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Credit Card Apps: Organize Your Rewards Points, Balances, and More

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I use several different personal finance apps. However, I recently realized that I don’t have any credit card apps. I’ve heard about them here and there. I hadn’t ever really researched them, though. I wasn’t sure if they could serve any purpose for me, but I decided to do some research.

Types of Credit Card Apps

As it turns out, there are lots of different types of credit card apps. There are apps for individual credit card companies; such as the Capital One app or the Discover Card app. There are apps to accept credit cards via your phone.

However, what we’ll be looking at here are apps that help people track the details of their credit cards. You can use apps to track your balances, due dates, rewards point, and all of the other little details on a credit card. I always track these on paper, so it’s been helpful to utilize credit card apps to simplify that process.

How Many Credit Cards Is Too Many?

Of course, many people would suggest that perhaps you shouldn’t have so many credit cards that you require apps to organize them. I’m not in that camp, though. I believe that there is no magic number of credit cards that you should or shouldn’t have.

If you’re the kind of person who will use up all of the credit that you have, then you should definitely limit your available credit. If you’re the kind of person who gets flustered keeping track of multiple accounts, then it’s best to limit your number of credit cards. However, if you’re able to responsibly use a large number of different cards, then I see no reason not to have a variety of them to choose from.

After all, some cards have better rates for balance transfers whereas others have the best rewards for travel. If you want to maximize the benefits of credit cards, and you’re able to do so without overspending, then a number of credit cards is fine. However, it’s obviously important to keep them all organized. That’s where these credit card apps come in.

Best Credit Card Management Apps

Ideally, you’ll find just one or two credit card apps to organize the details of all of your cards. After all, downloading dozens of apps just makes things more confusing. Here are some of the best credit card management apps to choose from.

1. CreditCards.com Wallet

This is one of the most detailed credit card apps available if you want to maximize your rewards. It uses mapping features and algorithms to tell you exacty which card is going to be your best bet to get the most rewards at any given place.

You simply search for the store you’re shopping at (whether it’s in person or online) to get an organized list of all of your credit cards sorted by best to worst in terms of rewards value for that store. For example, right now I get 5% back on restaurants on my Discover Card. Therefore, chances are that if I’m in a restaurant, the tool will tell me to use that card. But if another one were to be better, then I’d easily know that.

In addition to providing suggestions for the best reward points, the Wallet offers a variety of other tools including:

  • Information to help you minimize interest fees
  • Tips for improving your cash flow
  • Tools to assist with budgeting and understanding where your money goes

Plus, this is one of the credit card apps that will show you card-by-card information. You can look at each card you have and see a breakdown of your spending. You receive notifications of suspicious activity to help prevent credit card fraud. Moreover, you’ll see missed rewards by transaction to help you maximize credit card rewards in the future.

2. Travel Freely

If you love to use credit cards that give you travel rewards including airline points and hotel stays, then you might want to use Travel Freely. This is one of the credit card apps that is very specific to the niche of travel.

Once you enter your credit cards into this app, it’ll tell you a variety of information including:

  • Each card’s travel benefits, which is something that is easy to forget but so useful if you have a travel mishap
  • The bonus categories that will help you maximize travel rewards and the deadlines when bonuses expire
  • Upcoming annual fee charges, so you can cancel the card in advance if it’s no longer serving you

Moreover, this is one of the credit card apps that will use your current information to help you in the future. It will recommend the best travel rewards credit cards to apply for based on your personal spending. It will even tell you the best time to apply for new cards.

3. AwardWallet

If you’re looking for credit card apps that tell you about all rewards, not just travel rewards, then try AwardWallet. If you’re the kind of person who signs up for everything from store credit cards to multiple frequent flier programs, then this is the app for you. It’ll help you track not just your credit card rewards but other types of rewards programs as well.

It tracks your points. It also tracks bonuses like free nights at hotels that might not be calculated as points, per se. Moreover, it tracks when your points are going to expire. If you’ve ever wondered, “should I stay at this hotel or that one to best use my points?” then this app gives you the answer.

As a bonus, it also has flight tracking features to make travel easier.

4. Tally

If you’re having trouble managing payments across multiple credit cards then you can look for debt management credit card apps like Tally. They provide you with a line of credit. Then the utilize that line of credit to make the best payments to each credit card. This helps you minimize costs and fees. Of course, you should always read the fine print when accepting new lines of credit. You want to make sure that this tool works for you instead of against you.

