You open the mailbox and find envelopes containing credit card offers on a regular basis.  Some tout no annual fee, others a "low introductory APR', still others offer rewards and benefits that make them sound like a great deal...but are they?

Fees
Just like many other things in life, these offers look great on the surface, but if you read the fine print, you may find that the deals are not that great after all. For instance, some card issuers who say "no annual fee" may charge other fees instead. "Acceptance fees", "activation fees", "participation fees" and "monthly maintenance fees" are all the same things, called by a different name. Any of these simply amount to fees that you pay, either monthly or yearly, for the "privilege" of carrying that card. These fees are charged to your account so not only do you pay the fees, but you pay interest on them and they affect your available balance. Some offers targeting consumers with problematic credit histories may offer a $150 credit limit and charge a $100 fee as soon as the account is opened. If a card offer does include a relatively small annual fee, weigh that against the interest rate. If you carry a large balance, a $59 annual fee isn't much if it saves you hundreds of dollars in interest by accompanying a low interest rate.

Other fees charged by credit card issuers include late payment fees and over-the-limit fees. None of us ever intend to make a late payment...but things can happen. If you have a great offer, but it includes a high late payment fee, consider enrolling in automatic payments, if they are offered. You can choose to pay the minimum payment every month automatically and if you happen to be able to pay a little more from time to time, you can simply send an extra payment or log into the system before the payment is sent and increase the payment amount. Look out for over-the-limit fees, as well. Always know your balance and be sure that you take into consideration any automatic charges or charges that may not have been posted to the account before you make a purchase that will put you close to exceeding your credit limit.

APR (Annual Percentage Rate)
Simply put, this is an expression of the cost of using the credit card. While all cards will tell you the APR for their offer, they must also tell you the "periodic rate" which is the actual rate used to calculate the interest charged to your account each period.

Many cards will have a low introductory APR, which makes them attractive to consumers...but beware, the introductory APR will eventually expire and your rate will go back to their regular rate for cardholders. Unless you pay the "balance shuffle" and continually transfer balances from one low introductory rate card to another, be sure that the regular rate is a fair rate for the card. Also watch out for different rates on cash advances and balance transfers as some card issuers charge a premium for those types of usage.

Grace Period
Some card issuers let you avoid finance charges altogether if you pay your balance in full by the due date each month. If there is no grace period, interest is charged from the time the purchase is made. For those who use cards for convenience, and are able to pay the full balance each month, a grace period can help avoid finance charges completely.

Other Considerations
The items discussed here are the obvious considerations for those shopping for a credit card. However, there are a few less obvious things that should also be considered:

• Credit limit - is the limit high enough to justify the addition of a monthly payment into your budget?
• How widely is the card accepted? - Visa is the most widely accepted, according to Cardweb, followed by MasterCard, American Express and Discover. Consider how you plan to use your card and whether the possibly of the card not being accepted by a merchant will be a huge inconvenience. For instance, some families have one credit card that they use for a yearly vacation. If one of the major expenses of the trip could not be paid with that card because it wasn't accepted by the merchant, the vacation could potentially have to be cut short or cancelled.
• Rewards programs - Many cards offer special incentives such as airline miles, travel rewards, cash rebates and other special offers to make them more attractive to card users. Be sure to consider those reward programs and which of them would benefit you most when choosing a card.



Credit cards offer many benefits and conveniences. From the family who needs to make a major purchase, but doesn't have the cash available to do it to those who just want to use the card for their everyday purchases and pay a bill once a month, there are advantages and benefits for each individual case. The best way to choose the right card for you is to educate yourself on all the items to be considered and weigh all the options to determine which is the best fit for your own personal situation.





Shopping online...how secure is it?



With the increase in interactive and social networking sites, online shopping has become much more fun.  Just take a look at Kaboodle...you can shop with your friends while sitting in your living room in your fuzzy slippers.  With fuel prices rising and the fact that there are never enough hours in the day, the appeal of shopping online is becoming greater every day.  Here are a few tips to protect yourself if you shop online:




Security Matters
Look for security seals and secure URLs to ensure that your information is protected when you shop.  The padlock that appears in the bottom right of your browser window is also a good indication.  If the padlock is open, the information you are entering and potentially sending over the internet is not encrypted.  If the padlock is closed, your information should be safe.  Additionally, many sites carry a seal from security providers like VeriSign, which tells you that the site has a security certificate in place.  If you ever doubt the credibility of the security provider, clicking on the seal should give you more information.  Lastly, check the URL.  Secure URLs begin with https://, not http://, so anytime you are providing sensitive information, be sure you see the https:// in the address bar of your browser.




Privacy Policy
It's also a good idea to review a company's privacy policy before providing them with personal information.  One of the top concerns of people shopping online is the sale of their contact information to a third party.  The privacy policy will tell you whether this is a practice that the site you are visiting participates in.  It may also tell you what type of information they keep and what what they do with it.  It may also tell you what steps are being taken to protect your information and offer ways for you to have your information changed or deleted entirely from the database.




