4 Signs You Should Dump That Store Credit Card

Are you often tempted to apply for a store credit card when offered a discount? If so, then you might have more than a few store credit card accounts open. And while the discounts and perks that these cards offer can be nice, store cards are not always the most competitive products.

So if you are unsure of whether to keep all of your store credit cards, consider these four signs that it’s time to dump one of them.

1. You never use the card. A lot of people sign up for a store credit card just to get a one-time discount. If you did that, and then never used the card again, you probably don’t need to have that account open forever. Keeping it open for no reason will unnecessarily open you up to the possibility of a fraudulent charge, and can be a hassle when you receive meaningless statements or have to change your address when you move.

2. You find yourself paying more to earn rewards. Retailers love store credit cards because they act as an advertisement that customers keep in their wallets. But if you are passing up much better deals at competing retailers in order to earn a tiny amount of rewards on your store credit card, then your store card is costing you more money than its saving.

3. The rewards are uncompetitive. Store credit cards will vary tremendously in value of the rewards offered. While some cards might offer outstanding rewards worth 5% of your spending or more, others may only return a paltry 1% to 2%. In fact, there are now cash-back cards offered with no fee that will rival the rate of return for some weaker store cards, and you can spend your cash-back rewards anywhere you want, not just at a particular store.

4. You carry a balance. While store cards can be great for earning rewards and receiving perks, they are generally a very expensive way to borrow money. Store credit cards typically have between 20% and 30% APR, which is much higher than most credit cards offer to applicants with good or excellent credit.

Alternatives to Store Credit Cards

Once you have made the decision to stop using, or even cancel your store credit card, what are your alternatives? To replace your store credit card, consider these general purpose credit cards.

American Express Blue Cash Everyday and Blue Cash Preferred

The American Express Blue Cash Everyday card offers 3% cash back at U.S. supermarkets on up to $6,000 per year in purchases, 2% cash back at U.S. gas stations and select U.S. department stores and 1% cash back on all other purchases. These rewards compare favorably to many store credit cards. In addition, new cardholders can receive $100 cash back after spending $1,000 on their card within the first three months of account opening. In addition, new cardholders also receive 15 months of interest-free financing on both new purchases and balance transfers, with a 3% balance transfer fee.

There is no annual fee for this card, but to get an even higher rate of return, consider the Blue Cash Preferred version. It offers 6% cash back at U.S. supermarkets on up to $6,000 per year, 3% cash back at U.S. gas stations and at select U.S. department stores, and 1% cash back on other purchases. This card also features the same 15 months of promotional financing, but offers a $150 cash-back bonus after spending $1,000 within three months. There is a $75 annual fee for this card.

Citi Double Cash

If you want to just forget bonus categories and earn a high rate of return on all of your spending, then the Citi Double Cash card is strong choice. It offers a total of 2% cash back, 1% at the time of purchase and another 1% when payment is made. This card also features 15 months of interest-free financing on both new purchases and balance transfers, with a 3% balance transfer fee. There is no annual fee for this card. This card also requires excellent credit.

If you’re unsure where you stand, you can get a free credit report summary, updated every 30 days, on Credit.com. Because applying for a card causes a small, temporary ding to your score, it’s a good idea to choose a card marketed to people whose credit profile is similar to yours. You don’t want to take the hit to your credit score and not get the card.

Note: It’s important to remember that interest rates, fees and terms for credit cards, loans and other financial products frequently change. As a result, rates, fees and terms for credit cards, loans and other financial products cited in these articles may have changed since the date of publication. Please be sure to verify current rates, fees and terms with credit card issuers, banks or other financial institutions directly.

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This article originally appeared on Credit.com.

This article by Jason Steele was distributed by the Personal Finance Syndication Network.

