Should You Steer Clear of Bitcoin?

Bitcoin, the trendy digital currency, garnered some negative press in August when the U.S. Consumer Financial Protection Bureau warned about its potential pitfalls, like unpredictable exchange rates, hackers and scams.

Despite these concerns, the consumer bureau was quick to add that virtual currencies like bitcoin “offer the potential for innovation,” something that has captured the attention of casual consumers and big hedge funds alike.

Before dipping your toes into bitcoin’s often choppy waters, you should know that this particular form of digital money represents quite a double-edged sword. While some financial experts question its viability and safety, others are adamant that bitcoin is here to stay.

Here’s a look at how this disruptive technology works and what you risk losing – or stand to gain – by using it.

What is bitcoin?

If you’ve heard of bitcoin but haven’t actually seen any, it’s because the cybercurrency exists exclusively online. Some enterprises and individuals “mine” bitcoins using sophisticated computers to wring them out of a digital file called the blockchain. The process is complex and expensive, and there are easier ways to obtain the scrip. The system used to create bitcoin also caps the number that can exist at just under 21 million, easing inflation concerns among users and investors.

You can stash bitcoins away in a digital wallet before transferring a sum directly to another user or to a merchant that accepts them. Due to the lack of a middleman such as a bank, transaction fees are typically much lower, which is among the online scrip’s most attractive features.

People interested in converting cash to bitcoins can do so on “bitcoin exchanges,” where they can buy the virtual currency. Despite being relatively new, the number of exchanges is growing rapidly. Entire websites have made it their mission to direct users to the safest and most reliable online exchanges.

As straightforward and user-friendly as this currency might sound, it has several notable drawbacks.

Bitcoin’s unpredictability

“The value of a bitcoin can fluctuate extraordinarily due to high volatility,” says Evan Hutchinson, a business consultant in Ames, Iowa. “Also, due to the large number of exchanges in the world with relatively little oversight, bitcoins are at risk of being lost or stolen.”

Volatility depicts how much the value of an asset changes over time. When looking at a bitcoin price chart, you might think you’re looking at a seismogram from a strong earthquake. This virtual currency has been known to lose as much as 80% of its value in a matter of days, only to spring back quickly. For people who make purchases with the digital money, checkout time can be a shocking experience.

“Those who choose to use bitcoin with little understanding of how the currency actually works can be in for a big surprise when they try and exchange the money back into local currency or use it to buy a product,” Hutchinson says. A Federal Reserve study cites the “extreme volatility of bitcoin’s price,” which creates significant exchange-rate risk.

While the ever-fluctuating value of the bitcoin has scared many people away, optimistic investors cling to the idea that the digital money will ultimately find its footing. Their hope is that the technology behind bitcoin will be fortified, making it safer to own and use, ultimately broadening its user base and improving its stability and long-term viability.

“While reasons differ, I find many early adopters use bitcoin because they believe in the revolutionary nature of the underlying technology that makes bitcoin possible,” says Scott Nichols, founder of Paybits, a Las Vegas-based company that helps people convert a portion of their income directly to bitcoin.

The ease of making transactions is another draw for bitcoin believers.

“What other currency can you send money so quickly and cheaply over the Internet and across borders?” asks Michael Flaxman, an avid bitcoin user and chief executive of CoinSafe, a Seattle-based online service that helps merchants buy and sell the scrip.

Indeed, while you might have to pay upwards of $45 every time you send money overseas using a traditional bank’s wire service, many bitcoin exchanges offer similar transfers at a much lower cost, and direct transactions can be virtually free.

Flaxman isn’t alone in his enthusiasm: It’s estimated that over 5 million people currently use bitcoin, up from about 750,000 only a year ago.

Drawing the wrong crowd

Unfortunately, a fraction of those users engage in criminal transactions, and some may be intent on stealing bitcoins. Just last year, the world’s then-largest exchange for the virtual currency, Tokyo-based Mt. Gox, collapsed after hundreds of thousands of bitcoins went missing, sticking customers with millions in losses.

Despite the relentless hype surrounding the “revolutionary nature” of bitcoin’s technology, it is still a very vulnerable system. Because you can exchange bitcoins relatively anonymously, the digital currency has attracted hackers who prey on exchanges that store large bitcoin reserves. It has been popular among those engaged in illicit commerce, too – transactions on the shuttered online black market Silk Road took place exclusively with bitcoin.

Although records of every transaction using the cryptocurrency are permanently stored on a shared public transaction register, it’s difficult to track down bitcoin thieves. The lack of government support certainly doesn’t help.

Bottom line

Because bitcoin isn’t backed by the U.S. government or any of the world’s central banks, it’s lightly regulated, if at all. What’s more, any bitcoins you store in a digital wallet are uninsured, meaning you’ll probably eat any losses, regardless of how they occur.

Interestingly enough, the risks and lack of government backing haven’t scared off everyone. According to Nichols, bitcoin’s independence may be one its biggest draws.

“The exact warning from CFPB that bitcoin is not backed by a central government is exactly the reason many use bitcoin today,” Nichols says, referring to the U.S. consumer agency.

While the lack of official oversight attracts users eager to make transactions outside of the regulatory eye, many are reluctant to embrace this new technology.

As with any decision involving your hard-earned dollars, you should think long and hard about the risks that come with an erratic online currency like bitcoin. In the end, any gains may be vastly outweighed by the pain of losses.

This article originally appeared on US News [http://ift.tt/1tUjm9l].

Bitcoin image via Shutterstock

Source Article http://ift.tt/1y39EC7

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Should You Steer Clear of Bitcoin?

Bitcoin, the trendy digital currency, garnered some negative press in August when the U.S. Consumer Financial Protection Bureau warned about its potential pitfalls, like unpredictable exchange rates, hackers and scams.

Despite these concerns, the consumer bureau was quick to add that virtual currencies like bitcoin “offer the potential for innovation,” something that has captured the attention of casual consumers and big hedge funds alike.

Before dipping your toes into bitcoin’s often choppy waters, you should know that this particular form of digital money represents quite a double-edged sword. While some financial experts question its viability and safety, others are adamant that bitcoin is here to stay.

Here’s a look at how this disruptive technology works and what you risk losing – or stand to gain – by using it.

What is bitcoin?

If you’ve heard of bitcoin but haven’t actually seen any, it’s because the cybercurrency exists exclusively online. Some enterprises and individuals “mine” bitcoins using sophisticated computers to wring them out of a digital file called the blockchain. The process is complex and expensive, and there are easier ways to obtain the scrip. The system used to create bitcoin also caps the number that can exist at just under 21 million, easing inflation concerns among users and investors.

You can stash bitcoins away in a digital wallet before transferring a sum directly to another user or to a merchant that accepts them. Due to the lack of a middleman such as a bank, transaction fees are typically much lower, which is among the online scrip’s most attractive features.

People interested in converting cash to bitcoins can do so on “bitcoin exchanges,” where they can buy the virtual currency. Despite being relatively new, the number of exchanges is growing rapidly. Entire websites have made it their mission to direct users to the safest and most reliable online exchanges.

As straightforward and user-friendly as this currency might sound, it has several notable drawbacks.

Bitcoin’s unpredictability

“The value of a bitcoin can fluctuate extraordinarily due to high volatility,” says Evan Hutchinson, a business consultant in Ames, Iowa. “Also, due to the large number of exchanges in the world with relatively little oversight, bitcoins are at risk of being lost or stolen.”

