Archive for the ‘credit cards’ Category

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Success: My Search For 5% Cash Back Gas Card!

Wednesday, April 20th, 2011

{The is the fourth article in a  series of articles on credit card tips.  These posts cover  many common credit card topics  with action steps you can put to work immediately.}

  1. 5 Steps to Lower Your Cards Interest Rate
  2. Taking Charge of Your Credit Card Debt
  3. Searching for a Rewards Card

Reward Credit Cards

Gas at 4 dollars-now they’re talkin 5 bucks for you Californians….  That’s a huge hit every time you fill up at the gas station.  Almost 80 bucks to fill up my old truck.  Has it hit you yet? I’m sure payin at the pump has taken a chunk out of your paycheck.

Now that the days are getting longer I’ll start biking to work a coupla’ days a week.

Good for my figure, I figure, and good for my billfold!

But for now:

As I have previously written here, I am searching for a gas rewards credit card to  numb the gas pump pain a little.

Think about it. A 5% cash back on gas card makes $4.00 a gallon turn into $3.80.  You may think  20 cents and say, who cares.  I see  $4.00 less every time I  fill-up.

I care-A Lot!  Multiply that times two for my wife’s gas, and it becomes real money in a year.

That’s better than driving across town to save 3 cents a gallon…..

Back to my card search

My rewards card criteria:

  • No annual fee.
  • Reasonable interest rate-not that I care cause I don’t carry a balance-but don’t like gouging….
  • The highest possible percentage back on my gas purchases-the holy grail is 5%.
  • Master Card or Visa-as I frequent gas stations that don’t accept my AMEX Delta Rewards Card.

I have stressed here over and over, don’t use rewards cards or any credit cards:

  • If you can’t pay it off, in full, EVERY MONTH!
  • If you have a spending control issue. Yes you know who you are!
  • If you have a low credit rating and haven’t dealt with the issues involved.

I followed the suggestions of Flexo at Consumerism Commentary, put on my pith helmet, grabbed my walking stick, and jumped into the credit card jungle.  You know the jungle- filled with lions and tigers and bears-oh my!

Success! I found a card that met my criteria: the Pentagon Federal Credit Union Visa gas rewards card.

Bummer, it looks like you have to be an active duty member of the Armed Forces of the USA to qualify.

Success again: Tucked away in the small print…  It seems membership in other organizations also qualified.  One of those is the National Military Family Organization. And they  accept civilian members for $20.oo /year donation.  YESSSS!

A reasonable price for getting my 5% gas card, IMHO…

I jumped through the hoops of joining the NMFO-which was just a couple of keystrokes. Then applied online for my Pen Fed Visa Gas Card.

I’m proud to announce they accepted my application and will be sending me a card ASAP.

I have a video here to show you the steps in my journey.  If you need a similar card check it out-it might save you a little computer time. That’s what I’m here for-to lighten your load, ease your burden, walk a mile in your shoes..(yeah, I know you’re turning green and about to vomit, sorry!)

Let me know if you apply for a similar card or if you have questions about my search.

Contest:

I am having a contest at The Millionaire Nurse Facebook page.  I will be giving two autographed copies of my book, The Millionaire Nurse to those who refer a friend to “Like” my fan page.  Here are the details:

How do you win? Simply invite your friends to become a fan of www.facebook.com/TheMillionaireNurse When they do, they need to write “New Fan – (Your name here)” Then YOU and the NEW fan will be entered to win! Contest ends on April 30th…we can’t wait to see who wins!!!

Check out the details on my Facebook page, and while you are at it-friend up.  Love to add you to my list.

Carnivals and Link Love Lately!

Carnival of Banking And Money Management at Credit Eh

Festival of Frugality at Wealth Pilgrim

Totally Money Carnival at the College Investor

Carnival of Wealth at Dividend Investor

Thanks for reading.  Rember-to get on my newsletter list sign up-upper right and get a coupla freebies…Ebook that will show you the way to save money, NOW.  And a mini-course on personal finance delivered weekly in your email over the next 10 weeks.  A GREAT way to get started controlling your money!

