Credit Card

Procrastination: The Enemy of Credit Card Payments

January 29, 2016 by arizona

Many of us drag our feet. Especially if it is something, we really do not like to do or just think we have time to do later. Eventually, it all creeps up on us and we either rush to get it done or give up on being on time all together. Procrastination is our enemy when it comes to our credit card payments.

[Read: Problems with Credit Card Payments?]

Why Procrastinate on Credit Card Payments?

Some people just hate to part with their money. When you think about it, they already spent that money so why not pay off the company who allowed them the ability to spend it ahead of time. There are circumstances where we can’t get to sit down right away and pay that credit card when the bill comes in and that is understandable, but don’t just toss it aside and forget it.

Some people even wait because they seem to like the pressure that it puts them under to do things at the last minute. In order to do this, though, we have to know when our credit card payments are due. If we are that precise, then we should be more than able to get that credit card paid in a timelier manner.

Then there are those who need to be in the ‘zone’ to pay bills. If that were the case for the bulk of the population, it would be more difficult for people to gain a credit card because I really do not know many who like the ‘zone’ except financial types.

Procrastinating with Credit Card Payments and the Consequences

When we are caught procrastinating with our credit card payments there are consequences that can put us into debt, if we are not already there. We will acquire late fees and interest. Not to mention, this will not look good on our credit report. If we are procrastinating with credit card payments, chances are, we are procrastinating with other things, as well.

If our check is not direct deposit, chances are we procrastinate getting our check to the bank. If we had to cover a bill and needed to put money into our account, we probably have procrastinated there, too. It is a bad habit to get into and it is a hard habit to break.

Another consequence of procrastinating when making credit card payments is the stress that this can cause. Stress can cause health problems. Not just problems with our heart, but problems with weight gain, seizures and even the brain tissue that regulates our emotions and self-control.

There is also the possibility that our practices of putting off our credit card payments may affect privileges to purchase in the future, our loved ones who depend on us, and disconnection of services because the payments may be held up. If procrastination is our downfall, imagine a somewhat angered spouse that we share a credit card with that has been frozen because we procrastinated in making that credit card payment on time.

How to Kiss Procrastination Good-bye over Credit Card Payments

1. Pay as They Come

This is a surefire way of leaving procrastination in the dust. When the bills come in, make it a point to make the credit card payments soon. That does not mean we can put it off. When we have some free time to sit and watch that movie or TV, or maybe read or relax a little after work. If you run errands, put this on your list, but make it a point that the credit card payments are made within the week they came in.

2. Automatic Payments

Instead of stressing ourselves out over our bills every month, set up as many bills as we can for automatic payment. This way we are not stressing over our credit card payments. This would also be a good time to set up our pay for direct deposit, as well. This way we have less to worry about and have cut down on added trips as well as getting that check to the bank on time. We can usually do this through our banking institution online.

3. Rewards

As a reward, we could also designate a portion of our check to go into a different account (secondary, personal, savings) when we have made the credit card payments on time.

4. Payment Checklist

Whether we make up a list on a sheet of paper, find a list online or use a calendar, it is best to keep track of when bills are due and check them off when they are paid. There may even be an App for that from our credit card company. There are quite a few mobile calendar apps out there for bill payment.

5. Pre-Set the Amount

Do not try to go month by month to adjust the amount to pay. Predetermine the amount and stick to it. If we have to think about how much to put on that bill every time it needs to be paid, we will end up putting off making the credit card payments more often than not.

[Read: Consolidate Credit Card Debt Instead Of Sticking To Minimum Payments]

6. Accountability

This is just as important as anything else is here. Share our goal with someone who will understand and support us and ask them to help us stick to our goal. Procrastination is one of the hardest habits to break because it has usually spilled over to other areas of our lives. We become passive and avoid doing things we know we should be doing. Having someone to support our efforts can help us get out of the rut and back on the road.

Problems with Credit Card Payments?

December 27, 2015 by arizona

There have been several ways to improve your credit, but one very easy way to ruin it is to procrastinate on making your credit card payments. One late payment, or it being made just-in-time, may not seem like a big deal to you. To a bank, managing your credit includes being responsible for making your payments on time.

