Credit cards all have the same goal of getting its users to spend more. However, not all of them are made the same. The differences don’t lie in just the credit limits, though. It also reflects on what you can get from using the card.Continue reading →
A couple years ago I found a $20 bill in the parking lot outside a movie theater. Nobody was around so I decided to keep the money. “Finders Keepers” they say. Cash has become incredibly more difficult to keep up with in the present day of credit and debit cards. Fact is credit and debit card transactions have increased dramatically over the past five years. In fact, you can now store your cards on your phone. You don’t ever have to reach into your wallet to pull it out in some cities. With these recent technological advances in payment methods, we have bitcoin.
Bitcoin has become widely more popular in recent years due to mainstream coverage and wider acceptance of the currency. A few years ago, there weren’t any retailers that accepted bitcoin; however, it has become much more mainstream and today there are many retailers that accept bitcoin. Bitcoin hasn’t come without it’s challenges though. There have been many hurdles the currency had to overcome. A lack of ability to regulate payments and their origins has scared off many governments to making bitcoin part of their monetary policy. In fact, the Securities and Exchange Commission (SEC) rejected Cameron and Tyler Winklevoss’ bitcoin ETF they were trying to introduce.
Despite the hurdles that still exist for bitcoin in the future, it has come a long way in development over the past few years and leading the charge is retailers that accept bitcoin. Many bitcoin believers think that wider use and acceptance of bitcoin will lead to a great future for the block-chain currency.
Biggest Retailers that accept bitcoin:
Overstock.com– Online retailer with deals on everything for your home and your family
DISH Network– American direct-broadcast satellite service provider
Expedia– Online travel retailer
WordPress.com– Website creation tool
1-800-Flowers– Floral gift retailer
Zynga– Mobile gaming company
The company that sticks out to me is Overstock.com because they were the first major retailer that began accepting bitcoin payments on their site. In fact, back in 2014 when they began accepting the currency sales were averaging around $15,000 a day on bitcoin transactions alone for the site. Paying for bitcoins is also very simple at retailers. As simple as adding a credit card to your payment information in fact.
Overstock.com has now been accepting bitcoins on their site for almost three years. They have repeatedly explained the benefits they see to accepting bitcoin and have advocated that other retailers accept bitcoin. Some retailers are still hesitant to accept it due to the volatility that can exist. Although the volatility has stabilized in recent months, the SEC rejection of a bitcoin ETF showed the currency still wasn’t mature enough to prevent drastic volatility as it dropped 18% upon the news.
For a comprehensive link of retailers that accept bitcoin: Click Here
Do you have bitcoins? What places would you like to see start accepting bitcoin payments?
Having a credit score can have many benefits. Wait, having a good or great credit score can have many benefits. As we go through life, credit becomes an essential tool for an individual to progress through society. You can use credit to purchase everyday items, a car or a house. Without credit, some of the essential purchases we rely on to carry us through our lives every day would be unavailable, such as a car for transportation to and from work. Having a credit score and a good one at that can allow you to get the best deal on large purchases and also helps create a financially responsible person. But just how does one get a starting credit score, and where do you begin? I will lay out some of the easiest ways to start down the path of a good credit score.
The second step to building a starting credit score is to continue purchases with your credit card and meet the monthly payment date, along with exploring an additional option of building your score. If you rent an apartment, sometimes the apartment complex allows you to report your on-time payments to credit agencies. Additionally, if you have student loans you are paying back, this also will show up on one’s credit report. Time is a big factor in your credit score. It usually takes at least six months for you to build your first credit score. If you make on-time payments in full, you can expect a score anywhere in the range of 675 to 740.
Step 3 to getting a starting credit score:
By step 3, you should already have shown a positive pattern to creditors through making payments in a timely manner. The most important part of this step is just to be patient. Building a good or great credit score takes time. Two of the bigger factors that impact your credit score are the length of time you have had credit and the number of accounts you have that required credit. Chances are as you start building your credit both of these factors won’t be too much in your favor.
