ALL CREDIT CARD

Tips for Rewards Cards, Promo Rates, and Reducing Credit Card Debt

2010-07-01T02:32:00.000-07:00

We all know by now – after feeling the negative impact of the recession, the credit crunch, and the high rates of unemployment – that it pays to be smart about how we use credit and manage our levels of debt. Right before the worst of the global recession and credit crisis hit, for example, the average American consumer was carrying such a large burden of debt that he or she was actually earning less each month that was being spent.

You cannot continue to balance your finances if you are spending more than a dollar for every dollar you bring home from work, but that is exactly what millions of Americans were doing. That’s why the average USA saving rate – which calculates how much money the typical household saves versus how much they spend – was in negative territory when the credit crisis hit. That was the first time it had been in negative territory since the Great Depression, and many economists now blame that lack of saving and obsession with living off of borrowed money for helping to usher in the hard economic times we are all now trying to weather.

But understanding a little bit about the history of economics or the national recession might not make it any easier to manage your credit cards and monthly budget, so here are a few tips that may help.

For starters, if you are accustomed to carrying a balance on your credit card then this year would be a good time to update your strategies for doing that. It used to be that you could carry a higher balance – or a bigger portion or percentage of your credit card balance – without much trouble. But banks and credit reporting agencies have tightened their policies, and now if you continue to carry balances that exceed 25 or 30 percent of your total credit line or limit, your card company might raise your interest rates and fees. A better strategy is to either carry a lower balance of borrowed money or divide it up between two cards. If you have a credit limit of $5,000 on two different cards for example, and an outstanding balance of $2,000 on one of them then you might be better off keeping only $1,000 on each card.

You can, of course, also take advantage of an attractive introductory offer to do a balance transfer at a low or zero percent interest rate. But those offers have also seen some significant changes in recent months. The offers may still have great rates attached to them, but most of the offers are for shorter periods of time. Instead of enjoying the new low introductory rate for the first year you have the credit card, for example, your teaser rate will likely expire after only six months.

In addition to shorter introductory periods banks are also charging customers a fee to do the initial balance transfer, so you might get hit with a fee worth five percent of the amount you are transferring. That could make a balance transfer less profitable for you so you should do the math and crunch the numbers to help you leverage credit card debt in a way that works out best for you. Plus, don’t forget that even if you have a fantastic zero percent rate on your card you can lose it overnight if you just make one late payment.

Even if you mail your payment and it gets delayed en route to your credit card company, or you make an online payment or payment by telephone but you miss the deadline for the transaction to get credited to your account on time, you will suffer the consequences. You may have a zero percent interest rate and if your payment gets credited to your account just one hour too late, that rate could quickly jump to 25 percent or higher. So the first rule of credit card management is to always make your payments in a timely fashion. Forget that rule and it could wipe out all of your other savings strategies instantly.

Other ways to save money in a big way on your credit cards involve improving your credit score or persuading your credit card company to lower your APR. Raise your score by reducing the ratio of your overall debt to your monthly income and then you’ll be a stronger bargaining position because you will become a more preferred and low-risk customer. Then you can phone your card company and ask for a reduction in your interest rate, telling them that if they cannot offer that you then you may need to take your business to their competitor. If your track record of payments is good and your credit score is high enough they may agree in order to keep you on as a customer.

Of course if your credit score is in trouble and you are having lots of problems managing your credit card debt and monthly expenses, you may want to seek help from a non-profit credit counseling service. These professional organizations can show you ways to reduce your debt and get spending back under control, and if necessary they can intervene on your behalf and negotiate with your creditors to get you the debt relief you need.

Advantages and Disadvantages of Student Credit Cards

2010-06-19T05:52:00.000-07:00

Having a credit card is a very convenient way of purchasing things in an instant without having to worry about cash. There are credit card companies that give opportunities to young adults. However, student credit cards come with limitations, even if they can be used just like any other regular credit card.

A lot of credit card companies and banks offer student credit cards and basically request a cosigner who would serve as a collateral. The consigner, who is usually a parent or guardian, would sign the loan together with the student. The consigner has to pay the student’s debt if the student can no longer pay his or her own bills. A consigner with good credit score gives the company peace of mind.