[Read: Using A Balance Transfer Credit Card]

Making payments at the last minute is a habit that is easy to establish, and very hard to break later. A change in pay day because of a holiday, a shift in due date, or the way payments are verified and entered may result in late payments. The thrill of making the credit card payments at the last minute might result in higher fees, late payments, and stress related problems for you personally. A few tips to managing your credit well, and making your payments:

Make a reward fund for paying bills on line
Take advantage of auto pay/direct deposit programs
Use a checklist, or reminders for payments
Pay the amount from the budget
Check for tools already in place

Planning for the payments

A checklist of weekly bills to be paid can be its own reward, if you are the type of person that enjoys watching the things you need to do disappear off the list. Even if this isn’t a motivating factor for you, insuring that each bill gets taken care of in a timely manner will remove the possible strain of not wanting to pay it. If you are paid on a time frame that doesn’t suit the billing cycle, a reminder on the calendar will help you remember that a bill is due, so it can be taken care of before it is late.

One reason that credit card payments are late is not being sure how much to pay. There are options for nearly every bill, which may result in internal debates on the correct amount to pay each month. The best strategy would be to pay every bill in full, but occasionally, that isn’t possible or practical. Managing your credit well is much easier if you have an amount that you pay, taken directly from your budget. This way, you know you aren’t going to run short of money, and all the bills are paid

Removing the obstacles

Making sure that the funds are there to make credit card payments and the bills as they come due may be another reason they are not being made on time. Direct deposit has become flexible enough that you can both put savings into your accounts, and have the funds available for any bills. With holidays, direct deposit may allow funds to be available many hours before manually depositing a check would allow. When combined with auto pay programs, either through your bank or where the bill needs paid, you are sure that they are taken care of, making this bit of managing your credit a breeze.

[Read: The Biggest Credit Card Scams in the World]

Some places have automated reminder services that you can set up, or other tools that will help. A few places may allow you to make multiple credit card payments, which insures that each pay cycle contributes towards the bills. Some may even allow excessive amounts to be paid over two months. These can be useful until you develop the habits that allow managing your credit well to be automatic.

Check with each payment processor, to verify when payments are finished. Always use the least-favorable time frame to make sure credit card payments are not late. If a bank processes all incoming payments by 10 am, but it takes 24 to 48 hours for a payment to be verified, you know you need to pay that particular bill no later than three days before the due date (48 hours for the payment to verify, plus the 10 am bank section). Managing your credit well this way insures no late payments.

Rewarding yourself

Even with these tips, sometimes it just is more rewarding to have the money in the bank, rather than in having bills paid. If this is an issue with you, set aside an extra fund for each bill that gets paid on time. For each bill paid, a small deposit goes into this fund. Make sure this is in your budget! But having a fund for bills that are paid on time allows you to have the best of both worlds: money in the bank, and the pleasure of having the bills paid on time.

[Read: Tips for Being a Smart Credit Card User]

Managing your credit has many parts, and insuring that credit car payments are not late is a major section of an overall healthy credit score, and a ever-growing bank account. With credit managing skills – and a budget that allows you to pay down all of the bills you have – you are well on your way to having the good credit habits that will serve you well in your lifetime.

How to Handle Wrong Accounts on Your Credit Report

December 25, 2015 by arizona

If you want to be on top of your credit, and also avoid wrong accounts on your credit report, then it’s important to check your credit report at least once a year. If you’re planning to apply for a major loan, then you will want to check it more often than usual. If you do discover wrong accounts on your credit report, then handling it immediately is crucial, especially if the account consists of a high balance or a status that is negative. For more information about how to handle the discovery of wrong accounts on your credit report, see this article.

[Read: What to Consider When Looking at Your Credit Report]

How does The Wrong Account make it to Your Credit Report?

Occasionally, the wrong accounts can make its way to your credit report by way of human error. It’s possible that someone could have altered the numbers in your social security numbers by mistake, or maybe someone has a similar name to yours and your credit profiles were reversed. However, there are times that these wrong accounts have ended up on your credit report because of fraud or identity theft. If you have multiple wrong accounts on your credit report, then this is the most likely of the cases.

How to get Rid of Wrong Accounts

Luckily, there’s an easy way to clear your credit card if they contain accounts that do not belong to you. Occasionally, the process will work the first time, but there are times that you may have to repeat or take another route in order to finally clean up your credit report.

What steps should you take to clean wrong accounts off of your credit report?

Order your credit reports from the three major credit bureaus which are Equifax, Experian and TransUnion.
Take note of which bureaus show the wrong accounts and which bureaus do not.
Dispute the wrong account with the appropriate credit bureaus.
Send your dispute via (certified) mail so that you create a paper trail (this can benefit you if the credit bureau does not resolve the issue as they should if you need to file a lawsuit in the future).

