Kids and Money: Don’t make it easy for scam artists to steal your personal information
One thing I learned years ago was to never share my Social Security number and date of birth with anyone on the internet or my cell phone, especially strangers.
That was hammered home for me recently when a Kids & Money reader sought help from me regarding the status of her federal student loans and whether she’d qualify for President Joe Biden’s loan cancellation program.
The kicker: She gave me her date of birth and Social Security number, apparently thinking the personal information would help expedite her request and put her at ease.
I was stunned. Not just because I would be the wrong person to ask for help resolving a borrower’s personal problem, but that the reader shared such key personal information with me in an email.
If I had been an identity thief, it would have been like handing over the keys to the vault, no questions asked.
TNS
Thieves posing as loan providers that can help pay off student loans ask for student IDs, bank account information, credit cards numbers, and Social Security numbers, writes Steve Rosen.
I’ve written recently about how identity thieves are preying on student loan borrowers seeking to qualify for loan assistance programs. Thieves posing as loan providers that can help pay off student loans ask for student IDs, bank account information, credit cards numbers, and Social Security numbers.
The Identity Theft Resource Center (ITRC) has seen an uptick in student loan forbearance scams at the outset of the pandemic.
Here are some recommendations from the San Diego-based consumer watchdog on how to stay out of harm’s way:
— Be skeptical of anyone who calls you to help pay off your student loans. Google the name of the loan provider the caller claims to be working for and see if there are any complaints. If you have any doubts, contact your loan provider directly about the inquiry.
— If you receive an email about student loan forgiveness, check the sender’s email address.
— If you provided a scammer with financial information, call your financial institution and close your accounts if needed. Also, call your student loan servicer so they can monitor your account.
— The ITRC also strongly recommends freezing your credit, if you feel you’ve been victimized. A credit freeze restricts access to your credit report, meaning you or others won’t be able to open a new credit account while the freeze is in place. You can also temporarily lift the credit freeze if needing to apply for new credit.
Contact each of the three major credit bureaus — Equifax, Experian and TransUnion — to freeze your credit for free.
— Report student loan forgiveness scams to the Federal Trade Commission (FTC) at www.IdentityTheft.gov.
As for the reader’s email to me, I responded quickly and directed her to the federal student aid website at https://studentaid.gov/debt-relief/application. Then I hit the delete button.
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What to buy (and skip) on Black Friday 2022Shutterstock
Image Credit: Dragon Images via Shutterstock
The economy has been a roller coaster for consumers over the last 2.5 years, and the ride isn’t slowing down yet. As COVID-19 and its ripple effects have continued to shape the economy, U.S. households have navigated both prosperity and struggles.
In the early weeks and months of the COVID-19 pandemic, experts feared that widespread shutdowns would devastate households economically. While March and April 2020 did bring brief spikes in unemployment, the economy overall fared better than expected early in the pandemic. Expansive government relief programs gave a boost to household finances, and because people spent less during lockdowns, the personal savings rate — calculated as the percentage of disposable income that people save — increased to record heights. Over the course of 2020 and 2021, low interest rates for borrowing and rising wages in a tight labor market continued to make it easier to save, keeping the rate elevated.
The rise and persistence of inflation more recently has reversed that trend. Year-over-year increases in the Consumer Price Index have exceeded 5% in every month since May 2021 and topped 8% in each of the last 6 months. With everything from housing to energy to groceries becoming more expensive, money that consumers had previously been setting aside is increasingly going toward essential spending.
ShutterstockImage Credit: Dragon Images via Shutterstock
The economy has been a roller coaster for consumers over the last 2.5 years, and the ride isn’t slowing down yet. As COVID-19 and its ripple effects have continued to shape the economy, U.S. households have navigated both prosperity and struggles.
