Keep it Open? 5 Reasons You Should Pay Your Bar Tab With a Credit Card

If hitting the local watering hole is on the agenda this weekend, you’re probably thinking more about what you’ll wear than how you’ll pay for your drinks. But this is definitely something to consider, and there’s one payment method that should be used above all others.

Here are 5 reasons you should always pay your bar tab with your credit card:

1. With the right card, you’ll rack up extra rewards

The Nerds think you should use a credit card for every purchase you possibly can – after all, that’s how to earn big points, miles or cash back. But if you’re using a credit card that gives extra rewards on restaurant purchases, using it at a bar is an especially smart idea.

Here’s why: Most credit card issuers code most bars as restaurants, which means that you could be earning serious rewards when you use your card at your favorite cocktail joint. Don’t pass up this opportunity!

2. It’s safer than carrying cash

A few glasses of wine tends to cloud the mind, and this can lead to mishandling things you’re otherwise careful with – like cash. A lost credit card can be easily replaced, but lost cash is gone for good. Protect your funds by opting for credit every time.

3. You’ll be able to easily track your spending

Going out with friends for a couple of beers is fun, but the cost can add up fast. If you’re on a budget, keeping track of your happy hour spending is much easier with a credit card than it is with cash.

Since most credit card issuers offer fairly robust online banking tools these days, you can simply go online and add up what you’ve spent on bars and dining out over the course of a month. On the other hand, keeping track of all those cash receipts is a hassle, which could lead you to give up on budgeting altogether. Go with credit to more easily keep tabs on your tabs.

4. If the party goes longer than expected, you’re covered

You never know where the night might take you, and if you end up staying out later than expected, you’ll be glad you brought your credit card along. Withdrawing cash from the ATM at the start of a big night out means you could find yourself running out of money before you run out of party.

But assuming you’re staying well below the credit limit on your card (which you should be for the sake of your credit score), this isn’t a concern. Plus, you’ll be sure to have a way to pay for a cab home when the night comes to an end.

All in all, keeping a credit card on-hand is a good way to ensure that you won’t miss out on funny moments or “you had to be there” inside jokes.

5. You might impress a future date

If you’re headed to the bar in the hopes of finding your next date, your credit card could help you seal the deal. According to a 2014 NerdWallet study, 24% of single women say they are “somewhat” or “much more likely” to date someone who uses a premium credit card.

What’s more, 40% of single folks are “somewhat more likely” or “much more likely” to date someone with excellent credit. Since using a credit card responsibly is a great way to boost your credit score, choosing to pay for your new sweetie’s drink with plastic is a great first step toward something serious. Bottoms up!

Couple at a bar image via Shutterstock

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

Read More

Keep it Open? 5 Reasons You Should Pay Your Bar Tab With a Credit Card

If hitting the local watering hole is on the agenda this weekend, you’re probably thinking more about what you’ll wear than how you’ll pay for your drinks. But this is definitely something to consider, and there’s one payment method that should be used above all others.

Here are 5 reasons you should always pay your bar tab with your credit card:

1. With the right card, you’ll rack up extra rewards

The Nerds think you should use a credit card for every purchase you possibly can – after all, that’s how to earn big points, miles or cash back. But if you’re using a credit card that gives extra rewards on restaurant purchases, using it at a bar is an especially smart idea.

Here’s why: Most credit card issuers code most bars as restaurants, which means that you could be earning serious rewards when you use your card at your favorite cocktail joint. Don’t pass up this opportunity!

2. It’s safer than carrying cash

A few glasses of wine tends to cloud the mind, and this can lead to mishandling things you’re otherwise careful with – like cash. A lost credit card can be easily replaced, but lost cash is gone for good. Protect your funds by opting for credit every time.

3. You’ll be able to easily track your spending

Going out with friends for a couple of beers is fun, but the cost can add up fast. If you’re on a budget, keeping track of your happy hour spending is much easier with a credit card than it is with cash.

Since most credit card issuers offer fairly robust online banking tools these days, you can simply go online and add up what you’ve spent on bars and dining out over the course of a month. On the other hand, keeping track of all those cash receipts is a hassle, which could lead you to give up on budgeting altogether. Go with credit to more easily keep tabs on your tabs.

4. If the party goes longer than expected, you’re covered

You never know where the night might take you, and if you end up staying out later than expected, you’ll be glad you brought your credit card along. Withdrawing cash from the ATM at the start of a big night out means you could find yourself running out of money before you run out of party.

But assuming you’re staying well below the credit limit on your card (which you should be for the sake of your credit score), this isn’t a concern. Plus, you’ll be sure to have a way to pay for a cab home when the night comes to an end.

All in all, keeping a credit card on-hand is a good way to ensure that you won’t miss out on funny moments or “you had to be there” inside jokes.

5. You might impress a future date

If you’re headed to the bar in the hopes of finding your next date, your credit card could help you seal the deal. According to a 2014 NerdWallet study, 24% of single women say they are “somewhat” or “much more likely” to date someone who uses a premium credit card.