If you have the proof which supports your claim, then send it by mail, fax or upload. Be sure to send a copy and not your originals. In a perfect world, the credit bureau’s investigation will end in your favor and the wrong account will be wiped from your credit report. If you suspect that your personal information has been stolen, then it may benefit you to add a fraud alert to your credit report. Also note that the thief could open up many different accounts after obtaining your information.

You will also need to contact the company listed on the wrong account on your credit card and dispute the account. It will also benefit you to close the account so that there are no more charges added to it in the future. After the company flags the account as fraudulent, then it will help you to get it removed from your credit report.

What You Should do if the Wrong Account is not Removed

If you’ve disputed the wrong account to the credit bureaus and the business, then it’s most likely because the business confirmed to the credit bureau that the account is in fact yours. If this is the case, then speaking to the business to prove the account is fraudulent is a great step to take. First, have a conversation with the supervisor, manager, vice president or even the president of the company while providing evidence that this wrong account is not yours.

Also, having a conversation with the Consumer Financial Protection Bureau (CFPB) may benefit you by getting the wrong account marked as fraudulent and having it wiped off of your credit report. Do not be mistaken; the CFPB cannot make a company take an action that will end in your favor, but having a government agency involved in the process may encourage the credit bureau along with the information provider to take a closer look into this wrong account. Companies who have a history of not doing as they should can face penalties from the CFPB.

[Read: How And When To Check Your Credit Report]

After you’ve followed all the proper procedures, such as disputing a fraudulent account with on your credit report, then you do have the right to sue a credit bureau. Keeping that paper trail of your correspondence with the credit bureau will prove that you have served your due diligence in trying to resolve this matter. If all else fails, get into contact with a consumer rights attorney who practices in your state. Discuss suing the credit bureau for damages under the Fair Credit Reporting Act.

For even more information on how to dispute wrong accounts on your credit report, check out this YouTube video:

How to Master Your Credit Cards

December 13, 2015 by arizona

Mastering the credit cards used to be difficult for many people. Unless financially savvy, most did not have a clue until it was too late. Now there is so much information out there and so many financial consultants willing to help, that young or old, someone is willing to help the consumer understand.

[Read: How To Dispute Credit Card Charges]

Mastering the Choice of a Credit Card

You need to know how to choose the right credit card that is going to work for you. Here are just a few cards:

Standard Card – revolving balance, no rewards
Balance Transfer Credit Cards – low introductory rate
Reward Credit Cards – cash back, points, and travel.
Student Credit Card – for college students and new to credit
Charge Cards – preset spending limit
Secured Credit Cards – credit is equal to secured amount
Subprime Credit Cards – high-interest card for poor credit
Prepaid Cards – does nothing for credit history
Limited Purpose Cards – used like credit cards with a minimum payment and finance charge
Business Credit Cards – standard business credit and charge cards

Mastering the Research of a Credit Card

Now here is where you are going to put your research skills to the test.

1. Reading the Agreement

Understanding Different Interest Rates
Annual Percentage Rate (APR)
Finance Charge
Prime Rate
Penalty APR
Periodic Interest Rate
Daily Rate

2. Know and understand your fees

Application fee – the fee for the application
Annual fees – fee charged for the convenience of having the credit card
Balance transfer fees – the fee to transfer the balance
Cash advance fee – the fee for the cash advance service
Finance Charge – the monthly charge for carrying a balance past the grace period
Late fee – making a payment after the due date or less than a payment by the due date
Over-the-limit fee – balance beyond your limit
- Return check fee – insufficient funds in checking account
- Foreign transaction fee – for currency made in a foreign transaction

Get to know your credit Card Statement

One of best ways to master your credit cards is to get to know just how to read your credit card statement. You can either have them sent through the mail or get them electronically, once you set up an account online.

A great example I found that explains a credit card statement is “How to Understand Your Credit Card Billing Statement, “at credit.about.com. The article shows what the summary area should look like. It also shows what a payment information area should look like. The monthly interest calculations are pictured so it can be found more easily on the statement. Each section is pictured and explained so that it is easy to become familiarized with the credit card statement.

One of the biggest hurdles to overcome is the ability to master your credit cards instead of allowing them to master you by becoming dependent on them. Try not to carry them unless there is a specific purchase you intend to make. Avoid using the convenience checks or taking out cash advances, as well. They are the most expensive transactions a credit card company offers their customers.

Another way that you can master your credit cards is to keep up with the payment schedule, paying the balance in full, or at least paying the minimum due before the due date. It is best if you keep the purchases you make on your credit card within your budget.