Volatility depicts how much the value of an asset changes over time. When looking at a bitcoin price chart, you might think you’re looking at a seismogram from a strong earthquake. This virtual currency has been known to lose as much as 80% of its value in a matter of days, only to spring back quickly. For people who make purchases with the digital money, checkout time can be a shocking experience.

“Those who choose to use bitcoin with little understanding of how the currency actually works can be in for a big surprise when they try and exchange the money back into local currency or use it to buy a product,” Hutchinson says. A Federal Reserve study cites the “extreme volatility of bitcoin’s price,” which creates significant exchange-rate risk.

While the ever-fluctuating value of the bitcoin has scared many people away, optimistic investors cling to the idea that the digital money will ultimately find its footing. Their hope is that the technology behind bitcoin will be fortified, making it safer to own and use, ultimately broadening its user base and improving its stability and long-term viability.

“While reasons differ, I find many early adopters use bitcoin because they believe in the revolutionary nature of the underlying technology that makes bitcoin possible,” says Scott Nichols, founder of Paybits, a Las Vegas-based company that helps people convert a portion of their income directly to bitcoin.

The ease of making transactions is another draw for bitcoin believers.

“What other currency can you send money so quickly and cheaply over the Internet and across borders?” asks Michael Flaxman, an avid bitcoin user and chief executive of CoinSafe, a Seattle-based online service that helps merchants buy and sell the scrip.

Indeed, while you might have to pay upwards of $45 every time you send money overseas using a traditional bank’s wire service, many bitcoin exchanges offer similar transfers at a much lower cost, and direct transactions can be virtually free.

Flaxman isn’t alone in his enthusiasm: It’s estimated that over 5 million people currently use bitcoin, up from about 750,000 only a year ago.

Drawing the wrong crowd

Unfortunately, a fraction of those users engage in criminal transactions, and some may be intent on stealing bitcoins. Just last year, the world’s then-largest exchange for the virtual currency, Tokyo-based Mt. Gox, collapsed after hundreds of thousands of bitcoins went missing, sticking customers with millions in losses.

Despite the relentless hype surrounding the “revolutionary nature” of bitcoin’s technology, it is still a very vulnerable system. Because you can exchange bitcoins relatively anonymously, the digital currency has attracted hackers who prey on exchanges that store large bitcoin reserves. It has been popular among those engaged in illicit commerce, too – transactions on the shuttered online black market Silk Road took place exclusively with bitcoin.

Although records of every transaction using the cryptocurrency are permanently stored on a shared public transaction register, it’s difficult to track down bitcoin thieves. The lack of government support certainly doesn’t help.

Bottom line

Because bitcoin isn’t backed by the U.S. government or any of the world’s central banks, it’s lightly regulated, if at all. What’s more, any bitcoins you store in a digital wallet are uninsured, meaning you’ll probably eat any losses, regardless of how they occur.

Interestingly enough, the risks and lack of government backing haven’t scared off everyone. According to Nichols, bitcoin’s independence may be one its biggest draws.

“The exact warning from CFPB that bitcoin is not backed by a central government is exactly the reason many use bitcoin today,” Nichols says, referring to the U.S. consumer agency.

While the lack of official oversight attracts users eager to make transactions outside of the regulatory eye, many are reluctant to embrace this new technology.

As with any decision involving your hard-earned dollars, you should think long and hard about the risks that come with an erratic online currency like bitcoin. In the end, any gains may be vastly outweighed by the pain of losses.

This article originally appeared on US News [http://bit.ly/1vstAhD].

Bitcoin image via Shutterstock

Source Article :http://bit.ly/1rzrav6

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get verifed your paypal NOW

Do you really want to know How to get a free Payoneer MasterCard in Bangladesh or Pakistan? Yes that’s right it’s FREE! You can receive a mastercard sent to you directly through postal mail, absolutely free! This is one of finest ways to receive your online earnings in hand.

Free MasterCard in Bangladesh, Pakistan or any country

This offer is available exclusively for users in 200 countries. If you are outside of Bangladesh or Pakistan, you can still apply for this free mastercard.

You wont need a bank account in order to have a free master card.

You will not need credit statement to get a mastercard.

You can use this master card to do online shopping, buy laptops, gadgets, pay online bills, buy domains and use paypal.

You can use this free mastercard to get your funds from a local ATM. Yes Dutch Bangla bank, Janata Bank Q-cash, Standard Chartred ATMs are available too!

You can use this mastercard card in foreign countries.

You can use this mastercard in shopping malls.

Sign up for the payoneer mastercard

The first step for you to get a free mastercard is to follow this link and click sign up!

CLICK HERE -----> Sign Up For MasterCard Payoneer

The good news is that after writing this review, Payoneer Inc contacted me and they created a special promotion where you can sign up and receive a free $25 bonus. Please use this link to sign up and receive $25 when you activate your card.

Now you have to submit your details, on the first step of the order process, add your first name, last name, email address and date of birth and click NEXT:

Select your country from the drop down list. You have option to select Bangladesh or Pakistan. Unfortunately Payoneer MasterCard has stopped working on India. Select your country, add your address (where this card will be mailed to you), enter your phone number and click NEXT:

In step 3 of the order process you have to specify a password and a security question and answer. Please write down the information you have submitted, click NEXT:

In step number 4 you will be asked to submit verification documents. You have the choice to use national ID, passport or driving license. You can use the Govt Voter ID of Bangladesh or your national ID card in Pakistan to sign up. If you have a passport you can use that too.

If you do not have any of them, say you are a minor and have no voter ID, then ask your parents to use their information. For this go back to step one as you will need to use your parent name and details.

Now check all the terms and click FINISH:

You should now receive a message or email of your submission.

Receive & activate your free mastercard

You will receive your payoneer mastercard within 30 days. In Bangladesh it took me roughly 30 days to receive. Some people got it even early within few weeks. I guess in Pakistan, the process is similar.

After you receive your card, log in to your payoneer account and add the digits you see in your card. Add the pin number you want. After that your mastercard will be activated!

Depending on your location it may take 2-4 weeks to receive this card. This will be from a standard postal mail.

Fees?

Although applying and receiving this payoneer mastercard is free of charge, there are some fees associated to maintain this card. So I highly suggest you start working on a marketplace, earn some money to use this card: (click on the image to zoom)

Loading money to your card

I have seen an issue recently that when you get your card first you cannot load money using another card. They require that you load your card from sites like odesk/elance first. I don’t know why they did this thing so before ordering this card make sure you are working on any of these marketplaces and have at least $100 to load.

You can sign up for odesk (a freelance marketplace) and use this as a payment method. From odesk just go to the payment methods and activate the payoneer option. When they ask to sign up for a card, just click that you already have a card and link it.

This card also has the US payment option available.

Basically US payment service is a virtual US bank account. You can use this with Commission Junction to accept ACH/Wire transfers and you can also use it on paypal. 

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Best Apps to Find Free ATMs Near College Campuses

When you’re at college, chances are you need some cash from time to time. While schools all have automated teller machines on campus, they may come with hefty surcharges for withdrawals.

When you use an ATM, your bank may charge a fee if the machine is not in its network, and in such cases the owner of the ATM may slap on still another fee. Even if some banks don’t impose this sort of charge, the ATM operator probably will. Usually the cost runs around $2 per transaction, depending on the owner and location.

