About Credit Card

6 Ways Credit Cards Make Life Easier

2009-07-28T03:48:00.000-07:00

Credit cards make life easier in many ways. They allow us to pay for items over time. They let us reserve hotel rooms, plane tickets, and rental cars. Many of them even give us rewards just for using them to make daily purchases. And, of course, they can improve our credit scores to open the door to larger purchases, like homes and automobiles.

But did you know that your credit cards can help in other ways? It’s true. And most card holders don’t even realize what a resource they have in their wallet.

Rental Car Insurance
The next time you rent a car, do a little research first. Your credit card might offer insurance, negating the need to purchase insurance at the rental counter. Call your card services to find out if your card offers this protection. Most Visa and American Express platinum cards do.

Returning Items
We’ve all been the situation where you need to return an item to the store, only to find that the receipt is long gone. Stores don’t like to refund purchases unless you have proof that you made the purchase in their store. If you used a credit card to fund the purchase, all you have to do is whip out a copy of your credit card statement and show it to the retailers. The proof is in the print, and you will be able to return your item with no hassle.

Price Protection
Have you ever found and purchased something, only to see it go on sale the next week? Shoppers hate to feel like they’ve been stiffed out of a good deal. If you have Citi or Chase credit cards, it could be worth your while to see if they offer price protection. Most of these cards will refund the price difference if you can provide proof of the new, lower price within 60 days.

Warranties

If you have an American Express or World Visa card, don’t bother paying for extended warranties at stores. If you used your credit card to buy the merchandise, you might be able to extend the item’s warranty to a maximum of one year – for free. That’s a great way to save a little cash.

Theft and Damage

If you used your credit card to buy an item that was subsequently stolen or damaged, your card might offer you coverage above and beyond what your insurance company will pay. Be sure to document your purchase and the dates and descriptions of the incident. You could get as much as $500 per item, or even $10,000 or more if you have a MasterCard Gold or Platinum.

Credit cards get a lot of flak for getting us into debt. But card holders get themselves into debt by not using their cards responsibly. Know the benefits that your card offers, and take advantage of them!

How to Use Your Credit Cards as You Age

2009-07-28T03:36:00.000-07:00

Life is made up of many stages, and those stages actually help us determine how best to use our credit cards. Don’t believe me? Experts say that parents should monitor the credit habits of their teens and college-aged children. Even into the 20’s and 30’s, credit card use should be kept to a minimum. Here’s some advice for putting your cards to good use at any age.

Twenties and Thirties

These are the decades when we often have “the wants”. We want a nice car, we want a big house, and we want a big-screen TV and the latest i-Phone. The problem is that most of us are plagued with college debt during this time, and we’re trying to get by on entry-level salaries to boot. Experts recommend paying for most things in cash. Don’t charge things you can’t really afford. If you do need to make a credit purchase, look for a low-interest credit card with no annual fee. Remember, early spending habits set the tone for our financial lifetime.

Forties and Fifties

This is when most people find themselves on secure financial footing. Their dependents have left home, and they can finally afford to buy some of the luxuries they dreamed of in their youth. Still, don’t go overboard with the credit cards. You’re probably paying for a mortgage, vehicles, and possibly some college educations for the kids. Consolidate your credit card debt to get it paid off faster. Then take the money you’d spend on credit card payments and invest in a retirement fund.

The Golden Years
Surprisingly, seniors are racking up credit debt faster than any other demographic. Because people are living longer than ever before, it’s important to make a realistic assessment of your finances before you retire. If credit cards are your main source of funding, you could try adding to your income with a part-time job or taking out a reverse mortgage on your home.

Any Age

No matter how old you are, start getting into the habit of making your credit card payments in full, on time, every month. When you carry a revolving balance, you open the floodgates of high interest rates and finance fees. Paying off your balance every month will build up a strong payment history on your credit report, and will also help you stop debt before it spirals out of control.

What to Do When Your Credit Card Company Tells You to Get Lost

2009-07-12T13:24:00.000-07:00

You’ve just been informed that your credit card account is closed. But why? You’ve been a responsible cardholder and you’ve never had problems before. The good news is that you’re not alone in this situation. The bad news is that, well, you’re not alone in this situation. Credit card cancellation is on the rise, and there’s very little you can do if your card issuer decides to cut you off. Here are some helpful tips for anyone who finds themselves in this situation.

