This is a money making tip for the 50/50 Challenge.

It’s Time to Look for an Alternative Credit Card

This week I had a problem with my credit card and I decided that it’s time to switch to a new one. I’ll have to wait until after we work this refinancing the house plan, but after being frustrated with how they process payments, I figure I can do better.

Send a Payment In, Wait 2 Weeks?

The problem was regarding some payments sent out to my credit card. Back in September I had to call them because I noticed my payment hadn’t gone through. I was told that it takes up to 5 business days to process my payment.

Taking their (slow) timing into account, I scheduled a payment (from our joint checking) to make my minimum due since it was just before my paycheck. That was processed in 24 hours. Fantastic.

Payday came a couple days later and I sent it another payment. I wanted to pay the balance. This bigger payment sent on 11/4 didn’t show up for a couple of weeks.

When I asked the representative about why it took so long I was told that it now takes 7-10 business days to process. I find it hard to believe and wanted to see what has changed to cause payments to be delayed this long.

Looking Around

In case you’re upset with your current credit card, I wanted to share a few tips on finding the right card for you as well as mention a couple of options.

Finding the Right Credit Card

Before going out to pick a card, it’s to ask yourself a few things about how you plan on using it. Not all cards are equal and even if one has some great benefits, if it doesn’t your financial lifestyle, it’s not the right card for you.

You must ask yourself if you plan on paying off the balance every month or if you are going to let it carry over (perhaps a balance transfer so you can pay debt down faster).  If you plan on paying it off, it may be better to go with a rewards card that has a slightly higher interest rate.  Since you are paying it off in full every month, you won’t have to worry about how high or low the APR is.

Ask yourself what will benefit you most. If you like to travel, you will want to apply for a card that offers some type of reward travel points.  If you would rather have money back in your pocket, you may want to search for a card that offers cash back or rebates toward certain purchases.

For us, I’d like a card with cash back rewards for things we already make purchases on. We plan on paying the balance on it every month and we’d like to use it to book our vacations to earn more rewards. If we can get a bonus for signing up that would be great.

Possible Contenders

Right now there are a few choice out there with the credit cards.

Chase Freedom® MasterCard – $200 Bonus Cash Back + 0% Intro APR: To get the $200 bonus we’d have to charge at least $500 during the first 3 months from opening the account. This would be possible if we move some of our bills over to the card and pay the card off at the end of the month. It also has 1% cash back on everything with no cap and it offers 5% cash back on select categories throughout the year.

True Earnings® Card from Costco and American Express: We’re Costco members so I noticed this right away when I started looking around. You get 3% cash back on gasoline purchases, 2% cash back on travel and restaurants, and 1% cash back on the rest.

Discover® More Card:An other cash back card that offers a bonus (Discover’s bonus $150) if you spend at least $1,000 during the first 90 days of opening the account. It has 5% on select categories that rotate throughout the year and it’s 1% for the rest.

They’re all good cards that offer a lot of the same specials. I’m leaning more towards the Chase card because of the bonus. I have friends with the TrueEarnings card that swears by it and another buddy that loves her Discover card.

Thoughts on Switching Credit Cards

How many of you use a rewards or cash back credit cards? How happy are you with the customer service you’re getting? Are there any other good deals out there on credit cards?

Photo Credit: Robert Scoble

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An interesting credit score data mining observation has emerged from our friends over at Credit Karma.

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If you don’t normally give much thought to your credit score, but find you’re being rejected by lenders maybe now is the time to take action. Your credit score is essentially your credit reputation, or your history as a borrower. Since your credit score reflects your financial history, it gives lenders a basic idea of your creditworthiness.

This becomes important when you apply for a loan or a credit card. It’s easier for someone with a high credit score to get loans and competitive interest rates, while a low credit score can cause you to be denied a loan altogether. For this reason, it’s important that your score is both correct and as high as possible.

So, how can you optimize your credit score? There are many small steps you can take, but they can each have a big impact on your score. The following suggestions will help you boost, and maintain, your credit score.

