Posts Tagged ‘Correlation’
Cash Back Credit Cards – The Five Keys to Success
October 24th, 2011 | 
Author: 
If you apply for a cash back credit card, you are probably hoping to see some money come your way. That may or may not happen, depending on how you manage your account. While cash back offers do offer some valuable rewards, the secret to making them work for you goes much further than reading the highlighted features on a website before you apply for it. Here are the five things to do to make cash rewards cards work for you.
1. Check beyond the initial offers and bonuses
One of the great features of a cash back credit card is that it often comes with an initial zero percent interest period or a bonus for signing up. This can work to your advantage. Experts warn, however, that it is important to read through all of the information on the card and not just focus on the bonus. If it comes with high fees or a high interest rate, you could end up spending more than you make with the initial bonus. Study the whole card to make sure it is a good fit for you. Then fill out the application.
2. Find a correlation between rewards and your spending
Many cash back credit cards operate on a tiered system. You might earn just one percent back for the first $1,000 you spend, and then you can expect to get three to five percent after that on some cards. This will help you if you regularly spend that much and pay it off. If you don’t, however, look for an offer that will give you a flat return rate of cash.
3. Look to see when the cash back rewards are granted
In some cases, you will only get cash rewards once a year. With other cards, you can expect to get it back in increments of $25 or $50, while with others you can access it on a more regular basis. The logistics don’t matter as much as your preference toward them. Decide what would work best for your financial situation. When you have the card, track your rewards and make sure you’re receiving them on a timely basis.
4. Read through reviews before applying
One of the important benefits of the Internet is that it allows us to do ample research on many things, including credit cards. Before you get a cash back offer, read through some online reviews. You may find that it fits perfectly for your financial situation, or you may discover other things about the card that you didn’t know before, and come to the conclusion that you should apply for a different one.
5. Spend within your means
With a cash back credit card, it is important to pay off the balance in full each month. If you do carry a balance, you’ll end up spending more in interest than what you receive in rewards. So live within your means, pay off the balance each month, and use your cash back card as needed. Following these steps will help you bring in cash and enjoy the other benefits that come with a credit card.
Posted in Cashback Rewards Cards | 
Tags: Cash Rewards, Correlation, Logistics, Preference, Tiered System | 
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Auto Insurance and Credit
Too often I hear insurance companies advertise how proud they are about not using credit as a rating factor in an auto insurance quotes. I then receive a phone call from a customer asking me if I am going to run their credit and confess to me they just took a hit on their credit score.
The reality is that credit is a good method to measure risk. Don’t stop reading this if you have less than perfect credit!
Don’t Forget, this article is meant to help you understand how credit affects your rating, so don’t get upset with me yet!
Why do insurance companies use credit to determine if I am a good driver? Insurance companies do not determine if you are a good driver based on credit. Insurance companies determine you are more prone to make a claim if you have lower credit. There is a correlation between bad credit and financial instability. Example: If somebody is financially unstable, they are more likely to not perform preventative maintenance on their vehicle such as new tires or new brakes.
Now, most people will probably replace their tires and brakes, but if one out of 1000 in the bad credit category has a tire blow out and they severally injure somebody, the insurance company will loose money.
What is the solution?
Don’t Fall in the trap of cheap advertisement! Please don’t fall in the trap of advertisements, “we don’t run your credit.” With my experience in the insurance world, not running credit usually means the insurance company is selling a limited product, which opens up loop holes for the insurance company to not pay a claim. Companies with a bad reputation and possibly a low rating tend to advertise like this and offer inferior coverage to the people who most need insurance protection (sad news).
Keep in mind, credit is not the only factor in your insurance rate. Folks over 30 (all else constant) can usually get away with an excellent rate although they might have bad credit. It all comes down to responsibility, and we can all admit that over all people over 30 might be more responsible than somebody in their 20’s.
For more information contact your local independent agent, Texas Prime Insurance or visit our Progressive Insurance dedicated website.
Most (if not all quality insurers) run credit. Depending on the financial stability of the company, a specific insurer may be more open to accept a customer with lower credit. My recommendation is for you to shop you rate until you find a quality insurer who will not consider your less than perfect credit as high risk. You can do this online or call a local independent agent who usually represents more than one company. One of these companies may give you a better price!
Posted in Insurance |
Tags: Advertisements, Bad Reputation, Correlation, Insurance Quotes, Sad News |
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