How Removing Your Name from a Shared Credit Card Affects Your Credit Score

Credit cards exceptional financial instruments. They allow you to buy without any cash and earn rewards while at it. Another interesting feature is the option of adding another person as an authorized user to your card. However, credit card usage does have a huge impact on your creditworthiness. So, does removing your name from a […]

The post How Removing Your Name from a Shared Credit Card Affects Your Credit Score appeared first on Credit Absolute.

Source: creditabsolute.com

Does carrying a balance help your credit score? – The Points Guy

Editor’s note: This post has been updated with new information. We talk about travel credit cards quite a bit here at TPG. Applying for and utilizing these cards strategically can unlock incredible travel experiences like premium class flights or luxurious hotel rooms. However, there are a number of misconceptions out there when it comes to credit cards, so …

Source: thepointsguy.com

Does having many credit card hurt your credit score? – The Points Guy

Editor’s note: This post has been updated with new information. We talk about travel credit cards quite a bit here at TPG. Applying for and utilizing these cards strategically can unlock incredible travel experiences like premium class flights or luxurious hotel rooms. However, there are a number of misconceptions out there when it comes to …

Source: thepointsguy.com

Apple Card $50 Signup Bonus When You Spend $50 At ExxonMobil

The Offer

Direct Link to offer

  • Apple is offering a $50 bonus when signing up for Apple Card and spend $50 at Exxon Mobil via Apple Pay. Valid until 1/31/21.

 

Card Details

  • No annual fee
  • No foreign transaction fee
  • No cash advance fees
  • No late payment fees (late or missed payments will result in additional interest accumulating toward your balance)
  • No over-the-limit fees, no balance transfer fees, no expedited card delivery fee
  • Card earns the following rewards:
    • 3% cash back on Apple purchases and services (including the app store, Apple Music payments, etc.)
    • 3% cash back on ExxonMobil, Panera Bread, Walgreen’s, Duane Reade, Uber, UberEATS, T-Mobile store purchases, and Nike when using Apple Pay 
    • 2% cash back on all Apple Pay purchases
    • 1% cash back when using the physical card

Our Verdict

We’ve seen the same deal for various other merchants. There was a $75 offer for Nike, but I think a lot of people will prefer $50 at the gas station.

Hat tip to Milestomemories

Source: doctorofcredit.com

A complete guide to airline companion passes

Flying can be a hefty expense – especially when you’re buying more than one airline ticket at a time. If you frequently fly with a companion, whether it be your child, spouse or friend, a companion pass can drastically reduce your travel costs.

While the terms vary depending on the airline and credit card, generally, companion passes allow a second passenger to fly with you for free or at a significantly discounted rate. Some credit cards automatically offer a companion pass when you are approved for the card or each year on your account anniversary. Others require you to charge a certain amount within a given time frame to earn the pass.

For more details on some of the most common companion passes, including what they offer and how to earn them, read on.

Which airlines offer companion passes?

  • Southwest Airlines
  • American Airlines
  • British Airways
  • Delta Air Lines
  • Hawaiian Air
  • Alaska Airlines
  • Lufthansa Airlines

Southwest Rapid Rewards® Plus Credit Card
  • Southwest Rapid Rewards® Premier Credit Card
  • Southwest Rapid Rewards® Priority Credit Card
  • CitiBusiness®/AAdvantage® Platinum Select® Mastercard®
  • AAdvantage® Aviator® Silver World Elite Mastercard®
  • British Airways Visa Signature® Card within a 12-month period, starting on Jan. 1 and ending on Dec. 31. For example, if you opened your card account in June 2020, you have until Dec. 31, 2020 to reach the spend requirement for that year.

    How long is the Travel Together Ticket valid?

    The Travel Together ticket is valid for 24 months from the date of issue.

    Which cards help you qualify?
    British Airways Visa Signature® Card

    Delta SkyMiles Reserve® American Express Card

    Hawaiian Airlines® World Elite Mastercard® (50 percent and $100 discounts)
  • Hawaiian Airlines® Bank of Hawaii World Elite Mastercard® (50 percent and $100 discount)
  • Hawaiian Airlines® Business Mastercard® (50 percent discount)
  • Alaska Airlines Visa Signature® or Alaska Airlines Visa® Business cardholder. As part of the introductory offer, you much spend $2,000 in the first 90 days to receive a companion fare. You will automatically receive the companion fare each year on your account anniversary.

