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Small Business Loans 101: Calculating the True Cost of Borrowing




If you’re starting a business and you need some funding to get off the ground, a small business loan may be the way to go. Entrepreneurs can get loans from traditional banks, credit unions and third-party alternative lenders.


But borrowing from these institutions isn’t like borrowing from your mom and paying her back when you have the cash. When you repay a small business loan, you’ll end up paying more than the amount borrowed because of interest, amortization and fees.


Loan Rates


All small business loans come with interest that the borrower pays to the lender. Loans guaranteed by the Small Business Administration (SBA) are low-interest, but alternative small business lenders can charge high interest rates, especially for short-term loans. Loan rates can be varied or fixed. A borrower should choose a rate based on the market conditions at the time they get the loan.


Variable rates change over time as market interest rates shift. If market rates are high, a variable rate is a good idea because the loan rate will decrease if market interest rates drop.


Fixed rates lock in the market interest rate at the time a borrower takes out the loan. If market rates are low, it’s wise to get a fixed rate and maintain that low interest rate throughout the duration of the payment schedule.


Amortization Schedule


The loan’s term, or how long it takes to pay off, affects the overall cost of the loan because it determines how long a borrower pays interest. A payment schedule, or amortization schedule, is a plan for paying back a loan in regular monthly increments. Each payment consists of principal, or the actual cost of the loan, and interest.


For example, say an entrepreneur takes out a $100,000 loan for five years with a 5% interest rate. Each month for 60 months, she’ll repay $1,887.12 in principal and interest.


At the beginning of the term, a larger percentage of the payment is interest because lenders want to get their payments sooner to minimize risk. In this case, $416.67 of the first payment is interest and $1,470.46 is principal. With each payment, the percentage that is interest decreases and the part that is principal increases. In the final month, the borrower would pay just $7.83 in interest and $1,879.29 in principal.


Sample amortization schedule































































MonthInterestPrincipalTotal PaymentLoan Balance
1$416.67$1,470.46$1,887.12$98,529.54
2$410.54$1,476.58$1,887.12$97,052.96
3$404.39$1,482.74$1,887.12$95,570.22
4…57
58$23.39$1,863.73$1,887.12$3,750.79
59$15.63$1,871.50$1,887.12$1,879.29
60$7.83$1,879.29$1,887.12$0.00

Source: amortization-calc.com


Fees


On top of monthly payments, borrowers have to pay loan fees. Most common are origination and guarantee fees, but some lenders will tack on additional costs. Borrowers have to pay interest on the fees that are added to the loan rate, so avoid high fees at all costs.


Origination fee – Lenders charge borrowers this fee for processing a loan application and other administrative work involved. It’s taken as a percentage of the total loan, for example, 1% of a $100,000 loan.


Guarantee fee – For SBA-guaranteed loans, lenders pay the government a portion of the amount guaranteed. Many lenders pass on part of this cost to the borrower.


To fully understand the long-term cost of your loan, look at the effective annual percentage rate (EAPR), which includes the fees and compounded interest you’ll pay each year. Like apples-to-apples, this number is helpful to compare loans from different lenders to determine the loan package that’s best for your wallet.




Seed money illustration via Shutterstock.


The post Small Business Loans 101: Calculating the True Cost of Borrowing appeared first on NerdWallet Credit Card Blog.






Source Article :http://bit.ly/1pbL9mc

Mobile Apps Build Financial Inclusion Among Unbanked Americans




If you’re among the unbanked in America and you own a smartphone, that little device could be your onramp to the financial mainstream. Mobile apps may encourage the use of traditional banking services, according to a Federal Deposit Insurance Corp. survey.


Smartphones are changing how people approach banking, most significantly among the underbanked, which includes those households that have an account at a financial institution but use alternative service providers such as check-cashing stores or payday lenders, the FDIC said in reporting the survey results. The agency says that about 30% of underbanked households use mobile devices to get into their accounts, compared with almost 22% of fully banked households.


“Mobile technologies might also become useful tools for bringing unbanked households into the financial mainstream,” the agency said. “Innovations such as mobile account opening could play a role in expanding access to banking for the unbanked.”


Smartphone tools


Access to smartphones is a chief reason mobile banking rates have increased. Almost one in four households reported using mobile devices with their accounts. Most often, that meant monitoring a balance or reviewing recent transactions. About a quarter of households used mobile apps to deposit a check. More than half of underbanked households said they used mobile text alerts compared to less than 45% of fully banked households.


The primary way people still gain access to their accounts is through tellers or online portals – about two out of three households listed one or the other as their usual way. Even though mobile apps are becoming more popular, these methods are still, by and large, most commonly used by the underbanked, the survey shows.


Mobile and online banking methods tend to supplement banking, rather than substituting for it entirely, according to the survey, which is done every other year. Those who primarily used online or mobile apps to access their accounts said they typically used additional methods as well, such as cash machines and branch visits.


Employment effects


The number of unbanked households dropped last year to 7.7%, representing more than 25 million Americans, from 8.2% in 2011 according to the survey, which measures the underserved population. The FDIC cited improving economic conditions and changing household demographics as the main contributing factors to this decrease. An unbanked household doesn’t hold an account at an insured financial institution, the agency said.


About one in five households, with more than 67 million people, were underbanked last year, according to the FDIC. The category is for those that have an insured account but that used an alternative service at least once in the past year. The proportion of underbanked households was unchanged from 2011.


Income and employment were the top factors in determining whether households held bank accounts. Slightly less than half of the unbanked previously had an account, but closed it following a job loss or a significant drop in income. About 10% reported becoming unbanked in the previous 12 months.


About 35% of unbanked households cited not enough money as the main reason they didn’t have an account. Dislike or distrust of banks as well as high or unpredictable account fees also were given as reasons for being unbanked.


Unbanked Americans increasingly use prepaid debit cards as a payment method and as an alternative to holding a bank account, the report shows. Prepaid card use grew to 27% of unbanked households last year from 12% in 2009.


Just as losing a job can lead to becoming unbanked, landing a new job and particularly the need for direct deposit of a payroll check often spurred unbanked households to open bank accounts, the agency said. Of the 1.6% of households that became banked in the previous 12 months, almost a quarter reported that a new job figured in the decision. More than a third – nearly 35% – said setting up a way to receive direct deposits was the main reason they opened a bank account.


Households with the highest unbanked rates included non-Asian minorities, people with lower incomes, and younger and unemployed residents, according to the survey. While the rates for most were fairly unchanged from 2011, the rate for Latino households dropped to about 18% last year from 20% in 2011. Higher levels of employment, income and education accounted for much of the decline.


Future possibilities


It’s more likely that currently unbanked households will open an account in the future if they’ve recently had a bank account – about 75% say they probably will as opposed to 25% among those who’ve never held an account and 43% that last had one more than a year ago.


There’s no doubt about it, mobile apps are helping to entice even the most wary among us back to banks. These apps showcase some of the most convenient and popular services, such as checking and savings account monitoring, making payments to your pals, finding a cash machine, depositing a check and paying bills. So if you’re part of the underbanked or unbanked population and own a smartphone, you may want to use it to change the way you manage your money – if you haven’t already.




Mobile baking photo via Shutterstock.


The post Mobile Apps Build Financial Inclusion Among Unbanked Americans appeared first on NerdWallet Credit Card Blog.






Source Article :http://bit.ly/1pbL6GV

Small Business Loans 101: Calculating the True Cost of Borrowing

If you’re starting a business and you need some funding to get off the ground, a small business loan may be the way to go. Entrepreneurs can get loans from traditional banks, credit unions and third-party alternative lenders.


But borrowing from these institutions isn’t like borrowing from your mom and paying her back when you have the cash. When you repay a small business loan, you’ll end up paying more than the amount borrowed because of interest, amortization and fees.


Loan Rates


All small business loans come with interest that the borrower pays to the lender. Loans guaranteed by the Small Business Administration (SBA) are low-interest, but alternative small business lenders can charge high interest rates, especially for short-term loans. Loan rates can be varied or fixed. A borrower should choose a rate based on the market conditions at the time they get the loan.


