July 4th, 2009 Written By: Kerri Randall
You’re probably looking for as many ways to save money as possible right now, and car insurance costs are one place where most people start. You can use a lot of factors to your advantage, such as a good driving record, but can your credit score be used to lower what you pay for car insurance?
You already know that your credit score will determine whether or not lenders will approve you for loans, as well as what interest rate you’ll have to pay. But that score is also being used in other ways today–potential employers, your landlord, and yes, your insurance agent, may all check your credit history today. Just as you’ll pay lower interest rates on loans if you have a high score, you’ll pay less on your car insurance, too.
The two ideas may seem unrelated, but to your insurance agent, a better credit score indicates that you are a good driver. Of course, if your score is low, it may seem unfair to tie those things together, especially if you know you’re a good driver. Your defense against that is to maintain a clean driving record. In many cases, that can be enough for your agent to lower your payments, but if you can maintain a higher credit score, too, that simply gives you more opportunity to pay even less.
What would the reasoning be for increasing your rates due to a low credit score? Employers may choose not to hire you due to a low score because your history of poor financial management skills could mean you are more liable to steal or lie or even search for a different job right away because you wouldn’t be able to pay off your debt with the salary they can afford to give you. Your insurance agent may follow similar logic. If you have been struggling with money, you might be liable to purposely cause a car accident in order to collect the insurance payout.
Your driving record, where you live, and the length of your drive to work can all have an effect on what you pay for your car insurance. If you know your credit score is low, do your best to improve it. Once it’s high, you might want to make sure that your agent DOES consider it when determining your rates so that your credit score can be used for your advantage.
Categories: Credit Score Information
Tags: credit score and car insurance, driving record and car insurance, lower your car insurance
July 1st, 2009 Written By: Kerri Randall
Among people that have a credit card with a rewards program, the happiest customers are the ones that actually redeem the rewards. If that’s not you, your first task is finding the card with the right program for you, with rewards you can actually attain and ones you’ll be able to use.
So which type of rewards are you interested in? The most common programs revolve around travel, savings, and cash-back. American Express has cards at the top of the list in all categories, including their Membership Rewards card. You’ll find the most variety of rewards with this one, but there is an annual fee to consider–will your rewards outweigh it?
Citibank has their Thank You program that has been compared to American Express Membership Rewards. They offer similar rewards, but you have to earn more points to redeem them with Citibank. Thank You has the edge in my opinion, though, because there are no annual fees, you get bonus points if you have a checking and/or savings account with them, and you can redeem your points for a credit towards your Citibank credit cards and student loans.
Travel Rewards
If you travel quite a bit, Starwood Preferred Guest Card by American Express comes recommended from MSN Money. There’s an annual fee, but you can choose which airline you want to redeem your miles with. Capital One No Hassle Miles offers 1.25 miles for every dollar you spend, and there’s no annual fee, no blackout dates, and no expiration date. If you don’t mind an annual fee, the Capital One No Hassle Miles Ultra card gives you 2 miles per dollar for $39/year.
Savings Rewards
If saving money is a priority, American Express offers Fidelity Investment Rewards, Fidelity Retirement Rewards, and Fidelity Investments 529 College Rewards. With each one, you’ll have 2% of your purchases deposited into a corresponding savings account with Fidelity, with no fees and no rebate cap. You can save as much as you’re able to.
Cash-Back Rewards
If you’re not a traveler and your own savings arrangement is working just fine for you, a cash-back rewards program might be the best choice. Not to be outdone, American Express comes recommended at the top again with the Blue Cash card. You can get 5% back on purchases at the grocery store and gas station, and 1.5% on all other purchases with no rebate cap. Discover More will give you 5-20% back on certain online purchases with no annual fee, and Chase Freedom will give you 3% back on gas and food for your first 6 months with them (and 1% after) with no fee and no cap.
Rewards Restrictions
However, there’s always a catch. First, most of these rewards are only redeemable if you’re paying off your balance in full every month. And not only do you have to spend a certain amount to offset annual fees and earn the most points, but you may also have to spend a certain amount to qualify for the highest rebate percentage, or even to be able to redeem the rewards at all. For example, with American Express Blue Cash, you have to spend $6500/year to get 5% back, otherwise you only get 1%.
But if you know you spend enough, these cards can definitely be worthwhile. Be sure to read the fine print and watch out for any restrictions, expiration dates, or changes to the terms of the programs–they can occur quickly and with little or no notice. Don’t apply for too many cards at once just to get the rewards, as that can hurt your credit score, but do stay on top of your available rewards and milk them for all they’re worth!
Bonus: If you don’t spend enough to qualify for these credit cards, some banks offer rewards on debit purchases if you have a checking or savings with them, such as National City. Do some investigating and you’ll be sure to stumble upon rewards program that don’t require getting a credit card.
Categories: Money Resources
Tags: cash-back rewards, credit card introductory offers, travel rewards
June 29th, 2009 Written By: Kerri Randall
You’ve seen it in your mail: You’re pre-approved for our card with 0 APR for the first six months! Sounds great, doesn’t it? Charge whatever you want, and make no interest payments on it during the first six months, or year, or whatever that credit card’s time limit is. But is it too good to be true?
Not necessarily. 0 APR cards can be extremely beneficial; you just have to be aware of all the fine print. For example, take a look at what the normal interest rate on that card is. If it’s outrageously high, you might want to avoid their tempting introductory period offer. If you have a balance left on your card after that time, interest will start to accrue at their normal rate, and in some cases, you might be charged all of the interest you would have been paying if there was no 0 APR offer.
Interest may start accruing if you miss any payments during the introductory period, as well. You might be four months along into a six-month 0 APR agreement, but if your payment is late, you’ll start paying interest and late fees right away. You might be successful arguing your way out of it, but your chances are low, and if your creditor does agree to waive the fees one time, that might be all you get.
If you’re considering doing a balance transfer to a 0 APR card, find out if the 0% applies only to the balance transfer or if it applies to new purchases made during the introductory period as well. You don’t want to be surprised if you buy something with your credit card and suddenly find interest charges on your next statement. It might be a good idea to use the card purely for the balance transfer. A suspension of interest charges can make the balance easier to pay off, but adding new purchases will set you back, interest or no interest.
As long as you understand all the rules, you can use 0 APR to your advantage. Don’t get caught skimming the fine print; you’re the only one who will be hurt! It can be very easy to suddenly set off the interest charges before the introductory period is over, and you could end up defeating the entire purpose of getting the card in the first place.
Categories: Money Resources
Tags: 0 APR cards, balance transfer, credit card introductory offers
