Money for the Rest of Us

Rewards credit cards make sense for a lot of people and are becoming more and more popular. But, with all of the options out there how do you choose one?

Here are seven things to consider when choosing a rewards card:

1. Your Personality: Is having a rewards card going to encourage you to spend more? This seems like a silly question, but I know people who justify their spending by saying “this really cute sweater is $100, but I get 5% back; so it’s like it’s on sale.” If you are going to do this, please stop reading now and don’t get a rewards card. A rewards credit card should be used in place of your current credit card for expenses that you already have, not to justify new expenses.
2. Your Credit History: Do you have a solid credit history? If you don’t you may not qualify for the benefits (such as a low-introductory APR) for a rewards credit card. Also, do you pay off your credit-card in full every month? If not, you may want to stick with a low-APR non-rewards card.
3. Non-rewards Perks: What non-rewards perks does the card offer? Is there a low (or 0%) introductory APR? What about balance transfers? Which of these do you need? Do you get some sort of cash back or gift after your first purchase with the card?
4. Type of Reward: What kind of reward do you want? Do you want a cash back rewards card? Or one where you can earn miles? Or do you want to earn gift certificates? There are many different types of awards; you should choose the one that best fits your needs.
5. Where you Spend your Money: Some rewards cards give you higher percentages back if you spend money at gas stations, grocery stores, or restaurants. Others give you more back for money spent at drugstores, convenience stores, or on utility bills. Still others give you a flat rate on anything. Look at a few old credit card statements and see where your money goes. Choose a card that fits your spending habits.
6. Card Limitations: When do you get the reward? Whenever you earn enough points or only once a year? Is there a limit to the amount of points/dollars you can earn in a year? If you earn airline miles are there blackout dates?
7. The Fine Print: As always, when considering credit cards, read the fine print. Is there an annual fee? If there is, DO NOT get the card. There are plenty of wonderful cards out there that don’t have fees. What about other fees? What will the APR go up to after the introductory period?

There are many websites that offer a side by side comparison. Do a Google search for “Credit Card Rewards” and go to a few of the websites that come up. Bankrate.com is also a good source for comparing credit cards. A non-internet place to find good deals is in the Parade or USA Weekend magazine in your Sunday paper. Chase Bank often advertises rewards credit cards in the magazines that have higher percentages cash back than you can find online.

The final and most important thing to do when choosing a rewards card is to take the time to make good comparisons. The card you choose should be one that you will stick with for awhile.

Advertisements

Are you looking for easy payable loans then your first choice should be bank of Canada which can provide you all types of loans such as student loans and lots more facilities related to your credit card account and you can get comprehensive credit report at any time, not only these services are offered by almost all banks on the other hand they offer you debit card facility and tax account facilities through which you can pay your tax easily or if you want any kind of insurance then they can provide you this facility, especially health insurance for which mostly people for, if you want to pay your insurance installment through citi card then you can use your credit card.

It happens to nearly everyone, your wallet gets lost or stolen and you panic. Where do you begin and what do you do? Addressing the problem of a stolen wallet can seem overwhelming, but if you follow the three steps below, you should be well on your way to a having new wallet with new cards with as minimal hassle as possible.

First, however, a caveat: You should report the wallet as lost or stolen as quickly as possible. The longer you wait the more difficult the situation will become.

1. Call your credit card companies and banks. For each credit card or ATM card in your wallet, call the issuer and report the item as lost or stolen. Most banks and credit card companies are very friendly about this and will help you through the process of canceling the card, getting a new one, and reporting any fraudulent charges that may have already occurred. You’ll have to answer a number of questions and may even have to fax in some other proof of identity (like a utility bill), but it all depends on the issuer. Also, if you need cash instantly many banks will allow you to take a certain amount out (usually around $200) if you go to the local branch and speak with someone.
   Think about what other cards were in your wallet. Call your department of motor vehicles, insurance companies and any other company whose card you might have had in your wallet. Though uncommon, it’s possible that the finder/thief will go to the movie store and check out (and never return) several movies or video games in your name.
2. Call one the three credit bureaus. Call either Equifax, Experian, or TransUnion. You can ask them to issue a fraud or security alert that is either temporary or permanent. This alert will not deny you any credit, nor will it affect your credit score. It will only force any companies requesting credit to further verify your identity before issuing credit. You only have to report to one of the credit monitoring bureaus as they are required to share information with the other two.
3. File a police report. This can be the biggest hassle because it requires that you go to the local station and fill out some paper work. Filing the police report may be required by credit card companies or banks if there have already been fraudulent charges.

If you take these three steps as quickly as possible usually you can get new credit cards and ATM cards within a few days and the entire issue can get cleared up within a month.

Extra tip: It’s a good idea to always leave one credit card or ATM card at home. You don’t need to be carrying all cards at all times; and that way, if your wallet gets lost or stolen you will still have another form of payment.

Update: The links below are no longer valid.  The page has been moved to Slice.ca (I fixed the first link) but the rest of the resources can’t be found.  I will fix the links as soon as I am able.  If you know where the pages have been redirected to, please let me know.
Gotta love our neighbors to the North. Who else would come up with such a great show? I was in Toronto about a month ago and became a little obsessed with ‘Til Debt Do Us Part. I think we may have watched 3 or 4 episodes in the two days we were there… The show is a reality TV show that takes couples deeply in debt and helps them create a budget. It’s that simple. Yet it was highly entertaining. Hopefully a similar show will start in the US one of these days.

Besides just being an entertaining show, they also have some great articles on the network’s website including

Top 10 Ways to Avoid Arguing About Money

File or Fling? (About what records to trash and when to trash them.)

12 Steps to Getting Organized on a Budget (the Initial set-up presented here is crucial)

and

Ways to Live it Up on A Budget

My favorite tip from the final article is about how to see shows (concerts, sporting events, film festivals) for free– consider volunteering! I may look into this for future events here in DC.

Just the other night I was out a bar with some friends- most of whom work at non-profits and I was reminded of why I set out to write this blog.  One of my friends casually mentioned that her credit card had been declined that day.  She said “I’m not worried though, I know I’m not over my limit.  It’s probably just because I forgot to pay my bill last month.  I left it at home when I went on vacation.  I paid it today.”

I couldn’t believe what I was hearing.  My friend didn’t even realize that by “forgetting about her bill” for a few weeks she could be ruining future opportunities.  When your credit score is low you are not just messing with money- but with your life.  Yes, you may have to pay more (a lot more) for interest on car payments or mortgages in the future, but you could also be denied access to certain life changing events.  For instance, in DC there is a very low apartment vacancy rate (1.7% as of six months ago).  When you apply for an apartment the renter almost always runs a credit check.  If 4 other people with a solid credit history want the apartment, chances are that you won’t get it.  Your credit score isn’t just about money—affects other aspects of your life.