Variable rates change over time as market interest rates shift. If market rates are high, a variable rate is a good idea because the loan rate will decrease if market interest rates drop.


Fixed rates lock in the market interest rate at the time a borrower takes out the loan. If market rates are low, it’s wise to get a fixed rate and maintain that low interest rate throughout the duration of the payment schedule.


Amortization Schedule


The loan’s term, or how long it takes to pay off, affects the overall cost of the loan because it determines how long a borrower pays interest. A payment schedule, or amortization schedule, is a plan for paying back a loan in regular monthly increments. Each payment consists of principal, or the actual cost of the loan, and interest.


For example, say an entrepreneur takes out a $100,000 loan for five years with a 5% interest rate. Each month for 60 months, she’ll repay $1,887.12 in principal and interest.


At the beginning of the term, a larger percentage of the payment is interest because lenders want to get their payments sooner to minimize risk. In this case, $416.67 of the first payment is interest and $1,470.46 is principal. With each payment, the percentage that is interest decreases and the part that is principal increases. In the final month, the borrower would pay just $7.83 in interest and $1,879.29 in principal.


Sample amortization schedule































































MonthInterestPrincipalTotal PaymentLoan Balance
1$416.67$1,470.46$1,887.12$98,529.54
2$410.54$1,476.58$1,887.12$97,052.96
3$404.39$1,482.74$1,887.12$95,570.22
4…57
58$23.39$1,863.73$1,887.12$3,750.79
59$15.63$1,871.50$1,887.12$1,879.29
60$7.83$1,879.29$1,887.12$0.00

Source: amortization-calc.com


Fees


On top of monthly payments, borrowers have to pay loan fees. Most common are origination and guarantee fees, but some lenders will tack on additional costs. Borrowers have to pay interest on the fees that are added to the loan rate, so avoid high fees at all costs.


Origination fee – Lenders charge borrowers this fee for processing a loan application and other administrative work involved. It’s taken as a percentage of the total loan, for example, 1% of a $100,000 loan.


Guarantee fee – For SBA-guaranteed loans, lenders pay the government a portion of the amount guaranteed. Many lenders pass on part of this cost to the borrower.


To fully understand the long-term cost of your loan, look at the effective annual percentage rate (EAPR), which includes the fees and compounded interest you’ll pay each year. Like apples-to-apples, this number is helpful to compare loans from different lenders to determine the loan package that’s best for your wallet.




Seed money illustration via Shutterstock.


The post Small Business Loans 101: Calculating the True Cost of Borrowing appeared first on NerdWallet Credit Card Blog.






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

Mobile Apps Build Financial Inclusion Among Unbanked Americans

If you’re among the unbanked in America and you own a smartphone, that little device could be your onramp to the financial mainstream. Mobile apps may encourage the use of traditional banking services, according to a Federal Deposit Insurance Corp. survey.


Smartphones are changing how people approach banking, most significantly among the underbanked, which includes those households that have an account at a financial institution but use alternative service providers such as check-cashing stores or payday lenders, the FDIC said in reporting the survey results. The agency says that about 30% of underbanked households use mobile devices to get into their accounts, compared with almost 22% of fully banked households.


“Mobile technologies might also become useful tools for bringing unbanked households into the financial mainstream,” the agency said. “Innovations such as mobile account opening could play a role in expanding access to banking for the unbanked.”


Smartphone tools


Access to smartphones is a chief reason mobile banking rates have increased. Almost one in four households reported using mobile devices with their accounts. Most often, that meant monitoring a balance or reviewing recent transactions. About a quarter of households used mobile apps to deposit a check. More than half of underbanked households said they used mobile text alerts compared to less than 45% of fully banked households.


The primary way people still gain access to their accounts is through tellers or online portals – about two out of three households listed one or the other as their usual way. Even though mobile apps are becoming more popular, these methods are still, by and large, most commonly used by the underbanked, the survey shows.


Mobile and online banking methods tend to supplement banking, rather than substituting for it entirely, according to the survey, which is done every other year. Those who primarily used online or mobile apps to access their accounts said they typically used additional methods as well, such as cash machines and branch visits.


Employment effects


The number of unbanked households dropped last year to 7.7%, representing more than 25 million Americans, from 8.2% in 2011 according to the survey, which measures the underserved population. The FDIC cited improving economic conditions and changing household demographics as the main contributing factors to this decrease. An unbanked household doesn’t hold an account at an insured financial institution, the agency said.


About one in five households, with more than 67 million people, were underbanked last year, according to the FDIC. The category is for those that have an insured account but that used an alternative service at least once in the past year. The proportion of underbanked households was unchanged from 2011.


Income and employment were the top factors in determining whether households held bank accounts. Slightly less than half of the unbanked previously had an account, but closed it following a job loss or a significant drop in income. About 10% reported becoming unbanked in the previous 12 months.


About 35% of unbanked households cited not enough money as the main reason they didn’t have an account. Dislike or distrust of banks as well as high or unpredictable account fees also were given as reasons for being unbanked.


Unbanked Americans increasingly use prepaid debit cards as a payment method and as an alternative to holding a bank account, the report shows. Prepaid card use grew to 27% of unbanked households last year from 12% in 2009.


Just as losing a job can lead to becoming unbanked, landing a new job and particularly the need for direct deposit of a payroll check often spurred unbanked households to open bank accounts, the agency said. Of the 1.6% of households that became banked in the previous 12 months, almost a quarter reported that a new job figured in the decision. More than a third – nearly 35% – said setting up a way to receive direct deposits was the main reason they opened a bank account.


Households with the highest unbanked rates included non-Asian minorities, people with lower incomes, and younger and unemployed residents, according to the survey. While the rates for most were fairly unchanged from 2011, the rate for Latino households dropped to about 18% last year from 20% in 2011. Higher levels of employment, income and education accounted for much of the decline.


Future possibilities


It’s more likely that currently unbanked households will open an account in the future if they’ve recently had a bank account – about 75% say they probably will as opposed to 25% among those who’ve never held an account and 43% that last had one more than a year ago.


There’s no doubt about it, mobile apps are helping to entice even the most wary among us back to banks. These apps showcase some of the most convenient and popular services, such as checking and savings account monitoring, making payments to your pals, finding a cash machine, depositing a check and paying bills. So if you’re part of the underbanked or unbanked population and own a smartphone, you may want to use it to change the way you manage your money – if you haven’t already.




Mobile baking photo via Shutterstock.


The post Mobile Apps Build Financial Inclusion Among Unbanked Americans appeared first on NerdWallet Credit Card Blog.






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

I Can’t Afford the Wage Garnishments on My Credit Card Debt — Help!

Wage garnishments for unpaid credit card debts have a way of kicking you when you’re down. If you struggled to make your payments before, you’re probably going through some tough financial times, and losing some of your paycheck to creditors can make life even more difficult. But if your wages are being garnished but you simply can’t afford them, there’s still help. Here are a few steps for appealing the garnishment.


Step 1: Know your rights


Wage garnishment laws vary by state, but by federal law, credit card companies can garnish at most 25% of your disposable income (your take-home pay after taxes, Social Security and insurance) or your disposable income above 30 times the federal minimum wage. These limits apply even if multiple creditors are taking a piece of your paycheck, but they don’t always apply for unpaid child support, back taxes and other debts.


Check your state’s laws as well, since many states protect your wages beyond federal guidelines.


Step 2: Talk to a financial counselor


When you’re trying to change a wage garnishment arrangement, it’s best to bring in backup. A financial counselor can help decide if and how you should appeal your garnishment, as well as make a plan for getting debt-free. He or she can probably provide some advice on how to make your money go further. If you can’t afford the financial counselor’s fees, ask if they use a sliding scale or provide free services to people earning below a certain income. Be sure to check any credit counseling agency against the U.S. Trustee Program as well as your state’s Attorney General to make sure that it’s legitimate.


