lifeinmycubicle

You may have received a mail from your Credit Card Issuer that your credit limit has been reduced. There are a few reasons why your credit limit has been lowered. It could be caused by late or missed payments, going over your credit limit, a sudden drop in your credit score and high outstanding balance. Another common reason is due to a change in financial situation. You may have filed bankruptcy or due to short sale or foreclosure. Lending standards have tightened and Credit Card Issuers are taking a closer look at their clients’ creditworthiness. They are looking at their clients’ jobs, if they are or will be affected by the weak economy and where they live. If Credit Card Issuers see reasons that you may potentially default, they will lower your credit limit to protect them and you as well. Here are a few tips on how to protect your credit card limit from being reduced.

1.  Make sure you read your monthly statements. Do not only check the balance portion and account activities. Check if there is a letter enclosed or a notice added to the regular monthly statement.  Credit Card Issuers notify you via mail that your credit limit has been reduced. It is important that you are aware of this change to avoid an overcharge.

2. Always pay on time. Remember that timely payments account for 35% of your FICO score. All you need to do is show that you are responsible. You do not need to pay lots of money each month. If you don’t have extra money to add to the minimum payment, it’s okay to pay just the minimum balance. Just make sure you always pay on time.

3.  Manage your debt-to-credit-limit ratio which accounts for 30% of your FICO score. For example you have 2 credit cards. On credit card A, you owe $3,000 and credit card B, you owe $5,000. Your total debt is $8,000. Your credit limit on credit card A is $7,000 and the limit on credit card B is $9,000. Your total credit limit is $16,000. What does this mean? The total of what you owe which is $8,000 is 50% of your total credit limit which is $16,000. You have 50% debt-to-credit-limit ratio. It is recommended not to use more than 50% of your credit limit. Remember, the lower the ratio, the better.

4. Pay more than the minimum requirement so you can pay off your debt quickly.

5. Don’t apply for a lot of credit cards all at once. Credit Card Issuers will consider you as “Risk”. Multiple credit inquiries in one month will also bring down your FICO score. Also, have a good mix of credit cards, retail cards, loans where you make timely monthly payments. Combining these two (new credit activity and mix of credit cards) accounts for 20% of your FICO score.

Did you receive a letter from your Credit Card Issuer informing you of interest rate increase? You may probably wondering why your interest rate is going to increase. You may have been late on your credit card payment and even payment on your other credit card. Going over your credit limit and if your credit score dropped, these could be a few reasons why. Do you have a lot of credit cards with high outstanding balance? Did you recently file bankruptcy? Did you short sale your home? These may be the other reasons why your credit card issuer is increasing your interest rate. Now, you want to know what to do, right?

1. You may choose to Opt-out of the increase in rate. Credit card issuers send you 15 days notice before they increase your interest rate. You must act fast if you decide to choose this option as you are only given a short period to opt-out or reject the change in interest rate. What does this mean to you? If you opt-out, you can continue paying your balance at your current interest rate and once you’ve paid off the balance, you will no longer be able to use your credit card as your account is closed. What are the disadvantages of choosing to opt-out? When you close a credit card, it will hurt your credit score. That is the biggest disadvantage. You may have a high credit limit on the card and once it’s closed, you can no longer be able to use it again. Meaning, you are losing one of your credit cards with high credit limit.

Also, if you choose to opt-out, make sure you respond in writing. Write a letter to your credit card issuer letting them know that you are opting out of the higher interest rate. When you mail your letter, make sure send it via certified mail with return receipt request. Why? You need proof that you responded and mailed it to your credit card issuer within the period of time given to you and proof that
they have received your mail. Make sure too that you have a copy of the letter that you sent to them. Make it a habit that you always keep proof whether it’s personal or business. This is a good way to protect yourself.

2. If you choose not to opt-out, pay off the balance before the date of the increase takes into effect.

3. You can also lower the balance on that card before the new interest rate takes effect. Then, once the new rate has taken effect, continue making payments and make sure you’re always on time and do not go over the limit. If you can stop using that card, much better. After six months, call your credit card issuer and request for a lower interest rate.

