Alternative Ways for Quick Cash Before the Holidays

There is no denying that many people are feeling financially pinched and looking to make extra money.  Perhaps you are contemplating another job but already feel overextended at your current job and don’t want to use your remaining free time to work more.  Luckily, there are several ways to make some extra money that don’t involve getting another job.  Consider the following:

1. Sell stuff around the house.  We all have clutter.  Identify the items you haven’t used in a year or longer and sell them on eBay or Craigslist or at a garage sale.  
2. Open a new bank account that offers a financial reward.  There are bank accounts available that offer you anywhere from $50 to $100 after the account has been open a designated number of months (often three) and you have made a designated amount of transactions (usually including a few direct deposits).  Meet the bank’s requirement, and you have free money. 
3. Use credit cards to your advantage.  Many credit cards offer generous rewards.  The best cash back credit cards often offer 2 to 6% cash back on certain types of purchases.  Use your credit cards for all of your purchases and reap the cash back rewards.  (Just make sure you are disciplined to pay off the balance each month.  Otherwise, the rewards will be offset by the interest you pay.) 
4. Call to negotiate your cable bill.  Cable and Internet bills often are high.  Call the company to see what discounts they can offer you.  They may offer you a discount for six months, or they may give you options for items you can cut from your service to lower your cost.  Either way translates to more money in your pocket.

If you are looking for extra money, the only solution isn’t to get a part-time job.  There are plenty of ways to trim your costs and generate extra money if you are creative.

Guest Post by Melissa

What should you look for in a student bank account?

Heading off to college is an exciting time in any young person's life, but it can also be stressful. With so many decisions to make regarding class schedules and dorm room décor, a student bank account may be the furthest thing from your mind.

College orientation weeks tend to feature credit card and bank representatives beckoning students to sign up for their financial services. Before you go with the bank dishing out the free gifts, look for one with better perks like a free overdraft.

Banks are going to entice college students into opening accounts because they view them as potential life-long customers.

Most students come to college never having held a separate account from their parents and those work-study funds have to be deposited somewhere.

Keep in mind that banks exist that offer free checking, convenient online banking, free savings and overdraft protection, all of which are better for students just learning how to manage finances on their own.

You need to choose a financial institution that has a convenient location.

A national or regional bank near the university will be best for easy withdrawals and deposits, but you also want to consider those emergency or regular care funds your parents want to send. Having a bank in their location as well as near the college will make it easier on everyone.

Make sure that ATMs are within a short distance of your university. Using another institution's ATM will rack up fees you don't want to pay. It's okay if your bank doesn't have an ATM on campus, as long as there's one within a short distance.

Although you may only be thinking about a student checking account at the moment, consider more long-term financial needs. Does the bank lend student loans? Do they offer online bill pay? Are credit cards available?

While you may be tempted to get customized checks featuring your college's mascot, remember that the plain checks serve the same purpose and are often free. Chances are you will be using a debit card more often anyway, so don't bother spending extra money having your school's name stamped at the corner.

Responsible students need to appreciate and utilize a savings account. If you plan to save money during college, consider a certificate of deposit (CD). These accrue higher interest and have to be left alone for a certain period of time, so you could open one during your freshman year and cash it in as a graduation gift to yourself. You can check out a full range of savings and current accounts at moneysupermarket.com.

Don't underestimate smaller regional banks and credit unions. These often provide better deals in regard to lower fees and higher interest rates than national banks and you may even find an on-campus credit union that caters specifically to students.

Set up your online bill pay early, preferably right after you open your brand new account, so you can learn how to pay your bills from the convenience of your dorm room.

If you're still unsure which bank to go with, ask around campus or talk to friends and roommates to get a better idea of where students on campus are banking.

No matter which type of account or bank you go with, be responsible with your funds and keep track of the amount of debt you accrue. You will probably be graduating with some amount of student debt as it is, so you don't want even more from credit cards and other loans.

Guest Post by MoneySuperMarket  

Alternatives to savings accounts

Saving money is an essential part of modern life and without a comfortable buffer, if the worst happens, life can become pretty uncomfortable.

However, if you have sufficient money in the bank and want to think about other ways to use your spare cash, what options are there?

Investing money in the US government is said to be one of the safest ways to make a return, despite the state of the country's economy at the moment. Treasuries – or government bonds – are an investment that can offer either a variable or fixed rate return and offer little risk.

