Get Banks to Waive Your Fees

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The following is a guest post by Joe Cassandra. Read more about him after the post.

Most people hate banks. The list, which includes the automated machines, low interest rates, fees, and customer service reps named “Bill,” goes on. The problem is we need banks. Mortgages, credit cards, savings accounts etc., we need them. This doesn’t mean, however, that they have all of the power. They need us, the consumer.

Every account is worth money to them because they take our money and loan it. Essentially they make money from our money. The longer you’re a customer, the more likely they will hold more of your money. This is a key leverage point you will see later.

Fees Are Everywhere – Some as Big as Your Head

The “rent” consumers receive for housing our money in a bank is paid in the form of interest that we receive from our deposited cash. Fair trade right? Well then banks try to get sneaky and post fees that eat up your interest.

“Maintenance fees”, “overdraft fees”, and then the one I got hit with: Excess Use Fee.

My wife, Sam, and I, were out of town for my sister’s wedding in North Georgia. We were moving money around in our accounts to correct for things we under-budgeted for, stuff we shouldn’t have bought… Well, the following week, I checked our account and one of our petty fund accounts was in the negative.

Being of the Scrooge mentality, I was certain that I calculated everything correct, but felt my confidence wavering for a second. “What bill did I miss?” Then I saw it. A $15 fee for “Excess Use” on the account. Excess Use? You USE your account too much and you get a fee? Sounds like a bad April Fool’s joke. Apparently if you transfer money around too much, that is “Excess Use.” When you get hit with these fees, you should immediately begin planning your call to the bank.

You need to collect a few simple things before making the call:

  • Your Customer History with the Bank (whether new or old)
  • A smile/positive attitude

For fees like this, you can use this script:

“Hi “Bill”, I noticed a Fee on this account of $15, I’ve been a customer for many years and enjoy banking here, I’d like to have that Fee removed.” Then simply stop talking.

Tip: Don’t ask a question that lets them answer with a Yes or No as most will be lazy and just say No. You should then get an immediate “Yes, we can do that for you.” Great! I usually ask more about the fee so it doesn’t happen again.

If they say no: “Well, I’ve been a great customer for many years and wish to continue with “insert bank name”. We just came back from a wedding, and it won’t happen again. What can you do for me?”

Starting a casual conversation with the rep will definitely help as well, as they probably deal with jerks all day.

If you are a new customer, you just tweak what you say a bit more, “I’m a new customer with the bank and have enjoyed the services, I’m also still learning about the accounts and promise it won’t happen again.”

With all that said, you can’t overdraft your account every week and expect a refund. If that’s your problem, you need to work on some other issues, such as budgeting!

Again, make sure you are respectful, polite and in good humor. Thank them for their help, use their name if possible. It’s a simple 5 minute phone call. Don’t be afraid to ask!

If you fail the first time, take a week and try again. You’ll be better the second time, guaranteed! What’s the worst that could happen? You’ll be a pro in no time, and it builds your confidence for future negotiations.

Your mindset is the key here, know what you want and go for it. With every negotiation you go into after, you can draw from your successes here. Think of it as investing in yourself.

Negotiation doesn’t have to be uncomfortable. Build value, be open, be personable.

Math Corner: $15 in 5 minutes. That’s $300 a hour. Would you want your time to be worth that much?

Joe Cassandra is the Founder of the7Minute Entrepreneur, where he shows you how to attack your life with the mindset of an entrepreneur in the areas of personal finance, careers, starting your own business and much more. You can follow him onTwitter.

photo by: Elvert Barnes

Filed Under: Guest Post

Massive Cash Back – Blue Cash Everyday® and Preferred® by American Express

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If you’re a fan of cash back credit cards then you need to pay attention to this post because I have two cards that rack up the dough quickly!

The Blue Cash Everyday® and Blue Cash Preferred® credit cards give you high percentage cash back at US stand alone supermarkets, US stand alone gas stations and select major department stores. Of course, they also give a standard 1% cash back on all other purchases.

Benefits – Blue Cash Preferred® Credit Card by American Express

The Blue Cash Preferred® Credit Card gives a huge 6% cash back at US stand alone supermarkets. You also get 3% cash back at US stand alone gas stations and select major department stores (listed below). You’ll get the basic 1% cash back on all other purchases.

Bealls, Belk® , Bloomingdale’s, Bon Ton Stores Inc., Boscov’s Department Store, Century 21® Department Stores, Dillard’s Department Stores, J.C. Penney Company, Inc., Kohl’s® , Lord & Taylor, Macy’s, Neiman Marcus, Nordstrom, Saks Fifth Avenue, Sears® Merchandise Group, and Stein Mart®
That’s not all either! When you sign up you’ll also be eligible for 150 Reward Dollars after making $1,000 in purchases within the first 3 months of card membership.

They are redeemable for a $150 statement credit. This bonus offer isn’t available if you’ve had this card in the last 12 months or any Blue Cash Card account in the last 90 days.

You’ll also have a 0% intro APR on purchases for 12 months!

