Billing itself as “The World’s Most Prestigious and Versatile Credit Card,” Barclays’ Visa Black Card has garnered a lot of attention in recent months. What does this card offer to its users and who can benefit the most from it?

If you like the idea of exclusive deals, then the Visa Black Credit Card might appeal to you. Barclay claims to limit this particular card to 1% of U.S. residents. And it’s made of patent-pending carbon, which makes it stand out from the plastic cards up for grabs elsewhere.

How much will this exclusivity cost you? You can expect to pay an annual fee of $495. Since this annual fee is substantially higher than run-of-the-mill credit cards, it’s worth noting that membership gives you access to a rewards program and 24-hour concierge service.

Visa Black Credit Card Review: Concierge Service & Rewards

First, the good: the concierge service can help you with travel arrangements, restaurant reservations, and more, whether you need it for your business or not. For instance, you can learn more about local events, arrange for gifts or flowers, set up conference services, and gain assistance in tracking down the right gifts.

This can be of help when you’re away from home or vacationing — you won’t have to pay extra for flaky Wi-Fi access or waste time hunting for a place to eat if you can call the concierge service. You can email in your requests if that’s easier than phoning, too.

As for the rewards program, how does 1% cash back on your purchases or airline points without blackouts or restrictions sound? To be honest, it may be hard to make up or justify the annual fee on this card unless you use it often. At any rate, you can redeem your rewards by logging into your account or by calling customer service for a Redemption Specialist.

For alternative cards that offer better rewards and/or no annual fees, check out this list of top rewards cards:

For additional options, here’s where to check out some great cash back credit cards; most of these have no annual fee!

Visa Black Credit Card Terms

To sweeten the deal, the Visa Black Card offers luxury gifts and a Travel Lounge Priority Pass. If you spend a lot of time in the air, you’ll be able to stop by airport lounges in more than 100 countries, over 600 airport lounges total.

What about the APR? It’s going to be 13.24% at the account’s opening. Not necessarily the lowest rate card out there. The APR will vary based on the Prime Rate. For cash advances, the APR is 21.99%, variable based on the Prime Rate.

In the event you’re already carrying a balance on another card, you have the option of transferring that balance over to the Black Card. For six months, that balance won’t accrue any interest. After the introductory period, your APR for balance transfers will rise to 13.24% based on your credit history. Now if you’re interested in seeing other cards of this sort, here’s where to check out some top balance transfer cards.

Additional Benefits of the Visa Black Card

Book your travel fare with the Black Card and you’ll receive worldwide travel insurance worth $250,000, if your travel’s eligible. Afraid of losing your bags? There’s baggage delay insurance, which covers $100 a day for 3 days. And if you’re renting a car, there’s a collision damage waiver. No one expects trouble when they book their travel itinerary, but the Black Card has you covered with trip interruption/cancellation insurance.

Your purchases have some coverage, too. Purchase Security means that you have 90 days to make a claim on eligible items; you’ll see the item replaced or repaired, or you’ll be reimbursed, up to $500 per eligible claim. With the Warranty Manager Service, you’ll be able to access warranty registration and Extended Warranty Protection for things you purchase. For the Extended Warranty Protection service, that means your purchase’s original warranty period will be doubled, up to a year’s time.

Is this the right card for you? For the average consumer, it may be possible to find less exclusive credit cards with more favorable APRs, which is important if you tend to carry a balance. However, despite the substantial annual fee, you might be able to make the card pay for itself if you’re already predisposed to be a heavy duty credit user who pays off the balance each month.

I would suggest that you compare your credit cards against the services offered by this particular card. Will the upgrade in benefits justify leaving your other cards behind? Don’t forget to look over the Terms and Conditions, which will disclose the penalties as well as the benefits of the Black Card.

This is a post from The Smarter Wallet.

Visa Black Credit Card Review

Having problems with an upside down mortgage? All is not lost.

Believe it or not but miracles still do happen. Imagine how this New York couple must have felt when a reputable bank instituted foreclosure proceedings against them. How can they win, one might ask? They must have prayed for a miracle. Lo and behold! A miracle did occur. Thanks to a sympathetic judge in New York. Yes, there are still kind people out there who protect the financially challenged and not just the financially gifted. A big question mark though on the use of the word “gifted.” This judge not only canceled the indebtedness but discharged the mortgage as well. It’s almost as if the couple now has a clean bill of financial health and need not worry any further about settling what was once an apparently insurmountable obligation secured by their home.

So how did this couple ever merit this blessing and the heart of the judge? Here are some tips that may be useful to those similarly situated.

Can You Stop Foreclosure & Get Your Debt Canceled?

As the case we discussed has illustrated, it is possible to fight foreclosure and win, even though it may be an uphill battle. Of course, each case is different.

1. First, upon the filing of a lawsuit to foreclose on your property, you must reasonably request the court for a settlement conference. This would show good faith on your part that you intend to settle your obligation and not escape liability.

