In the past few years, big banks have become so unattractive that many consumers switched to local banks and credit unions. Not everyone who dislikes their bank was willing to go through the trouble of moving their money elsewhere. According to a recent ConsumerReports.org survey, 63% respondents considered switching but didn’t go through with it because of the trouble it would take to transfer payments and deposits.Sure, switching banks is tedious, but in the end, you’ll...
In a comment to the Consumer Financial Protection Bureau on Monday, the Federal Trade Commission expressed its support of new protections for users of general purpose reloadable (GPR) cards. GPR cards are a type of prepaid card that can be “reloaded” with a payment. GPR cards have been gaining in popularity in recent years - especially among consumers who are under-banked or those who don’t meet creditor standards for a traditional credit card.Many parents also believe...
Dealing with identity theft can be a headache. One of the ways you can deter fraud is to add a fraud alert to your credit report. When businesses check your credit report they see the fraud alert which lets them know to take more steps to confirm your identity. Two Basic Types of Fraud Alerts There are two types of fraud alerts and the type you add depends on whether you’ve already been an identity theft...
Capital One recently got in trouble with the Consumer Financial Protection Bureau for deceptively marketing add-on services like payment protection and credit monitoring services. Consumers complained that Capital One representatives made it seem as though the services were required, when in fact, services like these are purely optional. Millions of cardholders will receive a refund for these services, including cardholders who tried to cancel the services but were unsuccessful. It’s wonderful that Capital One has to...
It takes years of good financial behavior to build a good credit score, but all your hard work can be ruined in just a few months. One or two slightly negative actions, like a maxed out balance or additional credit card inquiry, won’t affect your credit score too much. But, several negative actions in a short period of time can decimate your credit score. Apply for a bunch of credit cards in a short time span....
One of the best pieces of financial advice is to budget your money. Budgeting is the foundation of financial health and the key to accomplishing most, if not all, of your financial goals. Unfortunately, when you’re budgeting for the first time, things may not turn out the way you think they should. It may be the budget itself or the way you’re approaching it. Don’t give up. The problem can usually be fixed. Confirm you've created...
Credit cards have sort of a bad reputation, which isn’t completely the fault of the credit card itself. Often, people get themselves into credit card trouble by mishandling them. Nevertheless, that bad reputation has many people swearing off cards so as to avoid debt. However, avoiding credit cards can have other negative consequences. Difficulty Building a Good Credit Score Your credit score is based primarily on your history with debt instruments like credit cards and loans....
As you apply and are approved for newer credit cards with higher credit limits, attractive rewards, and better interest rates, you might forget about the cards you were using years ago. Because these old credit cards still impact your credit history – and sometimes even your monthly finances – it’s important that you pay attention to them, at least a few times a year. Be careful about letting old cards remain stagnant. If they remain dormant...
Retailers may start charging a fee to consumers who use their credit cards. For years, merchants have paid a processing fee for credit card purchases. It’s one of the reasons that many smaller retailers don’t accept credit cards. The recent change is the result of a lawsuit settlement between merchants and processing networks Visa and MasterCard. Merchants can assess a fee for credit card purchases, but it doesn’t necessarily mean they will. Those stores that do...
It’s a basic fact of life that you’ll have to do things you don’t want to do. Wake up early when you really want to sleep in. Postpone vacation because you have other financial priorities. And, pay bills that you really wish you could just blow off. It’s easy to think that we can skip certain debts because they’re owed to big companies who won’t miss our pocket change. Maybe they won’t miss your money. But,...