First, Don’t Panic

The closing of your account might have nothing to do with your behavior as a cardholder. Some people have been shocked to find that their accounts were closed even though they’d never missed a payment. Sometimes accounts are closed because the lender sees too many credit inquiries on the file. This is a sign of the times; credit card issuers are trying to minimize their risks, and anything they interpret as risky behavior can result in a decreased credit limit – or a closed account.

Talk It Out

It never hurts to call the credit card company and ask why your card was cancelled. You may have to speak to several people before you get a straight answer, but try to stay patient and polite. When you finally get the answer, calmly explain your situation and ask if there’s a way to get the account reinstated. If they won’t work with you at all, take your business elsewhere.

Practice Good Credit Etiquette

When your account was closed, you lost access to that line of credit. Now you’ve got less available credit, and your credit utilization ratio has grown. This looks bad to potential lenders. That’s why it’s more important than ever to be on your best credit behavior following an account closure. Pay down your other balances as much as possible, and be sure to make all of your payments on time. Don’t apply for other credit cards or loans right away.

Take a Spending Break

To minimize the impact on your credit score, try to keep your credit card spending to a minimum for the next month or two. When it becomes obvious that you’re not going to max out your remaining cards, your credit score will rebound.

Be Honest With Yourself

Having your account closed might be a signal that you’re in denial about your debt load. Take the time to sit down and honestly assess your financial situation. What is your debt to income ratio? How does your present situation compare to a year ago? If your debt load has been steadily rising, getting dumped by your credit card issuer may be a blessing in disguise.

How Much Is Your Credit Card Really Costing You?

2009-05-25T13:23:00.000-07:00

Most people do not give much thought to how much the use of credit cards really costs. While you may think you are aware of the costs of credit, there are many hidden fees and charges that often go unnoticed by consumers until it is too late. If you do not keep a very close watch on your credit card fees, you could end up paying hundreds of dollars per years without evern realizing it. If you are trying to stay within a budget, hidden credit card fees can be a real drain on your finances.

Here are some of the most common types of credit card fees and what you can do to avoid them:

Your grace period may seem to be a period of time in which you can pay your bill past the due date without accruing additional interest of fees. While this may have been true in the past, credit card companies are making it more difficult to pay your bill late without any extra charges. In previos years, if you charged the maximum on your credit card but were able to pay your balance in full before the end of the grace period, it was like a loan extension that cost you no additional money. The majority of credit card comanies have reduced the grace period to less than 25 days and some have eliminated grace periods all together. A purcahse you make at noon today will usually begin accruing interest immediately. Check the fine print on your contract with the credit card company. If you find that you have no grace period before interest starts to build, consider switching to a more user-friendly card.

Late fees can really add up. Make certain you know what the late fees are for your credit card and under what circumstances you can be charged. Late fees have increased dramatically over the past several years. This fact combined with a reduction in your grace period means a hefty profit for credit card companies. Whenever possible, send your payment the very day you recieve your credit card statement. There are several reasons to never make a late payment on your credit cards. The most obvious reason is that you will avoid any late fees. Next, a late payment can be reported to the major credit bureaus, leaving a bad mark on your credit report. There is also the possibility that by making one late payment, your interest rate can be raised permanently.

You may not be aware that even with a single late payment, your credit card company can, and most likely will, increase your interest rate. One late payment gives your credit card company the right to raise your interest rate to the maximum allowed by law. This does not just apply to your credit cards. Any late payments reported on your credit report can give all your lenders the right to raise your interest rates. A late payment means higher risk to a lender and you may find that several of your interest rates go up due to a pate payment listed on your credit report.

Keeping your interest rates low and avoiding hidden charges and fees is the best way to save money over the long-term when it comes to your credit cards. Managing your credit is one of the most important factors in your overall finaincial stability. Make sure you understand completely the terms and conditions of your credit cards and all other credit accounts you may have such as your car loan, mortgage, and any other revolving accounts. By making your payments on time, you will save hundreds or more dollars each year in interst and other fees.