To avoid racking up fees every time you need a quick $20, consult your smartphone. There are several apps you can download to help find surcharge-free ATMs on or near your campus.

You’ll want to first look for apps offered by your bank. Many, including JPMorgan Chase and Wells Fargo, offer geo-locators to help you find ATMs that are free for depositors in branches or at stand-alone locations. If those are out of range or inconvenient, try these free apps to find surcharge-free ATMs closer to campus.

Allpoint

The Allpoint mobile app enables you to find more than 43,000 surcharge-free ATMs in the U.S., and another 12,000 around the world. You can search according to where you are, or by city and state or ZIP code. The application will deliver a list or a Google Maps view of the closest locations. When you select one, you can get step-by-step directions or connect to your preferred mobile navigation app to guide you to the machine.

One out of 12 ATMs in the U.S. are in Allpoint’s network, the company says. However, you must be a cardholder of a participating financial institution to get surcharge-free access to these machines. You can check with your bank, or email info@allpointnetwork.com to find out if it’s in the network before using the search app, which is available from the iTunes App Store, Google Play and Windows Store.

MoneyPass

The MoneyPass mobile app includes a locator to help you find one of more than 24,000 surcharge-free ATMs nationwide. It can search by address, ZIP code or your location. The app will connect you to a Google map as well as a list of nearby MoneyPass machines, giving you options to choose from, and then it’ll direct you to your chosen location.

In order to gain surcharge-free access, your financial institution must be part of the MoneyPass ATM Network, which includes over 1,600 organizations. The company says more than 75 million cards will work, charge-free. Typically you’ll have a MoneyPass logo on your plastic to indicate that the issuing bank participates. If it’s not there, contact your branch to find out if you can withdraw surcharge-free at MoneyPass ATMs.

The network’s mobile app can be found at the iTunes App Store or Google Play.

CO-OP network

The CO-OP mobile app lists about 30,000 surcharge-free cash machines for participating credit union members. As with other ATM finder apps, you search using your current location or a given address to find locations on a Google map, as well as a list of cashpoints in the CO-OP credit union network. When you select a location you’ll receive navigation directions to get to the machine. Find out if your institution is part of CO-OP with the CO-OP ATM search tool, which is available at the iTunes App Store or Google Play.

MasterCard Nearby

MasterCard Nearby enables users to find 2 million ATMs worldwide, as well as retailers that offer cash back with a purchase. You can pinpoint your own bank’s cash machines or set a filter to find those without surcharges. The app searches automatically using your current location, but you can also look for a specific address. Much like the other finder apps, this one gives you a Google map as well as a list of nearby machines. Pick one and connect to your navigation app of choice.

MasterCard Nearby can be found at the iTunes App Store, Google Play and Windows Store.

So when your last Friday class ends, it’ll be easy to pick up some of your cash, without paying extra for it.

---

ATM image via Shutterstock.

Source Article http://ift.tt/1y39EC7

Read More

Best Apps to Find Free ATMs Near College Campuses

When you’re at college, chances are you need some cash from time to time. While schools all have automated teller machines on campus, they may come with hefty surcharges for withdrawals.

When you use an ATM, your bank may charge a fee if the machine is not in its network, and in such cases the owner of the ATM may slap on still another fee. Even if some banks don’t impose this sort of charge, the ATM operator probably will. Usually the cost runs around $2 per transaction, depending on the owner and location.

To avoid racking up fees every time you need a quick $20, consult your smartphone. There are several apps you can download to help find surcharge-free ATMs on or near your campus.

You’ll want to first look for apps offered by your bank. Many, including JPMorgan Chase and Wells Fargo, offer geo-locators to help you find ATMs that are free for depositors in branches or at stand-alone locations. If those are out of range or inconvenient, try these free apps to find surcharge-free ATMs closer to campus.

Allpoint

The Allpoint mobile app enables you to find more than 43,000 surcharge-free ATMs in the U.S., and another 12,000 around the world. You can search according to where you are, or by city and state or ZIP code. The application will deliver a list or a Google Maps view of the closest locations. When you select one, you can get step-by-step directions or connect to your preferred mobile navigation app to guide you to the machine.

One out of 12 ATMs in the U.S. are in Allpoint’s network, the company says. However, you must be a cardholder of a participating financial institution to get surcharge-free access to these machines. You can check with your bank, or email info@allpointnetwork.com to find out if it’s in the network before using the search app, which is available from the iTunes App Store, Google Play and Windows Store.

MoneyPass

The MoneyPass mobile app includes a locator to help you find one of more than 24,000 surcharge-free ATMs nationwide. It can search by address, ZIP code or your location. The app will connect you to a Google map as well as a list of nearby MoneyPass machines, giving you options to choose from, and then it’ll direct you to your chosen location.

In order to gain surcharge-free access, your financial institution must be part of the MoneyPass ATM Network, which includes over 1,600 organizations. The company says more than 75 million cards will work, charge-free. Typically you’ll have a MoneyPass logo on your plastic to indicate that the issuing bank participates. If it’s not there, contact your branch to find out if you can withdraw surcharge-free at MoneyPass ATMs.

The network’s mobile app can be found at the iTunes App Store or Google Play.

CO-OP network

The CO-OP mobile app lists about 30,000 surcharge-free cash machines for participating credit union members. As with other ATM finder apps, you search using your current location or a given address to find locations on a Google map, as well as a list of cashpoints in the CO-OP credit union network. When you select a location you’ll receive navigation directions to get to the machine. Find out if your institution is part of CO-OP with the CO-OP ATM search tool, which is available at the iTunes App Store or Google Play.

MasterCard Nearby

MasterCard Nearby enables users to find 2 million ATMs worldwide, as well as retailers that offer cash back with a purchase. You can pinpoint your own bank’s cash machines or set a filter to find those without surcharges. The app searches automatically using your current location, but you can also look for a specific address. Much like the other finder apps, this one gives you a Google map as well as a list of nearby machines. Pick one and connect to your navigation app of choice.

MasterCard Nearby can be found at the iTunes App Store, Google Play and Windows Store.

So when your last Friday class ends, it’ll be easy to pick up some of your cash, without paying extra for it.

---

ATM image via Shutterstock.

Source Article :http://bit.ly/1mVTh9g

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Apple Pay Bank Partners Push Digital Wallet Despite Fee

Between email blasts, full-page magazine ads and website banners, big banks are promoting Apple’s Apple Pay to their customers and highlighting their cooperation with the technology giant on its mobile wallet since the service was introduced Sept. 9.

Yet those institutions will end up paying when their customers use the new system.

So why are the largest banks and card companies going to so much trouble? For one thing, the first debit or credit card you snap a photo of to add to your iPhone automatically will become the default payment option for Apple Pay when the mobile service begins in October. Card companies and financial institutions want to capitalize on that feature to build volume in transactions, which also bring them money.

“By virtue of our early participation in Apple Pay, maybe we’ll be able to pick up some more people who currently have their MasterCard as secondary in their wallet and we would like them to make it primary,” says James Anderson, head of mobile and emerging payments at MasterCard, based in Purchase, New York.

Painless for consumers

Aside from the innovative touch-to-pay experience that will let users forgo their wallets, consumers won’t likely feel much of a difference in the way they interact with their banks and card companies.

