and then head home to think it over for the night. After considering the cost, as well as the length of time it will take to pay it off, I often find myself passing on purchases that, just 24 hours earlier, I thought I absolutely must have.

Is it Time to Break up with your Credit Card?

Choosing Credit Card

The credit card news, as of late, has been anything but positive. The government is tightening the reigns the credit card industry who, in turn, is scrambling to switch up the rules of their credit cards before the new credit card bill takes place. And who is left in the middle of this mess? That’s right: you, the consumer.

All of this mess can make any consumer think twice about even having credit cards anymore. But is the solution to simply cut up your credit cards and live without them?

Although it would make sense that credit cards sometimes hurt credit, most of the time they help credit. In other words, cutting up your credit cards and ending your relationship may not be the best idea, in terms of your credit score.

A Cash-Only Life?

If you plan on living on cash alone for the rest of your life then perhaps ending your relationship with credit cards can work. However, if you plan on financing a vehicle, purchasing a home or refinancing your current mortgage, your credit card relationship is crucial.

This is because credit cards help you establish a strong credit history which, in turn, helps to boost your credit score. Without credit cards, your credit history can be brief, thereby hurting your credit score and your chances of securing any type of financing.

And, given, the state of the current economy and credit sector, a strong credit score is king. Without it, you can all but forget about securing a home loan, vehicle loan or personal loan.

With that said, there are a few things you can do to make your relationship with your credit card company run a bit more smoothly, even in these uncertain economical times:

• If you received notice from your credit card company that your interest rate has been raised, immediately contact your credit card company and request that they cancel the card. They will undoubtedly ask why, thereby giving you a chance to ask if they can lower your interest rate.
• If your creditor refuses to lower your interest rate, you may want to look for another card with a lower interest rate onto which you can transfer your balance. Beware, though, of the balance transfer fees and promotional interest rates, both of which can end up costing you in the long run.
• If you don’t have the option of transferring your balance, the new credit card law allows you to “opt out” of your higher interest rate credit card. If you cancel the card, the creditor must allow you pay off the balance at your current interest rate.

How to Handle a Credit Card Dispute

Introduction

If you had to fight a charge on your credit card, would you know what to do?

It is important that you understand how to handle a credit card dispute so that you won’t be caught in a fight that you can’t handle.

Let’s assume that you made a purchase at a local department store and paid for it with your credit card. When you receive your credit card bill you notice that the department store charged your card twice for the same purchase. Now what do you do?

Under the Fair Credit Billing Act, you can file a dispute with your credit card company to have the charge removed.  It may take a bit of time on your part, but you can get the charge removed if you know which avenues to take.

1. Your first point of contact should be the department store that double charged your purchase. Bring the credit card statement with you and ask them to remove the charge. Chances are they will comply. However, if you have no luck with this approach, consider making a complaint, in writing, and send it as proof to the merchant. Remember to send the complaint via certified mail so that you have proof that it was received.
2. If you still have no luck with the merchant, your next step should be to contact your credit card company and file a dispute. Most credit card companies will want you to submit this dispute in writing. It is important to understand that most credit card companies will only entertain a dispute if it is filed within 60 days of receiving your statement. You may be asked by the credit card company to provide them with proof that you attempted to resolve the dispute with the merchant, which is why sending a dispute letter to the merchant, via certified mail, is so important.
3. The credit card company, once they receive your dispute, will contact the merchant directly to get specifics regarding the charge. If the credit card company finds that the merchant made an error, the charge will be removed. If the credit card company determines that the charge was not made in error then you will be responsible for the charge.
4. The Fair Credit Billing Act specifies that a dispute can only be made with your credit card company if the charge was over $50, and that the merchant must be located in your state or within 100 miles of your billing address.

Examining the Newest Credit Card Legislation Set to go into Effect

News

Starting next week, credit card companies will be forced to make some changes that will affect all of us who carry credit cards.

New Interest Rate/Grace Period Legislation

One of the most prominent features of this area of the new credit card legislation is that creditors must provide their customers with at least 45 days’ notice before they can raise their interest rates or make other changes to their card’s terms and agreements.

This 45-day notice will enable cardholders to decline this rate increase. Although the card account will be closed, the cardholder will have the option of paying off the balance of their credit card at the original rate.

Another feature of the new credit card legislation due to go into effect next week is that creditors must provide cardholders with at least 21 days to pay their credit card bill. As many of us will attest to, many creditors have shortened this window substantially over the last, few years in an attempt to collect their money.

The new credit card legislation, which was enacted in May by President Obama, will not officially go into effect until February 2010, with the exception of the above mentioned laws.