2. Second, your proposal for settlement must be reasonable. Don’t ask for the moon by demanding a waiver of the indebtedness. No, this just won’t happen. Not even in the movies. Neither should you tinker with the interest (ie. ask for your interest charges to be modified). That’s how banks make money so don’t mess with that. A good start for a reasonable request would be a modification of terms. In other words, this is like admitting that you owe so much but you just need additional time to pay it off. One tried and tested method is to accompany your requested modification with a substantial payment. As the saying goes: “Show me the money!” Banks thrive on money. They need to see the money.

3. The last tip is often the most overlooked and neglected. You need to engage the services of a lawyer to assist you in your requested loan modification. True, lawyers are costly but they cost money because they can save you money or give you the much needed breathing space to settle your debts. Bear in mind that the people you will be dealing with have their own lawyers who themselves prepared the loan and mortgage documents. You need a lawyer to level the playing field.

In the particular foreclosure case in New York, the judge actually considered the social ills that might result if the home were to be foreclosed. Would the foreclosure be “repugnant to the public interest when seen from the point of view of public morality?” Heavy stuff, one might think. The court hastened to add that foreclosed properties are oftentimes boarded up, which in turn leads to vagrancy, dumping, vandalism, litter and the eventual decline of property values in the area.

Is there a glimmer of hope for those facing foreclosure of their homes? The bank referred to has filed an appeal to a higher court. Prudence dictates that we await the decision of the appeals court.

(Disclaimer: This is not intended to be legal advice but purely for informational purposes. The services of a lawyer have to be engaged if legal advice and representation are sought.)

 
This guest post was written by my dear brother-in-law, Earl Fischer, who is one passionate lawyer.

This is a post from The Smarter Wallet.

Can You Stop Foreclosure & Get Your Debt Canceled?

Cash back credit cards are a great option for cardholders who want to get money back when they spend. If you’ve got good financial habits and excellent credit, these cards can serve you well. Since credit cards are handy for paying recurring bills like utilities, for online shopping, and for the basics like groceries and gasoline, you may want to seek out a credit card that offers cash back so that your purchases can recoup some money for you.

How do you know if this type of credit card is right for you? These cards can be the ideal choice for you if you don’t have much credit card debt to manage and if you have good credit history so that you can qualify for lower interest rates and pay fewer fees.

To maximize the impact and use of a cash back card, it would be best for you to pay off your balance each month. That way, you’re not paying interest on your purchases, which would neutralize the benefits you would get from using the card.

Best Cash Back Credit Cards

With these guidelines in mind, let’s take a look at some popular cash back credit cards.

Citi Dividend Platinum Select MasterCard

Are you looking for a flexible rewards card? Here’s a great cash back card from Citi which will allow you to earn 5% cash back on hotels, car rentals and restaurants and other spending categories. Check to see if you need to enroll for these rewards each quarter. You’ll also earn 1% cash back on all other purchases.

Now while all this sounds pretty standard for such cards these days, the Citi Dividend Platinum Select MasterCard also lets you receive rewards for cash advances and balance transfers, which are benefits I only see offered through a few cards. You’ll get 1% cash back for cash advances and $5 on individual balance transfer transactions amounting to $1,500 or more. You’ll also get an average 5% cash back when you shop at the Citi Bonus Cash Center where there are over 400 retailers to visit.

As for terms, this card offers an introductory rate of 0% APR on balance transfers for 15 months. Rates go up after this period based on your credit history, are variable and pegged to the Prime Rate. There’s also no annual fee on this card.

Chase Freedom MasterCard

Here’s a card that offers 5% cash back on categories such as airlines, hotels, groceries, home improvement, department stores, and gas. You can earn 1% cash back on your other purchases. If you shop through the online Ultimate Rewards Mall, you may be eligible for up to 20% cash back, depending on the purchase and merchant.

There’s no annual fee and the rewards don’t expire. In the event that you don’t want the cash back, you can choose to redeem your reward points as gift cards, for travel, or statement credits.

In addition, you may qualify for a 0% intro APR on balance transfers for 12 months and a 0% intro APR on purchases for 6 months.

This card has an alter ego in the Chase Freedom Visa, which offers a bonus of $100 in cash back after you spend $799 in the first 3 months of using the card. However, there is no 0% intro rate period available.

Blue Cash from American Express

If you’ve used this card and spent $6,500 and over during the year, you can net 5% cash back on purchases at drugstores, grocery stores, and gas stations. For other types of purchases, you’ll earn 1.25% cash back. If you’ve spent less than $6,500, you’ll earn 1% on gas, groceries, and everyday items; earn .5% on other types of purchases.

This card doesn’t have an annual fee, either. The APR for purchases is 0% for 6 months. Then your interest rate will be variable, currently 17.24%, 19.24% or 21.24%, depending on your credit history.