Step 3: Formally object to the garnishment


You can also file a claim of exemption, which is a statement that you believe your garnishment should be changed or removed. One reason you can provide is that you can’t afford to live on your reduced wages. You might also be able to argue that your garnishment would be lower if it followed either state or federal guidelines.


If you’re in the military, you might have additional protection: Credit card garnishment is called an “involuntary allotment,” and you might be able to appeal those allotments. For example, you might be able to argue that you were serving overseas and therefore couldn’t make your court date.


Step 4: Consider bankruptcy


Bankruptcy is the nuclear option for debts that you can’t pay. Declaring Chapter 7 bankruptcy will get rid of most of your wage garnishments, but there are serious consequences for doing so. Bankruptcies can stay on your credit report for up to 10 years, making it difficult to qualify for and get good rates on car loans, new credit cards and mortgages. Declaring bankruptcy also involves going through debtor education courses, meeting with a judge and combing over your finances, so it’s hardly a quick fix.


If you’re struggling because your garnished wages aren’t enough to live on, you can and should try to work with your creditors and the legal system. Remember: If you declare bankruptcy, your creditors might never get repaid, so they might be willing to work out a more manageable plan. Wage garnishments can be changed, and you can get help.


No money image via Shutterstock


The post I Can’t Afford the Wage Garnishments on My Credit Card Debt — Help! appeared first on NerdWallet Credit Card Blog.






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

I Can’t Afford the Wage Garnishments on My Credit Card Debt — Help!




Wage garnishments for unpaid credit card debts have a way of kicking you when you’re down. If you struggled to make your payments before, you’re probably going through some tough financial times, and losing some of your paycheck to creditors can make life even more difficult. But if your wages are being garnished but you simply can’t afford them, there’s still help. Here are a few steps for appealing the garnishment.


Step 1: Know your rights


Wage garnishment laws vary by state, but by federal law, credit card companies can garnish at most 25% of your disposable income (your take-home pay after taxes, Social Security and insurance) or your disposable income above 30 times the federal minimum wage. These limits apply even if multiple creditors are taking a piece of your paycheck, but they don’t always apply for unpaid child support, back taxes and other debts.


Check your state’s laws as well, since many states protect your wages beyond federal guidelines.


Step 2: Talk to a financial counselor


When you’re trying to change a wage garnishment arrangement, it’s best to bring in backup. A financial counselor can help decide if and how you should appeal your garnishment, as well as make a plan for getting debt-free. He or she can probably provide some advice on how to make your money go further. If you can’t afford the financial counselor’s fees, ask if they use a sliding scale or provide free services to people earning below a certain income. Be sure to check any credit counseling agency against the U.S. Trustee Program as well as your state’s Attorney General to make sure that it’s legitimate.


Step 3: Formally object to the garnishment


You can also file a claim of exemption, which is a statement that you believe your garnishment should be changed or removed. One reason you can provide is that you can’t afford to live on your reduced wages. You might also be able to argue that your garnishment would be lower if it followed either state or federal guidelines.


If you’re in the military, you might have additional protection: Credit card garnishment is called an “involuntary allotment,” and you might be able to appeal those allotments. For example, you might be able to argue that you were serving overseas and therefore couldn’t make your court date.


Step 4: Consider bankruptcy


Bankruptcy is the nuclear option for debts that you can’t pay. Declaring Chapter 7 bankruptcy will get rid of most of your wage garnishments, but there are serious consequences for doing so. Bankruptcies can stay on your credit report for up to 10 years, making it difficult to qualify for and get good rates on car loans, new credit cards and mortgages. Declaring bankruptcy also involves going through debtor education courses, meeting with a judge and combing over your finances, so it’s hardly a quick fix.


If you’re struggling because your garnished wages aren’t enough to live on, you can and should try to work with your creditors and the legal system. Remember: If you declare bankruptcy, your creditors might never get repaid, so they might be willing to work out a more manageable plan. Wage garnishments can be changed, and you can get help.


No money image via Shutterstock


The post I Can’t Afford the Wage Garnishments on My Credit Card Debt — Help! appeared first on NerdWallet Credit Card Blog.






Source Article :http://bit.ly/1p2yemz

Mobile Banking Apps Ratchet Up Pressure on Bricks-and-Mortar Institutions




These days, you can do just about anything on your phone, including your banking. As online-only financial services providers such as Simple, Ally Bank and GoBank expand their products, more people are managing their money on the go or from the comfort of their homes.


More than half of American smartphone owners—51%—have used mobile banking services in the past year, up from 48% in the previous year, according to the Federal Reserve. In a survey this year by consulting firm Accenture, about a quarter of consumers who bank in the U.S. or Canada said they would consider signing up with a branchless online bank, while 94% of those 18 to 29 years old regularly do their banking online, and 72% have gone mobile.


Online encroachment


So where does this leave traditional banks and their bricks-and-mortar branches?


Because digital-only service providers don’t have to maintain and staff multiple locations, they cost less to run. This means that they can offer lower fees and interest rates. Simple customers, for instance, don’t pay any monthly or overdraft fees and aren’t required to maintain a minimum balance. Simple focuses on its mobile platform, so customers can do most transactions through their smartphones, including setting savings goals or writing and mailing a check.


Computer glitches affect online providers much as they do bricks-and-mortar banks. When Simple updated its system in August, about 10% of its 120,000 users lost access to their money, according to news reports at the time. Technology issues have blocked customers from even some of the biggest U.S. banks: In 2010, JPMorgan Chase’s online portal went out for three days. Although occasional technical issues can present a hurdle for online-only providers and their customers, the convenience they can offer, coupled with low costs, can still win over consumers.


In terms of basic services, digital-only providers aren’t all that different from bricks-and-mortar banks, especially as many of the larger institutions roll out their own online portals and mobile apps. In some cases, big banks have acquired or set up partnerships with the branchless upstarts. This year, for instance, Spain’s BBVA which also works with the Bancorp Bank to hold customers’ funds in Federal Deposit Insurance Corp.-backed accounts.


Making money


Like traditional banks, online-only providers make money through interchange fees paid by merchants for debit card swipes. Many, including Moven, offer customers fee-free access to tens of thousands of independently run cash machines, to counter big banks’ well-established ATM networks. If you need to send a paper check, though, doing it through digital-only banks may involve more time and effort than a traditional account would typically require.


As mobile banking becomes more popular, especially with younger adults, big banks as well as credit unions and community banks are beefing up their smartphone and online offerings and integrating more technology into their branches and ATMs. Some, including Wells Fargo and PNC Bank, are experimenting with smaller branches, while others have taken to putting teller windows in supermarkets, all to make in-person banking more streamlined and convenient.


If you don’t have a smartphone or tablet, or find it difficult to navigate pages and make transactions on a small screen, mobile banking might not be the right choice for you. But for those who love their smartphones, these mobile banking services are good news: As long as you can connect to the Internet, you’re good to go.




Tug-of-war image via Shutterstock.


The post Mobile Banking Apps Ratchet Up Pressure on Bricks-and-Mortar Institutions appeared first on NerdWallet Credit Card Blog.






Source Article :http://bit.ly/132o1w7

Mobile Banking Apps Ratchet Up Pressure on Bricks-and-Mortar Institutions

These days, you can do just about anything on your phone, including your banking. As online-only financial services providers such as Simple, Ally Bank and GoBank expand their products, more people are managing their money on the go or from the comfort of their homes.


More than half of American smartphone owners—51%—have used mobile banking services in the past year, up from 48% in the previous year, according to the Federal Reserve. In a survey this year by consulting firm Accenture, about a quarter of consumers who bank in the U.S. or Canada said they would consider signing up with a branchless online bank, while 94% of those 18 to 29 years old regularly do their banking online, and 72% have gone mobile.


Online encroachment


So where does this leave traditional banks and their bricks-and-mortar branches?


