Current by Discover® is the perfect credit card to set your teens on the path to responsible money management – but with some parental controls built in to keep them safe.
The Current card is a pre-paid card that gives your teens the freedom to spend as they wish – within boundaries. Parents can set up weekly spending limits and block charges at any category of retailer, or the ATM machine.
The card can be loaded by transfers from a parent’s account, and working teens can have their paychecks automatically deposited. They’ll even receive an email notice when the funds are in the account. They can even set up their account to alert them when they’re nearing their weekly spending limit.
Current Cards are safer than cash for teens – who are likely to leave a purse or wallet unguarded. If the card is lost it can be deactivated until it is found –keeping their money safe from unauthorized use. Of course, as with all Discover® Cards, fraudulent charges are covered if the credit card used before the loss is discovered.
While most kids can go through cash and never know where it went, the on line money management tools offered by the Current credit card lets them see just where their money is going. This can be a valuable teaching tool for parents and an aid for teens learning to live within a budget and make wise spending choices.
Of course, since it’s for kids, it has to be cool as well as useful. That’s why the Current Card offers 7 unique credit card styles designed just for teens. It’s also why teens get free access to discounts and deals at the stores they love most.
Let your teens learn sound credit management in the safety of parental controls – get them a Current Card by Discover®.
Careful credit card management could mean the difference between qualifying for a home mortgage and not qualifying. And, when you do qualify, it can mean a difference of a point or two in the interest rate you’ll pay.
Why? Because the way you handle credit cards has a large influence on your FICO scores. And your FICO scores are one of the three most important determining factors when you apply for a home mortgage.
Monthly income and the stability of your employment are the other two factors.
If you’re thinking of a home purchase, now is the time to get a copy of your credit report and check your scores. Even if you pay all of your bills on time, the way you handle credit cards could be pulling your FICO scores down, and if that’s the case, you need to take some steps.
First, check your current card balances against your credit lines. If your balances are over 30% of the credit line on any one card, they are pulling your scores down. To correct this, you can do one of three things:
Ask your credit card issuers for a credit line increase – but don’t use it
Move your balances between cards so that each shows less than 30% of the available credit.
Choose and apply for a new credit card, then don’t use it except to transfer balances.
It seems silly that you can owe the same amount of money and move it around to increase your credit scores, but that’s the formula.
Misinformation to disregard:
When mortgage lenders attempt to counsel their customers on how to raise credit scores, some of them make a big mistake. While they are correct in telling customers to pay down debt, some also counsel people to close unused credit card accounts. This is a bad idea and will actually lower your scores.
The FICO formula wants to see that you are using only a small portion of the credit available to you. If you close an account you reduce that available credit.
Also, as nice as it is to pay less interest, it is a bad idea to move all of your debt to one card with lower interest – unless you can move it and still remain under 30% of your available credit on that card.
Of course you should pay every credit card billing on or before the due date – and if you pay on line, be sure you pay by the correct time of day if you pay on the due date. Payments made after a set time of day are posted the following day and will trigger both a late charge and a late notice on your credit report.
The Chase Sapphire® credit card is the obvious choice for those who love to travel or to shop on line. That’s because Chase Sapphire® gives you access to Ultimate Rewards™
While every purchase gives you a point per dollar, you’ll get 2 points for every dollar spent on eligible flights purchased through the Ultimate Rewards Booking Tool. AND when you shop on line at select merchants through the Ultimate Rewards Mall, you get up to 10 bonus points for every dollar you spend. With over 3 million products to choose from, you’re sure to find what you’re looking for!
What can you buy with points? Anything you want. You can buy what you please with your Chase Sapphire® credit card and pay for it with points. Since your points are unlimited and never expire, you can even “save up” for something really spectacular.
Travel is a breeze when you book through our All-in-one travel center, and you have the flexibility to pay all or part of your travel expense with points, while earning double points on your purchase. In addition, when you use your card, Chase has you covered with Travel Accident Insurance, Trip Delay and Lost Luggage Reimbursement.
Travel service is just the beginning – you can call 24 hours a day to speak with a live representative, and our concierge service will help you with everything from finding a good restaurant to locating the perfect gift, to getting seats at exclusive sporting and entertainment events.
