Car Repair Blues

Unfortunately for me, I was reminded of this money-saving tip the hard way last week:

Do you need to get your car fixed or is it due for a maintenance check-up?

Services in Poland are generally cheap(er) than the States, but the parts can be exponentially more expensive.

I deal with two different dealerships for my two POVs and both let me bring in my own parts when I turn the vehicle in to be serviced. I buy the parts off the web (usually Rock Auto or Auto Parts Warehouse) and pay less than what the same parts would cost here. I’ve never once had the dealer as much as blink when I gave them the parts to be installed - and in fact, at least once he was relieved that he didn't have to order the part.

I’ve found the price of labor is generally far less than the same service from a dealer in the States. Where did I find the dealers? Google! Turns out there is a Dodge Serwis Center that you can literally see from my house.

Good thing I have a Dodge!

Read those Polish Websites

Someone passed me a hint for those of us who don't read Polish so well that I had never heard of.
If you type the web address of a non-English web site into Google and click search, the first entry that comes up should be the website that you were looking for - and next to it should be a hyper-link that reads: [ Translate this page ]

I was blown away by the results when I click on the hyper-link. That page, and apparently all subsequent pages on that site, are translated by Google into English.

It's not perfect of course, and for all I know I'm the last person to figure this out - but for navigating web pages to get the info I need - I was really impressed. It certainly beats copying text and pasting into Babblefish.

Update - Turns out there's an easier way to use Goole Translate - Go to the website:
http://translate.google.com. From there you can eitehr cut and paste the text, or you can paste the url in directly. I think it saves a step.

Free Money

...Kind of.

I'm not usually one for get-rich-quick schemes - but the internet bank ING Direct has a special offer out there for new customers that they will deposit an additional $25 in your account if you open up a new account online.

I saw the ad in Kiplinger's, and tried it out just for fun (I opened one up with $5 - I still expect my free $25 deposit!). It does take a few minutes of your time, but I figured it evened out to me earning two bucks a minute. And who knows - their rates are good, might want to keep some cash in there.

Again - This will not make you rich, but its like finding money under the couch cushions.

Oh yeah, unfortunately you have to have a code - and it's only good for a one-time-use.
So far I've found them in Kiplinger's. If you can get a hand on a recent copy check out the fold-out ING ad.

I've got one Reference Code that hasn't been used: KP424/5CYFFYRG
It's only good for one use - so when it's gone, it's gone.

You can tell that I'm killing time at half-time on a Sunday Night - The Packers are not doing well....

Update: Here's another code in case the first one is already used: AMZ228/K4P9KSCZ

Free Credit Score - but only until 24 September!

Since I don't have any readership yet, this seems a bit premature (and outdated already) but there is a class-action lawsuit against Trans Union (The Credit Agency) for just about anyone who's used a credit card in the last 20 years. The details are here: https://www.listclassaction.com/

There is an option for "Six Months of Credit Monitoring and a Potential Cash Payment (If Available)" but I wouldn't hold your breath. You probably aren't getting back any cash, but at the very least, it's a simple, free way to get your credit score - if you're interested in things like that.

And now we’re live!

This is still a work in progress. And since this is day one – and obviously I have no readership yet, I feel like I’m talking to myself.

This is a blog for saving money. I am trying to gather up a lot of info and put it together in one place – hopefully it will last beyond my time in Warsaw.

So if you’re reading this – don’t hesitate to leave a comment. I will post a major theme every other week, and shorter, hopefully funnier, posts as they pop up and as I think of them. Don’t hesitate to share if you have any advice on how to save money – in Poland or wherever you are posted!

Thanks for looking
Dylan

Using Credit Cards Overseas: Finding a card that actually pays you back

My last column I left off with a reference to finding the perfect credit card with the lowest foreign currency transaction fees and big cash-back bonuses. I raised the question about the cash back program because I have a USAA MasterCard that I have used for many years only because they offered me a big fat refund at the end of the year. They’ve always charged me 1% for the currency transaction fee, but they gave a 1% rebate every January – so I always thought I was doing good to break even. Turns out, I was not getting the best deal and I hope the below helps you to find a better card as well.

“Gas Rewards” are big buzzwords in the credit community in the US. This works to our advantage overseas because we pay twice as much for gasoline here than what we would in the States – so your gas rebates are twice as much – but for those of us lucky enough to get a VAT rebate, we are effectively getting refunded what amounts to a little over 4% on net gas purchases. Admittedly my college math consists of “Math for Liberal Arts Majors” but I’m pretty sure that’s a lot better than paying a 14% fee on your net gas purchases.

If numbers make your eyes glaze over skip this paragraph – but if not check out this personal example: ACA tells me I spent $853.64 (gross) on gasoline in June of this year. They took 7% of the gross (or 14.36% of the net) and charged me for $59.76 in fees for that month. If I used my Capital One card that offers 2% back on gas purchases, Capital One would have paid me 2% of the gross (or roughly 4.1% of the net) which would have put $17.07 in my pocket, just for that month. Projected over 12 months - instead of paying $717.12 per year for the use of a card, I could be getting back $204.84, just for gas purchases – to say nothing of the amount I save on foreign currency transaction fees and 1% back for everything else I buy. Caveat - This will not make you rich, but it might make you feel better when you fill up your tank!

