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Credit Cards

What Makes Petal Card Great For New Immigrants?

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As a new immigrant, you are usually contending with at least one major hurdle when it comes to getting credit. It is normal for those first arriving in the United States to have absolutely no credit history with the American credit bureaus. Without a credit history, many lenders will be hesitant to give you a card even if you have a decent income. Luckily, the Petal Card is different.  It’s a pretty solid option for immigrants or anyone with no existing credit history. Here’s a look at what the Petal Visa Card has to offer.

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Top 3 Questions About Surge Mastercard

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If you have bad credit or very little credit history, your credit card options are usually fairly limited. This is especially true if you are looking for an unsecured card, as a poor credit score often makes that incredibly difficult to find. However, the Surge Mastercard is one of the few options that may allow you to get an unsecured credit card even if your credit history has quite a few blemishes or doesn’t have much history built up.

Plus, the card reports to all three major credit bureaus, allowing good behavior with the lender to positively impact your credit score across the board. But, before you apply, you would probably like a few questions answered. Here’s a look at the top three questions about the Surge Mastercard and their off-putting answers.

1. What is the Surge Mastercard Interest Rate?

The Surge Mastercard is considered a starter card or a card for people with poor credit. It isn’t uncommon for cards in this category to have interest rates that are higher than the average, which was just over 15 percent for Q3 2019.

However, the Surge Mastercard interest rate is actually pretty high for even the starter category. It is set at a variable 29.99 annual percentage rate (APR) for purchases. If you carry a balance, what you owe can grow quickly, particularly if you only make the minimum payment on your card.

On a good note, you do have a 25-day grace period after the closing of your previous billing cycle. If you are able to completely pay off the statement balance during that time, you can avoid interest charges on the new purchases. But missing that window will cost you big time.

2. Is There an Annual Fee?

Yes, the Surge Mastercard has an annual fee, and it is painfully high. Also, the fee applies to both secured and unsecured versions of the card, so you can’t avoid it by putting down a deposit and going the secured route. Essentially, the yearly fee is unavoidable.

For the first year, the annual fee comes in at a shocking $125. That’s an astonishing 25 percent of the card’s initial limit. To make matters worse, the first year’s fee is assessed right when you start using the card. That means your $500 credit limit Surge Mastercard is technically only a $375 credit limit card when it first ends up in your hands, as $125 of the available credit is used to cover that fee. You will also be charged interest on that $125 if you don’t pay it off immediately.

After the first year, the annual fee does go down, but it’s still incredibly high for a non-reward, credit-building card. Every year after, the yearly fee is $96. Like the first-year fee, you also owe interest on the $96 if you don’t pay it off right away. However, that $96 (and any accruing interest) is not the only cost you’ll have to contend with if you choose the Surge Mastercard.

3. Are There Any Additional Costs?

Yes, along with the annual fee, after the first year, you also have to pay a monthly maintenance fee. Every month, cardholders are charged $10 for maintenance on top of any interest they accrue. That means an additional $120 per year in fees regardless of whether you carry a balance. In total, in the second year and beyond of having the card, you’ll pay a gut-wrenching $216 in fees. Considering the initial credit limit is $500 (which may be raised after you have the card for 12 months, but that isn’t guaranteed), the percentage of your available credit that might get sucked up in fees is pretty horrifying.

If that $10 isn’t paid off immediately each month, like the rest of the balance, interest accrues on that as well. This can drive your balance up quickly.

For cardholders who want to add an authorized user to their Surge Mastercard account. There’s another one-time fee to do that. It will cost you $30 to list anyone else as an authorized user, and that’s a pretty big fee for that kind of activity.

As for other costs, if you opt for a cash advance, you’ll get stuck with a 5 percent fee for that along with the variable 29.99 percent APR. If you’re late making a payment. Your late fee can be up to $39. There’s also a foreign transaction fee of 3 percent. Although, that actually isn’t out of the ordinary for cards at this level.

Build Your Credit History

Ultimately, the Surge Mastercard could allow people with little or poor credit to build a better credit history and raise their score. However, there are better options out there. To include those who may approve poor or no credit borrowers and don’t charge such painfully high fees. In all reality, the Surge Mastercard should be considered a last resort in most cases. Especially since there is no guarantee you’ll be approved for an unsecured card. The fees are ridiculous for a starter card and interest rate is astronomically high.

 

Are there other questions you ask when you are considering a new card like the Surge Mastercard? Are there certain answers you consider deal breakers? Share your thoughts in the comments below.

 

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Savings tip: Saving Money On Credit Cards

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In the United States, household debt has been on the rise. In total, about $870 billion is owed on credit cards alone. Among Americans with credit cards, 55 percent say they are carrying debt. As a result, finding ways to save money on credit cards is a priority for many. If you would like to learn how to save money on credit cards, here are some tips for saving money on credit cards.

Skip Cash Advances

On most cards, cash advances come with higher interest rates than those used for normal charges. Additionally, many cash advances don’t come with grace periods before interest starts accruing, meaning that withdrawal starts costing you immediately.

Don’t Pay for Credit Card Protection

Most credit card protection services are unnecessary. Under federal law, you are already pretty safe from fraudulent charges, as your maximum liability is only $50. Plus, these services can cost a ton, adding to your credit card balance each and every month for something that doesn’t tend to provide much, if any, benefit.

Look for No-Fee Credit Cards

Annual fees can get expensive, so it’s usually best to avoid cards that charge them. If you have a card with an annual fee and have been a customer in good standing for some time, call the issuer and see if the company will waive it. Most will if you have a strong history with the issuer.

When looking for new cards, skip any that charge annual fees. If you don’t, you get stuck paying that cost every year, even if you don’t carry a balance. Considering some annual fees are over $100, that’s a lot of money going out the door each year.

Ask for a Lower Interest Rate

If your credit score has gone up since you opened the card, your account is in good standing, and you aren’t getting the lowest available rate right now, consider contacting your issuer. Many will reduce your interest rate, but you have to call and request the reduction.

However, only do this if you are reasonably sure you qualify for a better rate. Your issuer might have to perform a hard pull on your credit report, which impacts your score, so you don’t want to go through the process if there isn’t a decent chance you are eligible for a reduction.

Watch Out for Balance Transfer Fees

Transferring your credit card balance to a lower rate card can be a smart move. However, many issuers charge a fee to transfer a balance, with a 3 percent fee being fairly common. Make sure that you’ll save more in interest than you’ll pay in the fee. If you won’t, don’t do the transfer.

Set Up Automatic Payments

Missing a credit card payment can hurt your credit score and may trigger a penalty interest rate, late fee, or both. By setting up an automatic payment, your payment will always be on time as long as you have a bank balance to support it.

Be Skeptical of All Unsolicited Offers

Any credit card or debt-related offer that arrives without you requesting it should make you skeptical. A “pre-approved” credit card offer that requires an upfront payment should always be avoided. Additionally, even if there is no payment required and the company is legitimate, there is no guarantee you’ll get the low rate they are offering or that you’ll be approved at all. If you move forward, you’ll likely end up with a hard pull on your credit, and that can damage your score even if you are rejected. Plus, even if you’re approved, you could get an interest rate or terms that are nowhere near as favorable as the offer initially suggested.

Many debt reduction companies aren’t entirely scrupulous, often preying on those who are in financial trouble to turn a profit. Some are outright scams, while others come with fee structures that can quickly make a debt problem worse. If you need help, make sure to look for a reputable credit counseling agency on your own instead of turning to an unsolicited offer on a whim.

 

Do you have any savings tips that can help people save money on credit cards? Share your thoughts in the comments below.

 

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

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

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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