Should I Consider Temp Car Insurance for a Holiday Road Trip?

If you are planning a holiday road trip, temp car insurance is a smart way to go. However, you will first need to consider a few things before making your choice. So let's examine whether this type of short-term policy will be best for your personal situation. 

Do you already have Car Insurance?

First of all, you need to think about whether you have your own car insurance policy entitles you to. If you are fully covered, and you have a fully comprehensive policy, purchasing additional temporary insurance might not be necessary.

But if you don't have any type of policy at all, and you don't intend to get a full policy, temporary insurance coverage is not only a good idea but an obligation. Remember that you need some form of insurance in order to drive a vehicle, so if you are not willing to pay for an entire year, only paying for what you need is the best option.

With short-term car insurance, you can take out cover on a car for as little as a day or (in some cases) as much as 28 days. And as most insurance firms are able to provide you with a policy online or over the phone, you can get out on the road in no time at all.

This makes temporary car insurance a great option if you have just bought a new car, and need cover for that special first drive home!



On top of this, you need to question who is going to be driving the vehicle. If it's only going to be you, you'll have no problem. But if there are going to be several different drivers, you'll have to make sure that they all get added onto the policy.

Always talk to insurers about this to make sure that this doesn't add up to any additional costs. If you fail to notify the insurer of your intention for different drivers to use the vehicle, you may find yourself in hot water should you be involved in an accident or any other unfortunate incident.

Why Get a Short-Term Policy

The beauty of short-term car insurance is that it is extremely convenient and very affordable. However, if you will use the vehicle again on a regular basis, getting a normal policy is your best bet.

There is also a protective factor to think about. If you have an accident when driving under a regular insurance policy, you will lose your ‘no claims’ bonus should you decide to claim. If, however, you are driving under a short-term policy, your regular long-term policy will stay safe.

When going on a road trip, where accidents might be more likely to occur, a short-term, temporary policy can be extremely beneficial in helping to provide that additional protection.

If you do decide to go ahead and get a temp car insurance policy, always shop around. There are dozens of different insurers you could use, so make sure that you spend some time comparing rates in order to get the best possible prices. 

Credit Scores 101 - Your Credit Score Explained

Credit cards (Photo credit: Wikipedia)

One of the most important tools for monitoring your financial health is your credit score. Whether you are in the market for a new home, car, or credit card, your credit score is the measurement used by creditors in making decisions on whether or not to extend you credit. Your credit score and credit report can also help you maintain a watchful eye on any red flags that may signal identity theft or credit fraud. Knowing what your credit score is and how it is comprised is essential knowledge for anyone wanting to stay on top of their finances. 

FICO Score

Your credit score, commonly referred to as your FICO score, is the industry standard used by more than 90% of creditors in determining a borrower’s credit-worthiness. Your FICO score is a composite of information derived from the three main credit-reporting agencies. It gets its name from the Fair Isaac Corporation, which introduced the scoring system in the 1960’s. It places individuals on a range from poor to excellent. The bottom of the range is a score of 300 and the top score possible is 850. Most individuals’ scores obviously fall somewhere in between. 

Deciphering Your FICO Score

According the myfico.com website, the FICO score has five main components: Payment History, Amounts Owed, Length of Credit History, Types of Credit, and New Credit. At 35%, Payment History makes up the largest factor of your score. As the name would suggest, it lists payment history on any agency account reporting to the credit bureaus. It tells lenders whether or not you've made past payments on time.

Amounts Owed comprises 30% of your score. This presents a picture of how much debt you have outstanding. Amounts Owed allows lenders to see red flags that indicate a borrower may be getting overextended and, as a result, could have issues making timely payments in the future.

Length of Credit History is 15% of the score. A longer history will typically have a positive effect on the score. By having a longer history, lenders are better able to gauge your ability to maintain good credit over a longer period of time.

New Credit and Types of Credit Used each comprise 10% of the score. New Credit takes into account how many recently opened accounts you have, and may penalize you if you are accessing too much credit. The Types of Credit Used category looks for a healthy mix of revolving credit, equity accounts, and long-term credit. Too much revolving credit (think credit cards) can be a red flag and result in your score being reduced.

How to Access and Monitor Your Credit Score

There are several ways to gain access and to monitor your credit score and your credit reports. You are entitled to pull your credit report once annually for free through the annualcreditreport.com website. You can use several free services to monitor your score; these include CreditKarma and Credit Sesame. Some credit cards or equity loans will even provide a credit monitoring service free of charge and you can always pay one of the credit reporting agencies directly to have access to both your score and your credit report. These are typically available for a monthly fee.


Your credit score is much more than just a number. A good score allows you access to lower interest rates that can save you hundreds, even thousands of dollars over the life of a loan. It can also help you avoid having to put down large security deposits or down payments. Credit fraud can be readily detected if you stay on top of your credit reports, and a good credit score provides you the flexibility to access your credit, and is an indication of your overall financial well being. Knowing your score is essential whether you use one of the paid credit monitoring options, or one of many free tools.

Alan Dock is an ardent finance buff, and gets many of his smart money tips from credit check sites and investment blogs.

Simple Credit Card Tips for Everyone

Credit card services are a multibillion dollar industry in the United States, attracting a variety of consumers who are looking for some extra spending money, emergency lines of cash, and even those in debt looking to consolidate their payments through one single credit line with a low interest rate. There are many pros and cons in signing up for a credit card, and many of these will affect you differently depending on your financial circumstances. 