The interest rates of student credit cards are higher than that of regular credit cards to ensure the company. But student credit cards do give benefits to students who make huge purchases. To make a huge purchase, the student should have a good credit score. Credit cards would serve as a starter to build credit and to establish a good credit rating. When the student has good credit score, it is a big plus in applying for loans in the future.

Students who use credit cards should acquire enough knowledge about the risk of using the credit card. At a very young age, students might think credit cards mean free money. This would be very dangerous for them and could lead to bad credit records. The students could even be forced to work harder to be able to pay their debt. Plus, they can no longer apply for loans if they would have bad credit scores. This would force them to get bad credit credit cards. They might be one of those unlucky people who would end up getting credit cards for bad credits.

The company would go directly to the consigner if ever the student is unable to pay the credit card bills. This would affect the consigner’s name as well. A specific budget is highly recommended to avoid overspending.

Credit cards might be good for students because this would help them learn how to budget money. However, they must know and understand the dangers first before getting a credit card.

Find The Right Credit Card In Three Easy Steps

2010-06-19T05:47:00.000-07:00

After years of consumers racing headlong into debt, many people have learned the hard way that not knowing the terms of your credit card agreement can be detrimental to your finances. This is partly banner_comparethe fault of card holders who eagerly applied for and used credit without thought for the consequences. The credit card companies are not without blame as they often used less than forthcoming marketing techniques to target consumers that really shouldn’t have credit in the first place. As a result there are major changes taking place within the credit card industry. Consumers looking for credit in the future will have a harder time finding good credit card offers. Knowing what to look for will be the first step in securing credit in the next few months.

Know Where You Stand- Before you can compare credit card offers you must first know what it is you are looking for in a credit card and the risk the lender assumes when offering you credit. Will you be using your credit cards for all expenses and paying in full each month? If so you will need a higher credit limit and possibly a rewards program to reap the benefits of using your card frequently. Perhaps you are looking to have a credit card as backup in the event you need access to cash in an emergency? Your needs and how you intend on using the card play a big role in the card you select. The next question is are you qualified for the type of card you want? Lenders are raising the standards for potential borrowers and your credit worthiness will play a big role in what type of cards and terms for which you qualify. Know your credit score and any possible negative marks on your history before applying for cards.

Do Not Randomly Apply For Credit- As a general rule people who apply for any and all forms of credit cards are viewed as consumers desperate for credit. Each time you apply for credit, the potential lender pulls your credit report to consider your credit worthiness. Other lenders will be able to see this “pull” on your credit report. Applying for credit too often in a short period of time can lower your credit score and reduce your chances of being approved for any cards. For this reason you should carefully consider all offers and your likelihood of qualifying before applying for credit.

Read The Terms and Conditions- Prior to the recent credit crisis, consumers found applying for and receiving credit cards was relatively simple. Many people accepted offers received in the mail or applied online without fully understanding the terms of the credit card agreement. Credit card offers can seem misleading, however people who take the time to not only read the entire agreement but also understand the conditions will likely find all the information needed to make an informed decision. If you do not understand the language in the fine print- contact the credit card company before applying to reduce the chances of agreeing to terms you do not fully comprehend.

The rules and climate within the credit card industry are changing each day. Consumers who take the time to research, review and understand the contract to which they will be legally bound will make out far better than people who blindly apply for and use credit cards

Seven “Wonders” of the ATM World

2010-06-19T05:46:00.000-07:00

After years of using ATMs I’ve stumbled across several unsolved mysteries I never quite understood. Some are just funny curiosities others I really always wanted to know the answer to. I’ve talked to others and realized I’m not alone in just not along in being confused by these enigmas. I decided to research the answers to each of these questions, so I present to you my seven wonders of the ATM world. With answers!

The Wonders

1. Why do ATMs allow you to enter the amount you wish to withdraw in penny increments? If I type in I want $53.28 it’s not like it’s going to shoot a quarter and three pennies out of the bill changer. Pretty much all ATMs only give out cash in $10 or $20 increments so I won’t even get the three ones! Why not just type in the dollar amount? It sure would be a lot simpler.

2. Why do-drive up ATMs have Braille? This is a common wise-crack many people have made. The rationale is blind people shouldn’t be driving, and there’s warning on most drive up ATMs telling you not to walk up and use them, so why have Braille.