5. Debt Manager

The other apps on this list are free, but this one costs 99 cents. It may be well worth the cost. It’s a debt management app that helps you easily see how to better pay off your credit cards. You can choose from different repayment strategies such as paying off the highest interest first or paying off the lowest balance first. The app will then tell you exactly how much to pay to each credit card to meet your goal without missing any payment minimums.

Moreover, you can select to pay monthly, weekly, or fortnightly. Furthermore, you can add extra payments that are entered one-time, annually, or monthly. This app tell you what date you will be debt free if you follow the plan. It will show you how much interest you save by making different choices. If you’re struggling to pay down debt, a plan like this can be useful.

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Protecting Your Credit When You Lose Your Job

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According to the Bureau of Labor Statistics, 5.5 million job separations occurred in May 2019 alone. Of those, approximately 3.4 million people quit their jobs during the month. Then there are 1.8 million that were laid off or discharged. This usually means fired with cause. While those that quit may have known that they were going to leave, employees who are laid off or terminated might not be prepared. As a result, they have to make critical financial decisions. These include how to protect their credit, while in crisis-mode, and that isn’t easy. Luckily, there are certain steps that are effective for protecting your credit. If you’ve lost your job, here’s what you need to know.

Your Income Change Doesn’t Impact Your Score

First and foremost, it’s important to understand that your income level has no impact on your credit score. Your credit report only includes details about your credit history, such as the amount you’ve borrowed, whether you made payments on time, and your credit utilization.

Losing your job doesn’t inherently impact your credit score. However, if a job loss causes you to miss payments, relying heavily on credit cards (increasing the size of your debt), or similar actions, those could affect your score.

Check Your Credit Accounts

While you don’t necessarily want to contact your creditors immediately, particularly if you aren’t in immediate risk of falling behind, you should check your credit accounts to see if you have any form of payment protection in place. Many lenders offer credit protection as a paid-for service, allowing you to pause the payment requirements if you become unemployed.

If you believe you may have signed up for payment protection, check your statements to see if you have paid premiums for the service. It may be present on your credit card, auto loan, mortgage, or other accounts, so it’s wise to take a look. Then, if you have it, you can contact that creditor and use the payment protection to preserve your credit, at least for a period.

Apply for Unemployment

Regardless of the reason you lost your job, it is always wise to apply for unemployment. While many people who are fired for cause won’t qualify, most others will. However, even if you aren’t sure that you will be approved, it is wise to initiate the process in case you are incorrect.

While unemployment payments won’t equal your former salary, they do give you a source of income in the interim. Any additional incoming money can be beneficial. Just make sure you learn the rules of the program, such as any job search requirements, to maintain your eligibility.

Create a New Budget

When you lose your job, you need to adjust your budget immediately. Even if you have a healthy emergency fund, reviewing your expenses allows you to make adjustments to limit the likelihood that you’ll need to rely on credit cards or end up unable to make a payment.

Examine each of your bills, including everything from utilities to auto insurance to credit cards, and record the minimum payment amount. The goal should be to make minimum payments on every bill as that can preserve your credit.

A single 30-day late payment can cause your credit score to fall by up to 100 points. Plus, the derogatory mark will remain on your credit report for years. By aiming at the minimum payment numbers, you can prevent this from happening.

Once you allocate funds for the minimum payments, you can use the rest for other expenses. While you may have to adjust what you buy for groceries, limit you driving to only essential times, and take similar steps to stretch your money, it is worth it if you are able to preserve your credit while unemployed.

Speak with Your Creditors

If you have a new budget and know that you won’t be able to make your monthly payments, it’s time to talk to your creditors directly. Find out if there are any programs that can help customers experiencing financial hardships, as many would rather work with you and get something than tell you no and get nothing.

Deferments Help in Protecting Your Credit

Additionally, some debts can be deferred when you experience a period of unemployment. Federal student loans usually have deferral or forbearance options, which can help you reduce or eliminate the need for a payment for a period.

Dealing with a job loss is always difficult. But, if you follow the steps above, you can work to keep your credit score intact until you find a new position.

Have you ever lost your job? What steps did you take in protecting your credit? Tell us about your experience and share your tips in the comments below.

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What is UltraFICO?

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FICO credit scores range from 300 to 850. With higher scores typically allowing borrowers to get lower interest rates and qualify for credit with greater ease. In the United States, the average FICO credit score is around 695. This still falls into the “good” range. Still, many people struggle to raise their score out of the poor and fair ranges. Leaving them stuck with subprime borrowing options. However, the launch of a new FICO scoring model – the UltraFICO – is giving consumers the ability to boost their credit by factoring in new financial activities.