“Whether you charge your credit card or debit card to a piece of plastic or use it through Apple Pay, the costs to the consumer are identical,” says Gavin Michael, head of digital for consumer banking at JPMorgan Chase in New York.

Other banks take a similar approach.

“Wells Fargo does not charge a fee for its customers to use Apple Pay,” says spokeswoman Natalie M. Brown.

Banks charged

Banks will foot the bill for using Apple Pay by giving Apple a percentage of every transaction made through the system, according to Bloomberg News. It remains to be seen whether banks will pass on any of that cost to merchants and consumers. Merchants normally pay banks and card issuers a small percentage of each transaction charged on a credit card or made with a debit card, though that usually has no effect on consumers or what they pay.

Apple has made deals with the largest U.S. financial institutions, including Bank of America, Capital One Bank, Chase, Citigroup and Wells Fargo. These organizations account for 83% of the credit card purchase volume in the U.S., according to Apple. Customers of community banks or credit unions will likely be able to use Apple Pay too, but most of those institutions haven’t announced any plans to participate.

“If [merchants] buy into this type of payment system and we have a demand from our members to offer this, then we will,” Steven Page, online product marketing manager for 1^st United Services Credit Union in Pleasanton, California, said by email.

Smaller banks face barriers

However, cost and accessibility are two barriers keeping smaller financial institutions from offering links to the new service right away.

“It is a very expensive option to take, costing 15 basis points [0.15%] per transaction to use the Apple Pay option,” Page says, referring to the amount Apple collects.

First Data, a credit card processor often used by smaller banks, has said it will participate in Apple Pay, which means those banks can offer the service to depositors. However, other institutions are unsure how to provide it to customers.

“There’s not a help line for banks,” says Jill Castilla, president and chief executive of Citizens Bank of Edmond in Oklahoma. “There’s not an invitation out there for how to get involved and how to connect with Apple.”

Still, she says her community bank is just as eager as its mega counterparts to offer Apple Pay to depositors.

“As long as it’s safe and sound, and if it becomes accessible to community banks, we would be one of the first ones to embrace it,” Castilla says.

So now you know why your bank has been shouting out about Apple Pay.

Card image via Shutterstock

Source Article :http://bit.ly/1vabxM2

Read More

Apple Pay Bank Partners Push Digital Wallet Despite Fee

Between email blasts, full-page magazine ads and website banners, big banks are promoting Apple’s Apple Pay to their customers and highlighting their cooperation with the technology giant on its mobile wallet since the service was introduced Sept. 9.

Yet those institutions will end up paying when their customers use the new system.

So why are the largest banks and card companies going to so much trouble? For one thing, the first debit or credit card you snap a photo of to add to your iPhone automatically will become the default payment option for Apple Pay when the mobile service begins in October. Card companies and financial institutions want to capitalize on that feature to build volume in transactions, which also bring them money.

“By virtue of our early participation in Apple Pay, maybe we’ll be able to pick up some more people who currently have their MasterCard as secondary in their wallet and we would like them to make it primary,” says James Anderson, head of mobile and emerging payments at MasterCard, based in Purchase, New York.

Painless for consumers

Aside from the innovative touch-to-pay experience that will let users forgo their wallets, consumers won’t likely feel much of a difference in the way they interact with their banks and card companies.

“Whether you charge your credit card or debit card to a piece of plastic or use it through Apple Pay, the costs to the consumer are identical,” says Gavin Michael, head of digital for consumer banking at JPMorgan Chase in New York.

Other banks take a similar approach.

“Wells Fargo does not charge a fee for its customers to use Apple Pay,” says spokeswoman Natalie M. Brown.

Banks charged

Banks will foot the bill for using Apple Pay by giving Apple a percentage of every transaction made through the system, according to Bloomberg News. It remains to be seen whether banks will pass on any of that cost to merchants and consumers. Merchants normally pay banks and card issuers a small percentage of each transaction charged on a credit card or made with a debit card, though that usually has no effect on consumers or what they pay.

Apple has made deals with the largest U.S. financial institutions, including Bank of America, Capital One Bank, Chase, Citigroup and Wells Fargo. These organizations account for 83% of the credit card purchase volume in the U.S., according to Apple. Customers of community banks or credit unions will likely be able to use Apple Pay too, but most of those institutions haven’t announced any plans to participate.

“If [merchants] buy into this type of payment system and we have a demand from our members to offer this, then we will,” Steven Page, online product marketing manager for 1^st United Services Credit Union in Pleasanton, California, said by email.

Smaller banks face barriers

However, cost and accessibility are two barriers keeping smaller financial institutions from offering links to the new service right away.

“It is a very expensive option to take, costing 15 basis points [0.15%] per transaction to use the Apple Pay option,” Page says, referring to the amount Apple collects.

First Data, a credit card processor often used by smaller banks, has said it will participate in Apple Pay, which means those banks can offer the service to depositors. However, other institutions are unsure how to provide it to customers.

“There’s not a help line for banks,” says Jill Castilla, president and chief executive of Citizens Bank of Edmond in Oklahoma. “There’s not an invitation out there for how to get involved and how to connect with Apple.”

Still, she says her community bank is just as eager as its mega counterparts to offer Apple Pay to depositors.

“As long as it’s safe and sound, and if it becomes accessible to community banks, we would be one of the first ones to embrace it,” Castilla says.

So now you know why your bank has been shouting out about Apple Pay.

Card image via Shutterstock

Source Article http://ift.tt/1y39EC7

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Have You Outgrown Your Credit Card? 5 Questions to Ask Yourself

Like it or not, modern life has left many of us in a constant state of flux. While it’s natural to consider how these shifts will impact your life in the big picture, it’s also important to think about the everyday implications of a significant change.

For instance, we all invest a lot of time in making financial decisions, but as our lives evolve, it’s essential to revisit those choices and re-evaluate. There’s a strong possibility that over the years you’ve outgrown your credit card – and don’t even realize it. Not sure if this is true? Ask yourself the five questions below to find out!

1. Have I moved?

Moving to a new area is a great time to take a look at your regular credit card and decide if it’s still the best one for you. Here’s why: Relocating sometimes means substantial changes to your usual routines. As a result, where you spend your day-to-day dollars could change, too. Of course, you want to use a credit card that provides primo rewards on the spending you’re already doing, so it might be time to switch cards.

For instance, if you moved from a suburban area to the big city and sold your car, you’ll want a credit card that rewards you for spending on cab fare as opposed to gas. For insight into how your swiping might have changed because of your move, analyze your monthly billing statement – it will give you a clue about which rewards programs you should look for.

2. Did I get a new job?

If you’re a recent college graduate and just got your first salaried job, it’s time to upgrade from your student credit card.

With your new income and the good credit you’ve built up from using plastic responsibly as a student (right?), you should be able to qualify for a card with favorable terms and a decent rewards program. This is an important step on the road to an excellent credit score; demonstrating that you can qualify for new credit, and then using it prudently, will keep your score climbing over time.

3. Has my credit substantially improved?

Going through a tough financial period sometimes leaves your credit score in less-than-ideal shape. If you found yourself in this situation and opted for a secured credit card to help rebuild your score, you made a smart move. Assuming this plan was effective and your credit has substantially improved, it’s probably time to advance to an unsecured (regular) credit card.