How I Sold My House & Paid My Real Estate Agent Only $500

Selling a house is a major undertaking. Even if you hire a professional to help, there’s plenty you’ll need to do yourself — from making the final decision on asking price, clearing clutter to making the place look as inviting as you can. And the help you get can be costly. Agents typically charge about 6% to 7% of the home sales price as commission. A lot of people think about doing it themselves, or at least doing some of it themselves.

Back in 2013, Daniel DiGriz, CEO of marketing firm MadPipe, took the plunge. He wanted to leave Oklahoma City to relocate to New York City… but first he needed to sell his home. And he wondered if he really needed to spend 6% or 7% to get professionals to do it for him. He decided to give himself three months, then hire an agent if the house hadn’t sold.

He had worked for a real estate software company before, and he knew some of the basics, but still he was nervous about trying to do it himself. “Then I looked at the enormous cost and said, ‘I can do that,’” he recalls. And for the most part, he did. There was plenty of labor involved, and also a good bit of self-education. He did his homework, studying a book and websites.

And then he came up with a strategy. He decided it was important to get it on the Multiple Listing Service, Zillow and Trulia, and he was willing to pay for that (he paid a listing agent $500 to list it, but not to screen calls, market the home or go to closing). He also offered a discount if a buyer came without an agent. “Rather than paying 3 to 3 1/2%, I gave them half of that as a credit,” he said.

Because a lot of people do their initial house-hunting on the Internet, he suspected they could find their way to his listing on their own before hiring an agent. Here are his tips:

Spend time crafting the description. Be clear and direct, and emphasize what’s nearby. If you can walk to restaurants and nightlife, say so. If it’s in an excellent school district or next door to a park, point that out. You want it clear enough so that it will encourage potential buyers for whom it will be a good fit. Being vague can waste everyone’s time. DiGriz also created a landing page for his home, with photos and descriptions.

Do some staging. DiGriz said a trip to the dollar store for new cloth napkins and so forth can freshen things up. He says he spent perhaps $150 on staging, with a few flowers and plants. DiGriz also noted that a coat of fresh paint can go a long way toward creating the impression that the home is well cared for.

De-clutter. You should be packing to move anyway, DiGriz says. He filled plastic tubs full of items that did not actually need to be in the house and put them in a storage unit. Result: roomier closets, less clutter and no worries that something valuable might disappear when potential buyers toured the house.

Take pictures. You will need to make sure there’s plenty of light and use a wide-angle lens. (Don’t have one? You can buy a stick-on attachment for your smartphone.)

Get a pre-sale appraisal. The cost is likely to be $300 to $400, he said, and it assures buyers that the price you are asking is a fair one. It also tends to discourage lowball offers. This is different from a comparable home price analysis or broker price opinion (BPO) done by real estate agents. An appraisal involves actually going inside your home and estimating the value. While home shoppers may be somewhat influenced by the smell of freshly baked cookies, an appraiser is more likely to be impressed by a new roof.

Put yourself in the buyer’s place. Make the transaction easy and fair. DiGriz used standard real estate transaction templates for offers. He recommended a title agency whose offices were nearby, though the buyer, who paid closing costs, was free to choose.

Be home and available when you show the house. This flies in the face of conventional wisdom. DiGriz said he greeted visitors, offered refreshments and then allowed them to walk through the house, exploring on their own. He was around to answer questions, like how old the roof was or about the access door on the floor, but he did not follow them around as they looked.

Make buyers responsible for financing. He was unconcerned about pre-approvals or pre-qualifications. Buyers had to close in a timely manner or lose their earnest money. (If you’re a buyer interested in buying this way, it would be essential to do what all would-be homeowners should do: know what your credit profile looks like — which you can check for free on Credit.com — and what sort of loan you can expect to qualify for. If you are just starting this process, the place to start is by checking all three credit reports, which you can do for free, for accuracy and disputing any mistakes if need be — finding out there’s a problem late can derail a home sale.)

