Checking your Bill: Explaining Hidden Credit Card Charges
Over-limit Fees
Having your card declined in a restaurant or retail outlet is embarrassing. Credit card companies responded to this by allowing users on certain types of cards to go beyond pre-set limits. This supposed privilege comes at a cost of $20-30 per transaction over the limit. Avoid this by paying attention to your limit. Alternatively, you might consider only applying for those accounts without this privilege.
Late Fees and Hikes
Credit companies have strict rules on late payments. Even if your payment arrives on the last day, you may still face late charges. Most companies have a deadline set at 2pm in their time zone. Keep this in mind when paying online or by mail. Otherwise you face both a late charge, rate hike, and damaged credit. All this can be prevented by establishing email reminders or an automatic withdrawal plan.
Insurance Fees
Two types of insurance are often tacked onto every bill. These standard fees are applied unless you disallow them. Your best bet is to inquire upfront about these forms of insurance.
Payment protection insurance is a way for the credit company to ensure minimum charges are paid each month in the event that you cannot pay them. This can be beneficial, but you should always understand the rules governing coverage and claims before signing any contract. Theft insurance is unneccesary, because the federal government prohibits charges to consumers of over $50 in the event of theft. Fast reporting means zero charges.
Transfer Balances
Older credit accounts tend to have higher interest rates. It may seem appealing to transfer an older balance to a new card, and it is a good option in some cases. However, beware of cards with balance transfer fees or short introductory periods. Closing old accounts also hurts your credit score, so it is usually best to simply ask for a reduction in your interest rate.
Foreign Transactions
International travelers are best off seeking cards specifically designed for the purpose. Most credit accounts impose a percentage charge on foreign transactions. A few provide this service without additional fees.
Cash Advance
Always read the fine print of an offer before opening an account. One thing you will discover is a separate list of rules for cash advances. You first pay the owner of the ATM for an advance. Then you pay a percentage fee to the credit company. Finally, there is no grace period on cash advances. A higher-than-normal interest rate kicks in immediately.
Rewards and introductory periods are great features, and the benefits of a credit account are worth the effort. Take the time to fully investigate credit offers, and choose the best one for your lifestyle. This will ensure you get the benefits without paying hidden charges.
Insurance: A Guide
"Remember kids, I have life insurance" - Adam Savage
This is a guest article from Tatyana Levin
These days one must be financially savvy. Money is not easy to come by and should be managed carefully. With the availability of tools that make it easy to keep track of current events, the stock market, and even your own money, it would be almost a crime to not utilize these tools to make the best and most informed financial decisions. Unfortunately, the more there is, the more there is to keep track of. This applies both to tracking tools and money (the small curse within the comfort of having money to keep track of).
The savvier ones of us dabble in investments, and the savviest make their living that way. The key is that they know what to invest in. Not magically, of course; investors do a significant amount of research to learn how to optimize their portfolios, but they have the understanding.
A grossly overlooked investment is insurance. This may be because is not typically referred to as an investment with the exception of whole life insurance that has a specific investment component within it. Webster’s defines the word “invest” as a commitment of money for a return and “insurance” as a guarantee. This makes insurance the safest type of investment, because your returns are guaranteed. But returns are not always financial in the case of insurance. They can be, if there is an unforeseen accident, but the most certain return is the feeling of security.
Now there are many different types of insurance, and what you need depends on your current situation. Obviously you only need auto insurance, found using auto insurance leads if you have a car, and you only need renter’s insurance if you rent and have possessions that you would need insured. Insurance is for those who have something to lose. With an attachment to something, either emotional of physical (or dependence, not like physically being glued to your car), comes the fear that it will be damaged or ruined in some way. For example, if your house caught on fire, you would be devastated. What would add insult to injury is not having a way to recover from this horrible disaster.
These types of examples are not unique to this article. That is the way that insurance is sold. As they say that clichés are clichés for a reason, insurance is promoted this way for a reason. The foundation of the concept of insurance is uncertainty, and it is the same uncertainty that is conjured up when investing.
The main difference between insurance and investment is that not having insurance creates a feeling of uncertainty while investments by nature are uncertain. Therefore, investing in insurance creates security and is the only secure investment that exists (and is legal). Getting insurance should be one of the easier financial tasks if you apply all the resources available with technological advances like smart phones.
About the Author: This article was written by Tatyana Levin, a copywriter for InsuranceFiles.com
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