Bariatrx

Menu

Skip to content
  • Home
  • Categories
    • Alzheimer’s & Dementia Medication
    • Elderly Personal Care
    • Hospital Marketing Tips
    • Medical SEO Guide
    • Senior Health Care
    • Senior Home Care Tips
    • Skilled Nursing Care
  • About
  • Contact
  • Privacy Policy

Tag Archives: Account management

Home / Posts Tagged "Account management"

Can you buy a money order with a credit card?

February 10, 2021 by Liam Lane Posted in Account Management Tagged Account management, Banking, Buy, Buying, Checking Account, cons, Convenience, Credit, Credit Card, credit cards, Credit Score, Debt, Fees, Financial Wize, FinancialWize, government, Identity theft, money, News, Personal, pros, Purchase, savings, savings accounts

Money orders offer guaranteed payment of funds upfront for goods and services. Think of a money order like a prepaid check. There isn’t the requisite waiting around for the bank to clear the funds.

Paying via a money order might be a good option for a wide range of scenarios – transactions occurring between two people who don’t know each other too well, an establishment that wants a payment in cash or someone who doesn’t have a checking account but wants to purchase goods or services.

Paying an individual or institution via a money order sounds like a good idea, but what if you want to charge a money order through your credit card? Is this in your best financial interest?

Find out why paying for a money order via a credit card should be a last resort for most individuals.

See related: Can you send money with a credit card?

What is a money order and how does it work?

Essential reads, delivered weekly

Subscribe to get the week’s most important news in your inbox every week.

By providing my email address, I agree to CreditCards.com’s Privacy Policy

Your credit cards journey is officially underway.

Keep an eye on your inbox—we’ll be sending over your first message soon.

Money orders essentially work like cash since funds are guaranteed. The only caveat is a specific individual or institution is specified on the money order. Once a money order is purchased, the purchaser must fill out the recipient’s name, the amount and, in certain cases, the buyer’s address and phone number.

“A money order is a paper certificate issued by a government agency or banking institution,” said Steve Weisman, a Massachusetts-based attorney and professor. An individual pays the money order issuer cash to cover the money order plus a small fee.

One of the advantages of using a money order over checks is it “avoids putting bank account numbers or routing numbers on the document,” said Zach Reese, a CPA from Atlanta.

It is a secure way to make a payment, and there is less likelihood of fraud or identity theft associated with checks.

Money orders often have a receipt, so individuals can track if and when a recipient receives payment. It is possible to put a stop payment on a money order, and it is a safer option than sending or mailing cash.

Where can I buy a money order?

Money orders can be purchased from the U.S. Postal Service. Daily, approximately 269,000 money orders are sold at post offices across the country.

In addition, money orders can be purchased from “supermarkets and convenience stores, through checking or savings accounts in banks, credit unions, money transfer shops and payday loan stores,” said John Li of Fig Loans. Money orders usually have a maximum limit of $1,000. Depending on where a money order is purchased, there is a fee associated with the transaction.

Can an individual buy a money order with a credit card?

Yes, but only from a couple of merchants – Western Union and 7-Eleven stores. The U.S. Postal Service and other places will accept only cash, debit cards or traveler’s checks for a money order, according to Chris Panteli, financial expert and small business owner.

If a buyer decides to charge a money order to a credit card, be aware the credit card company may consider a money order purchase to be a cash advance, which has a downside. Significantly more interest is charged on a cash advance than a regular purchase.

See related: How credit card interest works

What are the pros of buying a money order with a credit card?

Financial experts are hard-pressed to identify more than a few positives associated with purchasing a money order via a credit card. If an individual has no other option and chooses to purchase a money order, there are some benefits:

  • A credit card offers the ability to pay a small debt even if the individual doesn’t have cash on hand.
  • Having the ability to purchase a money order with a credit card in an emergency situation may be helpful.

What are the cons of buying a money order with a credit card?

Most experts agree that buying a money order with a credit card isn’t the most cost-effective option for individuals. Michael Sullivan, personal financial consultant at Take Charge America, explains the disadvantages:

  • It is more expensive. Using a cash advance adds a 3% or greater fee plus the interest cost. When added to the amount of the money order, this can make the purchase rather costly – perhaps even more than obtaining a cashier’s check from a bank.
  • It isn’t easy to find locations that will allow the purchase of a money order via a credit card. Only Western Union and 7-Eleven stores allow purchases of money orders via credit cards.
  • No rewards or points are credited because cash advance payments don’t qualify for them. Thus, incentives or discounts for future transactions are eliminated.
  • A grace period doesn’t apply to pay off a cash advance. Cash advances begin accruing interest immediately.
  • There are higher fees associated with cash advances. Cash advance fees are usually set at 5% or $10, whichever is greater. For a $200 money order, you’d pay $10 and for a $500 money order, you’d pay $25.
  • The credit card will take a longer time to pay off because of the fees and accrued interest.
  • Your credit card company will not reimburse you for the cost of a lost money order purchased with a cash advance.

One additional disadvantage is “taking cash advances can affect your credit score. So if you’re trying to improve your credit score, don’t even think of using your credit card to buy a money order,” adds Reese.

See related: Do bank overdrafts affect your credit score?