What is UltraFICO?

Unlike a traditional FICO score that relies on information provided to the credit bureaus by lenders. The UltraFICO uses an opt in model. Consumers have the option to include data from a variety of accounts.  These include checking, savings, and money market accounts.

After opting in and providing banking details, UltraFICO reviews the accounts to learn more about a consumer’s financial activities. The calculation considers not just the person’s history with lenders.  It also factors in the amount in savings, the age of each bank account, and how actively the person uses their accounts.

Essentially, UltraFICO considers a consumer’s cash-handling activities. Those who keep a healthy balance in their savings account, keep their accounts open for long periods, avoid overdrafts, and regularly pay bills that aren’t factored into a traditional FICO (like utility payments and rent). These factors may be able to boost their FICO score by signing up for UltraFICO.

However, it’s important to note that UltraFICO is still in the pilot phase. Not many lenders are involved in the trial program. There is also no guarantee that the UltraFICO will become a widely accepted approach to evaluating creditworthiness in the eyes of lenders.

Consumers That Can Benefit from UltraFICO

The UltraFICO model primarily benefits two kinds of consumers. First, people with “thin” files – usually those with very little credit history – could see their scores rise by signing up for UltraFICO. By allowing daily banking activities to factor into their scores, these consumers essentially give the model access to more information that could determine their creditworthiness.

The second group that could benefit are those who are struggling with a low credit score. If a consumers activity as a borrower has some blemishes. For example, late payments or an account in collections, the UltraFICO could use the additional data to offset some of the credit score damage.

If your score is in the low 600s or lower, the UltraFICO model could be beneficial, allowing you to work your way up into the “good” range faster. However, that doesn’t mean UltraFICO will make a big difference for everyone in that category. For example, those who regularly overdraft or have less than $400 in savings on average might not see a credit score boost.

Consumers That Won’t Benefit Much from UltraFICO

Along with consumers who don’t have a great banking history, people who already have good to excellent credit may not benefit much from the UltraFICO model. Usually, getting access to credit isn’t much of a challenge in these categories.

Plus, these borrowers usually qualify for competitive interest rates already. While those with excellent credit do the best when it comes to financing terms, the UltraFICO model might not cause a substantial credit score increase for those who already have scores above 670. As a result, borrowers in the good to excellent score ranges might not experience much of a benefit.

The only exception may be consumers who have scores that are just under the number for getting into a higher category. For example, if you have a credit score of 735, which is on the high end of the “good” category,” the UltraFICO scoring model might get you above 740, putting you into the “very good” category instead.

The Drawback of Signing Up for UltraFICO

While the ability to boost your FICO score using the UltraFICO model is enticing, there is one drawback to consider. In order to include bank account activity in your score, you have to give the program access to a substantial amount of personal data.

Along with connecting the bank accounts to the program, which requires entering your username and password, you also hand over transaction records. Many people classify these kinds of details as sensitive, and you have to trust the data is protected adequately.

Ultimately, the UltraFICO has the potential to help borrowers with limited credit histories or poor to fair credit. Just make sure you are comfortable with handing over your banking data before you choose to sign up.

Do you participate in UltraFICO? Did you find it beneficial? Share your thoughts in the comments below.

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Credit Score Misconceptions: Do You Know These 7 Things That Most Consumers Don’t?

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There are a surprising number of credit score misconceptions out there. We all have some familiarity with certain credit score facts like what a credit score is and that we should have a higher number to get good loans. In recent years, most of us have even become more aware of our score, thanks to an increasing number of tools allowing us to access that information. Nevertheless, recent research indicates that most people have no clue about the details of their credit score.

What is a Credit Score?

Your credit score is a three-digit number. It represents your history of loans and repayment. Therefore, it’s the number that most lenders use to determine whether or not to lend money to you.

If you have a good credit score, then you’re more likely to be able to borrow money. Moreover, you’ll get better rates. The worse your credit score, the harder it is to get a loan, and the more you’ll pay in interest when you do find a lender.

Your credit score is based on a variety of factors, including:

  • The length of your credit history
  • Your on-time payments vs. late payments
  • The types of loans that you have
  • The amount of money that you owe on those loans
  • How much credit you have

There are actually many different credit scores – more than you might think as you’ll discover below. But for the most part, you get a three-digit number that’s between 300 and 850. The higher it is, the better your credit.

If that’s all that you know about credit scores, then you’re in the same position as many people. But if you think that you know more then you might want to check out the following seven credit score misconceptions. Your information might be incorrect.

