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. 

Investing in Your Future

A great way to boost your bank balance in the build up to your retirement is to invest your money. The advice for mature investors remained the same for many years; focus on assets that will guarantee a safe return, rather than those that offer the biggest capital or growth potential. In recent years however, people have been taking note of the fact that people are living longer; therefore opening up a whole load of other exciting investment opportunities for retired people, as longer investment times mean a better chance of risks eventually paying off. Whether you want to play it safe or take a chance, there are a number of different ways you can invest your money later in life besides just placing it in a savings account. 

Bonds

Purchasing a bond involves the lending of money to a business or government which they will pay back with interest. This is definitely an option for the safety conscious as investing with a well-established, reputable company or official organisation more or less guarantees a return on your money. Profits may be limited but the stability of your money and often quick return times make it a great asset for a mature investor’s portfolio. 

Stocks

Buying stocks (also known as equities) essentially gets you part ownership of a business. You gain the right to vote in shareholders’ meetings and you benefit from shared profits that are distributed amongst owners – referred to as dividends. This is a great option for the more adventurous investor, as stocks are high risk assets with the potential for great rewards. Nothing is guaranteed with the purchase of a stock; its value can fluctuate daily, meaning your investment could flourish and soar just as easily as it could plummet. 

Gold

The value of gold is more stable than most currencies and even increases as the US dollar decreases in purchasing power; acting as a great remedy against inflation. There is a growing level of supply and demand for this precious metal and so your purchase will never be wasted. There are also a number of different ways to buy and sell it, from online brokers to jewellers and government mints, with many others in between. With growing interest and value guaranteed, investing in gold – and digging out any old family heirlooms – can be a great financial opportunity to utilise upon your retirement. 

Online Investments

The internet has made finding suitable investments a much less daunting task. Sites like Nutmeg allow people to invest anything from £1000 upwards and a team of professionals will split your money between assets to reduce risk. This is a great investment opportunity for those who want an easy retirement with a bit of extra cash, as the Nutmeg team monitor and move your money to capitalise on the success of certain areas and avoid weaknesses in others. You can be as distant or involved as you want and there are no fixed terms; your money is yours to withdraw whenever you want.

Gone are the days when the only way for a retired person to boost their money was to stash it away in a savings account. The world of investments has truly opened up and can finally be accessed and utilised easily, regardless of age.

Julie runs financegirl.co.uk, a finance blog which aims to bring the best online finance news into one place as well as offering money advice and tips for savvy consumers. A regular contributor on finance blogs, she can also be found @financegirluk.

4 Questions Every Borrower Should Ask Up Front About Their Mortgage

When applying for a home loan, be sure to consider the initial costs and interest, as well as the terms and conditions of the loan before signing the contract and close escrow. As a home buyer age 50 or older, it is imperative that you know the terms of your loan before you enter into a contract that is not designed to benefit you. 

As a side note, once you have the basics down, it's simple enough to find a GTA mortgage rate comparison service online, so there's no need to worry about that. Getting the fundamentals down is absolutely vital before locking in a loan, so make sure to do thorough research. 

With so much focus put on interest and monthly mortgage payment, many new home buyers forget to ask the important questions up front. Here are four vital questions to ask after you receive an approval and accept a home loan. 

What are the Costs of Obtaining the Loan? 

Just because the lender offers a competitive interest rate does not mean that the difference of 0.5% interest will offset the initial costs of obtaining the loan. One question all borrowers should ask the lender before accepting an offer for credit is how much are origination fees, discount fees to lower interest, the appraisal, the credit report, administrative fees, document prep fees, closing costs, title insurance, and any other fee the lender charges upfront. 

All lenders are required to provide a Good Faith Estimate, which details the out-of-pocket closing costs necessary just to get the loan. Compare these estimates and keep these figures in mind before making a decision. 

How Long Will It Take Me to Break Even if I Buy Discount Points? 

If you have the option to buy discount points to lower your interest rate, it is important to do the math to determine if buying these points is going to pay off based on the length of the mortgage. When you are buying a new home, the best way to determine if the discount points will really offer you a discount is to divide the upfront cost of the points by the amount you are saving monthly with the lower rate. 

This will show you how many months it will take you break even. You can determine if you will be staying in the house long enough for the discounted rate to pay off. 

Is there a Pre-Payment Penalty? 

Some mortgage loans have terms written into the contract that restrict you from paying your mortgage off early without being charged a pre-payment penalty. A pre-payment penalty is a common term built into a loan contract to ensure the lender earns a reasonable amount of profit in interest for extending credit. 

To prevent a borrower from refinancing as soon as the loan goes through, the lender may charge a percentage of the remaining interest due to borrower to close the mortgage contract. Review how long the penalty is valid and determine if the fee is fair compared to the common fees that other lenders charge. 

How Long will it Take for the Lender to Fund the Loan? 

You need to know the average funding times so that you know how long to lock in the rates. Today, most lenders require you to lock in your rates so that you can avoid falling victim to a sudden rate increase before the loan closes. 

The average funding time frame ranges between 20 and 45 days, but in some seasons funding can take longer. Find out the anticipated turnaround time and how long funding will take to protect your interests. 

When you are applying for such a large loan like a mortgage, you need to look past interest and monthly payments and assess the terms and conditions of the loan. By asking the right questions, you can avoid entering into a contract close to retirement that will not benefit you long-term. 

About the Author: Marley Thomas is a freelance finance and real estate industry blogger. He takes pride in providing consumers with the best research upfront, so they can feel confident in making the right decision for themselves.