In the early weeks and months of the COVID-19 pandemic, experts feared that widespread shutdowns would devastate households economically. While March and April 2020 did bring brief spikes in unemployment, the economy overall fared better than expected early in the pandemic. Expansive government relief programs gave a boost to household finances, and because people spent less during lockdowns, the personal savings rate — calculated as the percentage of disposable income that people save — increased to record heights. Over the course of 2020 and 2021, low interest rates for borrowing and rising wages in a tight labor market continued to make it easier to save, keeping the rate elevated.
The rise and persistence of inflation more recently has reversed that trend. Year-over-year increases in the Consumer Price Index have exceeded 5% in every month since May 2021 and topped 8% in each of the last 6 months. With everything from housing to energy to groceries becoming more expensive, money that consumers had previously been setting aside is increasingly going toward essential spending.
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What to buy (and skip) on Black Friday 2022
These economic headwinds have sent the household personal savings rate back down to pre-COVID-19 levels. The savings rate peaked at 33.8% early in the pandemic but had fallen to just 5% as of July 2022 — less than half the rate of the previous July and the lowest level since the Great Recession. Today’s figures are more in line with recent history: despite steadily rising real disposable income over time — where disposable income is defined as total personal income less any personal taxes paid — personal savings rates have fallen from 10% to 15% in the mid-1970s to between around 4% and 8% in more recent decades.
Low savings rates can have a positive effect on economic activity because they signal that consumers are spending on goods and services. But in today’s environment, with high prices and rising interest rates, low savings could expose more households to financial difficulties. If the U.S. economy enters a recession and unemployment rates increase, households with depleted savings may struggle with essential spending.
These economic headwinds have sent the household personal savings rate back down to pre-COVID-19 levels. The savings rate peaked at 33.8% early in the pandemic but had fallen to just 5% as of July 2022 — less than half the rate of the previous July and the lowest level since the Great Recession. Today’s figures are more in line with recent history: despite steadily rising real disposable income over time — where disposable income is defined as total personal income less any personal taxes paid — personal savings rates have fallen from 10% to 15% in the mid-1970s to between around 4% and 8% in more recent decades.
Low savings rates can have a positive effect on economic activity because they signal that consumers are spending on goods and services. But in today’s environment, with high prices and rising interest rates, low savings could expose more households to financial difficulties. If the U.S. economy enters a recession and unemployment rates increase, households with depleted savings may struggle with essential spending.
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What to buy (and skip) on Black Friday 2022
Having more disposable income is important for positioning families to pay for necessary expenses and weather hardships when they arise. On this count, residents in certain parts of the country will be better off than others. Looking at the cost of living alone is not enough, as less expensive places to live — such as Mississippi, West Virginia, and Arkansas — are all ranked near the bottom for disposable income. Without taking cost of living into account, states in the South tend to have the lowest per capita incomes on both a pre- and post-tax basis. In contrast, most of the states where disposable incomes are highest are coastal locations, which tend to have higher concentrations of well-educated workers and well-paying industries. But these states also often have higher cost of living.
It’s important to factor in all relevant factors to find the states whose’ residents have the most money to spend or save. In doing so, we see that Connecticut leads the way, followed by the Dakotas, Wyoming, and Massachusetts. On the other hand, residents of Mississippi, Hawaii, and Arizona average the least disposable income.
Having more disposable income is important for positioning families to pay for necessary expenses and weather hardships when they arise. On this count, residents in certain parts of the country will be better off than others. Looking at the cost of living alone is not enough, as less expensive places to live — such as Mississippi, West Virginia, and Arkansas — are all ranked near the bottom for disposable income. Without taking cost of living into account, states in the South tend to have the lowest per capita incomes on both a pre- and post-tax basis. In contrast, most of the states where disposable incomes are highest are coastal locations, which tend to have higher concentrations of well-educated workers and well-paying industries. But these states also often have higher cost of living.
It’s important to factor in all relevant factors to find the states whose’ residents have the most money to spend or save. In doing so, we see that Connecticut leads the way, followed by the Dakotas, Wyoming, and Massachusetts. On the other hand, residents of Mississippi, Hawaii, and Arizona average the least disposable income.