His eventual buyer called just four hours after the listing appeared online. They have kept in touch, with DiGriz answering questions about the location of plumbing pipes and spare keys. Most recently, he was asked about marketing and selling the house. His buyers bought the house for their daughter, then in college, to live in. It has since risen in value, and she has graduated — and they’re hoping to sell the house the same way it was sold to them.

Related Articles

• How Selling Your Home Can Impact Your Credit
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This article originally appeared on Credit.com.

This article by Gerri Detweiler was distributed by the Personal Finance Syndication Network.

Can You Afford to Quit Your Job?

Thinking about leaving your job? The decision can be both scary and liberating, but if you are ready to follow through, it’s important to make sure the process is thought out. Whether you are quitting to get more freedom, higher earning potential or a more enjoyable career path, you will likely need money in the bank and a plan in place. Check out the financial moves you should make before you quit your job so you can have a smooth transition out of your current position.

Calculate Your Barest Budget

You will probably have to cut back if quitting your current job is going to bring a disruption in cash flow. It’s important to adjust your budget while taking all your current expenses into account. Bringing it down to the essentials, you may have to forfeit extras like dining out, travel, cable TV and new clothes, at least for a little while. It’s a good idea to prepare yourself in case you have low- or no-income months ahead. Now that you know how much you need to live, consider freelance, consulting or part-time work to replace the steady paycheck.

Build Up Serious Savings

It’s always a good idea to have an emergency fund saved up. If you don’t have one, it’s time to start building one. Ideally, and especially if you are leaving your job, you should have at least six months of expenses saved up. Now that you have your pared-down budget calculated, you have an idea of what you will need to get through the next half of a year.

You can adjust that number higher or lower depending on your circumstances, keeping in mind that anything excess is just adding a longer buffer period for yourself. If possible, you may also want to look into any bill prepayment your providers allow. Sometimes you can pay things like utility or mortgages up to a month or two in advance. This way, you don’t have to worry about getting behind on your bills, loans or debt as a consequence of your departure from employment. (A late payment can have a serious negative impact on your credit scores. You can see how your payment history is currently affecting your credit scores for free on Credit.com.) It’s important to make this clear and not just send in extra money with another payment so you know what the money is going toward.

Review Retirement & Health Care Options

Salary isn’t the only thing affected when you leave a job. You also will want to consider other financial issues often tied to your job like life insurance and retirement savings plans. If you have been contributing to your employer’s 401(k) plan, you will have to decide whether you should leave it, roll it over into a new account or cash out. The most important factor to consider with a retirement plan change is that you should let your plan administrator handle the switch and be aware of possible taxes and fees.

Health care options also often change when you leave a job, but remember that federal law mandates that you have coverage. If you are single and fairly healthy, you might be able to purchase a cheaper policy from the government or another insurance provider. You should also consider other perks you get at your job and how life without those will affect your monthly expenses.

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This article originally appeared on Credit.com.

This article by AJ Smith was distributed by the Personal Finance Syndication Network.

5 Steps You Can Take to Protect Your Bank Account

Phishing, scamming and stolen identity problems — we have all heard about them. But how do you ensure that you don’t become a victim? Once you go through the process of choosing a savings or checking account, it’s important to keep the funds inside them — and yourself — safe. Illegal access to your financial records is one of the fastest-growing fiscal crimes today. Check out some ways you can protect your bank account below.

1. Enroll in Online Services

Having paper statements sent between your address and the bank invites the possibility of mail theft, so consider using your bank’s website primarily. Keeping track of your bank details online can also be more convenient. If you do prefer getting physical copies of your account, it’s a good idea to know when they should arrive. This way you can pick them up promptly and alert your bank if you don’t get them as expected. And, of course, shred all paperwork before discarding.

2. Be Aware of What You Share

You should only give your account information for transactions if you know the company or individual you are dealing with. Be especially careful if you are operating the transaction via phone, text or online. Don’t give anyone your PIN, avoid ATMs that look out of place and only access your account from secure URLs and WiFi connections.