4. If you think the reason why your credit card company is increasing your interest rate because of one late or missed payment but you have been previously paying on time, you may call your credit card issuer and negotiate with them. Remember, there is no harm in trying. It’s better to ask.

5. Another option is to transfer your balance to a lower interest rate card. When you make balance transfers, keep in mind the balance transfer fees you will have to pay. Figure out whether balance transfer is a wiser move than keeping the card that you have now. You might end up paying more on transfer fees than paying off the balance on the card with the higher interest rate.

We see ATM machines everywhere we go. Convenient stores, fastfood chains, donut shops, department stores, gas stations, and even nail spas have ATM machines inside. ATM theft has been a big problem and will always be. Did you hear about the Arco gas station and Lunardi’s Supermarket ATM scam incident back in May 2008 where customers of both establishments were victims of identity theft? The card reader / scanner at the check out counter has been tampered and customers’ debit card information (card and PIN numbers) were stolen. This is a type of card skimming scam wherein a device is inserted into the card slot on an ATM to capture your card information. Here are a few tips to protect yourself from ATM scam or theft.

1 Refrain from using your ATM / debit card when shopping. Use cash or credit card. If you have a check card, select “credit” instead of “debit”. Selecting “Credit” requires your signature instead of using your PIN to authorize your purchase. Major credit cards have 100% Fraud Protection. With a debit card, you may have limited protection depending on how soon you notify your bank about the fraud. You also cannot cannot request stop payment on a purchase you are trying to dispute. Another drawback of a debit card is you do not establish your credit rating.

2. Change your pin regularly. Make it a habit to change your PIN regularly. This also applies to your email and online bank accounts as well. When you change PIN, do not use your birth date and digits taken from your telephone or Social Security number.

3. As much as possible, do not use non-bank ATM machines as the risk of ATM theft scams is higher than machines at your bank.

Start going to one bank branch and use their ATM machine for all your future transactions. This way, you can get familiar with the machine (card slot or card reader) and its surroundings (number of security cameras and where it is located).

Another tip is find out the phone number of the branch and its 24 hour service number and save the number/s in your cell phone.

4. Before you use an ATM machine, check for dubious devices like extra video camera mounted to the ATM machine. This is another type of ATM scam in addition to skimming where thieves mount a wireless video camera inside the ATM area so they can watch you as you enter your PIN. Check the card slot. Do you see a plastic strip or film sticking out? Is there anything glued to the card reader or cash dispenser?

5. If your card is stuck inside the card slot, do not leave the machine. Call the branch or the bank’s 24 hour service number and report the incident by using your cell phone.

Also, never ever let a stranger help you in retrieving your ATM card. If somebody comes near you and offers help, say NO and make sure they leave you alone. This is another type of ATM scam. The thieves insert a blocking devise (a thin film inserted inside the card slot so that your card gets trapped inside). They come up to you and offer help. They will ask you to enter your PIN a couple of times. They may also hold the cancel button while you enter your PIN. This is just their way to memorize your PIN. Once you leave the ATM area, they will come back and take the glued film out. They now have your ATM card, PIN and money.

6. Use your body or hand to shield the ATM keypad from anyone standing behind you or next to you as you enter your PIN. Do the same if you decide to use your debit card at the supermarket or department stores. Don’t let the store clerk and people behind or next to you watch you as you enter your PIN.

7. When you shop online, do not use your debit card, if possible. Also, take note that online shopping does not require you to enter your PIN.

8. When you receive an email from your bank, do not click on any link. If you are being asked to update any information, delete that email and open a new browser and type your bank’s website yourself instead. It would be better if you delete your cache and cookies before going to your bank’s website. When you’re done checking your bank account, delete your cache and cookies again even if you’re using your own computer.

9. Make it a habit to check your account often. Check for any unauthorized transactions and at the same time see to it that the amount debited to your account is correct.

10. Report any stolen or lost ATM card immediately.

Save, save, save…. everybody is looking for ways to save money on gas, grocery and utility bills. Here are a few ways to conserve water and lower your water and energy bills. Water is a precious resource! Start conserving water now!

1. (My father’s advice ever since) Don’t keep the water running while brushing teeth, washing face, shaving and scrubbing/soaping dishes.