What’s more, 40% of single folks are “somewhat more likely” or “much more likely” to date someone with excellent credit. Since using a credit card responsibly is a great way to boost your credit score, choosing to pay for your new sweetie’s drink with plastic is a great first step toward something serious. Bottoms up!

Couple at a bar image via Shutterstock

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

Read More

Quiz: Which ‘Big Bang Theory’ Nerd Are You, Based on Your Money Habits?

When it comes to cold hard cash, are you a Penny or a Leonard? Or somewhere in between? The Nerds are gearing up for the season premiere of “The Big Bang Theory” in typical fashion: by evaluating each character’s financial style. Take our quiz to see which one you are.

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

Read More

Quiz: Which ‘Big Bang Theory’ Nerd Are You, Based on Your Money Habits?

When it comes to cold hard cash, are you a Penny or a Leonard? Or somewhere in between? The Nerds are gearing up for the season premiere of “The Big Bang Theory” in typical fashion: by evaluating each character’s financial style. Take our quiz to see which one you are.

Source Article :http://bit.ly/WJ8lKH

Read More

Apple Pay Mobile Payments Coming to iPhone 6

Apple took the wraps off its iPhone 6 and the iPhone 6 Plus today, including a new mobile payment and digital wallet system called Apple Pay. Here’s how it may change the way owners of the smartphones handle their money.

Apple Pay will use near field communication (NFC) technology to make a wireless connection with a merchant’s cash register that’s in close proximity, letting customers pay with just a touch of their phone. This will remove from the transaction traditional card features that can make consumers vulnerable to fraud: exposed card numbers, security codes and the magnetic strips that hold the information. Apple Pay will generate a security code specific to each transaction for authentication purposes.

Owners can store their cards in Apple’s Passbook application by using the phone’s camera to take a picture of each one and verify account information with the issuing banks. The data are secured with TouchID, an Apple feature that lets phone owners use a fingerprint for authentication.

A consumer that loses a phone can use Apple’s Find My iPhone service to track down the device and avoid having to cancel cards stored on the handset. The company also introduced Apple Watch, which also can be used to buy things in stores with the mobile payments app.

Transactions made through Apple Pay reveal very little information to merchants. Cashiers don’t see your name, card number or security code, and Apple doesn’t get information about where you shopped, what you bought or how much you paid. To authorize a transaction, a consumer only needs to press the right finger to the phone screen using the TouchID system.

Apple Pay is supported by the three major U.S. credit card companies: MasterCard, Visa and American Express. These agreements may make it more likely to catch on than previously introduced mobile payment systems such as Google Wallet.

The biggest banks and card handlers – Bank of America, Wells Fargo, Citigroup, U.S. Bank, JPMorgan Chase, Capital One, United Services Automobile Association (USAA), Barclays, PNC Financial Services Group (PNC) and Navy Federal Credit Union – are all on board to handle transactions made with the Apple Pay. Between them, Apple says they handle 83% of credit card purchase volume.

Apple says 220,000 merchants accept mobile payment system transactions, including Macy’s, Bloomingdales, Walgreen’s, Staples, PetCo, Toys `R’ Us, Subway, Whole Foods, Disney, McDonald’s, Nike and more. Also signed up are Starbucks, Major League Baseball, Tickets.com, Instacart, Sephora and OpenTable.

Apple Pay will pair with e-commerce applications such as those used by Target, GroupOn, Uber and Panera. Users can make purchases through the apps and pay with one touch – no credit card number needed.

It’s too soon to tell how Apple Pay will be received by consumers and merchants. The new phones begin arriving Sept. 19, while consumers can start using Apple Pay at stores starting in October.

Apple logo via Shutterstock

Source Article :http://bit.ly/1lReh01

Read More

Apple Pay Mobile Payments Coming to iPhone 6

Apple took the wraps off its iPhone 6 and the iPhone 6 Plus today, including a new mobile payment and digital wallet system called Apple Pay. Here’s how it may change the way owners of the smartphones handle their money.

Apple Pay will use near field communication (NFC) technology to make a wireless connection with a merchant’s cash register that’s in close proximity, letting customers pay with just a touch of their phone. This will remove from the transaction traditional card features that can make consumers vulnerable to fraud: exposed card numbers, security codes and the magnetic strips that hold the information. Apple Pay will generate a security code specific to each transaction for authentication purposes.

Owners can store their cards in Apple’s Passbook application by using the phone’s camera to take a picture of each one and verify account information with the issuing banks. The data are secured with TouchID, an Apple feature that lets phone owners use a fingerprint for authentication.

A consumer that loses a phone can use Apple’s Find My iPhone service to track down the device and avoid having to cancel cards stored on the handset. The company also introduced Apple Watch, which also can be used to buy things in stores with the mobile payments app.