With no annual fee, a grace period of at least 20 days when you pay your balance in full each month, and a low variable APR of Prime Plus 8.99%, the Chase Sapphire® card represents smart money management from start to finish.
Now that banks want to cut back on lending, they’re lowering credit lines for even their most reliable cardholders – and they’re closing unused accounts.
While that might seem OK to you – because you don’t want to use the card and go farther into debt – it really isn’t OK. Your credit score is compiled from many factors, and one of them is the amount of unused credit you have available to you.
Thus, when a credit card account is cancelled, your available credit goes down – and so does your credit score.
The best thing to do – take that card out and use it now and then. And when the statement arrives, pay it in full. That will keep the card active without costing you any money in interest payments. So use it for something you would have purchased anyway – such as groceries or gasoline.
According to a Reuters article in December, the credit card industry plans to cut more than $2 trillion in credit lines over the next year and a half – that’s a 45% decline in the total credit available to consumers.
One reason credit card companies want to close your dormant accounts is that it costs them money to keep an account on the books – and if you aren’t spending any money, that means they’re going in the hole by keeping your account open.
Don’t give them an excuse – use it just often enough so you don’t lose it.
Identity theft is a second reason to use your card…
Most of the time, if you have no current balance and you had no balance the previous month, your credit card issuer won’t send a statement. Thus, a person using your identity would have no problem in contacting the card issuer, having “your” mailing address changed, and using the card until the credit limit was reached.
Since the bills would be going to a different address, and since you wouldn’t be expecting a bill for a card you weren’t using, this could go on behind your back for months.
You wouldn’t know that you had unpaid accounts until you attempted to get credit yourself and learned that your good credit wasn’t so good any more.
That’s why credit experts advise that you regularly check your credit report and/or enroll in a credit alert service.
Since identity thieves like to zero in on those unused accounts, use your card at least every other month, so the use shows on your credit report. Doing so will make that credit card less attractive to would-be thieves.
Do you like to buy lottery tickets? Using this credit card is even better than buying a lottery ticket, because you don’t have to pay to enter.
Every time you use your American DreamCard™ you get one entry for every $1 you spend – up to 1,000 per transaction. The monthly sweepstakes jackpot grows with the amount of money spent on purchases by the American DreamCard® holders. This is the first and only “Pooled Rewards™” Credit Card.
Of course you don’t have to be a big spender, because just one entry could win, but the more entries the better, so you’ll get 1,000 entries just for applying for this credit card. You’ll get 50 more entries when you refer a friend, and another 1,000 when they get their new card.
The current Sweepstakes begins on 10/01/09 and ends on 9/30/10. And while new winners are drawn each month, your entries do accumulate and roll over to the next month. All current entries will expire as over 10/01/10, and a new Sweepstakes will begin.
Annual fees range from Zero to $59, depending upon your credit. Variable APR’s for purchases are currently at 14.99% and 21.99%. Cash advance APR’s are a variable 22.99% and 28.99%. Rates are subject to change as the Prime Rate changes.
The American Dreamcard® grace period for purchases is 20 days after the close of the last billing cycle, provided you pay your bill in full each month.
When you use this credit card and pay in full each month, it’s like getting hundreds, or even thousands of lottery tickets – absolutely free.
You can if you want to – simply add his or her name as an authorized user on your account, and have him/her do the same for you. Then you’ll each be issued cards on each other’s accounts and both be able to use all of your combined accounts.
But should you?
Since money issues are a prime cause of divorce, the first thing to do is get into agreement about how your credit cards – and the rest of your financial picture – will be handled. Of course, this issue should have been settled long before the wedding, but if it’s still a question, now is the time to face it.
If your spending habits are similar – good – especially if you’re both conservative spenders. But if one of you is a free spender and the other is conservative, you probably shouldn’t blend your cards.
As far as the credit bureaus are concerned, each of you is an individual entity – with an individual credit history. So if you’ve taken good care of your credit and your spouse spends freely – you probably want to keep your own cards separate. And since joint accounts – such as utility bills – may be reported under both your names, you probably want to oversee payment of those accounts.
Because each of you will be treated as an individual for credit reporting, it is a good idea for you to either have separate accounts or a joint account – with both of you being responsible for payment. A joint account will be reported to the credit bureaus under both of your names, and your credit will be improved or harmed by the way you handle that account.