If you are starting to feel like you are being caught up in a credit card merry-go-round, start working towards paying off one card at a time while making the minimum payments on your other cards. This way you will be eliminating your debt and eventually you will become debt free sooner than if, you had continued to pay the minimums on all your cards.

Another way to master your credit cards is to stay on top of them. Know your balances. Whether you are going shopping or making sure that a transaction has cleared. It is a good practice to check your balances. Another reason is to watch your balance for suspicious activity.

To master your credit cards may be as simple as limiting your credit cards. It may be handy to have a fistful of cards, but it is tempting and could cost your credit score. Sometimes it is better to close a credit card account down if it has a high-interest rate. Make sure the card is paid in full before you do this, though. It will have an impact on your score, but a lender looks at your file more than at your score. They will see it was paid prior to being closed.

[Read: Using A Balance Transfer Credit Card]

When you begin to start mastering your credit cards, you need to watch for better deals on interest. If you have any questions about your credit cards you should always contact your customer service. Don’t be shy about it. They are there to explain and help you.

How far are you when it comes to mastering your credit cards?

How To Avoid These 7 Dangerous Credit Card Mistakes You Might Be Making

November 26, 2015 by arizona

Credit cards can be great if used correctly. They may help you make that big purchase you’ve been waiting for or help you build a good credit score, but if you’re not careful you could be doing more damage than good. Get informed about these dangerous credit card mistakes to make sure you aren’t making the wrong choices.

[Read: Five of the Top Money Saving Mistakes People Make]

You’re carrying a large balance over a long period of time.

Sure, credit cards are meant for borrowing money. What many people don’t realize is that just because you may have a high credit line, doesn’t mean you should spend the full amount.

In order to keep your credit in good standing, you shouldn’t tie up more than 30% of your credit limit.
Not only can it damage your credit score, but tying up a large amount of your limit leaves little room for emergencies in which you may need to charge your card.
Using more than 30% of your limit can make applying for loans more difficult.

You only pay the minimum payment

It’s a common yet dangerous credit card mistake to make. Sure, it’s great to meet the minimum payment each month, but what many don’t realize is you really should be paying more.

By paying only the minimum due, it will take you much longer to pay off the bill than if you put down a larger amount.
In turn, taking longer to pay off the card results in paying more interest over time.
In the grand scheme of things, you are actually spending more money than if you just put down more each month.

You miss the due date and pay late

Payment history is the single largest factor in calculating a credit score.

Paying late can greatly affect your credit score, making you look like an unreliable borrower.
It can bar you from future opportunities for loans and credit card applications.
In addition to damaging your score, late payments result in late fees.

You throw out your statement with out reading it over

We’re all guilty of it, you get that monthly statement, scan it over until you find the bottom line, or you throw it out all together without reading it through. Many banks are pushing for paperless statements, which further decreases your odds of reading over the statement. What you don’t know is that in failing to read your statement, you are committing a dangerous credit card mistake.

Without reading through your statement you could be missing charges that you didn’t make.
Whether it’s a mistake on the credit card companies end or due to fraud, if you don’t double-check your bill you could be paying unnecessary charges.
Another reason to read your statement is accountability. It’s a great way to monitor your spending.

You didn’t look into the fine print

It’s very important to read the fine print, on most things but especially when it comes to finances. With out looking into these details you could be committing a dangerous credit card mistake.

You may be unaware of how interest is calculated on your card
Late fees are often explained in the fine print
Cash advance fees may be snuck into the fine print that you otherwise wouldn’t be privy to.

Take the time before signing up for a card or if you already have, before further spending, to know what you’re getting into. It’s a good way to avoid racking up charges without realizing it.

You apply for multiple cards at once.

You’re unsure which card you want, or you need multiple accounts. What you don’t realize is by sending out several applications at once you are committing a dangerous credit card mistake.

When you apply for a credit card, you are signing up for a credit score report. Many people don’t realize that multiple credit inquiries in a small amount of time can have a negative affect on your credit score.
Additionally, the lower your credit score, the worse impact multiple inquiries can have.
Remember, low credit scores can prevent you from borrowing in the future or can prevent you from obtaining good deals with future loans.

Cash advances

Typically, if you are using a credit card to make a purchase you are already spending beyond your means. So if you can’t afford to buy whatever with cash, you probably shouldn’t be buying it in the first place. But aside from that fact, taking out cash advances is a dangerous credit card mistake for these reasons:

The interest rates on cash advances is astronomical.
Interest rates can climb as high at 22% for cash advance
Not only are these interest rates very high, most companies begin to apply interest the moment you take the money.