Make Credit Card Interest Work for You

2009-04-13T13:22:00.000-07:00

According to CardTrak, the typical American family had about $6,600 of credit card debt in 2007. That might sound pretty normal to you, but did you know that just by learning to use their credit cards more intelligently, those families could save up to $1,500 a year? To really see the benefits of intelligent card use, think of how that $1,500 could become $45,000 by retirement age – and much more if it was invested.

Yes, little things like interest and fees really add up over time. Fortunately for card holders, there are several ways to reduce the amount of money they throw away on interest each month.

First, try to negotiate a lower interest rate. Call your bank or card issuer and politely let them know that you’ve been offered a lower interest rate by one of their competitors (even if you haven’t). To be successful, stay jovial and polite. Be realistic about the interest rate you request. The average interest rate in America at the time of this writing is 12-15%. The higher your credit score, the lower the rate you can reasonably expect. Also, you’ll need to have a positive history with this card issuer that you can point to when asking for reduced rates. If you’ve been delinquent on payments, they won’t be as eager to set a lower rate for you. Remember, card companies make their money from the interest and fees you pay. If they think you are a credit risk, they will increase those fees to minimize their financial losses.

Next, prioritize your credit card payments. If you have two or more cards that you pay for each month, pay a higher amount to the card with the highest interest. You want to get that one paid off first, because it’s costing you the most money. Then pay the next-highest amount to the card with the second-highest interest rate, and so on. If you have a lot of outgoing payments, you should check with your bank or credit union to see if you qualify for a low-interest loan. With a loan, you can consolidate your credit card payments into a single monthly payment with lower interest.

If you have a small amount of debt that you can pay off in six or twelve months, look into a 0% interest credit card. By transferring the debt to such a card, you can put all of your payments toward the principal balance, not toward interest. Just be aware that most 0% cards have an introductory period that lasts from three to fifteen months, with six months being the most common. After that period ends, you will be responsible for interest on your balance.

To plan for the future, take all the money you would have spent on credit card interest and put it in a savings account. When you’ve got enough, invest it in a mutual fund. Forget about it. Then, when you’re ready to stop working, you will have quite a chunk of change to fall back on. Who would have thought that credit card interest payments could be managed in a way that would lead to a comfortable lifestyle in your later years?

Credit Card Processing Options for Home-Based Business Owners

2009-03-29T14:16:00.000-07:00

Are you the owner of a home based business that wants to be able to accept credit cards payments from clients or customers, without all the high fees that typically go along with it? Well, now you can thanks to e-commerce and the internet.

Special Options for Home-Based Businesses

With proper research you will be able to find that many merchant account providers also now have special packages for the specialized industry of home-based businesses. No one knows your business like you do. Therefore, you should carefully research any and all possibilities before making a decision on what way is the best to accept credit card payments for services rendered. Though there are pros and cons to be weighed and considered, the option of being able to accept credit cards from clients and customers is a huge convenience for you both.

For home based business owners, it has been a difficult and lengthy process in the past to receive payments from clients or customers; but by having a merchant account, you can now accept payments through a banking institute, independent sales organization, or by a third party such as PayPal. Home-based businesses must be approved in order to establish a true merchant account through a banking institute or independent sales organization. An underwriting process is necessary, and it will also involve using your personal credit rating, and this will be reviewed and evaluated. Many merchant account providers offer high approval rates, and special account options for home-based businesses.

Receiving Funds From Credit Card Payments

When the process is completed the home-based business owners can automatically deposit funds received from credit card payments directly into their account. There are fees that are charged by an Independent sales organization or banking institute, and while they are not as low as the third party provider they are often worth the ability of accepting credit cards. With higher sales volumes, the fees charged by Independent Sales organizations or banking institutes will be less compared to the third party providers-so you have yet another incentive for increasing your business!

Third Party Providers

When using a third party provider, the funds will get deposited into the merchant account, and then you can transfer it to your account. The entire process may take up to several days. Additionally, using a third party provider means you run the risk of never receiving the funds from your transactions, as they are often fraudulent businesses.