Bottom line

Most experts agree buying a money order through a credit card isn’t the ideal option and should be reserved as a last resort. It is more expensive, it will take longer to pay off your credit card balance, and could damage your financial future by adversely impacting your credit score.

It is possible to buy a money order with a credit card, but you shouldn’t. Your best bet is to pay for the money order in some other way rather than using a credit card to make the purchase.

Source: creditcards.com

Guide to Tally: Consolidate card payments to beat credit card debt

February 1, 2021 by Liam Lane Posted in Account Management Tagged Account management, california, Colorado, Credit, Credit Card, Credit Card Debt, credit cards, credit report, Debt, Debt Management, Financial Wize, FinancialWize, Get Out of Debt, keep, line of credit, Loans, Mobile App, money, new york, News, Products, save, Saving, Saving Money, Vs.

If you are one of many Americans struggling with credit card debt, there are plenty of great strategies designed to get you out of it. From balance transfer credit cards to consolidation loans, there is no shortage of solutions to reduce your balances.

See related: How to pay off credit card debt: 3 best strategies

One unique service is trying to appeal to those with multiple credit card payments every month. Tally offers to consolidate your card payments and help you pay down your debt faster – all for less interest than you currently pay.

Read on to learn more about the service and if it is best for you.

What is Tally?

Tally is a mobile app available on both the Apple App store and Google Play store. It is designed to manage credit card debt and help its users pay down their balance faster.

Essential reads, delivered weekly

Subscribe to get the week’s most important news in your inbox every week.

By providing my email address, I agree to CreditCards.com’s Privacy Policy

Your credit cards journey is officially underway.

Keep an eye on your inbox—we’ll be sending over your first message soon.

Tally users link their credit cards, and the service automatically makes payments, using an algorithm to determine what size payments to make to each card – using factors like highest APR. In order to consolidate your debt, Tally will extend you a single line of credit to cover the payments it makes. That way, you just make one monthly payment to Tally and it takes care of the rest for you.

Right now, Tally is only available in certain states. Eligible locations include Arizona, Arkansas, California, Colorado, Connecticut, Washington, D.C., Florida, Georgia, Illinois, Idaho, Iowa, Louisiana, Maryland, Massachusetts, Michigan, Minnesota, Missouri, New Mexico, New Jersey, New York, Ohio, Oregon, Oklahoma, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Utah, Washington and Wisconsin.

How does Tally work?

Tally offers a few different solutions for its users, based on how you want to pay down your debt. The most common service is known as Tally Pays – and puts your repayment in the hands of the app.

Tally Pays

Tally Pays is the heart of Tally debt management solutions. With this service, Tally will extend you a line of credit, based on a soft pull of your credit report. You’ll be offered a variable APR between 7.9% and 25.9% (accurate as of January 2021).

Once you’ve secured a line of credit, you can link your credit card accounts and let Tally start making payments for you. The app will automatically make payments based on its algorithm to try to save you as much on interest as possible and pay down your debt quickly.

Tally only makes payments to credit cards on your behalf if it can save you money on interest. That means if you have any cards with a lower interest rate than your Tally line of credit, the service won’t make payments on those cards. (Note: Tally always makes the minimum payment on your card. Read more on late fee protection later.)

creditcards.com

Best Credit Cards for Bad Credit

January 29, 2021 by Liam Lane Posted in Credit Card News Tagged Account management, build credit, building, Building Credit, Buy, car, Cash Back, Cash Back Rewards, Checking Account, Credit, credit bureau, Credit Card, credit cards, credit history, credit report, Credit Score, Debt, Emergency Fund, Fees, Financial Wize, FinancialWize, gas, Interest Rates, Life, Loans, Main, Mobile App, money, News, Products, Purchase, Rewards, Spending, Travel

When it comes to excuses consumers give for their poor credit scores, banks and lenders have heard it all. 

Maybe you lost your job and couldn’t pay your student loan payment for a few months. Or perhaps you thought you’d gotten a deferment but were too busy job hunting to find out for sure. 

Maybe you thought you paid your credit card bill but it’s actually sitting on your kitchen counter waiting for the mail.

Whatever the reason for your low credit score, one thing is for certain — lenders don’t care.

In fact, banks and other lenders lean on your credit score and other factors to determine whether they should approve you for a credit card or a loan — and that’s about it. Your personal situation is never considered, nor should it be.

It would be wonderful if credit card companies understood that “life happens” and made special exceptions to help people out, but that’s not the world we live in.  As most of us already know, that’s not typically how credit works. Credit cards are backed by banks, and banks have rules for a reason.

Now, here’s the good news: Credit cards can help rebuild your credit, earn cash back for each dollar you spend, make travel easier, and serve as an emergency fund if you’re stuck paying a huge bill at the last minute. This is true even if you have poor credit, although the selection of credit cards you can qualify for may be somewhat limited. 

Keep reading to learn about the best credit cards for bad credit, how they work, and how you can get approved.

Best Cards for Bad Credit This Year

Before you give up on building credit, you should check out all the credit cards that are available to consumers who need some help. Our list of the best credit cards for bad credit includes some of the top offers with the lowest fees and fair terms.