2. Adjust your water heater temperature to 130 degrees.

3. Fix leaks and drips immediately.

4. Switch to water-saving fixtures like low-flow shower head, toilets and faucets.

5. If you have an old toilet, fill a plastic bottle with water and place it in the tank. Some put a brick or two in the toilet tank. The tank uses less water to refill as the water bottle or a brick takes up space.

6. Take shorter showers and turn off the water while soaping up.

7. Wash full loads when washing clothes and dishes.

8. Water your lawn as needed. Better yet, use a rain barrel to collect water from your gutter to irrigate your garden. Use your sprinkler system according to the season.

9. When you wash your driveway, use a broom instead of a hose.

10. When washing your car, use a bucket instead of a hose. If you want to feel good, support your church, schools or other organizations that offer car wash. You’re not only conserving water but you’re also helping your church and local organizations.

I’ve written an article before about saving money and building savings fund fast. One of the things I have mentioned is to watch movies at home instead of going to a movie theater. Here are some tips on how to save money on movie rentals or even get them free:

1.  Sign up for Movie Rental Programs. Movie rental stores offer programs like “Movie Value Pass” for example at Hollywood Video. Their “Movie Value Pass Basic” lets you rent 3 movies out at one time for a certain monthly fee but due in 5 days. The “Movie Value Pass Premium” lets you take 2 or 3 movies out at one time for a higher monthly fee with no due dates. I’ve signed up for the Premium program last year. It seems like I’ve seen the majority of the movies they have and I am not a big fan of seeing movies for the second time, I am thinking of switching to another rental place where I can save more money.

2.  Netflix - I’m still debating whether to sign up with Netflix or go with my option #3 below. Netflix has different plans. You can pay as little as $4.99 a month depending on how many DVDs you want out each month. You rent online, Netflix delvers to you free, keep the movie as long as you want and return DVD using their prepaid return envelopes.

3.  Movie Kiosks - Last week, I noticed 3 or 4 people in line to rent a movie from a kiosk outside Lucky grocery store. I thought this was a better option for me as I can actually kill two birds with one stone. it would be very convenient for me as I’m already out doing my grocery shopping so why not rent a movie for a buck! Saves me money and gas! What’s more? No late fees! I also found out that Safeway supermarkets have DVD kiosks as well.

4.   Another way of saving money on movie rentals is to trade movies with your friends or co-workers. My friends, co-workers and I trade movies that we own or rent.

5.  Go to the library to get free movie rentals. My sister and my co-workers get their movies at the library. Although the movies being rented out are not the latest films, your local library carries a lot of older movies that are worth seeing.

6.  Some people prefer video-on-demand through their cable provider, Netflix or Amazon.

With this difficult economic times, people are seeking out more ways to save money. There are a lot of reasons why we want to save money. We may want to save money so we have funds set aside for the holidays, an upcoming trip, or for a rainy day. The latter is a necessity. Whatever your reason is, saving money requires strong self control, discipline and sacrifice. If you are building an emergency fund, make sure that you will use this money only in the event of an emergency.

1. Buy things that you only need. Before you buy something, ask yourself if you really need it or just want to have it. Practice not to buy on impulse. Sleep on it and ask yourself if you really need it or just want to have it. If you’re thining of buying a new patio set, think about it first. Do you really need to get rid of your old one? Ask yourself why. If something is broken, can it be salvaged? If it’s dirty, clean it. Now, if you decided to keep your old set, praise yourself by saying “Good girl/boy!” Then, put the money that is supposedly for the new set in your piggy bank.

2. Stick to the classic. Don’t buy something just because a new item is “in” and your co-workers, friends and neighbors have it. If you really need to buy a new purse for example, don’t go with what’s “trendy” or “in” today and just for the label. Purses are like gadgets too. They go out of style and new designs come out often. Also, you don’t want to be walking around the mall and see your “twin” who has the same purse as you have. So stick to the classic and practice simplicity. Put the money that you have saved in your piggy bank.

3. Skip Starbucks or Peets and start making your own coffee. Put the money in your piggy bank everytime you skip your visit to your favorite coffee shop.

