Good Morning Everyone.  Today we are following up on yesterday’s post about How Students Can Live on a Budget during the Holidays.  We should try to stay on a budget while shopping during the holidays; and to avoid overspending we should try to pay with cash instead of our credit cards.  Today we are helping everyone try to avoid the temptation of using their credit cards while shopping during the holiday season and all year round.

I know that we may want to buy nice gifts for our family, and we may also be tempted to buy gifts that we can’t afford.  But at the end of the day there is no use in paying for our purchases with our credit card if we can’t afford to pay off the balance at the end of next month.

Here are 5 Tips on How to Avoid Temptation When Using our Credit Cards:

1. Cash is Easy to Budget. If we only have $40 in our wallet then we can only spend $40.  There is no chance of us overspending if we always live on a cash budget.  We can keep money in our bank accounts and earn interest on our money, instead of paying interest on our credit card balance.

2. Think About Saving Money.  It is no secret that not using our credit card can save us money.  We may be tempted to spend money just because we have an available credit card limit. When we spend money on our credit cards we have to repay the money that we spent and we will also be charge interest on our credit card balance.

3. Cash Advances Can Be a Killer. Interest is charged on our cash advances from the moment we withdraw the money, there is no interest free grace period on cash advances.  When we make payments to our credit card the money is used to pay off the oldest transactions first, in the meantime we are still being charged interest on our recent cash advances.

4. Carrying a Balance Can Hurt Our Credit Score.  We should use our credit card to help us establish a good credit score.  When we use our credit card and pay off the balance each month we establish a good credit score.  However, if we continue to carry a balance on our credit card each month we can actually be hurting our credit score.  When we apply for a car loan or a mortgage the bank is going to look at our credit payment history, our credit score, as well as our current credit card balances.  If we owe too much money on our credit cards then our mortgage application may not be approved.

5. Cash is Hassle Free.  If we pay for everything with cash there is no need to worry about identity theft or about fraudulent charges. When we pay with cash there is no chance of being charged extra, overspending, or worrying about keeping track of our budget.  If we withdraw the maximum amount of cash that we want to spend from the ATM before we go shopping then we can never overspend.  Having unlimited access to money via our credit card causes the temptation to spend, but we are trying to avoid it.

Photo by Bulinna

Good Morning Green Panda Friends. For today’s post in our Credit Card Management series I wanted to review the famous American Express Black Credit Card.  However, I couldn’t find any information on the American Express website about this infamous card, which is better known for its famous card carriers and limitless spending ability. 

Since I couldn’t find any information about the American Express Black Card, I decided to discuss the myths that I have heard about this mysterious Credit Card from television shows, music videos, and other general myths that I have heard while working in the financial services industry.  As there is no way for me to confirm the information I have heard, read, and seen, the information will remain as myths instead of facts.

What have you heard about the American Express Black Card?

Myth # 1 – Kim Zolciak, the reality star of The Real Housewives of Atlanta, said that cardholders are required to spend a minimum of $100,000 per year on the American Express Black Card.

Myth # 2 – After a Google search I read on Love to Know Credit Cards that the American Express Black Card is also known as the American Express Centurion Credit Card.

Myth # 3 – Wikipedia says that the American Express Black card was created in 1999 and the benefits to cardholders depend on the country of origin.

Myth # 4 – A general bank myth is that cardholders are offered the American Express Black Card by invitation only.

Myth # 5 – The rapper Fabolous refers to the American Express Black Card as the “throw it in the bag” card which implies it doesn’t have a spending limit.

Myth # 6 – Another general bank myth is that the American Express Black card offers cardholders a private concierge service to run errands and make purchases for them, as long as they are paying with their American Express card.

As I was hopelessly browsing through the American Express Website and searching for information on the American Express Black Card I found several interesting facts about American Express and their Credit Cards. 

What Do You Know About American Express?

Fact # 1 – The American Express website is very user friendly.  American Express is socially active on YouTube, Face Book, and Twitter. They also post links to their latest advertisements.  There is an American Express application for the iPhone called the Social Currency app.

