Credit Card

Stacking Cash Back: The Way to Earn while you Shop

February 24, 2016 by editor

For all the reasons that people shop online, including presents for the holidays, birthdays and the like, it makes sense to try to get back as much as possible when shopping. This is where stacking cash back has become a popular method for ensuring that you are getting money back on the purchases that you make. These types of rewards help to give you more cash back into your wallet, making what you buy even cheaper than what you would have purchased in the store. It is just another reason why so many people are eager to shop online rather than go to brick and mortar retail locations.

[Read: Credit Card Tricks That Can Make You Money!]

How Does Stack Backs Work?

When thinking about shopping in order to ensure you are stacking cash back offers, you must first realize what this type of shopping is. Cash back offers that are stacked basically refer to several different methods for getting cash back on a purchase. Through getting all these offers, you earn more cash back, thus you stack the savings. For example, a person may shop for an item through a website that offers a percentage on whatever they purchase. In order to pay for the purchase, the person may use a credit card that earns cashback rewards. This is the exact way in which stacking cash back works.

Shopping with Cashback Sites

There are several websites that offer cashback rewards for those who utilize their service to shop online. In most cases, the website is going to have:

Numerous shops to choose from, including those major shops that most people would shop at regularly
The different stores may offer various cashback rewards. For example, one may offer 4% cash back, while another offers 12% cash back
They also offer discount and coupon codes to help save a person even more money. Though these are not stacking cash back offers, they can still be helpful in getting items for as low as possible

In most cases, once a person reaches a certain dollar amount, they will get paid for the shopping that they have completed. This amount may vary, but it may be as low as a person having to reach a $10 payout, while other sites may require $25 to be in the account before they pay. The shopping site may send you an actual paper check in the mail at the end of each quarter, or they may automatically deposit this into your PayPal account on file.

Getting the Most Cash Back Possible

There are several steps that need to be followed in order to ensure that the stacking cash back does work for you:

Step 1: Look for a cash back site and sign up

You will want to look at all of your options and decide on the one that best fits your needs. Take into consideration what stores they partner with, as well as the percentage of cash backs that they offer. You can sign up for several if you cannot make up your mind, as this is not uncommon, especially when wanting to ensure that you are getting the highest cash back that you can get.

Step 2: Start shopping

Think of what you are looking to buy and then start shopping around. The key to getting the best discounts possible is to utilize this shopping platform to earn money back, while utilizing your credit card that is going to earn a cash back reward. You will find that several credit cards will have months that they devote to online shopping and offering a higher rate back to card holders, so be sure to watch for these moments.

Step 3: Complete your purchase and watch the stacking cash back start to increase

You will want to purchase your item, with the credit card that earns you the best cash back, and then watch these rates start to compile. Though you may not get this cash back instantly, you are going to find that if you shop online frequently, that it is relatively easy to get a high amount of cash back at the end of the year or every few months. There has been people who have received thousands of dollars back due to stacking their cash back rewards.

[Read: Avoid Losing Your Credit Card Rewards]

Stacking cash back rewards is a great option for those who want to save money in the long run. They will find that they can still get great presents and items, but in the end, they are paying less for these. And who doesn’t want to get these items for less than what others are paying? For those who shop online, not doing this is the equivalent of simply giving money away. Instead, do some research and sign up for cash back rewards that are going to accumulate and end up paying you for shopping online.

To Credit Or Not To Credit: Steps For Giving Your Teens Credit

February 12, 2016 by editor

While high school students may know around the newest gadget and which social media site is hotter than hot, they are still learning about money.

Teens insert nearly $80 billion into our countries economy according to Piper Jaffray, an investment banker that studies the spending habits of America’s youth. While high schoolers have learned to be budget-conscious, deal-seeking, shopping machines as a result of their coming to age in the Great Recession of 2008, they still are a force to be reckoned with in the retail world. Companies are more inclined lure in teenagers due to the life-long loyalty this demographic offers.