Finding a credit card that gives you the most back can be tedious and time consuming. I’d suggest first checking with your bank(s) and then ask friends and colleagues what they use, and of course – shop around. I found the one I’m using now because a colleague in my office had that card and mentioned he was never charged an international transaction fee (which I really thought was standard practice) – So that’s where I started. After a thorough grilling of their customer service rep (who still gave me bad information), I ended up with Capital One’s No-Hassle Cash Rewards Card. Frankly the card’s name is misleading (at best – customer service is horrible), but overall the deal on gas and groceries is as good as anything else I’ve found – at least for me and my spending habits.

You have to read the fine print with every single credit card though – Chase has a MasterCard that pays you 5% back for all purchases at a BP Station which could be an awesome deal, but the currency transaction fee is 3% so it’s no more advantageous than most 3% reward cards – and you can only get the big cash reward at the BP Station which means you have no choice where to buy gas. Plus the fine print says “at participating stores only”, so what are the odds that the BP station in Ursynow is a participating station? Pentagon Federal Credit Union has a card that gives you 5% back for gas purchases (which again, would be awesome) but only for purchases made “at the pump” and not inside at the register – not applicable at all to us overseas so that would be a not-so-great deal.

There are an emerging number of cards that give you rebates on gas and groceries. That “No Hassle Cash Rewards” said they offered 2% cash back for groceries as well and to test that I went to nine different grocery stores in Poland and the Czech Republic, a military commissary in Germany and our ACA commissary. I was surprised to learn that 6 out of 9 stores are listed properly to get the premium rebate of 2% back. It seems Mokpol Stores, the API Delikatesy in Konstancin and the ACA commissary are not listed as grocery stores with Mastercard, but you still get back 1% - which because they don’t charge a foreign currency transaction fee, makes it okay to me.

A final note – sometimes it never hurts to ask about additional discounts from your credit card company. Capital One will give extra discounts to active duty military like a reduced interest rate, no cash advance fees no annual fee and no late fees – all you have to do is ask. I don’t know if they would extend the same benefits to FSO’s overseas, but it still wouldn’t hurt to ask. Of course it takes a little common sense here – USAA isn’t going to give you a military discount and the State Department Credit Union probably isn’t impressed that you are a diplomat working overseas – but Chase might be… You never know unless you ask.

All of the above sounds daunting, but I’ve gotten up to 1,000 bucks back from a single card before and that’s kind of nice when it happens. It’s just like VAT receipts – day to day its small potatoes – year to year its a healthy chunk of cash.

So – now that you know which cards charge the most for currency transaction fees and you know what to look for in a card that pays you back, look around and see what’s out there. I had this strange loyalty to my USAA MasterCard for years thinking that I owed them my business. When I realized they had been offering lots of deals and incentives to my wife for her to use her credit card, but not to me, who actually spends money I saw that relationship for what it is – just business. Getting a card with a behemoth company like Capital One doesn’t feel so dirty when I’m getting money back every month!

Using Credit Cards Overseas: Foreign Currency Fees…What a Pain in the gas!

Not too long ago I received an invitation for an American Express Platinum Card. I’ve been an Amex Customer for years and apparently all my good payment history has paid off in the form of an offer for a snooty credit card with a $450 annual fee. After the ego trip wore off, I thought to myself “Who in the world would pay $450 in annual fees just to carry a credit card?” Then I got my first gas-card bill from the ACA with the new fees... For my family, at almost 60 bucks a month (at least the first month), I would pay about $717 over the course of the year in credit card fees. Somehow the $450 platinum fee looks like a bargain.

So I turned in my Shell card and started looking for an alternative. I set out with two simple goals: Avoid paying fees and find a card that gives me the most money back. What I discovered was the way I had been using credit cards overseas was not ideal, and along the way I was reminded of some little hidden charges that sneak up on those of us who use them outside the US. This article is focused on some fees you may not be aware that you’re paying and next issue’s article will be focused on finding the right credit card that pays you money back.

Almost all credit cards charge sort of a foreign currency transaction fee (unless of course you’re making purchases in your own currency – in your own country) but I found that some companies hide the fees in your account’s paperwork, which seems unethical. If you’re not positive the amount you’re paying you should ask, and then you should double check to make sure you’re not getting cheated. The most you should be paying for a currency transaction fee is 1% because that is the baseline by Visa/MasterCard. Anything more than 1% is going straight to your bank’s pocket.

Here’s a quick list of some major banks and their currency conversion rates:
Capital One 0%**
Discover 0% - Not Generally Accepted Overseas
Wachovia 1%
Washington Mutual 1%
SDFCU 1%
Pentagon/Navy FCU 1%
American Express 3%
Bank of America 3%
Chase 3%
Citibank (Citi Card) 3%
HSBC 3%
U.S. Bank 3%
Wells Fargo 3%

**I was real skeptical because Capital One uses a different method for computing exchange rates than other cards, but through my own research (with the help of the commissary) I’ve found they do have the best exchange rate – hands down.

