Credit Card Quick

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.

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

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.

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.

What every College Student should know about Student Credit Cards

Introduction

Student credit cards are a great way to begin building your credit history and a strong, and are an ideal way to begin your life as financially smart adult. However, there are also many factors to consider when it comes to student credit cards. Here’s what you need to know:

• Compare a number of student credit cards before deciding on which one to apply. It is important to remember that, like any other type of credit card, the interest rates on student credit cards can vary greatly.
• In general, you should not need to pay an annual fee for a student credit card.
• Don’t apply for a student credit card until you have carefully read the terms and conditions associated with the card. If you don’t understand something, call the company and ask questions, as the worst decision you can make regarding a student credit card is applying for a card you don’t thoroughly understand.
• Consider opening a checking account before applying for a student credit card. This will allow you to begin building a credit history and will become an easy way to pay your monthly bill. If you have a bank account with a credit union, you will likely be able to apply for a credit card through your credit union, as well.
• Start your search for student credit cards online. There are so many great websites that feature and compare the latest student credit cards, which will allow you to compare the cards’ features, side by side.
• If you don’t have a steady job throughout college, you will likely need to get a parent to co-sign for the credit card. The federal CARD Act has changed the rules when it comes to student credit cards, so you may need the help of your parents to get your first student credit card.
• Make a commitment to always pay off your credit card each month. Now is not the time to carry a credit card balance and create bad credit card habits that will haunt you well beyond your college years. Charge only what you can afford to pay off each month and begin establishing a strong credit score that will help you do everything from purchase your first car to rent your first apartment.

How to know when it’s Time for your First Credit Card

Choosing Credit Card

A credit card is a big financial responsibility.

Make good credit decisions and you can enjoy a strong credit score. Make a bad move or two and your credit score is ruined. But beyond this, you must also be in a good financial situation before applying for a credit card.

If you want to enjoy the many benefits of a credit card, there are a number of things to first consider. In other words, there may be a number of ways to know when it’s time for your first credit card:

• You have a steady job, with at least a few months of employment under your belt.

If you’ve landed a steady job that you enjoy and you feel like your employment there is stable and the hours and salary are predictable it may be time for your first credit card. Applying for a credit card when your employment is on shaky ground is just not a smart move because you could be stuck with a balance you simply can’t cover.

• You have a checking account in good standing.

Most credit card companies will want to see an open checking account for applicants. Open a checking account, keep it in good standing with a positive balance, and you could be ready to apply for your first credit card.

• You are managing your monthly bills, including utilities, rent and student loans.

If you are currently handling a rent payment, utility payments, and even student loan payments each month you are in luck, as these steady payments are what most credit card companies want to see. In other words, your timely payments show a creditor you are capable of handling the responsibility of a credit card.

• You understand the responsibility that comes with a credit card.

Before applying for a credit card, make it a priority to understand the terms and conditions of the card so you can be certain you are making the right financial choice. If there are terms and language you don’t understand, don’t be afraid to contact the credit card company and ask for clarification.

Why it’s More Important than Ever to Maintain a Strong Credit Score

Credit Score

A strong credit score has always been important, but the past, few years have clearly showed us just how important it is.

Just a few years back, banks and creditors were fairly lenient when it came to lending credit to consumers. Often referred to as the housing boom and the credit boom, it was a time of free-flowing credit, and it seemed as if nearly everyone was being approved for everything from credit cards to mortgages.

Because of this easy access to credit, many consumers simply began neglecting their credit. After all, why worry about credit when getting approved for loans wasn’t just possible, but a sure thing?

The credit industry of today, however, has changed dramatically due, in part, to a variety of factors, including: the housing decline, the decline of the banking industry, high unemployment rates, and credit card legislation.

What does this mean for you?

It means banks and creditors are now decidedly more stringent when it comes to approving consumers for loans and lines of credit. In short, if you want access to credit these days, you must have a strong credit score on your side.

If you fail to have a strong credit score, it may be difficult to:

• Get approved for a credit card – Creditors are lending credit to only those individuals with strong credit scores. If your credit is questionable, you may be able to get approved for a credit card, but don’t expect a competitive interest rate.
• Get approved for a car loan – Automotive lenders, because of a large number of repossessions over the last couple years, are now particular when it comes to approving consumers for auto loans. If you are able to get approved for an auto loan with less-than-perfect credit, don’t expect a low interest rate.
• Get approved for a mortgage – Because foreclosures are still a huge problem across much of the United States, lenders are more particular than ever when it comes to lending money for home loans. If you want a competitive interest rate and an attractive loan program, you must come to the table with a strong credit score.
• Get approved for a home equity loan or line of credit – Just like a mortgage, loans associated with a home are difficult to achieve unless you have a strong credit score.
• Get approved for an apartment lease – Getting approved for an apartment lease may be quite difficult to achieve if your credit isn’t strong. Remember: many things in your life may be affected by a poor credit score.