[Read: Frequency Of Credit Card Use]

Thankfully, almost 85% of teens are still looking to their parents for guidance in money matters. Unfortunately, the guidance we offer is lacking. Twenty-five percent Generation Z (15 – 24-year-olds) do not know the difference between a credit card and a debit card. We need to help by;

Talking to them about money
Getting them a prepaid card
Teaching them how to budget
Getting them a checking account
Getting them a credit card
Setting a good example

We know the impact that credit history, and debt, have on a young adult’s ability to rent an apartment, get a job, and interest rate they get on a car loan. So we’ve put together some guidelines for helping teens get credit and learn about money. Whether you follow the no debt stance of Dave Ramsey or want them to own credit cards (and not vice versa) these steps will help your Gen Z-er start life on a good foot.

Giving Your Teen Credit

Talk to your teens about money

You will never be able to give your teens credit if they don’t know the first thing about finances. Don’t be the 33% of parents that don’t discuss finances with their children. They may not be ready for the pros and cons of 401(ks) and roth IRA’s but they are ready to learn about money. If you don’t feel comfortable answering all of your child’s questions, there are plenty of sources online, including MyCreditUnion.gov’s interactive games. How ever you teach your teens, they are looking to you for guidance.

Get a prepaid card

You’ve talked to your teens about money and it’s time for them to start testing the waters. A prepaid card is an excellent dry run, it won’t give your teens credit, but it will get them used to a spending limit. If you don’t want the hassle of user fees, introduce the envelope system to your teens. Whether they practice with cash or card they’ll learn; when you’re out of money, you’re out of money.

Introduce the budget

Teach your children a new B-word, budget. They’ll quickly learn that if they don’t track their expenses then they’ll continually run out of funds. If you’ve ever heard of the giving a man a fish to feed him for a day and feeding him for life. If your teen learns how to budget you aren’t just giving your teen credit, your giving your future 30-something credit. Nothing destroys credit faster than late and missed payments. Nothing prevents late and missed payments like a good budget. This tool can also be used to help your Gen Z-er to save up for particularly large purchases, like their outfit for the next school formal or prom tickets.

Open a checking account

You can find “minor” and “student” checking accounts all over the country, if your bank doesn’t offer one the bank or credit union down the street probably does. Once your teen has shown they won’t spend all of their money (see step 2) and that they are able to track and even anticipate expenses and income (see step 3) it’s time to give them more access to the cash. You’ll have two options, co-signing or giving your teenager free reign over their checking account. If you co-sign it’s easier for you to keep track of the expenses, and you’ll be the one paying if they overdraft their account.

Give your teen credit, by giving them a credit card

If you want your children to shun credit cards, skip to step 6. If you want your kids to learn about responsible credit card handling read on. Teenagers with income may be able to get their own card, if they don’t have an outside job you’ll have to co-sign. This will result in your credit card habits affecting their credit score as much as their habits will affect yours. If your teen still has trouble staying on top of his spending, or you have a negative credit habits, wait until later.

[Read: Your Credit Score Number]

Set a good example

Children do what they see more than what they’re told. Give your teen credit, by giving them insight into your financial habits.

A Guide to Establishing Stellar Credit

February 6, 2016 by editor

Credit is an extremely important thing for a financially mature adult to have. It allows you to get loans for homes and cars and rent apartments. Bad credit can increase the amount of interest you pay. People who have no credit or bad credit may struggle to get their credit to be pristine, but this guide can help make their credit score skyrocket.

[Read: 7 ways to create and improve personal credit score]

Check your Credit

Even if somebody has never used a credit card in your life, credit bureaus may have information that they have used to create a credit score. If they have had a credit card, they certainly do. There are free credit report services that can give a person their credit score. In America, there are three free credit-reporting services, so people can check their credit report three times a year by cycling between them. These services may also offer more frequent credit reports for a fee. You may find that you have a purchase that is misfiled under your name or a lingering piece of debt you forgot about. Make a habit to check your credit score regularly. In the modern financial word, the credit score forms a ladder to great purchases.

Choose Cards Carefully

Different credit cards have different options, and while signing up for the first one you see may look appealing, it may not be the best for the long term. Do some heavy-duty comparisons between choosing a card. Figure out what kind of benefits you want from your card. Some allow cardholders to earn travel rewards points, while others have no annual fee. If a person is getting their first card and establishing stellar credit, they should consider getting something with a low maximum credit so they don’t accidentally spend a lot of money at once. Be sure to read the fine print. A card that starts out with a 1% interest rate for the first six months might jump up to 12% once the grace period is over.