Twitter-@DrDeanBurke

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Posted in credit cards | 2 Comments »

Warning: Four Tips Before Getting Your New Rewards Card!

Monday, April 11th, 2011

{The is the third article in a  series of articles on credit card tips.  These posts cover  many common credit card topics  with action steps you can put to work immediately.}

Credit cards-I know they are the devils spawn. The scum of the earth. The ultimate evil…
But for me, alas, a necessary evil.

I have been listening to Dave Ramsey for 5-6 years now when I am on the road. {He is  more entertaining than many talk radio heads yelling about Obama, or Ocho Cinco.  And you can only listen to 70′s music for so long…hmmm, I’ll have to ask my CPA if this makes XM radio deductible…}

I have also read his books and I agree with a lot of what he preaches-and if you’ve heard him, you know he preaches!  His credit card advice, however, is like a reformed alcoholic preaching the return of prohibition.

I will readily admit I have two personal credit cards:

  • An American Express Delta rewards card-I travel out of the country and in Georgia the saying goes “if you are flying to hell, you have to change planes in Atlanta…I use the points for free flights.
  • A GM Master Card-I keep this card ’cause my favorite low cost gas station won’t take AMEX.  I need to switch to a different card since I no longer buy new GM’s.

Since I need a new rewards card and I know many of you need to switch or get a new card, I’ll let you guys join my journey.

I asked an expert for advice.  Something I recommend all of you do when you have to make a money decision.

Flexo, the writer behind Consumerism Commentary, has been writing about money for years.  His top ranked and long running blog  regularly reviews new credit cards and offers.  He agreed to answer my questions.

Flexo-a self portrait!

Dr Dean: Where do you get info on new credit cards and how do you inform your readers?

Flexo: I find out about new credit card rewards programs and changes in advance and announce them on Consumerism Commentary as soon as possible.

By visiting the Credit Card Center at my blog and subscribing to our RSS feed or newsletter, you will be aware of the best credit card cash-back rewards.

Maximizing rewards is more difficult than it used to be thanks to the card issuers making frequent changes. Reward-seekers need to be more vigilant, and Consumerism Commentary helps with frequent updates.

Dr. Dean:  Can I get by with one rewards card?

Flexo: Not too long ago, all you needed was one cash back card if you wanted to maximize your rewards.

Today, issuers reserve the best rates for certain categories of spending. To get the top cash back rate on all or almost of your spending now, you’ll need three cards.

People with good credit and good spending habits can own three cards without affecting their credit score for the long-term, though signing up for three cards in a row might temporarily ding them.

The nature of credit card spending is that, in general, people spend more with plastic than they do with cash. Only those who are diligent enough to acknowledge this and fight against this tendency should bother with rewards programs. (in other words, remember the alcoholic quote above-if you have spending control issues-don’t get any credit cards…)

Dr. Dean:  What is a good cash back reward percentage to shoot for?

Flexo: 5% is the Holy Grail of rewards programs. You can earn even more by using the card issuers’ marketplaces for shopping or rebate sites like Ebates in conjunction with the cash back card.

Your combination of rewards credit cards should get you as close to 5% in all categories as possible, and then you have to remember when to use which card. The easy days of getting 5% cash back on all purchases on one card are over for now.

Dr. Dean:  When you get a rewards card, should you care what interest rate the card charges on the balance?

Flexo: The greater your risk of missing a monthly credit card payment, the more you need to worry about interest rates.

Anyone can have an emergency. If your emergency requires you to spend using your credit card and not pay the bill in full each month, your interest charge will eliminate your cash back bonus advantage and then some…..

If you’re well-prepared with a significant emergency fund or other savings, a credit card interest rate can be one of your least concerns.

If you’re not in great financial shape, work on that before chasing credit card rewards.

Thanks, Flexo.  You da man.