If you add family or friends to your account, their purchases can help you earn your cash back faster. Your cash back will show up as a credit on your statement about a month after your first year with the program. That means no complicated forms to fill out to get your money back.

Discover More Card

This card offers a whopping 5% cash back on categories like travel, gas, groceries, and restaurants, which makes it a serious choice especially for credit card holders who need to travel quite a bit. Purchases in other categories can earn up to a 1% cash back bonus.

If you shop through the Discover online mall, you might earn from 5% to 20% in cash back bonuses.

The introductory rate for purchases is 0% for 6 months. Then the rate will rise to 11.99% variable, but may be more, depending on your credit history. You’ll encounter lower interest rates if you have excellent credit. This is also a balance transfer credit card. For balance transfers, you can benefit from a 0% APR for 12 months. This card doesn’t have an annual fee.

As a bonus, this card offers $75 cash back if you spend $500 in your first three months of using the card.

Capital One No Hassle Cash Rewards

You can earn up to 2% cash back on gas and groceries and 1% on other kinds of purchases. The rewards don’t expire and there’s no limit to how many points you can earn. The introductory APR for purchases is 0% for 9 months; then it’ll be 19.80% variable.

Getting your cash back is easy as calling the Rewards Center or going online. You can also opt to get your cash back automatically.

The annual fee for this card is $39. You’ll need average credit to apply.

Before you sign up for a cash back card, make note of any fees you’ll have to pay, the interest rate for purchases, balance transfers and cash advances, and the steps you need to take to receive the cash back. Compare a few cards — you might find a winner that you can put to work.

This is a post from The Smarter Wallet.

Best Cash Back Credit Cards: Our Picks

I have never understood the debate between credit or debit card usage. After all, credit and debit cards are just pieces of plastic. That is about the only similarity to me.

I will say it up front, I am a chronic debit card user. Very seldom does cash hit my purse. In my part of the world anyway, debit transactions have been a way of life for a very long time. I rely so heavily on debit that when the lines are down or there is a cash only line at a store, I get very confused. How will I leave with my new found treasures?

The Credit Cards vs Debit Cards Debate

Seriously, though, the decision to use debit cards or credit cards for purchases is made with little thought about credit rating or how long I may have to get my money back if something should go amiss. Can I afford the item today? Is it expensive enough that I may want to utilize the extended warranty that comes with my platinum card? Am I purchasing online? Am I prepared to pay interest on this item, or can it wait until I physically have the funds in my EverBank savings account? Is this a necessity for my household that simply can’t wait for the funds to be available?

No matter the economic situation, aren’t these considerations that go with any major purchase decision? I hope so. If not, perhaps we need to start with a wants and needs talk before any such debit/credit chit chat. My teenagers hate the wants and needs talk. I will admit though, that the convenience of debit cards have helped me in the teaching department over the years.

Watch Your Debit Card Usage

The ultra-convenience of a debit card can be a tough lesson. Simply swiping a card and not having the actual money leave your wallet is almost too good to be true. It’s just too easy to do. Reality hits when that bank statement arrives, though, doesn’t it? Where did that $500 go? A couple of $50’s here, $35 there, and you are down to an uncomfortable balance, even for a teenager.

Because I love my internet banking, keeping track of my debit purchases is easy. If my financial institution didn’t have a great online component, I would probably use more cash. I need to know where my balances are, so I prefer debit: the instantaneous-out-of-my-account feature is something I like about it.

For me anyway, the downfall of using a debit card, is in part, the convenience of using it as well. Sounds backwards, but I have come to rely so heavily on it, that I will literally go for groceries with a few dollars on my person. And if the machines are down or something goes amiss, it can be inconvenient and let’s admit it, embarrassing. I am sure in major shopping centers, the grocery store has an ATM in house to aid these situations, but in my world, the ATM is located at a more inconvenient location. I guess that’s why my store still accepts a check in case of an emergency.

In day to day life, I don’t even carry a credit card with me. Impossible to use the shiny little jewel if it is securely locked in my house. Hiding the credit cards certainly helps to alleviate any expensive lapses in judgment. If the money isn’t in my account, I can’t spend it. Works for me.

 
Contributing Writer: Carol

This is a post from The Smarter Wallet.

The Credit Cards vs Debit Cards Debate

Evaluate all your options before settling on payday advance loans; these should be a last resort. But some people, including our contributing writer, Alexis A., have found them useful. Enter into a payday loan arrangement with your eyes wide open.

You see a lot of negative press regarding the payday loan industry. There are Internet articles, print ads and even government initiatives all aimed at regulating this industry. As a consumer of these loans from time to time, I often wonder how people become “trapped” in the vicious cycle created by payday lenders and where personal responsibility comes into play.

