What the experts say
The landlord takes plastic
Paying for your mortgage with a credit card sounds like an awfully bad idea, said Janet Morrissey in The New York Times. But in recent years, several credit card companies have rolled out programs through which homeowners and renters charge their monthly housing bills and “rack up rewards points that qualify them for free trips and other perks.” These programs are geared toward high-income, high-credit-score customers who pay off their balances every month. But even they should think carefully before signing up. American Express started offering its rent-paying program in 2003 and now works with high-end landlords in 200 different cities. In May, it partnered with IndyMac Bank and American Home Mortgage, “which has since filed for bankruptcy protection.” Visa introduced similar rental and mortgage programs this year. But anyone who considers plastic as a last resort for fulfilling a mortgage payment is on his way to even “deeper credit problems.”
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A no-worry warrantee strategy
Nothing ruins the joy of holiday shopping like the pressure of choosing a warrantee, said Kelli B. Grant in SmartMoney. When you’re shelling out $3,000 for a 50-inch flat-screen TV, it’s nerve-wracking to hear a salesperson explain what could go wrong if you pass up the extended warranty. In most cases, warranties aren’t worth it. “However, there are a few exceptions.” If you’re not tech savvy, for example, an extended warranty that includes tech support as well as repairs might make sense. Or, if you plan to use a device daily and to its full capacity, look into an insurance policy instead of a warrantee. In any case, don’t feel pressure. With most retailers, you have up to 30 days to add a warranty. “That gives you ample time to make sure it’s the right move.”
Don’t obsess over credit
Some people are obsessed with improving their credit scores, said Jessica Anderson in Kiplinger’s Personal Finance. Web sites such as CreditBoards.com and CardRatings.com have forums “crawling with credit-score junkies who reply to each other’s questions and post tips on boosting their scores.” It’s true that your credit score can influence everything from interest rates on loans to job possibilities. But, “unless you’ve got credit problems or mistakes in your report, or you’re about to apply for a big loan, you don’t need to micromanage your credit score.” Just follow three “simple” rules. First, pay your bills on time. “Your payment history makes up more than one-third of your score.” Second, don’t use every cent of credit you have available: Maxing out your credit card will probably hurt your score. Finally, think twice before applying for new credit. Shopping for a mortgage is one thing. But saying yes to every department store card offer that comes your way can quickly “ding” your credit.