While on the topic of foreign currencies – this was hard lessons learned: I have found in a few places in Warsaw (recently Go Sport and Oh Sushi!), they may offer to charge your credit card in Polish Zloty or USD (in some cases Euro). You should always, always, always choose Zloty (or whatever the host-nation’s currency is). Anything else and you will pay twice for conversion – You will pay a less-than-favorable conversion rate by the local merchant’s bank, and then your bank will charge you a fee for making a purchase (even in dollars) outside the US. The only exception overseas I’ve found is on a military base where you don’t pay any fees when the currency is dollars.

Here are some questions you should know the answers to – about every one of your credit cards you use overseas:

-What is the total rate charged for a Foreign Currency Transaction fee? Anything above the 1% charged by MasterCard and you can do better.
-What exchange rate are they using to convert currencies? They should be using the International rates published in the Wall Street Journal (anything else is worth double checking).
-Is there a cash-back program and is it applicable to purchases made in other currencies?

Three percent might not sound like that much to pay in currency fees, but since most of us would be thrilled to get a 3% raise in January I think it’s worth saving that money. Bottom line – Check your current credit cards to see if they’re gouging you – If you’re paying over 1% consider getting another card. And never, ever pay more than you have to. Even for a platinum card!

Post One: Opening a Polish Bank Account!

As I lie awake in bed recently with fear of how much the new bill-paying fees were going to affect our family budget, I really started to wonder – is there a better (read: cheaper) way to pay my Polish Zloty-based bills? Since I pay a hefty preschool bill, which theoretically would land me bill-payment fees of $60 per payment, I reasoned there had to be a cheaper way.

This is what I found: You (yes you) can open up a local bank account in Polish Zloty for as little as 19 PLN a month and use that bank account to make unlimited bank transfers and unlimited bill payments. So with a minimal amount of extra effort I can now pay all of my bills for a flat-rate fee of 19 PLN a month.

Here’s what I did: I took a native Polish speaking colleague along with me for a sanity check, but if you speak passable Polish, or are patient while the bank finds someone who speaks passable English, all you need is a passport and about a half an hour (or less) of your time to open an account; along with your spouse if you want them on the account as well. You’ll walk out with a bank account number and you’re on your way. Note: I used the bank closest to the Embassy, but I’m told if you make any effort in shopping around you can easily get a cheaper rate (especially if you’re willing to put a few zlotys in the account). I’m told Citibank has an excellent English website, but I think I’ll stick with the bank across the street.

Here’s what I’m doing now: I use this account to pay my phone bill and my bi-monthly preschool-bill. At present I’ve paid two bills by phone, which is so easy because the only Polish you need to know is when to press “7” to get an English-speaking bank representative. I also use this account as a way to dump my spare zloty change once a month (you know – all those grozy that pile up) and the bank seems happy to get it (at least to my face). Getting money into the account seems to be the only problem. To avoid the fees and hassles with transferring money from a USD bank account, I am changing my banking information with the VAT Helpdesk to have our quarterly VAT payments made here. I will use that money to pay subsequent bills – and of course, you can always make a PLN deposit whenever you need to. I’ve found it would actually be cheaper (and easier) to make a withdrawal from the ATM that’s sitting in their bank, and then deposit that into my Polish Bank Account – rather than try to transfer money across the Atlantic.

Just recently I received in the mail the documents necessary for paying bills over the internet. I made a phone call, spoke to a guy in English – and now I go to the English website to set up payees and make payments. It’s actually easier than the phone because you need no Polish at all for that part. It’s also worth noting that it appears easier to make a payment via the Polish website for me than using my USAA bank account to pay stateside bills.

Another advantage (this is my personal theory rather than hard facts) is that this can actually protect you from exchange rate losses as the dollar gets stronger against the zloty. Since my VAT deposit will be in Polish zloty and I pay my bills in Polish zloty – there is not an issue of having paid for something at 2.01 but being reimbursed for said item’s VAT at the new-found strength of 2.25 six months later. Now this would understandably have the opposite effect if the dollar really tanks - but then we’ve got bigger worries anyway.

So this is just my experience in getting and using a local bank account. For me, paying the phone bill takes far less time than going to the post office, which used to cost me 2.50 PLN and up to a half an hour of my time on my lunch-hour. Now I get the bill, make a five minute phone call and the deal is done. Next month I’ll try the internet.

Oh yeah – and included in that 19 PLN per month is a Polish Visa Check Card that I can use anywhere in town as a Visa debit card, or as an ATM card for that account. That will be great if I ever get to the point where I don’t have that massive preschool bill to pay anymore.

So will my experiences work for you? I’m not sure. It’s a cost vs. demand thing. When I was paying $6 a pop to make bank payments it wasn’t a big deal. Now that I find I can pay about $9 a month and make as many payments as I want – I’m much more motivated. Frankly – I don’t know why it took me so long to get a local bank account in the first place.