When in doubt...
Does the website offer items at prices that seem too good to be true?  If so, it's quite possible that they are.  If you are shopping with a new and unfamiliar company or haven't been referred by a friend who has purchased from a website before, do your homework.  Google the company name with "reviews" or "complaints" behind it and see what you find.  These days, it's not difficult to place a rip-off report or complaint online and you can use this to check out any merchant you are unsure of.  Do your homework before making a purchase, particularly a large one such as electronics.  Find out what the return policy is and how accessible their customer service department is.  If you do have a problem with an item or order, you want to be able to easily contact the merchant to resolve your issue so a site that has a phone number under their contact information is a better bet than one who only provides an e-mail address.




How should I pay?
Credit cards offer the greatest level of protection for a buyer making a purchase online because credit card purchases offer the consumer protection under the federal Fair Credit Billing Act.  This offers you protection by allowing you to dispute purchases on your card and withhold payment while the investigation is pending.  If it is determined that the disputed charge was indeed a fraudulent purchase, you will only be responsible for the first $50 of the purchase and even this charge is rarely collected because in most cases, it is waived by the merchant.




While debit cards are just as convenient for making online purchases, they do not offer the same level of protection and can expose your checking account information to thieves.  The best practice is to have one credit card designated for online purchases and use it exclusively.  Not only does this keep all of your other cards protected, it makes it easier to spot a fraudulent purchase since online purchases should only be showing up on one statement every month.  Some card issuers offer even more protection for online purchases.  MasterCard offers the SecureCode® system, which is basically the equivalent of a PIN used strictly for online purchases.  Some other issuers offer one time use numbers which eliminate the possibly of your card number being used for a fraudulent purchase.  Both Discover and Citibank offer this service.




Shopping online can be convenient, time saving, money saving and even fun, but you must take the necessary steps to protect your privacy and security.  For even more information on protecting your security and privacy online, visit these sites:




OnGuardOnline - a site with suggestions from the FTC and other federal agencies as well as experts in the technology industry, that help you to protect your privacy and security online.




Better Business Bureau - You can research online merchants and submit complaints of bad online shopping experiences here.




LooksTooGoodToBeTrue - A site developed by a federal law enforcement and industry task force aimed at helping internet consumers spot fraudulent schemes.





6 Ways To Improve Your Credit Score



Your credit score can affect your ability to obtain a loan. If you don’t know your score, you can find out by accessing your annual credit report online at www.annualcreditreport.com. The service is free as long as you live in the United States. If you aren’t happy with score you see, there are 6 simple steps you can take to improve your credit score.




1. Verify All Information
The first thing you should do is verify that the information contained in your credit report is accurate. One simple mistake could cause a major dip in your score. Try obtaining a report from several of the larger agencies and reviewing the information on a regular basis. Try to do this at least four times a year. This is becoming increasingly more important given the increase in identify theft.




2. Lower Your Balance
It’s important to know your debt-to-credit ratio and the exact total of your outstanding debt at any given time. This will help you control your spending and make sure you don’t fall into debt. If you can lower your credit card balance, you will gain points and boost your credit card score. This is especially important if you’re approaching the maximum limit for any of your cards.




You should never max your credit card limits unless absolutely necessary. In fact, the ideal ratio is to stay within 40% of your limit for each credit card. Spread your debt among more than one card can improve your credit card score. Your outstanding debt forms 30% of your total score, and it increases to 65% when combined with your payment history. Therefore, focus on paying off your debt rather than continuously transferring it from one card to another. If you continue to close one account and transfer the balance to a new one, you will increase your debt ratio.




3. Pay Promptly
One of the best ways to repair a damaged credit score is to begin paying your minimum balance every time it’s due. Your payment history forms 35% of your credit score so you need to pay on time to develop a positive payment history. All information, including any late payments, will remain on your credit report for 7 years. However, even if you have suffered previous credit problems, you may be able to improve your score. Start by maintaining a healthy payment history for at least one full year. Although the reporting limit is 7 years, lawsuits can be filed against you and collectors may attempt to collect any money owed well past that period. Therefore, it’s never too early to start making regular, on-time payments.




4. Shop Around
Don’t be afraid to compare rates offered by different lenders before applying for a credit card or a loan of any type. Lenders will investigate your credit history as soon as you make an application. Therefore, you don’t want to hurt your credit score by instigating unnecessary inquiries. If you apply for auto or mortgage loans within a 45-day period, they will only count as one inquiry concerning your credit score. Credit inquires aren’t nearly as important as your payment history, but they may still affect your overall score. Focusing on paying your balances on time is the most important way to improve your score.




5. Prepare For the Long-Term
The length of time you have held a credit relationship makes up 15% of your credit score. Therefore, don’t close out any old accounts or open any new ones right before applying for a personal loan that requires a high score. Doing so can have a negative impact on your credit score. Try to close existing accounts at staggered time periods throughout the year instead of all at once.




6. Remember Two Is Better Than One
Having more than one credit card can help you establish a positive credit history, but you don’t want to apply for too many cards; two should be sufficient. Make sure you pay off any outstanding balances as quickly as possible because you never know when you may be faced with an unexpected emergency that requires quick cash. You should also have a savings account in case you need additional money.



Visit the USCreditDepot.com blog for more helpful tips on managing your credit and financial matters.