The Effects of the Credit Card Legislation

As a credit card holder, you have likely seen creditors raising interest rates and hiking minimum payments in anticipation of this new law. Another result of this law, says many financial analysts, is that creditors are pulling back consumers’ credit limits and canceling credit cards on unsuspecting consumers.

At this point, it appears to be a bit of a tug-of-war going on between the government and creditors. Many creditors, who anticipate catastrophic losses as a result of the credit card legislation, are fighting back by raising rates and payments before the law goes into effect.

Many financial analysts agree that the new credit card legislation essentially gives creditors an eight-month loophole during which time they can make the necessary changes to counter the changes mandated by the government.

It is more important than ever to remain educated about your credit card accounts, and to carefully read all material that you receive. And, as always, if you don’t agree with your creditor’s new terms and conditions, you have the right to cancel the card.

How to Effectively Use your Credit Card (and not Let it Use You!)

Introduction

There are many consumers who have gotten themselves into a precarious position: they are slaves to their credit card. Sad, but true.

They failed to pay their bill on time, the credit card company raised their interest rates and slapped them with fees and charges, and now they are simply stuck paying a high balance on a credit card with a high interest rate. Plus, now that their credit is in the gutter, they have little chance of transferring the balance to another credit card with a more reasonable interest rate.

Unfortunately, this is not an uncommon occurrence. In fact, many consumers are stuck in this situation because of past mistakes or bad circumstances. With this in mind, it is important to understand that there are things you can do today to prevent this kind of nightmarish situation:

• Read and re-read your credit card’s terms and conditions.

Those loose little papers that come with your bill often provide important information that most consumers simply choose to discard instead of read. Your credit card’s terms and conditions – or, more importantly, changes to these terms and conditions – can have a big impact on the way you use your credit card or pay your credit card bill.

• Always, always, always pay your bill on time.

There is simply nothing more that needs to be said about this rule. All credit card holders should abide by this rule and use it as a mantra, whenever possible!

• Pay more than the minimum. Or better yet, pay it off each month, if possible.

Don’t squeak by each month by simply paying the minimum balance on your credit card. Make yourself a budget and find extra money to put towards your credit card bill. Even as little as $10 or $20 a month can make a huge difference in your balance over the long run!

• Call your credit card company and negotiate a better deal.

If you have been a loyal customer and have always maintained a good standing with the credit card company then you may be in the position to negotiate a better interest rate. If not, then it may be time to look for a better credit card.

The ABCs of Credit Card Ownership

Introduction

With credit card ownership comes a certain degree of responsibility. After all, your credit is on the line.

Making the decision to own a credit card and pay the monthly bill on time, without fail, is a decision which should not be taken lightly. A credit card can be a tremendous convenience, and it can certainly be a practical way to pay monthly expenses without dealing with cash and checks. However, it can also become overwhelming if you don’t approach credit card ownership with financial common sense.

With that said, there are the ABCs of credit card ownership that you should keep in mind should you decide to own a credit card:

• Always pay your bill – no exceptions! Treat your credit card bill just like you would you mortgage or car payment, as neglecting to do this could seriously impact your credit rating. One of the simplest ways to make sure your credit card bill is paid on time is to immediately pay it when you receive the bill. If you make a point to do this every month, then you won’t ever be caught in a situation where the credit card bill simply slipped your mind.
• Be aware of the credit card’s terms and fees. Many credit card owners fail to investigate all of the fees and terms associated with their credit card, and then are shocked to discover additional expenses each month. Remember: it is your responsibility to read and understand all of the fine print associated with your credit card.
• Consider credit card reward programs when choosing your credit card. Many of today’s credit cards include reward programs that offer great incentives on everything from hotels to airfare. Your job is to sort through the different types of credit cards and find the one that is best suited for you. For example, if you are a business traveler, you may want to consider a credit card that offers rewards in the form of free hotel stays. Of course, you should also take the credit card’s interest rate and associated fees in mind when choosing a reward credit card, but it is certainly worth your time to explore your options when considering which credit card is right for you.

The Many Ways in Which Consumers will be Protected Under the New Credit Card Reform Bill

News

The new credit card reform bill, which was recently signed by President Obama and set to go into effect in July 2010, was created in an attempt to reign in credit card companies that many say have simply not played by the rules.

For many of us who have worked to maintain our credit, the new credit card bill promises to protect us from unscrupulous activities commonly played out through credit card companies. For those with poor credit and less-than-stellar credit histories, the credit card reform bill will not provide as much protection.