I’m a bullet point kinda guy, so I summarized Flexo’s points to help me in my search:

  • I will use his website to help in my search. The least I can do for his help today…
  • You may need more than one cash back card to take full advantage of cash back on all purchases.   I mainly want cash back on gas and groceries-and only want one more card so I will remember to focus on cash back for gas cards.
  • Look for 5% cash back-but they are getting harder to find. 5% I got it…
  • Interest rates don’t matter if you always pay your balances on time and in full!  No emergency fund, no rewards card!! I got it, I got it!  sheesh…

So I’m off to see the Wizard about my new cash back rewards card.  When I get to the end of the Yellow Brick Road-I’ll report back and let you know what I find!  Witches and flying monkeys, oh my!

(Gosh Dorothy, that guy behind the curtain looks just like a character in the Simpsons…)

This weeks carnivals:

Yo, Yo, Yo was how Budgets Are Sexy let me know I had made the Best Of Money Carnival this week. What a with it dude, huh man!  I’m down with ya dawg!

Carnival of Wealth at  Personal Dividends

Totally Money Blog Carnival at Thousandaire. Thanks Kevin…

Festival of Frugality at Free Money Finance

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Posted in credit cards | 4 Comments »

How To Take Charge Of Your Credit Card Debt!

Tuesday, March 29th, 2011

Paying off your credit card

{The second in a weekly series of articles on credit card tips.  These posts cover  many common credit card topics  with action steps you can put to work immediately.}

Remember, you vowed you were going to get out of credit card debt.  You’ve had it up to you know where with making decent money, but having nothing to show for it.

The first few weeks, you went happily along with the plan.  Then reality set in:  You realize your  measly payment will get your credit card debt paid off about the time you move from assisted living to the nursing home…

You decide to ask the right questions in the right way…

“Maybe I need to use a little critical thinking here.  Do a little research, and make better choices?  What is the difference  between success and failure?”

“Yes I know it was my fault, but now I want my Citibank Card and Visa accounts  to  be as empty Muammar Gaddafi’s conscience.  They are history, baby!

Critical Factors in Payoff Success

You have probably figured out (without my brilliant analysis) your payment amount and your interest rate are the critical factors in paying off your cards.

Before starting this journey on your own, however, you need to prevent crisis management. Being in crisis mode makes smart decisions impossible.  Like throwing a drowning man a beer.  He may appreciate the gesture, but he remains a drowning man!

Crisis management

That’s what got you in credit card debt in the first place.  Oops, can’t pay for my books, put it on my card.  Oops, need new clothes for work-swipe away…

Living with credit card debt hanging over your head is not living, it may be an adventure—if you think constant stress and strain are adventurous.

Getting Started On Card Payoff

The American Way?

I know you want to jump in and start killing Citi-but even the Hulk will think before he leaps!

Let’s review  your pre-credit card payoff steps.

  • Have a small emergency or mad money fund-for the next crisis. Don’t take one step forward and two back cause you had no cash….
  • Cut up, freeze, or otherwise keep the cards in your wallet from adding to your credit card debt
  • Decide which card to pay off first.  Smallest balance seems to be recommended by many, but highest rate card has math on its side.  Use your judgment, but read both sides of the argument and pick one.  Don’t wait for hell to freeze over while you choose.

Jump Start the Process

Now that you have the preliminaries down, it’s easy to become frustrated by the lack of progress.  What can you do?

Only one thing to do: Earn more money.

For you nurses, I wrote a post on earning extra money as a nurse.

For you non-nurses-read the post anyway cause it may give you a few ideas for side jobs or check out this other post for 10 tips on earning extra moolah.

Action Steps:

  • Get on a spending plan-use Mint, Quicken,  or other systems.
  • Throw every extra dollar at your credit cards- bonuses, raises, e-bay, or  yard sale money.
  • If your card has a high interest rate, try to find a  lower rate card. It will cost you a fee to switch, but it’s worth it if you can pay off the new card quickly.  If you don’t know what a debt snowball, avalanche,  DOLP, or bucket of hot water are then do your homework.
  • When you pay one off, reward yourself with an appropriate level reward.  That might be a night out at McD’s , Olive Garden, or your  favorite gourmet restaurant-if you paid off the BIG ONE!
  • Then get started on the next one.