Transactions made through Apple Pay reveal very little information to merchants. Cashiers don’t see your name, card number or security code, and Apple doesn’t get information about where you shopped, what you bought or how much you paid. To authorize a transaction, a consumer only needs to press the right finger to the phone screen using the TouchID system.

Apple Pay is supported by the three major U.S. credit card companies: MasterCard, Visa and American Express. These agreements may make it more likely to catch on than previously introduced mobile payment systems such as Google Wallet.

The biggest banks and card handlers – Bank of America, Wells Fargo, Citigroup, U.S. Bank, JPMorgan Chase, Capital One, United Services Automobile Association (USAA), Barclays, PNC Financial Services Group (PNC) and Navy Federal Credit Union – are all on board to handle transactions made with the Apple Pay. Between them, Apple says they handle 83% of credit card purchase volume.

Apple says 220,000 merchants accept mobile payment system transactions, including Macy’s, Bloomingdales, Walgreen’s, Staples, PetCo, Toys `R’ Us, Subway, Whole Foods, Disney, McDonald’s, Nike and more. Also signed up are Starbucks, Major League Baseball, Tickets.com, Instacart, Sephora and OpenTable.

Apple Pay will pair with e-commerce applications such as those used by Target, GroupOn, Uber and Panera. Users can make purchases through the apps and pay with one touch – no credit card number needed.

It’s too soon to tell how Apple Pay will be received by consumers and merchants. The new phones begin arriving Sept. 19, while consumers can start using Apple Pay at stores starting in October.

Apple logo via Shutterstock

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

Read More

Will a Huge Amount of Student Loan Debt Hurt My Credit Score?

If you’re coping with a mountain of student debt, you have a lot on your mind. Aside from how you’re going to make the payments, you’re probably also worried about how your loans are affecting your credit score.

Don’t worry, the Nerds are here to explain all the important details about the relationship between student loans and your credit. Let’s dive in!

A big student loan bill won’t hurt your credit if you handle it responsibly

First, take a moment to let out a sigh of relief: A huge amount of student loan debt won’t necessarily hurt your credit score.

If you’ve done some preliminary research about the factors that affect your credit, you probably noticed that “amounts owed” accounts for 30% of your score. But this is most heavily influenced by your credit utilization ratio on revolving credit accounts, like credit cards. Since student loans are installment loans, they don’t have a big impact on this portion of your score.

In fact, your student loans could potentially help your credit. If you pay your loans on time and in full, you’re going to bolster the part of your score that’s determined by payment history. Since this makes up 35% of your overall score, you could get a boost from handling your student loans responsibly.

Plus, having an open installment loan may also improve the 10% of your score that comes from the types of credit you have in use. Lenders like to see that you’re good at managing different varieties of borrowed money, so having both revolving and installment accounts on your credit report is beneficial.

But you could have trouble getting other loans

Although making your student loan payments on time is a good way to keep your credit score humming, it’s worth noting that a heavy student debt burden could still interfere with your ability to get other loans.

This might seem counterintuitive, because you probably know that good credit is key to qualifying for financing on competitive terms. But your student loans will have an impact on another key variable lenders look at when they’re deciding whether to extend you credit: your debt-to-income ratio (commonly abbreviated DTI).

Your DTI is the ratio of your monthly obligations to your gross monthly income. We’ll use an example to illustrate this point: Let’s say you’re making an annual income of $50,000 in your first job out of college. In this case, your gross monthly income would be $4,166.67 ($50,000/12).

Let’s assume you’re paying $800 per month in rent, $250 on your car payment, and $650 toward your student loans. Your total monthly obligations would be $1,700 ($800+$250+$650).

To figure out your DTI, you’d do a simple division problem:

$1,700 (your total monthly obligations)/

$4,166.67 (your gross monthly income) =

40.8% (your DTI)

Most lenders like to see a DTI of 36% or less; if your student loans are pushing your DTI above that mark, you might have trouble getting another loan.

Tips for managing your student loans

So it turns out that student loans can be helpful or hurtful when you’re trying to get financing for a car or a home after college. They could boost your credit score, but there’s also the possibility that they’ll drive up your DTI.

Luckily, the Nerds have a few tips for successfully managing your student debt so that you’ll be well-positioned for a bright financial future:

• Pay your loans on time every month, no matter what.


• If your minimum monthly student loan payments are too high, communicate with your lender. You might be able to defer them for a period of time or work out an income-based repayment plan.


• If you work in public service (as a teacher in a low-income school, for example), look into loan forgiveness programs you might be eligible for.


• Consider consolidating. This could help you score a lower interest rate on your student loans, and it will help simplify making your monthly payments.


• Consider paying more than the required monthly minimums. This will help you pay off your student loans faster, which will cause your DTI to drop.

The takeaway: A huge student loan bill won’t necessarily hurt your credit score, but it could make getting other loans more difficult. Use the Nerds’ tips above to manage your student debt effectively!

Student loans image via Shutterstock

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

Read More