Rule of thumb: only take out cash advances is you absolutely must.

Also, I found this article really helpful if you’re trying to pay off a Cash Advance Payday Loan!

[Read: Finding a Credit Card That’s Right for You]

Want to learn more about dangerous credit card mistakes? Check out the video below for some more tips and tricks of how to avoid these pitfalls.

Using A Balance Transfer Credit Card

November 18, 2015 by arizona

Paying off debt is a goal most people strive for. No matter if you have a lot or a little, debt can be a thorn in the side, and finding the right way to pay it off can save you money and hassle in the long run. One strategy many people employ is using a balance transfer credit card. Simply speaking, a balance transfer credit card is a card that offers a low or 0% interest rate for all balance transfers during a specific promotional period. If you have a credit card balance with a high interest rate, you may barely be paying the minimums each month, making it close to impossible to reach the finish line of total repayment.

[Read: Finding a Credit Card That’s Right for You]

Transferring that balance to a low or no-interest card, if done correctly, can save you hundreds in interest fees and allow you to pay the balance in full. Depending on the terms of the card, it is possible get an interest-free transfer of anywhere from a few months up to two years. Read on for tips on how best to take advantage of this strategy while avoiding the costly mistakes that oftentimes come with balance transfers.

Read the Fine Print

With a variety of cards from which to choose, make sure the card you select has everything you need. When considering a balance transfer, answer the following questions before making a final decision on a new balance transfer card:

How much credit do I need? If you do not qualify for credit high enough to cover the entire balance that you wish to transfer, determine how much money you will save by only transferring a partial amount, and whether or not it is worth it.
What payment can I afford? A 0% interest rate will mean that any payment will be lower than what you are currently paying. However, if the promotional period is short, you may find yourself paying a higher payment than your original one.
What is the transfer fee? Some cards will charge you a fee to transfer the balance and it will slightly increase the amount of your debt, but it will most likely still be less than the interest you would pay without the transfer.
What are the penalties for paying late or missing a payment? Many cards have strict penalties for defaulting on the repayment agreement, and you can end up paying more than what you would have paid had you left the balance where it was. Be clear on every penalty before agreeing to the balance transfer.
Will I be using the card for a balance transfer only? If you have plans to continue using the card once the balance transfer amount is paid in full, make sure you are happy with the standard interest rate and all other terms that apply to the card.

Convenient and Quick

Once you have been approved, the balance transfer process is relatively simply. You can arrange the transfer online or send a check in the mail. Once your old account has received the payment from the new account, the balance transfer is complete and you will now be responsible for paying the new bill.

Have a Plan in Place

Before you follow through with the balance transfer, have a plan in place to address each aspect of your financial decision. First, determine how long you have to pay off the debt and what the interest rate will revert to once the promotional period is over. You don’t want to end up paying an even higher rate than the card from which the debt was transferred. While you may save money initially from a temporary low-to-no interest plan, a higher secondary interest rate may charge back everything you saved.

Second, realize the negative impact of making purchases on the balance transfer card. Most balance transfer offers apply only to the original transferred balance and you have a limited number of days, typically 30 or 60, before the promotional offer expires. While you may want to direct them in which balance to pay first, the credit card company can apply your payment how they choose, and are likely to choose the option that benefits the company rather than the customer, meaning you will increase the overall timeframe it takes to pay off your debt.

[Read: How To Use Balance Transfer In Debt Consolidation]

Reap the Biggest Rewards

If you want to experience the best benefits a balance transfer credit card has to offer while avoiding the pitfalls, be prepared and have a plan. It is up to you to do the research, find the right card, make a repayment plan, and stick to it. Don’t let the fine print or a surprise interest rate stop you from paying off your debt. The balance transfer option can offer you significant savings if used correctly.

How Many Credit Cards Are Needed For Good Credit

October 24, 2015 by arizona

Have you ever gone out to dinner with your best friends and when the time came to pay the bill, your card had been declined? Have you ever gone grocery shopping and when you got to the front of the line your card had been declined? Soon after were you informed by your credit card company that your credit card account had been closed unexpectedly? Either of these situations could cause a lot of distress. Many people experience the unexpected closing of their credit card account due to various reasons. In this article, I will explain how a creditor can unexpectedly close your account without your consent. The closing of your account can leave you in sticky situations so it’s best to know how to prevent the situation from occurring.