Important Steps to Take Following a Credit Card Rejection

Credit Score

If you receive a credit card rejection, it may come as quite a surprise, particularly if you have enjoyed easy credit in the past.

Upon receiving a credit card rejection, you will definitely want to investigate and remedy the problem so you can, once again, enjoy access to credit.

Here are the following steps you will want to take following a credit card rejection:

1. Order a copy of your credit report from all three credit reporting agencies – If you are denied credit based upon your credit score, you are entitled to receive a free copy of your credit report. Take advantage of this offer and order a copy of your credit report so you can begin to understand where the problem lies.
2. Fix the problems on your credit report – If you find information that is either inaccurate or incorrect, you will want to immediately dispute the credit report’s information. To do this you will need to provide the credit reporting agency with a written request to dispute the information, along with any supporting documentation. Once the dispute has been submitted, the credit reporting agency will investigate the situation and provide you with an answer, usually within 30 days.
3. Fix the problems in your budget – If you have made more poor financial decisions that have led to your credit card rejection, the first thing you will need to do is make a household budget so you can have a better idea of how your income is being divvied up among your financial obligations each month. You can’t fix your credit problems unless your first understand how to manage your monthly income and expenses.
4. Fix the problems with your spending – If your spending is the problem, now is the time to make decisions that will either positively or negatively reflect your credit from here on out. Order copies of your credit card statements from the last 12 months and carefully review them so you can get an idea how and why you were overspending. In order to remedy your credit problems, you must face the music by taking the time to really understand the mistakes of the past.

Common Questions about your Credit Report

Credit Score

How much do you really know about your credit report?

Most of us know that a credit report is vital for obtaining any type of credit, yet very few of us actually know our credit score or what is found in it.

If you want to learn more about your credit report, you may have quite a few questions regarding the process of building and maintaining a credit report. Here are the most common questions about credit reports and what you can do to build a strong credit score:

Q: Where can I find my credit score?

A: Each individual actually has three credit scores from the three credit reporting agencies: Equifax, Experian and TransUnion. A creditor may pull your credit report from any of these three agencies, so it is important to check your credit through all of these agencies.

Q: Does it cost money to order a copy of my credit report?

A: Each individual is entitled to a free copy of his or her credit report from all three major credit agencies each year. In addition, if you are denied credit, the creditor who denied you credit must tell you from which credit reporting agency they pulled your credit report; you can then order a free copy of your credit report from that credit reporting agency. You may also receive a free copy of your credit report if you were denied employment or insurance based on your credit report.

Q: What do I do if I find inaccurate or incorrect information on my credit report?

A: You can dispute the information found on your credit report with the credit reporting agency. To do this you must provide your dispute, in writing, to the credit reporting agency, along with any supporting documentation. The credit reporting agency will then investigate your dispute and provide you with the results, usually within 30 days. Any inaccurate or incorrect information will then be taken off your credit report.

Q: Who can get my credit report information?

A: The only way a creditor, insurance company or employer can obtain your credit report information is with your approval.

Your Guide to Finding a Good Credit Card Match

Choosing Credit Card

The credit card industry has done a good job of providing a number of credit cards to consumers, from secured credit cards to those with low, introductory rates and rewards programs. It is important to realize, though, that not every credit card will be a good match for you and your financial situation.

The two, main factors to consider when shopping for a credit card include: identifying and understanding your personal spending habits and your financial history, as they will likely determine which type of credit card is right for you.

Here are our recommendations for choosing a credit card that’s a good match for you:

• Low credit score – If you have a credit score below 650, you will likely want to take the time to build up your credit score before applying for a major credit card. If you apply for a major credit card with a low credit score you will either not be approved or you will end up with a fairly high interest rate. With that said, the best bet for improving your credit score is to apply for a department store or gas credit card. Apply at a retailer you frequent as to take advantage of coupons and special deals for cardholders, but remember to pay it off each month as to establish a strong credit history and to avoid paying interest.
• Really low credit score – If your credit score is in the tank because of major credit indiscretions in the past, it is best to start with a secured credit card. A secured credit card is essentially a credit card that requires a down payment for collateral. After making regular payments for a set period of time (usually a year), you can likely then transfer to an unsecured credit card.
• Paying off debt – If you want to consolidate debt and pay it off, you are likely best suited for a credit card that offers a zero-percent introductory offer and an attractive balance transfer option.
• Frequent spender – If you use your credit card frequently throughout month, but also pay off the balance each month, you will likely benefit from the perks of a rewards credit card. Take advantage of the rewards offered by the credit card, but make sure to pay off your balance each month as to not negate any rewards benefits.