“I am 19, and have never owned a credit card, only debit cards. I have had a 47.50 (or so) debt in the past due to a large overdue fine to a Hollywood Video. I took my sweet time in paying that off and now after one credit card refusal, I expect that it has damaged my otherwise non-existent (to my knowledge) credit score, which (if I understand things right) puts me in a heck of a hole. How do I get out of it? I’m assuming that not building any credit, then going into debt just messed me up and I need to know how to get things right, but if I can’t get a card, how can I get good credit? This is a really unpleasant situation, especially with Christmas coming around.
money
Credit Card Grace Periods Keep Shrinking
By 11.15.07
The Kansas City Star reports the amount of time people have to pay their credit card bills keeps getting smaller, increasing the likelihood of incurring late fees, late fees which have been rising in cost over the years. Consumers used to have 30 days. Then it was 25. Now companies are moving towards 20. Furthermore, the date starts when they issue the bill, and it can then take 2-4 days to reach you. Cattle prods towards customers using online bill pay, death by a thousand fees. Keep an eye on those due dates, you never know when they’ll magically shrink again.
Buying A Home? Don't Rack Up Debt Between Approval And Closing
By 11.15.07
Don’t open any new lines of credit or go crazy with the credit card purchases between your home loan’s approval and the actual closing date, warns Ilyce R. Glink (doesn’t it look like we just tapped a bunch of keys at random to spell that name?) at Inman Real Estate News. Your lender will pull a second credit report before closing to make sure that you’re still capable of paying your loan—so if you’ve done anything in the interim that could impact your ability to pay, rest assured it will show up.
6 Ways To Save Money This Season
By 11.15.07
All Financial Matters offers six interesting ways to cut costs between now and the end of the year, and although we don’t completely agree with a couple of suggestions, we still think it’s worth a look.
1. Actually look at the price tag before you buy each and every thing for the rest of the year.
2. Avoid items marketed for the season. Their example: red and green candles work fine—you don’t need “Christmas” candles.
Where To Get Your Real Credit Score
By 11.14.07
Finding your credit score can be hard if you’ve never done it before. There’s scam sites, conflicting information, and the credit bureaus offering their own version of the credit score. But if you want your FICO, the real score looked at by lenders to determine your credit-worthiness and interest rates, here’s where you can go:
ABCDEs Of Cutting Down Debt
By 11.14.07
No Credit Needed offers these “ABCDEs” for getting yourself out of debt.
By 11.13.07
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Starting in 2010, high school students in Ohio will be required to take a personal finance class before graduating. [WTOL11]
Unused Gift Cards Aren't Free Money For Stores
By 11.13.07
While the information in yesterday’s post, “Don’t Let Gift Cards Become Free Money For Stores” was good, the title was erroneous. Actually, depending on the state, unused gift cards may be classified as unclaimed property. The value is then turned over to the state in a process called “escheatment.” It would appear, however, that in some states, the stores do get to keep the money. This PDF gives a breakdown of how the laws generally apply state by state.
Save Up For Purchases Using Replacement-Planning
By 11.13.07
These days, when some people want to buy stuff, they whip out the plastic. For life’s emergencies, this is sometimes unavoidable (if you don’t have an emergency fund), but there’s some items you know will need to be replaced and you have a decent idea of when. In those cases, Bankrate writes, you can borrow a technique used by condo-associations called replacement planning. To wit:
How $100/Barrel Oil Will Affect You
By 11.13.07
Oil is poised to break the century mark, and SmartMoney has a short article that examines the effects it will have on the average American’s budget. A couple of reasons why we haven’t felt more of these effects so far is that the rising cost has largely been eaten by oil refining companies and their gas stations, and because consumers have actually begun to reduce their gas consumption. However, if the price-per-barrel continues to rise, the U.S. faces a cold winter, and the dollar continues its anemic performance, you can look forward to the following consequences:
By 11.12.07
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How to write a will online for less than $100. [US News and World Report]
Don't Let Your Gift Card Scam You
By 11.12.07
Consumer Reports will take a full-page ad in the New York Times tomorrow to warn consumers about the pitfalls of giving and using gift cards. Their telephone survey found 27% of all gift cards go unused, and retailers took in an extra $8 billion because of unused, lost, and expired gift cards. Here’s their tips for making the most of the plastic:
- Register it Some cards must be registered with the issuer, especially if the card is used for purchases online or by phone.
- Spend it quickly Use the card as soon as possible, especially if it expires or has a monthly maintenance fee.
- Spend it to the last penny If the card balance gets so low that there’s nothing to buy, ask a merchant to do a split-tender transaction. That involves using the remaining card balance for part of the transaction and another form of payment for the rest.
- Hold on to it. Don’t throw out the card when the balance is zero. Some merchants require it for returns.
By 11.12.07
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“If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes.” – Warren Buffet. [via Money Crashers]
What's Your Time Worth?
By 11.12.07
One way to do that is to simply look at your hourly wage. If you make $20 an hour and something costs $40, you can figure that it takes two hours of your life to pay for that thing. (A fast way to estimate your hourly wage if you’re salaried: Knock off the last three zeros and halve the result, so $50,000 becomes $50, which halved is $25. The rate you get will be a bit high but in the ballpark.)”
Update: Chase Changes Due Date Without Warning, Charges Late Fees
By 11.12.07
“I talked to you briefly on 10-29-07 about my Chase credit card and having the late fee forced onto my account due to them changing the due date on my bill and an article was written about my success. I had spoken with a CSR and I had thought I got my late free removed, and my due date changed. Only to find out this months statement to have my due date again on the 26th but now my minimum payment was jacked up to over 3x the normal because THEY HAD NOT REMOVED THE LATE FEE.”
Share Money Problems With Today Show, Get Famous, Buy Gold Mansion
By 11.9.07
NBC’s TODAY show has a new series called “Make Your Life Better TODAY,” and they’re asking viewers to send in their personal finance questions so they can address them on-air: “Whether you’re single or married; young or old, we want to know your concerns about debt, retirement, investments, savings and more.” If you fit one of the following scenarios, they might even want to bring you on the show to find out who your baby daddy is. Or maybe so Ellen can cry at you? Something like that—all that daytime TV sort of blurs together.
Discover Lowered APR When Asked, But High Rate Still Applies To Old Balance!
By 11.9.07
“I took your advice a while ago on asking your credit card company politely for a lower APR. I asked Discover Card to give me just that.