Merchant Accounts Through Banks

There are both positives and negatives associated with a merchant account through a banking institute, as well. Some advantages include the fact that banks are considered to be secured and dependable, and fees associated with setting up your merchant account are considerably lower for the long-standing business owner and owners with good credit. Many banking institutions do not like to open merchant accounts for a business seeking to accept credit cards over the internet. You will have to go and speaking informatively about your business and your goals and why it would be profitable for you to be able to accept payments on line. Banking institutions are more likely to close a merchant account if there are any charge backs.

Independent Sales Organizations

Business owners wishing to open a merchant account with less than perfect credit typically use Independent Sales Organizations. Independent Sales Organizations go through a bank for the merchant account. Independent Sales Organizations accept businesses that wish to collect online payments and they do accept high risk businesses. These types of organizations will charge higher fees and you do need to watch them carefully to make sure that you do not pay for the same fees over and over again, but they can be a good option for people and businesses that are otherwise unable to accept credit cards.

Many merchant accounts that are now available for the home-based business owners have a high approval rate, and most are approved within twenty-four hours. Most of the merchant accounts have done away with all the application, set up, monthly and annual fees. Be sure to ask questions up front about any fees that may be associated with obtaining a merchant account.

Change Your Credit Card Due Date

2009-03-17T13:21:00.000-07:00

People everywhere are feeling the economic slump. If their own budgets haven't taken a hit yet, they're likely to experience loss of money in their retirement accounts and other investments, or fear that their job may be on the line. Businesses are reporting decreased sales and many are closing shop because they are unable to keep up with rising costs against decreased sales. Even the credit card industry, an industry that earns billions of dollars in interest and late fees every year, is reporting that they're struggling.

In fact, the financial struggles of the credit card industry have resulted in some changes to some card holder accounts. For example, many credit card users report having their credit lines slashed – which in turn results in lower credit scores. Many people have mentioned having their interest rates increased, even though they've been making their payments on time all along. Still others have reported that their credit card due date has been moved earlier into the month, making it harder for them to pay their credit card bills on time (especially the first month or two when the person may not be expecting the change in due dates!)

Making Late Payments

As you already know, making a credit card payment even just ONE DAY late is bad news. While it may not reach your credit report for being one day late, it will almost always result in a late fee added to your account, ranging between $20 and $50. Paying a credit card late also can result in the lender raising your interest rate.

What you may not realize is if you were to change the due date of your credit card account, you may find it easier to make payments on time. Most credit card companies will allow you to change your due date if you just make a phone call and request it.

Changing Your Due Dates

If you find that on paper you earn more than enough money to pay all of your bills, but you're still making late payments from time to time the trouble may be that your income comes in a way that makes it difficult to pay bills by their due dates. Changing the due date on your credit card accounts and other accounts so that they are after your payday can eliminate this problem.

If you get paid bi-weekly, you'll want to stagger your due dates so that they are equally divided between the first part of the month and the second part of the month. Use your first check to pay for utilities and credit cards, and your second check to pay for your rent or mortgage. If you're paid once a month, you don't have as many choices! You'll need to make your due dates a few days after you receive your pay each month so you can go through and pay for everything all at once. If you get a weekly paycheck but find you have too many bills due in the same week, just spread your due dates out over the month so you can make your payments easier.

While credit card companies won't complain over getting money out of cardholders in the form of late fees, they don't like to spend their time and resources calling consumers about late payments. If you call and ask to change your due date, chances are they will be very accommodating – and in some cases, you can adjust your due date yourself through your online account management system. By selecting due dates that work better with how you receive income at home, you can eliminate paying late fees and reduce your financial stress level.

Choosing the Right Credit Card Processing Company

2009-02-24T14:13:00.000-08:00

There are many credit card processing companies to choose from, how do you know which one you should go with? Will they benefit your company? Are they affordable? Are they reliable? The internet can be a great tool for finding the right credit card processing company. Do your homework, determine which one has the features you need and are looking for in a company.

First, though reliability and trust is most important, you may likely be concerned about the start up costs. Some companies do not charge anything for startup, while others can charge as much as $250 start up fees. You want to make sure you choose a company that is both affordable for you and worth the costs.