3. What does the Braille say? This isn’t one I’ve heard any one else ask, but I think the better question than why do the drive up ATMs have Braille is what could it possibly say next to those buttons? The function of the buttons change with every screen. In recent years they added headphone jacks that probably solve this problem, but for years they didn’t. So what do the buttons say?

4. What’s with the $2.50 or more fee you have to pay when using an ATM from another bank? I can almost understand the $1.50 fee the foreign banks ATM charges you for using their machine, but why does your own bank charge you another dollar. They don’t charge you when you use that same card to pay for something at a store so why is it any different when you use an ATM. The $1.50 seems high too, especially when you only take out $20. A merchant is only charged around 30 cents on average to make that same $20 purchase on your check card.

5. Is the “Fast Cash” option really any quicker? I don’t think so. I rather skip that screen all together and just go to the 10 key. It takes me longer to search for the dollar amount on the Fast Cash screen and try to figure out which button it almost lines up to than to just type it in. Also the inputs are usually in $20 increments so I have to go to the 10 key anyways to get my $50 out of the machine.

6. Why are PINs 4 digits? It seems backwards that my email provide feels it’s necessary to secure my account with a password that is at least 8 characters, alpha numeric, has at least one upper and lower case letter and at least one number, yet my bank it feels four numeric characters will suffice. It’s 1 in 10,000 pretty good odds of guessing someone’s pin? If you consider that most people use some sort of date as their pin in MMDD format, you’re down to 1 in 365 odds.

7. What do you do if the ATM give you the wrong amount? There’s usually a number to call on the ATM, but how do you go about proving you got the wrong amount.

The Answers

I researched these answer to the best of my ability, however on some of them the answer just isn’t there to be found so I had to go on speculation.

1. It appears to be for consistency sake. When you make a deposit you can enter a decimal amount, so they provide that option for withdrawals as well to keep the input format consistent.

2. The primary reason is legal compliance. The Americans with Disabilities Act requires all ATMs to be accessible by the blind. You may think this is one of those stupid laws in the case of drive-up ATMs, but there actually are some good scenarios where the Braille would be needed. The main one that comes to mind is for when a blind customer is in a cab and needs to get cash. I know I sure don’t want to give my card and PIN to a random cab driver!

3. All ATMs are designed differently but on most the Braille options are just the numeric values for the 10 key and alpha values for the option buttons. For the years blind customers had to memorize the keystroke sequence. Fortunately newer ATMs have headphone jacks which provide audio instructions.

4. In short because they can. Most people are surprised to learn that the primary source of income for many banks isn’t the interest they make from loans or from investment commissions, but from charging fees. Overdraft fees, refinancing fees and yes ATM fees. It has become a significant source of income for banks over the past decade and rates continue to rise. Of course customer frustration with this also continues to rise and many customers have begun switching banks. As a result some banks have stopped charging fees and certain online only banks have gone as far as reimbursing their customers for the fees the other bank charges when using a foreign ATM.

5. It’s not faster for me, but then again I’m pretty quick with 10-key and usually want $50 which is not on the menu. However, not everyone is 10-key proficient and are many are ok with taking a $20 increment. It has an added benefit of encouraging you to get a $20 increment which allows the bank to more efficiently pack the ATM with mostly $20 bills.

6. Old standards are hard to change. Even if your bank decided to install a full keyboard and allow alpha-numeric, you’re going to have a real problem when you go to foreign ATM that still only accepts 4 digit numeric and try to get your money out. What incentive does any bank have to be the first to offer this? There’s also some interesting standards around how ATM pins work that would have to be changed. We’ll talk more about this in a later post.

7. In theory they should be able to count the cash remaining in the machine and find the difference. Even if not, if you’re a good customer and they don’t have any other reason to suspect fraud from you, they’ll usually just give you the benefit of the doubt to keep you as a customer. If all else fails a call to your local TV station should get the problem solved for you.

How ATM PINs Work

2010-06-19T05:45:00.000-07:00

Did you know that your ATM pin is not stored ANYWHERE? That is assuming you don’t have it written down on a sticky pad stuck to the back of your card. You’re probably thinking “It has to be stored somewhere. How else would they know if you enter it correctly? ” Well there’s an interesting story behind that.