Because digital-only service providers don’t have to maintain and staff multiple locations, they cost less to run. This means that they can offer lower fees and interest rates. Simple customers, for instance, don’t pay any monthly or overdraft fees and aren’t required to maintain a minimum balance. Simple focuses on its mobile platform, so customers can do most transactions through their smartphones, including setting savings goals or writing and mailing a check.


Computer glitches affect online providers much as they do bricks-and-mortar banks. When Simple updated its system in August, about 10% of its 120,000 users lost access to their money, according to news reports at the time. Technology issues have blocked customers from even some of the biggest U.S. banks: In 2010, JPMorgan Chase’s online portal went out for three days. Although occasional technical issues can present a hurdle for online-only providers and their customers, the convenience they can offer, coupled with low costs, can still win over consumers.


In terms of basic services, digital-only providers aren’t all that different from bricks-and-mortar banks, especially as many of the larger institutions roll out their own online portals and mobile apps. In some cases, big banks have acquired or set up partnerships with the branchless upstarts. This year, for instance, Spain’s BBVA which also works with the Bancorp Bank to hold customers’ funds in Federal Deposit Insurance Corp.-backed accounts.


Making money


Like traditional banks, online-only providers make money through interchange fees paid by merchants for debit card swipes. Many, including Moven, offer customers fee-free access to tens of thousands of independently run cash machines, to counter big banks’ well-established ATM networks. If you need to send a paper check, though, doing it through digital-only banks may involve more time and effort than a traditional account would typically require.


As mobile banking becomes more popular, especially with younger adults, big banks as well as credit unions and community banks are beefing up their smartphone and online offerings and integrating more technology into their branches and ATMs. Some, including Wells Fargo and PNC Bank, are experimenting with smaller branches, while others have taken to putting teller windows in supermarkets, all to make in-person banking more streamlined and convenient.


If you don’t have a smartphone or tablet, or find it difficult to navigate pages and make transactions on a small screen, mobile banking might not be the right choice for you. But for those who love their smartphones, these mobile banking services are good news: As long as you can connect to the Internet, you’re good to go.




Tug-of-war image via Shutterstock.


The post Mobile Banking Apps Ratchet Up Pressure on Bricks-and-Mortar Institutions appeared first on NerdWallet Credit Card Blog.






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

5 Ways Credit Card Debt Could Wreck Your Finances




There’s no doubt about it: Avoiding credit card debt is a smart financial move. But have you ever stopped to consider exactly why credit card debt is so bad? As it turns out, it can lead to consequences a lot more serious than just big interest payments.


Here are 5 ways credit card debt could wreck your finances — consider yourself warned!


1. Above all, there’s a huge opportunity cost to paying all that interest


Yes, credit cards generally charge double-digit APRs and carrying a balance from month to month will result in big bucks washed down the drain on interest payments. But it’s not just this wasted money that’s bad news for your financial picture – it’s also the opportunity cost of shelling out all that cash.


For instance, if you’re paying hundreds in interest on your credit card debt every year, then you’re not using that cash to pay for a class that will increase your earning potential. You’re not using those hundreds as seed money to start a business. Heck, you’re not using the money to taking a needed vacation that will prevent burnout at work. So it’s more than just the money that you’re paying in interest, per se – credit card debt interferes with your ability to put your money to better use.


Looking for more specific examples of this? Read on.


2. Huge payments could make it hard to save for emergencies


Building up a reserve fund of 3-6 months of living expenses is a good way to protect yourself from the financial fallout of life’s inevitable emergencies. But for most people, 3-6 months of expenses represents several thousand in cash, and saving it up takes time even under the best circumstances.


If you’re making huge payments on a pile of credit card debt, you’re not going to be able to devote much of your monthly pay to emergency savings. This could leave you vulnerable to serious financial strain if a large, unexpected expense arises. Looked at through this lens, it’s easy to see how credit card debt really jeopardizes your future financial stability.


3. You’ll be discouraged from investing


When there’s a choice to be made between paying down credit card debt and investing, most people choose paying down debt. This is undoubtedly a reasonable choice. After all, market returns aren’t guaranteed. But the double-digit savings on interest you’ll see if you eliminate your credit card debt is.


However, the longer you delay investing as you toss your excess cash at your credit card balance, the harder it’s going to be to build a big enough nest egg to retire. Since most people don’t have employer-sponsored pension plans these days, our own funds are all we’ve got. You could be facing a serious financial crisis in your golden years if you let credit card debt slow down your wealth-building today.


4. It could hurt your credit, which makes all other loans more expensive


A factor that heavily influences the 30% of your FICO score that’s determined by “amounts owed” is a number known as your credit utilization ratio. This is the total amount you owe on your credit cards compared with your credit limit. If your credit card debt is pushing your credit utilization ratio above 30%, you should expect your score to suffer.


The problem here is that a low FICO score will cause any new loans that you take out to carry a higher interest rate. Consequently, your monthly payments will be higher, and this further cuts into your ability to use your income for saving and investing.


In short, credit card debt is a double-whammy: It’s expensive on its own, but it causes other products to become costlier, too. Shelling out so much cash every month makes getting to a financially comfortable place hard for most folks.


5. If you end up in bankruptcy, your earning potential might be limited


It’s not uncommon for employers to check potential employees’ credit reports before extending a job offer. If you end up filing for bankruptcy because of credit card debt and your boss sees this during a routine background check, there’s the possibility the promotion you’re after could go to someone else.


Although indirect, by interfering with your employability, a past credit card debt disaster could hurt your earning potential. So hopefully it’s clear – from this example and the others above – that getting in over your head with credit cards is bad news for reasons way beyond just big interest payments. If you don’t make an effort to pay off your debt now, your financial future could be at stake.


Wrecking ball image via Shutterstock


The post 5 Ways Credit Card Debt Could Wreck Your Finances appeared first on NerdWallet Credit Card Blog.






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

5 Ways Credit Card Debt Could Wreck Your Finances

There’s no doubt about it: Avoiding credit card debt is a smart financial move. But have you ever stopped to consider exactly why credit card debt is so bad? As it turns out, it can lead to consequences a lot more serious than just big interest payments.


Here are 5 ways credit card debt could wreck your finances — consider yourself warned!


1. Above all, there’s a huge opportunity cost to paying all that interest


Yes, credit cards generally charge double-digit APRs and carrying a balance from month to month will result in big bucks washed down the drain on interest payments. But it’s not just this wasted money that’s bad news for your financial picture – it’s also the opportunity cost of shelling out all that cash.


For instance, if you’re paying hundreds in interest on your credit card debt every year, then you’re not using that cash to pay for a class that will increase your earning potential. You’re not using those hundreds as seed money to start a business. Heck, you’re not using the money to taking a needed vacation that will prevent burnout at work. So it’s more than just the money that you’re paying in interest, per se – credit card debt interferes with your ability to put your money to better use.


Looking for more specific examples of this? Read on.


2. Huge payments could make it hard to save for emergencies


Building up a reserve fund of 3-6 months of living expenses is a good way to protect yourself from the financial fallout of life’s inevitable emergencies. But for most people, 3-6 months of expenses represents several thousand in cash, and saving it up takes time even under the best circumstances.


If you’re making huge payments on a pile of credit card debt, you’re not going to be able to devote much of your monthly pay to emergency savings. This could leave you vulnerable to serious financial strain if a large, unexpected expense arises. Looked at through this lens, it’s easy to see how credit card debt really jeopardizes your future financial stability.


3. You’ll be discouraged from investing


When there’s a choice to be made between paying down credit card debt and investing, most people choose paying down debt. This is undoubtedly a reasonable choice. After all, market returns aren’t guaranteed. But the double-digit savings on interest you’ll see if you eliminate your credit card debt is.


However, the longer you delay investing as you toss your excess cash at your credit card balance, the harder it’s going to be to build a big enough nest egg to retire. Since most people don’t have employer-sponsored pension plans these days, our own funds are all we’ve got. You could be facing a serious financial crisis in your golden years if you let credit card debt slow down your wealth-building today.


