Do all credit cards charge fees for international transactions?

When using credit cards outside of the U.S., a credit card user is likely to incur transaction fees for any purchases made while out of the country. Purchases made by cardholders in foreign countries can be subject to various transaction fees.

Unfortunately, there is no standard international transaction fee. The amounts of these foreign transaction fees vary between different credit card issuers. Also, as with many rates associated with credit cards, these fees are subject to change.

We recently published an article — Credit Cards And Foreign Transaction Fees — that discussed this topic in detail. Despite the overall fee variances between different credit card issuers, there are commonalities as to how these foreign transaction fees are charged. It can be helpful to understand the basics of how these fees are charged before inquiring with your current credit card company.

So, which credit card company currently has the lowest transaction fees for purchases made overseas? Finding the answer to this question takes a bit of research, but if you are planning to use your card overseas it is time well spent.

As of today (July 11, 2008) some Capital One credit cards do not charge a transaction fee for using your credit card for foreign currency transactions (read the official FAQ here). But rate policies with all credit card issuers are always subject to change, so be sure to read over the most current terms and conditions of a specific credit card offers before applying.

Do you have another question regarding the subtleties of credit cards or topics associated with using credit cards? Visit our credit card tips and advice center for tons of information presented in a simple question-and-answer format.

Posted in Credit Cards, Miscellaneous, Personal Finance | Permalink

What elements factor into the calculation of a credit score?

Your credit score is based on the various information that is present in your individual credit report. The score is based on the different categories, which vary amongst different scoring models. In addtition, how much weight each category holds in a specfic scoring model also varies.

However, there are a handful of core elements that most likely factor into any type of credit scoring model. These are important components to keep in mind when attempting to get a better understand of and/or improve your credit score.

Elements of your credit score include:
- Payment history
- Amounts owed
- New credit
- Types of credit used
- Length of credit history

A clean payment history without missed or late payments is something to strive for. In addition, paying attention to total amounts owed versus total available credit is recommended. It is generally a good idea to not utilize a large portion of your available credit if at all possible.

Closing accounts is a complicated topic. Closing an account can reduce your length of credit history and can also reduce the ratio of credit used versus credit available. But in some cases, closing an account can be beneficial. It is important to examine each account carefully to determine whether closing it or keeping it open is the right choice.

For more detailed information on the topic of credit scores and what factors into the credit scoring equation, be sure to read our recent article, How a Credit Score is Calculated.

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Pay off your credit card debt faster

Chances are that if you have credit card debt, your main goal is to pay off this credit card debt in its entirety as quickly as possible. Easier said than done, right? As with most personal finance matters, formulating a basic plan and strategy is one key to success. The plan can be altered if new needs arise, but it is almost always beneficial to try to follow a thought-out, structured path.

Our Credit Card Roll-down Calculator applies two principles to paying off your credit card debt:
- Pay off your highest interest rate first.
- When that balance is paid, move on to the next highest interest rate.

These principles are simple but the process can get a little more complicated once you factor in multiple credit cards, each with it’s own balance, interest rate and required minimum payment. This calculator can help to simplify the entire payoff process and help you to formulate a structured repayment plan.

Try it now: Credit Card Roll-Down Calculator

This calculator is one of more than 25 financial calculators available online for your use. Make you next personal finance decision a knowledgeable one. Fully understanding your current situation and analyzing your available options can lead to many benefits down the road.

Posted in Credit Cards, Miscellaneous, Personal Finance | Permalink

How much income do you need to qualify for a mortgage?

Especially in the current economy, it’s a good idea to have a general idea how much income you need to qualify for a certain mortgage amount. Our Mortgage Required Income Calculator will help you to determine how much income you need to qualify for a specific mortgage amount and how different interest rates (and other factors) affect your required income.

How much income is required to qualify for a certain mortgage amount largely depends on your monthly debt payments and also on the current interest rate. This calculator collects these important variables and determines your required income to qualify for your desired mortgage amount.

Try it now: Mortgage Required Income Calculator

This calculator is only one of more than 20 financial calculators on e-wisdom.com. Make your next loan decision a knowledgeable one — utilize the tools and resources available in our knowledge center to help answer questions and compare available options.

Posted in Loans, Miscellaneous, Personal Finance | Permalink

Home Budget Analysis Calculator

Managing your monthly budget can be a frustrating experience. And if you don’t currently have a monthly budget, creating one can be difficult and time consuming. Yes, these tasks can be difficult and frustrating, but they don’t have to be. Our home budget calculator can make budgeting a much easier process.

One of the most important aspects of controlling your home budget is to determine exactly where your money is being spent each and every month. The budget calculator can help you do just that and more.

By entering your income details and typical monthly expenditures, you can easily see where your money is being spent and you can also calculate how much money you may have left to save, on average, at the end of each month.

In addition, you can alter the net monthly pay amounts and other miscellaneous income that you currently receive or may receive in the future. Once this information is entered, you are able to view your income breakdown alongside your monthly expenditures breakdown.

This calculator is one of more than 25 financial calculators available on e-wisdom.com to help you save time and money. Make your next financial decision a knowledgeable one, visit our knowledge center for tips, advice, tools, resources and more.

