1. Is this something I really want or need?

A credit card allows you to buy things on impulse. Even if you don’t have the cash sitting in your wallet, you can make a purchase. That’s nice sometimes  when it’s for something you really need, like a broken timing belt in your car, but don’t have the cash to pay for it at the moment.

But other times, you may make an impulse purchase on something you really want that you’ll later regret buying. For those instances, walk away and give yourself some space. For purchases over $100, even sleep on it. Twenty-four hours later, you’ll have more perspective on whether you truly want or need the item.

2. What will this cost if I can’t pay it off in full?

Credit card users sometimes make the huge mistake of buying an item even though they can manage only the minimum payments on their credit card balance. This means they end up paying twice as much or more than the item actually costs because of interest. So even if you think you’re snagging a great deal by buying an on-sale item before you have the cash saved up, you could get the short end of the financial stick in the long run.

To find out exactly how much a charged item would cost you if you’re making minimum payments, use this credit card payoff calculator. It will show you, for instance, how long you need to pay off a balance of $2,000 at an 18% interest rate. Your initial minimum payment would be $40 a month and it would take you nearly 20 years to pay off your balance. In the end, you would pay a total of $3,862 in interest.

3. Can I save up enough cash in the next few weeks?

The absolute best way, of course, to avoid interest charges and long payoff times is to pay your total credit card balance every month. Calculate whether you can amass the cash before the bill comes due – or can at least cover a significant portion of the purchase price by then. Unless it’s for a true emergency situation, you may be better off waiting another month.

And who knows? Maybe that item will go on sale before you decide to buy it, anyway.

4. Will using a credit card give me more benefits?

Sometimes credit cards reward you for using them – and you’ll see the effects particularly with large purchases. For instance, if you have a rewards credit card, you could get airline miles, cash back, or other rewards for putting a purchase on your credit card.

In some cases, charging an item to your credit card will give you extra warranties and protections. Always know the benefits of using your credit card. Check your credit card terms, or call your issuer if you aren’t sure about the perks of charging a purchase to your card. One thing to consider here: Don’t buy items just to get a reward, like cash back. Only buy items you would purchase anyway.

5. Am I using the right credit card for this purchase?

If you have multiple credit cards, make sure that you choose the right card for each purchase, especially if your cards have different rewards. For instance, if you used a balance transfer card to get a lower interest rate on a large balance, you may want to limit the number of transactions you put on the card since each one is subject to a higher interest rate. On the other hand, if you have an airline rewards credit card, which is one of the best credit cards to have for people who like to travel, you may want to use it for many of your major purchases so that you can rack up airline miles. Or you may have a rewards card that gives a higher percentage off certain categories during certain parts of the year.

Asking these five questions before you even pull out that card will ensure that you’re making the best possible choice for your current situation.

(Guest blog written by Daniela Baker of CreditDonkey.com, a credit card comparison and financial education website.)

Choosing and using credit cards can be much like dating.

Applying

You’ve searched the Internet trying to find the right “one” for you. You’ve read all the offers online, you’ve made a list of everyone you’ve met, and now you have to discard the ones you don’t need.

Red Flags

The Seeker shows up with a bang, resorting to all sorts of strategies to get your attention and woos you with fabulous offers. But it’s too good to be true – you discover the bad traits and habits, and suddenly what seemed awesome is just a puddle of water, not the end of the rainbow.

If it’s a credit card we’re talking about, what’s buried in the fine print could leave you paying a high interest rate if you miss a payment. Or, you could spend yourself out of a fortune trying to collect reward points.

Likewise, if you’ve been burned in the past, you could be locked into The Pattern – a bad relationship with a credit card that you repeat over and over. Maybe you’re doing this subconsciously, but you should get some professional counseling – or you’ll be doomed to repeat The Pattern forever!

Blind Dates

We’ve all had them – Blind Date Disasters. You wish you’d asked more questions, or, if it’s a credit card, you wish you’d read the fine print about all those fees.

