Ask Liz Weston

Get smart with your money

Credit Cards

Thursday’s need-to-know money news

By

Zemanta Related Posts ThumbnailToday’s top story: Avoiding financial aid scams. Also in the news: Escaping the credit card fee trap, a beginner’s guide to your company’s stock plan, and the credit score for small businesses.

Not So FAFSA: How to Avoid a Student Aid Scam
Protecting both your information and your child’s.

How to Escape the Credit-Card Fee Trap
Don’t give the banks more than they already want.

A Beginner’s Guide to Your Company’s Employee Stock Plans
Learning the ins and outs of your company’s stock options.

The credit score you’ve never heard of
If you’re a small business owner, pay attention.

Should you send your kid to college with a credit card?

By

teen-creditSavvy parents know the importance of building a good credit history. They also know that paying with a credit card can be more convenient and secure than other methods.

But personal finance expert Janet Bodnar has one word of advice for parents thinking of providing their college-bound children with a credit card: don’t.

“It’s dangerous and it’s not necessary,” said Bodnar, editor of Kiplinger’s Personal Finance and mother of three college graduates.

On the other hand, personal finance columnist Kathy Kristof—who also writes for Kiplingers and who has sent two children to college—says students who have been taught how to handle money can be responsible credit card users. She added her kids as authorized users to one of her credit cards, and said it’s worked out well.

You can read more in my Reuters column this week, “Start college kids with bank accounts, not credit cards.” Bodnar has more tips for parents at “Rules for raising money-smart kids.”

 

 

 

 

 

Friday’s need-to-know money news

By

seniorslaptopToday’s top story: How to simplify your financial life. Also in the news: Credit card fees you shouldn’t have to pay, the hidden costs of starting your own business, and the amazing credit card features you’ve always wanted.

8 Easy Ways to Simplify Your Financial Life
Sifting through the clutter.

6 outrageous credit card fees you shouldn’t have to pay
Banks will always find a way to get more of your money.

The Hidden Costs of Starting Your Own Business
You’ll need to spend money to make money.

5 Credit Card Features You Wish You Had — That Actually Exist
Choose your own rewards? Sure!

Wednesday’s need-to-know money news

By

downloadToday’s top story: How a secured credit card could help you build your credit. Also in the news: Generations X and Y race to prepare for retirement, how to handle your debt when you’ve lost your job, and an identity theft reveals how he empties your bank account.

The Best Secured Credit Cards in America
How to build or improve your credit.

Gen X Vs. Gen Y: How Retirement Ready Is Each Generation?
Which generation is best prepared for retirement?

What to Do About Debt When You’ve Lost Your Job
You cannot ignore it.

An Identity Thief Explains the Art of Emptying Your Bank Account
It’s shockingly easy.

4 phone calls that can save you a ton of money
Savings are just a phone call away.

Wednesday’s need-to-know money news

By

Zemanta Related Posts ThumbnailToday’s top story: How you could save $200 a month on your mortgage. Also in the news: How making the minimum payments on a credit card bill could take decades to pay off, why you should pay cash for your new car, and what to review during your annual financial checkup.

Millions of Homeowners Could Be Saving $200 a Month on Their Mortgage
Playing the HARP.

How long does it take to pay a $2,000 credit card debt with minimum payments?
The answer may surprise you.

Should You Pay Cash for Your Next New Car?
The argument for paying cash.

3 Steps for Your Annual Financial Checkup
What’s up for review?

Q&A: Credit scores and new accounts

By

Dear Liz: My spouse signed up for a store credit card to receive a discount on a large purchase. As she has no strong interest in maintaining a line of credit there, is there a simple way of discontinuing this account without affecting our credit scores, given that we may apply for a mortgage in the near future?

If not, is it critical we maintain some frequency of use on this account?

Answer: First, let’s correct a popular misconception that marriage somehow combines your credit records. Assuming she applied for the card in her name alone, this account won’t show up on your credit report or affect your scores.

Should you apply for a mortgage together, however, her scores could affect the interest rate and terms you get. Opening and closing accounts can ding scores, so it’s best to avoid both when you’re in the market for a major loan.

Issuers vary in their policies on closing inactive accounts, so it’s hard to predict how much activity would prevent the card from being shut down. Typically, though, a small charge every two to three months is enough to keep an account open.