Most people think that when you enter your PIN in an ATM, a call is made to some back-end database that compares the pin you enter to the one they have on file, if they match then access is granted. This is close, but not quite accurate.

The problem with having a massive database of account numbers and PINs is that it’s just too risky. No matter what steps you take to secure this list, there’s always the risk someone could get a hold of it, and the effects would be devastating to a bank. So they have a clever system to help mitigate this risk.

Remember when you first got your ATM card and you were assigned a default PIN and told to change it? This PIN wasn’t just some random number the bank assigned you it’s the “natural pin” which holds significant value.

This natural pin is generated by a complex mathematical formula. In short it involves encrypting your card number using a set of encryption keys that your bank keeps extremely secure. Usually these keys are only contained on the one system that generates the natural pin, and on paper in the bank vault. Once that account number is encrypted, it is then converted to decimal format and certain digits are stripped out of that decimalized version, which become the natural pin for that card.

You are then forced to use that ATM card in one of that bank’s ATMs and change your PIN before it can be used anywhere else. When you do this, the PIN you enter isn’t stored at your bank but rather an offset. For example say the natural PIN assigned to your account was 0112 and you chose the pin 1234, the offset would be 1234-0112 which is 1121 and is what’s stored with your bank.

If the banks database of these PIN offsets was ever compromised all that would be gained is your PIN offset of 1121 which would be worthless to the person who obtained it unless they also had the encryption keys and formula the bank uses to generate the natural PINs.

How ATM PINs Work

2010-06-19T05:43:00.000-07:00

Effective Tips on How to Improve Your Credit Score Quickly

2010-06-19T05:41:00.000-07:00

With our economic crisis, many people have incurred a bad credit rating with their credit card companies. Having bad credit score records could have several consequences. You might end up having to get bad credit credit cards. Here are some effective tips to improve your credit score quickly:
1. Learn to manage your own finances

Try your very best to save money as much as possible since you do have bad credit at the moment. Do not make your situation worse. Pay all your bills with cash and do not rely on credit lines. You should learn to save money to pay for debts. Saving money could help you pay dues on time. Self-discipline is necessary to manage your own finances.

2. Pay dues on time

As mentioned above, you must pay your dues on time so that you would not go deeper into debts. If you want to fix your credit, you need to find ways to improve your credit score quickly. You might want to borrow money from your family or friends to improve your credit score standing.

3. Using the old credit cards

You could use your old credit cards if and only if they are still valid. Basically, old credit cards have earlier issuance dates than your current credit lines. You should use your old credit card for smaller purchases every month so that you would be able to pay the bills on time. I am stressing out here that you should be a person who knows how to use his own credit lines in a responsible manner. Most probably, your credit score would improve significantly.

4. Doubtful statements

We cannot deny the fact that errors do happen sometimes. Some items you did not purchase might appear on your bills, which would lead to a bad credit score. Report them as soon as possible if you do not want to get credit cards for bad credits, just like other people did.

5. Always question and report inaccuracies

Even a small inaccuracy could affect your credit card rating. Due dates might be recorded incorrectly, putting you behind schedule. Always check your statements and report any inaccuracies immediately so that these would be corrected.

Retailers “Holding” Your Credit & Debit Card Money

2010-06-19T05:40:00.001-07:00

It’s a common practice for gas stations to put up to a $50 hold on your credit card or debit card when you pay at the pump for your gasoline. It’s also extremely common for a hotel to put a “hold” on funds for staying in their hotel. They take your credit card or debit card during check in, so that they have it on file to cover any “incidentals”, like internet use, phone calls, movie rentals, or in-room bar use. What you may not realize is they can put a hold on $50 to $200 a night or more.

People using credit cards are less likely to be effected by the hold - but if you are nearing your credit card limit and you attempt to use the card at a restaurant later, you could be denied. If you try to avoid credit cards and rely on your debit card (linked to your checking account), you are of course limited to the amount of money you have in your account. Most people would experience some financial difficulty if $200 was held/frozen from their checking account for several days.

When traveling, try to use a credit card to book the room and for the “incidentals” that you won’t be using for the rest of the trip. If you don’t count on that card, you won’t have to worry about the “hold” the hotel puts on your money. If you like to pay for gas at the pump with your debit card, just be prepared to deduct at least $50 from the account, regardless of what you actually put into your tank for a few days until the transaction clears and the appropriate amount is deducted from the account.