4. It could hurt your credit, which makes all other loans more expensive


A factor that heavily influences the 30% of your FICO score that’s determined by “amounts owed” is a number known as your credit utilization ratio. This is the total amount you owe on your credit cards compared with your credit limit. If your credit card debt is pushing your credit utilization ratio above 30%, you should expect your score to suffer.


The problem here is that a low FICO score will cause any new loans that you take out to carry a higher interest rate. Consequently, your monthly payments will be higher, and this further cuts into your ability to use your income for saving and investing.


In short, credit card debt is a double-whammy: It’s expensive on its own, but it causes other products to become costlier, too. Shelling out so much cash every month makes getting to a financially comfortable place hard for most folks.


5. If you end up in bankruptcy, your earning potential might be limited


It’s not uncommon for employers to check potential employees’ credit reports before extending a job offer. If you end up filing for bankruptcy because of credit card debt and your boss sees this during a routine background check, there’s the possibility the promotion you’re after could go to someone else.


Although indirect, by interfering with your employability, a past credit card debt disaster could hurt your earning potential. So hopefully it’s clear – from this example and the others above – that getting in over your head with credit cards is bad news for reasons way beyond just big interest payments. If you don’t make an effort to pay off your debt now, your financial future could be at stake.


Wrecking ball image via Shutterstock


The post 5 Ways Credit Card Debt Could Wreck Your Finances appeared first on NerdWallet Credit Card Blog.






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

5 Reasons Your Credit Score Is More Important Than Your GPA




If you’re a college student, you’re probably working hard to keep your grade point average looking sharp. After all, your GPA could be your ticket to graduate school, a competitive internship or maybe even your dream job.


But if you’re hitting the books so hard that you’re ignoring another important number – your credit score – you could be making a huge mistake. It might be hard to believe, your three-digit credit score is more important than your GPA. Not sure why? Check out the five reasons below.


1. It determines the cost of future purchases


It’s true that your GPA could determine certain aspects of your future, but your credit score is guaranteed to influence one thing – the cost of most of the big purchases you’re going to make after graduation.


Here’s why: Lenders and insurance agents (among others) look at your credit score when they’re figuring out how to price the products they’re selling you. For instance, when you apply for your first car loan, the bank you’re working with will run a credit check to decide how much to charge you in interest on the auto note. A low credit score will mean paying a much higher interest rate. This, of course, will make the cost of the loan higher overall.


A high GPA might open the door to academic opportunities, but a high credit score will keep more cash in your wallet. This is much more important once you’ve left school behind.


2. Once your score goes south, it takes much longer to improve


A bad semester could have a negative impact on your GPA, which is certainly stressful. But it’s relatively easy to revive your average the following term if you buckle down and study hard. In other words, a few bad moves can be corrected pretty quickly.


Not so with your credit score. Messing up just once could result in a serious loss of points that will take a long time to correct. For instance, if you don’t pay a bill and it goes into collections, you’ll lose a lot of points from your credit score – perhaps as many as 100. But there’s no extra credit or big exam to ace that will help it you get these points back quickly. You’ll have to demonstrate years of positive payment history to get your score back to good form.


We’re certainly not suggesting you should take your GPA lightly, but it’s important to remember that your credit score is less forgiving – this is why prioritizing it is a smart long-term move.


3. It’s almost impossible to put a bad score behind you


When you’re an undergraduate, it’s hard to think about much else beyond your four years in school. But there is a wide world out there beyond your bachelor’s degree, and within a few years of graduation, your GPA loses a lot of its importance. Pretty soon, potential employers will be much more interested in your past job performance than how you did in your freshman composition course.


But your credit score will follow you everywhere you go, for the rest of your adult life. Since it’s checked under so many circumstances, there’s not point in time when it will stop mattering, the way your GPA probably will. You’ll need it, and need it to be good, for as long as you’re participating in our financial system.


Again, this goes to show that the importance of working toward good credit might be slightly greater than the importance of working toward good grades.


4. It will influence your ability to find a place to live


When it comes to basic human needs, shelter is at the top of the list. Your GPA isn’t going to be very helpful when it comes to find a decent place to live, but a good credit score certainly will be.


This is because most landlords will check your credit score as part of the rental application process, and many simply won’t accept tenants with bad scores. Of course, the same is true if you’re thinking of buying a home. If you don’t have good credit, qualifying for a mortgage will be nearly impossible.


So no matter what, building and maintaining good credit will affect your ability to find housing. This reality alone should convince you that it’s at least a little more important than your grades.


5. It could put a crimp in your romantic relationships


It might seem strange, but your credit score (unlike your GPA) could have an impact on your dating life. According to a 2014 NerdWallet analysis, 53% of single adults over age 25 are “somewhat less likely” or “much less likely” to date someone with bad credit.


Unless you’re habitually dating very pretentious people, it’s highly unlikely that your GPA will be a considered a deal breaker by potential mates. But most young adults quickly realize that bad credit limits their options and don’t want to get serious with someone who might hold them back. So once again, credit score trumps GPA in terms of long-term importance.


Final words of advice: Since having good credit is a bigger deal than you thought, you’re probably wondering how you can improve yours. Here are a few tips:



  • Pay your bills on time.

  • Avoid credit card debt, and definitely avoid maxing out a credit card.

  • Start establishing a credit history as soon as you can. The easiest way to do this is by getting a credit card early and using it responsibly.

  • Don’t apply for too much credit at once.

  • Check your credit reports at least once per year; if you spot a mistake, have it corrected as soon as you can.


If you follow these tips, you’ll be on your way to a bright future – academically and financially, of course!


Study image via Shutterstock


The post 5 Reasons Your Credit Score Is More Important Than Your GPA appeared first on NerdWallet Credit Card Blog.






Source Article :http://bit.ly/1zpwQ1o

5 Reasons Your Credit Score Is More Important Than Your GPA

If you’re a college student, you’re probably working hard to keep your grade point average looking sharp. After all, your GPA could be your ticket to graduate school, a competitive internship or maybe even your dream job.


But if you’re hitting the books so hard that you’re ignoring another important number – your credit score – you could be making a huge mistake. It might be hard to believe, your three-digit credit score is more important than your GPA. Not sure why? Check out the five reasons below.


1. It determines the cost of future purchases


It’s true that your GPA could determine certain aspects of your future, but your credit score is guaranteed to influence one thing – the cost of most of the big purchases you’re going to make after graduation.


Here’s why: Lenders and insurance agents (among others) look at your credit score when they’re figuring out how to price the products they’re selling you. For instance, when you apply for your first car loan, the bank you’re working with will run a credit check to decide how much to charge you in interest on the auto note. A low credit score will mean paying a much higher interest rate. This, of course, will make the cost of the loan higher overall.


A high GPA might open the door to academic opportunities, but a high credit score will keep more cash in your wallet. This is much more important once you’ve left school behind.


2. Once your score goes south, it takes much longer to improve


A bad semester could have a negative impact on your GPA, which is certainly stressful. But it’s relatively easy to revive your average the following term if you buckle down and study hard. In other words, a few bad moves can be corrected pretty quickly.


Not so with your credit score. Messing up just once could result in a serious loss of points that will take a long time to correct. For instance, if you don’t pay a bill and it goes into collections, you’ll lose a lot of points from your credit score – perhaps as many as 100. But there’s no extra credit or big exam to ace that will help it you get these points back quickly. You’ll have to demonstrate years of positive payment history to get your score back to good form.


We’re certainly not suggesting you should take your GPA lightly, but it’s important to remember that your credit score is less forgiving – this is why prioritizing it is a smart long-term move.


3. It’s almost impossible to put a bad score behind you


When you’re an undergraduate, it’s hard to think about much else beyond your four years in school. But there is a wide world out there beyond your bachelor’s degree, and within a few years of graduation, your GPA loses a lot of its importance. Pretty soon, potential employers will be much more interested in your past job performance than how you did in your freshman composition course.


But your credit score will follow you everywhere you go, for the rest of your adult life. Since it’s checked under so many circumstances, there’s not point in time when it will stop mattering, the way your GPA probably will. You’ll need it, and need it to be good, for as long as you’re participating in our financial system.