[Read: Key Signs That You Own Too Many Credit Cards]

Unexpected Credit Card Account Closure

The unexpected closure of a credit card account by the creditor can happen for various reasons. Credit card account shut downs can happen for the credit cardholder’s irresponsibility. If the card user is not paying the bill on time, is exceeding the credit limit, or is defaulting on the account, the credit card company will typically close the account. Other card users experience account closures for not using their credit card frequently enough. If you are not spending frequently, credit card companies are allowed to close your account without warning. This is legally allowed because companies feel that if a user is given any notice about their account closure beforehand, he or she would have the possibility to rack up the charges just before the account closure. Since credit card companies are businesses working to make a profit, they often close unused accounts to save on account operating expenses. Unused accounts are costing them money but are not allowing them to make money.

How To Avoid A Credit Card Being Cancelled

To avoid being in an embarrassing and sticky payment situation, it is best to know the steps to avoiding an unexpected credit card cancellation. Different credit card companies have different requirements and spending standards that they abide by. Because credit card companies are all unique, there is no direct way to avoid an unexpected account closure, but I can provide general suggestions.

Be A Good Patron: The most obvious way to prevent your account from being closed unexpectedly by the creditor is to be a good customer. Pay your bills on time and every month. Also do not exceed your credit card limit and do not spend money that you cannot afford to pay back.
Use Your Card: The second most obvious way to prevent your account from being closed is to use your card. Making regular purchases keeps your credit account active and the credit card company pleased. If the credit card company is making money from your spending, they will not close your account.
Keep Your Account Active: Whether you use your credit card as often as recommended or not, you can still keep your account active, even with little spending. If you are spending frequently and paying responsibly, your account will automatically be active. It is recommended that if you do not plan on using your credit card often, make one purchase on the card and pay it off slowly. Doing so will keep your account’s activity level high, while keeping your credit card bill and actual spending low.
Consider Closing The Account Yourself: If for any reason that you have a card and you have decided that you do not like having it for various reasons, close the account yourself. You can always find a more suitable credit card and cancel the old one. Often people close their own credit card accounts due to high interest rates or lack of perks and benefits. Just ensure that you replace it prior to closing the account to prevent an increase in your credit utilization ratio.

How Many Credit Cards Are Needed For Good Credit?

On average, Americans own 2-4 credit cards. With that being said, there is no ideal number of credit cards that one should own in order to obtain good credit. How many credit cards an individual has is variant on his or her financial needs and goals. However, having more available credit is better than having little available credit when trying to build credit. At the end of the day it’s about how well you manage the credit cards that you do have.

[Read: Finding the Best Cash Back Credit Cards]

Whatever your decision is for the amount of credit cards that you want to own should suit your lifestyle and financial goals. Think carefully about the responsibility of owning numerous cards. But also think about the benefits and assistance that credit cards can provide you for maintaining your life and financial goals. Many banks such as Bank of America offer wealth management classes to get you started.

How to Choose a No Foreign Transaction Fee Credit Card

October 17, 2015 by arizona

Whether you are a globetrotter or not, getting stuck with foreign transaction fees is a nuisance after an overseas trip or online shopping spree. Here in this article I will explain when foreign fees are issued and how to find credit cards that allow you to avoid the fees in order to save money.

[Read: How Many Credit Cards Are Needed For Good Credit]

Travelling outside of the U.S. can be a rewarding experience. But do not ruin your trip by racking up numerous foreign transaction fees. Shopping online from a foreign company might discourage you to buy after the additional foreign transaction fees are taken into consideration. Foreign transaction fees can make up to 3% of your final bill and can add up very quickly.

Foreign fees are issued when a US cardholder travels overseas and uses their card. Another cause for the fees is shopping online from a foreign company. Many times the fees go unnoticed and build up until the end of the month when a credit card statement is issued. This can be financially stressful and upsetting for many cardholders. Luckily for us, many credit card companies offer cards that waive the foreign transaction fee completely! Below are some tips on how to chose a no foreign transaction fee credit card.

Tip #1 Maintain a good credit score

Credit cards with the best benefits require you to have a good credit score. Credit cards that offer no foreign transaction fees are no different. Maintaining a good credit score will give you more options when choosing a credit card company. With a good credit score, your credit card limits are often much higher than someone who has bad credit. Lower interests rates and no foreign transaction fees are often some of the many benefits of having a credit card and good credit. Use your good credit to opt for the best benefits, including no foreign transaction fees.