An Alternative To Payday Loans

Before I go off and defend my own use of payday loans, I would like to state that there are other personal loans you can take that are infinitely cheaper than cash advance loans. There are requirements you need to meet in order to qualify for such loans though — first, for the cheapest, unsecured loans available, you’ll need to have good to excellent credit, and you may also have to wait a little to get such loans funded. I’m talking about peer to peer lending loans, which offer very affordable rates depending on your credit history and background. You can read more about them in our review of Lending Club, a premier peer to peer lending network, as well as in this report on well-known peer to peer lending sites.

Are There Benefits To Payday Advance Loans?

Now let’s move on to payday loans, which I’ve taken out on a few occasions. In my experience, these loans have been a lifesaver in many situations that have arisen in my adult life. They’ve helped me cover some unexpected travel expenses, medical bills, and simple budget shortfalls thanks to some shoddy accounting work on my part. I know going in, that borrowing $200 is going to cost me $230 in a matter of a few short weeks. I also know that if I choose to re-borrow that money it’s going to cost me $30 again and again, until I stop borrowing. I can’t emphasize enough that one should be fully aware of the consequences of such expensive loans before signing up with a lender. Don’t apply for a loan like this unless you first have a plan for paying it off completely and rapidly.

Now the biggest draw for me is the ease in getting a loan like this and its relatively low cost in comparison to what my bank would charge me if I bounced a few checks. Some bank fees are quite steep and can catch you by surprise. I mean, for a $200 payday loan, I will pay the payday lender a fee of $30. But if I managed to overdraft my bank account for $200, the minimum it would cost me would be $36, or the cost of one overdraft fee. Of course, this cost goes up based on the number of items that clear my account while it’s in the negative, at the rate of $36 a pop.

Payday loans are also exponentially cheaper than a pawn loan, title loan or even some personal loans and has the added benefit of being unsecured, meaning that I don’t have to give up any personal property in the event I default on the loan. People complain about the low loan limits, but I’m grateful for the limits. It makes them easier to pay back when they’re due. And this is the goal, right? To pay off the loan when it’s due and not renew it for another and then another and yet another term after that.

The main point most people miss when it comes to taking out a payday advance loan is that it is a short term solution. Yes, the interest rates are astronomical, but you’re not paying for this loan over a year. You pay it back in a matter of weeks. The idea is to cover a financial emergency and then pay off the loan as quickly as possible.

I believe that payday advance loans are extremely powerful financial tools if used properly and with care. But take note that this financial tool should be recognized as one that carries a higher risk than other products, given the problems numerous borrowers have faced. Still, eliminating these products from the marketplace will take away a viable short term solution for a wide range of customers, many of whom are responsible but who may lack other financial options. I would personally be placed at a disadvantage if the current administration achieves their goals to effectively eliminate payday loan companies from the marketplace.

This is a post from The Smarter Wallet.

Are There Benefits To Payday Advance Loans?

Whether you have a job, have a business or go to school, transportation and related gas expenses are inevitable. Everyone has somewhere they have to go, even if they try to minimize driving. Gas credit cards with benefits and rewards are a great way to cut down on the rising costs of gas, a household necessity for most of us.

How Do Gas Credit Card Rewards Work?

Much like any other credit card with a rewards system, you earn cash back or rewards for every dollar charged. Incentives might include cash back on gas, cash back on related purchases, points for rewards and more. Every time you fill your tank, you’ll earn something extra. That always makes me feel a little bit better about stopping for gas, regardless of the current prices posted.

Which Ones Are The Top Gas Cards?

With many gas cards to choose from, here are a few top contenders based on user experience:

Discover Open Road Card. This flexible credit card offers an interest rate of 0.0% for 6 months from the date of account opening, after which the standard APR (a rate between 11.99% variable and 20.99% variable) applies. The benefits:

• Earn a full 2% cash back on any gas or restaurant purchases.
• Get 5% to 20% cash back for shopping through their online shopping mall.
• Get up to 1% unlimited cash back bonus on all other purchases automatically.

Basically, everything you charge on the Discover Open Road card will earn you cash back. There is also a Discover Student Open Road Card to ensure your (older) children always get back home for the holidays to visit!

Discover More Card. You’re right on time to take advantage of serious cash back on summer gas purchases. Much like the Discover Open Road Card, you get an interest rate of 0.0% for 6 months from the date of account opening, then the standard APR (a rate between 11.99% variable and 19.99% variable).

• Earn a 5% cash back bonus on various purchases based on the month.
• From April to June, cardholders earned 5% cash back for home and fashion purchases.
• From July to September, 2010, earn 5% cash back on gas, hotels and movies.
• Between October and December, 2010, you’ll earn 5% cash back on restaurants and fashion for the holidays.
• Finally, if you spend $599 or more on the Discover More Card during the first 3 months, you get $50 additional cash back. Those are sweet and timely rewards!

 
American Express Blue Cash Credit Card. Backed by the powerhouse American Express, this rewards card charges 0% interest for 6 months, then readjusts to as low as Prime Rate + at 13.99%.

