Credit Cards

Is It Better To Use Cash Or A Credit Card?

by Pam on October 10, 2009

Cash or Credit Card? The decision is really up to you. I’ve outlined just a few of the pros and cons of using cash versus a credit card to shop. I personally prefer to use a credit card, but I wouldn’t recommend using a credit card unless you know you can pay off the balance every month.

Pros to Using Cash:

*Both methods are not subject to per-transaction fees, however some companies reward customers for using cash by giving them a discount or benefit as it costs the company less to process a cash transaction than a credit card transaction.

*If the networks are down or if the power has gone out, stores can still process cash transactions.

*Carrying cash is also handy for those rare stores/restaurants that don’t accept credit or debit transactions.

*Some people become more conscious about how much they are spending when they use cash. If using cash makes you more frugal, then that’s definitely something to take into account.

Cons to Using Cash:

*Money is quite dirty. It’s been touched by a multitude of hands. You want to make sure you wash your hands after handling money.

*Money can get really heavy if you end up with a lot of change.

*Cash transactions generally take more time to process than credit card transactions.

*With the exception of a few stores that give benefits to those using cash, there generally isn’t any incentive to make cash transactions (i.e. no rewards points).

Pros to Using Credit Cards:

*Transactions are usually processed quickly and credit cards are accepted almost everywhere.

*You don’t have to pay for your transactions until the due date, so it can buy you some time to get the funds if you don’t already have the funds available.

*You can earn benefits/rewards for using your credit card.

*Many credit cards also have insurances and other discounts and benefits attached to them that you could take advantage of,

Cons to Using Credit Cards:

* You pay a significant amount of interest if you don’t pay off your balance each month. Most credit cards charge 19% interest or higher.

* It creates an extra bill for you to pay each month.

* For some people, using a credit card causes them to spend more money than if they use cash to make purchases.

It’s really up to you whether you choose to use cash or credit to make purchases. You know your spending habits better than anyone else, so you need to decide for yourself what works for you. Neither one is really any better than the other, but if one method helps you to be more disciplined when it comes to spending and saving money, then by all means, use that method.

The Day I Lost My Credit Card

by Pam on September 2, 2009

I had a bit of a scare recently when my husband and I went camping. When I went to pull out my credit card to pay for our campsite, my card was missing. Things like this never happen to me! I am generally an extremely organized person. But, sure enough, it can even happen to organized people.

I frantically thought of all the places I’d last shopped using my credit card. Because we were camping I was limited to using my cell phone. Oh, and of course I had forgotten to charge the batteries before we left so my battery was dead after one phone call. (Guess I’m not that organized, after all!)

Fortunately there was a pay phone nearby and I was able to remember the last place I had used the card. I spoke to an employee who confirmed they had kept my card for me. Talk about relief! I was so glad I didn’t have to go through the process of canceling my card.

Unfortunately not everyone has the happy ending that I had after losing a credit card. If the wrong person finds your card, they can spend a lot of money and cause a lot of hassle. In the event that this happens to you, here are a few things that you can do:

1. Contact your credit card company immediately and inform them of the fraudulent charges. They will close your card to prevent any further charges. I would recommend closing your card even if you don’t see any fraudulent charges after you have made an attempt to find your card and have called the places where you recently shopped.

2. The next step is to follow company procedures and fill out any applicable paperwork to ensure that you will not be liable for the charges. Be prepared to wait a while for the investigation to take place.

3. Even if you haven’t lost your card, but you notice an unusual charge on your statement or online banking, I would recommend that you follow it up. Even if the charge is small, it is still worth the time it takes to investigate it as whoever has your credit card number may decide to charge a larger amount next time.

4. For information on how to protect yourself from credit card fraud and other general information regarding credit cards, click here.

How to Make a Rewards Credit Card Reward You, Not the Company

by Guest on July 23, 2009

A rewards credit card can very often represent excellent value and present real benefits to the consumer. However, it is important not to sign up for a credit card based on the reward alone, and it will be important to take two things into consideration.

The first aspect to consider is whether the card itself represents good value in terms of the available limit, the interest rate charged and any fees, in addition to costs that might be incurred for general maintenance of the account. The second aspect to look at is the reward itself, and whether this represents one which best suits your own personal interests, needs and habits.