Credit Score Misconceptions

Credit Card Insider recently published the results of a 1000+ person survey about credit scores. The results indicate that there are a lot of credit card misconceptions out there. People think that they know things about credit scores and may be surprised to learn just how wrong they are.

1. There Are Hundreds of Different Credit Scores

If someone asked me how many credit scores I have, I’d probably say three. Like many Americans, I’ve been well-trained to think immediately of “the big 3” credit reporting agencies: Experian, Equifax, and TransUnion. I’m not alone in this belief. Nearly half of those surveyed thought that we each have three credit scores. Another 30% thought it was less than that – either 1 or 2 credit scores.

However, we actually each have hundreds of different credit scores. There are both big and small credit scoring agencies out there. There are different tools used to calculate credit scores: FICO and VantageScore are the primary methods. Although your scores should be similar across all tools, they can differ some from one to the next.

2. Your Income Doesn’t Impact Your Credit Score

Almost 60% of people surveyed believe that your income impacts your credit score. However, that’s not the case. The reason people get confused about this is because income does play into whether or not a lender will offer you a loan. After all, if you don’t earn enough money to repay your loan, then it’s a huge risk for them to lend you that money. Therefore, the lender will look at your income as well as your credit score and other factors.

However, the score itself doesn’t take your income into direct consideration. If you have no income at all but use a credit card that someone else pays off for you, then you might have a great credit score. If you have a seven-figure income but lots of late payments, then you might have a terrible credit score. The only way that income matters is that of course, it’s easier to make on-time payments in full if you have a steady, good income. But the number of your income itself is irrelevant to your credit score.

3. Applying for New Cards Does Affect Your Credit Score

I was surprised to learn that more than one-quarter of respondents didn’t know this. When you apply for a credit card, the institution you’re applying to makes a hard inquiry on your credit report. That decreases your credit score. The decrease is minimal and doesn’t last long in terms of your credit history. However, if you’re teetering on the edge between a “fair” and “good” score (or any two scores) or you are working hard to build your credit then you might want to avoid applying for new cards for a while.

4. Your Debit Card Doesn’t Help Your Credit Score

Your credit score is a reflection of your credit history. Remember: your debit card is basically cash. It doesn’t count towards your credit history. Therefore, if you use your debit card to pay for things, then you’re not building your credit. If you want to improve your credit score, then you need to use your credit card (and pay it off on time). Even if you select “credit” at checkout, your debit card is still a debit card, and it doesn’t change your credit score.

5. Closing Accounts is Not Good for Your Score

More than one-quarter of people surveyed thought that canceling a credit card would improve their credit score. I’m guessing that the thinking behind this is as follows:

  • If I cancel my account, then I can’t use the credit card.
  • If I don’t use the credit card, then I can’t accrue more debt.
  • Moreover, I won’t potentially make late payments because I won’t owe anything.
  • Therefore, it’s better for my credit to cancel the card.

It’s certainly true that having no card is better than having a card you run up a high balance on and then pay late. However, canceling the card altogether isn’t your best course of action. It can decrease your credit score. Instead, just put those cards out of reach, avoiding the problems without compromising your credit.

Notably, if you don’t use your card for a long period of time, then the credit card company might cancel it or reduce your available credit. This isn’t great for you either. Therefore, you should pull the card out periodically, charge something inexpensive on it, and immediately pay it off.

6. No Debt Isn’t Necessarily the Same as a Good Credit Score

One of the keys to maintaining a high credit score is to utilize your credit regularly. You have to use it, but then pay it off quickly. You do want to keep your overall debt low. The ratio of your debt to your available credit is one factor in your credit score. However, having zero debt doesn’t necessarily mean that you’ll have a good credit score.

Consider this: if you’ve never had any debt before then you don’t have a credit history at all. Therefore, you can’t have good credit. This is what teenagers face when they first try to get loans. So, although more than one-quarter of people surveyed assumed that having no debt means you’ll have a good credit score, that’s not necessarily true. It may be true, but it may not be. There are other factors to consider.

7. Your Credit Score is Not On Your Credit Report

More than three-quarters of people surveyed believed that if they ordered their credit report today, then they would see their credit score. They would be surprised once they got that report, then. Your credit score is based on the information in your credit report(s). However, you won’t find the score itself anywhere on your credit report. These are two related, but entirely separate, things. You can get your credit score from a variety of different places, often for free, but you can’t get it from your credit report.

How did you fare? Did you know the right answer to these seven credit score misconceptions?