  • Total Visa®
  • Discover it® Secured
  • Credit One Bank® Visa® Credit Card
  • Secured Mastercard® from Capital One®
  • Milestone® Gold Mastercard®
  • Credit One Bank® Unsecured Visa® with Cash Back Rewards

#1: Total Visa®

The Total Visa® is one of the easiest credit cards to get approved for in today’s market, and it’s easy to use all over the world since it’s a true Visa credit card. However, this card does come with high rates and fees since it’s available to consumers with poor credit or a limited credit history.

Processing your application will cost $89, which is extremely high when you consider the fact that most credit cards don’t charge an application fee. You’ll also pay an initial annual fee of $75 and a $48 annual fee for each year thereafter.

Once you sign up, you’ll be able to pick your preferred card design and your credit card payments will be reported to all three credit reporting agencies — Experian, Equifax, and TransUnion. This is the main benefit of this card since your on-time payments can easily help boost your credit score over time. 

For the most part, the Total Visa® is best for consumers who don’t mind paying a few fees to access an unsecured line of credit. Since this card doesn’t dole out rewards, however, there are few cardholder perks to look forward to. 

  • APR: 35.99% APR
  • Fees: Application fee and annual fee
  • Minimum Credit Score: Not specified
  • Rewards: No

#2: Discover it® Secured

While secured cards don’t offer an unsecured line of credit like unsecured credit cards do, they are extremely easy to qualify for. The Discover it® Secured may not be ideal for everyone, but it does offer a simple online application process and the ability to get approved with little to no credit history.

Keep in mind, however, that secured cards do work differently than traditional credit cards. With a secured credit card, you’re required to put down a cash deposit upfront as collateral. However, you will get your cash deposit back when you close your account in good standing.

Amazingly, the Discover it® Secured lets you earn rewards with no annual fee. You’ll start by earning 2% back on up to $1,000 spent each quarter in dining and gas. You’ll also earn an unlimited 1% back on everything else you buy.

The Discover it® Secured doesn’t charge an application fee or an annual fee, although you’ll need to come up with the cash for your initial deposit upfront. For the most part, this card is best for consumers who have little to no credit and want to build their credit history while earning rewards.

  • APR: 24.74%
  • Fees: No annual fee or monthly fees
  • Minimum Credit Score: Not specified
  • Rewards: Yes

#3: Credit One Bank® Visa® Credit Card

The Credit One Bank® Visa® Credit Card is another credit card for bad credit that lets you earn rewards on your everyday spending. You’ll earn a flat 1% cash back for every dollar you spend with this credit card, and since it’s unsecured, you don’t have to put down a cash deposit to get started.

Other benefits include the fact you can get pre-qualified for this card online without a hard inquiry on your credit report — and that you get a free copy of your Experian credit score on your online account management page.

You may be required to pay an annual fee up to $95 for this card for the first year, but it depends on your creditworthiness. After that, your annual fee could be between $0 and $99.

  • APR: 19.99% to 25.99%
  • Fees: Annual fee up to $95 the first year depending on creditworthiness; after that $0 to $99
  • Minimum Credit Score: Not specified
  • Rewards: Yes

#4: Secured Mastercard® from Capital One®

The Secured Mastercard® from Capital One® is another secured credit card that extends a line of credit to consumers who can put down a cash deposit as collateral. This card is geared to people with bad credit or no credit history, so it’s easy to get approved for. One downside, however, is that your initial line of credit will likely be just $200 — and that doesn’t give you much to work with. 

On the upside, this card doesn’t charge an annual fee or any application fees. That makes it a good option if you don’t want to pay any fees you won’t get back.

You’ll also get access to 24/7 customer service, $0 fraud liability, and other cardholder perks.

  • APR: 26.49%
  • Fees: No ongoing fees
  • Minimum Credit Score: Not specified
  • Rewards: No

#5: Milestone® Gold Mastercard®

The Milestone® Gold Mastercard® is an unsecured credit card that lets you get pre-qualified online without a hard inquiry on your credit report. You won’t earn any rewards on your purchases, but you do get benefits like the ability to select your card’s design, chip and pin technology, and easy online account access.

You will have to pay a one-time fee of $25 to open your account, and there’s an annual fee of $50 the first year and $99 for each year after that.

  • APR: 24.90%
  • Fees: Account opening fee and annual fees
  • Minimum Credit Score: Not specified
  • Rewards: No

#6: Credit One Bank® Unsecured Visa® with Cash Back Rewards

The Credit One Bank® Unsecured Visa® with Cash Back Rewards lets you earn 1% back on every purchase you make with no limits or exclusions. There’s no annual fee or application fee either, which makes this card a winner for consumers who don’t want to get hit with a lot of out-of-pocket costs.

As a cardholder, you’ll get free access to your Experian credit score, zero fraud liability, and access to a mobile app that makes tracking your purchases and rewards a breeze. You can also get pre-qualified online without a hard inquiry on your credit report.