• Earn up to 5% cash back at gas stations, supermarkets and drugstores.
• Receive 1.25% cash back on all other purchases with unlimited cash rewards and no minimum spending requirements.
• Rebates are awarded annually for each rebate year (which is 12 consecutive billing periods).
• If you purchase up to $6,500 of eligible purchases, the rebate is 1.0% for everyday purchases and 0.5% for all other eligible purchases.
• If you purchase $6,500.01 or more on your American Express Blue Cash Credit Card, the rate increases to 5.0% for everyday purchases and 1.25% for all other eligible purchases.

It pays to use this card all the time!

 
True Earnings Card from Costco and American Express. Like the others, the interest rate is 0% for 6 months, then after the intro period is over, it rises to Prime Rate + 11.99%.

• Earn 3% cash back for the first $3,000 spent on annual gasoline purchases, which can really add up! After the initial $3,000, you earn 1% cash back from gas purchases thereafter.
• Earn 3% cash back for restaurants, 2% cash back for travel and 1% cash back everywhere else.
• No annual fee for the True Earnings Card from Costco and American Express with your paid Costco membership.

I love to buy items that I constantly use in bulk from Costco, such as paper towels, toilet tissue paper and pasta. With rebates, this can add up to significant savings off everyday items ranging from gas to groceries!

Credit cards with gas rewards make it possible to earn cash back on all your everyday purchases. Why not save a little extra every time you shop? If you pay your monthly bill in full, you won’t even be charged interest and those rewards are yours to keep!

For more great credit card picks, check out these best student credit cards, 0% balance transfer credit cards and best secured credit cards.

This is a post from The Smarter Wallet.

Top Gas Credit Cards With Great Benefits

If you’ve got an upside down mortgage or if you’re behind on your mortgage payments, perhaps it’s time to consider a mortgage loan modification!

Since last November, we’ve been on a quest to modify our mortgage loan. Health problems, rising costs and lowered income were factors we realized might impede our ability to meet our monthly mortgage payments. When our mortgage payments were increased in February, we missed our first payment in eight years. We are now many days in default. Following is what we’ve learned so far about the loan modification process.

Behind On Your Mortgage Payments? Get A Mortgage Loan Modification

This is our personal story on how we are going about pursuing a mortgage loan modification.

HUD Hope For Homeowners Is For Educational Purposes

In the beginning, we relied on HUD Hope for Homeowners to make progress on our behalf. We soon learned that this housing assistance program gives you options but does not pursue them for you. By giving you basic information about the process, HUD attempts to give you a greater understanding of loan options for you to negotiate with your lender directly.

Banks Want All Their Money

Despite the fact that the government has jumped in with a mortgage bailout and rescue plan, many homeowners are still finding themselves in trouble. With times the way they are, even banks and insurance companies that participated in a bail out still want all their money; they’re not going to cut you too much slack. In my case, my conversations and files with these companies were “lost” several times, impeding and halting the loan modification process. When I attempted to follow up, I was hit hard for payments rather than given negotiable options.

Visit A Physical Location

After several months of meaningless banter and lost paperwork, we decided to visit a physical location personally. Our mortgage lender has a branch bank in our neighborhood. We sat down and discussed our situation with the branch manager on two occasions. On our second visit, she realized we were serious about meeting our obligations and saving our home. The bank manager facilitated our first meaningful negotiations with the homeowner retention division of the bank. She also faxed paperwork on our behalf to ensure that the documents were received.

Assemble Your Paperwork

If you need a mortgage loan modification, make sure you have crucial paperwork at your fingertips including:

• Two months of bank statements if you are self-employed or receive direct deposits;
• Two months of records, if you receive pay stubs;
• Tax returns with W-2s for the past two years;
• A letter or affidavit of hardship explaining why you cannot currently meet your monthly mortgage payments, i.e., health issues, unemployment, increased expenses, etc.; and
• A summary of your current financial obligations including monthly utilities, insurance and outstanding loans and credit cards.

Follow Up Constantly

Each time I send paperwork or receive a warning from the mortgage lender, I call to speak to a representative about it. Following up is crucial to making progress. Every month, the number of foreclosures increases, which means you are just another account number in a stack of papers. Making calls keeps your file moving. Recently, I was told by the bank that I did not qualify for a loan modification but a negotiator was finally assigned to my file. The negotiator will attempt to work out a viable arrangement based on one of several programs. I was told to wait for the negotiator to call me in the next few weeks.

Keep On Moving, Don’t Stop

As I waited for the negotiator to call back, I continued to worry that my loan might fall into default given the wait. Foreclosure proceedings could be initiated after 90 days, after all. Though I was reassured that all procedures were stayed while my file was being evaluated, I haven’t had much luck with the lender in the past. I decided to call the State Banking Department to explore my options and here’s where I found out about several free debt counseling services that helped people face mortgage modifications. These free services including the state Fair Housing Authority, Catholic Charities and the United Way. Be prepared, however, to leave messages with these agencies as they are all overburdened with telephone calls about foreclosures.