Again, this goes to show that the importance of working toward good credit might be slightly greater than the importance of working toward good grades.


4. It will influence your ability to find a place to live


When it comes to basic human needs, shelter is at the top of the list. Your GPA isn’t going to be very helpful when it comes to find a decent place to live, but a good credit score certainly will be.


This is because most landlords will check your credit score as part of the rental application process, and many simply won’t accept tenants with bad scores. Of course, the same is true if you’re thinking of buying a home. If you don’t have good credit, qualifying for a mortgage will be nearly impossible.


So no matter what, building and maintaining good credit will affect your ability to find housing. This reality alone should convince you that it’s at least a little more important than your grades.


5. It could put a crimp in your romantic relationships


It might seem strange, but your credit score (unlike your GPA) could have an impact on your dating life. According to a 2014 NerdWallet analysis, 53% of single adults over age 25 are “somewhat less likely” or “much less likely” to date someone with bad credit.


Unless you’re habitually dating very pretentious people, it’s highly unlikely that your GPA will be a considered a deal breaker by potential mates. But most young adults quickly realize that bad credit limits their options and don’t want to get serious with someone who might hold them back. So once again, credit score trumps GPA in terms of long-term importance.


Final words of advice: Since having good credit is a bigger deal than you thought, you’re probably wondering how you can improve yours. Here are a few tips:



  • Pay your bills on time.

  • Avoid credit card debt, and definitely avoid maxing out a credit card.

  • Start establishing a credit history as soon as you can. The easiest way to do this is by getting a credit card early and using it responsibly.

  • Don’t apply for too much credit at once.

  • Check your credit reports at least once per year; if you spot a mistake, have it corrected as soon as you can.


If you follow these tips, you’ll be on your way to a bright future – academically and financially, of course!


Study image via Shutterstock


The post 5 Reasons Your Credit Score Is More Important Than Your GPA appeared first on NerdWallet Credit Card Blog.






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

ATM Innovations Help Banks Keep Customers Coming Back

Cash machines are about to become a whole lot smarter.


Manufacturers such as Diebold are leveraging technology to appeal to consumers who demand a more advanced digital experience and better on-the-go access. But as nonbank networks of automated teller machines (ATMs) sprout new features, financial institutions are responding with additional functions of their own as a way to keep you coming back.


The second most common way of interacting with a financial institution – after visiting a branch – is using an ATM, according to a 2014 Federal Reserve study. As mobile apps and online links expand the capabilities of nonbank cash machines beyond their traditional functions, pressure is increasing on banks and credit unions to develop competitive services.


Currently, more than 2.2 million ATMs provide services worldwide. Diebold, one of the premier producers of the machines, is rolling out a new model that takes its cue from mobile and online applications with expanded features. It includes a virtual video help desk, a finger-vein scanner, encryption technology and a touchless card reader for added security.


ATM evolution


ATM features have evolved marginally since the first one in the U.S. – the Docuteller – began dispensing cash in 1969 from a location in Rockville Centre, New York. By 1971, Total Teller machines could take deposits and transfer money between accounts. Until 1974, when it began producing ATMs, Diebold mostly made safes and vaults. Before long, cash machines permeated the culture of personal finance and could be found anywhere from big-name banks to standalone units in corner stores.


Now, ATMs are no longer seen as only cash-dispensing, check-depositing and money-transferring tools, but as all-in-one digital banking outposts offering multi-channel uses to customers.


Organizations such as the ATM Industry Association are recognizing the changing needs of consumers. The association created the U.S. Underbanked Forum earlier this year to develop nontraditional ways the machines can serve consumers with only basic checking accounts or who don’t have access to other mainstream financial services.


Some ATM manufacturers are already finding ways to reach tech-savvy customers by pairing ATM capabilities with smartphone apps, for instance. In 2012, NCR came up with software that works through mobile banking apps to let you order a cash withdrawal before arriving at the ATM. Customers use a mobile app to choose the amount of their transaction, then through an embedded NCR function, can scan the 2D barcode on any participating ATM screen to get the cash. The method saves time and is more secure, as it doesn’t require the use of a bank card.


Another nonbank network upping the ante for financial institutions through innovation is Cardtronics, the world’s largest retail ATM owner-operator. The company recently began providing a smartphone app, digital rewards and discount coupons consumers can scan and use immediately through a cash machine network in the Phoenix area. The technology pilot program at 17 Fresh & Easy grocery stores uses a second digital screen atop each ATM that displays in-store discounts and incentives, plus local weather.


As with bank branches that keep a ready store of cash on hand, ATMs attract thieves, and some are ingenious.


Skimming schemes


Card skimming at ATMs began to pick up steam in the early 2000s as criminals stole bank account information by using devices surreptitiously attached to the machines. The process is simple: Criminals install a skimmer on an ATM that captures the data on an inserted card’s magnetic strip, while another device may be used to record the personal identification number (PIN) needed to gain access to the account. Then a duplicate card can be made and used to rob the account.


ATMs are also vulnerable to other forms of theft, such as currency trapping and fishing, in which thieves capture bills dispensed during a transaction. They use hooks or devices attached to the machine to block the currency from coming out, then stop by later to collect it. Some hackers have installed malicious software that gives them control of the machine to copy account numbers and PINs.


Cash machine manufacturers are just beginning to change their designs to combat these types of breaches and make transactions more secure, such as Diebold’s finger-vein reader. The company’s 5500 series ATMs also provide smartphone app compatibility and come equipped with anti-skimming card readers and encryption technology. The machines can be hooked up to provide two-way video that lets consumers connect with a remote bank representative. The video link enables the machine to act as a call center where customers can ask questions, get support and process some transactions.


Banks respond


While enhanced ATMs make it easier to avoid entering a branch, banks aren’t sitting still. Bank of America, for instance, has cash machines linked to live remote tellers who can help with more transactions even when nearby branches are closed. At selected ATMs, you can get help depositing checks and getting cash back, splitting a deposit into two or more accounts and making loan or credit card payments. While there are still other banking functions – such as more complex transactions – that haven’t made it to bank ATMs, the potential is there.


At some Wells Fargo cash machines, you can get postage stamps and deposit checks and cash without using envelopes – the machine just scans in the bills and paper. Some automatically display your most-frequent transaction types as favorite buttons to help speed things up.


Whether they’re run by nonbank networks or financial institutions, ATMs are changing to keep up Americans’ preference for mobile and online banking and to stay relevant to their needs.




ATM customer photo via Shutterstock.


The post ATM Innovations Help Banks Keep Customers Coming Back appeared first on NerdWallet Credit Card Blog.






Source Article http://alleasyscholarships.blogspot.com

ATM Innovations Help Banks Keep Customers Coming Back




Cash machines are about to become a whole lot smarter.


Manufacturers such as Diebold are leveraging technology to appeal to consumers who demand a more advanced digital experience and better on-the-go access. But as nonbank networks of automated teller machines (ATMs) sprout new features, financial institutions are responding with additional functions of their own as a way to keep you coming back.


The second most common way of interacting with a financial institution – after visiting a branch – is using an ATM, according to a 2014 Federal Reserve study. As mobile apps and online links expand the capabilities of nonbank cash machines beyond their traditional functions, pressure is increasing on banks and credit unions to develop competitive services.


Currently, more than 2.2 million ATMs provide services worldwide. Diebold, one of the premier producers of the machines, is rolling out a new model that takes its cue from mobile and online applications with expanded features. It includes a virtual video help desk, a finger-vein scanner, encryption technology and a touchless card reader for added security.


ATM evolution


ATM features have evolved marginally since the first one in the U.S. – the Docuteller – began dispensing cash in 1969 from a location in Rockville Centre, New York. By 1971, Total Teller machines could take deposits and transfer money between accounts. Until 1974, when it began producing ATMs, Diebold mostly made safes and vaults. Before long, cash machines permeated the culture of personal finance and could be found anywhere from big-name banks to standalone units in corner stores.