Tip #2 Shop Around and Compare Benefits

When shopping around for the best credit card for you, look closely at the benefits offered and compare them to each other. Benefits that might sound good may not be as beneficial to you as other benefits. For instance, earning travel miles might sound like a good bargain, but not for a cardholder who only travels sparingly. Examples of benefits that some card companies might offer may include any of the following:

No foreign transaction fees
Travel mileage points
Cash back
Low interest rates

Think about your spending habits and which benefits will suit your lifestyle the most. Nerd Wallet is a website that acts as a search engine for consumers looking for the perfect credit card to suit their tastes. Nerd Wallet allows you to find the best credit card that suits your needs with the benefits that accommodate your lifestyle. One of the many options that are offered is cards with no foreign transaction fee. You can also search by interest rates and your current credit score.

Tip #3 Choosing Your Currency Wisely

When using your US credit card to make purchases either overseas or online, sometimes you will have the option to pay in the local currency or to pay in USD. The credit card company that you are using will determine which option is the best for you. If your credit card company offers no foreign transaction fees, paying in the local currency is the best option. Paying in the local currency eliminates the need to convert money. Sometimes converting money results in currency exchange fees. If your credit card company charges foreign transaction fees, paying in USD may be a more suitable option. Check with your credit card company to see if they actually charge currency conversion fees. If not, you’re in luck!

[Read: Key Signs That You Own Too Many Credit Cards]

The decision of which benefits and Credit Card Company that you decide to give your business to is ultimately yours. Use these tips to best decide which credit card will suit your overall financial needs. There may even be a credit card that does not offer any foreign transaction fees but has other perks that would make you equally as happy.

How And When To Check Your Credit Report

October 12, 2015 by arizona

Every credit card, loan, credit from bank or store you have ever gotten, from that first credit card you got in school to the first car loan, all those student loans, to buying your house has been building your credit. All those on time payments and payment in full keeps your accounts in good standing which in turn raises your credit score. You have to check your credit report to know what your score is and what affects it.

[Read: What to Consider When Looking at Your Credit Report]

You have a Credit Score … Now What

That car that got you through college and your early career is on its last wheel, so you go out looking for a new car for the family. You were able to get your home a few years ago, but have had some credit card issues but you think that you should be ok. When you do the paperwork for financing you find out that your application was rejected based on your credit score. How could this happen?

Every payment you make or don’t make, run late on changes your credit score. You can keep track of the effects of all of this by regularly checking your credit score. The recommendation is to check your credit score at least once a year, but if there are multiple purchases you are planning or you had some trouble and are trying to get back on track, definitely check into more often.

How to Check Your Credit Score

There are many ways to check your score both those that charge a fee and those that are free, but you want to know a few things before just jumping in. There are three major credit bureaus in the U.S. and they are TransUnion, Equifax, and Experian. These score look at similar factors however the formulas used to achieve your credit score weight the factors differently so the three scores will likely be slightly different. Also if you check your credit score and find something that doesn’t look right you can contact the bureau to get it corrected or removed.

Where to Check your Credit Score

There are a variety of websites that will provide you with your credit score from one or more of the bureaus at different intervals. Credit cards are starting to include access to reports or updated scores on monthly statements for cardholders to improve utilization of credit.

AnnualCreditReport.com – allows one free credit report from each of the three bureaus each year, so you can get all three at the same time or get one at a time and spread them out throughout the year to get a more comprehensive view of your credit health.
CreditKarma.com – allows you to see two of the three bureau credit scores on demand with score reports being updated each month. This site also provides education on how to manage debt and improve credit score, as well as providing opportunities to obtain new credit sources to improve credit score if used appropriately.
Credit.com – allows free access to credit reports each month.

Some of the sites will also allow for on demand credit score updates, so that when you are ready to go looking for that new car or home, you know what you’re working with. Checking your credit score monthly can give you better perspective on your financial health and how to improve your score or maintain a high credit score so you can live your life and buy what you want when you want it.

Credit card companies are starting to include your FICO score on monthly billing statements. Your FICO score is a score using a software program that rate credit risk and is becoming a fixture in the credit world. Receiving your FICO score provides one more piece of information that completes the picture of your credit health.

Outside of the sites that allow you to check your own credit score, there are certain circumstances that entitle you to receive your credit report. Any time an application for credit is denied you have 60 days to submit a request to receive the report the denial was based on, also if you are searching for employment, denied an application for insurance for employment or on welfare you are entitled to receive a copy of your credit report.

[Read: How to Raise Your Credit Score]

The Last Word

Before you fill out any paperwork for an application for credit whether it be for a car, house, store credit card, student loans, take the time and use the information provided to you by this increased access to credit scores to know what you are working with. Look at your credit report to see if there are and errors and get those errors corrected before applying for credit. Taking these steps will set you up for the best chance of getting approved, no matter what you are getting credit to buy.