Don’t Get Discouraged

I felt a bit anxious and discouraged after I found out that my home loan modification was declined and there was nobody I could talk to. But eventually, I received a call back from all three agencies. And here’s the good news: because my husband is a disabled veteran and we feel we were victims of a predatory lender, the Fair Housing Authority will represent us in negotiations. There is no fee for their services and we’ve scheduled a meeting with them. Hopefully, something positive will result from these meetings. I’ll be sure to update you about the progress we’ve made!

This is a post from The Smarter Wallet.

Get A Mortgage Loan Modification If Behind On Mortgage Payments

Mango is more than a luscious tropical fruit. Mango Money is a prepaid debit MasterCard which offers a great alternative to cash. If you want to avoid credit checks or don’t have a bank account, Mango Money is an easy way to get a handle on your cash.

What Is A Mango Money Card?

Mango Money is a way to manage money without using a traditional bank account or credit card. You load the prepaid Mango card with money and can only spend what you have. Just like with other bank and money accounts, your deposits are fully FDIC insured so you don’t have to worry about them. Once you apply for a Mango Money card online, your card arrives in the mail within 7 to 10 days. Some other good things about this card? There are no application or activation fees and for now, shipping and handling is free.

Funding A Mango Money MasterCard PrePaid Card

How do you get money into your Mango Money card to spend it? There are a few ways to load up:

• Direct Deposit. When your Mango card arrives in the mail, it includes a Direct Deposit form. In a few steps, you can have your paycheck directly deposited into your Mango Money card. After you receive your card, you can also access Direct Deposit instructions online. This is handy for people who do not have a bank account but want the instant gratification of direct deposit.
• Bank Transfers. You can move money from your regular bank account to your Mango Card. Simply log in to your regular bank account, choose transfer and enter your Mango account number to indicate where you want to send your money.
• Cash At Retailers. Do you operate with cash rather than checks or direct deposits? If you have a cash and carry business, you’ll appreciate the Green Dot® MoneyPak® that converts cash into electronic cash. You can just load it right onto your Mango MasterCard PrePaid card. You can purchase a MoneyPak® from thousands of national retailers including Rite Aid, Walmart, Kmart and Walgreen’s. You’re ready to pay bills and more with your Mango card once your cash is converted.
• What’s YAP? YAP is a service to send and receive money on your mobile phone. Your Mango card is YAP enabled to send and receive money from other Mango account holders. Pretty convenient!

Mango PrePaid Debit Card Fees & Charges

Here are the fees associated with the Mango card:

• There is a monthly fee of $5 to carry a Mango MasterCard PrePaid Card.
• If you load $500 or more monthly, that $5 fee is waived.
• It costs $.50 to send money through YAP.
• There is a $4.95 fee from Green Dot® to load cash.
• It costs $2 to withdraw cash from an ATM and $.50 to check your balance.
• Currency conversion for international transactions is 2 percent of the amount of the transaction.

Here’s what’s free:

• Receiving money or checking your balance on your mobile phone is free.
• Direct deposit, bank transfers and mobile or online transfers from other Mango customers are free.
• Your online account statements, account management and customer service calls are free.

Mango Money PrePaid Debit Card Benefits

Several different types of consumers benefit from having a Mango Money Card. Let’s see if you are one of them:

• If you have no credit history, it’s an easy way to get money into an account. Young people on their first jobs are excellent candidates for a Mango card.
• If you have poor credit history. If you’ve made a few financial mistakes along the way and don’t qualify for a bank account, a Mango Money debit card is a flexible alternative that won’t subject you to credit checks. While you won’t build better credit by using the card, Mango is currently exploring ways to change that. As an aside, if you’d prefer a card that helps you build credit, you can check out secured credit cards and read our articles on the subject: here’s how to build good credit and how to establish credit for the first time.
• If you have a cash business. When you get paid in cash and don’t have a bank account, it is difficult to pay bills, place online orders and more. But with the Mango card, you can easily convert your cash to electronic cash at one of thousands of retailers. In minutes, you can use your Mango card to cover expenses.
• If you want to keep your money separate (from other accounts) without having to open another bank account. There’s much less overhead with dealing with a Mango card account as compared to a regular bank account.

The Bottom Line

You still have options even if you have poor credit or no credit. Mango gives all consumers an opportunity to enjoy the flexibility of an account with bank transfers, cash conversion, direct deposit and a prepaid MasterCard. Best of all, with such a card, you’ll never spend more than you have!

This is a post from The Smarter Wallet.

Mango MasterCard Prepaid Debit Card Review

Since the beginning of the credit crunch, many of us have been looking for creative ways to pay off debt. One option I considered was to take a loan out against my 401(k). Here are some of the pros and cons of using your retirement account to pay off debt.

