February 22

 smart credit moves before Feb. 22

With new regulations starting in less than two weeks, you may need to take stock of your credit card portfolio to determine which cards' terms are changing to your benefit and which will feature changes that could hit you in the wallet.
The most important thing to do, says Lauren Bowne, a staff attorney for Consumers Union, is be aware of your cards' terms. So much has changed in recent months that consumers need to pay attention to what is and isn't featured in their credit cards.
"Even if you're the person who pays off your balance and doesn't even have any credit card debt," Bowne says. "They might get a notice that says they're getting a $100 annual fee. Even people with stellar credit and stellar credit payment histories need to pay attention."

Here are five smart credit card moves to make before Feb. 22:

• Consider waiting to get new credit cards until after Feb. 22, because new accounts are protected from interest rate increases for the first year. As issuers compete for customers in the new reform law landscape, there may be good deals and offers for people with good credit.

• For existing accounts, consider a balance transfer from higher interest rate cards to accounts with lower interest rates. Some issuers are offering good customers interest-free or low-interest balance transfers of at least a year. Remember that there is a cost of 3% or 4% of the amount transferred, so weigh that decision carefully. Also, take note of what the new interest rate will be after the promotional period ends. If it's higher than the rate on the old card or only slightly lower, it may not be worth it to switch.

• Have a backup card or two. Issuers can still lower your credit limits and close your accounts without notice. Make sure you have more than one card as a backup in case this happens to you and you need a credit card for emergencies. [especially if you don't have a savings account]

• Charge a small amount on those other cards every other month and pay it off in full when the bill comes. This avoids any dormancy fees that may be assessed and may prevent the companies from closing the accounts for inactivity. Some issuers require a minimum amount of charging to avoid inactivity fees, so check your terms.

• For college students or any young adult under 21 who is responsible with credit, the best move could be to get a credit card now while you still can get one on your own. Young adults' access to credit will be restricted by the new law. Starting Feb. 22, you'll have to get a co-signer who is at least 21 years old or show proof you have the ability to pay. 
•  

tip:
Pay more than the minimum amount due. It will help you pay your credit card debt off faster. The new law mandates that your billing statement include a prominent notice of how long it will take you to pay off your debt.


I was recently told by someone at the Macy's credit card department that even if you pay a measly $5 more, it makes a difference. I haven't tried it since I am busy with the "snowball" effect to debt, wherein I intend to tackle the small balances first before trying to pay off the big balance cards. Your money will snowball into a big snow mess that you can hurl at the big cards later. At least, that's how I envision it.


article link:

http://articles.moneycentral.msn.com/Banking/YourCreditRating/5-smart-credit-moves-before-feb-22.aspx?page=all


www.creditcards.com

Thus far, I made a big payment on a high apr card and then didn't realize i would be late in making the rest of my payments. As a result I now have higher apr rates on the rest of my cards.

Paid the full balance of my Chase credit card with my tax refund only to have the card closed 7 days later. The reasoning?because my balances were high on my credit report and why had I made such a big payment anyway. Chase actually asked me where I had gotten the money. I was tempted to say I had robbed a Chase bank for the funds.

I asked Chase what the reasoning was behind that decision since the reason I had made such a large payment was in order to REDUCE my balances. Was told to just reapply for a Chase card later. Which based on this experience will never happen.

Budget is ok. And I now have 8 cards left with the 9th closed suddenly as punishment for trying to be responsible about my debt.

Hope this doesn't happen when I try to pay off my other cards.

Location:Learning the hard way

the awakening

I am a college grad with a decent job yet I am struggling to make ends meet. After paying 2 rents this month (from my former Chicago apartment) to avoid being sent to collections I sat down and for the first time in my life took a hard look at my spending habits after I was basically sent to collections and had to pay off the charge immediately in order to avoid it having reported on my credit report.

Finances:

Credit Cards:
9: 5 major cards and 4 store. all of these are basically maxed out.
student loans-well nothing could be done about that.
car lease with 1 and a half years left. It is also unrepaired since I used the insurance money to fund my move to Chicago to start school. No longer in school.
rent

Cutting costs:
so after taking this all in I decided to cut down on my food costs. I can't pay off my credit cards if I keep blowing all my money on food, shoes I can't afford and manicures. Now usually I only and exclusively eat out. Morning, noon, and night. While you're thinking to yourself that I am a dumbass for doing this, I'd like to tell you that I don't have a kitchen. I rent a small apartment (month to month, no contract) and it only has a refrigerator and microwave. Ok fine I am a dumbass because that should suffice. Goodbye Nordstroms, goodbye frivolous spending habits.

My weekly food budget is $70 a week, which should be more than enough.

First day with a new lifestyle and mindset:


So this Friday, I went to Starbucks and ordered my last grande mocha frappucino in a venti cup with extra whipped cream. At $4.93 a day I could no longer afford this with my budget. Not if I wanted to be able to eat lunch during the work week at least. And it was truly delicious. But not actually fulfilling in any way since I am usually starving within an hour. This frappucino was also free since I had gotten a free drink coupon from someone I know. Ok so then lunch was a whopping $8 because I had to try the new spicy chicken nuggets. And then I spent another $6 on a big mac meal because it was Friday night.

Saturday:
Woke up and wondered what I could possibly do for the day. I had no laundry to do, no desire to clean up my place. I decided to make and eat oatmeal since breakfast is for champions. Ok. Within half an hour I was starving again. Luckily my mother called and asked if I wanted to go out and have lunch.  Though I probably spent too much gas and too much on tolls, it was worth it to spend the day with her since she usually just sits at home all day without going out.

So far the budget is still on track.