Credit Card Quick

How One Credit Card can Teach your Teen Financial Responsibility

Credit Card Types

You may find a number of opportunities throughout any given day to teach your teen the importance of financial responsibility. In fact, it is important that we begin teaching our children the importance of smart spending and money management as soon as they are old enough to understand these concepts.

You may have not thought about teaching your child about finances when shopping, but in reality this is the best time. Consider it on the job training! Real-life situations are often much easier for teens to grasp than lectures. And the easiest way to begin your first lesson money management is by teaching them about credit cards and the importance of responsible credit card use.

• Take your teen along as you spend – Show your teen the process of purchasing items with credit cards. Talk to them about staying within your spending limit and using a major credit card versus a store credit card.
• Examine your spending choices and reexamine whether they were responsible purchases – One of the biggest problems with credit cards for many people is that they are inclined to purchase more on credit cards than they would with cash. So, after you return home from shopping, talk to your teen about your purchases and examine whether they were responsible purchases or impulse purchases.
• Show your teen your credit card statement and talk about the advantages of paying the balance in full – One of the best ways to really give your teen a good understanding about credit cards is to show them your credit card bill. Show them the interest rate on the purchases you made the previous month, and help your teen calculate the amount in interest you will need to pay if you fail to pay off the purchase in full.
• Talk to your teen about spending habits and how they can affect their credit score – and ultimately their financial choices – for years to come – The teen years are incredibly formative as we know all to well, and that goes for money management and responsible spending. Talk to your teen about your finances and allow them to learn from you – and your mistakes!

How to Prevent Credit Card Fraud and Identity Theft

Identity Theft

Do you have the knowledge to help prevent credit card theft?

Unfortunately, many of us do not, which therefore leaves us quite vulnerable to a credit card thief. It is important to understand that credit card thieves are constantly finding new ways to steal other individuals’ credit card numbers and identity. Although we can’t always protect ourselves from credit card thieves 100 percent of the time, there are many things that we can do to help ourselves from becoming an easy target:

• Don’t let a clerk walk away from you when you are making a retail purchase. If your credit card is out of sight it can spell trouble in terms of credit card fraud and identity theft. If possible, request that the clerk remain at the counter with your credit card at all times.
• Never give out your credit card information over the phone unless you have initiated the phone call and you have researched the company’s credibility. Remember: a company will never, ever initiate a phone call and ask for any of your personal information, including credit card numbers.
• Never give out your personal information or credit card information through an email. And never, ever provide information of this kind if a company solicits you by email claiming to be your bank or credit card company.
• Never give out your credit card information on a website that isn’t secure, or one that you don’t fully trust. It is best to always shop with trusted retailers on the Internet and to make sure that your computer’s antivirus and firewall protection are comprehensive and up to date.
• Invest in a good shredder and take the time to shred all of your personal documents, including credit card statements and credit card offers.
• Don’t carry around a wallet full of credit cards. Instead, carry only the credit cards that you will need and keep the rest at home.
• Check your credit card statement carefully and immediately report any activity that you don’t immediately recognize. Remember: many credit card thieves will charge only small purchases so that many credit card customers won’t catch them!

The Top Three Reasons why Credit Card Balances Spin out of Control, And What You can do to Stop it

Credit Repair

You thought you had a good grip on your credit card usage. But then, before you knew it, you were staring at a maxed out credit card and no way of paying it. What happened?

For many of us, spending on our credit cards is not a well thought out decision. We spend – often carelessly – and simply assume that we will pay the bill at some later point in time. However, when that time comes, we often find ourselves short on money and in deep with credit card balances.

Don’t let yourself become yet another credit card statistic. Instead, make it a point to become more aware of your spending so that you don’t find yourself in over your head in credit card debt.