3. Use Strong Passwords

It may seem obvious, but one way to ensure your security is to come up with a password other people can’t guess. It’s generally not a good idea to make your password something as obvious as your birthday or your significant other’s name. Try to create a series of numbers, letters and symbols you can remember but others wouldn’t necessarily think of. Be sure you also cover the keypad when you type in your PIN or password and change them regularly. Lastly, set up security questions only you know the answers to for prompting you to change the password or to access the account.

4. Check Accounts Regularly

Keeping an eye on your account will help you know when something is wrong. It’s important to read your statement carefully at least once each month so you can be sure all the purchases you are charged for and withdrawals listed are ones you authorized. You also may want to track debits and automatic payments because it is not always easy to remember all your transactions.

5. Get Bank Alerts

Even if you are vigilant about checking in with the bank, you probably won’t be able to catch everything as it happens. That is why many banks offer alerts to monitor and notify you about specific account activity. For example, you may want to set at alert for anytime more than $200 is spent from your account. It’s a good idea to inform your bank of anything out of the ordinary as soon as possible to help solve any problems right away and minimize damage.

You may also want to consider monitoring your credit, as a scammer can use your personal information from one account to open new accounts in your name for fraudulent purposes, and you might not even know it’s happening. You can check your credit scores for free every 30 days on Credit.com — any major, unexpected changes in your scores could signal fraud and you should pull your full credit reports to confirm (you can get free annual credit reports at AnnualCreditReport.com).

Thieves and scammers can gain access to your bank account a number of ways, so the more preventative measures you take, the safer you can feel. Implement the above steps you feel comfortable with, stay alert, and do all you can to avoid any possible bank account trouble.

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This article originally appeared on Credit.com.

This article by AJ Smith was distributed by the Personal Finance Syndication Network.

Families Spent $3K More on College This Year

For the past four academic years, families tried to reduce the amount of money they paid for college, even as tuition prices steadily grew. For the first time since the 2009-2010 school year, families of undergraduate students spent more than $24,000 on average for a year of college, according to the “How America Pays for College” report from education finance company Sallie Mae.

The $24,164 spent by an average family for the 2014-2015 term was a significant jump from the 2013-2014 average of $20,884. After the previous peak at $24,097 in 2009-2010, families seemingly tightened their belts, spending an average between $20,884 and $21,889 for the next four academic years. The $3,000+ (16%) jump in how much people paid for college this past year suggests families were more willing to absorb the higher costs.

At least, so it seemed to be the case for higher-income families. In 2014-2015, high-income families paid about $12,000 more for a year of school than middle- and low-income families. In the prior academic year, that difference was only $7,000. No matter what type of institution the student attended, spending increased, but families with students at private four-year colleges forked over about $6,000 more than they did last year, while students at public schools spent only about $2,000 more on average.

Where’s that money coming from? For the first time since 2010, parents’ savings and income surpassed grants and scholarships as the main source of funding for an undergraduate student’s education. About 32% of college costs came from parental sources, while 30% came from scholarships and grants. After that, student borrowing was the most common source (16%), followed by student income and savings (11%) parent borrowing (6%) and contributions from friends and relatives (5%).

While student borrowing wasn’t the main source of funding, students borrowed an average of $681 more for the 2014-2015 school year than those who borrowed for 2013-2014. Student loans have a huge impact on a borrower’s credit standing — sometimes, it’s the first form of credit a person ever gets — so it’s crucial to manage those loans well. Without student loans, young consumers may want to explore credit cards as a way to start building credit. (Here’s a guide to credit cards well-suited for students.)

As soon as students establish their credit histories, it’s crucial they start paying attention to their credit reports and credit scores to help them get a positive start to this aspect of financial adulthood. You can see how student loans affect your credit by pulling your free annual credit reports and getting your free credit scores every 30 days on Credit.com.