Work up Slowly

Getting a credit card can be difficult if you have bad credit. In that case, a secured credit card may be the best option. Secured credit cards help to establish stellar credit by having cardholders make a cash deposit before you use the card. They still have to pay every month, but they have a cushion in case they cannot pay. Another option to get a better credit score is to take out a small loan with a credit bureau and pay it back as soon as you can. The loan can be as small as $100.

Pay on Time

Always make sure the bills get paid on time. Credit reporting companies track the bills that are in your name, and if they see you are falling behind, they will count that against you. If you want to establish stellar credit, paying your bills is a good way to do that. It shows that you are a dependable, reliable person. Late payments will accrue interest, meaning you will pay more if you do not pay right away. In the digital age, there are more ways to remind yourself to pay your bills than ever before, and it’s good for your wallet and your credit score.

Mind Your Balance

Paying your creditor back is more difficult if you have a high balance. Moderate your credit card usage so you keep your balance low and pay less at the end of the month. If you have interest, know that the money you send will go to the interest before it goes to the original payment.

Keeping an eye on your balance will also inform you if somebody is using your credit card without your permission. That someone could be a scammer who stole your information or a ten year old who entered your credit card randomly when making an online purchase. Someone other than you making purchases on your account can destroy your credit score. If you find a purchase you did not make, contact your credit card provider right away. They have people that can help you resolve the issue.

[Read: Saying Goodbye To Old Credit Lines]

Focus

Establishing stellar credit takes a long time. There are times when you may be tired, upset, or stressed and want a simple solution. You could just give in and use your credit card rashly just one time. Resist that urge. The thrill you get from buying something you can’t actually pay for will crash down hard when you get the bill. One bad purchase could start an avalanche of problematic purchases that drags your credit score down. If you keep focused on the things you will be able to do once you have a good credit rating, you can overcome all of those tempting purchases. When you need that credit, you will thank yourself for being so diligent.

Frequency Of Credit Card Use

January 2, 2016 by editor

How often should you be using your credit cards, and if you hold on to them to long without use, will they get closed by the credit card company? Both really good questions. On the opposite end of the credit spectrum, from heavy overuse, is extreme non use of your credit cards. Although not as harmful as the former, the latter can have an effect on your credit score, and how the history shows on your credit report.

Factors to Consider

How many cards you have
How often to use them
When will they become inactive
Warnings

[Read: Credit Card Tricks That Can Make You Money!]

Lets face it, there is no one sure fire way to make your credit better, or worse, there are degrees of everything. When you consider all aspects of your credit score, credit history, and credit worthiness, you should look at the things that you can control, and one of those is the use and history of credit cards, you do not have to have them, or overuse them, they are not a right, but a privilege and honor. A useful tool to help you achieve financial success. But keep the four points in mind.

1. How many cards do you have

Having to many credit cards in your “rotation” can have a negative effect, in more ways than one, because if you are trying to keep them all active you may be getting into a financial hole, with overspending each month in attempt to create a payment history and credit personality. You may want to pare down your amount of cards, or put them on a “rotation” of such, so that you do not dig yourself into a deeper hole than necessary.

2. How often to use them

Well unfortunately, there is no set defined time in which a card can sit dormant before the issuer closes it out, and it may be a good idea to call and just ask them what their policy is. It may be three month, or three years of inactivity. But if you ask then at least you will know. Try and use your card at least every couple of months, or more frequently on smaller purchases, so that you can show a history.

3. When will they become inactive

If a card has become inactive for a certain period of time, then the issuer may not be reporting your history to the credit reporting agencies and that will have at the very least a neutral effect on your accounts or in the worst case a negative effect, showing an open account without any recent history. This may raise red flags to potential lenders, showing an inattentive state, or unawareness. It could indicate that you have little extra money to play with and you are just letting your cards sit because you cannot afford to use them.

4. Warnings

Don’t expect any fair warning that your card has gone inactive from your issuing company, because that is not their standard procedure, you may end up finding out that your card is inactive and a most inappropriate time, when you are out and about and attempt to purchase something with it and it gets declined. If you have not used a card in some time try a small purchase of a few dollars to see if the card is still active, and once that is done you can rest easy that they have not moved the card to an inactive status. In addition, it may not be as simple as a call to get it reinstated either, so be aware that if you need it you may have to re apply, which will impact your credit score.