The only downside is that to get the maximum benefit, it is necessary to tie up funds for a long time, with penalties usually enforced for withdrawals before five years.

Individuals willing to consider riskier vehicles could contemplate investing their money; an option that has the potential for great returns but also a very real possibility of losing some or all of the capital laid out.

For this reason, investing is not a suitable choice for everyone and the general advice given is that you should never invest money that would have catastrophic consequences if lost.

There are a huge number of investment options, of which simple purchasing of stocks and shares is the one of the most commonly chosen and certainly the best-known amongst the general public.

However, there are a number of other options which could also be considered, such as forex – the trading in foreign currencies – a market that eclipses conventional stocks and shares and offers the same potential for gains.

Anyone with a significant sum to invest might find real estate a viable alternative, especially with the current property prices at rock bottom and expected to rise as the economy eventually strengthens.

Savers with a particular interest could opt to support a project or invest into funds with a special emphasis, such as eco-friendly schemes or sharia compliant shares.

Those who want to help a charity but do not feel they have the spare cash to make the donation they would like might want to consider helping the cause out by purchasing a bond, if available, or shares.

The credit crunch has meant that borrowing from banks has become far more difficult and alternative means of lending are springing up. Peer to peer is one such enterprise but to be successful, it obviously requires members who are willing to lend as well as borrow.

Applicants are usually thoroughly credit-checked and given a risk rating and lenders can bid against each other to offer the individual a loan at the rate of interest they feel reflects their credit score.

One golden rule of thumb is that if the money is likely to be needed at retirement, it should be moved to a low risk safe haven where it can remain without the danger of falling in value, at least two years proper to when it is likely to be utilized.

Savings Bonds Explained

When putting money aside for a rainy day, it is all too easy just to open a savings account and reap the meager returns that are offered.

However, there are other savings vehicles suitable for those who want to invest their cash for the medium to long term but who do not want to risk losing their capital.

One of the most secure forms of investment are the savings bonds issued by the government, which are available to purchase either as a savings asset or as a gift for another person.

Savings bonds are provided by the federal government and act as a way for the US to fund the debts it holds by borrowing money from the American public.

There are various type of investments available including fixed rate bonds as well as those offering a variable rate.

The main types on offer are I and EE bonds that rack up interest during the term of the investment. These do not become payable until maturity.

The fixed rate bonds available are primarily the I bonds that provide a pre-agreed interest payment plus an additional amount set at a level in excess of inflation. EE bonds can be fixed rate bonds but are also available as a variable investment.

Bonds can be purchased either via banks or online. Bonds purchased via banks are only available in paper form while online banking offers an electronic option.

Electronic bonds are far more flexible and are available in any denomination of $25. Paper savings bonds are slightly more fixed and offer the option to purchase $50, $75, $100, $200, $500, $1,000, $5,000 or $10,000.

Electronic and paper bonds work in two different ways. Electronic bonds begin to earn interest immediately and start at the worth of their face value. Paper bonds, on the other hand, start off with a value worth half of their face value and reach maturity when the interest payments bring the value up to their stated amount.

Electronic savings bonds also have another very unusual feature. Despite having a maturity date, they can go on earning interest for up to 30 years.

Owners of the bonds are able to use the Treasury Direct website to track the value of their investment and see when their bond will stop earning interest.

As well as being a safe haven in difficult economic times, because of the protection of the federal government, savings bonds also have other benefits.

The interest on the various types of bonds can be deferred until the maturity date or earlier encashment, at which point it is not subject to state tax, unlike other savings accounts.

While savings bonds undoubtedly offer investors significant benefits, if they are cashed in before they have been invested for five years a sacrifice equivalent to three months of interest will be made.

In addition, as a fixed rate bond locks in the interest payable, if the economic outlook changes during the investment period and interest rates rise, the bond can become less competitive.

How do you know your real credit score?

While we all know that it is important to have a good credit score, often we do not think about our own score until we have credit declined, for example, when looking to arrange loans. It is important, however, to keep track of your credit score and take action if necessary.

It is interesting that while most Americans have heard of credit scores, many do not know how they are calculated and what they are used for.

At a basic level, your credit score measures your ability to repay loans and other debts. It influences whether lenders will lend to you and, if so, on what terms.

A credit score is a bit like a report card. It records what debts you have, whether you pay your bills and whether you make repayments on loans on time. Any missed or late payments are recorded.