You can accomplish this in one of two ways: asking the issuer of your secured card to convert your account to an unsecured version, or applying for a different card of your choice. Either way, this will help you grow your score even further and give you the opportunity to use a card that will provide better rewards.

4. Have I had a significant lifestyle change, such as getting married or having children?

Like moving, other big life events can have an effect on where you’re spending the bulk of your cash. As a swinging single, a credit card that offers big rewards on entertainment and travel was probably just the ticket. But getting married might mean slowing down a bit, so opting for a card that will give bonus points or cash-back on dining out could be a better fit.

Ditto if you’ve recently become a parent – your grocery spending is probably increasing while your restaurant and entertainment spending could be decreasing. Again, the key is to find a card that will give you something valuable in return for the swiping you’re most likely to do.

5. Did I recently pay off lingering credit card debt?

Taking advantage of a 0% balance transfer offer to consolidate and pay off credit card debt is a great idea. After all, you’ll save money on interest and simplify your finances.

But once the debt is paid off, you might want to think about using a different card for your daily spending. Some popular balance transfer credit cards don’t offer rewards programs at all, which isn’t ideal. Plus, it’s likely that your 0% period is up, so there’s no real benefit to holding onto the card. Shop around for a different one, so you can use the best plastic for your new, debt-free life.

The takeaway: As your life changes, it’s likely that your credit card needs do, too. Ask yourself the five questions above when deciding whether or not it’s time to update the contents of your wallet!

This article originally appeared on U.S. News. Fish bowl image via Shutterstock

Source Article http://ift.tt/1y39EC7

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Have You Outgrown Your Credit Card? 5 Questions to Ask Yourself

Like it or not, modern life has left many of us in a constant state of flux. While it’s natural to consider how these shifts will impact your life in the big picture, it’s also important to think about the everyday implications of a significant change.

For instance, we all invest a lot of time in making financial decisions, but as our lives evolve, it’s essential to revisit those choices and re-evaluate. There’s a strong possibility that over the years you’ve outgrown your credit card – and don’t even realize it. Not sure if this is true? Ask yourself the five questions below to find out!

1. Have I moved?

Moving to a new area is a great time to take a look at your regular credit card and decide if it’s still the best one for you. Here’s why: Relocating sometimes means substantial changes to your usual routines. As a result, where you spend your day-to-day dollars could change, too. Of course, you want to use a credit card that provides primo rewards on the spending you’re already doing, so it might be time to switch cards.

For instance, if you moved from a suburban area to the big city and sold your car, you’ll want a credit card that rewards you for spending on cab fare as opposed to gas. For insight into how your swiping might have changed because of your move, analyze your monthly billing statement – it will give you a clue about which rewards programs you should look for.

2. Did I get a new job?

If you’re a recent college graduate and just got your first salaried job, it’s time to upgrade from your student credit card.

With your new income and the good credit you’ve built up from using plastic responsibly as a student (right?), you should be able to qualify for a card with favorable terms and a decent rewards program. This is an important step on the road to an excellent credit score; demonstrating that you can qualify for new credit, and then using it prudently, will keep your score climbing over time.

3. Has my credit substantially improved?

Going through a tough financial period sometimes leaves your credit score in less-than-ideal shape. If you found yourself in this situation and opted for a secured credit card to help rebuild your score, you made a smart move. Assuming this plan was effective and your credit has substantially improved, it’s probably time to advance to an unsecured (regular) credit card.

You can accomplish this in one of two ways: asking the issuer of your secured card to convert your account to an unsecured version, or applying for a different card of your choice. Either way, this will help you grow your score even further and give you the opportunity to use a card that will provide better rewards.

4. Have I had a significant lifestyle change, such as getting married or having children?

Like moving, other big life events can have an effect on where you’re spending the bulk of your cash. As a swinging single, a credit card that offers big rewards on entertainment and travel was probably just the ticket. But getting married might mean slowing down a bit, so opting for a card that will give bonus points or cash-back on dining out could be a better fit.

Ditto if you’ve recently become a parent – your grocery spending is probably increasing while your restaurant and entertainment spending could be decreasing. Again, the key is to find a card that will give you something valuable in return for the swiping you’re most likely to do.

5. Did I recently pay off lingering credit card debt?

Taking advantage of a 0% balance transfer offer to consolidate and pay off credit card debt is a great idea. After all, you’ll save money on interest and simplify your finances.

But once the debt is paid off, you might want to think about using a different card for your daily spending. Some popular balance transfer credit cards don’t offer rewards programs at all, which isn’t ideal. Plus, it’s likely that your 0% period is up, so there’s no real benefit to holding onto the card. Shop around for a different one, so you can use the best plastic for your new, debt-free life.

The takeaway: As your life changes, it’s likely that your credit card needs do, too. Ask yourself the five questions above when deciding whether or not it’s time to update the contents of your wallet!

This article originally appeared on U.S. News. Fish bowl image via Shutterstock

Source Article :http://bit.ly/XVTWvc

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College Students Should Know About These Bank Services

For college students, money management can be daunting. Freshmen may just be looking to open their first bank accounts. Seniors, casting an eye toward what comes next, may focus on trying to save money. For them, and others in between, here’s some guidance to navigate the ins and outs of banking while still on campus.

Choosing a bank

In an ideal world, there’s a bank or credit union with branches close both to home and campus. Since this isn’t always the case, there are a few things to consider if you’re torn between sticking with your hometown bank and switching to one near school.

If you open an account at a bank or credit union with offices closer to school, you’ll have access to in-person services and potentially on-campus ATMs with no-fee withdrawals. Having a branch to visit when you need help can spare you the headache of dealing with remote customer service representatives when issues arise. You may also receive sign-up bonuses and perks that you wouldn’t get otherwise. It’s also less critical to share a bank with your parents these days, as online and mobile apps make funds transfers easier.

Banks versus credit unions

Students choosing a new financial institution should look into how credit unions may beat big banks. In a study across more than 80 universities, NerdWallet found that 88% of the time, credit unions were a better choice than big banks when considering fees, accessibility and perks.

The survey found that more university credit unions had branches on campus and offered more surcharge-free ATMs nearby than banks. In addition, credit unions charged less for out-of-network ATM transactions.

Checking choices

Most college students with checking accounts chose banks and credit unions that offer student accounts specifically aimed at helping young adults establish good money-managing practices. You need to consider a series of factors when determining what kind of checking you’ll need, including:

• Account type: If the bank or credit union you’re interested in doesn’t offer student checking, find out what kind of basic, affordable accounts are available.


• Accessibility: What’s the location of the bank or credit union that caught your eye? If you want in-person service, then you need a branch that’s close to school. Or, if you want easy access to your money without paying fees or surcharges, then a bank with an ATM on campus may be just the ticket.


• Minimums and fees: Both credit unions and banks often offer free checking to students. But even the ones that charge a monthly fee typically provide easy ways to have it waived, such as maintaining a relatively low minimum balance or signing up for online statements. You’ll want to review the list of fees to uncover hidden charges and look at overdraft and bounced-check costs before choosing an account.


• Overdraft protection: If you’re planning to open an account for savings as well as one for checking, you may opt for a link between them to handle overdrafts just in case you swipe your card one too many times. Be careful though — while overdraft protection means that your card or check won’t be rejected, it can cost nearly $30 per transaction.


• Mobile services: Most banks and credit unions support mobile apps, so you don’t have to visit a brick-and-mortar location or an ATM, other than to pick up cash. These services can also help with paying bills, keeping track of deposits and pending purchases and monitoring balances to avoid overdrafts.

