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You need to know who might protect you if you get ripped off.
Who regulates and watches all this checking account and financial transaction stuff?
You probably won’t ever deal with the Federal Reserve directly.
– The Fed isn’t actually a bank you can walk into and deposit your paycheck. It is the central bank of the United States, created and overseen by Congress. It provides our country with a safer, more flexible and more stable monetary and financial system.
The “Fed” mainly sets interests rates — the price everyone pays to borrow money.The Office of the Comptroller of the Currency (OCC)
-You won’t have to deal with these people.
The OCC regulates and supervises all our banks, credit unions and other financial institutions.
The Federal Deposit Insurance Corporation (FDIC)
– The FDIC is actually really important for you. The FDIC protects your money when you put it in a financial institution.
For instance, if a financial institution goes broke, the FDIC generally makes sure you get your money back (as long as it isn’t over $250,000).
National Credit Union Administration (NCUA)
The NCUA does all that regulatory stuff for credit unions, instead of banks.
The Consumer Financial Protection Bureau (CFPB)
– You can connect directly with the CFPB if you think you’ve been treated unfairly when it comes to money stuff.
They oversee financial products and services that are offered to consumers.
They make sure the banks stick to the rules and treat consumers fairly.
Pretty straightforward, right?
You spend your own money.
You don’t get a bill when you spend your own money.
Hey, it’s your money!With a credit card, you always borrow money.
You always create debt when you use a credit card.
You always get a bill when you charge something on a credit card.
Hey, it’s the credit card company’s money you’re spending.
Every time you use a credit card – even to buy a hamburger – you are borrowing money.
If you borrow $400 today, you could borrow an additional $600 tomorrow. 00:55
You then owe $1,000. 01:03
You can not borrow any more until you pay down your balance below a $1,000. 01:07 01:15
Second, pay attention: It’s very easy to mess up your credit when you finance your debt using a credit card.
Activity on your account helps build your credit.
Forwardput the same amount of money for that item in your savings account. 00:26
Every time you charge something on your card, put the same amount of money for that item in your savings account. 00:41 00:47
That means, for instance, every time you charge $100 on your credit card, make sure you put $100 in your savings account.
And here’s an easy way to do it:
Make sure you have signed up for online banking for your checking account.
Make sure you have a savings account linked to your checking account.
Every time you use your credit card, transfer money from your checking account to your savings account.
You’ll be earning interest, and you’ll always have money set aside for your credit card bill.
Guaranteed Lifetime Of Financial Prosperity!#*+++**^^**+++**#
Guaranteed Lifetime Of Happiness!#*+++**^^**+++**#
BUT, GUESS WHAT: THEY COULD OFFER THOSE THREE GUARANTEES, TOO, AND IT WOULD MEAN NOTHING!
“Guarantees” usually aren’t worth much when it comes to credit cards.All they have to do is put one or all of these after it: ***1*++**
All they have to do is use the words “up to…”
That’s all they have to do to make all their guarantees virtually worthless.
If the big words don’t mean much, and the fine print at times says the opposite of the big words, what good are the guarantees?
And here’s what makes this even more scary:
The credit card companies’ way of presenting all this is generally legal.
The credit card companies usually do explain everything:
Some of the credit card companies warn you very clearly and in plain English.
Some explain it all in the fine print and legalese.
And even those credit card companies that try to trick you are more protected by the law than you are!
Get your credit card from a place, where you can talk with a representative in person, if and when you have a problem with your credit card.
Go to the bank or credit union where you have your checking account. If you’ve taken care of your checking account, that’s the place to go.
If you don’t have a local banking relationship, get one!
The government uses processing companies to collect taxes from people that pay via debit or credit card. These companies charge a fee, ranging from 1.87 to 2.35. Even though that may seem like a small percentage, if you have to pay $3,000 in taxes and put it on your card, that 2.35% fee is costing you an additional $70.2. College tuition – do not charge your college tuition on a credit card. getting a student loan is cheaper. Credit cards generally have higher interest rates and fees, and you have to start paying off your balance immediately. And on top of that, you will probably not be able to keep your balance below the 20% rule for “not paying off your credit card bill in full each month”, will you?
3. Medical bills –
Before you know it, your little visit may result in expensive scans or a stay in the hospital. And you may rack up big bills quickly. A broken arm surgery costs as much as $18,000. This may result in you not being able to pay off your bill. And bingo, you pay interest and may hurt your credit.