  • APR: 25.99%
  • Fees: No annual fee or application fee
  • Minimum Credit Score: Not specified
  • Rewards: Yes

The Downside of Credit Cards with Bad Credit

While your odds of getting approved for one of the credit cards for bad credit listed above are high, you should be aware that there are plenty of pitfalls to be aware of. Here are the major downsides you’ll find with these credit cards for bad credit and others comparable cards:

  • Higher fees: While someone with excellent credit can shop around for credit cards without any fees, this isn’t the case of you have bad credit. If your credit score is poor or you have a thin credit profile, you should expect to pay higher fees and more of them.
  • Higher interest rates: While some credit cards come with 0% interest for a limited time or lower interest rates overall, consumers with poor credit typically have to pay the highest interest rates available today. Some credit cards for bad credit even come with APRs as high as 35%.
  • No perks: Looking for cardholder benefits like cash back on purchases or points toward airfare or movie tickets? You’ll need to wait until your credit score climbs back into “good” or “great” territory. Even if you can find a card for applicants with bad credit that offers cash back, your rewards may not make up for the higher fees.
  • No balance transfers: If you’re looking for relief from other out-of-control credit card balances, look elsewhere. Credit cards for bad credit typically don’t offer balance transfers. If they do, the terms make them cost-prohibitive.
  • Low credit limits: Credit cards for bad credit tend to offer initial credit limits in the $300 to $500 range with the possibility of increasing to $2,000 after a year of on-time monthly payments. If you need to borrow a lot more than that, you’ll have to consider other options.
  • Security deposit requirement: Secured credit cards require you to put down a cash deposit to secure your line of credit. While this shouldn’t necessarily be a deal-breaker — and it may be required if you can’t get approved for an unsecured credit card — you’ll need to come up with a few hundred dollars before you apply.
  • Checking account requirement: Most new credit card accounts now require cardholders to pay bills online, which means you’ll need a checking account. If you’re mostly “unbanked,” you may need to open a traditional bank account before you apply.

Benefits of Improving Your Credit Score

People with bad credit often consider their personal finances a lost cause. The road to better credit can seem long and stressful, and it’s sometimes easier to give up then it is to try to fix credit mistakes you’ve made in the past.

But, there are some real advantages that come with having at least “good” credit, which typically means any FICO score of 670 or above. Here are some of the real-life benefits better credit can mean for your life and your lifestyle:

  • Higher credit limits: The higher your credit score goes, the more money banks are typically willing to lend. With good credit, you’ll have a better chance at qualifying for a car loan, taking out a personal loan, or getting a credit card with a reasonable limit.
  • Lower interest rates: A higher credit score tells lenders you’re not as risky as a borrower —a sign that typically translates into lower interest rates. When you pay a lower APR each time you borrow, you can save huge amounts of money on interest over time.
  • Lower payments: Borrowing money with a lower interest rate typically means you can usually get lower payments all your loans, including a home loan or a car loan.
  • Ability to shop around: When you’re an ideal candidate for a loan, you can shop around to get the best deals on credit cards, mortgages, personal loans, and more.
  • Ability to help others: If your kid wants to buy a car but doesn’t have any credit history, better credit puts you in the position to help him or her out. If your credit is poor, you won’t be in the position to help anyone.
  • More options in life: Your credit score can also impact your ability to open a bank account or rent a new apartment. Since employers can request to see a modified version of your credit report before they hire you, excellent credit can also give you a leg up when it comes to beating out other candidates for a job. 

In addition to the benefits listed above, most insurance companies now consider your credit score when you apply for coverage. For that reason, life, auto, and home insurance rates tend to be lower for people with higher credit scores.

This may seem unfair, but you have to remember that research has shown people with high credit scores tend to file fewer insurance claims.

How to Improve Your Credit: Slow and Steady

When you have a low credit score, there are two ways to handle it. If you don’t mind the consequences of poor credit enough to do anything about it, you can wait a decade until the bad marks age off your credit report. Depending on when your creditors give up and write off your debt, you may not even need to wait that long.

If you don’t like the idea of letting your credit decay while you wait it out, you can also try to fix your past credit mistakes. This typically means paying off debt — and especially delinquent debts — but it can also mean applying for new loan products that are geared to people who need to repair their credit.

If you decide to take actionable steps to build credit fast, the credit cards on this page can help. They’ll give you an opportunity to show the credit bureaus that you’ve changed your ways.

Before you take steps to improve your credit score, however, keep in mind all the different factors used to determine your standing in the first place. The FICO scoring method considers the following factors when assigning your score:

  • On-time payments: Paying all your bills on time, including credit cards, makes up 35% of your FICO score. For that reason, paying all your bills early or on time is absolutely essential.
  • Outstanding debts: How much you owe matters, which is why paying off your credit cards each month or as often as possible helps your score. According to myFICO.com, the amounts you owe in relation to your credit limits make up another 30% of your FICO score.
  • New credit: Apply for too many new cards or accounts at once can impact your score in a negative way. In fact, this determinant makes up another 10% of your FICO score.
  • Credit mix: Having a variety of open accounts impresses the credit bureau algorithm Gods. If all you have are personal loans right now, mixing in a credit card can help. If you already have four or five credit cards, it may be wise to back off a little.
  • Length of credit history: The length of your credit history also plays a role in your score. The longer your credit history, the better off you are.