To compare banking options at your college, use our student checking comparison tool.

Avoiding ATM surcharges

Using an ATM on campus may be convenient, but it’s not always best. When you use an ATM that’s out of your network, your bank or credit union may charge a fee and the ATM operator could impose its own fee, too. Even if your bank waives its fee, you can still be nicked for an average of about $2 per transaction.

When you’re choosing a checking provider, find out which ones have ATMs on or near campus. You also may want to check out what kind of ATM fee reimbursement deals may be offered. If you already have an established account, several apps such as those offered by Allpoint , CO-OP Credit Union and MoneyPass can help locate surcharge-free ATMs in the area.

Savings accounts

No matter what your goal, savings accounts can help you reach it. Many banks and credit unions offer student-oriented or other basic savings accounts with low minimum balances that can connect with checking accounts to help students manage transfers. For those just starting out, a basic savings account with an annual percentage yield of 0.01% on all balances is typical. You may want to find one that lets you create multiple buckets tied to specific goals, be it spring break, a big-ticket purchase or a post-graduation nest egg.

Finding low-cost banking services while in school doesn’t need to be difficult, as long as you do some homework. Trust us: Getting it right will be worth the trouble.

College students image via Shutterstock.

Source Article http://ift.tt/1y39EC7

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College Students Should Know About These Bank Services

For college students, money management can be daunting. Freshmen may just be looking to open their first bank accounts. Seniors, casting an eye toward what comes next, may focus on trying to save money. For them, and others in between, here’s some guidance to navigate the ins and outs of banking while still on campus.

Choosing a bank

In an ideal world, there’s a bank or credit union with branches close both to home and campus. Since this isn’t always the case, there are a few things to consider if you’re torn between sticking with your hometown bank and switching to one near school.

If you open an account at a bank or credit union with offices closer to school, you’ll have access to in-person services and potentially on-campus ATMs with no-fee withdrawals. Having a branch to visit when you need help can spare you the headache of dealing with remote customer service representatives when issues arise. You may also receive sign-up bonuses and perks that you wouldn’t get otherwise. It’s also less critical to share a bank with your parents these days, as online and mobile apps make funds transfers easier.

Banks versus credit unions

Students choosing a new financial institution should look into how credit unions may beat big banks. In a study across more than 80 universities, NerdWallet found that 88% of the time, credit unions were a better choice than big banks when considering fees, accessibility and perks.

The survey found that more university credit unions had branches on campus and offered more surcharge-free ATMs nearby than banks. In addition, credit unions charged less for out-of-network ATM transactions.

Checking choices

Most college students with checking accounts chose banks and credit unions that offer student accounts specifically aimed at helping young adults establish good money-managing practices. You need to consider a series of factors when determining what kind of checking you’ll need, including:

• Account type: If the bank or credit union you’re interested in doesn’t offer student checking, find out what kind of basic, affordable accounts are available.


• Accessibility: What’s the location of the bank or credit union that caught your eye? If you want in-person service, then you need a branch that’s close to school. Or, if you want easy access to your money without paying fees or surcharges, then a bank with an ATM on campus may be just the ticket.


• Minimums and fees: Both credit unions and banks often offer free checking to students. But even the ones that charge a monthly fee typically provide easy ways to have it waived, such as maintaining a relatively low minimum balance or signing up for online statements. You’ll want to review the list of fees to uncover hidden charges and look at overdraft and bounced-check costs before choosing an account.


• Overdraft protection: If you’re planning to open an account for savings as well as one for checking, you may opt for a link between them to handle overdrafts just in case you swipe your card one too many times. Be careful though — while overdraft protection means that your card or check won’t be rejected, it can cost nearly $30 per transaction.


• Mobile services: Most banks and credit unions support mobile apps, so you don’t have to visit a brick-and-mortar location or an ATM, other than to pick up cash. These services can also help with paying bills, keeping track of deposits and pending purchases and monitoring balances to avoid overdrafts.

To compare banking options at your college, use our student checking comparison tool.

Avoiding ATM surcharges

Using an ATM on campus may be convenient, but it’s not always best. When you use an ATM that’s out of your network, your bank or credit union may charge a fee and the ATM operator could impose its own fee, too. Even if your bank waives its fee, you can still be nicked for an average of about $2 per transaction.

When you’re choosing a checking provider, find out which ones have ATMs on or near campus. You also may want to check out what kind of ATM fee reimbursement deals may be offered. If you already have an established account, several apps such as those offered by Allpoint , CO-OP Credit Union and MoneyPass can help locate surcharge-free ATMs in the area.

Savings accounts

No matter what your goal, savings accounts can help you reach it. Many banks and credit unions offer student-oriented or other basic savings accounts with low minimum balances that can connect with checking accounts to help students manage transfers. For those just starting out, a basic savings account with an annual percentage yield of 0.01% on all balances is typical. You may want to find one that lets you create multiple buckets tied to specific goals, be it spring break, a big-ticket purchase or a post-graduation nest egg.

Finding low-cost banking services while in school doesn’t need to be difficult, as long as you do some homework. Trust us: Getting it right will be worth the trouble.

College students image via Shutterstock.

Source Article :http://bit.ly/1mKwRYy

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Lenders Step In With Student Debt Relief Offerings

For people saddled with federal student loans, the government might not be able to offer lower interest rates or simpler repayment systems – but banks and credit unions might.

Citizens Financial Group recently announced that it would start refinancing federal student loans. Borrowers with good credit can now secure variable rates as low as 2.31% and fixed rates as low as 4.74%, both on an annual basis. In a similar program for borrowers with private student loans, the Providence, Rhode Island-based parent of Citizens Bank says participants lowered the average annual percentage rate on their debt by 1.5 percentage points.

For people like Ali Goldberg, who graduated from Pennsylvania State University in May with a degree in English and is currently living with her parents in New Jersey, programs like these may provide some relief. Like seven out of 10 members of the class of 2013, Goldberg has federal student loans to pay off. She recently got a letter informing her that she’d have to start making payments in three months. While she doesn’t see her student loans as a huge burden, the debt has affected her life after graduation.

“I try not to let it affect my decisions, and my parents don’t pressure me in that way,” Goldberg says. “But there are certain things I would do if I didn’t have loans on the back of my mind.”

To an extent, it has narrowed her job search. After exploring jobs in Boston and other cities, she decided that the best financial option would be to live with her parents and commute from home, perhaps finding full-time employment in New York City. “I don’t mind living at home, so why not take advantage of New York, try to save money for a bit so I’m able to pay back my loans?” she says.

Like Goldberg, many recent graduates are finding that loans they took for school have limited their options. Currently, there is about $1.2 trillion of outstanding student debt in the U.S. The average borrower owes $29,400, according to the Institute for College Access & Success. Those who have several outstanding loans might find more freedom through refinancing programs that offer lower interest rates and reduced monthly payments on a debt-consolidation loan that pays off several smaller notes.

Citizens’ debt-consolidating refinancing plans aim to give students relief, Brendan Coughlin, the president of education finance for the bank, said in a statement announcing the new program.

“While a college education is one of the best investments a young adult can make, paying for it afterward while trying to achieve other financial milestones can be difficult,” Coughlin said.

