The Good and Bad of Zero-Interest Credit Cards
The offer of a zero-interest credit card can look enticing when it arrives in the mail. Who doesnt want to avoid paying interest on credit card charges?As with most things in life, there are pros and cons to using 0-percent credit cards. Here are some facts to consider before you respond to that offer:Balance transfers: The 0-percent interest offer is a smart way to transfer balances from one card to another. Moving a high balance from a high-interest card to a zero-interest one can save you thousands of dollars.Check the introductory period: Zero percent interest is only available for a certain amount of time, usually from six to 18 months. If you have a balance beyond that introductory period, youll be paying interest again.Avoid fees: Some 0-percent credit cards will wave transfer fees of 3-5 percent for new cardholders, and waiving the first years annual fee is common. If the credit card provider wont offer these benefits, ask for them. If you do pay the fee, it will be rolled into your credit card balance.Apply quickly: Balance transfers " which are the most common reasons for accepting a 0-percent credit card " are only available for a limited time when you get the offer. If youre sure its going to save you money, then make the switch before the deadline ends " usually 30 days but sometimes as long as four months.Pay on time: A late payment of only one day can void the 0-percent APR, causing the interest rate to climb high and fast.Pay in full: If you are going to use a 0-percent credit card to your advantage, pay it off entirely before the offer of free credit ends. Any amount that isnt paid in full before the 0-percent interest deal expires will be charged the full interest rate back to the date of purchase.Dont transfer again and again: Promotional balance offers may arrive in your mailbox often. Only use one to pay off your credit card debt at zero interest, and dont apply for another card to transfer the balance to if you cant pay off the second card before the promotional term expires. It can cost you more money and can hurt your credit score.Now that you know what to look for when your mail carrier arrives with an offer from a credit card company, you may be tempted to go on a spending spree. Dont. If so, the best solution may be to toss the offer in the trash.Published with permission from RISMedia.
Debit Cards: Why You Should Proceed With Caution
A debit card can be your worst enemy when it comes to identity fraud.Credit and debit card fraud totaled $4.5 billion in 2016, according to a report by iovation, a provider of digital intelligence for fraud prevention.A debit card can be a smart way to shop if you dont want to carry cash or use a credit card and pay interest on unpaid balances. But they come with a few drawbacks.First, a debit card is linked directly to your bank account, so anyone with your card information can instantly withdraw all of the money from your account. Second, debit cards dont have near the amount of protections that credit cards do for consumers.If your credit card is lost or stolen, or the information on it is stolen, you cant lose more than $50 in unauthorized transactions if you report it to your credit card issuer. A debit card carries the same protections, but if reported more than two days later, you can be liable for all of the money withdrawn illegally.Avoiding Debit Card TheftIn addition to data hacks such as at Uber that should worry consumers about their personal information being used by fraudsters, criminals can hide skimmer devices inside gas station pumps to steal credit and debit card information.When using a debit card, only withdraw money from bank-affiliated ATMs. They have a higher level of security than independent ATMs at gas stations or other businesses. Be sure to cover the keypad when entering your information.Shred your bank and credit card statements so that thieves cant pull your data from your trash can, and check your accounts and statements daily to make sure all of the transactions are legitimate.If you can limit yourself to only spending as much as you can afford, then only use a credit card and put your debit card away. Only use your debit card for cash withdrawals, since a debit card offers much less financial protections than a credit card if stolen.Dont open emails that come from someone or a site you dont know. Phishing emails often use a phony website to lure victims to give up their card or bank account numbers, so never give out this information to anyone who asks for it, unless the email is coming from a trusted source.Sign up for fraud alerts from your bank and credit card company. If you think youve been the victim of identity theft, institute a credit freeze to prevent anyone from opening a new account in your name.Published with permission from RISMedia.
5 Steps to Design Your Home Library
Published with permission from RISMedia.
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