Get a Copy of Your Credit Report

There are several ways to get hold of your credit report, but the internet tends to be the easiest. There are many websites that are designed solely for this purpose, so utilize them. Be aware, however, that there can be a fee associated with obtaining your report from these websites. You can also contact the credit bureaus directly and request a copy of your credit report.

Check the Report for Accuracy

Your personal information, such as your address and date of birth, should be correct and current. Any debt you have, as well as who you owe, will also be included. Delinquent accounts should be listed, as well as any criminal history. Generally the report will only contain information for the last seven years, so if anything older than that is included, contact the credit bureau, in writing, to have it removed. Any information that’s incorrect should be updated immediately. You can contact the credit bureau directly to do this as well.

Remove Bad Debts

Getting rid of any record of bad debts can have a very positive impact on your credit score. If your credit report shows any late or rogue accounts, get these back in good standing immediately. Sometimes you can contact these lenders to negotiate a payoff, or to set up a payment plan that’s more manageable for you. In any case, you’ll first want to pay any outstanding amounts, and then stay current on any future payments. Keep all accounts current if you can’t pay them off right away.

Sign Up for New Credit

If you don’t already have a credit card, get one. Be diligent about making payments on it and only use it when you’re sure you’re able to pay the bill. By having a credit card and using it responsibly you can establish a positive credit history for yourself. Make sure you pay at least the minimum, and always pay the bill on time. This will show that you’re consistent with paying back your debt, which will also help to raise your credit score.

Opt for an Installment Loan

Installment loans-such as car loans, student loans, and mortgages-are especially good for increasing scores, but you must be diligent about always making your payment. Never borrow more than you can afford to pay back. Also, be aware that when you apply for these types of loans, your credit score is often pulled. You often need to demonstrate a decent credit score to be approved. Additionally, applying for too many loans and being rejected will actually have a negative effect on your score, so be careful with this option.

Give Your Card a Break

When using your credit cards, don’t always use your card immediately after fully paying off the balance. If you have multiple credit cards, try to use each one every few months. You should also try to not use any one card more frequently to avoid a large balance to one lender. By using different cards and leaving gaps between full payments and use, it will look as if you’re not dependent on credit cards to live.

Avoid Large Balances

While having regular activity on your cards is important, carrying too much debt can make you appear financially strained, so be sure to pay balances quickly. Strive to pay off your credit card balance each month. If you’re unable to pay your balances in full, make sure you’re at least making the minimum payment due, and make sure it gets there on time.

Maintain Old Accounts

Keep older credit card accounts open and use them from time to time. The longer an account has been open, the more information on your credit history is available. Having an established relationship with a lender can indicate to other companies that you are a trustworthy borrower. By using older accounts that are in good standing you reinforce your established pattern as a responsible borrower.

By being aware of your credit score, you will have a general idea of your creditworthiness and your financial reputation to lenders. Striving to maintain good credit habits will pay off in the long run. With consistency and dedication, you can easily raise your credit score and get your financial life in order.

This article was written by William from Home Loan Finder. Visit Home Loan Finder to compare home loan interest rates.

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No one wants to be defrauded. No one wants to have their identity stolen. No one wants to lose their hard-earned money. As a result, fraud protection is often one of the key concerns consumers have, and the question that comes up over and over again is: Does a credit card or a debit card protect my money better? Well, why don’t we find out once and for all?

The Perception of Fraud Protection with Debit and Credit Cards

People naturally assume that a debit card’s fraud security exceeds that of a credit card for a number of reasons. Many think that because a debit card only affects what’s in your checking account and doesn’t give users access to a line of credit, a thief could only do so much damage. Others consider debit cards to be the electronic version of checks, which themselves are considered far more secure than credit cards.

Much has also been made of issues within the credit card industry over the past couple years, and some people have grown to distrust credit cards. Besides, you hear an awful lot about credit card fraud on the news, so that must mean they aren’t too trustworthy, right?