Here are the top three reasons why our credit card balances spin out of control:

1. We don’t pay close attention to our credit card statements – The next time your credit card statement arrives, make it a point to take the time to carefully read the statement. It is much easier to ignore the mounting charges when you simply tear it open and write a check for the minimum payment amount. Simply becoming more aware of your spending can turn your shopping habits around.
2. We fool ourselves into thinking we’ll pay it off soon – Did you ever charge something expensive and fool yourself into thinking that, although you don’t have the money now, you’ll pay it off down the road? For most of us, counting on future income is the wrong move to make. Don’t bet on future earnings to pay off your credit card balances because, chances are, you will be faced with other expenses that must be met and your credit card balances will be left neglected.
3. We carelessly spend – It is common knowledge that people simply spend much more when they have a credit card in their hands. The allure of buying what you want and not dealing with the payment now is very attractive to many people. If you find yourself carelessly spending on your credit card, make a list before you leave the house and stick to it. Also, take a moment before checking out and consider whether you really need to purchase that particular item. Just a few minutes and a little thought can save you from overspending.

How to Dispute a Credit Card Debt Mix-up

Card Security

With the sheer number of credit card users throughout the world, it only makes sense that mix-ups occur. However, what you choose to do when you are pinpointed with credit card charges that don’t belong to you will make a big difference when it comes to your credit score.

If you notice charges on your credit card that don’t belong to you, here’s what you need to do:

• Carefully review your credit card bill to make sure that the charges are correct. Often times, the name listed on the credit card bill may not look familiar because it is the name of the parent company of the business.
• If you have any doubts about the purchase, immediately contact your credit card company to confirm the charges. The credit card company can also provide you with more information regarding the charge, thereby allowing you to confirm whether the charge is yours or not.
• If the amount of the credit card purchase is in question, pull out your receipts and go back to the retailer to clear up the charges. If you get nowhere with the retailer, immediately contact your credit card company, who will then dispute the charges on your behalf.
• If you find an error or unauthorized charge on your credit card, don’t wait to set the record straight. Most credit card companies will give you just 60 days to file a credit card dispute; any longer than that and you can be sure you will end up paying the debt, whether it’s yours or not.
• Always, always, always make it a point to check your credit report, at least on an annual basis. Often times the things we don’t see have the biggest impact on our credit score. In other words, don’t let mistakes on your credit report wreak havoc on your credit score. If you notice any errors or discrepancies on your credit report, immediately contact the proper credit reporting agency so that you can file a dispute and have the matter resolved.

Have you put your Balance Transfer Checks to Good Use?

Introduction

If you have a strong credit score you have likely received balance transfer checks with your monthly credit card statement. If you’ve never put these checks to use, you could be missing out on some great opportunities.

The best balance transfer checks from your credit card come in the form of 0% APR. You may also receive balance transfer checks with three or six percent APRs, which are also nothing to sneeze at. The great things about balance transfer checks are that you have the luxury of lower APRs, even if your credit card APR is considerably higher. Another great benefit to balance transfer checks is that you are often awarded the lower interest rate until that purchase is paid off.

Paying off High-Interest-Rate Loans

Credit card balance transfer checks are therefore great for paying off other higher-interest rate loans. From car loans to other credit cards and personal loans, balance transfer checks can be used for nearly any other type of loan, provided you have the credit limit to accommodate the transfer.

Many people also use balance transfer checks to pay for large things, such as home improvement projects, college tuition or vacations. Still, others simply write the balance transfer check to themselves, deposit the money into their bank account and use the cash for a wide variety of things.

Your Alternative to Personal Loans

One of the advantages of balance transfer checks over personal loans is that they usually come with much lower interest rates and they can be used on virtually anything you want or need. In addition, because you are already a credit card customer, you need not go through any type of loan application or approval process.

Balance Transfer Fees

One of the downsides of balance transfer checks is that you may have to pay a balance transfer fee or other type of fee. Keep an eye out for these fees, as they can often be steep. However, also consider the money you will save if you transfer your higher-rate balances to one with a 0% APR.

In conclusion, it is always best to weigh your options when it comes to balance transfer checks, as they may be able to provide with a low-interest loan to do any number of things.

International Credit Card Scam Busted by the Federal Trade Commission

Card Security

The Federal Trade Commission has once again thwarted a multi-million-dollar, international credit card scam.

This long-running international credit card scam was estimated to have net more than $10 million; but the interesting part is that credit card customers were charged no more than $10 in fake credit card charges, thereby allowing the thieves to get away with the scam for such a long period of time.