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What to buy (and skip) on Black Friday 2022Shutterstock
Photo Credit: IVY PHOTOS / Shutterstock
- Per capita post-tax income (adjusted): $57,586
- Per capita post-tax income: $56,794
- Per capita pre-tax income: $65,486
- Per capita taxes paid: $8,692
- Cost of living (compared to average): -1.4%
ShutterstockPhoto Credit: IVY PHOTOS / Shutterstock
- Per capita post-tax income (adjusted): $57,586
- Per capita post-tax income: $56,794
- Per capita pre-tax income: $65,486
- Per capita taxes paid: $8,692
- Cost of living (compared to average): -1.4%
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What to buy (and skip) on Black Friday 2022Shutterstock
Photo Credit: gary718 / Shutterstock
- Per capita post-tax income (adjusted): $57,805
- Per capita post-tax income: $64,258
- Per capita pre-tax income: $74,805
- Per capita taxes paid: $10,547
- Cost of living (compared to average): +11.2%
ShutterstockPhoto Credit: gary718 / Shutterstock
- Per capita post-tax income (adjusted): $57,805
- Per capita post-tax income: $64,258
- Per capita pre-tax income: $74,805
- Per capita taxes paid: $10,547
- Cost of living (compared to average): +11.2%
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What to buy (and skip) on Black Friday 2022Shutterstock
Photo Credit: Sean Pavone / Shutterstock
- Per capita post-tax income (adjusted): $58,131
- Per capita post-tax income: $56,715
- Per capita pre-tax income: $64,054
- Per capita taxes paid: $7,339
- Cost of living (compared to average): -2.4%
ShutterstockPhoto Credit: Sean Pavone / Shutterstock
- Per capita post-tax income (adjusted): $58,131
- Per capita post-tax income: $56,715
- Per capita pre-tax income: $64,054
- Per capita taxes paid: $7,339
- Cost of living (compared to average): -2.4%
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What to buy (and skip) on Black Friday 2022Shutterstock
Photo Credit: Oleg Podzorov / Shutterstock
- Per capita post-tax income (adjusted): $58,161
- Per capita post-tax income: $58,438
- Per capita pre-tax income: $67,095
- Per capita taxes paid: $8,657
- Cost of living (compared to average): +0.5%
ShutterstockPhoto Credit: Oleg Podzorov / Shutterstock
- Per capita post-tax income (adjusted): $58,161
- Per capita post-tax income: $58,438
- Per capita pre-tax income: $67,095
- Per capita taxes paid: $8,657
- Cost of living (compared to average): +0.5%
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What to buy (and skip) on Black Friday 2022Shutterstock
Photo Credit: Nicholas Courtney / Shutterstock
- Per capita post-tax income (adjusted): $58,663
- Per capita post-tax income: $60,344
- Per capita pre-tax income: $69,016
- Per capita taxes paid: $8,672
- Cost of living (compared to average): +2.9%
ShutterstockPhoto Credit: Nicholas Courtney / Shutterstock
- Per capita post-tax income (adjusted): $58,663
- Per capita post-tax income: $60,344
- Per capita pre-tax income: $69,016
- Per capita taxes paid: $8,672
- Cost of living (compared to average): +2.9%
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What to buy (and skip) on Black Friday 2022Shutterstock
Photo Credit: Bogdan Vacarciuc / Shutterstock
- Per capita post-tax income (adjusted): $58,882
- Per capita post-tax income: $64,994
- Per capita pre-tax income: $76,386
- Per capita taxes paid: $11,392
- Cost of living (compared to average): +10.4%
ShutterstockPhoto Credit: Bogdan Vacarciuc / Shutterstock
- Per capita post-tax income (adjusted): $58,882
- Per capita post-tax income: $64,994
- Per capita pre-tax income: $76,386
- Per capita taxes paid: $11,392
- Cost of living (compared to average): +10.4%
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What to buy (and skip) on Black Friday 2022Shutterstock
Photo Credit: mahaloshine / Shutterstock
- Per capita post-tax income (adjusted): $59,617
- Per capita post-tax income: $64,004
- Per capita pre-tax income: $71,889
- Per capita taxes paid: $7,885
