All posts tagged credit cards

DSEF & BBB: Online Shopping Taxes to Be Implemented

DSEF & BBB: Online Shopping Taxes to Be Implemented

ecommerce3-150x150By Nicole Bradley

According to The Wall Street Journal, online purchases will soon be subject to taxes. The Senate has passed a bill putting an end to tax-free online shopping; however, the final vote is set to occur on May 6. This bill, titled the Marketplace Fairness Act, enforces states to require online sellers all over the country to collect sales tax on any online purchase made by their residents. In the past, online retailers have greatly benefited from not having to charge shoppers with sales tax. With this luxury coming to an end, Web stores are now part of corporate support helping to aid the passage of the new bill.

Chief Executive of eBay, John Donahoe, explains that this bill will damage smaller retailers in that it will treat them the same way larger merchants are treated; however, these larger merchants have greater tax-collection capabilities.

Is this fair? What do you think?

For more information visit, http://online.wsj.com/article/SB10001424127887324743704578445220306876996.html.

DSEF and the Council of Better Business Bureaus (CBBB) foster honest and responsive relationships between businesses and consumers—instilling consumer confidence and advancing a trustworthy marketplace for all.

About the Better Business Bureaus
As the leader in advancing marketplace trust, Better Business Bureau is an unbiased non-profit organization that sets and upholds high standards for fair and honest business behavior. Every year, more than 87 million consumers rely on BBB Business Reviews® and BBB Wise Giving Reports® to help them find trustworthy businesses and charities across North America. Visit www.bbb.org/us for more information.

DSEF & CBBB: Get More Money Now

DSEF & CBBB: Get More Money Now

This is the name of a pamphlet published by the BBB some years ago in partnership with the FINRA Investor Education Foundation. It is still helpful today. Who couldn’t use more money, right?

The sad truth is that many of us were not well-educated about how to use money…if we were educated at all. I remember a class in high school called Consumer Economics. All I learned from it was how to properly make out a check! And maybe balance a checkbook.

But how do you save for goals? Handle medical expenses? Improve your home? Pay all your bills? Take care of your student loans? Take care of your pets’ medical expenses? If you’re like me, you’ve already thought about finding a cheaper place to live or brown bagging lunch more often.

Here are some additional tips from the FINRA/BBB publication:

  1. Lighten your load. Pay priority household expenses first, in full.
  2. Take care of bills right away. This will help you avoid fees and penalties and it will improve your credit.
  3. Get rid of high-cost debts. Don’t just pay the minimum balance—pay as much as you can and avoid extra purchases, until the debt is gone.
  4. Don’t max out your credit cards. This hurts your credit rating, and increases interest rates.
  5. Pay the monthly bill for your goal. Decide how much you can afford to spend on your goal. Then put that money aside each month, just like you would for the rent or house payment.
  6. Remember your goal before you spend. Ask yourself: once I get this thing home, will it make me happy? Do I need it or want it? Will it get me closer to my goal? Once you handle basic expenses, try to spend on things that will help you achieve your goal.

And remember, you can keep more of your money by paying attention to the real costs of services. You’ll be singing all the way to the bank if you can avoid:

  • Bounced check fees.
  • Payday loans.
  • Check cashing and wire transfer service fees.
  • Tax refund anticipation loans.

For more tips and resources, check out www.finrafoundation.org and www.bbbmoneyhnow.org.

 

DSEF and Council on Better Business Bureaus (CBBB) fosters honest and responsive relationships between businesses and consumers—instilling consumer confidence and advancing a trustworthy marketplace for all.

Free e-book “Business Owner’s Road Map to Success.” It has over 50 pages of techniques for everything a small business owner needs to master, from business planning and ethical selling to a success mindset. It’s all there and it’s free for you. To get it, just “Like” our Facebook Page here: http://on.fb.me/KsIN6P Pass it on!

