Using a Zero Percent Credit Card Offer to Your Benefit

We all get them, all the time. Especially if we have good or halfway decent credit. Those zero percent introductory credit card offers, checks, and special credit card offers that will give us either no interest for a specified period of time, or a dramatically slashed interest rate or APR for a designated time on either balance transfers or plain old purchases. But how can you use these great offers to your benefit without getting caught up in the credit card game where you are actually losing more than you are gaining by accepting one of these seemingly interesting deals?

Well, for one, the obvious answer to that is to make sure you pay off the purchases or balance transfer well before the introductory period of a lower or zero percent interest rate is up. This way, you’ve potentially transferred a higher, less beneficial debt to a lower interest rate while you get your money together, and you actually make out in the end by saving all that extra interest you would have paid if you had not accepted the offer.

But many credit card companies are relying on the simple statistic that most people will not pay off the entire balance before the introductory period has expired, and they, in the end, will end up paying the credit card lender a percentage of interest on that money that they have essentially lended to the cardholder at the end of the intro period. Not such a great deal if that’s the case, huh?

Well, I’ve actually done this one before, and while I regret saying I did not get the balance paid off in time to beat the intro period for the low apr credit card, I did pay it off a few months after that. Since the credit card offer I had accepted happened to be a balance transfer zero apr one for an intro period of six months, I saved on the higher interest I was paying on the credit accounts I had transferred over rather than paying that higher interest for a period of six months. Believe it or not, even though I didn’t get it totally paid off in that intro period, I still benefitted because of the way I planned it. So, many times, if you plan carefully, it can still be a win/win situation!

New “Status” Credit Card Appeal

You know, as with everything else, they just had to make credit cards that would appeal to that small segment of the population that wants everything to be a status symbol, and a super-high end testament to the high lifestyles that some of us like to live. Credit cards are no exception. We have “Gold” status credit cards, Platinum status cards, and others that imply that we somehow are a better, more educated and higher faluting card holder than someone who has just a plain out airline miles credit card or some other sort of average joe card.

But now, credit cards are crossing an even bigger threshold in the outdoing factor, and have come out with newer credit cards for the “elite” segment of the population that demands high limits and better quality in these new higher stakes credit cards that offer excellent service, even called a concierge service by some higher end cards, very high credit limits and other perks that are limited only to one’s elite customers. One such card, by American Express, is simply called “Black”.

The black card, which is actually made of titanium (overkill, I know) is a card by American Express that is actually called the Centurion, and it is a status symbol for the rich and high spending everywhere just by the mere production of one such card from one’s wallet. I’ll admit, I wouldn’t know it if I saw it being produced from someone’s wallet from a hole in the wall, but apparently some people keep up on such things!

Here’s the crazy part about the Centurion card by American Express though. You have to have a minimum net worth of five million dollars, and the rules are that you almost must charge at least $250,000 each year to keep qualifying for this coveted instrument that many recognize as the highest stature when it comes to credit cards. No thanks, I’ll stick with my average joe cards, which are the best gas credit cards, prepaid credit cards and airline miles cards of yesteryear. Call me a chump, but I don’t plan on having five mil in the bank for quite a while folks!

Budgeting Your Money

If you’re like most American families, it seems as if there’s never enough money to stretch from paycheck to paycheck, let alone put something into savings for future use and interest growth. There are some tips on saving money or, at least, items you can assess to see if they’re worth spending money on or an area where you can conserve.

Start with the most constant source of absolute need that strains your paycheck the most continuously, the grocery shopping. Ask yourself if you’re shopping at the most expensive store and if you can fill in on certain items at the cheaper, discount style grocery stores. Comparison shop for similar items at different grocery stores to discern which items are less expensive at certain locations. You may find you’re saving between $10.00 to $30.00 per week by doing this without denying yourself proper balanced nutrition that is still tasty.

Look at items that may be incurring extra service or late fees. Certain bills, such as utilities, may have an added fee if they’re paid after a particular due date. If your insurance payments for either your car or home are on monthly installments, you may save about $5.00 or better per month in service charges if you switch your payment to direct debit from your checking account.

To keep energy costs in check, adjust your thermostat to the lowest possible setting, in the winter , that is agreeable with the family. Wear sweaters and layers indoors. Insulate your house well, especially the attic where most heat is lost. Check windows and doors for air leaks and heat loss and caulk accordingly.

In the summer, try using fans to cool you when it’s uncomfortably hot. Use your air conditioning sparingly for the exceptonally hot and humid days. Maintain your car well. Oil changes done frequently and other maintenance procedures will extend the life of your car appreciably. These minor expenses will cost you far less in the long run.

Shop for clothing at the end of the season to get the best bargains. Look for classic styles that won’t be considered out of fashion by next year.
Talk with your spouse and family members about conserving money and budgeting and work together on a plan. Maintaining a budget takes a team effort within families to make it succeed. It will decrease stress on the family unit dramatically if you can keep your debt down and save something for your future needs.