Or, perhaps you both just have Conflicting Interests:

You have a great cash back card, but you wanted more air miles. When you don’t agree on things, chances are neither of you will change and there’s no use trying to force the relationship. Don’t waste your time on what isn’t a good plan for you.

The King or Queen of Perfection

You’ve met the perfect catch. They look really good on the surface and come well-recommended. You’ve read the fine print – except there’s the large annual fee for a rewards card you’re not really using, and the interest rate is a lot higher than you’re comfortable with.

You may have the “best” card, but is it just shiny on the outside, with no real feelings on the inside?

Does the Princess care too much about how she looks?

Does Prince Charming get alarmed at small changes, as if he’s hiding some insecurity? You might want to come back down to earth, ditch this card and strike up a new relationship.

And finally – you find The Friend:

You have common ground and you complement each other. You are passionate about the same things. This may Mr. or Miss Right, and now you can finally focus on the good things that are happening in your financial world!

Glyph was introduced by a Detroit firm in 2012 as a free application to help you as a consumer to choose and manage your credit options in order to get more rewards, and also to help improve your credit score. Glyph’s founders, Mike Vichich and Tyler Felous, call their product “peace of wallet.”

What Glyph does is analyze your purchase trends with your rewards potential.  Glyph then recommends three credit cards to serve your needs.  This is all done through your iPhone.  You check the retailer by location and the program optimizes your rewards for the purchase.

This saves you time and also lets you know what rewards you may have lost.

Currently, Glyph does not require linking a bank account to use their service. The company is working on options that would allow consumers to link with their bank accounts. The company partners with Yodlee Interactive, a company which harnesses financial data to create personalized digital solutions, especially for banks and financial institutions.

When users link in their accounts, the Glyph application is able to access transactions and account data, along with credit balance and utilization.

Then the magic happens. What does this mean for you?

If you’re like most people, the application has to be well worth it if you must pull up an application to decide on which card to use for any purchase to optimize rewards like cashback or air miles. Glyph has the advantage of “doing more” so that you not only see where your rewards are coming from and get a chance to make maximum use of these rewards, but you also keep track and manage your credit as well.

The latter benefit may be the most important one of all.

Although you do have to bring up the application for each location and purchase, Vichich and Felous say that the application is very comprehensive and helps consumers manage their credit as well. As Vichich explains, “…it’ll pull in your credit balance and also your credit utilization.” [2] He adds that most people don’t realize if you have 30% of your credit utilized now, it will have a negative impact on your credit score if you frequently exceed the 30%.

You can also apply for new credit cards through Glyph, with banks partnering with Glyph.

Although Glyph recommends credit cards to users and thus makes a commission when you apply for one, Glyph only proposes the card that is best for your needs.  Although Glyph is currently only available for IOS devices, plans are in the works for expansion to new devices and platforms as well!

[2] http://betakit.com/2013/02/13/glyph-debuts-updated-app-new-web-app-to-give-consumers-peace-of-wallet

Tip One – Skip The Fast Food

You’d be surprised at how much money the average American spends on eating out.  The latest stats show that the average American spends $600 a month on food and almost half of this budget on fast food.  Imagine having an extra $300 in your savings.  If you’re on the go, you may not have time to cook or prepare meals before going out and about.  If this is the case, look in your Sunday paper for coupons or on your shopping receipts.  Many Red Plum coupon books carry coupons that can be used for fast food dives or restaurants.  Also, look into buying “The Entertainment” book for your city.  This book contains thousands of dollars worth of coupons that you can use for fast food and shopping.

Tip Two – Put Away Two Dollars a Day

Now I know what you’re thinking, come on a dollar?  But think of it like this, every day the average American spends $5 to $10 dollars a day on things that really aren’t necessary.  If you can put away $2.00 per day you’ll save on average $60.00 per month.  Throw in the change that you’ve been accumulating over the months and you’ll have a nice amount saved up.