Other things to keep in mind:

  • If you transfer a balance to a new card, it may ding your credit temporarily.
  • If you use all the available credit on your card by consolidating  two balances-it may hurt your credit.
  • If you get a lower rate card using the techniques I described last week for getting your credit card rate lowered, being late for a payment will jack the interest rate back up.
  • If you are not making progress or can’t even make minimum payments-you may need to either negotiate a settlement or consider debt consolidation. These are topics for another post.

Success with Credit Card Debt Reduction

Getting out of credit card debt  has two parts that are amazingly difficult:

1.       Getting started: It is so much easier to just not rock the boat.  You can’t admit to your family or yourself  you don’t know how to manage your money.  You feel  like such a failure and you don’t deserve financial success anyway….

2.       Sticking with it: Diets, exercise resolutions, and making headway on debts are all in the same category.  They require lifestyle surgery.  You can’t just say, “Tomorrow will be different.”

To make tomorrow  different than today, you have to start.  And if you don’t have your stuff together before starting, you will be doomed to failure.

Remember, there will be setbacks along the way-just keep after it.  Learn to visualize your life after debt.  Use that vision to get you through the black days.  Get a buddy or friend that understands your situation and call them when you are frustrated.

Questions/comments: Tell us your story.  How did you get out of credit card debt?  What worked for you?  What are your frustrations?

(Photo Credit: Martinez, Carlos c.c.)

Carnivals featuring my articles this week:

Editor’s pick at the Carnival of Personal Finance at Money Beagle! Yes! (and thanks!)

The Yakezie Carnival is at Control Your Cash, with great commentary!

Totally Money Carnival is at Debt Free Divas

Remember the RSS Feed is top right.  You can sign up to receive our posts without worrying about missing one.  And feel free to like us on Facebook.  I try to make it easy for you.  And follow us @DrDeanBurke

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Posted in credit cards, Personal Finance 101 | 5 Comments »

Warning: Credit Card Interest Rate Alert!

Monday, March 21st, 2011

5 Steps To Lower Interest Rates

{I am starting a regular article on credit card tips.  These posts cover many common credit card problems with action steps you can put to work immediately.  Let me know what you think.}

This weeks tip is fairly simple, but you have to have big ovaries-(sorry guys, but I’m a gynecologist…).

Interest Rate Is What?

You’re paying bills and notice the interest rate on one of your credit cards.  You coulda sworn it was 15%, and now it’s 25?  How the heck did that happen?  (one way is to be late for a payment).

But if you haven’t been late then maybe you need to become, wait for it…… “The Negotiator!”  (You heard the blast of music didn’t you?)

Credit card companies have responded to changes in regulations that have hurt their fees.  Their response, of course, is to try to get their profits in another way. By raising your rate…

Your job is to counter attack, jab,  respond with force….(you get the idea!)

The Negotiator is a super-hero who believes the first price is just a starting point.  That all things  purchased can be had for less if you just ask.  That those who accept prices and rates as they are are  just wimps.

The Negotiator???

You review your other cards and their rates have gone up too.  What are you to do?

Become: The Negotiator

To put on your “The Negotiator” cape requires a few preliminary steps.

You need three things to get started:

  1. Your last credit card statements-and any pin numbers or passwords for these accounts.
  2. Pen and paper, or spreadsheet for you tech folks
  3. Phone

Simple huh!

Set aside a time, take a dose of courage, and become: The Negotiator!

Step 1: On your paper, make columns (if you are using a spreadsheet, you know what to do…)Your column headings should be: your credit card company, the name on the card, card company phone number, your account number,  your interest rate, and a blank column for the advertised rate for the card.

Step 2: Use your computer and compare your interest rates to the rates advertised by your card company-it needs to be the exact card-some companies cards sound alike-make sure it is an exact match.  Try your card’s company site, credit card.com, bankrate,  or other credit card comparing site.

Step 3: (this is where the ovaries come in) Pick up the phone, call the company for each card, let the customer service rep know you want to lower your rate.  Make sure you let them know what the rate they are advertising. And ask for the best possible rate for you, a Good Customer!

Step 4: When the rep says no-which they will- get the reps name, ID number, and ask to speak to a supervisor-be insistent, but not ugly.  Let them know you are a long time customer (if it’s true), that you never miss payments (if this isn’t true, you probably are toast anyway!)

