Credit cards can be a good thing if you know how to use one.  These are ways that credit cards can make your life better:

1. Accumulate reward points for free merchandise.  Get a reward credit card and get free stuff.  Each time you use your credit card, you’ll accumulate points that can be redeemed for discounts on gas, movie tickets, restaurant gift cards, and more.

2. Buy Now, Pay Later.  Credit cards give you the option to make a purchase now and pay for it later.  This is a great benefit, especially for emergencies.

3. Accepted virtually everywhere.  Credit cards are generally accepted everywhere. This is great when you are running low on cash.

4. Easy to carry.  A credit card takes up less room than a wad of cash does.

5. Online shopping.  Pretty much the only way to buy things online is by using a credit card.  Your credit card comes in handy if you do a lot of online shopping and many offer a virtual credit card number to help protect your identity.

6. Build credit.  Using your credit card wisely is one of the best ways to build your credit.  This will show lenders how responsible you are and make them more willing to loan you money.

7. Teach responsibility.  Credit cards can teach you responsibility because you have to account for each purchase you make in order to stay out of debt.

8. Teach money management.  Credit cards are a great way to teach you how to handle your money.  You have to carefully budget your money and your purchases.

9. Variety of payment options.  Many times, you can chose different payment options.  You have the flexibility to chose your due date and payment amount.

10. Online monthly statements.  Most credit card companies offer an online program where you can view your credit card activity.  This helps manage credit card purchases tremendously.

11. Not having to carry cash.  Isn’t it a pain and a hassle to carry cash all of the time?  Credit cards make it so easy to swipe and sign.

12. Good customer service (most of the time).  You can’t call a customer service department if you have a question about the cash you carry.  You can, however, call in regards to your credit cards and credit account.

13. Earn cash back.  You can earn cash back through a percentage of your purchases.  This is a great way to combat rising inflation too.

14. Give you a buffer until payday.  Credit cards help get you through until payday, especially when unexpected circumstances arise.

15. Tool for tracking your expense.  It is so easy to track expenses and purchases now with different tools that the credit card companies offer.  Most companies have an online tracking system.  Many also offer a year-end statement that categorizes all of your purchases from the entire year.

These are just a few of the ways that credit cards can make your life better.  Credit cards can be an unmatched tool that can assist you on your quest for financial freedom.

Many people have a general idea of what to do if their credit card is stolen.  However, most people don’t realize that there is more to do when their card is taken.  It is important to have a good understanding of these steps so that you are prepared if this ever happens to you.

1. Be aware.  It is absolutely vital that you are aware of where your credit card is at all times.  Put it in the same place in your wallet after you use it and check that place often.  Being aware will help cut down the amount of time a thief has to use your card.

2. Call the credit card company immediately.  Federal law states that your maximum liability for unauthorized charges is $50.  If you call the credit card company before your card is used, you cannot be held responsible for any unauthorized charges.  If your cards are used before you report them missing, you can only be held accountable for $50 of their purchases.

3. Call the credit bureaus.  This is an absolutely necessary step.  Many people don’t think about calling each credit bureau after their card is stolen.  You have three bureaus to call: Experian, TransUnion and Equifax.  They will put a hold on your credit once the theft is reported.  This hold will help you clear any unauthorized charges much easier.

4. Law enforcement.  You should call the police as well.  Let them know all the details surrounding your loss.  If you can, get a statement in writing from them just in case.

5. Check and re-check.  You will need to double check your monthly statements carefully now.  If you notice an unauthorized charge, call your credit card company and make them aware of the situation.  You will also need to send them a detailed letter explaining your dispute so they have it in writing.  It is always best to send them documentation in writing, so that there can’t be any misunderstandings.  You will also want to carefully review your credit report for at least a year.  You won’t want anything creeping onto your credit report that may damage your credit identity.

Having your credit card stolen is a traumatizing experience.  Try to stay calm and remember these important steps.  You’ll want to review every statement, bill, or notice for several months following the loss.  You can help protect yourself from additional losses if you proactively prevent it.

As parents, we worry about our children all the time.  We worry about who and what they will become and about how they will handle responsibility.  It is so important that we teach our children how to manage money.  Start teaching them about money when they are young so they can get into good habits with their money. 