The main benefit of having a good credit score is that you qualify for better rates on loans and mortgages. Lenders see you as a good risk and reward you accordingly.

It is not just when you are looking for credit, however, that your credit score is important. These scores are increasingly used as a background check to evaluate you when you apply for an apartment or job.

So who decides what your credit score is? There are a number of different credit agencies around. The main American ones are Equifax, Experian and Trans Union.

Scores can be different at the different credit rating agencies because they may have slightly different information from each other and may use different ratings systems. There should not, however, be any major discrepancies between the different agencies.

Your credit score is constantly changing. You get points based upon the agencies' assessment of your creditworthiness i.e. your ability to pay back your debts such as loans and credit cards. Your whole financial history is taken into account.

There are, however, some things that cannot be used to determine your credit rating such as gender, race, ethnicity and religion. This is because of equal opportunities legislation.

The best way to know what information is being held about you is to obtain a copy of your credit report. These are available for a small fee but the agencies sometimes offer to obtain your report for free. You are also able to obtain a free copy if you have been denied credit in the last 60 days or are on welfare.

The first thing to check is that it is accurate. If anything is wrong, you should contact the credit agency and dispute it. Even if your dispute is not allowed, you are still able to ask for a statement to be added to your credit file.

If your credit score is poor, there are a number of steps that you can take to improve it, such as paying off existing debts on time. It is also important not to continually apply for new credit or loans as these applications will all appear on your file.

It is important to continue to have some form of credit such as loans or credit cards, however, as no credit history can have nearly as much of an impact as a poor credit history.

There are ways to rebuild your credit file. Some companies offer loans for people with poor or no credit history. These are usually for smaller amounts and are more expensive than conventional loans. They can, however, be a good way to demonstrate financial responsibility.

In the modern world, it is inevitable that we will all need credit at some point, whether it is for emergency loans or big purchases on credit cards. It is, therefore, important to make sure that your credit score is correct and take action if it could be improved.

How to Save Money on Cab Fare

If you’ve tried to get a cab lately and got frustrated at how difficult it was or how expensive the cab trip was, I have some good news for you. Innovative applications and websites are popping up all over the Internet to help you find a cab quickly and for the cheapest possible price.

CabCorner
One of these neat new websites is CabCorner.com. Just select the city that you're traveling in, type in where you're located and where you'd like to go, and search for rides. Say for instances you're looking for a King County taxi that you can share. Hop on the web and search for others going the same route and share the fare. There is even a fare calculator that lets you know how much it will cost you before you get into the car. Plus, if somebody wishes to join you in the cab, then you can split the fare and then both of you save money!
Currently, this is located in most of the major United States cities, but it is getting jump started in major overseas cities too. As more and more people begin using applications and websites like CabCorner, even more people will be able to split rides. That means that even if this doesn't work for you right now because of some inconvenience—say it takes too long to find someone to split a ride with you--stay up to date with CabCorner and similar websites because eventually enough people will join it to make it worth your time. Then, it will be easy to find a shareable ride wherever you are.

Wheeels
Wheeels is trying pretty much the same thing that CabCorner is doing. It's just another way that you might be able to find somebody to share your ride with. Since there isn't a consolidated monopoly over taxi sharing services, it's a good idea to try to join as many as you possibly can to increase your chances of being able to split a cab quickly. Wheeels offers that convenience to you.

Uber
But then, there is Uber. They aren’t so much focused on letting you share a cab as they are at hooking you up with a taxi driver as quickly as possible. They use the cutting-edge of technology in order to cut through all the inconveniences that can sometimes accompany finding a taxi driver. All that you have to do is use your Android or iPhone with their application, and you can get a direct hold of the cheapest cab driver without having to waste a bunch of time on hold or leaving messages on peoples’ answering machines.

Get Taxi
Get Taxi ups the ante where Uber left off. They have that same great ability to order a taxi using your mobile phone. Then they combine it with the ability to get updates on where your driver is, how long it will be until he or she gets there, and all kinds of other useful information that takes the worrying out of finding a taxi. It hunts down who offers the best rates to save you money. Plus, it integrates the ability to rate drivers and read the ratings other customers have given drivers. This will help make sure that you don't end up getting in a taxi only to find that the driver is cranky, mean, or otherwise not so fun--all while saving you your hard-earned green paper!

Stita Taxis is a Seattle taxi service running a clean and green fleet of Prius to take you where you need to go.

Is peer-to-peer lending ever a good alternative?