New Info Shows Credit Cards Can Make You Fatter!

Well, it’s no news that credit cards and their many faces have made everything more convenient here in the US, but it is sorta news that having credit cards, debit cards and prepaid credit cards can actually contribute to making us fatter. Why? Well, of course this is a little hoaky to report on because it’s fairly obvious, but credit cards make it more likely that people will not pass up that restaurant and go home and make a healthier choice, or that fast food restaurant since all of them tend to take credit cards at this point, and you’ll order food from them instead of doing the harder thing which is either going to the grocery store to make your own food, or just not stopping and getting that extra food you need.

So, the problem is also that people not only stop at fast food restaurants more because they have credit cards, but also they tend to order more food that is more than likely not so good for them. Knowing that they are not parting with cash, and instead of putting it on credit is not a deterrent to ordering food as it was in the past, and with the fast pace of lifestyle we’ve all chosen to live, it’s way more convenient to swing through a drive through and pick up some grub than it is to go out and buy it and make it.

Before fast food restaurants tended to not accept credit cards because the transactions were a little too tricky to perform while still keeping things moving along as a “fast food” restaurant had to do. Also, many credit card companies charged fast food restaurants prohibitive fees to have the services allowed in the restaurant, and they weren’t able to offer this convenience to their customers because they couldn’t handle the costs for every transaction being so high in return for such a little bit of return money.

With the increased offerings of credit cards for bad credit as well, there are a lot more credit card companies offering credit cards to those that normally would not qualify for them, and this has been speculated as a contributing factor to the increase in ordering of foods and increase of large orders on credit at fast food joints as well.

Is an Insurance Policy a Good Investment?

Some say that buying whole life insurance, the type that you pay for dearly every month, but it also returns your premiums (and then some, if all goes right) at the end of the policy term, is a bad idea. The only reason they say it might be a good idea is if you are one of the lucky few who are maxing out all of their other savings and growth avenues, such as 401k’s at work as well as IRA’s, where the growth is going to be much better with less fees and other moneys taken out, than in the low growth of an insurance policies typically very conservative investments.

I have to admit, buying whole life insurance as opposed to term, where you pay much less premium, but do not get any sort of return on your money, did seem like a good idea to me, but upon further examination, I wasn’t so sure. The investment return does seem a bit conservative if you look at it compared to a higher yield of mutual funds and the like that you are typically investing in if you belong to an IRA or a 401k or other similar investments that usually offer some sort of tax advantages, whether it be up front of back end.

So, I would suggest you talk to a fee based counselor on this, since their interest is usually not commission based and their advice is going to be more geared toward what helps you out the most financially, instead of what they want to push or what their manager happens to be telling them to push that week.

Credit Card Delinquencies Fall, Mortgages Rise

In what seems like a slight oxymoron, credit card payment delinquencies (credit card payments that are pretty late in other words, usually over one month and into several months late) were on the decline for June and home equity loan delinquencies were on the rise for a one and a half year high according to financial reports. Home equity loans are loans that people take out against the value, or equity of their homes, in order to pay bills, make home improvements, and do whatever else it is they need to have liquid cash available for.

But people are making their payments late now more than they have in over one and a half years on the home equity loans, creating the oxymoron between credit cards being at a low right now for delinquencies. I doubt the two are related, or it would be very hard to prove that they are, but it does seem ironic that the lesser of the two “evils” when it comes to credit securing is actually the one that is at a high and not the revolving debt one. It is becoming increasingly publicized that having bad credit can ruin your chances of getting good apr’s on loans and other financial instruments including mortgages.

Payments for home equity loans are considered delinquent in this report if they are more than 30 days past due, so this is actually kind of a stringent number if you ask me, especially since a lot of home equity loans and mortgage loans will offer a grace period without any fees that extends beyond (sometimes well beyond) this 30 day threshold.

And, the good news is that credit card delinquencies are way down, by roughly 4% which is considerable. Maybe people are realizing that if they don’t make their payments on time, the outrageous late fees might just not be worth it. Also, I think people are more aware of their credit cards and the fact that the revolving debt, even if you have a low apr credit card or special credit cards for bad credit, is detrimental to your financial well being if left unpaid, or the minimums are always paid.

Financial Affluence on the Rise?

It seems that the dubbed “affluent” of the population here in the United States has grown over the past few years, despite the economy being in the toilet so to speak. Who knows why the affluent sector has grown during hard economic times, but it is said that mostly the blue collar class has suffered the most during the current administration, and I’d believe it with this new story. The group of affluent investors is defined currently as investors with an investable net worth of at least $500,000.00. This means their assets that are liquid and able to be invested, not tied up in loans or anything else that can be termed a liability I guess.

