If you have bad credit because of past late payments or charge-offs, a secured credit card is the best way to rebuild credit. Why? It will protect you from yourself. [...]

Considering buying your first home? Prepare yourself for one of life’s most demanding experiences. This first time home buyer’s mortgage checklist will get you organized to attack financing your home purchase as an informed shopper and avoid becoming a victim of pushy real estate agents and sneaky mortgage lenders. [...]

I know, I know. Everybody’s probably writing about this, but it’s not every day a financial product comes around that’s radically different than everything else on the market. So I have to weigh in. [...]

Good news for students, young adults, and others without a credit score. Credit scoring agency Fair Isaac has announced a new type of credit score that will help people with insufficient credit history get approved for loans and credit scores.

This new credit score called the FICO Expansion Score will collect information about consumers’ checking accounts and loans that previously were not reporting to credit bureaus such as payday loans and rent-to-own loans (payment plans).

The FICO Expansion Score will have many similarities to the traditional FICO credit score, including a scale between 300 and 850; the higher the better. Just as lenders use the traditional FICO score to weigh a potential borrower’s credit risk, the FICO Expansion score will provide lenders with clues as to a borrower’s likeliness to repay.

What’s the downside to the FICO Expansion Credit Score? Better balance your checkbook. While having an overdraft or two on your checking account does not affect traditional credit scores, that’s not the case with the FICO Expansion Score.

It’s too soon to tell whether bouncing a check or two could harm an otherwise established and good credit score, but if you don’t have credit or have some credit issues, its one more incentive to keep an eye on that bank account balance.

If you’re curious to know where your score is, Experian allows you to check your credit reports for free.

Maybe you just got your first credit card, or are retraining yourself to use credit responsibly after getting out of debt.

Personal finance writers, myself included, love to focus on credit card abuse and the difficulties it can cause. But credit cards are also a powerful tool that can make managing your money easier. [...]

Recently I wrote about my positive experience getting a personal loan from Prosper, a peer-to-peer lending service. [...]

Last October I wrote that I had applied for an $11,500 debt consolidation loan from the unique person-to-person lending network Prosper. Here’s an update to how this amazingly cool service has helped me. [...]

If you’re like me, you have probably been tempted by the miles rewards credit cards like the Citi AAdvantage Card or the Delta SkyMiles Card from American Express. The bonus miles you receive upon approval alone might be enough to bump your next cross-country flight to first-class. Never mind the miles you’ll rack up for everyday purchases and business travel. But what about that annual fee, which can range from $30 all the way up to $395?

A credit card annual fee used to be a necessary evil – the price you paid to get anything from your credit card other than the privilege of deferring payment for 30 days (hopefully no longer). But today cards like the Miles by Discover Card, BlueSky from American Express, or Citi PremierPass offer rewards for purchases without an annual fee.

What exactly, does the annual fee buy you?

Slightly “better” rewards, to be exact. The difference between the Citi Premier Pass (no annual fee) and Premier Pass Elite ($75 annual fee)? Both cards get you one point for every $1 spent and extra miles for every mile flow. The Elite Card gives you double points at select gas stations, supermarkets, and drug stores and gives you the option of getting a free companion airline ticket with every fare $299.00 and over. The enrollment bonus varies, also; Elite card members will score an additional 10,000 bonus miles.

In the Citi PrimerPass example, it’s obvious that if once a year you would use the free companion airfare feature, you would save more than the $75 annual fee. What about other cards? For purely points-based programs, ask yourself how much spending (and how much free flying) you’ll do.

The value of credit card points varies depending on how they are redeemed, but we can assume they are valued at about one cent each. If you earn 1 point for every $1 spent and spend $25,000 you may have a free ticket worth about $500. Definitely worth an annual fee of $75. But do you charge at least $2,000 a month on your credit card? Probably not. If you only charge $500 a month, you’ll have 6,000 points at year’s end, worth about $60. You’ll have ended up loosing $15 to the annual fee.

Of course, this example assumes you pay off your balance in-full every month. If you don’t, forget the annual fee, any rewards you’re receiving will be eaten away by finance charges. For this reason, credit cards with annual fees tend to have high interest rates. If you’re looking for a credit card to carry a balance, never pay a fee! Check out my article on credit card balance transfers for some tips.

Want to get the perks of an annual fee credit card without paying up? You have a couple of options. Most cards offer the first-year fee-free. You should be able to apply, use the card for a year to rack up the points, and cancel before the fee comes due. Just remember that both opening a credit line and canceling one put a slight ding in your credit score. The other route? Call up your card company and ask to waive your fee. It may not work with all cards, but most companies want to keep your business and will make concessions if you ask.

Looking for a no annual fee rewards card? Check out my recommend credit cards.

The surest way to sound personal finance in your twenties is to learn how to manage your money before you need to. And if you’re a parent, you can help your children become wealthy even if you’re not.

Although this site is mostly dedicated to readers in their twenties looking to better manage their finances, I believe it is never to early to begin a child’s financial education, and it’s a topic I want to touch on as often as possible. The following are some points that can go a long way in helping your kids get off on the right foot financially.

Allowances Aren’t Enough – Whatever age you decide to start giving your child an allowance, be sure that it comes with your two cents on smart spending. If junior is blowing the allowance on candy each week, insist that a portion of the money goes directly into savings. Kids aren’t inclined to think about the long-term, so don’t feel bad about helping yours along!

Lead By Example – You won’t get very far saying “spend as I say, not as I do.” If you’re preaching frugality and savings but racking up new purchases on a credit card, chances are your advice is going to be wasted. Actions speak louder. Kids should give you yet another reason to be financially responsible. If you are, let your child see you in the act of saving money, paying bills on time, and foregoing purchases that you may want but not need.

Watch Where the First Paycheck Goes – When your child, perhaps as a teenager, lands his or her first steady job, be involved in how they use their first paycheck. Of course some of it will go for movies and eating out with friends, but what about the rest? Are they saving for a car or going to the mall on a shopping spree? Sadly I had already spent my first paycheck, by checking off things I wanted in catalogs, long before I had earned it – a telling sign of my credit card woes to come. On the flip side, one of my best friends had over $1,500 saved in an IRA before he started college.

Teach Credit Slowly – Credit cards are a necessary evil. Giving a teenager a credit card is risky, but it is also the best way to begin developing a credit history early on. Two alternatives to giving your child his or her own credit card? Create a duplicate card tied to your account. Allow your child to make purchases on it as long as the balance is paid to you in full each month. If your child overcharges, take the card away until the balance is paid off. You could also use a pre-paid card like Visa Buxx. When it is time for your child’s first credit card, explain the dangers of consumer debt carefully, and check in with them to make sure they aren’t racking up a balance.

Helping your child become financially responsible can be a tricky balance between parental guidance and independence and privacy. At least until your child is 18, it is fair to ask to be involved in all of your child’s financial decisions. Doing so may be one of the most valuable things you can do to secure your child’s future.

These rising interest rates are bad news for those of us hacking away at our credit card debt. A couple of years ago I thought I was safe because my cards had so-called “fixed interest” rates, not variable prime-plus rates most cards are infamous for. Surprise, surprise, when the rates really started to take off my credit cards sent me nice little notes with how much my “fixed” rate was going up. One went from a decent 9.89% to 15.90% and the other from 14.99% to 17.99%! Good Lord. Eventually I’ll be in the position to negotiate these down, but with my current balances they just laugh at me — they know I’m not getting any other offers. Debtors beware the rising rate! Check out the Debt Zapper Calculator at Credit Card Nation to compare what different rates will cost you, or see how fast you can pay down your debt.