Peer-to-peer lending (often referred to as p2p) has become increasingly popular in the United States over the past six years. This new way of loaning money was seen as advantageous, but it does have many difficulties.

Peer-to-peer loans are financial transactions between individuals that do not need the input of a traditional financial institution or bank. The lender and borrower have a more direct connection.

Sometimes the peers can be friends or family members, but mostly these loans are arranged through firms with online websites. The use of internet technologies has enabled this idea to grow and prosper.

Peer-to-peer lending is not philanthropic however, so individuals who invest money into the agreement to allow the other party to borrow do expect a return.

Generally the process involves two parties, the borrower and the lender. Lending money can be highly lucrative because of the high interest rates charged.

Individuals with money want it to earn more money, but with low interest rates on savings, there is little positive return. Instead, these individuals are choosing to loan their money to others and receive a higher interest rate in return.

For borrowers, there are some advantages too, although the process also carries risk and difficulties with what some have seen as exploitation in an unregulated market.

In America, the two major firms have seen usage soar in recent years. After the global economic recession began in 2007, their popularity increased and has continued to grow.

These difficult economic times have meant that many people feel they cannot find the financing they need from traditional banks or businesses. For some people, desperation has led them to financing their loans in this way.

Also, peer-to-peer lending is seen as being more flexible than traditional sources of loans. For many people, the attraction is the immediacy of the agreement. Removing banks from the equation can seem like a saving because you are not paying their transaction fees.

However, the rates offered on loans can be as high as a normal bank or financial institution would offer and in some cases, even higher.

If you have a low FICO score and need money to finance a purchase, it may be tempting to use peer-to-peer lending. Be aware that unfortunately, not all transactions work out well.

There has been much criticism of the peer-to-peer lending model as one that can illustrate predatory lending or loan sharking. Both of these are unwelcome situations in which to find yourself.

Predatory lending is often defined as lending that is deceptive, fraudulent or unfair, whilst loan sharks are known for using nefarious methods such as blackmail or violence to extract money from borrowers.

Research suggests that most peer-to-peer lenders are not regulated in the same way as other financial institutions. This means that borrowers may find themselves with more problems should the transaction not progress smoothly.

Peer-to-peer lending may seem that it has some advantages, but like most things in life, it is too good to be true in its entirety. Smart borrowers will always use qualified and regulated financial institutions for their money needs because this is the safest way.

Why Use a Mortgage Calculator

The financial squeeze means more or less everyone – including the US government – is looking at their spending and trying to find ways to trim any unnecessary expenses.

This means that an increasing number of people are scrutinizing their mortgages to see if they are getting the most competitive deal or whether it would be more cost-effective to move their home loan to another lender.

This is one way in which a mortgage repayment calculator can come in useful, as it can provide an indicator of what the likely installments would be if you switched lenders.

However, it is important to remember that a mortgage calculator is only as good as the information that is put in and is designed to provide no more than a rough estimate of likely future costs.

Despite this, a mortgage repayment calculator can be a great way to get an idea of the differences between deals being offered on the market and reach a decision about which one is the best for you.

To get the best use out of a mortgage repayment calculator, it is necessary to know the interest rate that applies. This can usually be obtained from the lender's website or literature.

Some lenders provide their own online calculators that are pre-populated with the typical interest rate applicable, which simplifies the process somewhat.

All mortgage calculators need the amount being financed, the length of the loan and the interest rate applicable as a basic starting point. Some calculators are more complicated and take into account additional factors such as annual insurance – including principal mortgage insurance – as well as taxes, but these fields are usually not compulsory.

As well as using a mortgage calculator to work out how much the repayments would be for a deal already in the market, it can also be used as a handy budgeting tool.

Those on variable rate mortgages are watching the interest rates with trepidation, with many wondering what will happen to their monthly payment if the interest rate rises.

By simply adjusting the interest rate field, the repayment calculator can help by predicting how much you are likely to have to pay.

For those looking to find a bit more wiggle room in their budget, a repayment calculator can provide an idea about whether they could reduce their repayments.

By playing with various fields, such as extending the term of the loan, those looking to reorganize their finances can get a better idea of what effect various changes may have.

At the opposite end of the spectrum, those with a bit of spare cash may be wondering whether they would be better off overpaying on their mortgage or putting the money in a savings account. A mortgage calculator can show the effect that plowing some extra dollars in would have.