It is said that about 9 million households in the US right now have about a net worth of one million dollars or more, which is a substantial increase from previous years, signalling either it’s easier to make a million bucks now, or simple inflation has made it easier for people to amass that previously coveted million dollars. It seems a million dollars isn’t as much as it used to be!

What does this mean for the financial services industry? Well, it means that they are getting more clients who want to accomplish long term financial goals, and may also be making more commissions or fee based money off of people since a larger segment of the population seems to have excess money that they need to be making money off of instead of letting it sit and stagnate.

You may even fall into this category. Many entrepreneurs are taking flight nowadays too, since it seems to be everyones dream to not work for the “man” and to be able to be free of corporate restraints and all the other BS that often comes along with having a full time job. This mentality being on the rise may also account for the recent increase in self made or otherwise made “millionaires” or half millionaires, so to speak.

Choosing the Right Bank

In the event that you are a young adult looking for your first bank or if you are already established with a bank, but are disillusioned with your present bank for some reason, what do you look for when selecting a bank? Probably, the first item to look at is the location. Is there a branch near your home and near to where you work? Make sure it is geographically convenient for you. Also consider what hours and days they are open and how that will fit your schedule.

While shopping for convenience, find out their availability of technological advances. Consider the ease of their online banking services and their security of these services. Does the bank have online bill paying available?

Find out the loan services and interest rates that would apply. Compare these services for different types of loans that you might need in the near future. When looking for a bank, find out if they have customer service representatives you can talk to about different financial situations. Make sure you can talk to and ask questions from a live person, not just an automated tape recording.

Look at the savings options offered to you. You want to see a variety of plans such as certificates of deposit, traditional savings, IRA’s in both the traditional and Roth. Find out the interest rates and time frames involved for each type of plan. Again, you want to see and talk to customer service representatives for an explanation of these services.

Another important area to look at is the different types of checking accounts they have to offer. See if there is any kind of overdraft protection available and what types of fees apply. Research and determine if there is an interest bearing checking account if you have a sum of funds you want to keep liquid yet need to earn interest on.

Ask about debit cards, prepaid credit cards to avoid hefty balances and finance charges if you’ve had credit card problems in the past, and ATM cards and find out if there are any service fees that apply on using these. Call around and stop in and visit your potential bank in advance to selecting which bank is the right one for you.

Credit Card Giant Visa Going Public

Wow, I read this and thought I must be behind on the times, because I thought such a huge conglomerate like Visa would have already gone public and offered it’s IPO (initial public offering of public stock) to the public so that it can become an internationally traded company on the stock exchange.

But alas, wonders never cease and the enormous credit card company who offers everything from great balance transfer credit cards, some of the best airline miles credit cards and prepaid credit cards through various bank channels, has not yet gone public and is now preparing to. They’ve filed with the governing arm of stock and securities for how they plan to reorganize and are making the announcement as soon as all is ok with the filing as far as I understand.

So, why now has the company decided to go public? They would like to offer the stock publicly in order to raise funds to promote higher tech payment methods and new innovations in the credit card world, and of course to be better able to compete with the other credit card giant, MasterCard.

I guess when MasterCard went public and offered the stock initially, just a short while ago, the shares more than quadrupled, so Visa is hoping to have the same response from it’s potential investors. I have one question, how do I get in on the IPO? Hmm….this may be my first research project – but I have a feeling this IPO may only be offered to a select few! I’ll keep you posted if I’m able to find anything else out on this intriguing development with Visa Credit cards!

Credit Unions to Avoid Bank Fees?

Well, yes, and I wouldn’t blame anyone who chooses a credit union over a traditional, corporate-backed bank these days either, since the banking fees, including service fees, atm fees, and overdraft fees tends to be in the ridiculous amount are lately! I recently read that a lot of people are choosing to give up their regular banking and checking accounts in favor of smaller credit unions, which often give a much better break when it comes to not only banking fees, but also small loans.

I actually had a friend that bought a car years back who belonged to a credit union through her dad’s job, and she ended up using the credit union to secure financing for the car instead of going through the dealership’s in-house financing (much to their chagrin of course), and got a great deal on financing for the vehicle because of it, whereas with the traditional bank loan being offered by the dealer, she would have been paying a lot more in interest and fees.

I didn’t really understand why she went to the trouble at the time, because we all know how much easier it can be to go with an in-house banker, but now I do see why – she ended up saving hundreds, if not thousands of dollars in interest just by going with the smaller outfit to finance.

Some credit unions may even offer credit cards or lines of credit – it really depends on the size and financial stability of that particular credit union, but if you have a credit union offered through your place of work or some other organization you belong to, you may want to strongly consider a membership since being a member has great benefits usually. Of course, it does depend on the credit union itself, but typically that is why credit unions are appealing.