Then of course, in keeping with costs, you need to look at other fees that may be required. Most credit card processing services charge several types of monthly fees. For example, a gateway fee, this could cost you as little as $10.00 per month and all the way up to $50.00 or more per month, depending on which company you choose.

You might have a statement fee as well charged to you each month. For most companies, this will cost you between $9.00 and $10.00 each month. Then you have to consider the monthly minimums, this will vary from one company to the next, but for the most part, this minimum runs between $20 and $30 monthly.

The fees do not stop there either. You will also have to deal with transaction fees. Per transaction fees average between twenty-four cents to thirty-five cents per transaction. Then on top of that, the company will likely take a percentage of each transaction as well, which could be anywhere from 2.14% to 2.40% on average. Lastly, some credit card processing companies charge a fee for address verification. If they charge the price is typically five or ten cents per address.

In other words, you need to find a company that is both affordable, trustworthy, and honest, fitting your budget at all the same time.

Then you have the chore or finding a credit card processing company that provides you with all the features you need for your company. This is just as important as costs because you definitely do not want to pay a lot for credit card processing if the company cannot meet your needs.

Some features to look for, that you may or may not need, includes:

Payment Gateway

Virtual Terminal
Merchant Account
How many days the payments clear
e-Check services
Point of Sale Swiper
Recurring Billing
Shopping Cart

You will then want to look at how the credit card processing company protects your business. Some features you will definitely want from any company includes:

Fraud Protection
CVV2 Acceptance
Real Time Processing
Address Verification
SSL

Then you need to consider what credit cards you wish to accept and if the credit card processing company supports those credit cards. The most commonly accepted credit cards are:

Discover
Visa
American Express
MasterCard

Lastly, while features, fraud protection, and the credit cards that you can accept are extremely important, you want to make sure that you choose a credit card processing company that provides you with the help and support you need, when you need it. Here are some tips that will help you choose:

Make sure that you can easily find their fax number
Make sure that reaching them by E-Mail is possible and readily available.
Check out their support hours, the best companies offer support 24 hours a day, 7 days a week.
Does the company provide you with a toll-free telephone number? This is a positive for any company.
If Live Online Chat is important you, look for this feature as well.

Credit Card Debt and Divorce

2009-02-11T13:18:00.000-08:00

Credit card debt can be stressful enough, but the added stress of divorce can make it all the more horrific. If your marriage is ending, there are some things you should know about credit card debt and divorce. For example: who can be responsible for the credit card debt accumulated before, during, and after the marriage?

When you open a credit card account, you enter into an agreement with the card issuer. You have the right to use the card to make purchases, and the responsibility to pay off the card's balance in a timely manner. This holds true regardless of when the charges were made. Typically, any charges made by one party before the marriage took place will be the legal responsibility of that party.

Some situations are a little trickier. For example, if you're the sole account holder and your spouse is an authorized user, you are responsible for all the charges made to your account by yourself or your spouse. To avoid further charges during and after divorce proceedings, you can simply remove the spouse from your account and ask the card issuer to have their card deactivated.

If your spouse is the account holder and has added you as an authorized user, your spouse is the one who is legally responsible for the account balance. You can dispute any account activity that shows up on your credit report. Contact the credit bureaus and let them know that this is not your account, and that you are disputing the items.

In the case of a joint account, both you and your spouse can be held responsible for the balance. The judge at your divorce hearing might require one of you to pay the full balance, or might split the debt between both parties. Speak with your divorce attorney to figure out how best to proceed.

Your divorce decree might stipulate that one party or the other is responsible for paying off the credit card debt that exists at the time of the divorce. Any charges made to credit card accounts after the divorce will be the responsibility of the account holder.

To avoid making a bad situation worse, speak with your spouse or attorney about your credit card debt before your divorce hearing. Be prepared to provide paperwork and proof of the account’s ownership and purchase history. The more you can do to straighten things out beforehand, the less likely you’ll be held responsible for all of the debt.

How to Process Credit Cards at a Flea Market

2009-01-27T13:25:00.000-08:00

If your business operates at flea markets, you may not realize that you still have the ability to accept credit cards from your customers. It's no secret that shoppers spend more money when they use their credit card, so you definitely want to offer your flea market customers a way to swipe those cards to increase your sales volume.

