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When credit cards first came into existence there was only one type, the unsecured credit card. If you had good credit and passed all of the relevant criteria, such as a specific income level and working at the same job for a number of years, then you were approved for a credit limit set by the financial institution. Unfortunately many people run into financial difficulties and do not qualify for this type of credit card. Thus the door was opened to the secured credit card.

The secured credit card is basically a credit card for individuals with poor credit (such as those who have been discharged from bankruptcy); or those who have a lower income. This type of credit card is one in which you put down your own money as collateral. You may then use the card and borrow in this manner until a time at which the credit card company is willing to consider extending you credit by way of an unsecured credit card. This will happen once you have proven that you can use credit responsibly and can pay your bills on time every month.

In most cases, the limit on a secured credit card is low, in the range of $500 to $1000. This is a small enough amount that the person who is attempting to rebuild their credit should not run into any financial problems. Most companies are willing to consider a responsible credit card holder for an unsecured card after they have been with the company for anywhere from one to two years. The request will be considered on a case-by-case basis. Once you feel you have proven yourself with responsible credit card use, do not be afraid to approach the company about switching to an unsecured credit card.

There are a number of companies that issue secured credit cards but it is important that you look for one that does not charge an application fee. Most have an annual fee as this is a standard practice, but make sure you compare the fees from company to company before you make a final decision.

Another important point of note is that before you apply to any particular credit card company, find out if they make it a habit to report their credit information to all three credit reporting agencies. After all this is a primary benefit that you should take full advantage of.

Tags: credit card | secured credit card | debt | apr | loan

Millions of Americans are seeing inflation in the price of gas and groceries, but they are being told that the heart of the consumer engine is spending. Some will even argue that in some areas, costs have dropped (like housing) and interest rates on loans have fallen, making it an ideal time to buy a home. But, for those struggling to put food on the table and make the long commute to work at the same time, these conflicting messages can be troublesome. If they continue to spend at the level that they can’t support, they may end up having to take a cash advance to help pay for daily expenses, instead of reserving payday loans for emergencies as they are meant to be used. This can put them further in debt, if spending is not curtailed, and new budgets drawn up to accommodate rising prices.

The first thing a budget can help with is figuring where all the money is going. It may surprise some families to realize that they are now making an additional car payment in the form of gas costs just to make it to work. If they aren’t keeping track of the grocery or the gas bill, they won’t be able to see where the biggest savings might come from. They can’t make decisions based on actual numbers and instead might opt for feel good economics instead of some needed hard choices.

Once a budget is drawn up, people know where modifying behavior will make the most financial sense. Maybe carpooling with your spouse and eliminating one car is the way to go to help you meet your expenses during times of high inflation. Maybe shopping at the big warehouse club is actually increasing your grocery bill because it is too far away and it costs more to get there. Maybe, you can find out which foods cost less and can be used to build a menu during the week without making people go hungry in your family. All the little things add up in a budget and can help you to keep your spending in line while continuing to take advantage of specials when they are available.

Would you pay money to lend yourself your own money? No? Well if you wouldn’t do so, why would you take an Refund Anticipation Loan?

It probably seems easy at first: sing a paper and walk out with a check against your coming refund. Yes but no! Your tax RAL will cost you much more than you can imagine. As an example, H&R Block’s RAL cost is about $230 for a $3000  refund. And you get that refund on a Emerald Card with 36% APR!

Such loan makes no sense. You are way better filing with e-file and getting the refund deposited directly into your bank account. It only takes about a week after the e-filing to receive your funds.

Tags: e-file | filing | hr block | taxes | ral

Making the right financial decisions can really make your life easier. When it comes to choosing credit cards these days, however, the right decision is not easy. There are many plastics out there, and they all come with all kinds of fees, APR’s, rewards and pages of terms & conditions.

The best way to pick a card can be summarized in a 3-step plan:

1. Educate.

What is APR? How do they calculate my minimum payments? How much will I have to pay per month if I owe $1000? What is a Balance Transfer? What is an Identity Theft Program Fee? It is really important to know the basics and the terms of the credit  because a smart consumer is an educated consumer. Here are a couple of articles that are going to be helpful:

- Understanding APR (Explains what really APR is, how it works and how not to get fooled by APR offers)

- 17 Hidden Credit Card Fees Revealed (Every credit card fee explained)

- What is FICO and Why Should You Care About it (Explains what FICO is and gives some advice on how to keep those score numbers high)

- Balance Transfers: Benefits & Drawbacks (Explains the possible pitfalls of Balance Transfers)

- How to Choose a Credit Card (Explains the different types of plastics)

2. Research.

There are a million websites out there that will help you with your research. You best bet is to figure out what are you looking for in a plastic: are you out there to collect point or you want to transfer balances? Write down your requirements and then compare the offers side-by-side.