Fact # 2 – American Express is the world’s largest card issuer by purchase volume.  There are 87.9 million cards currently in force, and they have $620 billion in annual purchase volume.

Fact # 3 – American Express cardholders spend four times more than MasterCard users and three and a half times more than Visa cardholders.

Fact # 4 – American Express offers PASS from American Express which is a Prepaid Credit Card.

Fact # 5 – American Express has several different partners with whom they offer rewards programs. American Express partners include Jet Blue Airlines, Delta Airlines, Hilton Hotels, and The Starwood Hotel Family.

Fact # 6 – American Express does not offer Student Credit Cards for College Students. However, they do recommend the Blue from American Express Card or the Zync from American Express Card if you are a student.

Photo by Clemson

Today in our Credit Card Management Series we are going to discuss a very important aspect of any credit card.  We have already discussed Prepaid Credit Cards, Solutions to Credit Card Debt, as well as Good and Bad Reasons To Have Credit Cards.  The most important aspect when choosing a good credit card is the interest rate.  It is important that we know how interest rates are charged on our credit cards, it is also important that we fully understand how our interest rates are calculated.

What is an Interest Rate?

An interest rate is defined as the rate charged by credit lenders to credit borrowers for use of the credit card.  The interest rate on a credit card is an Annual Percentage Rate (APR) which can be any amount from 0% up to 24%.  Interest rates depend on current promotions as well our personal credit rating; interest rates on credit cards are non-negotiable.  Some credit card companies and financial institutions may offer a low rate credit card for an annual fee.

Interest rates are never fixed and can change at any time.  Some credit card companies and financial institutions automatically increase the interest rate on our credit card if we are late making payments, or if we do not make our monthly payments.

How is Credit Card Interest Calculated?

Interest rates are expressed in an annual percentage, but it is charged daily.  Our monthly interest rate is charged on our average daily balance throughout the month.  If our annual interest rate is 19.99% then our daily interest rate would be 0.054%. 

Credit Cards usually offer 0% interest during our purchase grace period.  This means that from the date of our purchase we could have between 17 to 23 days of 0% interest to pay off our credit card balance before we start to be charged interest.  This interest free period is better known as the grace period. 

If we make a purchase on March 10, and our interest free period is 21 days, we have until March 31 to pay off our purchase in full before we start being charged interest on a daily basis. 

Interest is charged differently depending on how we use our credit card.  The 0% interest free grace period usually only applies to purchases.  If we use our credit card for cash advances or balance transfers we may start to be charged interest as of the first day.

Can I have 0% Interest on My Credit Card?

The answer is Yes, there are several ways that we can use our credit card interest free.  If we pay our credit card balance in full each month before the payment due date we will not be charged any interest.  The time between our statement date and the payment due date is the interest free grace period.  If we make only the minimum monthly payment we will be charged interest on any remaining balance that is not paid off in full by the payment due date.

Several Credit Card Companies and Financial Institutions offer introductory rates of 0% interest for a limited period of time. Citi Bank is currently offering a 0% interest rate on all purchases for the first 12 months on the Citi Thank You Preferred Card.  TD Bank  is currently offering an introductory rate of 0% interest on all balance transfers for the first 6 months on the TD Payment Plus Visa Card.

It is a good idea to check the current interest rates with your financial institution before you decide to apply for a credit card. No one was a big surprise in the form of a big interest rate.

Good Morning Everyone.  It’s time for another Credit Card Review in our Credit Card Management Series.  Today we are reviewing the Citi Thank You Preferred Card from Citi Bank.  We have already reviewed the TD Bank Payment Plus VISA Card.

The Citi Thank You Preferred Card is a good credit card that offers a great rewards program.  This credit card offers everything that a consumer could ever want including bonus points, anniversary points, spending points, and points for almost everything else.

The Citi Bank Thank You Rewards Program

We can earn 6000 Thank You Rewards Program points if we spend $300 in the first 3 months; this is equal to a $50 value.  We earn 2 Thank You points for every $1 spent in the first 12 months; we will earn 1 point for every $1 spent afterwards.

