credit cards

Random observations.

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Instead of writing one long column, I’m doing a handful of random short takes.

Local boys make good: Portugal. The Man took a Grammy for best pop duo/group performance. Still giddy over this, even though I don’t know them. At one point I may have met Eric Howk, the guitarist, because I used to work with his mom.

Point being, it was a band that originated in the Last Frontier and has worked hard since the oughties. It’s great to have something Alaskan other than oil fields and giant cabbages being celebrated nationally (and internationally).

Rock on, guys – and I say that as someone who listens exclusively to the classical music station.

Winter-ish: We got a little snow, and the temperature has dropped below zero at night so it’s sorta-kinda-winter. On the whole, the season has been a disappointment, especially for Nordic skiers and the guys and gals who plow driveways as a side hustle.

Dear Lower 48: Please give back our snow. We miss it.

 

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How we use credit: A new federal report.

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A recent report from the Consumer Financial Protection Bureau contained a couple of concerns and a big surprise. For me, anyway.

“The consumer credit card market” states that both the total amount of credit line and the average amount of card debt have gone up over the past few years. No surprise there, given our national preoccupation with spending.

Here’s what got my attention: More people are signing up for secured credit cards, which require cash deposits. The number of secured cards provided by mass market issuers was 7 percent higher in 2016 than in 2015.

Until fairly recently most financial institutions haven’t put a whole lot of oomph into marketing secured cards. That’s changing, the federal agency notes, as consumer groups and the media suggest these cards as a good way to build credit scores.

What’s in it for the banks? Loyalty.

 

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Credit score myths that will. not. die.

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th-1More than half of U.S. consumers (mistakenly) believe that carrying credit card balances will help improve their credit scores.

It won’t. It won’t. It won’t!

Yet according to the 2016 Capital One Credit Confidence Study, 52 percent of us still think it will. The study also mentioned a new (to me) credit score myth, one that’s believed by about the same number of people.

 

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Link love, a virus and teaching money skills.

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thSorry to have maintained radio silence lately. In the past week I’ve had one of those not-terribly-serious yet still life-sucking viruses.

The sinus-y kind that makes your head ache and your nose and eyes itch. The throat-y kind that makes it unpleasant even to sip water. The malaise-y kind that makes you want to lie down a lot, except that you can’t really get comfortable.

Blech.

Since during that time I’ve also been writing for pay and working on the sequel to “Your Playbook For Tough Times,” I haven’t had the brainwidth to come up with something thrilling for this blog.

However, I do have a few things to share. To wit:

 

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Adventures in (good) customer service.

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thSo often we encounter lackluster, slipshod or outright lousy customer service. Not today, though.

I’ve had an AT&T Universal Mastercard since 1992. One of the things I appreciate is its connection to the Citi Thank You Rewards program. A perennial frugal hack for me is using credit rewards programs to pay for birthday and Christmas shopping, as well as for restaurant gift cards to treat my hosts when I travel.

Since Christmas is closing in, I checked today to see if I had enough points for a specific gift for my daughter and son-in-law.

Turned out that I needed 14,000 points for the item. I had 12,585 with 1,226 more points waiting to be credited on Nov. 21. In other words, I was 189 points short and the next batch wouldn’t hit my account until Dec. 21 — a little late for ordering the present.

I said, “Oh, well, I’ll give an IOU for the gift and order it on Dec. 22, then. Thanks anyway.”

The customer service rep said, “Let me talk to my supervisor.”

 

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How to make an ID thief’s day.

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th-1Recently at the recycling center I found a few Box Tops For Education coupons in the mixed-paper bin. As I walked back toward my vehicle a woman rolled down her window and said, “Why are you going through the garbage?”

I told her I was looking for Box Tops For Education for my nephews’ schools. Also that I prefer to think of it as mixed paper.

The woman frowned. “Well, I don’t like it. Some of the stuff we throw in there is kind of sensitive. Private.”

Um. What?

It took me a couple of seconds to form a coherent response. “You should be shredding that stuff! If you throw personal information away without cutting it up you could have your identity stolen.”

She sniffed audibly, then drove off.

Readers: Do you ever throw away things like bank or credit card statements or health insurance info? If so, please stop it. Right now.

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A simple way to save $159k.

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th-1 Credit card use is on the rise, according to the recent “State of Credit” report from Experian. But there’s a group of consumers who are bucking that trend: millennials, of whom increasing numbers are eschewing credit in favor of debit.

Problem.

Using debit and cash means you’re essentially opting out of the credit reporting system. Without a healthy credit score, you’ll likely pay more than you should for insurance and for auto or mortgage loans.

How much more? An average of $159,464 in extra interest paid over your lifetime, according to Credit.com’s Lifetime Cost of Debt Calculator.

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The complete college list (enhanced).

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thOver at A Mom, Money and More, my blogging buddy Sonya Ann has reprised her “Complete college list,” originally put together after packing her older child off to college.

Novices would do well to heed this detailed account of everything a student needs, from cards to bed sheets.

You don’t necessarily need all of these things, mind you. (Bug repellent? Movies? A Hairdini?)

However, the list is a great reminder of the things we’re so accustomed to having that we don’t really think about them.

That is, until they aren’t there. If the average freshman needs dental floss or shoelaces or cough syrup, which of these two scenarios is more likely?

Of course, even the most exhaustive list can use a fresh pair of eyes. No offense, Sonya Ann.

 

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What’s the weirdest thing you ever charged?

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th-1The folks at CardRatings.com recently commissioned a survey about offbeat credit card purchases. Some 57 percent of those surveyed copped to a bit of buyer’s remorse, i.e., “What was I thinking?”

“Adult entertainment” was the top culprit, with 6.7 percent admitting to have purchased temporary jollies. Men are “about four times more likely than women to use a credit card for this purpose,” according to the CardRatings blog post.  

You don’t say.

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Two ways to get free credit monitoring.

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thTarget is offering a great big mea culpa as a result of its recent data breach: a year’s worth of free credit monitoring through Experian. This is for anyone who shopped at Target stores in the United States between Nov. 27 and Dec. 15.

Personal finance expert Liz Weston offers some best-practices tips plus a legitimate URL where you can sign up for the service. According to the Target website, consumers need to be wary of e-mails and phone calls by scammers pretending to represent the company but who “are really trying to get personal information from you.”

Experian may try to get something from you, too, according to Weston: “It will try to sell you upgrades, such as a peek at ‘your credit score’ – actually a PLUS score that isn’t used by lenders.” But you don’t have to give a credit card number or pay for anything, because Target is picking up the tab.

You do, however, have to provide your Social Security number and some other info, so that Experian can make sure it’s protecting the right person.

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