Everyday Money

#moneyminute V2

September 18, 2018

Have a financial question? Ask us! We will compile the financial questions we receive, big and small, into a blog to be posted on Fridays. Feel your question is silly? No question is silly, but no worries, you’ll remain anonymous.

Email your questions to marketing@bankfivenine.com with #moneyminute as the Subject or message us on Facebook!

There are so many credit cards out there. How do I choose the right one?

There are a lot of credit cards available to you. It is important that you apply for a card that offers you the best overall value. Look closely at the differences and don’t be afraid to ask around. Along with your spending habits, consider looking at the following when comparing cards:

  • Minimum Payment Requirement
  • Annual Percentage Rate (APR): This is the cost of borrowing on the card, if you don’t pay the whole balance off each month
  • Fees and Penalties
  • Credit Limit (This is the amount of money that the credit card issuer is willing to let you borrow)
  • Different credit cards offer different benefits, like:
  • Travel Rewards: Some cards contribute frequent flyer points for every dollar you spend.
  • Cashback Rewards: Instantly save a certain percentage off every purchase in the form of cash back at the end of the month.
  • Other Perks: Many credit cards offer other valuable benefits like extended warranties, reduced prices on car rentals, special bonus categories for extra points/cashback, and more.

What is a cashier’s check and what are they used for?
A cashier’s check is a check drawn from a bank’s funds and signed by a cashier or teller. The most important difference from a regular check is that the bank guarantees its payment, not the check purchaser. Cashiers confirm that the purchaser has cleared funds in his or her account before issuing a cashier’s check. Cashier’s checks are best for large purchases, such as a house sale or car, or when you are unable to use your debit or credit card. When you receive one of these checks from a bank, all parties can be confident that the transaction is secure and the risk of theft or fraud is minimal. When getting a cashier’s check you’ll want to:

  • Have the exact amount and recipient’s name ready before requesting the check – you can’t get a blank cashier’s check.
  • If you’re using a bank where you have an account, make sure you have sufficient funds in your account to cover the amount of the check and any fees.
  • Visit your nearby branch and request the check from a teller.
  • Pay the check amount plus any applicable fee.

Can you please explain a bit about a credit score?
Credit Scores are numbers that are roughly between 300 and 850, that measure your “creditworthiness”.  Your credit score number is used to help determine whether you qualify for a particular credit card, loan, or service. There are many benefits of having a good credit score, like enjoying a lower interest rate on your credit cards and loans. There is no secret formula to building a strong credit score, but there are some guidelines that can help.

  • Pay your loans on time, every time. One way to make sure your payments are on time is to set up automatic payments, or set up electronic reminders.
  • A long credit history will help your score. Credit scores are based on experience over time. The more experience your credit report shows with paying your loans on time, the more information there is to determine whether you are a good credit recipient.
  • Only apply for credit that you need.
  • Don’t get close to your credit limit. Try to keep your balances low compared to your total credit limit. Paying off the balance each month helps get you the best scores.

Email your questions to marketing@bankfivenine.com with #moneyminute as the Subject or message us on Facebook!

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