Uncategorized

A higher credit limit can help in an emergency, allow you to make any necessary large purchases and even, in some instances, improve you credit score. Asking for a higher credit limit, however, can seem awkward.

Higher credit limits are typically offered to people with the highest credit scores for a simple reason”theyre considered the most likely to pay their bill on time and not default. Someone with a low credit score will have a harder time convincing their credit card company to give them a higher limit, though its not impossible.

The average credit limit as of December 2016 was $8,071, according to data from Experian, a credit bureau.

Improving Your Credit Score With a Higher Limit
Looking to finance a large purchase such as a home renovation? Or maybe you just need to cover some monthly expenses. These are a few reasons why you might want a higher credit limit. But theres another advantage to seeking a credit limit increase”it can improve your credit score.

Your credit limit affects your credit utilization ratio”a lower ratio can lead to a higher credit score. A rate of 25 percent is best to improve a credit score, meaning youre using up to 25 percent of the credit available on the credit card.

How to Ask for a Higher Limit
Whatever you need the money for, youre more likely to be approved for a higher credit limit if you have a strong credit score and no recent history of late payments.

Pick only one credit card in your wallet to ask for an increase on. If you ask all of your credit card issuers for a higher credit limit, each will be treated as a separate inquiry and that could hurt your credit score. It can also help if you don’t apply for new credit cards in a short period of time when asking for a credit limit increase on an existing card. Such applications can lower a credit score temporarily.

To ask for a larger credit limit, just call your credit card provider and ask for it. Ask them to consider your years of membership, strong payment record and low credit utilization rate.

Dont Be Desperate or Greedy
Tell your credit card company why you deserve more credit: Youve never missed a payment and you always pay your balance in full each month, or you pay more than the minimum balance.

You also dont want to ask for too high of an increase. This can be a sign of greed and desperation, which can lead to denial and require you to wait a few months before applying again for a credit limit increase. Aim for 10 to 25 percent more, up to $250 for every $1,000 in credit you already have. If you have good credit, you may be able to ask for more.

Published with permission from RISMedia.

When preparing to batten down the hatches during a storm, don’t forget to pay attention to your furry family members. Loud, unpredictable noises and an uptick of electrical currents in the air can make your pet seriously scared when the weather goes wild. Here are three ways to soothe your dog or cat during an electrical storm.

Create a comfortable space. Many animals like small, tight spaces when the weather becomes unpredictable. (Some even jump in the bathtub!) Find a cozy spot for your pet (preferably in the same room you’re in) and bring in their favorite blanket, bed or toy.

Turn on calming music. Animals have long been known to react to soothing music the same way people do. Play some classical tunes or lullabies to help put pets at ease.

Distract them. Just like people, animals can be distracted in the face of fear. Play their favorite game or pull a special occasion treat out. Eventually, they may associate storms with treats and toys, instead of static electricity and thunder.

Published with permission from RISMedia.

Paying for something with a credit card instead of cash can be easier for a number of reasons. While it can be difficult to find an ATM when you need it, carrying around a lot of cash can be dangerous, and some things are nearly impossible to buy with cash.

And by “cash,” we also mean a debit card, since money that’s pulled immediately out of a bank account through a debit card doesn’t have as many protections as a credit card does.

Here are four specific instances when paying with plastic is a much better idea than using cash:

Digital Purchases

Ring tones, games on your smartphone or anything else you buy online that’s delivered digitally can be difficult to get a refund on if you pay with a debit card or some other form of digital cash.

If something is wrong with the game you’ve bought, and the app seller doesn’t help you, paying with a credit card will offer more protection than a debit card if you didn’t get what you paid for. Not only will your credit card company help you resolve the issue and put off the charge until the problem has been rectified, they will also contact the seller for help.

Electronics and Warranty Extensions

Televisions, computers, refrigerators and other big-ticket items that come with a manufacturer’s warranty often have the warranty extended for a year when paying with a credit card. Check with your credit card before making a purchse to see if it offers this free service. And only use the card if you can afford to pay off the balance when the bill arrives so that you’re not paying interest on the new TV set you’ve bought.