- Cost of living (compared to average): +7.4%
ShutterstockPhoto Credit: mahaloshine / Shutterstock
- Per capita post-tax income (adjusted): $59,617
- Per capita post-tax income: $64,004
- Per capita pre-tax income: $71,889
- Per capita taxes paid: $7,885
- Cost of living (compared to average): +7.4%
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What to buy (and skip) on Black Friday 2022Shutterstock
Photo Credit: Jonathannsegal / Shutterstock
- Per capita post-tax income (adjusted): $60,170
- Per capita post-tax income: $55,892
- Per capita pre-tax income: $62,095
- Per capita taxes paid: $6,203
- Cost of living (compared to average): -7.1%
ShutterstockPhoto Credit: Jonathannsegal / Shutterstock
- Per capita post-tax income (adjusted): $60,170
- Per capita post-tax income: $55,892
- Per capita pre-tax income: $62,095
- Per capita taxes paid: $6,203
- Cost of living (compared to average): -7.1%
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What to buy (and skip) on Black Friday 2022Shutterstock
Photo Credit: Marcus Biastock / Shutterstock
- Per capita post-tax income (adjusted): $60,214
- Per capita post-tax income: $62,164
- Per capita pre-tax income: $67,138
- Per capita taxes paid: $4,974
- Cost of living (compared to average): +3.2%
ShutterstockPhoto Credit: Marcus Biastock / Shutterstock
- Per capita post-tax income (adjusted): $60,214
- Per capita post-tax income: $62,164
- Per capita pre-tax income: $67,138
- Per capita taxes paid: $4,974
- Cost of living (compared to average): +3.2%
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What to buy (and skip) on Black Friday 2022Shutterstock
Photo Credit: Jon Bilous / Shutterstock
- Per capita post-tax income (adjusted): $61,930
- Per capita post-tax income: $64,229
- Per capita pre-tax income: $72,003
- Per capita taxes paid: $7,774
- Cost of living (compared to average): +3.7%
ShutterstockPhoto Credit: Jon Bilous / Shutterstock
- Per capita post-tax income (adjusted): $61,930
- Per capita post-tax income: $64,229
- Per capita pre-tax income: $72,003
- Per capita taxes paid: $7,774
- Cost of living (compared to average): +3.7%
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What to buy (and skip) on Black Friday 2022Shutterstock
Photo Credit: ESB Professional / Shutterstock
- Per capita post-tax income (adjusted): $64,348
- Per capita post-tax income: $69,137
- Per capita pre-tax income: $82,475
- Per capita taxes paid: $13,338
- Cost of living (compared to average): +7.4%
ShutterstockPhoto Credit: ESB Professional / Shutterstock
- Per capita post-tax income (adjusted): $64,348
- Per capita post-tax income: $69,137
- Per capita pre-tax income: $82,475
- Per capita taxes paid: $13,338
- Cost of living (compared to average): +7.4%
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What to buy (and skip) on Black Friday 2022Shutterstock
Photo Credit: Jess Kraft / Shutterstock
- Per capita post-tax income (adjusted): $64,422
- Per capita post-tax income: $59,434
- Per capita pre-tax income: $65,627
- Per capita taxes paid: $6,193
- Cost of living (compared to average): -7.7%
ShutterstockPhoto Credit: Jess Kraft / Shutterstock
- Per capita post-tax income (adjusted): $64,422
- Per capita post-tax income: $59,434
- Per capita pre-tax income: $65,627
- Per capita taxes paid: $6,193
- Cost of living (compared to average): -7.7%
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What to buy (and skip) on Black Friday 2022Shutterstock
Photo Credit: Paul Brady Photography / Shutterstock
- Per capita post-tax income (adjusted): $65,244
- Per capita post-tax income: $60,051
- Per capita pre-tax income: $65,544
- Per capita taxes paid: $5,493
- Cost of living (compared to average): -8.0%
ShutterstockPhoto Credit: Paul Brady Photography / Shutterstock
- Per capita post-tax income (adjusted): $65,244
- Per capita post-tax income: $60,051
- Per capita pre-tax income: $65,544
- Per capita taxes paid: $5,493
- Cost of living (compared to average): -8.0%