About the Better Business Bureaus
As the leader in advancing marketplace trust, Better Business Bureau is an unbiased non-profit organization that sets and upholds high standards for fair and honest business behavior. Every year, more than 87 million consumers rely on BBB Business Reviews® and BBB Wise Giving Reports® to help them find trustworthy businesses and charities across North America. Visitwww.bbb.org/us for more information.

DSEF & FTC Consumer Resources: Hang Up On Credit Card Interest Reduction Offers

DSEF & FTC Consumer Resources: Hang Up On Credit Card Interest Reduction Offers

Today’s highlighted blog post from FTC:

Hang Up On Credit Card Interest Reduction Offers

You just got home from work and sit down to read the mail. There they are, like clockwork – your credit card bills. You look at the balances and then the finance charges and think, there’s got to be a way to cut the interest rates – especially since you carry a balance most months. You check your phone messages and, low and behold, there’s one from a company that claims it can negotiate better rates on your credit cards.

 

For 13 years, the DSEF has been proud to partner with the FTC and other organizations to offer a wide array of education events and resources that encourage consumers nationwide to take full advantage of their rights and make better-informed decisions.

You’ll find a wealth of resources at www.ncpw.gov that will help you protect your privacy, manage your money, learn more about credit and debt, decipher advertising messages, and steer clear of fraud and scams.

Please take a moment to share the resources on this Web site with others in your communities and companies and, together, we’ll help build a nation of better-informed and educated consumers.

Charles. L. Orr
Executive Director

Direct Selling Education Foundation

 

How to Use Credit Cards Wisely

How to Use Credit Cards Wisely

Like most things in life, there are always two sides to everything. We try to maximize the benefits and minimize the negatives. The same holds true with credit cards. They can be a valuable resource, but you have to use them wisely or they could cause trouble! Understanding the pros and cons of credit cards can help you navigate your financial decisions successfully.

Here are the Pros of credit cards:

  • Convenience – You can use credit cards almost anywhere and for almost anything.
  • Great for emergencies – If your car breaks down and you need it fixed, your credit provides you with an immediate sum of money.
  • Rewards programs – These days you have so many choices when it comes to reward programs. If you want to save money on gas, get a card that gives you a discount. If you want to travel, get a card that give you free airfare mileage. If you want to start a college fund, get a card that will put money into your child’s college fund.
  • Building your credit history – Credit cards are a quick and easy way to build up your credit score.
  • Easy way to keep track of spending – Your monthly statement can help you maintain a budget, and manage expenses.
  • Establish a business account – With a business credit card account you’re keeping your business and personal funds separate and establishing a business credit history.
  • Security – If you lose your money it’s lost forever, but the bank can replace a credit card and stop any unauthorized purchase. And if you overpay for something or receive a defective product you can contest it or get your money back through your credit card company.
  • Consolidation – If you’ve used several credit sources, you can consolidate payments into one payment.

These are the Cons that you want to minimize:

  • High interest rates – Make sure you can pay off your balance each month.
  • Fees and penalties – Choose credit cards that have lower fees and always pay on time.
  • Identity theft – Having a credit card increases the risk of identity theft. Be sure to keep an eye on your statements, and shred them before discarding them.
  • Increase debt – If you’re not disciplined, you can easily find yourself with a large debt. Don’t let your debt get out of hand.
  • Credit score risk – If you have too many cards or don’t maintain them well, your credit score can drop quickly.

Here’s how to maximize the advantages:

  • Use your credit cards in emergencies primarily.
  • If you have a business, establish a credit card in your business name to separate your business and personal finances.
  • Choose and use rewards programs wisely to maximize discounts, accumulate travel miles, start a college fund and meet other financial goals.
  • If you have a lower interest rate or 0% promotional cards, use them to pay for large purchases, but make sure you can pay off the debt before interest rates increase.
  • If you need to increase your credit standing or score, use your credit cards and pay on time. Carry some debt short term and then pay off the balance. Financial institutions are evaluating your ability to maintain your debt in calculating your credit score.
  • Review your credit card statement every month and use it to maintain your budget. If you find that you are spending too much, switch to cash only purchases.
  • Use credit cards for thoughtful purchases and never for impulse buying.
  • Put all your automatic payments on credit cards so you have a record of them, but make sure you pay them off each month.
  • If you have several higher interest payments that can be lowered by consolidating them onto a lower credit card, do so, but keep in mind that it’s only for the short term and you must pay them off before the interest rate rises or is due.