If you want to improve your credit score, consider all the factors above and how you can change your behavior to score higher in each category. It’s pretty easy to see how paying all your bills early or on time and paying off debt could make a big positive impact on your credit score when you consider that these two factors alone make up 65% of your FICO score.

If you want a way to track your progress, also look into an app like Credit Karma, one of my favorite tools. This app lets you monitor your credit progress over time and even receive notifications when your score has changed. Best of all, it’s free.

Should You Use a Credit Card to Rebuild Your Credit Score?

If you’re on the fence about picking up a credit card for bad credit, your first step should be thinking over your goals. What exactly are you trying to accomplish?

If you’re looking for spending power, the cards on this list probably won’t help. Some are secured cards, meaning you need a cash deposit to put down as collateral. Others offer low credit limits and high fees and interest rates, making them costly to use over the long-term.

If you really want to start over from scratch and repair credit mistakes made in the past, on the other hand, one of these cards may be exactly what you need. If you’re determined to improve your score, they can speed things along.

You may pay higher fees and interest rates along the way, but it’s important to remember that none of the cards on this list need to be your top card forever. Ideally, you’ll use a credit card for poor credit to rebuild your credit and boost your score. Once you’ve reached your goal, you can upgrade to a new card with better benefits and terms.

The post Best Credit Cards for Bad Credit appeared first on Good Financial Cents®.

Source: goodfinancialcents.com

How to pay rent with a credit card

January 29, 2021 by Liam Lane Posted in Account Management Tagged Account management, Buy, Cash Back, Checking Account, Coronavirus, Credit, Credit Card, Credit Card Debt, credit card payment, credit cards, credit history, Credit Score, Credit Scores and Reports, Debt, Debt Management, Fees, Financial Education, Financial Wize, FinancialWize, grace period, How To, Innovations and Payment Systems, Interest Rates, Life, money, News, Popular, Purchase, Rewards, Save Money, Spending, Travel

In an economic emergency, covering even basic yet important expenses can be tough. For example, in 2020, the coronavirus pandemic rocked the foundations of millions of Americans. The National Multifamily Housing Council found that by Jan. 20,  11.4% of tenants had not sent money for their rent.

The last thing you want is to be evicted from your home because of nonpayment of rent. When used correctly, a credit card can help you through hard situations. Since the card issuer only requires a small minimum payment, it can buy you time before getting back on your feet.

Here’s how to charge rent, not just during a financial crisis but under normal conditions as well, advantageously.

See related: How to earn rewards when paying monthly bills

How to pay rent with a credit card

  • How to pay through your landlord
  • How to pay through third-party services
  • Best credit cards to pay rent
  • Pros of paying rent with a credit card
  • Cons of paying rent with a credit card

How to pay through your landlord

First, ask your landlord if you can charge your rent. Some have software already set up to accept payments, so all you would need to do is provide your account information and your card will be charged. Larger property management companies are more apt to accept credit cards than individual landlords, but it’s worth an inquiry.

Bear in mind that there will be a processing fee, which typically falls between 2.5% and 2.99% of the transaction. The landlord will probably pass that cost to you, though it doesn’t hurt to ask if they’ll absorb the fee.

For example, if your rent is $1,800 and the fee is assessed at 2.99% of the transaction, the added cost would be $53.82. If the minimum credit card payment is 2% of the balance, your payment would be $36. Add the fee to it and all you’d need pay is $89.82 – a far cry from the $1,800 due.

If your landlord doesn’t offer this option, consider explaining your reason for wanting to charge the amount. If it’s not a permanent change to the rental agreement (which spells out the method and timing of your payments), your landlord may allow you to send the money via an app such as PayPal or Venmo on a temporary basis.

You would set up the app, attach your credit card to the account, and then follow through with the “pay-to” transaction:

  • Locate your landlord’s profile name.
  • Hit the “pay” function.
  • The money is deducted from your credit card and sent to your landlord’s bank account on file.
  • You receive the bill of the transaction amount plus the fee from your credit card company.

Yet another way to use your credit card to cover your rent is to take out a cash advance. It comes with some serious consequences that make this method your last choice, though:

  • Fees can be 5% of the amount you withdraw.
  • Interest rates are often higher on cash advances than they are on purchases.
  • There is no interest-free grace period, as there is for purchases.

Credit card issuers offer cardholders relief amid coronavirus fears

How to manage your credit cards during the coronavirus outbreak

Coronavirus: What to do if you’re unemployed and have credit card debt

How to pay through third-party services

An alternative to paying your landlord directly is to use a company that acts as an intermediary. The general process is simple:

  • Sign up with the company.
  • Identify your landlord.
  • Enter your rent amount and due date.
  • The company charges your card and sends your landlord the money in the form of a paper check or electronic transfer.
  • You receive a bill from your credit card company and can send any amount that is at least the minimum payment.

You should have no trouble paying any landlord this way if the third party sends your rent with a paper check. It’s the same as if it were coming straight from your own checkbook.

However, if the company sends payments electronically, your landlord would need to register for an account so the money can be deposited.

But charging rent with a third-party company is becoming popular.

“We’ve seen a 50% increase in the number of Plastiq customers that are paying for rent with their credit card [in 2019] compared to 2018,” says Eliot Buchanan, co-founder and CEO of the consumer-to-business bill-paying company.