The Cit Bank Thank You Rewards Program offers anniversary Thank You points.  There is also no limit on to how many Thank You points we can earn and redeem since our points never expire.  We can also earn Thank You Rewards points when we sign up for online banking and a paperless account statement.

We can redeem our Thank You Rewards points for everything from gift cards to travel accommodations.  The one quality that makes this rewards program unique is that rewards start at only 100 points.

The Thank You Bonus Center allows us to earn additional Thank You Rewards points when shopping at over 400 retail merchants.

We have to love a rewards program that keeps on giving. 

A Good Rewards Program from a Good Bank

Citi Bank branches can be located through the United States as well as around the world. Citi Group is a major financial institution that offers personal banking, business banking, commercial banking, as well as foreign exchange services, investment services, and insurance services.

“Spend Smart. Save Smart. Plan Smart.” with Citi Group.  They are an interactive financial institution with a Twitter Account, a You Tube channel, and a Blog.  Citi Group is proud to be a green focused company who was named “The Most Innovative Bank in Climate Change and Sustainability.”  Citi Group is also a proud sponsor of the 2012 US Olympic and Paralympic Teams.

Today in our Credit Card Management series we are going to discuss Pre Approved Credit Cards.  Pre Approved Credit Cards are also sometimes known as Prepaid Credit Cards.  Prepaid Credit Cards are offered by most financial institutions, credit unions, and major credit card companies such as VISA and MasterCard.

Pre Approved Credit Cards offer the convenience of paying with a credit card without having to do a credit check or open a bank account. Pre Approved Credit Cards are accepted everywhere that MasterCard and VISA are accepted.  It is also becoming a bigger trend for travellers to use Prepaid Credit Cards while abroad.  Pre Approved Credit Cards are a great idea for college students who are backpacking during their summer vacations.

Everyone is approved for a Pre Approved Credit Card.  Pre Approved Credit Cards are available at financial institutions as well as in local pharmacies, and at Money Mart.  We must be careful to read the fine print about fees that are associated with Pre Approved Credit Cards.

Pre Approved Credit Cards can be purchased with a fixed amount of money, or they can be reloaded online with money from our bank accounts.  As an example we can buy a $100 Prepaid MasterCard.  When this amount of money has been spent, we can reload it by transferring money from our bank account to our Pre Approved Credit Card online.

VISA offers 3 different types of Pre Approved Credit Cards.  VISA Gift Cards are the perfect gift for anyone of any age.  It is a great alternative to giving cash as a gift.   Pre Approved Credit Cards are protected against theft and fraud if our credit card is lost or stolen.  This is an advantage of a Prepaid Credit Card as a gift over cash, because if we lose cash it cannot be replaced.

The VISA Reloadable Prepaid Card offers clients the option to make retail purchases, pay bills, and shop online just as if they were using a traditional VISA card.  Pre Approved Credit Cards only allow us to spend what we can afford.  We can reload the card with money that we already have in our bank account, and therefore we can never over spend or be in debt.

The VISA Travel Money Card is a Prepaid Credit Card which is specifically designed for travellers.  It is a great alternative to converting money to foreign currency or buying travellers cheques.  These Pre Approved Credit Cards are accepted worldwide at merchants and ATMs.  Similar to traditional VISA cards, The VISA Travel Money Card allows multiple credit cards to share the same prepaid amount.

Pre Approved Credit Cards are a great idea for college students who may not be approved for a Student VISA Card.  The downfall about Pre Approved Credit Cards is that they don’t actually offer us any type of credit.  Therefore, having a Prepaid Credit Card does not help establish a credit history.

Before deciding what type of Credit Card is best for you, please check out the other posts in our Credit Card Management series which include a review of the TD Bank Payment Plus VISA Card , The Best Solutions to Credit Card Debt , and Are Credit Cards Good or Bad?  

Photo By MoneyBlogNewz