One of the best things about mortgage calculators is that they are free to use and available to anyone who has access to the internet.

Whilst the same information would be available from a mortgage broker, having the freedom to sit and play with numbers and work out the best deal without any sales pressure or time constraints, can be a very valuable tool.

Guest Post by MoneySuperMarket

The Right Way to Obtain a Credit Card

“You can save 10% on this purchase if you open a credit card at our store.  Would you like to do that now?”

Make any purchase at a department store and, if you are not currently one of their store’s credit card holders, you will hear that pitch.  You may have even fallen for it.

Credit card offers abound, but there are right ways to obtain credit cards and ways you should avoid.

The Wrong Way to Obtain a Credit Card

• Open an account just because a store offers a one-time discount off your purchase.  In most cases the 10% discount on your purchase will easily be recouped by the store.  They are counting on you using the card frequently, running up a balance and having to pay interest (which many customers do).  Don’t be enticed by the discount. 
• Apply for a credit card because you get a free tee shirt or mug.  Credit card companies used to be notorious for setting up a table at a college campus and enticing students to open a credit card by giving them a freebie bag.  Rules on this behavior are stricter now, but again, don’t sign up for a card just because you get a small item for free.

The Right Way to Obtain a Credit Card

• Apply for one from your bank or credit union.  Chances are they will have a reasonable interest rate and agreeable terms.  (Still, be sure to read the fine print before signing up.) 
• Apply for one that offers you rewards.  There are many credit cards that give members rewards.  If you fly frequently, try a credit card that offers flyer rewards.  If you drive frequently, consider getting a credit card that rewards you with gas discounts.

When applying for credit cards, make sure that you know what the APR will be, if there is an annual fee, and what the terms of payment are.  Once you have done your research, open an account with confidence.

Credit is part of life, and if you are responsible about the way you obtain credit after careful research, you can make sure credit cards are a positive part of your life.

Are you a rate-hopper or a promo junkie?

Rate-hoppers and promo junkies. You may have never heard the terms, but each apply to a certain type of credit card consumer.

As you may have guessed, rate-hoppers always keep a lookout for the lowest interest rates and make balance transfers more often than the average consumer.

Promotional junkies are lured by the promise of rewards and sign-on promos. A promo junkie may not care about balance transfers like the rate-hopper, but he'll sign up for more credit cards than he needs in order to reap the benefits.

Certainly there are true benefits to transferring balances to lower interest rate cards and for taking advantage of promotional offers, but there can be some disadvantages as well.

Rate hoppers know the value of a low interest rate. It is never a bad idea to transfer a balance on a high interest rate card to one with a 0% introductory rate.

Transferring a high balance to a 0% interest credit card can save a lot of money, even if the introductory period lasts for no more than a year.

The trick to taking full advantage of a balance transfer is to pay the credit card off in full before the 0% introductory rate ends. Most rate-hoppers, however, do not do this.

Rate-hopping can show up as a negative on your credit report. Some financial institutions have reservations about lending to a rate-hopper because of the number of closed accounts. They may assume you will bail out of your financial obligation to them before they can make a profit out of your business.

Promo junkies like opening new accounts with any company that offers a deal that's simply too good to pass up. Tempting promotions can come in the form of cash back, airline miles, free trips and those popular credit card points.

These promotional junkies dream of the day they can cash in those points for rewards, but it takes a lot of spending to rack up the points. Even if you don't use the card enough to stockpile the big points, some companies offer smaller awards such as MP3 downloads, books and DVDs.

Some credit card companies allow you to combine points with another cardholder, meaning you could end up sharing a reward that neither of you could have earned alone.

Other rewards include cash-back options. This means you can redeem those stockpiled points for cash or even a credit on your account.

The problem some promo junkies may run into is the temptation to apply for more credit cards than necessary. Having too many cards makes it more difficult to earn a substantial amount of points on one card alone. It may even mean a larger debt than intended.

Whether you are a rate-hopper, a promo junkie, or simply a savvy consumer, comparing credit card offers is a smart move. Utilize websites that allow you to compare cards before applying for any offer that comes in the mailbox.

Comparing credit card companies puts you in control. You can quickly see the card with the lowest APR percentage and lowest fees for balance transfers. The 0% interest period is plainly listed with other perks and rewards. Reading product reviews is another way to ensure you're making the right decision.

No matter your style, rate-hopper or promo junkie, it pays to be mindful of options.

Guest Post by MoneySuperMarket