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What to buy (and skip) on Black Friday 2022Shutterstock
Photo Credit: Jacob Boomsma / Shutterstock
- Per capita post-tax income (adjusted): $65,334
- Per capita post-tax income: $59,792
- Per capita pre-tax income: $64,720
- Per capita taxes paid: $4,928
- Cost of living (compared to average): -8.5%
ShutterstockPhoto Credit: Jacob Boomsma / Shutterstock
- Per capita post-tax income (adjusted): $65,334
- Per capita post-tax income: $59,792
- Per capita pre-tax income: $64,720
- Per capita taxes paid: $4,928
- Cost of living (compared to average): -8.5%
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What to buy (and skip) on Black Friday 2022Shutterstock
Photo Credit: Jon Bilous / Shutterstock
- Per capita post-tax income (adjusted): $66,740
- Per capita post-tax income: $69,035
- Per capita pre-tax income: $82,082
- Per capita taxes paid: $13,047
- Cost of living (compared to average): +3.4%
ShutterstockPhoto Credit: Jon Bilous / Shutterstock
- Per capita post-tax income (adjusted): $66,740
- Per capita post-tax income: $69,035
- Per capita pre-tax income: $82,082
- Per capita taxes paid: $13,047
- Cost of living (compared to average): +3.4%
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Victim of credit card fraud? 6 actions to take nowAP Photo/Keith Srakocic, File
There’s no such thing as a universal best credit card. The right card for you depends on your lifestyle, your goals and your credit history. For instance, if you’re looking for travel rewards but your friend is building credit, the best card for each of you will differ greatly.
And while there may not be one best card for you — the average American has about three cards, according to a 2021 Experian study — there are many times a card can be wrong for a specific situation.
Here are eight times you could be using the wrong credit card, and what you can do instead.
AP Photo/Keith Srakocic, FileThere’s no such thing as a universal best credit card. The right card for you depends on your lifestyle, your goals and your credit history. For instance, if you’re looking for travel rewards but your friend is building credit, the best card for each of you will differ greatly.
And while there may not be one best card for you — the average American has about three cards, according to a 2021 Experian study — there are many times a card can be wrong for a specific situation.
Here are eight times you could be using the wrong credit card, and what you can do instead.
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Victim of credit card fraud? 6 actions to take nowAP Photo/Mark Lennihan, File
You may have started out by building your credit with a secured card, student card or alternative card, but once your credit is in better shape, it may be time to upgrade.
If you’ve used a starter card responsibly by keeping your utilization rate low and paying balances in full every month, you may qualify for a card that’s a better fit now. A different card could offer a higher credit limit, better rewards earnings and perks like cellphone protection and travel benefits. Some card issuers may automatically upgrade your card once you’ve reached certain thresholds, while others may not. Contact the issuer to check your options.
AP Photo/Mark Lennihan, FileYou may have started out by building your credit with a secured card, student card or alternative card, but once your credit is in better shape, it may be time to upgrade.
If you’ve used a starter card responsibly by keeping your utilization rate low and paying balances in full every month, you may qualify for a card that’s a better fit now. A different card could offer a higher credit limit, better rewards earnings and perks like cellphone protection and travel benefits. Some card issuers may automatically upgrade your card once you’ve reached certain thresholds, while others may not. Contact the issuer to check your options.