Posted in Site Updates, Credit Cards, Loans, Miscellaneous, Insurance, Personal Finance | Permalink

Protect Your Identity with an ID Theft Prevention Service

We’ve all heard the reports about the growing threat of identity theft and fraud. If your personal information is compromised, any fraudulent financial activity that happens as a result can negatively affect your credit score and ability to borrow for years. Not many can deny that the threat of ID theft should be taken seriously. But when is it time to consider signing up for an identity theft protection or prevention service?

The answer to that question varies from person to person. If you feel that your personal information either is or was vulnerable in the recent past, the answer should be easy. On the other hand, if you don’t have reason to believe that your personal information has been compromised, the answer depends more on your overall comfort level and how closely you wish to monitor your personal financial situation.

One thing that is certain, however, is the fact that identity protection and prevention services are beginning to offer more and more useful products to help individuals actively monitor their credit and also protect themselves from potential fraud.

We recently compiled a list of ID theft protection services for comparison purposes. You can easily compare the various products and services offered by each company to find a good fit for your specific situation, whatever it may be at this point in time.

Compare identity theft protection and prevention services now

For more information about credit monitoring and identity theft protection, see about credit monitoring, which is a subtopic within our credit tips and advice area. And be sure to visit our knowledge center for more information about any topic found on e-wisdom.com.

Posted in Site Updates, Credit Cards, Loans, Miscellaneous, Personal Finance | Permalink

Facts for Consumers - Fair Credit Billing Act

How you ever been on the wrong end of a billing error? If so, keep in mind that these types of errors can be corrected if the proper steps are taken. The Fair Credit Billing Act (FCBA) provides guidance in the area of dispute settlement procedures.

The FCBA applies to “open end” credit accounts, such as credit cards. It also applies to revolving charge accounts, such as department store accounts. It does not apply to installment contracts, such as auto loans or appliance repayment contracts.

Read more about the Fair Credit Billing Act now:
- Learn about your rights with credit card billing errors
- Find out types of disputes are covered
- View a sample letter written to a creditor
- Find answers to common questions that may arise
- Learn about other rights and options that you may have

You can find more information about various finance topics in our tips and advice center. You can also find financial calculators and other helpful credit-related resources in our knowledge center.

Posted in Credit Cards, Miscellaneous, Small Business, Personal Finance | Permalink

Alternative credit scores being used to to evaluate
the credit-worthiness of potential borrowers

A recent article discussed in detail how many lenders are now looking beyond what some consider to be the “traditional” credit score in order to determine the credit-worthiness of a posssible borrower. These lenders are instead looking at alternative credit scoring methods to evaluate the risk involved with certain individuals.

Some lenders are now looking beyond total debt amounts and payment histories, and are instead looking at other factors, such as rent and utility payments.

Credit scorers find creative new ways to judge you

Whether or not this is good news depends on your specific financial situation as well as the details of your credit history (or lack thereof). One thing that is certain, though, is that some lenders are looking beyond the traditional methods when determining the risk involved in extending credit to potential borrowers.

One time each year, consumers can request a free copy of their credit report. Read Can I get a free credit report? for more information about this guaranteed right. There are also a number of companies that offer credit score services and a variety of credit monitoring services.

Staying on top of your credit can really pay off when the time comes to apply for your next loan or financial product.

Posted in News, Credit Cards, Loans, Miscellaneous, Personal Finance | Permalink

FICO credit score uses a new scoring model

A recent article detailed changes that Fair Isaac Corporation, the creator of the well-known FICO credit score, made to it’s credit scoring model. The article talks about how the new scoring model for the FICO credit score, which is used by many lenders to judge applicant quality, will attempt to better predict those who are more likely to default on a loan.

Full article: FICO Credit Score Gets Makeover

The new scoring model should be in use by Spring of 2008, and, once the new model is in place, some consumers could feel the changes when applying for a credit card or a new loan.

It’s always wise to stay on top of your finances and be fully aware what is and is not listed on your credit report. Keeping tabs on the overall state of your credit as well as your current credit score can greatly benefit you when the time comes to apply for a new loan. If there is an error or mistake you can correct it before it has a chance to affect your next loan terms.

Did you know that once per year, consumers can request a free copy of their credit report? Read this for more information about this guaranteed right.

Posted in News, Credit Cards, Loans, Miscellaneous, Insurance, Personal Finance | Permalink

Analyze Your Budget as a Full-Time Student

Our new student budget calculator allows students to determine a reasonable budget as a full-time student. This calculator is specifically designed to help students understand their expenses and income while attending a university, college or other educational institution.

To begin, students input estimated expenses and income for an eight-month school year running from September through April. This calculator allows students to estimate the cost of school expenses, food, entertainment, travel, clothing, and other miscellaneous personal expenses.

These expenses are then measured up against the total of all expected income and contributions. This will allow the student to see if he/she needs to make any adjustments to estimated expenses or seek additional funds via student loans or other sources.

See also:
· Student Loan Consolidation and Debt Payoff Calculator
· Student Loans: Compare Lenders
· Student Loan Tips and Advice
· Credit Card Offers for Students

We have a variety of resources available to students. For additional information about any topic, visit our knowledge center, where you will find various tools and resources to help in the decision-making process.

Posted in Credit Cards, Loans, Miscellaneous, Personal Finance | Permalink