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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Applying for joint credit — whether it’s in the form of a credit card, mortgage, or personal loan — can be a great way to boost credit limits, lower interest rates, and help the credit score of a spouse or loved on who co-signs the application with you. But this process is not as easy as some might think, and there are some important considerations to make both before and during the application period. These tips will save you time and anxiety as you pursue your joint credit application and ensure you get the best deal possible at the conclusion of your search.

Review Each Individual’s Credit Report

There’s absolutely no need to go into a joint credit application process without knowing both individuals’ credit scores. That’s because credit reports are generally available online without much of a hassle — simply provide your personal information and review the credit score that follows. You’ll need this information to help you decide which person will be the primary applicant. As most people know, higher credit scores lead to higher credit limits, better interest rates, and a greater likelihood of approval when submitting the application to a credit card company or lender.

Discuss Income Levels and Personal Debts

In the case of a credit card, a simple credit score might be enough for the credit card issuer to make a sound decision and reward the card to the person with the highest score. That person is also likely to receive the best terms on the credit card. However, there is something to consider if your joint application is for a loan or a mortgage: many lenders will pay less attention to the actual credit score and more attention to the highest income. That means the person with the lower credit score, with the higher income, may be the primary applicant. They may even have a better chance at approval.

Lenders who issue personal loans and mortgages are more interested in the income-to-debt ratio than simple credit scores. And while a high credit score certainly can’t hurt individuals on a joint credit application, it’s worth knowing exactly who is best-qualified for the specific financial product you’re applying for. And sometimes, that goes deeper than a simple three-digit credit rating.

Select a Credit Card Issuer or Lending Institution

Once you’ve fully fleshed out each individual’s creditworthiness and financial details, it’s time to compare. There are numerous comparison sites out there (like Credit Card Comapare for aussies) that are dedicated to helping you get a better deal on the credit that your looking for. This is perhaps the most essential part of the process, as it helps to determine where the best limits and rates will come from. Different financial companies will offer different rewards and bonuses to their applicants — some will be credit-based, but not all of them.

Credit card applicants should look for things like “cash back” bonus programs or cards that earn points toward rewards and future discounts. This is a great way of making your money — and your credit — work for you, rather than against you. Of course, credit card applicants and joint loan or mortgage applications will both want to look for the best interest rates, fee schedules, and limits on their borrowing. This can be an extensive proess, but it’s necessary for a sound financial future in the long-term.

Avoid Big Purchases Before Applying

This especially applies to mortgage applicants, but it’s helpful across the board to any joint credit applicants: don’t go on a shopping spree in the lead-up to your application. You don’t want to look financially unstable, or like a spendthrift, in the eyes of someone who is assessing your financial risk to their institution. Keep your debt loads light and your bank account fat.

Send the Application Digitally

Using an online application is a much better way of applying for joint credit instruments like credit cards and personal loans, as a decision can be reached in minutes or hours instead of days. And, for what it’s worth, you’ll save on postage. An instant decision helps you better know whether to continue applying elsewhere or whether your search is over. And it’s always better to know that sooner, rather than later.

Final Thoughts

Applying for joint credit shouldn’t be too difficult when all of the right steps and precautions have been taken. Know what you’re working with — credit scores, financials, and other information — and know where the best deal is.

Matt Polo is a writer for The Credit Letter, an Australian finance blog. He also write reviews on balance transfer credit cards.

Photo Credit: Robert Scoble

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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.

Photo Credit: eliazar

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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.

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.

Photo Credit: Andres Rueda

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