Now, ATMs are no longer seen as only cash-dispensing, check-depositing and money-transferring tools, but as all-in-one digital banking outposts offering multi-channel uses to customers.


Organizations such as the ATM Industry Association are recognizing the changing needs of consumers. The association created the U.S. Underbanked Forum earlier this year to develop nontraditional ways the machines can serve consumers with only basic checking accounts or who don’t have access to other mainstream financial services.


Some ATM manufacturers are already finding ways to reach tech-savvy customers by pairing ATM capabilities with smartphone apps, for instance. In 2012, NCR came up with software that works through mobile banking apps to let you order a cash withdrawal before arriving at the ATM. Customers use a mobile app to choose the amount of their transaction, then through an embedded NCR function, can scan the 2D barcode on any participating ATM screen to get the cash. The method saves time and is more secure, as it doesn’t require the use of a bank card.


Another nonbank network upping the ante for financial institutions through innovation is Cardtronics, the world’s largest retail ATM owner-operator. The company recently began providing a smartphone app, digital rewards and discount coupons consumers can scan and use immediately through a cash machine network in the Phoenix area. The technology pilot program at 17 Fresh & Easy grocery stores uses a second digital screen atop each ATM that displays in-store discounts and incentives, plus local weather.


As with bank branches that keep a ready store of cash on hand, ATMs attract thieves, and some are ingenious.


Skimming schemes


Card skimming at ATMs began to pick up steam in the early 2000s as criminals stole bank account information by using devices surreptitiously attached to the machines. The process is simple: Criminals install a skimmer on an ATM that captures the data on an inserted card’s magnetic strip, while another device may be used to record the personal identification number (PIN) needed to gain access to the account. Then a duplicate card can be made and used to rob the account.


ATMs are also vulnerable to other forms of theft, such as currency trapping and fishing, in which thieves capture bills dispensed during a transaction. They use hooks or devices attached to the machine to block the currency from coming out, then stop by later to collect it. Some hackers have installed malicious software that gives them control of the machine to copy account numbers and PINs.


Cash machine manufacturers are just beginning to change their designs to combat these types of breaches and make transactions more secure, such as Diebold’s finger-vein reader. The company’s 5500 series ATMs also provide smartphone app compatibility and come equipped with anti-skimming card readers and encryption technology. The machines can be hooked up to provide two-way video that lets consumers connect with a remote bank representative. The video link enables the machine to act as a call center where customers can ask questions, get support and process some transactions.


Banks respond


While enhanced ATMs make it easier to avoid entering a branch, banks aren’t sitting still. Bank of America, for instance, has cash machines linked to live remote tellers who can help with more transactions even when nearby branches are closed. At selected ATMs, you can get help depositing checks and getting cash back, splitting a deposit into two or more accounts and making loan or credit card payments. While there are still other banking functions – such as more complex transactions – that haven’t made it to bank ATMs, the potential is there.


At some Wells Fargo cash machines, you can get postage stamps and deposit checks and cash without using envelopes – the machine just scans in the bills and paper. Some automatically display your most-frequent transaction types as favorite buttons to help speed things up.


Whether they’re run by nonbank networks or financial institutions, ATMs are changing to keep up Americans’ preference for mobile and online banking and to stay relevant to their needs.




ATM customer photo via Shutterstock.


The post ATM Innovations Help Banks Keep Customers Coming Back appeared first on NerdWallet Credit Card Blog.






Source Article :http://bit.ly/1wfo83w

Chase and Apple Pay: Will I Be Able to Use My Credit Card?

With the flurry of excitement surrounding Apple’s recent announcement of several new products and services, you might be wondering: Chase and Apple Pay — will I be able to use my credit card?


In a word, yes. When the mobile payment system hits the scene in October 2014, you can count on being able to use your Chase credit or debit card to pay with just one touch (if you have an iPhone 6 or iPhone 6 Plus, of course). Ready to learn more? Let’s take a look at the details.


About Apple Pay


When Apple Pay was announced at the company’s big unveiling event on Sept. 9, 2014, most folks in the technology world reacted with excitement, but not surprise. The mobile payment service was hotly anticipated, and now that it’s finally coming online, many expect it to change the way we pay forever.


If you’re not familiar with how Apple Pay works, it’s fairly straightforward: First, you’ll load your payment and store loyalty cards into the Passbook application. Reportedly, this will simply involve taking a picture of each of your cards and uploading it to the app. If you typically use one card to pay for most of your purchases, you can select it as the default when you put its information into Passbook.


Then, if you’re shopping in a store that supports Apple Pay (see below), you’ll hold your iPhone 6 or iPhone 6 Plus in close proximity to the payment terminal and make your payment with a tap of your finger. This touch will both verify your identity using Touch ID technology and authorize the card you’ve selected to be charged.


Because Apple Pay works with payment terminals by using near field communication (NFC) technology and comes with several layers of security built into each transaction, most experts expect it to be a safer way to pay than our current swipe-and-sign system.


As of October 2014, Apple Pay will be accepted at over 220,000 brick-and-mortar retailers nationwide, including:



  • Walgreens

  • Whole Foods

  • Macy’s

  • McDonalds

  • Bloomingdales


You’ll also be able to use Apple Pay with some popular apps, including:



  • Starbucks

  • Target

  • OpenTable

  • Groupon

  • Uber


A few of our favorite credit cards from Chase


Not all credit card issuers are on board with Apple Pay just yet, but if you’re a Chase cardholder, you’re in luck. You’ll be able to use your credit card with the new mobile payment system as soon as it hits the scene, assuming you’ve purchased an iPhone 6 or iPhone 6 Plus, too.


Remember, you don’t have to worry about missing out on perks or rewards when you use your Chase card with Apple Pay. Every time you authorize a mobile payment, it’s just as if you’d swiped the card. You’ll keep racking up the Ultimate Rewards points every time you touch!


The Nerds weren’t yet able to confirm with Chase if all of their consumer cards will be Apple Pay compatible, so be sure to check with them if you have questions. In the meantime, here are a few of our favorite Chase cards:


Chase Freedom®


The Chase Freedom® is one of our favorite cash-back cards on the market, and it’s easy to see why. With it, you’ll earn 5% cash back in rotating quarterly bonus categories, up to $1,500 spent per quarter. You’ll also earn unlimited 1% cash back on all other purchases. All this comes with a $0 annual fee – what’s not to love?













Chase Freedom®


Chase Freedom - $100 Cash Back Credit Card

Apply Now

on Chase's

secure website



starstarstarstarstar


  • Earn a $100 Bonus after you spend $500 on purchases in your first 3 months from account opening

  • Earn a $25 Bonus after you add your first authorized user and make a purchase within this same 3-month period

  • 0% Intro APR for 15 months on purchases and balance transfers. After the intro period, a variable APR of 13.99%-22.99%

  • 5% Cash Back on up to $1,500 in combined purchases between October 1 — December 31, 2014 at Amazon.com, Zappos.com and select department stores

  • You'll enjoy new 5% categories every 3 months like gas stations, restaurants and Amazon.com. It's free and easy to activate your bonus each quarter!

  • Unlimited 1% Cash Back on all other purchases

  • No annual fee and rewards never expire










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  • Bonus cash back categories

  • No annual fee

  • 0% for 15 mos on transfers

















Annual FeeSignup BonusAPR , Variable*APR Promotions
$0Get a $100 Bonus after spending $500 on purchases in your first 3 months from account opening.13.99% - 22.99% (Variable)0% APR for 15 months on purchases and balance transfers

Chase Sapphire Preferred® Card


The Chase Sapphire Preferred® Card is a great choice for travelers. With it, you’ll earn 2 points per dollar spent on travel and dining in restaurants and 1 point per dollar spent on all other purchases. Ultimate Rewards points are generally worth $.01 apiece, but their value jumps 25% when you redeem for travel through the Ultimate Rewards portal. And remember, with the Chase Sapphire Preferred® Card you also have the option to transfer your points to a participating frequent traveler program at a 1:1 ratio.