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Don’t Use a Balance Transfer to Pay Off a Personal Loan: Here’s Why

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If you are struggling to pay off your debt, landing a lower interest rate on what you owe can make a big difference. Usually, balance transfer rates on credit cards can look very attractive. Plus, they might even be lower than what you have on your current personal loan. However, using a balance transfer to pay off a personal loan isn’t typically a great idea. There are risks with that approach, and terms might not remain favorable over time. If you are wondering why you shouldn’t use a balance transfer to pay off a personal loan, here’s a look at why it’s a bad idea.

That Introductory Rate Won’t Last Forever

In the vast majority of cases, balance transfer introductory interest rates don’t last indefinitely. You may have access to the promotional rate for just six months, 12 months, or 18 months, which isn’t a lot of time.

After the introductory balance transfer rate expires, you are stuck with the credit cards regularly interest rate, which is commonly much higher than the rate you’d have on a personal loan. The average credit card interest rate falls near 17 percent.

If your personal loan interest rate is lower than your credit card interest rate after the promotional rate expires, you could find yourself paying more in interest as you pay down the balance or hit with a higher payment down the road. Most credit card payments are a percentage of your balance along with the interest charges. When the interest rate kicks in, your monthly payment will almost certainly go up, and this can have a major impact on your budget.

By sticking with your personal loan, you get a level of predictability. Personal loans tend to have fixed payments over the life of the loan, so you know exactly what you’ll need to pay each month until the debt is gone. Plus, personal loans are finite. You know how many payments are left and when the last one happens, giving you a precise date as to when you’ll clear the debt.

Balance Transfer Fees

Balance transfers come with fees, usually 3 to 5 percent of the amount of the balance you are transferring. The exact amount varies from one bank or credit union to the next.

This fee isn’t spread out over time. Instead, it is added to the balance you owe the moment the balance transfer goes through. As a result, you significantly increase your debt immediately, and that isn’t always a smart move.

If you stick with your personal loan, you aren’t accruing any more debt. Any fees associated with the loan are already part of your balance, barring particular (and somewhat rare) exceptions, such as early payoff penalties that a limited number of lenders levy.

Credit Score Impact

Paying off a personal loan with a balance transfer impacts your credit score. First, once the balance transfer fee goes onto your account, your debt load increases. This can negatively affect your credit score.

Second, when you pay off the personal loan, that account usually closes. As a result, the average age of your credit accounts shifts. If the balance transfer credit card is a new account, your average account age will likely go down, negatively impacting your credit score.

Finally, moving a personal loan debt to a credit card also hurts your debt-to-credit ratio. That ratio is a reflection of the amount you owe on your credit cards as compared to your credit limit. The higher the percentage of your available credit limit that you use, the worst that ratio is in the eyes of the credit bureaus. As a result, your credit score can take a pretty big tumble depending on the amount of debt you transfer.

While the exact impact on your credit score will depend on your unique situation, it is important to understand that it could be both noticeable and negative. If you may need to open another credit account in the relatively near future, doing a balance transfer to pay off your personal loan could make that harder, not easier.

Qualifying Isn’t Always Easy

If you don’t have a balance transfer credit card and were considering opening one to address your personal loan debt, it’s essential to understand that this isn’t a guaranteed option. Many balance transfer cards require borrowers to have at least “good” credit, usually with scores of at least 680 or 700. Some won’t approve anyone with less than “excellent” credit scores, typically around 750 or higher.

Even if you can get a balance transfer card with fair credit, the terms usually don’t work in your favor. The promotional interest rate may only be available for six months. Plus, the credit card’s regular interest rate after that will apply, and it’s commonly pretty high.

Additionally, opening a new card also impacts your credit score. You’ll have a “hard pull” on your credit report (too many of which can hurt your score), a lower average account age, an adjustment to your total available credit, and more shifts that all cause your credit score to change.

Risky Move

Ultimately, using a balance transfer to pay off your personal loan can be a very risky move. Unless you can guarantee that you can pay off the entire balance (including the balance transfer fee) before the promotional rate expires, it typically isn’t worth pursuing. And, even then, there is always an impact on your credit report, and your score might go down. If you can’t ride out a period with a lower score, then this approach isn’t right for you even if you can pay off the balance during the promotional period.

Instead, do your best to pay off your personal loan quickly. If you aren’t dealing with a potential early payoff penalty, you can save yourself a ton by making additional payments and working diligently to rid yourself of that debt while leaving it where it is, all while preserving your credit score.

Have you ever used a balance transfer to pay off a personal loan? Do you think it was a mistake? Share your thoughts in the comments below.

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