Smart Financial Tips for Retirees

saving and spending (Photo credit: 401(K) 2013)

Just because you’ve reached an important milestone doesn’t mean savings and investing are behind you. You might be just as busy as you were when you were working full-time, and nowadays the transition into retirement isn’t as black and white as it used to be. If you’re worried about how to stretch your pension, social security, retirement accounts or savings, read on for financial tips just for retirees. 

If you haven’t quite reached the marker for withdrawing social security or a certain account, hold on. The penalties are almost never worth the instant “reward.” Whether you were a frugal spender your entire life or not, now is the time to really put wise spending into action. From travel to groceries, there are a number of ways to save money and put off those payouts until you can maximize them. 

Saving on Health and Well-Being

As a retiree, you likely qualify for a number of low-cost or even free classes and services. Start by Googling free health classes in your area. A costly gym membership for you and your spouse is an easy item to be nixed if you find things like free yoga or Pilates that can replace it. Get creative and you might find a new passion, such as aqua classes in adjustable pools at your local community center.

When it comes to grocery shopping, consider the actual cost of convenience. You probably already know which nearby stores have the lowest prices, especially when combined with coupons and shopping seasonally, but it might not be quite as convenient as the store that’s a little closer. Or maybe you’re just a creature of habit or prefer the atmosphere of a costlier store; consider if the cost is really worth it. 

Travel Tips

It’s no secret that traveling standby can save you hundreds (or even thousands) of dollars. The downside is that you have to have flexibility, which is something many people in the workforce don’t have. However, flexibility is now yours and you can save a bundle on travel. Combine standby with traveling during the off season to maximize your cost-saving trip.

Price comparison is important no matter what you’re shopping for, including travel. If you really want to save, choose destinations based on proximity to you. If you live in New York, a trip to Puerto Rico will be much more affordable, not to mention an easier and with a shorter flight time, than a trip to Hawaii. Tropical locations also have off-seasons where hotels and activities are often half off, so plan accordingly. 

Are Your Accounts Working for You?

If you’re paying for a checking account, stop. There are plenty of checking accounts available with no catches for completely free accounts, including options at local credit unions. If you feel locked into a savings account that requires a high minimum for a low APR, it’s time to move on. What happens if you need that money? You’ll be penalized with monthly fees when the balance drops below a set amount.

Right now, there are very few options from CDs to savings accounts that offer anything beyond a paltry return rate. Don’t opt to lock your money away if there’s not a decent return on your investment. Instead, look for avenues to save your money with no strings attached. As a retiree, accessibility and no penalties should be at the forefront of any new accounts.

Being Able To Rent An Apartment In Spite Of Bad Credit – How It’s Done

Landlord? (Photo credit: the justified sinner)

You may know for a fact that renting with bad credit is a tough call. Landlords may not be willing to accept a prospective tenant who has bad credit because it shows that the tenant has had a history of not paying bills. This is only one of the ways how bad credit affects renting. 

However, you may still be able to rent a home, even with bad credit, your prospective landlord may accept you. 

Here are other tips on how to rent with bad credit: 

1. Talk with your landlord personally and show your credit report. Point out to him the entries where you are repaying your old debts. This will show him that you are earnestly working on neutralizing your debts, and will show him that you will be able to pay him when the rent comes due. 

2. If you have utility bills or rent that are past due, pay them off and have your former landlord sign a certificate that states that you've repaid these bills. Through this, you will be able to demonstrate that you are willing and able to pay the bills. 

3. Show your landlord proof of having a job. If you have a company ID, a payslip or a certificate of employment of sorts, you may show these as proof that you have a job and can pay the bills. 

4. Pay a larger security deposit. In order to help your landlord understand that you are serious about being able to pay your rent, paying a bigger security deposit may help communicate that. Not only that, your landlord will have something to use if you are late in some of your payments. 

5. Work on an auto-debit arrangement. If your landlord can accept a bank transfer or a credit card payment, you can devise a system wherein your rent would be automatically paid to your landlord's bank account at a certain date. You may also want to consider using checks and putting that on an automatic transfer system as well.

 
6. Ask someone to co-sign the lease contract with you. It may be a risk on your friend's part, but this will, at least, assure your landlord that someone else will be able to foot the bill if it comes down to that. 

7. Be willing to accept higher rental rates. Because you have bad credit, your landlord may try to capitalize on that and charge you more for bad credit renting. Grin and bear this tiny inconvenience, since you need a roof over your head. 

Bad credit really poisons a person's life. More than being unable to rent a home in a smooth transaction, bad credit may also keep you from being accepted for a job, or even a promotion. This is why you need to think long-term. 

How to change your financial circumstances for the long haul: 

1. Repay your debts. There's no other way to do it: you really have to repay your debts.

2. Sit with a financial advisor and consult him on how to manage your finances better. Try working with the financial counselors from Dave Ramsey's Financial Peace program.

3. Get a secured card and rebuild your credit. You can rebuild your credit thanks to the use of a secured card. A secured card is backed by actual money, but successfully paid transactions will still appear on your credit report. These successfully paid items will boost your credit score positively, and may bring you back from bad credit to good credit. 

There are simply so many benefits to bringing your credit back from its "bad" state and back into a "good credit standing." These tips will help you regain good credit, beyond teaching you how to rent with bad credit. Even if you will be able to get away with renting with bad credit, you will still need to have good credit for greater things, in the long run: when you apply for a car loan, when you apply for a home mortgage loan, all of these things require you to be in good credit standing. 

So look beyond needing to secure bad credit renting. Look beyond the concern of how bad credit affects renting. Instead, think about all the benefits that good credit can afford you and be inspired to recover your good credit standing. 

Amy Johnson is an active blogger who is fond of sharing interesting finance related articles to encourage people to manage and protect their finances. She also covers topics on credit monitoring & credit protection that can help people manage and improve their finances.