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This article originally appeared on Credit.com.

This article by Christine DiGangi was distributed by the Personal Finance Syndication Network.

3 Ways Your Weekend Is Busting Your Budget

You penny pinch and save all week but somehow still end up over your budget when number crunching time rolls around. There’s a good chance your weekend activities may be setting your balance out of whack. It’s a good idea to take a careful look at your spending patterns and try some weekend hacks to keep on track. Below are the common weekend budget-busting causes and some suggested solutions to help you break the overspending cycle that’s wasting your weekday hard work.

1. Peer Pressure

It can be hard to say no when your friends have an itinerary full of weekend fun, but not everyone has the same income, debt or financial goals. This doesn’t mean you can’t spend your weekends with the people you love, it’s just important to remember your budget while making plans.

If you go somewhere with more expensive items, you can cut back on what you order or purchase — weekends are not a spending competition. For example, in a restaurant order an appetizer as your meal or split a meal. In a store, it’s OK to window shop instead of spend.

The first step is taking a moment to determine what you are willing to spend and what is important to you about the activity. If you are really interested in a band or singer, you may still be able to afford the concert but not the front-row seats.

Once you’ve determined what you are comfortable with, the next step is talking to your friends about finding some things that everyone can afford and enjoy. Maybe they will also be OK with the cheaper seats. Or maybe you all can go to the concert and hang out beforehand (tailgate) before going off to your separate seats. The important thing is to talk ahead of time so you don’t end up feeling resentful later.

2. Directionless Spending

If you find yourself swiping your credit card without much consideration just because it isn’t a workday, this could be a problem. Maybe your regular schedule doesn’t apply, but the rules of your budget still should.

Don’t let yourself go shopping after brunch just as something to do or get that last drink just because you don’t have to work the next morning. It’s a good idea to plan out your weekend so you know what you can afford and what you might want to skip. This way you can to maximize your time and your finances.

Also it’s a good idea to check out free events in your city as these can expose you to new things and new people without sacrificing your precious funds. Especially in summertime, you can often find great activities, shows and events at discounted prices or even for free.

3. Losing Track

No matter how much planning you try to do, free time can sometimes lead to some unexpected expenses. This doesn’t mean you should give up on budgeting altogether. Almost equally important to setting limits ahead of time is tracking the aftermath.

It may seem tedious and time-consuming but it’s a good idea to review your spending regularly and see where you are getting off track. Seeing where your money goes can help you pinpoint budget leaks, adjust your behavior to limit your spending, and can help your estimates be more accurate for the future.

Perhaps you need to allow yourself a little more money in your budget for eating out on weekends in the summer than you did in the winter. Or maybe you need to rethink entertainment options that are less expensive. Reviewing your budget and tracking your spending regularly can allow you to make a budget that works better for you. Overspending on your credit cards can also have bigger consequences on your credit standing. You can see how your balances are affecting your credit scores for free every month on Credit.com.

Sticking to your budget can be hard, but don’t let yourself blow all your hard work (and hard-earned cash) on the weekend.

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This article originally appeared on Credit.com.

This article by AJ Smith was distributed by the Personal Finance Syndication Network.

Another Consumer Nukes Their Student Loans Through Bankruptcy

A reader contacted me to share his story of dealing with his unmanageable student loans through bankruptcy. Just recently I’ve written two articles that showed how people have fought the battle against their student loan companies and the bankruptcy court agreed to eliminate their debt. Read this and this.

The cases of consumers making there case with the bankruptcy court are coming more frequently now. And while I’ve always been a big proponent of people hiring smart attorneys to help them with their bankruptcy, these cases reinforce some of the research by Jason Iuliano, J.D. See How to Really Discharge Your Student Loans in Bankruptcy. Many Can. But Never Try.

In 2013 Iuliano said, “99.9 percent of student loan debtors in bankruptcy never attempt to get a discharge” and “In fact, debtors without attorneys were just as likely to receive hardship discharges of their student loan debt as were those debtors who had counsel.”