“However, there are card processing fees involved, so rent payers should compare the costs and benefits of paying rent on a credit card to determine whether it makes sense to do in their particular situation.”

Accepting credit cards for rent payments is a win-win, says Brian Davis, director of education for SparkRental.

“Landlords and property managers who accept rent by credit card offer more flexibility for their renters, with an option to stay current on their rent even if their bank account is short on the first on the month,” says Davis.

Review a variety of third-party companies before deciding on one, paying close attention to the fee structure and whatever unique benefits they may have.

Third-party service Transaction fee Benefits/Perks
Plastiq 2.85% Up to 2% cash back on transactions, depending on your card.
RentMoola 2.99% – 3.99% Earn “MoolaPerks” for deals on travel, shopping, home service providers, etc.
SparkRental 2.99% – 3.99% Designed for landlords with a more challenging tenant base.
RentPayment 2.95% Can pay via app, by replying to a text or by phone.
RadPad 2.99% For landlords who prefer paper checks.
Cozy 2.75% Can add low-cost renter’s insurance to the payment.

Best credit cards to pay rent

Some rewards cards offer generous introductory bonuses. You can open an account for the specific purpose of using that bonus to offset the fees involved in charging your rent.

To get the bonus, you have to meet the card’s required minimum spend within the first three months of opening the card. When you do, the reward is yours.

If you get cash back, you can use the money as a statement credit. For cards that give points or miles, you can trade them in for cash too, but you won’t get as much for them as you would for things like travel.

Whatever the case, the introductory bonus will nullify the amount you’re charged in fees when use your card for rent. After that, you’ll be earning rewards on purchases, which will also offset the fees, should you continue to charge your rent.

Just a few examples include:

Rewards credit card Minimum spend Introductory bonus
Wells Fargo Propel American Express® card $1,000 in first 3 months 20,000 points ($200 cash value)
Blue Cash Preferred® Card from American Express $1,000 in first 3 months $250 statement credit
Citi Rewards+® Card $1,000 in first 3 months 15,000 ThankYou points (redeemable for $150 in gift cards at ThankYou.com)
Chase Sapphire Preferred Card $4,000 in first 3 months 60,000 points (redeemable for $750 toward travel when you go through Chase Ultimate Rewards)

See related: Best rewards credit cards

Another option is to open a credit card that comes with 0% APR for an extended period of time.

You won’t be charged interest on the debt you carry over until the rate rises to the regular rate. Therefore, if you charge your rent and can only afford to pay the minimum, the debt won’t escalate with financing fees.

A few good examples include:

0% APR credit card Intro APR purchase period
ABOC Platinum Rewards Mastercard 12 months (12.90-22.90% variable thereafter)
Citi® Diamond Preferred® Card 18 months (14.74-24.74% variable thereafter)
Discover it® Cash Back 14 months (11.99-22.99% variable thereafter)

See related: Best 0% APR credit cards

Pros of paying rent with a credit card

Aside from helping you through an emergency, charging rent has a few other benefits:

Build and improve credit history

Charging regularly, paying on time and keeping the balance at zero are the swiftest ways to establish a positive credit rating. Rent is a necessary expense, so why not parlay it into a high credit score?

Arthur Ruth, vice president of operations of Memphis Maids, a house cleaning service in Memphis, Tennessee, has been paying rent with his credit card for over 15 years.

“Using your cards so much, if you pay them correctly, you can save money and even improve your credit score,” says Ruth. “That’s something really important in this day and age.”

Cash flow freedom

When Ni’Kesia Pannell, an Atlanta-based journalist and entrepreneur, was temporarily short on cash, she took advantage of the credit card option.

“I was in between freelance gigs and needed to pay bills,” says Pannell. “The fees were high, but at the time, it was worth it.”

Once her financial situation returned to normal, she resumed paying by check.

In the same vein, if your rent is due on the first of the month but your income is sporadic, you may need some extra time to accumulate it all without any stress.

CreditCards.com, but you can still find a great card offer for you! Our CardMatch tool can help match you with prequalified offers and cards that align with your credit history – with no harm to your credit score. Get personalized offers from our partners in seconds.

Avoid late fees

If you don’t pay your rent on time, the landlord may charge you a late fee – which can be assessed at 5% of your rent payment or more.

“It’s nice to have the flexibility to charge your rent as an option if you hit a particularly tough month,” says Davis. “If tenants find themselves stretched too thin financially one month, it’s cheaper to charge their rent than let it go late – and it keeps them from falling behind and souring their relationship with their landlord.”

Cons of paying rent with a credit card

While paying with a credit card has its advantages, there are a few drawbacks to consider as well:

Fees

Essential reads, delivered weekly

Subscribe to get the week’s most important news in your inbox every week.

By providing my email address, I agree to CreditCards.com’s Privacy Policy

Your credit cards journey is officially underway.

Keep an eye on your inbox—we’ll be sending over your first message soon.

In the event you are responsible for the credit card processing fee, you’re looking at an increase in your monthly obligation. If the value of your credit card rewards doesn’t surpass the fees, you will lose – not gain – money.