The new credit card reform bill has many, different aspects, some of which can become quite confusing at first glance. However, it’s in our best interest to educate ourselves on these new laws and to make sure that we are adequately protected against questionable practices.

• Credit card companies will no longer be able to raise rates on your credit card if you are late on any other type of installment loan or utility bill. Called universal default, this practice had many credit card consumers screaming foul. So, if you missed the deadline for your gas bill, you can rest assured knowing that your credit card company cannot penalize you and raise your credit card interest rate.
• Credit card companies cannot charge you finance charges if you pay your bill in full. Called double cycle billing, many credit card companies would add finance charges to a customer’s next billing cycle, even if the balance was paid off in full.
• Credit card companies can only institute a credit rate hike if you fail to pay your bill on time or if the credit card has a variable interest rate.
• Credit card companies must provide customers with reasonable due dates; in other words, they must provide consumers with at least 21 days to pay their bills.
• Credit card companies must provide consumers with fair payment allocation. In other words, payment made to your credit card must be applied to higher interest rate charges first.
• Credit card companies will not be able to charge outrageous over-the-limit fees. In addition, card holders will be able to choose whether to pay over-the-limit fees or simply be declined if they exceed their credit limit.
• Credit card companies must provide clear, easy-to-read terms and conditions to their customers so that consumers can make the most informed decisions regarding their credit.

The New Credit Card Bill and how it Aims to Protect Young Consumers

Credit Card Debt News

For many of us, college is the time we received our first credit card. We all remember the credit card companies coming to our college campuses and pushing credit cards with added perks and gifts. And for many more of us, it is also the time we remember first getting in over our heads in credit card debt.

Credit Card Responsibility

Often times, young adults accept credit card offers without being fully prepared to handle the responsibility. Although the majority of the responsibility lies with the young adult accepting the credit card, many credit card companies, in the past, have willingly given credit cards to young adults who were simply unaware of the related fees and expenses, and were certainly unable to repay the debt.

The new credit card bill, recently signed into law by President Obama on May 22, and set to go into effect on July 1, 1020, will protect, in part, young credit card customers.

Protecting Young Customers

The new credit card bill will essentially prohibit creditors from extending credit to young adults under the age of 21 unless they can prove that they have the means with which to pay off the debt. Otherwise, a parent or guardian must sign for the credit card.

This new law will prevent many young adults from obtaining credit, charging purchases and then having no money to pay off the debt. This will certainly apply for many college students who are already bogged down in debt with student loans and college expenses.

Although the credit industry predicts that this bill will cost them nearly $12 billion in lost revenue, many legislators are hailing this bill as a much-needed respite from the current practices of credit card companies; particularly, soaring interest rates, surprise rate hikes and loads of fees.

Other highlights of this bill will limit credit card companies from imposing interest rates hikes unless the customer is over 60 past their due date, and will prohibit credit card companies from automatically changing interest rates – without notice – on customers that pay their bills.

How Will the New Credit Card Bill Affect Creditors and Consumers?

News

The new sweeping regulations on credit card practices recently signed into law by President Obama has many credit card customers jumping for joy.

Learning from Past Mistakes

In past years, credit was flowing freely and creditors were more than anxious to lure consumers in with promises of teaser rates, gimmicks and reward programs. Many of us took the bait and began charging to our heart’s content.

Fast forward to 2009 and things don’t look quite so rosy anymore. Many of us now find ourselves in quite a precarious position; the economy is in a recession and our credit card debt is piling high as creditors dramatically raise our interest rates and add over-the-top fees. Not only are many of us unable to pay down our credit cards, but some of us are simply unable to keep up with the payments and fees.

New Changes Underway

The new credit card bill, which is due to go into effect July 1, 2010, is designed to come to the rescue of the millions of Americans bogged down in credit card debt and unable to get out from under it. But will this new law affect the way creditors lend out money?

Perhaps. We may see fewer promotional rates, fewer rewards programs, higher interest rates and tougher credit criteria, particularly for those with a short credit history. But in the end, credit card companies are still a business, and for those of who have worked hard to maintain our credit, credit will still be available. In fact, competition among creditors will still exist, thereby providing consumers with excellent credit plenty of options regarding credit cards.

In addition, the new law requires that credit card companies must provide cardholders with notice of a rate or fee increase at least 45 days ahead of time, thereby enabling consumers to make a change, if desired.

The bottom line is that the new credit card laws will put the responsible credit card consumer back into the driver’s seat, and will prohibit credit card companies from imposing certain practices that will only leave credit card customers in a no-win situation.