A recent survey showed how important it is that we teach our children about money.  Charles Schwab and Company recently published an online survey and the results are stunning.  Parents had taught their children to do laundry over 70 percent of the time.  When it came to balancing a checkbook, only 34 percent of parents had showed their children how.  Here are 10 ways to teach your child how to be responsible with money.

1. Discuss it.  Many times parents feel that it is better to protect their children from financial trouble.  If you aren’t honest with your child about your family finances, they won’t know how to handle their own finances one day.  It is important that they understand that you can get into financial trouble if you are careful.  Find the best time to discuss finances with your child, whether it is one-on-one or in a family setting (like the dinner table).

2.  Get an Account.  Open a savings account for your child as soon as you can.  If they are young, you can be on the account with them.  Take a field trip to the bank and help them understand how these savings accounts work.  Each time they deposit money into their account, they will see their money tree grow.

3. Don’t Spoil.  One of the biggest dis-services you can do for your child is to give them everything they want.  You need to set boundaries while they are still young, even toddler-aged.  It is important that they understand that they can’t have everything they want all of the time.  This principle will go a long way when they are older and will help them choose between needs and wants.

4. Chores.  Chores are a great way to teach your children how to work.  Try and reward your children in small ways to help them do their chores.  If they make their bed in the morning, give them a small treat.  They will begin to understand the importance of working hard.  As they get older, give them more responsibility with chores.  Be careful not to spoil them with treats or money, but teach them the value of work.

5. Keeping Up.  Your children watch every move you make.  If you are trying to keep up with the Joneses, STOP!  If you are spending money you don’t have, you are teaching your children it is OK to get into debt.  Stop caring what other people think and be responsible with your money so you can teach your children how to be responsible with theirs.

6. Pay bills.  Let your children help when you pay bills.  They will begin to understand that everything costs money.  If your child is old enough, help them write out the checks.  They will love the experience and learn a lot.

7. Credit Cards.  Add your child to your credit card while they are still young.  This doesn’t necessarily mean they need to use the credit card, but having their name in your account will build their credit.  Be careful with this one.  Make sure you are helping your child’s credit, not hurting it.  Only add them to your card if you have a credit score over 700.

8. How to Shop.  When you take your child shopping, go with a list and stick to that list.  Whether you are going to the grocery store or the clothing store, they will see that it takes discipline to stick to a budget and be responsible with money.

9. ATMs.  ATMs are dangerous to a young child.  To them, this money is magic.  If you use the ATM in front of them, help them understand where the money is coming from.

10. Don’t come to their rescue.  If you have taught your child how to be responsible with money, let them be on their own financially.  This only needs to happen when your child is old enough to make their own money and make good decisions about how to spend it.  If your child gets into trouble financially, be careful not to save them.  By doing this, you are only teaching them that they can come to you to bail them out at any time.  If they get into trouble, help them work out a plan to fix the problem.  Don’t fix it for them!

We all look forward to teaching our children good principles.  Make sure you teach your children how to manage money and be responsible with their decisions.

Credit cards are fast, easy to use and very convenient. They can be a lifesaver in an emergency too. But, it is also easy to breech the security measures that have been established to protect credit card users. Be careful and take the time to know where you are using your credit card. Make sure the following credit card security mishaps don’t happen to you.

1. Not signing your card. Your credit card comes with a blank strip on the back. Sign this card as soon as you get it. This helps merchants match the signature on your card with the receipt you sign at the store.

2. I.D. You should be required to show identification whenever you use your credit card. If the clerk forgets to ask, make sure you show them anyway. This will remind people to start asking to see I.D. I bet you’d want someone asking for I.D. if it isn’t you using your card.

3. Check your statements. Read over your credit card statement each month. Watch for unauthorized purchases. These can be a sign of either identity theft or a merchant mistake. Make sure you aren’t paying for anything you didn’t receive. You will be able to protect your identity and your finances quicker if you take a little time each month to review your bill.

4. Secure Sites. Whenever you use your credit card to pay a bill online or to buy something via the Internet, make sure you are using a secure website. There are several ways to tell if a site is secure. Check the URL. If the page is secure, the URL will read, https:…-note the extra “s” at the end. Also, check for the lock icon. This icon should be somewhere in the web browser. Internet Explorer tends to show the icon in the lower-left and Mozilla displays it in the lower-right corner. Take the time to check where your browser displays the secure icon.