Credit cards are a modern convenience and can be beneficial if used properly. Are there other advantages that you can think of? We would love to share your tips with our community.

Opt Out of Debt, Not Credit – Guest Post by Rod Griffin, Experian

Opt Out of Debt, Not Credit – Guest Post by Rod Griffin, Experian

From the DSEF: We’re delighted today to share with you a guest post from Rod Griffin, Director of Public Education at Experian. Experian, a Direct Selling Education Foundation strategic partner, is a global leader in providing information, analytical tools and marketing services to organizations and consumers to help manage the risk and reward of commercial and financial decisions. 

Rod Griffin, Director of Public Education for Experian

Opt Out of Debt, Not Credit
Guest post by Rod Griffin

I was recently asked if a person could “opt out of credit reporting.” The answer is yes, but only if you live a truly cash-only existence. If you never use credit of any kind you will not have a credit report. Most would find that having no credit report is not as desirable as it first sounds.

Take a moment to consider how ubiquitous credit and credit reports are in your daily life, even for things that don’t involve debt. For example, cellular telephone companies typically review your credit report when you apply for service, utility companies and apartment complexes do the same before activating an account or approving a lease, and a credit card is often required to reserve a rental car or hotel room.

Without credit or a credit report, you may be required to pay a deposit or security fees, have a hold placed on your checking account to obtain services and could even have difficulty qualifying for rent or getting a job.

A better approach is to opt out of debt, not credit. You can have one without the other.

Start by paying off any existing debts. You might choose to close some of your accounts, but don’t close all of them. You only need one or two credit accounts to have a strong credit report. Make a small purchase from time to time and pay the charge in full to demonstrate the account is active and that you make good credit decisions.

You still must do all of the things you would do if you were living a cash-only lifestyle: budget carefully, don’t spend more than you earn and pay yourself first by setting aside savings regularly.

But, by opting out of debt, not credit, you will keep your credit report, which is an important and powerful financial tool.

Rod Griffin is Director of Public Education for Experian. He is responsible for Experian’s national consumer education program and supports the company’s community involvement and corporate responsibility efforts. He supports various national consumer education initiatives including the LifeSmarts Consumer Knowledge Competition, for which he serves on the Corporate Advisory Board, and the Jumpstart Coalition for Financial Literacy. In addition, he produces a variety of consumer education materials and for more than a decade has written Ask Experian, an online consumer credit advice column. Rod holds a B.S. in journalism from the University of Kansas, has a Fair Credit Reporting Act certification from the Consumer Data Industry Association and is a Center for Financial Certifications Certified Financial Counselor.

Keeping Your Personal and Business Finances Separate

Keeping Your Personal and Business Finances Separate

Are you keeping your personal and business expenditures separate? This is a daily task that can get muddy for small businesses quickly, and can make tax time a real headache.

Here’s a checklist to keep this task simple and clear. Follow these simple steps and you won’t get things confused when it’s time for filing your taxes.

  • Maintain separate checking accounts. Having all business payments and expenses on one bank statement will give you a clear idea of your business finances, and when it comes time to do your taxes you can use your bank statement to clearly explain your business accounting.
  • Use a business credit card. A business credit card will help your business build credit history as your business grows. Keep all your business expenses on one statement and avoid using your personal credit card for business.
  • Maintain two separate places for personal and business receipts. If you have a very small business it may be as simple as two shoe boxes. Use one box for business expenditures and another for personal. As your business grows you should use some type of accounting software.
  • Keep a log of your business expenses. For example, if you use your personal car for business regularly write your mileage down, or even better, keep track of it on your computer/smart phone.
  • Your home office is for business, period. If you have a home office for your business and want to claim it on your taxes, you need to keep it for business use only and not anything else like a guest room.
  • Understand what a business expense is and what it is not. You cannot add personal activities into a business meeting and call it a business expense. It must be for business completely or it’s not a business expense.