Borrowing from Your 401(k): Hardship Withdrawal Considerations

The Benefits of 401(k) Loans

The biggest benefit of borrowing from your 401(k) is that the only qualification criteria involves having an account with money in it. No other loan product on the market allows borrowers to qualify so easily. But the benefits don’t stop there:

• The interest rate on your 401(k) is usually much lower than any other traditional loan product on the market, which allows you to instantly lower your monthly payments.
• Your payments are generally spread over 5 years and are fixed. This helps reduce your monthly costs while shortening the amount of time it will take you to pay off higher interest, open ended credit lines such as credit cards and home equity lines of credit.
• In some instances, like borrowing to buy or build a home, you can extend your repayment over 180 months.
• The interest that you pay on your 401(k) loan goes back into your retirement account. You are actually paying yourself back for the loan!
• You can borrow any amount from your 401(k) as long as it doesn’t exceed ½ your balance or $50,000. This means that you can borrow what you need.
• In most cases, the 401(k) loan payment is directly deducted from your paycheck, keeping your loan current and preventing the possibility of large penalty fees and interest.

The Dangers of Borrowing from Your 401(k)

Keep in mind that while all of those attractive benefits make borrowing from your retirement account look like a slam dunk, not everything is as rosy as it seems. Believe it or not, there are some pretty significant drawbacks to taking this approach! First and foremost, you are not simply eliminating debt by taking out a 401(k) loan; you are simply replacing one payment with another.

The idea behind obtaining the loan is to use it to pay off more expensive debt so that you can eventually become debt free. In many, cases, however, individuals will pay off credit cards and other loan products with a 401(k) and then simply run the balances back up, saddling themselves with their original loan payments PLUS a new loan payment to boot. Some things to watch out for:

• If you leave or are fired from your current job, most plans will require you to pay back the loan IN FULL within 60 days of your last day. This can hurt if you have taken out a large loan and do not have the means to pay it back quickly.
• The money you have taken out in the loan will no longer be working for you, earning interest in your retirement account. This will have a significant impact on your future balance.
• You are forbidden to continue making contributions to your 401(k) while you have an outstanding loan balance. This, coupled with the loss of any gains on the loan balance, will impact your future retirement balance significantly.
• Lastly, your tax burden will increase due to the fact that your 401(k) contributions are no longer being deferred.

Alternatives to 401(k) Loans

If the thought of having to borrow from your retirement account makes you a bit squeamish, you might want to consider alternative forms of paying off your debt. Here are a few you can consider:

• Balance transfer credit cards. Yes, there’s a risk with dealing with new credit cards, but if you have good credit and are pretty disciplined, you can take advantage of 0% intro rates and terms from certain credit cards to make a major dent in your card balance. Just make sure you pay off your transferred balance before your intro period expires and rates are readjusted upwards. Here’s where to check out more information on 0% balance transfer credit cards.
• A peer to peer lending network. Check out Lending Club or Prosper. Again, if you’ve got good credit, you can join a p2p lending network and apply for relatively cheaper personal loans. You can read more about such networks in our Lending Club review.
• Debt consolidation loans. One way to get lower rates and consequently, lower debt payments is by rolling all your loans into one cheaper loan. The general term for such a loan is a debt consolidation loan, but be aware that there are pros and cons to taking out this kind of debt.
• A home equity line of credit comes as close as you can get when it comes to mimicking the benefits of a 401(k) loan. The interest is usually slightly higher and the loan limits may be more restrictive based on your current credit situation, but in many cases, you can borrow at least as much, if not more than you could through a 401(k) loan. Plus, the interest you pay on a home equity line of credit is tax deductible.
• A home equity loan is another option when it comes to finding a comparable loan product to pay down debt. Like a 401(k) loan, a home equity loan, or second mortgage, is a closed end loan product with a fixed interest rate. The main difference is that the interest rate is usually higher than that of a 401(k) loan. However, since the interest is tax deductible, the ultimate outcome is that the tax break you receive, when factored into the interest rate of the loan, may make the interest on this type of loan actually less that the 401(k) loan.

One of the major drawbacks to both a HELOC and second mortgage is that not everyone will qualify. You must have decent credit, some equity built up in your home and a stable income. All of these things are tough to come by in the current economic climate. The other drawback is that your house is on the line if you have to default for any reason.

Of course, the debt consolidation plan you choose will need to take into account a multitude of factors including your ability to access credit, how much debt you have vs. how much money you need to pay it off, and how stable you are in your job. Given all these options, you’ll need to gauge which is the best kind of loan for your needs.

This is a post from The Smarter Wallet.

Borrowing From Your 401k? Hardship Withdrawal Considerations

We’ve covered secured credit cards and 0% balance transfer credit cards. This time around, let’s check out the roster of top student credit cards available today.