If you’re just starting out, or are a small-time business that occasionally rents booths at flea markets, it may not be in your best interest to sign up for a merchant account with a bank and then purchase the somewhat expensive equipment that would let you physically swipe a card at your flea market booth. On the other hand, if you are a thriving flea market business, you may be able to do just that- and use a satellite internet connection to send the credit card details to the processor.

Using A Telephone to Process Credit Card Payments From Customers

Most of the small and medium sized businesses with flea market or vendor fair booths can’t justify the expense of the merchant account equipment. Fortunately, that doesn’t mean there is no way to accept credit cards on-site! One of the easiest methods of accepting credit cards from customers in a flea market situation is to use a phone-in method.

Some merchant accounts actually let you call a toll free number, enter in your personal account number to verify your business, and then using your cell phone’s keypad, you would enter in the credit card details. The automated system can tell you whether or not the credit card has funds available for their purchase and you can proceed with the sale. This is a superior method to simply writing down the customers card details on an order form, because you never know if the credit card will go through until you’ve returned home or to the office and entered the details- long after the customer has already received his or her merchandise from your flea market booth!

The fees for an accept-by-telephone credit card processing method are often much less than a traditional merchant account as well. Not only do you not have to purchase the equipment to process the card, but your monthly fees are usually lower. You can expect to pay a one-time fee to join the program, around $100 or so; and then an affordable monthly fee around $5. When you process credit cards by phone, each transaction will be discounted by the discount rate (typically around 3-4% of the transaction price).

Using Your Laptop and Internet Connection to Process Credit Card Payments

If you have a laptop with a wireless connection that works pretty much everywhere you go for flea markets or vendor fairs, your other option is to use a credit card processing system that allows you to accept credit cards via a web form.

For each customer, you would type in their payment details including their name, address, card type and number, expiration date, and even the three or four digit security code found on the back of the card. The web form would send the information through a secure server and return a response to let you know whether or not the card is valid- at which time you can continue processing the sale for the customer or tell them the card was declined.

Using these alternative methods of credit card processing makes it possible for small and medium sized businesses operating booths at vendor fairs and flea markets to increase their sales volume by accepting credit cards as payment.

5 Tips for Dealing with Credit Card Debt Collectors

2009-01-15T13:10:00.000-08:00

If you’re out of a job and behind on your credit card payments, it might be very tempting to stop taking calls from your credit card issuer and their collection agency. But that’s not the best way to handle things. Even if you don’t have a penny to give them, it’s a bad idea to ignore the problem and hope that it will go away. Here are five tips to remember when you pick up the phone and get in touch with your credit card issuer.

Tip 1: They Don’t Know What You Don’t Tell Them

As unlikely as it may seem, banks do want to work with their customers. Many have instituted special programs for customers who are behind on their credit card debt and facing tough financial times. Call your credit card company – preferably before you default, but definitely if you can’t make payments – and see what they can so for you. If you simply stop paying, they won’t know that you’re facing special circumstances.

Tip 2: Tell It Like It Is

Tell the collector that you’re unemployed and cannot afford to make payments at this time. That’s really all they need to know. If they push you to set up a payment plan, cut in and tell them you’ll call back when your situation improves.

Tip 3: Keep Written Records

Make a note of the date and time when you called. Also take down the first and last name of the person you spoke to, and a summary of what was said during the call. If any collector harasses you or does not adhere to the rules for debt collection, keep records that you can refer to if you decide to go to court.

Tip 4: Plan for the Future

Right now, getting an income is more important than setting up a payment plan with a creditor. Of course, late payments and closed accounts will hurt your credit score, but sometimes you have to make hard choices. Focus your energy on finding a new job rather than fighting with debt collectors.

Tip 5: Pay What You Can Afford

When you’re back on firm financial footing, call the collection agency and make an attempt to settle the debt. Some will settle for pennies on the dollar. Others will resist your efforts to negotiate a lower pay-off. Offer them a lump sum or monthly payment amount that you can reasonably live with. If they refuse, get a qualified credit counselor to deal with them.