For four years the perpetrators charged unsuspecting credit card customers small amounts on their credit card and debit cards. It is still unclear how the thieves got the credit card customers, but the FTC thinks that they may have even gone as far as done credit checks on their victims to make sure the credit cards were legitimate.

This scam, along with the countless scams being busted nearly every day by the FTC, is a clear example of the extent to which credit card thieves will go to steal money. It is also a good time to alert credit card customers to these credit card scams so that we can all be more aware of our credit cards and how we can protect ourselves:

• Check your statement carefully, each and every month. Many of us get into the habit of paying our credit card bills each month and we don’t even take the time to really examine our statement. However, this case is a perfect example of ripping credit card customers off because they simply didn’t take the time to carefully read the charges on their statement.
• Understand credit card scams so that you can be better equipped to fight them. Credit card thieves, unfortunately, are staying one step ahead of the FTC and other cyber-crime-fighting organizations, so it is best to understand the lengths at which thieves will go to bilk people out of millions of dollars.
• Keep your receipts so you can compare them with your credit card statement each month. You may be charged a few dollars extra by a company and not even be aware of it unless you check the amount carefully against your receipt.

How to Best Protect your Identity while Vacationing this Summer

Identity Theft

Summertime is upon us, and so is travel. If you are heading out for a long weekend or a dream vacation this summer, you will likely utilize your credit cards in one way or another.

With credit card usage, however, comes the risk of identity theft. One thing’s for certain: you don’t want to get caught in a financial pickle while enjoying your summer vacation, so here’s what you can do to protect yourself and your identity:

1. Take the majority of your credit cards out of your wallet or purse and carry only one or two credit cards that you plan on using during your holiday. If your purse or wallet should be stolen it will make your life a whole lot easier to call just one or two credit card companies than a dozen. While you’re at it: take your social security card out of your wallet and store it in a safe, secure place, as there is never any reason to carry it around.
2. Before embarking on your vacation, contact your creditors and let them know about your travel. If you let your creditors know the dates you will be traveling, it will avoid the frustration and confusion that comes along when they detect charges that are out of the ordinary for you and freeze your credit card.
3. Don’t let your mail sit in your mailbox for an extended period. The last thing you need is someone gaining access to your personal credit card statements because you didn’t collect your mail for days. Instead, ask a trusted neighbor or friend to collect your mail while you are away or contact the post office and put a stop on your mail until you return.
4. Keep all receipts from your credit card expenditures while you are away so that you can check your bill for discrepancies or errors.
5. Put away the debit card while vacationing and instead use your credit card. If an identity thief gets a hold of your debit card, your checking account can be drained in a matter of minutes. Although you will likely be protected from unauthorized charges on your debit card, it would pose a lot more of a problem to have your bank account money stolen than it would be to have unauthorized charges on your credit card.

The Dreaded Late Fee: How to Avoid It

Introduction

You’ve been waiting for your monthly credit card statement. It seems like it is arriving later and later, leaving you little time to get the money in the mail. Because of the sluggish way the mail tends to run, you’re lucky if your payment makes it in the door ahead of the clock. You did your part, yet the following month, your credit card company still slams you with a huge late fee.

You can not help it that they don’t send those billing statements out way ahead of time, or that the credit card company not only wants that payment by a certain date, but has also decided to consider it late is they receive the payment after a certain time of the day. You also can not help how long it takes the postal service to get your money to the company, and you certainly are not responsible for Mother Nature, who can add to the delays. What you can do, is to be prepared and to help yourself. Here are a few tips to help you avoid paying more than you owe, simply because of late fees:

Set Up Automatic Payments

If you know you can have the money in the bank and are comfortable setting up ACH withdrawals, allowing the credit card company to automatically deduct the payment from your bank account will allow you to avoid those annoying late fees. You’ll want to stay on top of things, however, ensuring that the money is there, you don’t wind up overdrawn. Check your balance and statements often around the time of the withdrawal to ensure that everything is going smoothly and that no mistakes have been made that could wind up costing you more.