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Victim of credit card fraud? 6 actions to take nowAP Photo/Jenny Kane, File
New cardholders can often earn a lucrative welcome bonus but usually with a caveat: You have to spend a minimum amount within a specific time frame to get it. Note the spending requirements for a card’s sign-up bonus, and use the new credit card enough by the deadline. If you continue to pay with an older credit card that’s already in your wallet, you risk missing out on the bonus if you don’t spend enough on your new card.
A little planning can help. Think about upcoming big purchases you need to make, such as a car repair or a new laptop. Just one of those could be enough to hit the bonus’s spending requirements.
AP Photo/Jenny Kane, FileNew cardholders can often earn a lucrative welcome bonus but usually with a caveat: You have to spend a minimum amount within a specific time frame to get it. Note the spending requirements for a card’s sign-up bonus, and use the new credit card enough by the deadline. If you continue to pay with an older credit card that’s already in your wallet, you risk missing out on the bonus if you don’t spend enough on your new card.
A little planning can help. Think about upcoming big purchases you need to make, such as a car repair or a new laptop. Just one of those could be enough to hit the bonus’s spending requirements.
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Victim of credit card fraud? 6 actions to take nowAP Photo/Paul Sakuma
It’s true a store credit card can save you money, especially if you are a frequent, heavy spender at that store. However, the rewards earned with a store credit card are often only redeemable at that store, limiting their usefulness.
Most shoppers would be better off using a general rewards credit card and earning more flexible rewards. Some cards have elevated rates for online shopping purchases, while others earn as much as 5% back at popular merchants like Target, Walmart and Amazon.
AP Photo/Paul SakumaIt’s true a store credit card can save you money, especially if you are a frequent, heavy spender at that store. However, the rewards earned with a store credit card are often only redeemable at that store, limiting their usefulness.
Most shoppers would be better off using a general rewards credit card and earning more flexible rewards. Some cards have elevated rates for online shopping purchases, while others earn as much as 5% back at popular merchants like Target, Walmart and Amazon.
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Victim of credit card fraud? 6 actions to take nowAP Photo/Elise Amendola, File
Several cards boast a top 5% cash-back rate in popular spending categories like grocery stores, restaurants and gas. The catch, though, is that you’ll have to do some work to earn that rate. In most cases, you’ll need to track categories: Qualifying 5% purchases may rotate quarterly, or you may have to choose your own categories. If you’re spending outside of those categories with this card, you’ll likely earn a paltry 1% instead of the juicy 5% you think you’re earning.
Most times, you’ll have to activate the bonus categories before the issuer’s deadline to earn the 5%, even if you’re spending in the right category. Plus, you’ll likely run into spending caps in those 5% bonus categories; once you hit those caps, the rewards rate drops to 1%. For those who find a 5% card to be high maintenance, opt for one that earns a flat 2% cash back on every purchase instead.
AP Photo/Elise Amendola, FileSeveral cards boast a top 5% cash-back rate in popular spending categories like grocery stores, restaurants and gas. The catch, though, is that you’ll have to do some work to earn that rate. In most cases, you’ll need to track categories: Qualifying 5% purchases may rotate quarterly, or you may have to choose your own categories. If you’re spending outside of those categories with this card, you’ll likely earn a paltry 1% instead of the juicy 5% you think you’re earning.
Most times, you’ll have to activate the bonus categories before the issuer’s deadline to earn the 5%, even if you’re spending in the right category. Plus, you’ll likely run into spending caps in those 5% bonus categories; once you hit those caps, the rewards rate drops to 1%. For those who find a 5% card to be high maintenance, opt for one that earns a flat 2% cash back on every purchase instead.
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Victim of credit card fraud? 6 actions to take nowAP Photo/Jenny Kane, File
According to a 2020 NerdWallet study, 14% of Americans view credit cards as “complicated,” and it’s not hard to see why. Some issuers offer suites of cards in the same family and have names that are nearly identical. The logos of some issuers are strikingly similar, too. Perform a quick audit of your credit cards to make sure that they are the cards you intended to get. Cards that look and sound nearly the same may be worlds apart in terms of fees and rewards structure.