Other benefits include Purchase Protection, Return Protections and Extended Warranty which you can read more about in the fine print  if you apply.

The one downer about this card is that it has a $75 annual fee. Normally this would eliminate this card from consideration for me but in this case I think the annual fee can be more than worth it as you’ll see in my comparison down below.

Benefits – Blue Cash Everyday® Credit Card by American Express

The Blue Cash Everyday® Credit Card by American Express is very similar to the Blue Cash Preferred® Credit Card by American Express.

Instead of 6% cash back at US stand alone supermarkets you’ll receive 3% cash back. Instead of 3% cash back at US stand alone gas stations and select major department stores (same as above) you’ll receive 2% cash back. You will receive the same 1% cash back on all other purchases just like on the Blue Cash Preferred® card.

Why the difference in cash back percentages? There is no annual fee on this card. If you hate annual fees and absolutely will not pay them this would be my choice. However, make sure you check out the comparison down below before you make up your mind. You may be surprised.

The cash back percentages aren’t the only benefit about the Blue Cash Everyday® credit card either. When you sign up you’ll also be eligible for 100 Reward Dollars after making $1,000 in purchases within the first 3 months of card membership.

They are redeemable for a $100 statement credit. Just like the Blue Cash Preferred® credit card, this bonus offer isn’t available if you’ve had this card in the last 12 months or any Blue Cash Card account in the last 90 days.

You’ll also have a 0% intro APR on purchases for 12 months!

Other benefits include Purchase Protection, Return Protections and Extended Warranty which you can read more about in the fine print  if you apply.

Which Card Should You Get?

These cards offer crazy cash back percentages but it might be difficult to decide which one you should get. The annual fee does seem scary but from the calculations I’ve done the annual fee almost always pays for itself if you shop at stand-alone supermarkets.

Below are a couple examples I have put together to illustrate this point.

If you want to plug your numbers into this calculator email me and I’ll send you the excel spreadsheet.

Some Things to Be Aware Of…

I have read the fine print on this offer, just as I always do with any offer. You should do the same if you’re going to apply so you can ensure you fully understand the program. Here are some highlights that you should be aware of…

  • The sign up bonus will be credited to your account in the form of Reward Dollars 6-8 weeks after the spend threshold is met. To receive the bonus your account must be active, in good standing and not in default.
  • All cash back is in the form of Reward Dollars which can be redeemed for statement credits, or, at the discretion of American Express, additional items like merchandise and gift cards, whenever your available Reward Dollar balance is 25 or more.
  • The stand-alone supermarket cash back is capped at $6,000 per calendar year. All purchases above $6,000 in a calendar year will receive 1% cash back.
  • Stand-alone supermarkets do NOT include superstores and warehouse clubs so my guess is places like Wal-Mart and Sam’s Club aren’t going to count.
  • Eligible purchases do NOT include purchases of travelers checks, purchases or reloading of prepaid cards or purchases of other cash equivalents. I don’t know how they know but I wouldn’t count on getting cash back on these items.

If this credit card isn’t for you make sure to check our our selection of other credits cards in the credit card menu above or following this credit card link.

The Dangers of Credit Cards

Credit cards can be great tools and make you a ton of money, if, and only if you play the game correctly. I ALWAYS pay my credit card off in full every month and you should too. If you can’t do this I would suggest against getting credit cards.

If you have a problem with debt and/or credit cards I would suggest you not sign up for new cards. The cash back benefits do not outweigh the interest charges you will pay.

Credit card interest rates are normally higher than most other loans and the interest can add up fast. Don’t say I didn’t warn you…

Do you use either of these credit cards? If so, I’d love to hear your experience below. Leave a comment!

This content is not provided or commissioned by the company whose products are featured on this site. Any opinions, analyses, reviews or evaluations provided here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by the Advertiser. This site may be compensated through the Advertiser’s affiliate programs.

Filed Under: Credit Cards

Short Term Loan Tips and Payday Loan Alternatives

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The following is a guest post. All opinions are that of the guest author.

Sometimes people can find it hard to break even at the end of the month. More and more people are turning to credit solutions when they are struggling financially, and the notion of the short term loan seems to have become ever more present in everyday life.

If you are finding it hard to get by there are a lot of different financial routes you could consider. The type of credit you should be applying for really does depend on your financial situation. If you are looking for help with pre-existing debts then you should perhaps think about a bank or personal loan. Consolidation loans are designed to pay off all of your debtors and cut down your monthly outgoings so you are able to manage your debts better. They are usually spread over a number of years so are only good for those people who expect to have a good income for the next few years.

If you are looking for a short term loan for a small amount of cash, then there are plenty of payday loan alternatives. Maybe you have had car trouble or something in the house has been damaged or has broken down. Any of these circumstances would necessitate a comparatively small amount of money over a short period of time. If you are thinking about taking out a loan keep in mind the interest rates and always compare companies to get the best deal. The bigger companies such Wonga in South Africa are the most heavily regulated, so they could potentially be the best option for you – you should never even think about going to a loan shark or any other disreputable source of short term money lending.