Pay Online

Most credit card companies give you this option. You’re payment will post much sooner, ridding you of headache and hassle. Simply do a  manual transfer from your bank account. This is different than automatic bill pay, as you control when this occurs and the frequency of it as well.

Be Prepared in Advance

If you still prefer the tried and true method of sending money orders through the mail to make your payments, know you’re balance and due date in advance. You can call the credit card company (many have automated systems for this) to find out this information before you ever receive the bill itself. Prepare a money order for the full balance or the amount you plan to pay. That way, when the bill comes, you can drop it right back in the mail within 24 hours. Even better, if you know the billing address, you could just send it as soon as you know the balance in advance. Hang onto your money order receipts. You will want proof of payment as well as a way to track that money order, just in case.

Balance Transfers

Transferring you balance to a lower interest card might be another way to avoid those late fees, but watch out! This means you’re carrying an additional balance on another credit card where you could encounter late fees if you are not prepared.

What to Do When a Late Fee Appears

If you genuinely know that you mailed your payment ahead of time, or there was some kind of disaster, such as an ice storm or tornado or earthquake, among others, that got in the way and slowed things down, cal the credit card company. Be honest with them and ask them to waive the late fee. Often, they will do just that, so long as the privilege is not abused.

Credit card late fees don’t come cheap. You want to avoid them altogether or try to get out of them if there is a good reason why your payment is late or you do not deserve the added charge. Following these tips should help you to breathe a bit easier when opening your credit card bill.

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.

Credit Card Cash Advances: What You Need to Know

ATM

Credit card cash advances. A good idea or a transaction you should avoid altogether? Some say yes; others advise consumers to steer clear of cash advances. The truth of the matter is that a cash advance can sure be lifesaver when other funds are limited. While you probably should not abuse the privilege by running out and getting some cash on every little whim, it is nice to have the option if and when the situation calls for it.

Things to Consider

Cash advances really are not the solution for a general cash flow problem. If you do not have enough money to pay your bills and meet your needs, how can you expect to pay off your credit card? Cash advances need to be reserved for emergencies where even though you have enough income, you just can not access the cash right then and there from some other source, but you know you will have the cash soon enough to not only meet all of your living expenses but to pay off what you owe on your credit card balance as well.

That said, there are a few other things you need to know before you run to the ATM to withdraw that green.

Grace Period

For most purchases, credit cards offer a grace period for paying down the balance before finance charges set in. With a cash advance, the grace period typically is not an option, and those finance charges go into effect as soon as you make the withdrawal.

Cash Advance Fees

In addition to any other fees you will already be paying on your credit card and your cash advance, you will incur a fee for your cash advance. This is a percentage (usually 2%-4%) of the amount of the cash advance. If your cash advance is $500, you will be paying a minimum of $10 and a maximum of $20 for the cash advance fee. This can get expensive on top of your other credit card fees and purchases. While you definitely want to take out enough to make the fees worthwhile, you also do not want to take a credit card cash advance and its subsequent fees too lightly.

Interest Rates

Your interest rate, depending on the card you carry and your credit approval, most likely runs somewhere between 12% and 23%. Interest can really add up on purchases alone, so considering that a cash advance can carry an even higher interest rate, you will want to keep this in mind. Assuming you pay off your entire balance by the due date, the interest can still take up a good portion of your balance due. If you only pay the minimum balance each month, it can add up even more. It’s important to be confident that you can pay back the amount of the cash advance along with your additional credit card activity, including the interest. In the end, you could wind up paying a lot more in interest than the sum total of the rest of your balance.

ATM Fees

You also need to know that when you go to the ATM to withdraw that money, the bank who owns the ATM will also be making some money off of your transaction. ATM fees can run $2-$4 per transaction and there is the rare ATM that even charges $5. Still, you want to be aware of the additional fees that you will be incurring, as this will show on your credit card statement, adding to the balance you will be responsible for paying back.

In conclusion, no, credit card cash advances are not a bad idea. They are a great and convenient source of funding when most needed. However, one should approach them responsibly, knowing they can pay back the balance and not overusing the privilege.