Weekly Savings Tip: February 22, 2010

How the CARD Act May Impact You

The CARD Act, signed into law last May, goes into effect today. Among other items, the new act will eliminate double-cycle billing, arbitrary rate increases and hefty fees for exceeding your credit limit. While many of these changes are positive, always read the fine print and be aware of credit card traps. Here is a brief summary of some of the changes the CARD Act will bring.
• In an effort to counteract the lost revenue credit card issuers may see due to the CARD Act, banks and other card issuers may begin implementing new fees or raising existing ones. Because the new law does not restrict the types of fees issuers can introduce, be sure you know exactly what you're being charged for.
• Credit card companies may begin placing restrictions on reward programs if you make late payments. To help avoid this situation, be sure to make your payments on time and read all notices sent by your credit card company, including those regarding changes to their rewards program.
• One of the primary benefits the CARD Act brings are a series of limits on how and when credit card companies can set interest rates. Previously, issuers could raise your interest rate just for missing a single payment without giving much notice. The CARD Act states that consumers must be alerted 45 days in advance before raising their rates.
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his is America Saves Week (February 21-28)! Take time this week to assess your savings by taking action and developing a plan to improve your personal savings. The America Saves Web site is an excellent resource for additional tips and advice to help you set aside more.

Also take this quiz to test your current financial literacy IQ while learning savvy saving tactics.Visit www.FeedthePig.org for more money-saving tips.

Weekly Savings Tip: November 9, 2009

Smart Use of Credit Cards

As the country begins to recover from the recession, retails sales are improving and, along with them, credit card use is on the rise, according to MasterCard Advisors. As the holiday shopping season begins, keep the following in mind when applying for or using a credit card:

• Most credit cards offer rewards, such as airline tickets, cash back, car insurance or other incentives. Paying off your monthly balance to avoid interest will allow you to fully reap the benefits of the card.

• Credit card applications may often contain low interest rates to attract customers. Before you sign, research varying interest rates, minimum payment requirements, grace periods, annual fees and credit limits.

• Understand the impact that cancelling a credit card will have on your credit score. If the card is one that you've had for awhile and consistently paid off, it could negatively affect your credit rating.

• Using credit card pay off calculators will help you realize what it will take to pay off your balance, and what personal spending habits you can change to meet your repayment goals.

Visit www.FeedthePig.org for more money-saving tips!

Weekly Savings Tip: September 28, 2009

Credit cards can help build a good credit history but improper use can be disastrous. Being knowledgeable and reading the fine print may save you money and prevent unnecessary charges. If you have one or more credit cards, consider the following tips:

• Credit card applications may offer low interest rates to attract customers. Before you sign, research the card’s varying interest rates, minimum payment requirements, grace periods, annual fees and credit limits before you
open a new account.

• Make payments on time to avoid possible automatic rate increases and other credit card pitfalls.

• Pay off your monthly balance to avoid interest and to fully reap the benefits or rewards your card may come with (cash back, frequent flier miles, etc.).

• Understand the effect that cancelling a credit card will have on your credit score. If the card is one that you've had for awhile and consistently paid off, it could negatively affect your credit rating.

• Credit bureaus offer a toll-free number that enables you to “opt-out” of having pre-approved credit offers sent to you. Call 1-888-5-OPTOUT (888-567-8688) or visit www.optoutprescreen.com for more information.

Read more on paying off credit card debt.

Weekly Savings Tip: July 14, 2009

Maintaining Good Credit in Turbulent Times

Sustaining a good credit score can be difficult when you are unemployed and money is tight. Here are some tips to maintain your financial health.

• Immediately evaluate expenditures, bills and financial accounts for strengths and weaknesses. Adjust your budget accordingly and minimize discretionary spending. Identify where you can lower or perhaps cut out expenses for entertainment, dining out and vacation or holiday travel.

• Contact your financial institution to inquire if it offers a hardship program. If so, you may be able to negotiate a payment plan that may include reduced interest rates and/or a lower monthly payment.

• Understand the impact that cancelling a credit card will have on your credit score. If the card is one that you've had for some time and consistently paid off, it could negatively affect your credit rating.

A credit score is based on your bill-paying history, debt profile and other statistical information. Lenders use this to determine the likelihood of certain credit behaviors, including whether you will pay on time. Closed accounts, liens, bankruptcies and late payments are a few of the financial missteps that can negatively impact your credit score for up to 11 years.

Remember to make looking for a job your top priority. If you need more help, go to fixing your credit score, or visit 360 Financial Literacy’s website.

Visit www.FeedthePig.org for more money-saving tips.