How To Dispute Credit Card Charges

May 10, 2015 by arizona

In a Nilson report from 2013, fraud in the credit and debit card industry was responsible for more than $11.2 billion lost during 2012. Even worse, as of late we’ve seen major breaches in security with large-scale retailers such as Home Depot and Target. The hackers that get into these databases then steal thousands of people’s credit card information all at once. Those numbers then are often sold for around $120 each, according to the founder of the Identity Theft Council, a non-profit group.

Most of the loss from these breaches was felt by the industries involved in 2012, but we the individual cardholders still had to deal with the worry and anxiety of wondering if we would come out of the crisis with our identities still untouched.

This may cause you great fear as well, and understandably so. Who doesn’t pay for most things on a day-to-day basis with some form of plastic? Thankfully, if your card is compromised, you are not liable for most of those charges if you can dispute them right away. But do you know how to dispute credit card charges?

How To Deal With Fraudulent Charges On Your Debit Card

There are reasons to think that using your debit card as opposed to a credit card is better for you financially, but they actually do not have as much protection in place as compared to your credit card.

Here’s your liability when reporting unauthorized activity on your debit card, according to the Federal Trade Commission:

$0 if you report it before any fraudulent activity.
$50 if you report it within two business days.
$500 if you report it after two-business day but before 60 calendar days after your statement has been sent to you.
Unlimited if you do not report the loss or theft within 60 calendar days of your statement being sent to you.

This is a frightening piece of information if you are one who only checks your bank account once in a while, only when your statement arrives, or perhaps not even then. You could end up being liable for quite a bit. Once those 60 days go by and you haven’t noticed any of the fraudulent charges, it could be the complete nightmare; your bank account could be completely drained and you’re stuck with nothing to protect you against your loss.

So what should we learn regarding how to dispute credit card charges? Well, in the case of debit cards (even if you are running them through as credit), watch your account like a hawk. As soon as anything fishy pops up, this is what you should immediately do:

Call your bank or whoever issued your debit card.
Send a certified letter even though you already contacted them.
Write down everything you did, when you did it, and who you talked to when you called the bank.
Keep at it until the fraudulent charges are settled.

How To Dispute Credit Card Charges

Take the same steps outlined above when dealing with loss or theft on your credit card. Make sure you stay on top of it as soon as it happens, call, write that letter, and record everything you did and who you spoke to. On the up side, your liability only goes up to $50 for fraudulent activity on your stolen card. If only your credit card number was compromised and you still have the card itself, you aren’t liable for anything. Most of the time, the company will just cancel your account and give you a new card with a different number.

How To Prevent The Theft Of Your Debit Or Credit Card

Of course, no one wants to deal with this theft in the first place. Then there will be no need to utilize your new knowledge of how to dispute credit card charges. The Federal Trade Commission has several suggestions to help you avoid these fraudulent charges, or to discover them as soon as you can, thereby limiting your liability.

Never give anyone your account number, unless you were the one calling them.
Never keep your account information where someone else can get it.
Have all your account information and the numbers to call in one safe place.
Always know where your card is during any transaction. Have them keep it where you can see it.
Destroy your old cards and account numbers.
Never put your signature on a blank receipt.
Always go over your monthly statement to check for anything out of the ordinary. If there is online access, try to check every couple of days or so.
Never write down your PIN where anyone else can see it or have access to it.

How To Dispute Credit Card Charges Of Other Types

There are other kinds of charges on your card that you can dispute besides the obviously fraudulent ones. These are called billing errors and can be any of the following:

Charges with an incorrect date or amount
Charges for things that were never delivered as had been agreed upon or that you did not receive
Charges that you never got because your creditor did not mail the bill to the correct address
Returns you made that did not appear on your account

If you are going to dispute credit card charges of this nature, write a letter to your creditor (you will find an address on your statement or online for correspondence regarding billing errors), send it certified mail, and make sure to make a copy for yourself. Make sure the letter includes your accounts numbers and any information you can provide about the charges you are disputing. They must respond within 30 days according to law, and meanwhile you can wait on paying that charge, by law, until it is settled.

When you need to dispute credit card charges or debit card ones, it can be a huge headache. But following the steps we’ve outlined above and taking care of it as soon as it occurs can help you to bounce back quickly. The best step to take is to always be aware of what is going on in all your accounts at all times, so best to avail yourself of all protections available.