Tip Three – Sign up for Direct Debit

Whenever you received your weekly, bi weekly or monthly pay, have 10% to 15% of it deposited into your savings account automatically.  If you feel that having all of your money in one bank may cause unwanted temptation, sign up for an unsecured debit card or gift card to load your money onto.

Tip Four – Search for Savings

The Internet contains a trove of promotional codes and coupons for just about any store.  Before doing some leisure shopping, search online to see if you can obtain a promotional code or coupon for the items you wish to purchase.

Major lifestyle changes aren’t really necessary when it comes to saving money.  It’s all about shopping smarter and having more willpower throughout the year!

Why do we need all this credit?

Reasons vary from the use credit cards for convenience, as a tool for managing one’s finances, to avoid having to write checks, and because it is easy.

One’s first credit card is usually easy to get.  At first it may be used only for necessary items, but eventually the temptation to buy luxuries – items one does not need and cannot afford but that one desires – can be overbearing.  Credit cards feel like easy money – it’s a real “stress reliever” to use them for shopping sprees, to buy nice clothes, electronics, etc.

From splurge money to using the card for more expensive luxuries like a big-screen TV, cruise, car, or expensive birthday or holiday gift – all can make for a miserable awakening if one’s income either doesn’t keep up or suddenly disappears.

While some credit card users maintain good credit management by paying their cards off each month on time, keeping up one’s standard of living and paying the increasing expenses of a growing family may also collapse a family’s finances when the borrowing catches up with earnings and the card owner begins to pay late or defaults entirely.

Suddenly, the credit card is no longer one’s best friend – it becomes one’s most dedicated enemy.

American entrepreneurs also view credit cards as a source of financing.  In 1993, only 16% of small business owners used credit cards as a source for business loans in their last 12 months of operation.  Today, that figure is 44% and rising.

Entrepreneurs find credit cards an easier way of getting financial help, easier than sitting down with a banker and presenting financial statistics.  The problem with this type of borrowing is that the card gives the illusion that the business is on solid footing and can afford things like entertaining, high advertising, desired expansions and non-critical improvements.

However, these things depreciate or evaporate (as in advertising or entertainment expenses), rather than appreciate.[2] The business must earn income to pay back the cards.

Prudent credit cards users will make plans for repayment when they use the card!

[2] http://premium.docstoc.com/article/126873390/Credit-Card-Debt-The-Quiet-Way-to-Kill-a-Business

With the Jump Card:

• Get Guaranteed Approval
• Safe and Convenient Way to Handle Your Money
• Rewards
• Excellent Customer Service

What You Can Do with Jump Card

With Jump Card you can:

• Make purchases anywhere Visa is accepted
• Set up direct deposit to have your paycheck automatically deposited to your Jump Card account
• Add money to your account by transferring money from your bank account or your PayPal, or add money to your account using the Visa ReadyLink, Western Union, MoneyGram or Green Dot services

Guaranteed Approval

Unlike traditional checking accounts, Jump Card doesn’t check your banking history or credit history. You aren’t punished by past mistakes. All Jump Card does is verify your identity and that you’re a resident of the United States. That’s it!

It’s easy and fast.

Safe

Jump Card keeps your money safe in two ways.

• Your money is FDIC insured for up to $250,000 per account
• Get cash from ATMs
• Jump Card has a Visa Zero Liability policy, which means that you aren’t held responsible for unauthorized transactions on your account

Convenient

Jump Card is a convenient way to budget your money. You control how much money is in your account, so you don’t have to worry about overspending. You can setup free email and text alerts that inform you what your balance is so that you don’t hit any surprises. In addition, Jump Cardprovides you with free money management tools that allow you to create budgets and view spending reports. Rewards

Jump Card rewards you for doing the things you normally do. Every time you use your card for a Visa transaction, enroll in direct deposit, deposit over $750 to your account, or refer someone on Facebook or Twitter who signs up for an account, you earn rewards points.