5. Reports. The three major credit bureaus recommend that you check your credit report every three months. Try to at least check it once a year. Identity theft is common via credit cards. By checking your reports, you will be able to detect identity theft a lot faster.

6. Shred it. Do you ever get credit card offers in the mail? If you don’t want them, shred them. Anyone can fill the application out in your name and get a credit card mailed to their home. Don’t let someone get a credit card in your name just because you were careless with your trash.

7. Call them. If you lose your wallet, call your credit card companies immediately. Be sure your know where your cards are at all times. If they disappear, take action as soon as you realize they are missing.

Credit cards can really save your life, financially. But, they can cause you a lot of grief if you aren’t careful. Be responsible in using your cards and take the time to double check your credit report often.

Credit cards can be a very valuable tool. However, some people do not realize that using a credit card actually takes skill and practice. People are misusing credit cards everyday and this can turn out to be a very costly mistake. Review the following and make sure you are not making these costly credit card mistakes.

1. Too Many. A common misconception with credit cards is that the more you have, the better off you are. This is absolutely false. Be careful not to have too many cards. Not only is it worrisome for a lender, but you run the risk of reaching the maximum limits on all of your cards. This can quickly lead to serious financial trouble. Be careful to only have as many credit cards as you can handle. Two credit cards are usually sufficent for most people.

2. Cash Advances. What benefit does a cash advance serve? Not many. Surely there are other, safer, options if you are short on cash. Credit card companies charge a much higher interest rate for cash advances. They also send you checks in the mail to lure you into taking these risky advance loans. Be careful not to fall into the trap of cash advances.

3. Medical Bills. We all know how quickly medical bills can pile up. Using your credit card to pay these bills should not be an option. Unless you have the money to pay it off at the end of the month, paying medical bills with your plastic can be costly. Hospitals and medical providers have payment plans available that can be used at a lower interest rate. Try not to even mix your credit card with medical bills; it will save you more money in the long run.

4. Everyday Items. Your Visa or MasterCard should not be used to purchase everyday items. Often times, these inexpensive items end up costly 3 or 4 (or more) times what they normally do if you don’t pay off the balance at the end of the month. People get into credit card trouble when they keep spending and spending and spending using their credit card. Instead of sticking to a budget and paying off the items at the end of the month, the balance often rolls over to the next month and you keep paying interest. If you do use your credit card for everyday purchases, make sure you know how much you have to spend and pay it off before the balance is due.

5. Minimum Payment. Paying only the minimum payment can also keep you a slave to your credit card. It is so important to not only pay the minimum payment, but to pay the entire balance. As you do this, your credit will increase and you will be able to handle your credit card finances in a responsible manner.

6. Not Shopping Around. Shop around for the best interest rates when looking for a credit card. You may find the perfect card with the perfect perks, and not even realize you will be paying 21% interest. It may be better in the long run to get a credit card without as many “benefits” and a lower interest rate. If you pay off your balance every month, the interest rate will hardly affect you. But, be careful because unexpected circumstances can always arise and you would hate to be paying triple the interest for several months.

7. Fine Print. The fine print that is most often over looked is actually your contract with the credit card companies. In this detail, you will find the answers to all of the questions you may have for your provider. Make sure you read over every tiny detail to prevent headaches further down the road.

8. Late fees. NEVER pay a credit card late fee. If you need to take an extra 15 minutes and write your due date down on every piece of paper you own, do it. Late fees can be as high as $30. This means that that $15 pair of socks you bought could end up costing you almost $50. Make sure you know the due date of your payments and even pay it a couple of days early, just in case.

9. Monthly Statements. It is easy to just look at the balance when you get your monthly credit card statement. Get into the habit of looking over your entire statement. If you see a problem, call your provider immediately, as well as send in written communication. Make sure you aren’t paying for any item or service you didn’t receive.

10. Credit. Good credit card practices equate to a good credit. Having a good credit is one of the most important things you can do for financial freedom. Make sure that it is important to you to have good credit. Valuing your credit will keep you away from credit card dangers.

These are just ten of the costliest credit card mistakes ever made. Be sure you know exactly what is going on with your credit card and especially, with your credit. Be an informed and knowledgeable consumer and you will be farther ahead in the long run.