Ron Nichols reached out to me to share his story of dealing with his student loans without an attorney to file the necessary second step, the Adversary Proceeding.

Nichols said, “I just want to share my story about what happened to me in regards to student loans and bankruptcy. Hopefully, you can share it with your many readers.

My wife and I co-signed our three children’s student loans to the tune of $254,000 (about $1,900 a month). At the time, we were healthy and prepared to back them up if they were unable to.

Two of our children had difficulties in securing jobs–so they couldn’t afford the payments to Sallie Mae (SM) and National Collegiate Trust (NCT). The loans we co-signed were all private ones ($254,000).

My wife had to retire on disability and I was medically retired from Air Force Special Ops due to a brain tumor. Our incomes dropped so bad that we had to file for chapter 7 bankruptcy (BK). Before filing that, we were hit with a couple of lawsuits because the vast majority of the loans were in default.

We were so stressed out with the constant phone calls and threats that we didn’t know what to do. We answered every call and tried to workout a payment agreement with them. They were having none of that. This went on for three years before the lawsuits. We always heard that student loans couldn’t be discharged in bankruptcy. I was fully aware that they couldn’t garnish our income or levy our bank accounts because we receive Social Security and Veterans Administration disability benefits only. As stated above, all the loans are private so we are protected from garnishments. Our house is under-water too. That’s why I found it hard to believe that SM and NCT wouldn’t negotiate with us.

Here is what I did. I couldn’t afford an attorney so I researched tons of websites to see how to go about it Pro Se (representing yourself). When I filed bankruptcy, we immediately got relief from phone calls from all creditors including SM and NCT for about two years. That was worth it just in itself. We then filed an Adversary Proceeding with our bankruptcy which is basically suing the student loan lenders for relief due to undue financial hardship. Sallie Mae told the court our $30,000 loan with them was completely discharged at the first Status Conference!

After going back and forth with Status Conferences for about two years with NCT, they got scared that they would lose and offered us a settlement a week before the Adversary Trial. Their offer was to settle all our loans with them (15 of them), for $80,000 at $195 a month with 0% interest! The original loan balance was $224,000. The peace of mind this gave us was tremendous. We can finally get on with our lives without worrying about the crushing stress of student loans. I hope more people can find solutions to their student loan dilemma in some way.”

Not long ago a few legal educators said they were, “part of a larger study, Jim Greiner, Lois Lupica, a couple of dozen students, and I have been working to create a DIY guide to a no-asset Chapter 7 bankruptcy guide, complete with a module on representing yourself through an adversary proceeding to discharge student loans.” Dale Jimenez, one of the lawyers involved, said, “If we succeed, we hope that the materials we create will be useful to attorneys as well as pro se individuals.”

If I look into my crystal ball I see more people who could get a total or substantial bankruptcy discharge of their student loan debt, like Nichols did.

To help this movement, the definition of what constitutes an undue hardship, the magic words needed for the discharge, have been recently clarified by the Department of Education. See Department of Education Reaches Decision About Student Loans and Bankruptcy.

For me, that adoption of undue hardship by the Department of Education is a green light for those that meet the criteria defined here.

In that recent announcement by the Department of Education the government got behind the undue hardship argument for federal loans. In fact to be crystal clear, what the government said was, “If this consideration leads to the conclusion that repayment would impose an undue hardship, the holder should consent to, or not oppose the discharge, as authorized by the governing statute and regulations.”

If consumers can’t afford a bankruptcy attorney to take on their case, maybe they might just have to file an Adversary Proceeding themselves and fight the good fight. Not all consumers would be willing to adopt that approach but recent cases confirm it can be a successful strategy to crawl out from under life crushing student loan debt.

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This article by Steve Rhode first appeared on Get Out of Debt Guy and was distributed by the Personal Finance Syndication Network.