Obtaining a line of credit often depends on your credit score. According to CreditScore.org, “760 and up is considered to be excellent and requires a long credit history with on-time payments and the right types of credit combined with low amounts of overall dept. 700-759 is considered very good, while 600-699 is considered good. 620-659 would be considered “not good,” 580-619 is “poor”, and 579 and below is “very poor.” The lowest credit scores on the scale go to people with major negative financial events like bankruptcy on their records.” Consider these few tips if you have no or low credit, bad credit, or are just starting out:

No Credit – If you have no credit score, you will be seen by many companies and banks who offer financing (for a car or home, for example) as non-satisfactory. The cards are already stacked against you—by having no substantial lines of credit since financial services have no idea about how trustworthy you if they were to loan you a specific sum of money. This is where singing up for a simple credit card with a low interest rate can come in handy. By singing up for a basic $5,000 line of credit and making double-payments on time over a long period of months, a consumer’s credit score will rise. But it is important to be careful here: do not sign up for an amount of credit you cannot pay back in the long term. If you are trying to enhance your credit score this way but lose your job in six months, you can easily fall behind on payments and ultimately hinder your credit score. As such, it is important to consider what you can afford and ensure you have enough in savings to pay off the card quickly in the event of such an emergency.

Bad Credit – Consumers with bad credit can have a harder time obtaining a credit card, and if they do, will often have a high interest rate attached to their monthly payment. If consumers have enough money saved up to incur a high interest rate, they can start to rebuild their credit score by simply following the tips mentioned in the previous section. If this is not an option, however, there are other methods that those with bad credit can use. Consider the following:

• Get a secured credit card. Some credit card companies offer a secured line of the credit that requires a deposit, so that it will be easier for the consumer to obtain approval for a credit card. Deposits are usually given back to consumers who complete all payments on time and their credit card balance returns to $0 upon closing. 
• Don’t sign up or go with “junk mail” credit card offers, since these are the leading ways to ruin a credit score for a long time. The fine print is often skipped on these, and massively high charges, fees, interest rates, and other hidden costs are associated with these cards. Make them all your personal-finance kryptonite. 
• Explain your situation to a customer service representative. Sometimes credit card companies will allow you to call and explain why you incurred bad credit. Companies are more likely to allow a line of credit to someone who got laid off or incurred a large medical bill before someone who signed up for several cards and spent themselves into oblivion. In terms of the credit score, these two consumers look similar although their behavior is dramatically different. Trying to explain your financial circumstances might help you secure a line of credit from a company, but you have to take the time to call their customer service line and explain your debacle. 

Good Credit – People with good credit might be wondering why they should even consider a credit card. There are a variety of reasons.

(Photo credit: Wikipedia)

First, keeping good credit steady and current is more advantageous than someone who has a high credit score, but has not had any credit activity for the last five years. Second, a high credit score will be attractive for services who want your business. As such, high credit score holders will be able to shop around for high lines of credit with amazingly low interest rates and other benefits and gifts offered by credit companies. Finally, having a high score will help you obtain high-cost items easier. Obtaining a home or automobile will be easier, and you will often be rewarded with low interest rates and monthly payments for items in which you finance.

Angie Picardo is a staff writer for NerdWallet. Her mission is to help consumers stay financially savvy, and save some money with a World Market promo code.

Ways to Save Money on a Rental Car

Enjoying a trip on a rented car may cost you much. Rates for car rental will differ depending on the size of the vehicle being rented, hours and days that the car will be used and the car rental agency. If you are up for a summer vacation with your family or friends or you are going to an important business trip, know the different rental car deals in order to save money. 

Important Ways to Save Money on Rental Car Deals:

Recognize A Good Deal by Shopping Around

Before you book for a rental car, look around and do some research of the different car rental agencies available. This way, getting the best price is always possible since you can have a comparison of car rental rates. As soon as you have already settle on a travel plan, do a research on several car rental agencies in an area, compare rental cost and check on the rental agency’s policies. 

Avoid Airport Rental Counters

Using a non-airport facility can give you many savings. Renting a car from airport rental counters offers convenience but in experiencing this ease, you will be charged with the so-called “convenience fee” each day of renting the car which can easily add up to the rental cost. Instead of renting a car on the airport rental counters, look for a rental agency near the airport or nearby the hotel you’ll be staying. It’s a good thing if you a have a friend in that place. Try to contact and ask that friend for help on where you can find a car rental agency offering good rental deals. 

Have an Early Booking

Book a car as soon as you have already confirmed a solid travel plan. Keep in mind that rented cars with the lowest rental rates most often are the ones that sell out first. Save money by early booking a car that meet your needs and avoid forced upgrade. Some agencies may also offer a discount for an early booking and if the rent is already paid in full a few days or weeks before the car will be used. 

Have a Comparison On Weekly and Daily Charges

Car rental rates charged daily and weekly have a big difference. Always check on the rental agencies daily and weekly rental rates for cars and calculate how much money you can save because most often, you can have a good deal when you rent a car for longer days. Some rental agencies offer discounts if a car is rented for at least 5 days to a week.

Ask For a Discount

Car rental agencies often have discounts and better deals for their customers. Just look around for a much better price and do not just look on the rental rate that one company quoted you. Ask the car rental company if they are giving discounts to club members such as a warehouse or an automobile club membership. Some rental companies are also providing coupons in credit card inserts, newspapers and travel magazines and you can use this coupon to have a discount on the rental rate or for a free day’s rental.

Author Bio: Prestige Luxury Rentals has been in the business of making dreams a reality for almost a decade. If you want rent an exotic car for the weekend, you’d be surprise on how we make things simple. Get in touch with Prestige Luxury Rentals and we’ll give you a quote very easily. We’re present in major cities including West Palm Beach exotic car rentals.