In addition to Citizens, several other organizations have also started programs to help students cope with federal loans. CuStudentLoans connects users to a network of credit unions offering refinancing options. San Francisco-based peer-to-peer lender SoFi, which offers benefits such as unemployment protection to borrowers, also provide alternatives to college graduates looking for lower rates.

Graduates like Goldberg can also choose to refinance federal loans through the government. That may not save them a lot of money, but it will preserve the option to take advantage of benefits such as pay-as-you-earn systems and debt forgiveness. Through a Direct Consolidation Loan, students can combine multiple federal loans into one with a fixed interest rate based on a weighted average of the rates on the loans.

Other financial institutions are also offering more options to students dealing with debt. Boston-based First Trade Union Bank recently rolled out a debit card rewards program with Simple Tuition’s SmarterBucks unit. The program gives consumers rewards on all non-PIN purchases made with the debit card and converts the rewards points to cash that goes toward paying off the user’s student loans.

“We think we’re a little closer to millennials when it comes to providing them with financial solutions,” says Mike Butler, First Trade’s president and chief executive, in discussing the program with Simple Tuition and its initiatives. “This is a company that’s trying to help a very, very big problem in today’s society.”

Lawmakers in Washington have also grappled with the issue. Sen. Elizabeth Warren, D-Massachusetts, has introduced a bill that would allow students to refinance their school loans at rates as low as 4%. Republicans blocked the measure in June and again recently, on the same day that the Citizens and First Trade programs were announced. But privately financed relief isn’t necessarily for everyone.

In New Jersey, Goldberg says she’d have to consider her options when deciding whether to go with a private lender to consolidate her school debts.

“I feel like I would have to be really well-educated on what refinancing would mean,” she says. “I don’t know where I’ll be in the next two years. I might go to grad school. I might have even more loans.”

---

Student loan illustration via Shutterstock.

Source Article http://ift.tt/1y39EC7

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Lenders Step In With Student Debt Relief Offerings

For people saddled with federal student loans, the government might not be able to offer lower interest rates or simpler repayment systems – but banks and credit unions might.

Citizens Financial Group recently announced that it would start refinancing federal student loans. Borrowers with good credit can now secure variable rates as low as 2.31% and fixed rates as low as 4.74%, both on an annual basis. In a similar program for borrowers with private student loans, the Providence, Rhode Island-based parent of Citizens Bank says participants lowered the average annual percentage rate on their debt by 1.5 percentage points.

For people like Ali Goldberg, who graduated from Pennsylvania State University in May with a degree in English and is currently living with her parents in New Jersey, programs like these may provide some relief. Like seven out of 10 members of the class of 2013, Goldberg has federal student loans to pay off. She recently got a letter informing her that she’d have to start making payments in three months. While she doesn’t see her student loans as a huge burden, the debt has affected her life after graduation.

“I try not to let it affect my decisions, and my parents don’t pressure me in that way,” Goldberg says. “But there are certain things I would do if I didn’t have loans on the back of my mind.”

To an extent, it has narrowed her job search. After exploring jobs in Boston and other cities, she decided that the best financial option would be to live with her parents and commute from home, perhaps finding full-time employment in New York City. “I don’t mind living at home, so why not take advantage of New York, try to save money for a bit so I’m able to pay back my loans?” she says.

Like Goldberg, many recent graduates are finding that loans they took for school have limited their options. Currently, there is about $1.2 trillion of outstanding student debt in the U.S. The average borrower owes $29,400, according to the Institute for College Access & Success. Those who have several outstanding loans might find more freedom through refinancing programs that offer lower interest rates and reduced monthly payments on a debt-consolidation loan that pays off several smaller notes.

Citizens’ debt-consolidating refinancing plans aim to give students relief, Brendan Coughlin, the president of education finance for the bank, said in a statement announcing the new program.

“While a college education is one of the best investments a young adult can make, paying for it afterward while trying to achieve other financial milestones can be difficult,” Coughlin said.

In addition to Citizens, several other organizations have also started programs to help students cope with federal loans. CuStudentLoans connects users to a network of credit unions offering refinancing options. San Francisco-based peer-to-peer lender SoFi, which offers benefits such as unemployment protection to borrowers, also provide alternatives to college graduates looking for lower rates.

Graduates like Goldberg can also choose to refinance federal loans through the government. That may not save them a lot of money, but it will preserve the option to take advantage of benefits such as pay-as-you-earn systems and debt forgiveness. Through a Direct Consolidation Loan, students can combine multiple federal loans into one with a fixed interest rate based on a weighted average of the rates on the loans.

Other financial institutions are also offering more options to students dealing with debt. Boston-based First Trade Union Bank recently rolled out a debit card rewards program with Simple Tuition’s SmarterBucks unit. The program gives consumers rewards on all non-PIN purchases made with the debit card and converts the rewards points to cash that goes toward paying off the user’s student loans.

“We think we’re a little closer to millennials when it comes to providing them with financial solutions,” says Mike Butler, First Trade’s president and chief executive, in discussing the program with Simple Tuition and its initiatives. “This is a company that’s trying to help a very, very big problem in today’s society.”

Lawmakers in Washington have also grappled with the issue. Sen. Elizabeth Warren, D-Massachusetts, has introduced a bill that would allow students to refinance their school loans at rates as low as 4%. Republicans blocked the measure in June and again recently, on the same day that the Citizens and First Trade programs were announced. But privately financed relief isn’t necessarily for everyone.

In New Jersey, Goldberg says she’d have to consider her options when deciding whether to go with a private lender to consolidate her school debts.

“I feel like I would have to be really well-educated on what refinancing would mean,” she says. “I don’t know where I’ll be in the next two years. I might go to grad school. I might have even more loans.”

---

Student loan illustration via Shutterstock.

Source Article :http://bit.ly/XVo2Pw

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5 Credit Score Questions Every College Kid Should Ask

Let’s face facts: When you’re a college student, thinking about life after campus is kind of a drag. Who wants to worry about “real” adulthood when there’s an exam to cram for and a party this weekend?

But the reality is that there’s one post-college concern you should already be thinking about – your credit score. Not sure why it’s important? Here are 5 credit score questions you should be asking right now:

1. What is a credit score?

First and foremost, it’s essential to understand what your credit score actually is. Essentially, it’s a three-digit number that represents your past history with handling borrowed money. Credit scores range from 300-850 – the higher your score, the better.

It’s also worth mentioning that your credit score is scrutinized frequently. You’ll need a good score to rent your first apartment, set up utilities and get nearly any type of loan. This is why it’s critical to start building good credit as soon as you can.

2. What’s the difference between my credit report and my credit score?

Your credit report is a document that lists important details about all of the credit accounts open in your name – past and present. Every month, your lenders send information to the three major credit bureaus about how you’re doing with the money you’ve borrowed from them. For instance, if you’ve made a late payment, this will be communicated to the bureaus and will be noted on your credit report.

Your credit reports (you’ll have one for each of the three credit bureaus) are then used to create your credit scores (again, one for each bureau, although they should be pretty similar). This is why it’s essential that the information on your credit reports is accurate. You should review all three at least once per year.

3. How is my credit score determined?

It’s important to know how different financial behaviors influence the final calculation of your score. The FICO credit score, which is the most widely used in the United States, uses five broad factors to determine your score. Again, all of this information is derived from your credit report:

• Payment history (35%) – Do you pay your bills on time?