The Chase Sapphire Preferred® Card will get you started with a stellar signup bonus: Earn 40,000 bonus points after you spend $3,000 in the first 3 months. It charges an Introductory Annual Fee of $0 the first year, then $95. But if you spend a lot on dining and travel, we think this is a small price to pay.













Chase Sapphire Preferred® Card


Chase Sapphire Preferred Credit Card

Apply Now

on Chase's

secure website



starstarstarstarstar


  • Earn 40,000 bonus points when you spend $3,000 on purchases in the first 3 months from account opening. That's $500 in travel when you redeem through Chase Ultimate RewardsSM.

  • Earn 5,000 bonus points after you add the first authorized user and make a purchase in the first 3 months from account opening.

  • 2X points on travel and dining at restaurants & 1 point per dollar spent on all other purchases

  • No foreign transaction fees, plus Chip and Signature enabled for international travel.

  • 1:1 point transfer to leading frequent travel programs at full value — that means 1,000 Ultimate Rewards points equal 1,000 partner miles/points.

  • 24/7 direct access to dedicated customer service specialists

  • Introductory Annual Fee of $0 the first year, then $95
















thumbsupPros


  • No foreign transaction fee


thumbsdownCons


  • Has annual fee

















Annual FeeSignup BonusAPR , Variable*APR Promotions
Introductory Annual Fee of $0 the first year, then $95.Earn 40,000 bonus points after you spend $3,000 in the first 3 months.15.99% (Variable)Purchase: None

Transfer: None

iPhone 6 image via Shutterstock


The post Chase and Apple Pay: Will I Be Able to Use My Credit Card? appeared first on NerdWallet Credit Card Blog.






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Chase and Apple Pay: Will I Be Able to Use My Credit Card?




With the flurry of excitement surrounding Apple’s recent announcement of several new products and services, you might be wondering: Chase and Apple Pay — will I be able to use my credit card?


In a word, yes. When the mobile payment system hits the scene in October 2014, you can count on being able to use your Chase credit or debit card to pay with just one touch (if you have an iPhone 6 or iPhone 6 Plus, of course). Ready to learn more? Let’s take a look at the details.


About Apple Pay


When Apple Pay was announced at the company’s big unveiling event on Sept. 9, 2014, most folks in the technology world reacted with excitement, but not surprise. The mobile payment service was hotly anticipated, and now that it’s finally coming online, many expect it to change the way we pay forever.


If you’re not familiar with how Apple Pay works, it’s fairly straightforward: First, you’ll load your payment and store loyalty cards into the Passbook application. Reportedly, this will simply involve taking a picture of each of your cards and uploading it to the app. If you typically use one card to pay for most of your purchases, you can select it as the default when you put its information into Passbook.


Then, if you’re shopping in a store that supports Apple Pay (see below), you’ll hold your iPhone 6 or iPhone 6 Plus in close proximity to the payment terminal and make your payment with a tap of your finger. This touch will both verify your identity using Touch ID technology and authorize the card you’ve selected to be charged.


Because Apple Pay works with payment terminals by using near field communication (NFC) technology and comes with several layers of security built into each transaction, most experts expect it to be a safer way to pay than our current swipe-and-sign system.


As of October 2014, Apple Pay will be accepted at over 220,000 brick-and-mortar retailers nationwide, including:



  • Walgreens

  • Whole Foods

  • Macy’s

  • McDonalds

  • Bloomingdales


You’ll also be able to use Apple Pay with some popular apps, including:



  • Starbucks

  • Target

  • OpenTable

  • Groupon

  • Uber


A few of our favorite credit cards from Chase


Not all credit card issuers are on board with Apple Pay just yet, but if you’re a Chase cardholder, you’re in luck. You’ll be able to use your credit card with the new mobile payment system as soon as it hits the scene, assuming you’ve purchased an iPhone 6 or iPhone 6 Plus, too.


Remember, you don’t have to worry about missing out on perks or rewards when you use your Chase card with Apple Pay. Every time you authorize a mobile payment, it’s just as if you’d swiped the card. You’ll keep racking up the Ultimate Rewards points every time you touch!


The Nerds weren’t yet able to confirm with Chase if all of their consumer cards will be Apple Pay compatible, so be sure to check with them if you have questions. In the meantime, here are a few of our favorite Chase cards:


Chase Freedom®


The Chase Freedom® is one of our favorite cash-back cards on the market, and it’s easy to see why. With it, you’ll earn 5% cash back in rotating quarterly bonus categories, up to $1,500 spent per quarter. You’ll also earn unlimited 1% cash back on all other purchases. All this comes with a $0 annual fee – what’s not to love?













Chase Freedom®


Chase Freedom - $100 Cash Back Credit Card

Apply Now

on Chase's

secure website



starstarstarstarstar


  • Earn a $100 Bonus after you spend $500 on purchases in your first 3 months from account opening

  • Earn a $25 Bonus after you add your first authorized user and make a purchase within this same 3-month period

  • 0% Intro APR for 15 months on purchases and balance transfers. After the intro period, a variable APR of 13.99%-22.99%

  • 5% Cash Back on up to $1,500 in combined purchases between October 1 — December 31, 2014 at Amazon.com, Zappos.com and select department stores

  • You'll enjoy new 5% categories every 3 months like gas stations, restaurants and Amazon.com. It's free and easy to activate your bonus each quarter!

  • Unlimited 1% Cash Back on all other purchases

  • No annual fee and rewards never expire










thumbsupPros


  • Bonus cash back categories

  • No annual fee

  • 0% for 15 mos on transfers

















Annual FeeSignup BonusAPR , Variable*APR Promotions
$0Get a $100 Bonus after spending $500 on purchases in your first 3 months from account opening.13.99% - 22.99% (Variable)0% APR for 15 months on purchases and balance transfers

Chase Sapphire Preferred® Card


The Chase Sapphire Preferred® Card is a great choice for travelers. With it, you’ll earn 2 points per dollar spent on travel and dining in restaurants and 1 point per dollar spent on all other purchases. Ultimate Rewards points are generally worth $.01 apiece, but their value jumps 25% when you redeem for travel through the Ultimate Rewards portal. And remember, with the Chase Sapphire Preferred® Card you also have the option to transfer your points to a participating frequent traveler program at a 1:1 ratio.


The Chase Sapphire Preferred® Card will get you started with a stellar signup bonus: Earn 40,000 bonus points after you spend $3,000 in the first 3 months. It charges an Introductory Annual Fee of $0 the first year, then $95. But if you spend a lot on dining and travel, we think this is a small price to pay.













Chase Sapphire Preferred® Card


Chase Sapphire Preferred Credit Card

Apply Now

on Chase's

secure website



starstarstarstarstar


  • Earn 40,000 bonus points when you spend $3,000 on purchases in the first 3 months from account opening. That's $500 in travel when you redeem through Chase Ultimate RewardsSM.

  • Earn 5,000 bonus points after you add the first authorized user and make a purchase in the first 3 months from account opening.

  • 2X points on travel and dining at restaurants & 1 point per dollar spent on all other purchases

  • No foreign transaction fees, plus Chip and Signature enabled for international travel.

  • 1:1 point transfer to leading frequent travel programs at full value — that means 1,000 Ultimate Rewards points equal 1,000 partner miles/points.

  • 24/7 direct access to dedicated customer service specialists

  • Introductory Annual Fee of $0 the first year, then $95
















thumbsupPros


  • No foreign transaction fee


thumbsdownCons


  • Has annual fee

















Annual FeeSignup BonusAPR , Variable*APR Promotions
Introductory Annual Fee of $0 the first year, then $95.Earn 40,000 bonus points after you spend $3,000 in the first 3 months.15.99% (Variable)Purchase: None

Transfer: None

iPhone 6 image via Shutterstock


The post Chase and Apple Pay: Will I Be Able to Use My Credit Card? appeared first on NerdWallet Credit Card Blog.






Source Article :http://bit.ly/10eqCC4