Very often, reward credit cards work by providing you with points on your account whenever your credit card is used to purchase goods or services from companies which are either subsidiary ones of the credit card company itself, or part of an affiliate network of finance and retail companies and organizations. One typical example many people come across is a credit card, which offers consumers reward points for purchasing fuel from a particular garage or retailer. With a set number of points per litre or per gallon, these points can be accumulated until a specified number have been reached.
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Money Management For Kids – When Do Kids Get a Credit Card?

by Guest on May 21, 2009

It’s never too soon to talk to kids about money, and as for a card, it’s best to start them on one before they leave home, say perhaps when they are a junior or senior in high school. Let me give an example.

Before my daughter left for college, she got a checking account, linked to her parents (of course), and then later a credit card with a very low limit. The idea here was for her to learn to pay for things herself before she got out into the big bad world on her own. I like starting them on these things while they’re still under their parents’ roof, so they get practice, and when they decide on the 5 jeans, and then realize there isn’t enough dough left for lunch and gas money, guess what? They brown bag it to school and take the bus! Or they ride with friends, etc. There’s no harm in their experiencing the consequences of overspending while they are with you, and their limit is low.

You can get a card with just a few hundred dollars limit, and then help them pay it off in full and on time every month. This is actually very good because it builds good credit, it gives them practice, and they feel like a big shot! Not only that, they aren’t constantly asking you for to cover the pizza fund. Well, probably they are still asking, but at least your child can see how far a finite amount of money goes, and learn to adjust, or not!
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Are You Underestimating Your Credit Card Debt??

by Guest on May 5, 2009

Learn How to Get Rid of Debt the Easy Way

Have you fallen into this trap? Repeatedly, reliable survey sources tell us that most of us do not realize how much we spend every month using our credit cards. Investigations reveal that when consumers thought their total credit card debt was about $20,000, in fact it was closer to $40,000. Scary difference – consumers are spending a lot more than they think! When we routinely pay for everything with the plastic card and don’t keep track of what we spend, these careless spending habits all too often lead to debt problems – problems which can easily be avoided.

To add to the problem, most of us have several credit cards, so if you use them to pay for everything, then you also transfer the balances from time to time to get a better interest rate, it’s easy to miscalculate how much you’re spending. With so many credit cards and with so many different payment options, it is easy to see how overspending can occur.

Six out of ten consumers don’t even know their account balances, so funds could be withdrawn in fraudulent transactions without them even realizing it! Now if you don’t keep track of your money, who else is going to? So what you need to do, if you haven’t done so already, is sit down and get an understanding of where you stand with your credit card debt. Double check what’s coming in and what’s going out, make sure everything balances at the end of the month, then continue to keep a tighter grip on your accounts.
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3 Things You Should Know About Credit Card Bills

by Pam on April 10, 2009

To save money, there a few things you should know about your credit card bills:

1. If you have credit card debt, pay your credit card bill more than once a month. If you get paid weekly, then pay part of your payment every week, and if you get paid biweekly, pay it down every 2 weeks. By doing this, you will significantly reduce the amount of interest you pay.

2. Another thing you can do to save money when carrying credit card debt is to pay your bill as soon as you receive it because although you won’t be charged interest on your most recent purchases, you are still being charged interest on your previous debt. The sooner you make your payment, the more money you save on interest.

3. Pay your credit card bills online as it ensures your payments will be made on time. If you can’t pay them online, make sure that you do not write any notes on your bill or it will more than likely be passed on to another department. This paper shuffle could result in a late payment and you don’t want that! Also, be sure to write legibly because if the company can’t read your writing they have an excuse to delay the processing of your payment, which may result in late fees and interest charges.

Credit Card Tips

by Pam on March 31, 2009

Choosing the Best Credit Card for You

Choose a card that gives you rewards every time you use it. Depending on your interests and goals there are a wide variety of rewards cards to choose from. Some financial institutions offer credit cards that pay out dividends based on the amount of money you spend. Don’t be afraid to shop around until you find the credit card that best suits your needs. Usually credit card companies offer bonus rewards for signing up. Note that you can usually get a rewards card without an annual fee so there is no need to pay to use your credit card. Also, be sure to take advantage of the in-store credit card offers that give you immediate discounts on your purchases. Make sure to pay off the balances before you owe any interest. Even if you never use the card again, it has saved you some money.

Once you have found the credit card that works for you, you need to know how to use it wisely and how to protect yourself from fraud. I have provided you with some tips below.

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