AP Photo/Jenny Kane, FileAccording to a 2020 NerdWallet study, 14% of Americans view credit cards as “complicated,” and it’s not hard to see why. Some issuers offer suites of cards in the same family and have names that are nearly identical. The logos of some issuers are strikingly similar, too. Perform a quick audit of your credit cards to make sure that they are the cards you intended to get. Cards that look and sound nearly the same may be worlds apart in terms of fees and rewards structure.
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Victim of credit card fraud? 6 actions to take nowAP Photo/David Goldman, File
Balance transfer cards can be excellent tools for paying off debt. They consolidate several debts into one place, making them easier to keep up with, and they can give you a breather on interest for many months. However, if you’re using a balance transfer card for everyday expenses as well, it will be hard to whittle that balance to $0. Plus, many balance transfer cards don’t come with rewards. Leave the balance transfer card at home but take the cash-back card with you — and be sure to make regular payments toward both.
AP Photo/David Goldman, FileBalance transfer cards can be excellent tools for paying off debt. They consolidate several debts into one place, making them easier to keep up with, and they can give you a breather on interest for many months. However, if you’re using a balance transfer card for everyday expenses as well, it will be hard to whittle that balance to $0. Plus, many balance transfer cards don’t come with rewards. Leave the balance transfer card at home but take the cash-back card with you — and be sure to make regular payments toward both.
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Victim of credit card fraud? 6 actions to take nowAP Photo/Richard Drew, File
It pays to know the rewards rates for all of your credit cards. Say you have two credit cards, one that earns 4% on gas and another that earns only 1%. Using the 4% card whenever you fill up would return $30 more if you spent $1,000 annually on gas. That $30 may not seem like a lot, but small amounts add up, especially if you have multiple rewards credit cards. To help keep track of different rewards rates, you could label your cards with sticky notes or keep a small reference guide in your wallet.
Often you’ll have to keep spending caps in mind, too. Issuers typically cap earnings on their highest rewards rates after you reach a certain amount of spending in a particular category. Make sure you track your progress toward that cap and switch to another card with a better rate when you reach it — until the limit resets.
AP Photo/Richard Drew, FileIt pays to know the rewards rates for all of your credit cards. Say you have two credit cards, one that earns 4% on gas and another that earns only 1%. Using the 4% card whenever you fill up would return $30 more if you spent $1,000 annually on gas. That $30 may not seem like a lot, but small amounts add up, especially if you have multiple rewards credit cards. To help keep track of different rewards rates, you could label your cards with sticky notes or keep a small reference guide in your wallet.
Often you’ll have to keep spending caps in mind, too. Issuers typically cap earnings on their highest rewards rates after you reach a certain amount of spending in a particular category. Make sure you track your progress toward that cap and switch to another card with a better rate when you reach it — until the limit resets.
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Victim of credit card fraud? 6 actions to take nowAP Photo/Matt Rourke
Though they may look and feel virtually the same, a debit card is very different from a credit card. Credit cards offer protections and perks that debit cards (and cash) do not. You can earn cash back and other rewards with credit cards that you won’t get with debit, and it’s often easier to recover from losing a credit card than a wallet full of cash. More importantly, responsible credit card use builds your credit score, which can translate into more favorable loan terms and insurance rates, among other money-saving benefits.
AP Photo/Matt RourkeThough they may look and feel virtually the same, a debit card is very different from a credit card. Credit cards offer protections and perks that debit cards (and cash) do not. You can earn cash back and other rewards with credit cards that you won’t get with debit, and it’s often easier to recover from losing a credit card than a wallet full of cash. More importantly, responsible credit card use builds your credit score, which can translate into more favorable loan terms and insurance rates, among other money-saving benefits.
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