To know if it makes financial sense, look at your card’s rewards program and compare its earnings rates to the transaction fees you’ll be charged. If the fee is 2.5% of the transaction, and you’re earning 1.5% in cash back, you’re losing 1% every month. So, for example, you’ll be out $15 for a $1,500 rent payment.

“It may not sound like much, but over time, it adds up,” says Ande Frazier, former editor-in-chief of MyWorth, a financial education media company. “And if money is tight, [it will impact] what you should be spending on, [like] something essential.”

Credit card debt

As convenient as it is to rely on a substantial credit line when you need it, it’s also easy to over-borrow. Elevated interest rates and low payments will put you into a deep hole.

“It’s a vicious cycle,” says Frazier.“That debt will grow and grow, and the compounding interest will be huge. If you can’t afford your rent, you’re living in the wrong place.”

Credit damage

Credit scores consider the amount of debt you owe and weigh it against the amount you can borrow. If you hit your limit and the balance stays anywhere near it, your scores will sink. Skip payment cycles, and those scores plummet further.

This puts you in a terrible position if you have to move. Almost all landlords check credit reports to see if you’re a low-risk tenant. So, if they see excessive debt and a pattern of missed payments, they may pass you over for tenancy.

See related: How to rent an apartment with bad credit

Final thoughts

In extreme situations, charging your rent and then paying incrementally can keep you in positive position with your landlord. To avoid credit card debt spiraling out of control, pay as much as you possibly can to the balance each month. Then when life returns to normal and you want to continue to charge your rent, make sure you always have the money in your checking account to cover the payment when the bill is due.

Source: creditcards.com

How to add an authorized user to an American Express card

January 10, 2021 by Liam Lane Posted in Account Management Tagged Account management, Financial Wize, FinancialWize, Products

Having a strong credit score is important. Consumers need it to get approved for a mortgage loan, to finance the purchase of a car and to qualify for the best credit cards at the lowest interest rates.

By adding friends and family members – or anyone else you’d like – as authorized users on your American Express credit card account, you can help them build a credit score if they lack one or improve one that’s weak. Just be careful: Authorized users can cause you financial pain if they overspend each month.

What is an authorized user?

An authorized user is someone who can use your credit card account to make purchases. Every purchase authorized users make goes onto your account.

These users, though, are not responsible for paying these charges. That’s up to you.

This is why it’s important to only add authorized users whom you trust to not run up charges on your account. You also need to create agreements with your authorized users on how much they can charge each month and when they need to pay for these purchases.

build or repair their credit. Every time you make an on-time payment, it’s reported to the three national credit bureaus – helping improve your credit score in addition to the scores of those listed as authorized users on your card.

One benefit for you as the primary cardholder? If you have an American Express credit card that generates rewards, authorized users can help you build those points faster. Every purchase authorized users make on your card will count toward your rewards bonuses.

Authorized user eligibility requirements

You can add anyone you’d like as an authorized user. Most people add family members, maybe their spouse or children. But you’re not limited to that: You can add friends or even people who work for you, such as a nanny or babysitter.

When adding authorized users, you need to provide their name, date of birth and Social Security number. You don’t have to provide authorized users’ birth dates and Social Security numbers immediately when applying for the card, but American Express does require you to provide this information within 60 days of application. If you don’t, the authorized user’s card will be deactivated. There’s one other limit, too – all authorized users must be at least 13 years old.

How to add an authorized user to your American Express account

Adding authorized users to your American Express account is a simple process. First, log into your American Express account. On your account page, scroll down until you see the “Useful Links” option on the right side of the page. You can then click on “Add Someone to your Account.”

Screenshot showing how to add an authorized user

Your authorized user will usually get the same card that you hold. If you hold the Blue Cash Everyday® Card from American Express, your additional card member will also receive a Blue Cash Everyday card.

There are exceptions, though. If you hold The Platinum Card® from American Express card, you can sign your authorized users up for either the Platinum card or the authorized user Gold card (not to be confused with the American Express® Gold Card). This option offers a limited number of benefits from the Platinum card.

See related: Amex Platinum authorized user perks

You can add as many authorized users as you’d like. And if you have more than one American Express card, you can add authorized users to any of them.

Fee for adding an authorized user

Essential reads, delivered weekly

Subscribe to get the week’s most important news in your inbox every week.

By providing my email address, I agree to CreditCards.com’s Privacy Policy

Your credit cards journey is officially underway.

Keep an eye on your inbox—we’ll be sending over your first message soon.

Some American Express cards charge a fee for adding authorized users. Others don’t.

For instance, you can add five authorized users to your American Express Gold card for free. If you want to add more, you’ll pay an annual fee of $35 for each extra authorized user.

Adding authorized users to the American Express Platinum card is costlier: You’ll pay a total annual fee of $175 to add three additional Platinum card authorized users. You’ll also pay $175 each year for each additional user you add after those initial three.

You’ll also pay a $175 annual fee for each authorized user you add to the Delta SkyMiles® Reserve American Express Card.

All other American Express cards charge no annual fees for adding authorized users.

Managing authorized user access

American Express does give primary cardholders some control over the authorized users on their account.

First, the charges that each authorized user makes on your account are itemized on your monthly statements. American Express also allows you to check the balances on your additional cards through your online account at any time.