    Travel must be booked on alaskaair.com.

    How long is the fare valid?

    The Famous Companion Fare is valid from the date of issue until your next account anniversary.

    Which cards help you qualify?
    • Alaska Airlines Visa Signature® credit card
    • Alaska Airlines Visa® Business

    How to get the Southwest Companion Pass, Earn sign-up bonus miles with the Southwest Rapid Rewards cards

    The Bank of America content of this post was last updated on March 20, 2020.

    Source: creditcards.com

    Should You Sign the Back of Your Credit Card?

    Should You Sign the Back of Your Credit Card?

    Signing the back of your credit card is an important security step for protecting your card’s information if it should fall into the wrong hands. Merchants are supposed to check that the signature on the card matches the signature on the sales receipt as a security precaution. If a card has no signature on the back, they aren’t required to process the ensuing payment.

    Should You Sign the Back of Your Credit Card?

    Signing the back of your credit card is always better than not, without exception. It’s another step provided by your credit card company to try and keep your personal information as safe as possible. When used in conjunction with the card verification value (CVV) on your card, it creates a line of defense should a fraudster try to swipe your plastic.

    While the signature itself doesn’t protect you, the ability for a salesman to match it to your existing official signatures is where its value lies. This is done most commonly with your driver’s license, or if you’re abroad, your passport is a fine stand-in. In other words, taking a few seconds to sign that little black or white strip could be the difference between your identity being stolen and not.

    Here’s a look at how the major credit payment networks handle unsigned cards:

    Mastercard

    Mastercard urges merchants in its payment network not to accept charges from customers with unsigned credit cards. On the back of every Mastercard, it even says “not valid unless signed.”

    The company tries to instill in merchants that they should not process customer transactions unless the customer’s signature appears in the signature space on the back of the card.

    If the card has no signature, merchants are to request the customer sign the card. A merchant also will need to see a confirming form of identification.

    Visa

    Should You Sign the Back of Your Credit Card?

    At Visa, merchants must verify that the signature on the back of any card matches the customer’s signature on the transaction receipt and any identification. They want to know you are who you say you are and recreating the same signature on demand when you sign for a credit card transaction is one way to do it.

    Visa considers an unsigned credit card to be invalid. The words “Not Valid Without Signature” appear above, below or beside the signature panel on all Visa cards. Turn over the card and you’ll see it. And like Mastercard, Visa urges merchants not to accept unsigned credit cards.

    When a customer presents an unsigned Visa card to a merchant for payment, Visa requires a merchant to check the customer’s identification by requesting a government-issued form of ID.

    Where permissible by state law, the Visa merchant may also write the customer’s ID serial number and expiration date on the sales receipt. (Beginning in California in 1971, the recording of personal information during credit card transactions has become illegal, with the passage of the Song-Beverly Credit Card Act.)

    Visa also instructs merchants to ask the customer to sign the card, within full view of the merchant. They then check that the customer’s newly written signature on the credit card matches the signature on the customer’s ID. If a customer refuses to sign a Visa card, the card is considered invalid and cannot be processed. Merchants will then be forced to ask the customer for another form of payment.

    Discover

    Discover keeps things very simple. The company urges its cardholders to sign the backs of their Discover cards as soon as they activate them.  This is because the signature makes the card valid and a cashier may decline the transaction if the card is not signed. 

    American Express

    American Express also urges retailers to compare a customer’s signature on the back of an American Express card with the transaction sales receipt. And if an American Express card is presented unsigned, the clerk is to request a photo ID of the customer with a signature. Following this, they must request the customer sign the back of the American Express card and the sales receipt while the clerk is holding on to the customer’s photo ID.

    Writing “See ID” on a Credit Card

    Should You Sign the Back of Your Credit Card?

    Writing “see ID” or “check ID” on a credit card might seem like a great way to protect from fraud. But it actually may invalidate the card. This is because only your valid signature that a merchant can match with a signature on a sales receipt is acceptable. In some cases, the merchant may ask you for another card to make your purchase. To save yourself from a slower-than-needed transaction at the cash register, sign your credit card as intended.