Step 5: Say thank you when they lower your rate.  If they refuse, then wait a week and try again.  If you strike out again, you might need to check your surroundings for kryptonite, but it’s probably time to  find a new card.

5 Steps To Lower Rates

5 Easy steps to world domination huh-well maybe not-but at least an improvement in your world.

If you are struggling to pay off credit cards your interest rate can be the difference between months and years to the pay-off.  Don’t let the card company bully you.

Put on your “The Negotiator” super-hero suit and get after it!

If you try it, let me know if you are successful.  Let us know if you aren’t.  We can all learn from each others.

Recent Carnivals I have been included:

Young and Thrifty is hosting the Yakezie Carnival.

Carnival of Wealth

Totally Money Carnival at Money Mamba

Festival of Frugality is at How To Retire Rich

(photo credit: mikequozl c.c.)

Remember the RSS Feed is top right.  You can sign up to receive our posts without worrying about missing one.  And feel free to like us on Facebook.  I try to make it easy for you.  And follow us @DrDeanBurke

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Posted in credit cards | 5 Comments »

Kim Kardashian Kard Kauses Kontempt!

Friday, November 12th, 2010

Who is Kim Kardashian?

Parents who care, run for the hills, the world is coming to an end-righteous people all over the country are aghast!

Kim Kardashian has released a pre-paid debit card.  It will ruin our children, as they use it to buy the latest iTunes Kardashian show, for their iPad.

I will have to admit, when a friend sent me this link, I had to google Kim Kardashian.

I had “heard” the name, and seen references in the media.  But I had no idea of why she was famous.

Celebrity Kulture

KK, like most of the other celebrities/actors/drunks, and addicts that make up our current pop culture seems to be ubiquitous-once my Google search returned.

But I refuse to support their habits by watching their shows, or buying the mag/rags that worship them-like conjoined twins, sharing a heart.  One couldn’t live without the other.

I live a reality show, why would I watch one….

But I learned a long time ago, you can’t fight or alter pop culture.

No it’s not fair, that a 90lb blond, drunk, drug addict makes millions just by managing to dress, (without panties) and go to a club.

Klub Kulture (bysjurvetson)

And a 130lb blond nurse is doing CPR on a 1 1/2 lb preemie, trying desperately to save the life of a  precious newborn, and gets paid less than the pop queen makes in a 15 sec commercial.

If you dwell on these  issues,  you will  want to crawl into bed, pull over the covers, and cry!

I refuse to give in to those tendencies…

So I have my quiet protest-and refuse to support the celebrity driven culture-It does make finding a movie difficult.  Finding quality actors that haven’t sipped the kool-aid of their own exploded ego is a challenge-but I try.

My other 5 jobs keep me busy anyway!

Whew, now I feel better-back to the subject at hand:

The KimKardashianKARD-is it evil?

KKKARD Pro’s:

  • It is a pre-paid debit card-so it has a self-imposed spending limit
  • It is without overdraft fees
  • You can get it with no credit check
  • You can load the card with a call-and get text/sms messages or alerts-maybe good for parents who want to know if spending limits are breached.
  • Kim’s Kleavage

KKKARD Con’s

  • Supports a celebrity culture
  • May encourage spending-showing off Kim’s Kleavage to your fellow hormonally challenged peeps-while you swipe  your card!
  • But most important-the damn thing is 10 bucks a month!

If you buy this card for your kid, and you limit their spending to 100 bucks a month-then you are paying 10% a month in fees-outrageous considering most checking accounts come with a free debit card.

Now that is something worth celebrating!  Free checking ROCKS!

Reader Questions:

Have your purchased a pre-paid or debit kard for you teens?

Does it have a picture of a partially klad celebrity on it?

Do you think a kard kulture for your kids is a good thing?

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Posted in credit cards | 11 Comments »

Five Tips To Establish Credit!

Tuesday, October 5th, 2010

Post by Julie, RN CCRN Staff Writer

No Credit History?

Think about it.  You are just out of school, excited about your new job in a new city.  But first you need a place to live.  You find a perfect apartment, close to work.  You look forward to getting it fixed up, and get rid of all your college hand-me-down furniture.