Making the transition from high school to college is overwhelming. Suddenly there’s rent to pay, groceries to buy and classes to attend. Many times, this hectic schedule just doesn’t leave much time for work, and yet those darn student loans only go so far, thanks to loan limits. Before, you were able to let your parents handle the brunt of your financial responsibility, making sure you had enough money to cover your expenses (including what you spent to have a great time with your friends). But, my friends, those days are long gone.

So, just how do college kids bridge the gap between their expenses and their meager income? Most turn to credit cards. Some credit cards are designed with students’ lifestyles in mind. They can be used to pay for books, fees, groceries, utilities or even life’s little unexpected expenses like hospital bills or a car that won’t start. Those cards geared towards the college life are classified as student credit cards. The lenders behind these cards understand that most college students don’t have a lot of established credit and may have variable work histories.

Best Student Credit Cards For Those In College

While there are many student credit cards on the market today, choosing wisely can make a difference both now and in the future. Here is a list of several of the best student credit card offers available today.

The Discover Student Card

The Discover Student Card is an excellent rewards card that is great for students who are trying to get a good credit history established. There are no minimum income requirements and the card offers cardholders 0% liability on unauthorized purchases. Here are a few other great features:

• Earn 5% cash back on category purchases (read additional terms on this criterion).
• Earn 1% cash back on purchases after your annual total purchases exceed $3,000. For purchases under $3,000, you earn .25% cash back.
• Earn cash rewards for using the card and keeping the account in good standing. Cash back bonuses are available on travel, apparel, movies and more.
• 0% APR for 6 months after opening the account.
• Free online account management.
• Multiple design options and monogram option.
• No annual fee.

The main drawback here is that balance transfers will cost you. Discover will tack on an additional 3% to your balance for each balance transfer you process and these balances do not qualify for the introductory 0% interest option. You must also have good credit in order to qualify.

Discover Student Open Road Card

Another Discover rewards card is the Discover Student Open Road Credit Card, which offers cash back bonuses when you spend on gas and dining. It’s a good card that’s geared for those on the go. Here are some of the particulars:

• Cash back rewards are unlimited.
• Earn a full 2% cash back on the first $250 in combined restaurant and gas purchases per billing cycle.
• Earn a full 1% cash back on everything else after you reach and exceed a total of $3,000 in purchases.
• Earn .25% cash back for all purchases if your total is under $3,000.
• No annual fee.
• There’s a 0% APR intro rate for purchases here as well, for the first 6 months of owning the card.

The Citi mtvU Platinum Select Card

The Citi mtvU Platinum Select card is also a great student credit card choice. The interest rate is pretty reasonable and depends on your credit rating, plus you can actually earn rewards by just being a stellar student. Here is the run down:

• Points rewards are given based on a few things:
  1. Spending in restaurants, movie theaters, bookstores, and record stores earns 5 points for every dollar spent.
  2. Spending in all other venues earns 1 point for every dollar spent.
  3. 2,000 points can be earned twice a year based on cumulative GPA.
  4. Receive 25 reward points per month for managing your credit well.
• There are no co-signer requirements, meaning that your parents don’t have to sign.
• There is no minimum income requirement.
• Unauthorized transactions are covered by Citi’s Identity Theft Solutions program.

If you qualify, you can get 0% APR on purchases for the first 7 months. Plus there’s NO annual fee. You can also transfer your balance to this card, but it will cost you 3% per balance, with a $5 minimum. Also note that this card is an option for students with good credit only.

The Citi Forward Student Card

The Citi Forward Student Card is one other student credit card from Citi that’s worth checking out. This card is modeled pretty similarly to the mtvU card, as it rewards students for good financial and economic behavior. Here’s how:

• 100 ThankYou Points are earned each month that the account is paid on time and remains under the credit limit.
• Up to 8,500 Points are earned after using the card for 3 months and if you elect to have paperless billing.
• 0% APR for up to 7 months.
• No annual fee.
• There is no co-signer requirement.
• There is no minimum income requirement.
• Unauthorized transactions are covered by Citi’s Identity Theft Solutions Program.

One of the really nice features of this card is that Citi will voluntarily reduce the APR on your purchase balance when you use your card wisely. Of course, it would be nice if this courtesy was extended to cash advances as well, but hey, any break in the regular interest rate is more than welcome.

The Capital One Student Card

You didn’t think that Capital One would miss out on the opportunity to offer the next generation a credit card solution did you? This card is actually pretty plain jane when it comes to student credit cards. It doesn’t have the flash of some of the others, but it’s still a front runner when it comes to good student card offers. Let’s take a peek and see what Capital One has to offer:

• No balance transfer fees.
• Cash back bonus of up to 2% based on where purchases are made-restaurants, entertainment, cell phone bills and textbooks qualify for 2%, everything else is 1%.
• No annual fee.

This is probably one of the best cards to obtain if your credit is a little less than stellar. Also, cash back is always a great perk, especially since the higher rate of return focuses on responsible spending (except the entertainment category).

This is a post from The Smarter Wallet.

Best Student Credit Cards For Those In College