Many widows have found out too late that merely being an authorized user on their husband’s accounts did not give them a credit history. So when they were widowed needed credit, they had none – even if they had been the person responsible for bill-paying during their marriage.
Every person needs a good credit history, and thus should either have a credit card that is solely in their own name, or be a joint holder on an account – not just an authorized user.
So if your spouse is irresponsible with spending and should not have a credit card – share the account, but shred his/her card!
When the time comes for you to purchase a house – probably together – both of your credit scores will be considered. So it pays for both of you to keep your FICO scores as high as possible.
In cases where one spouse has maintained good credit and the other has not, lenders can write the mortgage in just the name of the “good credit spouse” – but in that case can only use the income from that party. This could be a blessing in disguise if using your combined income would cause you to buy a house with payments that put a strain on your budget.
If you don’t have a credit card in your own name, look over the possibilities and make an application. If you have no credit yet, you may need to choose a high interest card, but if you use it sparingly and pay the balance in full each month, you’ll build your credit and soon will be eligible for a lower rate card.
Want a good incentive for using a prepaid credit card?
How about cash back every time you use the card? How about a $25 bonus every time you refer a friend to First Vineyard? How about an extra 1% back on every dollar you spend online through the First Vineyard MarketPlace™? How about cash back on the dollars your friends – and their friends – spend on their everyday needs?
First Vineyard’s compensation package could have you earning up to $800 per month in cash back fees – from your own spending, and from the people you refer, and the people they refer. The more people you refer, and the more they refer, the more you earn.
It’s like MLM marketing, but without asking your friends to buy or sell your products.
The First Vineyard Prepaid MasterCard® is available to any U.S. resident over 18 years of age with a valid social security number and verifiable address. There are no credit checks, and no employment verification.
You’ll pay a one-time activation fee of $39.95 and a monthly fee of $6.95. Regular purchases made in the U.S. have no fees, and the ATM withdrawal fee is only $2.
You can add cash via direct payroll deposit, Pay Pal, or by cashiers check or money order for free. (Fees do apply to electronic funds transfers and other means of re-loading your card.)
With the First Vineyard Prepaid MasterCard® you’ll enjoy the convenience of powerful online management tools, including spending summaries, account details, and current compensation due you for cash back rewards.
You can also transfer money to any checking, savings, or money market account and send money to any First Vineyard member. Our Click-n-Pay™ service means you can pay any bill, even if your biller doesn’t accept MasterCard.
.You can even use your First Vineyard card to place long distance calls from any phone.
Once you’ve joined our First Vineyard family and qualified for compensation, we’ll help you build your compensation tree. When new members come in without a direct referral, we insert them into existing member’s trees. That means you could receive cash back when a total stranger goes out to dinner and a movie!
But that’s not all… you can also receive a portion of the First Vineyard MarketPlace Pool. At the end of each month, a portion of each sale at the FV MarketPlace is divided evenly among qualifying members. And qualifying is easy. You qualify for rewards any time your First Vineyard Personal Group has $50 or more in group spending for the month.
Follow the links for more details on how your First Vineyard Prepaid MasterCard® can actually increase your income each and every month.
Shielding the kids from the realities of consumer finance can set them up for failure later on, so begin early to teach them the risks and rewards of credit card use.
One good method is to get a credit card that is used only for their purchases – and whose payments are made from their budget / allowance.
Begin by doing the research together – look at the different credit card offers, consider the benefits of each, such as interest rate, reward offered, and any annual fees.
Since you will be monitoring this use and hopefully keeping purchases to a minimum, a card with an annual fee in exchange for rewards would be a poor choice. However, show your child the math before rejecting that card.
Compare the cards offered to a person with a high credit score vs. a person with a low credit score, so that the benefit of maintaining high credit stands out in black and white.
Next, have your child assist you in filling out the application. Let him or her learn what information is required.
As you wait for your new card to arrive, work with your son or daughter to set up a budget for its use. Show him that if the budget / allowance for the month is $20 and he spends only $20, he can pay the bill in full when it arrives and pay no interest.
However, if she charges $40 instead, it will take 2 months to pay the principle and she’ll still owe interest – which will have to come out of her budget for the 3rd month.
