Federal Reserve Helps You

On November 19, 2007, the federal reserve board announced a new program for consumers that need help in regards to bank problems. It's called Federal Reserve Consumer Help and the link is www.federalreserveconsumerhelp.gov.

The board says, "To make it more convenient for consumers to contact us, we created a one-stop complaint and inquiry site where consumers know they can go to get help."

The website allows for easy navigation and the ability to submit complaints electronically.

Here is all the contact information:

Online: http://www.federalreserveconsumerhelp.gov/
E-mail: ConsumerHelp@FederalReserve.gov
Toll-free: 888-851-1920 (8 a.m. to 6 p.m. CT)
Toll-free TTY: 877-766-8533
Toll-free fax: 877-888-2520
Mail: Federal Reserve Consumer Help, P.O. Box 1200, Minneapolis, MN 55480

How to Use Credit Cards

Here are some basic tips for using/getting a credit card:

1. Find the lowest interest rate possible.

2. If you are financially able, pay your balance in full each and every month. If you are riding out a 0% introductory rate, ensure you can pay the full balance at the end of the introductory period.

3. If you are unable to pay your full balance each month, pay as much as possible and always tackle the cards with the highest rates first.

4. Try to find a credit card that offers "cash back" or some other incentive. I have a Chase Freedom Card that has literally EARNED me thousands of dollars over the years.

5. Try to find a card with no fees at all. For some people who've had credit challenges in the past, this may be difficult and you may have to get a card that has fees just so you can start establishing good credit. Ironically enough, bad credit is better than no credit. I used to work at a car dealer and it was easier for customers with bad credit to get a loan than customers with no credit history.

6. Pay your bill online each month if possible. Save the money that you would spend each month on stamps and put it towards your bill.

7. Don't overspend. This will help you meet #2. Sometimes you just need to make a budget so that you know how much you can afford to spend each month on your credit card.

Online Banking

Get rid of your crappy Bank of America savings account (or whatever other low interest bearing account you may have) and put your money in an online bank. Two of my favorites are ING Direct (http://home.ingdirect.com/) and Countrywide Financial (http://my.countrywide.com/). Currently, CWF has a better rate (5.4%) so it's my primary savings account but ING Direct has a MUCH better interface. I'd recommend that if you are just getting started in online banking for your savings account, go with the ING account. It's very easy to use and easy to transfer money. If you start an account and refer your friends to ING, you get a bonus (and so do they!). No matter which online bank you use, look for no fees to transfer money to your external account (usually your checking account). Let me know how it goes!