New Grad! photo by CarbonNYC

The apartment manager calls you: “Sorry, we can’t rent to you!” “Why not?” you cry-I love that place and I can afford it!”  “Well, maybe so, but you don’t have a credit score when we pulled your sheet, corporate won’t let us rent to anyone without a decent score.”  Well no score isn’t a bad score, but that may not matter….

How does someone with no credit history establish credit in this economy-where banks and credit card companies are not willing to extend credit?

Young adults are at a definite disadvantage-why? No work history.  While credit cards are the cause of demise for many households, when used correctly are vital to a healthy credit report. And your ability to finance automobiles, obtain a home mortgage, rent an apartment, and function in a credit-oriented society require credit.

Most young people are faced with this  dilemma. You may be going away to school and leaving  Mom and Dad’s wallet, or just graduating from nursing school and entering the world of financial independence.

You need the security of having money available for those unexpected events that are sure to happen.  But how do you establish credit when you don’t have a work history?   Banks and credit card companies aren’t giving away credit like they were before the economy crashed and burned.

Five Tips on Establishing Credit:

1.     Obtain a small loan from a local bank. Items such as appliances, automobiles (used!), home repair, etc can be financed locally.. ..   Your local banks  frequently will extend small loans when larger banks won’t.

Why?

It’s the advantage of doing business with someone you know!   But you must make sure that your loan is reported to the 3 credit reporting agencies Equifax, Experian, and TransUnion.

It’s been my experience that many times small community banks do not report their loans to the credit agencies, no report, no credit score! So, request that your loan be reported.  When our daughter was attempting to establish credit after graduating from college, we advised her to take out a loan from our local community bank to purchase appliances.  We were unaware that this bank didn’t report their loans to the credit agencies.  So the loan from this bank did nothing for her in attempting to establish credit.

2.   ALWAYS pay your note on time!! I can not emphasize this enough! Never borrow more than you can afford to pay back each month and make sure you pay ON TIME! This is the most crucial aspect in establishing good credit.  Late payments remain on your credit report for years!

3.   Try to obtain a credit card with a low available credit limit, say $500.  That doesn’t mean that you should charge $500 on that card! Gas cards are an excellent place to start with low credit limits.  Some credit card companies are willing to open accounts with low limits initially and will increase your available credit depending on your payment history.  Establish a history of always paying on time and your available credit will increase.  Don’t charge more than you can pay off every month!  Do I need to repeat that??  Charge a tank of gas and then pay your balance in full when you receive your bill.  Don’t get into the habit of paying only the minimum balance!

4.   Make sure you have a good work history! Your length of years at your place of employment speaks volumes! Banks and credit card companies feel that if you have a stable work history then you tend to be more responsible.

5.   Consider a pre-paid credit card-This means a card that has your cash on deposit, that your charges are withdrawn.

Establishing Credit, Is Not Running up Debt!

Establishing good credit isn’t the same as running up debt.  It’s about being responsible in obtaining only what you can afford to pay back each month.  But make sure you use your card on occasion no matter how small the purchase.

Inactive credit cards have a negative effect on your credit report.  If it’s a bank loan, make sure you make your payments ON TIME every month!  If you go to a bank or credit card company trying to convince them why you deserve a mortgage, car loan, or high credit line  without having established a good credit history, you are going to be given the same look that a doc gives  a GN when you make patient treatment suggestions! (sorry Dr Dean….)

If you follow these simple guidelines, you can quickly establish a positive credit history that will benefit you greatly down the road.  The better your credit, the lower interest you pay, and that, my friends makes good cents….

Julie RN CCRN

Note from Dr Dean:

Julie is a new staff writer for The Millionaire Nurse Blog.  Check out her bio here!

She will post frequently here on money issues and nursing!  Please make her feel welcome!

Reader Questions:

Did you have any trouble getting credit when you first finished school?  Did you abuse the privilege?

What tips do you have for young people wanting to start out on a good financial footing?

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Posted in credit cards, Credit Reports, Personal Finance 101 | 17 Comments »

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