Time to leave the hassle behind

Kiplinger's Personal Finance Magazine, Jan, 1998 by Robert Frick

An expanding universe of other options exists for check-free bill-paying, but most involve mastering a computer program or other technology, plus paying a fee. Still, by the end of 1997, an estimated 4.5 million U.S. households were banking online through programs such as Intuit's Quicken ($39.95 for Quicken Basic 98; check www.quicken.com for more information) or Microsoft Money ($29.95 for Money 98; www.microsoft.com/money), or through a bank's own software or Web site (see "Banking: There's No Place Like Home," Dec.). Typical monthly fees range from $6 to $10 for 20 payments.

If your bank doesn't offer bill-paying, check out CheckFree Corp. (www.checkfree.com); you can use its Web site or software to make electronic payments. If you don't have a computer, call 800-882-5280 to sign up for CheckFree's touch-tone bill-paying. Either service costs $9.95 a month for 15 payments and $2.49 for each additional set of five.

ODIOUS TASK 4 Juggling CREDIT CARDS

Maybe your wallet is fat with credit cards and your mailbox is stuffed with credit card statements. If you think having so much credit is a convenience and will help you build a good credit rating, think again.

Having more than two or three credit cards may actually hurt your credit rating, according to Maxine Sweet, vice-president for consumer education at Experian, a credit bureau that provides credit reports on consumers to businesses. Sweet says that having a minimal number of cards and using them in a steady but judicious manner is all that's needed to build a good credit rating. Having too many cards may result in denial of credit if you already have a big debt load. Even if you don't have big balances on each card, the amount of available credit may cause potential creditors to turn you down. So trim back to two or three at the most,

If you really have your credit card act together -- that is, if you pay off your balances at the end of each month -- consider turning your use of credit into a tool to eliminate other odious tasks and pay yourself some dividends in the process.

For example, Sweet and her husband "charge everything" on a card that earns points toward free airline tickets. Not only does it save check writing, but her monthly statement gives a good breakdown of how much money was spent for what.

Among the best rebate cards is Southwest Airlines Rapid Rewards Visa card (800-792-8472), which offers a 6.9% fixed interest rate for the first six months (the full rate is prime, recently 8.5%, plus 8.65) and no annual fee for the first year (after that, it costs $29 a year). Members earn one credit (16 credits earns a round-trip ticket) per $1,000 in purchases or balance transfers, two credits for each round-trip flight purchased with the card, and double credits for flights booked through Southwest's Web site (www.iflyswa.com) and completed by June 30, 1998.

The Private Issue Discover card (800-474-2273) doles out 2% cash rebates, with no cap, once your annual purchases on the card reach $5,000. (Smaller rebates on the first $5,000 basically cancel out the $18 annual fee.)