Are you taking a trip outside of the country any time soon? A credit card can be your best accessory! Credit cards provide the most convenient and safest way to pay for travel costs. But it is important to be aware of the precautions when traveling with a credit card, especially when traveling abroad.
Do you currently have a credit card that is widely accepted? If not, consider credit cards from MasterCard, Visa and American Express - they are a safe bet in most countries. Even with these accepted cards, you can expect additional fees to be involved such as higher ATM fees and currency conversion fees, usually ranging from 1-3 percent. It’s a good idea not only to call your bank to double check these fees, but also to update them on your vacation plans. Otherwise, if they track your card being used in an unusual location, it may raise a red flag and lead them to believe the card or your personal account data was stolen and they can block the credit card. If your card is blocked, you will need to call the issuer and expect a delay before you can re-access your credit.
Remember to check your credit limit and your card’s expiration date. Nothing is worse than leaving the country and finding out you have to limit your vacation expenses to the one hundred dollars in cash you happened to bring. Speaking of, do bring some cash on your trip. Some foreign restaurants and gift shops don’t accept credit cards and you don’t want to be limited or unable to bring souvenirs back, do you?
When you are able to use the credit card, watch out for double or dishonest billing. Keep all receipts and keep track of your spending. This is most easily done if you scale down to only one credit card during your vacation abroad. Using a single credit card will make it easier to budget and track your spending when you return home. Holding on to all receipts will make it easy to identify any unusual charges on your credit card statement.
While on vacation, store your credit card account numbers somewhere secure (under password protection or in a safe) in case you lose your credit card or get it stolen while away from home. This will make it easier to cancel the account when calling your card issuer. In case this happens, it is good to have a back-up credit card, also kept in a safe, for remaining expenses.
Bon voyage!
Friday, March 7, 2008
Thursday, March 6, 2008
The Good and The Bad of 0% APR Credit Cards
We've all heard of 0% APR credit cards, zero percent symbolizing the introductory rate offered by credit card companies for a period of three to twelve months. The highlight of a 0% APR credit card is the non-existent interest rate on balance transfers, new purchases or both. Credit card companies create 0% APR credit card promotions to attract new customers. If used responsibly, a 0% APR credit card could be used as a tool to reduce or even eliminate credit card debt and establish credit without paying interest.
0% APR credit cards do have some drawbacks. A 0% APR credit card only lasts for the promotional period and some don't allow balance transfers during the 0% APR period.
Default, late payment, or over credit limit charges are usually heftier than other types of credit cards and the promotional period is discontinued if any of these are abused. Interest rates are usually high when the 0% APR period ends, so before signing up for an 0% APR credit card, make sure you are aware of the rate after the promotional period ends.
0% APR credit cards do have some drawbacks. A 0% APR credit card only lasts for the promotional period and some don't allow balance transfers during the 0% APR period.
Default, late payment, or over credit limit charges are usually heftier than other types of credit cards and the promotional period is discontinued if any of these are abused. Interest rates are usually high when the 0% APR period ends, so before signing up for an 0% APR credit card, make sure you are aware of the rate after the promotional period ends.
Students Need Credit Cards!
If your teenager is begging for a credit card, it's time to listen! Student credit cards are a great way for high school and college students to establish credit worthiness. Many credit card companies offer student credit cards at no annual fee and many offer rewards, cash back, and a low or 0% introductory APR. Having a student credit credit card has many benefits for your teenager. Besides helping him/her build credit, student credit cards also provide a line of credit for necessary school items such as book, school supplies, and even groceries.
Student credit cards do have some drawbacks. These type of credit cards usually carry a higher APR due to bad or no credit usually associated with student credit card users. Thus, liberal spending without paying the card's full balance could result in hefty finance charges and / or long repayment terms. The ideal situation for a student is to use the credit card like they would cash. Paying the full balance every month establishes credit worthiness and avoids unnecessary payments on interests, defaults, and more.
If your teenager can learn to be financially responsible with a student credit card, that will be one valuable lesson they leave home with.
Student credit cards do have some drawbacks. These type of credit cards usually carry a higher APR due to bad or no credit usually associated with student credit card users. Thus, liberal spending without paying the card's full balance could result in hefty finance charges and / or long repayment terms. The ideal situation for a student is to use the credit card like they would cash. Paying the full balance every month establishes credit worthiness and avoids unnecessary payments on interests, defaults, and more.
If your teenager can learn to be financially responsible with a student credit card, that will be one valuable lesson they leave home with.
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