Unlike some credit card providers, American Express lets you set a monthly spending limit for each of your authorized users. You can set this limit as low as $200 up to your full credit limit.

Pros and cons of adding an authorized user

There are both benefits and potential pitfalls to adding authorized users to your American Express card.

Pros

  • Increased rewards: The purchases your authorized users make all count toward your rewards points and cash back bonuses. Adding authorized users, then, can help you earn rewards and cash back at a faster pace.
  • You can help your children build credit scores: Want your children to steadily build a strong credit score? Adding them as authorized users can help do this. Many younger adults have no credit score at all because they don’t have enough of a credit history to have built one. Every time you make an on-time payment on your American Express account, it will strengthen your credit score, as well as help users who don’t have a score build one of their own.
  • Help to those with damaged scores: Maybe you know a family member or friend with a weak credit score. By adding them as authorized users, you can help them repair their weak scores. Again, every payment you make on time is reported to the credit bureaus. These payments will also count for your authorized users, helping them improve their scores over time.

Cons

  • You’re responsible for authorized users’ charges: You’re responsible for any charges your authorized users make each month. If they run up an excessive amount of debt and refuse to pay for it? You’re responsible for covering that payment. You can control some of this by setting spending limits for authorized users, but adding additional cards to your account is still risky.
  • A damaged debt-to-income ratio? Your debt-to-income ratio, a measure of how much of your gross monthly income your monthly debts consume, is an important number for your credit score. If your authorized users add too much debt to your American Express card and refuse to pay it off, it could hurt this ratio. This is especially true if you can’t afford to pay off those charges on your own.

Should you add an authorized user to your American Express card?

Adding authorized users is a worthwhile move if you want to help a family member or friend boost his or her credit. The move, though, could be risky if your authorized users charge too much each month. Only add authorized users whom you trust to abide by any spending rules you set up for them.

Source: creditcards.com

Home

About

Contact

Privacy Policy

Site Map

Categories

  • Account Management
  • Adult Nursing Home Guide
  • Alzheimer's & Dementia Medication
  • Apartment Communities
  • Apartment Decorating
  • Apartment DIY
  • Apartment Hunting
  • Apartment Life
  • Auto
  • Auto Insurance
  • Auto Loans
  • Banking
  • Breaking News
  • Budgeting
  • Building Credit
  • Business
  • Car Insurance
  • Careers
  • Cash Back
  • Celebrity Homes
  • Checking Account
  • Cleaning And Maintenance
  • College
  • Credit 101
  • Credit Card Guide
  • Credit Card News
  • Credit Cards
  • Credit Repair
  • Crime and Safety
  • Debt
  • DIY
  • Early Career
  • Education
  • Elderly Personal Care
  • Estate Planning
  • Extra Income
  • Family Finance
  • Financial Advisor
  • Financial Clarity
  • Financial Freedom
  • Financial Planning
  • Financing A Home
  • Find An Apartment
  • Finishing Your Degree
  • First Time Home Buyers
  • Fix And Flip
  • Flood Insurance
  • Food Budgets
  • Frugal Living
  • Growing Wealth
  • Health Insurance
  • Home
  • Home Buying
  • Home Buying Tips
  • Home Decor
  • Home Design
  • Home Improvement
  • Home Loans
  • Home Ownership
  • Home Repair
  • Hospital Marketing Tips
  • House Architecture
  • Identity Theft
  • Insurance
  • Investing
  • Investment Properties
  • Life Hacks
  • Life Insurance
  • Loans
  • Luxury Homes
  • Making Money
  • Market News
  • Medical SEO Guide
  • Minimalist LIfestyle
  • Money
  • Money Basics
  • Money Etiquette
  • Money Management
  • Mortgage
  • Mortgage News
  • Mortgage Rates
  • Mortgage Tips
  • Moving Guide
  • Paying Off Debts
  • Personal Finance
  • Personal Loans
  • Pets
  • Podcasts
  • Real Estate
  • Refinance
  • Renting
  • Retirement
  • Roommate Tips
  • Saving And Spending
  • Savings Account
  • Selling A House
  • Senior Health Care
  • Senior Home Care Tips
  • Side Gigs
  • Skilled Nursing Care
  • Small Business
  • Spending Money Wisely
  • Starting A Family
  • Student Finances
  • Student Loans
  • Taxes
  • Travel
  • Unemployment
  • Unique Homes
  • Work From Home

Recent Posts

  • Business Owner or JOB Owner?
  • Podcast: Insurance For Homeowners and Real Estate Investors
  • Should I Take Less for My Car Just to Get Rid of It? (Hour 3)
  • How I Travel Full-Time By RV And Boat With My 2 Dogs
  • How Interest Rate Hikes Affect Personal Loan Investors – SmartAsset

Tags

away big budget Buy Buying car Credit Credit Card credit cards Credit Score Debt estate Family Fees Finance FinancialWize Financial Wize Home house How To Insurance Interest Rates Investing keep Life Loans Main Make market money More Mortgage News Personal personal finance Products Purchase real Retirement save Save Money Saving savings Spending tax
Bariatrx
Home | Contact | Site Map
2019 Copyright. Bariatrx