    Tips for Protecting Against Credit Card Fraud

    • Only carry the credit cards you need. When you travel, keep a list of the credit cards that you have with you. Make note of their full account numbers and expiration dates, as well as contact numbers for the issuers. It will come in handy if something should happen to your wallet, phone or both when traveling.
    • Go paperless and start checking your credit card statements online to avoid having to keep and shred your paper statements. Just be sure to keep your online passwords in a safe place and to update them from time to time.
    • Check your credit card transactions each month to check for errors or suspicious activity. Quickly report any transaction you don’t recognize to your card issuer.

    Find the Top 3 Financial Advisors for You

    • Finding the right financial advisor that fits your needs doesn’t have to be hard. SmartAsset’s free tool matches you with financial advisors in your area in 5 minutes. If you’re ready to be matched with local advisors that will help you achieve your financial goals, get started now.

    Photo credit: Â©iStock.com/PeopleImages, Â©iStock.com/hsyncoban, Â©iStock.com/RichLegg

    The post Should You Sign the Back of Your Credit Card? appeared first on SmartAsset Blog.

    Source: smartasset.com

    Experian Credit Score vs. FICO Score

    A young women reclines on a couch and smiles at the phone in her hand.

    When you think “credit score,” you probably think “FICO.” The Fair Isaac Corporation introduced its FICO scoring system in 1989, and it has since become one of the best-known and most-used credit scoring models in the United States. But it isn’t the only model on the market.

    Another popular option is called VantageScore, the product of a collaboration between the three major credit reporting agencies: Experian, Equifax, and TransUnion. It uses similar scoring methods to FICO but yields slightly different results.

    Each scoring model has multiple versions and multiple applications—you don’t have just one FICO score or one VantageScore. Depending on which bureau creates the score and what type of agency is asking for the score, your credit score will vary, sometimes siginifcantly. One credit score isn’t more “accurate” than another, they just have different applications. Learn more about the different types of credit scores below.

    When you sign up for ExtraCredit, you can see 28 of your FICO scores from all three credit bureaus. Your free Credit Report Card, on the other hand, will show you your Experian VantageScore 3.0.

    Sign Up Now

    What Is a VantageScore?

    VantageScore was created by the three major credit reporting agencies—Experian, Equifax, and TransUnion. It uses similar scoring methods to FICO but yields slightly different results.

    One of the primary goals of VantageScore is to provide a model that is used the same way by all three credit bureaus. That would limit some of the disparity between your three major credit scores. In contrast, FICO models provide a slightly different calculation for each credit bureau, which can create more differences in your scores.

    FICO vs. VantageScore

    So, what are the differences between an Experian credit score calculated using VantageScore and one calculated via the FICO model? More importantly, does the score used matter to you, the consumer? The answer is usually no. But you might want to look at different scores for different needs or goals.

    Is Experian Accurate?

    Credit scores from the credit bureaus are only as accurate as the information provided to the bureau. Check your credit report to ensure all the information is correct. If it is, your Experian credit scores are accurate. If your credit report is not accurate, you’ll want to look into your credit repair options.

    Our free Credit Report Card offers the Experian VantageScore 3.0 so you can check it regularly. If you want to dig in deeper, you can sign up for ExtraCredit. For $24.99 per month, you can see 28 of your FICO scores from all three credit bureaus. ExtraCredit also offers rent and utility reporting, identity monitoring and theft insurance, and more.

    Sign up Now

    Understanding the Scoring Models

    FICO and VantageScore aren’t the only scoring models on the market. Lenders use a multitude of scoring methods to determine your creditworthiness and make decisions about whether or not to give you credit. Despite the numerous options, FICO scores and VantageScores are likely the only scores you’ll ever see yourself.

    Here’s what FICO uses to determine your credit score:

    • Payment history. Whether or not you pay your bills in a timely manner is critical, as this factor makes up around 35% of your score.
    • Credit usage. How much of your open credit you have used—which is called credit utilization—accounts for 30% of your score. Keeping your utilization below 30% can help you keep your credits core healthy.
    • Length of credit. The average age of your credit—and how long you’ve had your oldest account—is a factor. Credit age accounts for around 15% of your score.
    • Types of credit. Your credit mix, which refers to having multiple types of accounts, makes up around 10% of your score.
    • Recent inquiries. How many entities have hit your credit history with a hard inquiry for the purpose of evaluating you for credit is a factor for your score. It accounts for about 10% of your credit score.