You can use your rewards points to:

• Get cash back on your card
• Get store gift cards
• Earn money towards catalog items
• Earn money towards airfare

Customer Service

Jump Card provides you with free customer service 24 hours a day, 7 days a week, so no matter when you need help, you can get it.

It’s easy, it’s fast, and it’s a great alternative to traditional banking. For more information on the Jump Card go to www.myjumpcard.com.

• Past Credit History

• FICO Score

• Income

• Utilization Of Credit

Most people can get an auto loan, but if you have been more than 30 or 60 days late on any payments, or have verbally abused the representative who called to remind you of your late status, it could go against you when the lender reviews your application.

In order to get your credit in shape, you need to mend things with the previous lender as much as possible. This may mean calling them to find out if they can do anything to help you.

One thing you should avoid doing is to apply for several loan options at once.  This will drive your FICO score down.

Decide on what payments and what kind of car you can realistically afford.  You may have a dream car in mind, but don’t play at getting it by applying for a loan.  Wait until you are absolutely sure about the deal and then apply.  The “hard inquiries” the dealer makes may remain on your credit report for up to two years,[1] so lock in the deal first.

If your credit includes charge offs or delinquencies, these may remain on your credit report for seven or more years and will look particularly bad to the new lender.  Try to catch these up before applying for credit.

Some things you can do:

• Check your credit report.  Go to AnnualCreditReport.com for your free annual report.  This will immediately let you know what you are up against.  Look for any errors and, if your score is low, find out what is dragging it down.  Work on the items that you can control, such as making payments on time.

• The bigger down payment you can make, the better.  If you can, pay as much as 10% or 20%.  Also, try for a loan that can be refinanced at a lower rate after a year or two.[2] This will allow you to rebuild your credit and perhaps get a lower rate.

• Autotrader.com has a website that allows you to search for dealers who accept bad credit or low credit.  The dealer may be able to set you up with a lender who will lend to you if your credit is not pristine.  These deals may not always have the lowest interest rate, but you have a chance to get a vehicle you can afford and build up your credit score.  Be sure to read all the fine print!

Finding the right auto loan may be difficult, but not impossible if you examine the possibilities.

[2] http://www.autos.com/auto-loans/bad-credit-car-loan-tips-for-getting-approved

What is ChargeSmart?

ChargeSmart is an online service that allows customers to pay your utility company, auto and student loan providers, mortgage companies and more using a debit or credit card. This service offers customers to pay their bills via credit or debit card even if the creditor doesn’t directly accept those types of payment methods. Customers can simply go online and pay the bill via ChargeSmart. American Express customers who do this will still get the same reward points that they would earn if they were able to pay their mortgage lender directly.

How It Works

Now, here is the process to pay your mortgage with your American Express through us. Obviously, it is very difficult for anybody to except American Express, especially your mortgage company, and even us. But, there is a way to get around this problem and still receive those precious reward points from paying your mortgage with your American Express card.

First, figure out how much your mortgage is and then find a retailer that sells Visa prepaid cards. Visa prepaid cards are sold in denomination, such as $100, $200, upwards of even $500. Get the combination of prepaid cards that totals your mortgage bill and purchase them with your American Express card, thus receiving your reward points from that purchase.

Then, go to our site with your Visa prepaid cards, find your mortgage lender, follow the steps, and make multiple payments to your mortgage lender using those cards. Your mortgage will be paid in 2-3 business days from the day you transact on our site and you will have just paid your mortgage, while getting your American Express reward points. Remember, we do have monthly cap limits on how much you can transact to your mortgage lender and that is $5000 per rolling 30 days.

Security Fee

Although ChargeSmart will allow you to pay your mortgage, subsequently using your American Express card, you will have to pay a fee that is usually between 2%-2.5% of the transacting amount. We also charge a large payment security fee in addition to the normal fee as a fraud prevention measure. But, since you are transacting in denominations, I do not see this as an issue.

Advantages to Using ChargeSmart

The biggest advantage to using ChargeSmart is that you will be able to easily and conveniently pay your mortgage with your American Express card and receive the reward points for doing so!