In summary, there are many benefits to building a good credit score, but it all boils down to a few simple factors. Firstly, you need to begin building credit through a $0 annual fee credit card, student loan repayment, etc. Secondly, you MUST make your full payments and make them ON TIME. Finally, you need to be patient. It takes time to build a great credit score, but if you budget correctly and make sure not to spend above your income level then a great score will eventually come.
I recently spoke with an individual who was excited to begin his budget. He downloaded the spreadsheet available on my site and asked me to look over it. Everything looked good except for one thing I noted. This individual had a category as follows:
Credit Card Payment (minimum)
This shocked me for a number of reasons. First and foremost, the minimum part that was included. Secondly, paying off your credit cards is not an expense. For example, if you go to the grocery store and spend $50.00 on groceries but apply the charge to your credit card, then your budget should reflect a $50.00 purchase on groceries. The credit card is simply a means to pay for it. Finally, I recognized that this individual had credit card debt, and he assumed paying off in minimum installments would eliminate it. Yes, theoretically, as long as no further debt was incurred, but it would take a while.
This ultimately led me to the following conclusion. This individual had a significant amount of money remaining in their budget every month. I advised him that if I was in his situation I would do the following:
Make sure I am able to cover all of my necessary expenses in the budget. This would include rent, gas, food, student loans, etc.
See where some expenses can be cut. Bringing his lunch to work versus going out to eat might be the smartest financial decision until he gets his credit card debt under control.
Use any extra money at the end of the month to pay off the remaining balance on the credit card. Credit cards are notorious for having extremely high-interest rates. The quicker you tackle this type of debt, the more you save.
Set a goal for paying off the credit card debt. We agreed by the end of the calendar year. Once the debt is paid off we could redo the budget and include categories for savings, retirement, and other financial goals.
Credit card debt can be a nasty thing, but a budgeting approach to handling it can make your financial life much better. Use a budget to pay off your debt if you have any, then you will be able to create additional space to begin planning for your financial future more aggressively.
Growing up I was told by my parents, “With good credit, you can afford anything”. That was then, and this is now. We all saw what happened with the housing bubble and what will soon probably happen with student loans. Credit is important, but not meant to purchase things above your means.
Having good credit is important; however, using that credit isn’t always wise. I saw an info commercial the other day for a product that cost $250. They were offering people 12 months of interest free financing. If you have to finance $250 for a 12-month period then you already have money issues and shouldn’t be buying it in the first place.
A friend of mine had an old Ford Expedition with a couple hundred thousand miles on it. He bought it for around two grand, drove it for 12 months, and then it broke down. Either he didn’t have another two grand lying around to purchase another piece of junk, or he wanted something a little more reliable. Either way, he decided to purchase a used one for around ten grand this time. He didn’t have enough money to purchase the car, so he needed financing for the purchase. Problem was, he had no credit. He was offered an interest rate of 13% for a car loan that was over 36 months. An absolute ridiculous rate. He ended up getting his mother to cosign on the loan and got it for 1.9%, very good and reasonable.
Moral of the story… You never know when you need credit. It is important to have it established for that rare chance that you do need it. Young people are notorious for abusing credit cards. They spend and spend, and I can only assume they are disillusioned that they never have to pay.
Those individuals who have a good mindset around money should consider establishing credit in one way or another. Establishing credit by signing up for a credit card is fairly easy. Proceed with caution. I would only recommend that someone get a credit card if he or she has income (don’t be a college student without a part-time job at the very least). If you don’t have any credit then start with a well-known card such as through Capital One or Chase. Charge a tank of gas on the card every month. Circle the date when the amount will be due every month and pay off the balance.
Showing responsibility early on when it comes to credit cards will not only keep you away from high-interest debt, but it will also allow you to avoid a 13% or higher auto loan if and when you might need it.