    VantageScore uses the same factors, but weighs them a little differently. Your VantageScore 4.0 will be most influenced by your credit usage, followed by your credit mix. Payment history is only “moderately influential,” while credit age and recent inquiries are less influential.

    Each company also gathers its data differently. FICO bases its scoring model on credit data from millions of consumers analyzed at the same time. It gathers credit reports from the three major credit bureaus and analyzes anonymous consumer data to generate a scoring model specific to each bureau. VantageScore, on the other hand, uses a combined set of consumer credit files, also obtained from the three major credit bureaus, to come up with a single formula.

    Both FICO and VantageScore issue scores ranging from 300 to 850. In the past, VantageScore used a score range of 501 to 990, but the score range was adjusted with VantageScore 3.0. Having numerical ranges that are somewhat consistent helps make the credit score process less confusing for consumers and lenders.

    Your score may also differ across the credit bureaus because your creditors aren’t required to report to all three. They may report to only one or two of them, meaning each bureau likely has slightly different information about you.

    Variations in Scoring Requirements

    If you don’t have a long credit history, VantageScore is the score you want to monitor. To establish your credit score, FICO requires at least six months of credit history and at least one account reported to a credit bureau within the last six months. VantageScore only requires one month of history and one account reported within the past two years.

    Because VantageScore uses a shorter credit history and a longer period for reported accounts, it’s able to issue credit ratings to millions of consumers who wouldn’t yet have a FICO Score. So, if you’re new to credit or haven’t been using it recently, VantageScore can help prove your trustworthiness before FICO has enough data to issue you a score.

    The Significance of Late Payments

    A history of late payments impacts both your FICO score and your VantageScore. Both models consider the following.

    • How recently the last late payment occurred
    • How many of your accounts have had late payments
    • How many payments you’ve missed on an account

    FICO treats all late payments the same. VantageScore judges them differently. VantageScore applies a larger penalty for late mortgage payments than for other types of credit payments.

    Because FICO has indicated that it factors late payments more heavily than VantageScore, late payments on any of your accounts might cause you to have lower FICO scores than your VantageScores.

    Impact of Credit Inquiries

    VantageScore and FICO both penalize consumers who have multiple hard inquiries in a short period of time. They both also conduct a process called deduplication.

    Deduplication is the practice of allowing multiple pulls on your credit for the same loan type in a given time frame without penalizing your credit. Deduplication is important for situations such as seeking auto loans, where you may submit applications to multiple lenders as you seek the best deal. FICO and VantageScore don’t count each of these inquiries separately—they deduplicate them or consider them as one inquiry.

    FICO uses a 45-day deduplication time period. That means credit inquiries of a certain type—such as auto loans or mortgages—that hit within that period are counted as one hard inquiry for the purpose of impact to your credit.

    In contrast, VantageScore only has a 14-day range for deduplication. However, it deduplicates multiple hard inquiries for all types of credit, including credit cards. FICO only deduplicates inquiries related to mortgages, auto loans, and student loans.

    Influence of Low-Balance Collections

    VantageScore and FICO both penalize credit scores for accounts sent to collection agencies. However, FICO sometimes offers more leniency for collection accounts with low balances or limits.

    FICO 8.0 also ignores all collections where the original balance was less than $100 and FICO 9.0 weighs medical collections less. It also doesn’t count collection accounts that have been paid off. VantageScore 4.0, on the other hand, ignores collection accounts that are paid off, regardless of the original balance.

    What Are FAKO Scores?

    FAKO is a derogatory term for scores that aren’t FICO Scores or VantageScores. Companies that provide FAKO scores don’t call them this. Instead, they refer to their scores as “educational scores” or just “credit scores.” FAKO scores can vary significantly from FICO scores and VantageScores.

    These scores aren’t completely valueless, though. They can help you understand where your credit score stands or whether it’s going up or down. You probably don’t want to shell out money for such scores, though, and you do want to ensure the credit score provider is drawing on accurate information from the credit bureaus.

    The post Experian Credit Score vs. FICO Score appeared first on Credit.com.

    Source: credit.com