- CreditCards.com (Great credit card comparison website)

- Bankrate.com (Compare The Best Credit Card Rates)

3. Negotiate.

If you have found your card online, and if you have some spare time, you may want to go one step further and call the bank. Talk to a customer care specialist and see if you can get a better deal. Very often supervisors have the ability to lower APRs and waive fees. 10-15 minutes on the phone can really get you a nice deal and save you green!

  Tags: credit | credit card | money | loans | bills | apr | balance transfer

Have you ever thought what would you do if you suddenly wake up as a millionaire? People usually follow the same answer pattern when asked that question: Pay off bills, travel around the world, buy a house, buy a car, quit work. Invest the money in a savings account and live off the interest. Interestingly enough, it sounds selfish. Looking at what individuals usually say, they rarely mention their families or friends. Nobody says that “I will send all my grandparents to Hawai” or that “I will buy my best friend a gift he/she always wanted”. The point is, do people become selfish when they have money? There is a Citibank commercial that has a really nice motto: “The best things in life actually aren’t  things” Is that so?

Tags: lottery | lotto | millionaire | money | bills

Companies spend a lot of money on advertising their products to the public and unfortunately that good advertising often works: people tend to buy products that they have seen on TV or read about in the magazines. Sometimes, however, those products are not the best buy. They are expensive because of the brand they are sold under at the same time they are no different that the rest of the products on the shelf. Generic, or otherwise called store brands can often save shoppers lots of green.

A good example is CVS. What does a regular CVS customer buy? Cosmetics, medicine, household supplies. So let’s get two separate carts and shop. Shampoo, toothpaste, face cleanser, pain reliever, cotton swabs.

Cart 1: contains Head & Shoudler’s Dandruff Shampoo, Classic Clean; Crest Vivid White Night Toothpaste; Clean & Clear Oil-Free Daily Pore Cleanser; Advil Ibuprofen Coated Gel Caplets; Q-tips. Total for this cart: $35.00.

Cart2: CVS Dandruff Shampoo 2 In 1, CVS Bright White Whitening Toothpaste, CVS Oil Free Acne Cleanser,Pain Relief Rapid Release Gel Caps Extra Strength, CVS Cotton Swabs Flexible Plastic. Total for this cart: $13.39.

Looking at the above, it is easy to see that the CVS store brands have saved us $21.61, which is a nice piece of change. Worried about the quality of what you are buying? Compare the ingredients and you’ll see that they are 100% identical in most products! Why pay for the brand name when you can have the same for less?

Tags: cvs | save money | store brands | generic

‘Overtime r us’ is about to become every American family’s slogan soon. Everybody does overtime – my neighbor, my colleagues, my friends. The 40-hour workweek is something that seems long gone, lost in the past. The trend is that overtime is on the rise – employees worked 10% more hours in 2005 than in 2004 and 12% more hours in 2006, compared to the previous year. And how not to – bills are piling up, employer requirements are higher and higher, inflation increased, eating out worker’s paychecks.

Long working hours have a list of negative effects, associated with them. The high levels of stress lead to the so-called burnout where individuals are simply not able to perform on adequate level, they turn into workaholics. Just like an overworked old car, their “engine” – the brain needs it’s “oil changed”.  And sleeping 4-5 hours doesn’t work. These employees often lose interest in their social lives, drop exercising, eat junk food, smoke excessively and consume tons of caffeine in forms of coffee and chocolate. More hours however are not always equal to more money: overtime-exempt employees are often working for the benefit of keeping their job or to satisfy the demand when it pikes up. People are often required to work OT to cover for their absent colleagues.

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You have probably heard the 501(c)3 expression already, and you were wondering what it is. Well, simply put, the 501(c) is a condition of the United States Internal Revenue Code, which allows incorporation of charitable, or otherwise called non-profit associations such as Labor Unions, Credit Unions, Mutual Insurance companies and Veterans’ organizations. Those companies are exempt from Federal income taxes and their main purpose is not acquiring profit, but helping the public. 501(c) organizations are prohibited from participating in various political activities.

Tags: 501(c) | credit union | mutual insurance | debt | labor union | charity | non-profit