Monthly Archives: May 2014

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Credit Card Trends

  • How to know if your teen is ready for a credit card (Fox Business News).  These four questions are a good place to start:
    • Are they a saver?
    • Do they have a job?
    • Do they understand budgeting?
    • Do they make their own purchase decisions?
  • CardHub reads the fine print and ranks credit card reward programs at ten largest card issuers (CardHub).  Very enlightening!   See who comes out on top with the most reward friendly program.  
  • A good starting point for comparing credit card offers (US News and World Report).  Note the interest rate premium on rewards cards:
“On average, rewards cards carry higher interest rates than non-rewards cards. According to IndexCreditCards.com, the average interest rate on a consumer rewards card is currently 17.64 percent, and the average rate on a non-rewards card is 15.48 percent – that’s a full two percentage point difference.”
 
  • When will consumers lose confidence in credit cards and when will banks tire of the losses incurred through fraud?  Here were the first four news articles when I searched Google News for “credit card” stories.  Great opportunity to teach students about ways to prevent fraud from occuring…

By |May 28th, 2014|Uncategorized|

Trends in Credit Scores

  • Six basics you should know about credit scores (Business Insider)
    • What it looks like
    • What it’s used for and why you should care (this letter from a San Francisco landlordshould scare any renter)
    • Who creates it?
    • What FICO has to do with it
    • What it’s based on
    • How to find yours
  • Interested in ways to improve your credit score? (Forbes)  This was one of the more creative tips:

“Using too much of your credit limit at any given moment doesn’t look good. Suppose your limit is $3,000 and a month’s worth of havoc (car repair, doctor bills, plane ticket for kid to get to college) means you’ve charged up $2,9000. Sure, you plan to pay in full by the 18th of the month – but until then it looks like you’re maxing out yet another card.

Instead, make one payment just before the statement closing date and second one right before the due date. The first will likely reduce the balance that the credit bureaus see and the second makes sure you won’t pay interest or a late fee.”

  • “Millenials have no idea how credit scores work:” Another reason to include credit scores in your personal finance
By |May 28th, 2014|Uncategorized|