If you are thinking about buying a new car, need a mortgage or want a family holiday though, you should be thinking more along the personal loan route. These may take a little longer to arrange and there may be more of a bureaucratic process than that of a quicker loan but you could be saving money in the long run. Never use a short term loan for the purchase of something large like a car or home – you’re better off seeking advice if you’re unsure. They are really only there to help you out from time to time.

This was a guest post and the opinions in the the post are that of the guest author.

photo by: Dave Dugdale

Filed Under: Guest Posting

2013 Standard Mileage Rates Announced by IRS

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2013 IRS Mileage RateI have written before about standard mileage rates but today I’d like to give you an update. The IRS has released the new standard mileage rates for 2013 that many companies use to reimburse you for business miles driven on your personal vehicles.

You can also use these rates for deducting business use of your personal vehicle if you run your own business. Remember, despite what many people may think or say, you don’t make money on mileage reimbursement.

2013 IRS Standard Mileage Rate

For 2013, the IRS standard mileage rate is 56.5 cents per mile which is an increase of just one cent over 2012′s 55.5 cents per mile. This isn’t a huge increase but at least they didn’t decrease the rate. If you drive 1,000 miles on business it would amount to an extra $10.00 reimbursement from your employer or deduction on your tax return.

2013 Medical and Moving Mileage Rate

For 2013, the IRS medical and moving mileage rate is 24 cents per mile which, like the IRS standard mileage rate, increased once cent over 2012′s rate which was 23 cents for medical and moving mileage.

2013 Service to a Charitable Organization Mileage Rate

For 2013, the IRS service to a charitable organization mileage rate remained the same as it was in 2012 at 14 cents per mile.

You can read the official IRS notice here.

What do you think about the mileage rates for 2013? Did they increase enough or do you think it was a fair adjustment?

Filed Under: Basics

I Almost Made an Emotional Investing Decision

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emotional investing decisionToday I’m sharing a story with you that will hopefully save you a ton of money over your lifetime. I almost made an emotional investing decision…

The Recent Market Downturn

On October 17th, 2012 the Dow Jones Industrial Average (DJIA) was at 13,557. Since then the DJIA and stock market in general has been on a downward slope. After the Presidential election stocks began to sell off even faster and on November 15th, 2012 the DJIA was at 12,542 or down 1,015 points (about 7.5%) in a little less than a month.

Normally I do pay attention to the stock market a few times a week just to have an idea of what is going on. It had never affected my investing decisions until mid-November. The following is why it almost affected my investing decisions.

My Investing Situation

When I bought my current car in 2010 I could write a check to pay for it but I took out a loan instead. Instead of not saving for a car, I decided to continue making a “car payment” to an investment account each paycheck that was invested in the Vanguard Balanced Index Fund (VBINX).

VBINX is comprised of 60% stocks and 40% bonds which I thought was an acceptable amount of risk (if not conservative) for the time frame that I’d likely be looking to buy my next car. I am hoping it won’t be until my current car is 10+ years old.

So What Changed?

I mentioned in an analysis of our debt pay down strategy that my girlfriend has a large amount of student loans. We’ve been trying to figure out how to get these paid off as fast as possible. Originally I didn’t even think about touching my new car money. Then I realized that even if we used it all to help toward paying off my girlfriend’s student loans we would still have plenty of time to save for new vehicles before ours should be retired.

Now that I had decided on a new use for this money I needed to analyze the risk I was taking with it for a new shorter time period. I expect to use this money when we get married in the next year or two as a big payment toward the loans. This short time period began making me feel uncomfortable with my current investment choice. I knew I now wanted to go into a more conservative investment.

Re-Enter the Recent Market Downturn

Now that I knew I needed to be in a more conservative investment I need to sell my current investments. I didn’t want to sell all at one time but instead in small pieces so I don’t lock in a big loss if I happen to sell at a bottom. However, as I slowly watched the market drop further and further over the last month I began to panic and wonder if I should just sell it all and lock in the current gain I had.

I almost did it. I almost made an emotional investing decision based on fear. Fear normally means lost money when it comes to investing and I would have locked in the losses of the last month if I had given in to my fear. Then I remembered that I didn’t have to put this money toward the loans immediately. Even if I lost everything it wouldn’t be the end of the world. It would just delay the loans being paid off by a few more months. This made me feel better and realize that there is no need to panic.

My Plan Going Forward

Going forward, I still plan to sell my investment in VBINX and move into a more conservative investment. Now, instead of freaking out like I considered, I’ll come up with a solid plan and stick to it. No panic selling here which hopefully means more money to pay the loans off in the future.

What would you do if you were in my situation? What percentage of the investment would you take out of the game in each sale? How often would you make each sale?

P.S. Since I wrote this post a little over a week ago the stock market has regained the losses that occurred after the Presidential election… really good thing I didn’t freak out!

photo by: wsilver

Filed Under: Investments
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