• Amounts owed (30%) – Do you keep the balances on your credit cards low?


• Length of credit history (15%) – How long have you been using credit?


• Mix of accounts (10%) – Do you have a good variety of credit accounts on your report?


• New credit inquires (10%) – Are you applying for too much credit at once?

4. How long will a mistake affect my credit score?

If you’re looking over the information above and are concerned that you’ve already made some money mistakes that could affect your score, don’t panic. Negative marks won’t say on your credit report forever; most drop off after seven years, and they start to have less of an impact on your score as time passes. The important thing is to correct bad credit habits and stick with good ones from here on out.

5. What can I do to start building good credit now?

The easiest way to start building good credit while you’re still in college is to get a student credit card and use it responsibly. This means paying your bills on time and in full, every month, without exception. Over time, this should add up to a great score (assuming that you’re not defaulting on other bills, like rent or utilities).

It’s worth noting that it’s not as easy as it used to be for college students to get credit cards; you’ll probably need a co-signer to do so. If you can’t find one, consider opting for a secured credit card. You’ll have to put down an up-front deposit, but because you’re accessing a credit line when you use the card, your score will start climbing with responsible use.

The takeaway: College students should start getting educated about their credit scores well before graduation. Start with the five questions above – and keep them coming!

College students image via Shutterstock

Source Article http://ift.tt/1y39EC7

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5 Credit Score Questions Every College Kid Should Ask

Let’s face facts: When you’re a college student, thinking about life after campus is kind of a drag. Who wants to worry about “real” adulthood when there’s an exam to cram for and a party this weekend?

But the reality is that there’s one post-college concern you should already be thinking about – your credit score. Not sure why it’s important? Here are 5 credit score questions you should be asking right now:

1. What is a credit score?

First and foremost, it’s essential to understand what your credit score actually is. Essentially, it’s a three-digit number that represents your past history with handling borrowed money. Credit scores range from 300-850 – the higher your score, the better.

It’s also worth mentioning that your credit score is scrutinized frequently. You’ll need a good score to rent your first apartment, set up utilities and get nearly any type of loan. This is why it’s critical to start building good credit as soon as you can.

2. What’s the difference between my credit report and my credit score?

Your credit report is a document that lists important details about all of the credit accounts open in your name – past and present. Every month, your lenders send information to the three major credit bureaus about how you’re doing with the money you’ve borrowed from them. For instance, if you’ve made a late payment, this will be communicated to the bureaus and will be noted on your credit report.

Your credit reports (you’ll have one for each of the three credit bureaus) are then used to create your credit scores (again, one for each bureau, although they should be pretty similar). This is why it’s essential that the information on your credit reports is accurate. You should review all three at least once per year.

3. How is my credit score determined?

It’s important to know how different financial behaviors influence the final calculation of your score. The FICO credit score, which is the most widely used in the United States, uses five broad factors to determine your score. Again, all of this information is derived from your credit report:

• Payment history (35%) – Do you pay your bills on time?


• Amounts owed (30%) – Do you keep the balances on your credit cards low?


• Length of credit history (15%) – How long have you been using credit?


• Mix of accounts (10%) – Do you have a good variety of credit accounts on your report?


• New credit inquires (10%) – Are you applying for too much credit at once?

4. How long will a mistake affect my credit score?

If you’re looking over the information above and are concerned that you’ve already made some money mistakes that could affect your score, don’t panic. Negative marks won’t say on your credit report forever; most drop off after seven years, and they start to have less of an impact on your score as time passes. The important thing is to correct bad credit habits and stick with good ones from here on out.

5. What can I do to start building good credit now?

The easiest way to start building good credit while you’re still in college is to get a student credit card and use it responsibly. This means paying your bills on time and in full, every month, without exception. Over time, this should add up to a great score (assuming that you’re not defaulting on other bills, like rent or utilities).

It’s worth noting that it’s not as easy as it used to be for college students to get credit cards; you’ll probably need a co-signer to do so. If you can’t find one, consider opting for a secured credit card. You’ll have to put down an up-front deposit, but because you’re accessing a credit line when you use the card, your score will start climbing with responsible use.

The takeaway: College students should start getting educated about their credit scores well before graduation. Start with the five questions above – and keep them coming!

College students image via Shutterstock

Source Article :http://bit.ly/1r3XyIs

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Small Business Third Party Tools

Starting your business is a feat in its own right, but you don’t have to do it all on your own; there are numerous third-party tools that can help you. Here are just a few of the hundreds of resources that can help improve your website, communicate with customers and streamline your daily business operations.

Website

Olark: Add a live-chat feature to your website and connect with users as they navigate your page. Learn information and analytics about who your customers are and how they interact with your site.

Key features: See who’s on your site, what they’re looking at and how long they’ve been there.

Intercom: Connect with your website’s users through in-app messages and optimized emails. Learn about your customers through a live database.

Key features: Collaborate with your colleagues using a team inbox that lets multiple people in your company respond to customers.

Hello Bar: Create banners for your company’s website to draw users’ attention to various campaigns or features on your site. Use the banner to promote sales, newsletters, blog posts, social media profiles and more.

Key features: Customize the banners to fit your site’s unique aesthetic.

Communication

MailChimp: Manage your email contacts and send targeted messages to thousands of customers at optimized times. Review each email campaign with reports of open and click rates, and track trends over time.

Key features: See profiles of your email subscribers, send automated emails and get recommendations about the best times to send emails.

Cloud Phone: Conduct company calling through your smartphone. Connect multiple devices to local or toll-free phone numbers so everyone in your business can access the platform.

Key features: Get transcribed voicemails sent to your email inbox, use the auto attendant feature to greet customers and direct them to various lines.

Rapportive: A Gmail plug-in that lets you see information about your email contacts including their photo, company, location, LinkedIn profile and shared connections.

Key features: Make LinkedIn connections through your Gmail window.

Social media

Buffer: Schedule posts for your company’s Facebook, Twitter, LinkedIn and Google+ accounts. Analyze your posts to see how many clicks, retweets or likes they got, and track the growth of your followers over time.

Key features: Use it directly from Facebook and Twitter with special Buffer buttons built into those networks.

Hootsuite: Manage your accounts from social networks including Facebook, Twitter, Google +, Instagram, YouTube and LinkedIn. Schedule posts, monitor conversations about trending topics that you care about, and get real-time analytics about your social media activity.

Key features: Give multiple team members access so you can collaborate to manage your social media presence.

Finances

Freshbooks: Take care of your business accounting with this cloud-based tool. Create and send custom invoices, track expenses, record time spent and get reports about your earnings.

Key features: Accept credit card, PayPal, cash or check payments from your customers.

Wave: Do your company’s payroll, invoices and bookkeeping in one place with this cloud-based tool. Keep track of your personal budget and investments too.

Key features: Accept credit card payments from your clients and send invoices using your mobile device

Recruiting

Greenhouse: Recruiting software helps you find talent, get referrals, create interview plans, communicate with candidates, evaluate potential employees and make a final decision.

Key features: An application review tool helps with screening. Analyze your hiring campaigns to determine what works and what doesn’t.

ZipRecruiter: Write a job description once and post it to dozens of job boards to spread the word about openings at your company. Access a free résumé database to screen thousands of candidates.

Key feature: Add a job page to your own website with a simple widget; no coding required.

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Business owner image via Shutterstock.

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