[Read: Avoid Losing Your Credit Card Rewards]

In Conclusion

Your frequent use of credit cards is an important strategy in the overall health of your credit picture, in some instances credit cards can sit dormant in your wallet or safe without a thought. This can lead to them becoming inactive, and thereby not helping your credit score. Keep in mind that conscientious use of your open credit lines is a wise and useful tool to overall financial health. Keep the four points mentioned above; how many cards you have; how often to uses them; when they may become inactive; and, the warnings that you will not get before they become inactive. In a well thought out way you can use your credit cards in a proactive way to insure that your credit card issuers are reporting your activity, and that you are not spending to much to keep them active, thereby going to deep into debt.

It is in your control to, and your responsibility to take charge of your credit report, and how those open accounts look on there, to many inactive accounts can have a negative effect on your overall credit picture.

Things You Need to Know Upon Getting a Credit Card

December 28, 2015 by editor

So, you have finally decided to join the rest of civilization and get your first credit card. Maybe you got one of those pre-approved credit cards in the mail, or you really want to buy something online but need a credit card in order to pay for it, maybe even you just want to bring up your credit score and this seemed like a good way to do it. Whatever we the reasoning is behind you wanting to get your first credit card there are, in fact, some things you might want to look into upon getting one.

[Read: Eight Credit Card Mistakes to Avoid]

There are many benefits to getting a credit card. Most of us have them, but there still are some ithat don’t. Can’t be that hard to own and manage one, right? Well not really if you know what your doing. Let’s take a look at just a few benefits of having a credit card.

You can buy things from the comfort of your own home, in your pajamas if you wish.
You can buy things that you really need, in an emergency, if you don’t have the cash.
You can buy things for your home in bulk.

What Do I Need To Know About Credit Cards?

As stated above there are some fundamental things you need to be aware of when getting a credit card. Believe it or not most people just wing it when they get one, this is why it never ends well for these people, they don’t make themselves aware of even the most basic things you need to learn. They get a credit card and just start spending it right away and they either end up in a truck load of debt, have numerous problems with them and end up closing them. Owning a credit card can be fun, and it can be easy, just follow these steps and you will be good as gold.

1. Interest Rates.

One of the most common things you need to be aware of when getting a credit card is how the interest rates work. The interest rate on a credit card varies from card to card and it is generally charged by the day. It is always best to find out how much interest you’re paying on your card when you get one. This way you can calculate how much you should spend on your card in a day. Think smart.

2. Your Card Can Get Put On Hold.

This is just something to keep in the back of your mind when using your card. Your Card can get out on hold at any time for a number of reasons. One of them being fraud. If you are going to own a credit card this is something that could potentially happen and you need to be aware of this and take the steps so this doesn’t happen. Use common sense in this case.

Now if you go to use your card and find that’s it’s been froze call your company and find out why.

3. Use The Same Address

As tedious as it is, when you have a credit card say with PayPal, you need to make sure you use the same address that’s on the account for your card. It’s the same with any other card. All addresses must match exactly. If they don’t there will be problems when you go to use it. You don’t really want to be searching and searching for the problem only to find you used your street address on one and have our PO box on the other. Just save yourself the time and keep the addresses all the same.

4. Credit Limit.

Often times when you get a credit card it comes with a limit of how much you can spend in a day. Some have a limit of five hundred dollars, some eight hundred, some even have a higher spending limit. So when you apply for yours or get yours make sure you find out how much a day you can spend on said card.

5. Grace Period.

When you get your credit card you also need to be aware of the grace period. The grace period is the time between your billing cycle and when your first payment is due. If you pay all of your balance you can avoid paying interest on your purchases. But the longer you let it go unpaid after that the more interest you will have to pay. Again think smart.

[Read: Credit Card Tricks That Can Make You Money!]

In closing I hope that these tips helped you in becoming a smarter wiser credit card holder. Having a credit card is a convenient, fun thing that’s ment to be enjoyed. But can only be done when being smart about it. Be a smart credit card holder.