Undelivered Items

If you’ve used a credit card to pay movers who didn’t fulfill their contract, or the flowers you ordered for mom were never delivered, you can have your credit card company withhold payment until the products or services have been received. In other words, you won’t pay until you’re satisfied.

Travel

It can be difficult, if not impossible, to reserve a plane ticket, hotel room or rental car with cash. A debit card can be used for some reservations, but a “hold” on the card for the expected total might hurt your ability to withdraw cash from your account or use the debit card elsewhere.

Credit cards make travel a lot easier. They often offer perks such as free checked luggage, protection against trip interruption or lost luggage, and free rental car insurance.

Published with permission from RISMedia.

No matter what you’re saving for, having some extra breathing room in your budget is important. Whether you’re putting money away for a down payment or a new car”or looking to build an emergency fund that can get you out of a financial jam”we could all use a little extra cash in our pocket.

While saving a chunk of change can seem daunting if you’re just getting started, setting money aside can make life easier. Here are some simple ways to get some extra money for whatever your savings goal is:

Get a side job. Working 10 hours a week at a nearby coffee shop, department store or delivery service can earn you a few hundred dollars a month to get your emergency fund going. Or, it can help pay a child’s expenses at college”or make retiring in a few years easier. Walk dogs, drive for a ridesharing company or search for other jobs where you can set your own hours.

Host a garage sale. There are probably too many things around your home that you don’t use that someone else would gladly pay you for. Have a garage sale and get rid of that extra lamp that’s collecting dust in a back bedroom, or sell your old books, clothes, jewelry and furniture.

Jump on the short-term rentals train. Airbnb and other short-term rental sites can help you rent out a room in your home to earn some extra money. If you’ve never done it before, try it for a weekend when you’ll be around so that you can get your feet wet without being out of pocket. If it’s successful, you might consider renting out a spare room for a few nights a week or renting out your entire home when you’re away on vacation.

Cut expenses. Shopping for insurance, cable TV, internet service and other things can save you a fair amount of money each month. The problem is, you won’t see that savings in your checking account unless you take the money saved and directly deposit it into a savings account. For example, if a new auto insurer saves you $100 per month, set up an automatic transfer for $100 each month from your checking account to a savings account.

Refinance loans. This can take a little time and some research, but you may be able to find better interest rates on your credit cards and personal loans. Shop at banks and make sure the lower rates aren’t negated by possible transfer fees. Then, just like with cutting expenses, figure out the amount saved each month and transfer it to a savings account.

This article is intended for informational purposes only and should not be construed as professional or legal advice.

Published with permission from RISMedia.

State-sponsored 529 accounts are a tax-free way to pay for a childs college education. Opening an investment account when theyre young and contributing to it regularly and basically forgetting about it until theyre ready to go to college is one way to deal with it.

The money is usually invested in mutual funds, so parents dont have to keep a close eye on how theyre performing.

Because 529 plans have a much shorter time to grow than retirement accounts do, a severe market drop can affect how much money they have for college. For this and other reasons, its a good idea to set up a 529 wisely and keep an eye on it.

Conservative investments are one way to go, especially if all of your college money is in a 529. Most 529s offer age- and risk-based investments as the child grows, moving from stocks to more bonds as they get older, much as a retirement fund can. In addition, some 529 plans offer savings accounts insured by the Federal Deposit Insurance Corporation.

Whatever returns a 529 plan gets, the best way to get the most out of it is to contribute to it regularly, such as through automatic deductions from a family checking account. Contributions arent deductible on federal taxes but many states offer a deduction on a state tax return.

Investment allocations can be changed twice a year, so be sure that the change youre considering is one you want to make.

Another way to save with a 529 plan is to use one of 13 prepaid tuition plans offered by 12 states and one not-for-profit organization. They allow participants to pre-purchase future tuition at a predetermined rate today.

The most widely offered 529 plans are college savings plans that typically use mutual funds to grow contributions that parents make to the plan.

If your child doesnt want to go to college, a 529 plans beneficiary can be changed to another family member to use for college.

If the money isnt used for educational purposes then the earnings, not the contributions, will be subject to income tax plus a 10 percent federal penalty. Some plans may also charge extra fees.

Published with permission from RISMedia.