The Fact of the Matter

Both credit cards and debit cards have $0 fraud liability, which means you won’t be held liable for unauthorized charges whether you’re using a credit card or a debit card, and there is technically no difference in the fraud protection they provide. Still, let’s consider an example to see if there are any practical differences in their protection.

The Practical Application

Imagine your debit card account number gets stolen right around the end of the month, and unbeknownst to you, your checking account gets wiped clean. When your mortgage statement arrives the next month you notice that you’re classified as delinquent and have been assessed a hefty late fee, so you quickly look through your check book and confirm that you did indeed send a payment on time.

What’s going on? Well, when you call your bank you’re told that the check bounced due to insufficient funds. Fraud has obviously taken place, and while the bank says you’ll be reimbursed for the unauthorized charges, you still have to sort things out with the mortgage company.

This is only one side of the coin, however, so let’s replace a debit card with a credit card in the same hypothetical situation.

Money isn’t automatically removed from your banks accounts when a credit card is used for payment. You typically have at least 21 days to pay for charges after receiving your monthly statement, meaning you have a buffer with which to deal with any fraud. Therefore, not only will you ultimately recover any money spent fraudulently, but the simple fact that you were defrauded won’t have a ripple effect that damages other aspects of your financial life, like your mortgage or your credit standing.

Thoughts on Fraud Protection for Credit and Debit Cards

Ultimately, there is really no difference between debit cards and credit cards in terms of the fraud protection they provide. Both spending vehicles have $0 fraud liability guarantees, meaning you’ll get your money back no matter which you’re using.

However, the simple fact that money is removed from a checking account immediately upon a debit card being used makes debit card fraud more difficult to deal with than credit card fraud. As a result, we have our answer. Credit cards provide better protection against fraud than do debit cards.

This article was written by Card Hub’s CEO, Odysseas Papadimitriou. Card Hub is a personal finance website that helps consumers find prepaid cards, gift cards and the best credit card deals.

Photo Credit: Andres Rueda

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One great thing about credit cards is that you can use when your car breaks down on the highway and you need a tow and there’s not enough cash in your wallet or an ATM nearby.

If you have that cash in savings, you’d immediately pay your card and you’ll have no interest to pay. The problem is when you don’t have the savings and that emergency is growing on your credit card.

Start an Emergency Fund Quickly

A first goal is to save enough to cover monthly bills, then your next goal might be 2-3 months. Have a portion of your paycheck transferred to a high interest savings account. Start small, like 5% of your income, and automate your money to transfer to high yields savings. You’ll be surprised how you won’t notice the little decrease in spending money. If you get comfortable, you can increase the amount.

Looking for a few ideas on finding money to save? Try out Flexo’s 50 tips to starting an emergency fund. Here are my top 5 from the list:

• Whenever you purchase groceries with a coupon, deposit your savings into the bank.
• Tutor a young student in a subject you know.
• Reuse any items you can rather than buying new, and pocket the difference in your emergency fund.
• Shop around for a new insurance provider.
• While paying attention to small, repetitive expenses, don’t ignore larger decisions like your car, house, and wedding. With smart choices on big-ticket items, you could fully fund an emergency account with the savings.

It doesn’t have to be difficult to save some money. You just have to be creative and motivated to make it happen.

Why We Use ING Direct for Our Emergency Fund

We’ve been with them for years and love it their checking and savings accounts. They have all the major features we’re looking for with a bank:

• Covered by FDIC
• No monthly maintenance fee
• $0 required minimum balance
• Free online BillPay service
• Conveniently located ATMs
• Earn some interest rate if possible

While they don’t have the highest rates, they’re still competitive and their customer service has been great for the few occasions we’ve had to use them.

Thoughts on Starting an Emergency Fund

Have you had to adjust and move away from credit cards to a proper emergency fund? How have you been able to work as a couple and build your emergency fund?

Photo Credit: Brett L

Thank you again for subscribing to Couple Money! Here some recent popular topics from the site:

• Save on Baby Expenses
• Pay Down Debt Faster
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• Retire Rich