We’re all looking for great deals, but there are some things we need to watch out for, according to CBS Money Watch. There is always some fine print that we need to be aware of or things to watch out for. Here is a list that Money Watch put together of eight phony bargains and better alternatives.
1. Unlimited Long Distance: We’ve all been hearing the term “bundle” from the different companies. However if you don’t make a lot of long distance calling, you may be wasting your money. CBS says a bundle plan often costs about 20 bucks more than a local plan, so just evaluate your long distance and see if it’s really worth it. As an alternative, buy long-distance service from a reseller like Pioneer Telephone or maybe sign up for a voice over Internet protocol from a carrier such as Vonage.
2. Frequent Flyer Rewards Cards: Many of these benefits have been shrinking. More miles are needed, there are less flight schedules and there might be booking fees. You might also have to pay annual fees that might not make it worth it. A better deal is to get some cash-reward cards instead, suggests CBS. Blue Cash from American Express offers up to 5 percent cash back on purchases.
3. Checking Accounts That Pay Interest: With this deal, you may only get 0.13 percent interest, but it requires high minimums. So forget about interest from checking accounts and look for a no-fee checking account. You can also shop around for banks and credit unions with good deals.
4. Overdraft Protection: This can be just a way for banks to earn some extra cash. Now the government has passed rules that will require banks to get your approval before making you take overdraft protection. An alternative is setting up a savings account that’s linked to your checking. Funds can be transferred if you have an overdraft.
5. Extended Warranty Protection: Experts say DO NOT buy these for appliances and electronics and products don’t usually break within that time frame. You can actually check with your credit card and they may extend the warranty for a year.
6. Going-Out-Of-Business Sales: You may not really be getting a great deal like you expected, says CBS. You might even be better off buying from another business that is trying to compete with them. Check out Price Grabber, Price Spider or Shopping and do some comparison shopping.
7. Paying for a Credit Report: FreeCreditReport.com really isn’t what it says. Order a report and you get a 7-day free trial membership, but if you don’t cancel they bill you per month. Take a look at Annual Credit Report instead. It’s truly free. You can also go to Credit Karma.
8. Fraud Alerts: CBS says do not pay for identity-theft-protection services. You can do it yourself and it’s free. Just review your statements regularly and look for unauthorized charges. Only use fraud alerts if your wallet was stolen or something else happened.