At the same time, you can and should set up a savings account, and encourage your child to put any unused money for the month into that account. That will give you the opportunity to teach how interest can be a benefit when it becomes a credit to your account rather than a drain on your funds.
Since consumers are right now drowning in debt, and since interest and penalties are making their debts double and triple, teaching kids to plan ahead and wait to make a major purchase could be one of the most beneficial lessons you teach as a parent.
So consider that your son wants a new “toy” that costs $100. Show him how putting that $20 into a savings account and making the purchase after 5 months will leave him with money left over, while making that $100 purchase now and paying $20 per month will leave him still owing interest after the original $100 has been paid.
No income or credit verification is required to obtain a First Option Visa®, but applications will be subject to identity verification and approval. Under the USA PATRIOT act we must obtain your name, address, date of birth, home phone number, and other identifying information.
To become a First Option Visa cardholder, you must open a savings account in an amount of $300 to $5,000. This account will be the security for the card. Should you decide to open your account with a small balance, you will be able to increase it at a later date. Your credit limit will be equal to the balance in your savings account.
The annual fee for the First Option Visa® is $59 and the annual percentage rate is a fixed rate of 19.5%. There is no grace period for charges or cash advances, and the interest is computed on an average daily balance, including new purchases.
Late payment and over-limit fees are both $20. The cash advance fee is 2%, with a minimum of $1 and maximum of $20.
To apply, submit an application and processing fee of $99.95. The bank will then confirm receipt and send the documents needed to open the savings account that will secure payment. If you supply accurate information and the bank is unable to verify your information, the bank will refund your savings account and return double your processing fee.
The savings account currently earns interest at a rate of 6.0% interest for the first three months, then 2.0% interest for the next nine months, for a 3.0% Annual Percentage Yield (APY). After the first twelve months your account earns 2.0% APY. These rates are subject to change.
Your account activity will be reported to the credit bureaus, so when used wisely, your account with First Option Visa® will help you build or re-build your credit rating.
When you qualify for a non-secured credit card, and your credit card charges are paid in full, you will be able to close both the credit card account and the savings account. At this time all monies in the savings account will be returned to you.
First Option Visa® is rated 4 stars (Excellent) by Bauer Financial Services. Cardholder deposits are insured up to $100,000 by the Federal Deposit Insurance Corporation (FDIC).
Credit card safety is more important than ever, now that identity theft has become big business. Not only can a credit card thief use it to run up huge debts in your name, the talented ones can use it to gain access to even more of your personal information.
You cannot completely eliminate risk, but you can take steps to minimize it.
The first thing you should do with every credit card is record the number, the expiration date, the numbers on the back, and the number to call if your card is lost or stolen. And keep this record in a safe place where it can’t be easily accessed by prying eyes.
A safe or a safe deposit box would be a good place. A file in your laptop labeled “Credit card numbers” would not be a good place, especially if you carry your laptop with you.
Next, never leave your purse or wallet out of your sight. If you must leave either in an employee break room or in a gym locker, leave your credit cards either at home or tucked in your pocket. Your checkbook should also be at home or on your person at all times.
A locked car is not a safe place, even in a well-lighted parking lot.
Restaurants can be dangerous
Every day in restaurants across the nation, credit card holders are leaving themselves wide open to credit card and identity theft.
How? By handing their cards to their servers when the bill is presented. The servers take the card, run it through the machine, and bring the receipt back for a signature. Most of the time, that’s fine.
But it takes only one dishonest employee to take an impression of the card and make note of the numbers on the reverse. Think how many card numbers a person could accumulate over one week-end in a busy restaurant. The wait person is probably not the end user of these numbers, but instead is the middle man – gathering the numbers to be sold.
Telephones are dangerous, too
There’s just one hard and fast rule to use with regard to telephones: Never give out any information – whether it’s your credit card number, your address, or even your date of birth – unless you are the one who placed the call.
When anyone calls you asking for private information, hang up. Even if they seem to know all about you, and can tell you your credit card account numbers – don’t talk to them. Even if they say they represent your bank or your credit card issuer – Hang up and call the number you have on file. Never call a number they give you.
It’s sad to realize that we have crooks in our midst, but we do. It’s up to you to protect yourself from them.