4. Cut your grocery bills by clipping coupons and comparing prices of products in different grocery stores. Buy store brands instead of the major name brand products. The quality is almost the same. Buy in bulk for products that you consume or need often like cereals, toilet paper, etc. It really depends on how much you will consume. Don’t buy in bulk if you know the product will just end up in the trash. Check the price per unit found in shelf labels right next to the product. Compare the unit price between big and small packages. Also, skip the precut or presliced products. They are more expensive. Slice or cut them and save yourself some money. Always take your grocery store card for discounts. Usually grocery receipts tell you how much you’ve saved. Put that amount in the jar or piggy bank.

5. Cook at home. It’s better to cook at home than eating out. There are a lot of advantages of eating at home. First, you know what’s in your food and what you’re eating is clean. Second, you get the right portion that you want. Third, you save money on tips. So, next time you have the urge of eating out and opted to eat at home instead, feed your hungry pig by tipping little piggy.

6. Limit your visits to the nail spa. Some people go to nail salon weely or twice a month to get their nails done. Do it yourself and save some money. Put the money you’ll spend on the spa/salon plus tip in your savings or emergency fund jar.

7. Watch movies at home. It’s cheaper to rent a movie than going to theaters. Movie tickets have gone up and you might end up buying soda and popcorn when you watch a movie. Some video stores offer programs like renting three movies out at one time with no due dates for a low monthly fee. Once again, whatever you have saved from popcorn, soda and movie tickets, toss it in the savings jar!

8. Recycle your cans and bottles. Why not recycle those cans and bottles and put the extra cash in your savings jar? It takes a while to collect cans and bottles but you’re saving money and the environment.

9. Recycle your old cell phones or ipod. Another way to save the planet and earn extra cash is recycling your used cell phone or ipod.

10. Did you recently receive a cash back on your credit card? Have you received your stimulus check? Did you get a tax refund? You can add these funds to your savings jar or account.

Make recycling part of your lifestyle. It’s very easy. Get involved and help save natural resources while you earn extra cash.

Here’s how:

Organize - Keep recyclables separate from garbage by using separate bins or bags for recyclable items.  Have two or three bins or plastic bags and keep aluminum cans, plastic bottles and glass bottles separate. Sorting it yourself saves you time when you go to the recycling center. When you get there, you have to sort them out yourself so having your cans and bottles already sorted out, it would be quick and easy.

Go to Recycling Centers - When you have collected enough bottles and cans, bring your bags of recyclables to the nearest recycling centers. Here’s a list of recycling centers in California.

You can also call 1-800-Recycle to find the nearest recycling center in your area.  I suggest you check their schedule online or by calling before going to the recycling center as they might be closed especially if you will drop it off on a weekday.

Get an estimate of how much refund you would get from recycling your aluminum cans and plastic bottles.  We’ve been doing this for almost a year now and not only I earn extra cash, I feel good helping the community as well.

You help the community when you recycle. This alone is rewarding. RecycleBank makes recycling even more rewarding. You can now earn rewards by recycling. For every pound you recycle, you earn 2.5 RecycleBank Points. You can use the points you earn at RecycleBank’s Reward Partners like Kraft, 1-800-flowers, CVS, Bed Bath & Beyond, Rite Aid, etc. Although this program is currently available in nine (9) states, you may request for service by going to RecycleBank’s website.  Fill out the Request for Service form and you will be notified once the Program is available in your area. If RecycleBank Rewards Program is not yet available in your area, you might want to contact your local municipality about the RecycleBank Program. RecycleBank not only preserves our environment, they also make recycling easy and very rewarding.

Be sure to sign up for the RecycleBank Rewards Program.  You will be able to create an account after receiving a notification that you can participate in the Curbside Rewards Program.

RecycleBank Smart Cart

Recycle - After you have received your smart cart, place all your recyclables into the smart cart and wait for the recycling truck to pick up your recyclables. An identification chip is embedded into the recycling cart and that chip has a code that is assigned to your household account.

Record - At the time of pick up, your cart will be scanned and weighed. The total weight will be recorded into the system and converted into points. These points are then directly credited to your account. Points are based on the weight of what has been collected. So, the more you recycle, the more you earn RecycleBank points.

Reward - Redeem your rewards at any participating RecycleBank Rewards partners. Check out the list of RecycleBank Rewards partners in your area.