Following this simple checklist will help you during tax time because your personal and business finances are separate. Now you can focus on growing your business!

It’s Time For Your Annual Credit Check-Up!

It’s Time For Your Annual Credit Check-Up!

It’s time for your annual credit check up! It’s not only a smart way to maintain your financial health, but to also avoid financial and identity fraud. A once a year credit checkup is like getting an annual physical…it makes great sense and makes you feel good knowing you’re healthy.

Here are a few steps to review your credit and financial health:

Step 1 – Obtain your free once a year credit reports from all three credit agencies.

Step 2 – Review your credit reports and check if there are any inaccuracies or incomplete credit history.

Step 3 – If you do find a discrepancy, report it to the agency. They are required to investigate the inaccuracy within 30 days.

Step 4 – If you do have a legitimate negative mark, contact the creditor directly to negotiate and arrange for a payment plan.

Step 5 – Your credit report’s health is reflected in your FICO score which is a measure of your capacity to repay loans. This will affect the interest rates for your loans.

Step 6 – Understand your debt ratio. Creditors prefer a debt ratio under 36%. For example, if you earn $3000 monthly they want to see debt payments less than $1080 a month.

Step 7 – Consider keeping only 2 credit cards, maintaining less than 30% of the maximum limit at any time and always pay on time.

Step 8 – Develop a budget and financial plan. Review it annually to fit your financial situation.

Step 9 – Seek help from a certified credit counselor for sound financial advice if you get in trouble.

For more financial tips check out this helpful free government site http://www.ftc.gov/

This is all part of a healthy life style. Eating right, exercising, thinking positively and maintaining your credit leads to a happier you!

Do you check your credit annually? What tips would you offer? Would love to read your thoughts in the comments below!

Credit Cards: Understanding Your Rights

Credit Cards: Understanding Your Rights

Credit cards. They can be a real convenience. Yet they can also help unwary consumers drive up debt that is hard to escape. If you are a credit card user, it’s important to use your credit card wisely, and also understand your rights, in order to protect your credit rating and live the lifestyle you choose.

Using Credit Cards Wisely

When choosing a credit card, it’s important to check the interest rate that will be charged. When you do not pay the full amount of your bill within the billing cycle (around 30 days), you are charged a percentage of that amount on top of the amount owed. This can really add up each month, so be sure that you understand how much more you will pay for the same purchase.

For example, if you are purchasing a $1000 item with your credit card, and only pay $10 towards that amount each month, and your card charges 10% interest each month, you will pay $1159 extra in interest, and it will take you 18 years to pay off that item. Is it really worth it? You might be better off just putting money aside each month until you have enough to purchase the item outright.

You can check out your own purchases using a credit card calculator online, such as this one.

Understanding Your Rights

Credit card companies also have obligations when it comes to lending through credit cards. Some things you should know:

  • Your credit card company must inform you, in writing, 45 days before raising your interest rate. They must also tell you how to cancel your card as part of that notification.
  • You must receive your statement at least 21 days before the payment is due.
  • Interest rates cannot be increased during the first 12 months that you have a credit card.
  • Promotional rates must last 6 months.
  • Your bank can increase your interest rate if your payment is more than 30 days late.

These and other rights are included in this PowerPoint that you can download titled “Credit Card Act of 2009 and You.

Know Your Credit Score

Your ability to get a credit card with a low interest rate is determined by your credit score.  It’s important to review your credit report regularly, to ensure that everything on it is accurate. This will help you make better decisions.

How do you protect your credit score? How do you teach your kids to use credit wisely? Would love to read your thoughts in the comments below!