Credit Limits

How are credit limits determined on credit cards?
How much credit you are extended on a card corresponds to your income level, credit history, and your FICO score. There are lenders that offer a preset limit, and that limit will apply to anyone who’s approved for the card. Whether or not you get approved, however, will depend on your credit score as well as your income. Other credit card issuers don’t set a limit they do a more involved analysis of each customer’s finances to determine a max amount.
One thing to keep in mind about credit card limits is that having a higher one isn't necessarily better. Remember, credit card companies make money by collecting interest on unpaid balances, so if you max out your card's limit and spend months paying it off, you'll end up paying out more money than necessary for whatever you used your card to buy.
Like most things in life there’s pro’s and con’s and a higher credit limit can be good or bad.

Your Safe Money Show What is net worth 6 10 17

Highlights for June 10 Your Safe Money show

On this week's Your Safe Money Show, we all know June is a month that many couples get married, so I have some advice for newlyweds that can actually help all of us.

There was a story this week in the Star Tribune, about jobs in Minnesota and our aging workforce and what big companies are doing to plan for changes going forward.

And understanding “net worth”, what it is and why it is so important to your financial future.
Tune in Saturday's at 7:30 a.m. at KBEK 95.5FM. They also steam live at kbek.com. Here recent shows at our podcast page at yoursafemoneyshow.com. 

Credit Limits

Privatizing Debt Collection-IRS

The IRS is now sending letters out to taxpayers whose longtime unpaid tax debts are being farmed out to authorized private debt collection firms. 
Scammers, no doubt, will take advantage of this, so here’s what to watch for. The IRS will notify you and your tax representative first by letter. That letter will include the name of the firm you'll be dealing with, along with the firm's contact information. Then the firm will send its own letter confirming that it will handle your case. To protect the taxpayer's privacy and security, both the IRS letter and the collection firm's letter will contain information that will help identify the tax amount owed and assure that future collection agency calls they may receive, are legitimate.
 You should never be asked to send payment to the firm or to anyone other than the IRS or U.S. Treasury. 
Anyone calling and demanding immediate payment by prepaid debit card, gift card or wire transfer -- or asking for your credit card or debit card number -- is a fraud. Hang up. 

Your Safe Money Show Largest Household Expenses 6 3 17

Highlights for June 3 Your Safe Money Show

The American College of Financial Services had a 2017 quiz on “financial concepts,” and found there’s still confusion for three out of four people between the ages of 60 and 75. We’ll go over those concepts with you so you’ll be that one in four that understands financial concepts. 
Your Social Security income statement should be reviewed on a regular basis so you can correct and stay on top of that information. Otherwise your benefits can be affected.
And expenses are something we all deal with, but what expenses are the most hurtful to our household budgets? Getting control over those expenses can certainly help your bottom line.
Tune in at 7:30 a.m. at KBEK 95.5 FM. They stream live at kbek.com.