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About The skanner. (Portland, Or.) 1975-2014 | View Entire Issue (March 28, 2012)
News Dollars & $ense: Make Your Credit Card Work Choose the Right Card with the Right Terms and the Right Rewards for Maximum Benefits If you’re like most people, your mailbox is overflowing with credit card offers. Before you shred the next batch, take a look and see what the credit card companies are offering these days. You might find a deal that’s better than what you already have stuck in your wallet. Companies are offering everything from airline miles to groceries to electronics as incentives for using their partic- ular credit card. Find the card and benefits that are right for you and you can rack up some really nice rewards. A few tips for success: 1. Find the perfect card. So which card is going to be “your” card? That depends. What benefits are you looking for? Do you want to collect airline miles for a trip? Do you want to receive rewards from a particular store or vendor? Maybe you want cash back on each purchase instead. For- tunately, there are many choices out there and with a little research you can find a card that suits your needs. 2. Compare offers. Don’t jump to sign up for the first offer that looks good. Be sure to read the fine print because interest rates, annual fees, payment terms and reward redemption will vary widely from compa- ny to company. Know what you’re getting. 3. Skinny down your wallet. Once you’ve added a new card you might want to consider closing older accounts. Closing accounts that have higher fees or interest rates can save money. However, there can be draw- backs to closing established credit card accounts. Understand the poten- tial impact on your credit score before you close down old accounts that have a good history. 4. Access to low interest funds. If you need ready access to cash, many credit card companies offer no interest, or very low interest rates called teaser rates, for a certain length of time on cash advances. Carefully check the terms on your card, but don’t overlook this option for accessing funds when you need them. 5. Fringe benefits. Many credit cards come with extra benefits most people don’t use or even know about. Some offer addi- tional car or accident insurance when you travel. Others provide an extended warranty on certain purchas- es. Know the details so you can take full advantage. 6. Don’t forget to redeem. As you start piling up points, don’t forget to use them. Some rewards will have an expira- tion date on them. Don’t lose out on the very benefits you signed up for in the first place. Smart Money While you’re enjoying the benefits and rewards of your credit card, be sure to heed these additional tips: • Avoid unnecessary fees. Make sure you know about and understand any late payment or over-the-limit fees. You may also incur fees for cash advances and balance transfers. Some companies may even charge a fee if you pay by phone or online. Know the terms of your card and stick to them. • Don’t just make the minimum payment. It may look great on paper that you only owe $25 for last month’s shop- ping spree, but ideally, you’ll pay your bill off each month or pay as much of the total as you can so you’re not incur- ring interest charges, which can really accumulate and are not generally tax deductible. • Pay on time. Know when your payment is due and get that bill paid on time, allowing plenty of time for the mail to get there or for online transfers to take place. On-time payments will keep you from incurring late fees, keep your interest to a minimum, and keep your credit score looking good. Shop Around, Reap the Rewards A lot has been written about the perils of credit cards and the debt people can amass by using them. But credit cards can also provide some excellent benefits that can help you achieve your goals, whether that’s travel or a little cash back in your pocket at the end of the month. Dollars & $ense is a regular column on personal finance prepared and distributed by certified public accountants from the Oregon Society of CPAs (www.orcpa.org). For more money tips, follow ‘Oregon Saves’ on Facebook: facebook.com/OregonSaves. An Urban Entrepreneur Foundation Program If you’re a high schooler and you like new technology, here you won’t want to miss the iUrban Teen Tech Summit. The summit offer a chance to learn about what's new in the amazing world of technology. You will get to preview, hands-on, cutting edge products, such as mobile devices for students, on-the-go, gaming and more. The all-day event will run from 9 a.m. to 3:30 p.m. at the University of Portland campus. It is open to all teens, but minority and underserved groups from Portland Metro and S.W. Washington regions are specially encouraged to attend. Find out how to kickstart a career in gaming, cybersecu- rity ormobile apps, as well as how NIKE uses technology. Hear from the experts and get inspired by a real life Tuskegee Airman, as featured in the movie Red Tails. (And go home with a goodie bag.) Spaces are limited. The first iUrban Teen Tech Summit program launched on the Wash- ington State University Campus in October 2011. It served 102 local underrepresented youth, 26 parents and 30 volun- teers. Intel, Nike, Tripwire, Applied Cinematics and AM:PM PR presented products at the event. Sign up online at www.iurbantech.com. Page 12 The Portland Skanner March 28, 2012