There’s an App For That: Find an ATM Around the World

2010-06-19T05:39:00.001-07:00

As the popular iPhone commercials say, “There’s an App for That.”

MasterCard offers a new application used on both iPhone and iPod, which helps cardholders find an ATM anywhere around the world. The application is available at the Apple App Store, and is called The MasterCard ATM Hunter.

Not only does the technology allow cardholders to locate ATMs regardless of their physical location, but the application helps them with more advanced details, as well. Due to the estimated 2 million people per year who contact MasterCard customer service by phone and email for information about ATM locations, the company felt creating the application would be beneficial.

Along with geographic location information, cardholders can now get information about where handicapped accessible ATMs are located, the bank charges at the ATMs nearby, where deposits can be made, which locations feature a drive thru ATM and the hours of operation for all locations on the list. Having access to this information via their iPhone or iPod will reduce the number of customer service calls for the information.

Cash Back Cards: Get Rewards

2010-06-19T05:37:00.000-07:00

A lot of credit card companies offer special programs and discounts to entice more consumers to use their credit cards. When we use their cards, or the ones called cash back credit cards, we get to have discounts for the purchases we make.

Many of these cash back cards could give up to 5% cash back in purchases, mostly at supermarkets, gas stations, and other stores. This is like getting a 5% discount on the things you buy or the services you avail – definitely big savings on our part!

Credit cards also give out rewards points. We get to earn a certain number of points for a certain amount that we used the card to purchase. Through these accumulated points, we get to convert them into items, like cameras or other good looking stuff, depending on how many points we earn.

They also have other programs, like frequent flyer miles. Every time we use our credit card, we get points that we could exchange for free air travel, free products or services, and other fantastic things. These points must be consumed as soon as possible though, since some companies have expiration dates on this or they could cancel them if the card has been inactive for a long period.

Although we would think that we have made the best deal by using credit cards in our transactions, we must not forget our credit limits. Cash back cards are only best for those people who can pay their credit bills in full and on time. Otherwise, we would all be in debt just to get the latest gadget we earned through the rewards system. And to think, it would have been better if we had paid for the thing in cash than have an outstanding amount three times what it would have cost us!

Sometimes, these cards can also have restrictions that only apply to a certain amount of money spent. So, be on a watchful lookout for that and avoid the pitfall. But, if we are resourceful enough, we could actually find rewards cards that are best suited to our lifestyle and thus give us the best deals. It is only a matter of choosing the right one.

So, if you do not pay your bill full in a month, it might be better off to get a non-rewards card with a lower interest rate. Otherwise, it would cost you a fortune just to get that free stuff as a reward and your expenditures would a mile higher than the money you earn.

Seven Tips in Choosing a Great Mileage Credit Card

2010-06-19T05:36:00.000-07:00

If travelling is what you love, then getting a mileage credit card is the best move. With this account, you will be able enjoy perks every time you travel places whether for business or for leisure by earning points.

Bonuses such as trips to exotic places like the Caribbean or a city in the US that you have always wanted to visit will be earned through this points system. When applying for the right charge card, you could even accumulate enough points to be able to take the entire family to a holiday without having to pay any airfare. All you need is to know which airline offers the mileage plastic that meets all your traveling needs.

Here are seven tips on what to look for in getting your own mileage credit card:

• If there is a particular airline that you like, apply for an account with them so you will be able to use their services for free or get travel plans that come with discounts. Just make sure that this airline travels to your favorite holiday destinations, so you would actually be able to get there.
• You can also get one that will let you choose among different airlines for the point accumulation and for the free trip bonuses, if you want to visit places not catered by your favorite airline.
• While there are travel charge cards that do not have annual or membership fees, there are also others that have these. However, these payments would pave the way for you to get more air miles in a lesser amount of time, making them very beneficial.
• If you normally travel for business, be sure to get an airline account that offers a tax deduction for this.
• Another thing is to check the mileage plan of the airline offering the card. Look into expiration of air miles, blackout dates and the possible perks of getting double miles.
• Be aware what types of purchases you can charge to your mileage revolving credit so you can earn points. There are cards that offer additional points when you buy groceries or gasoline using them.
• It is also important to look into the yearly percentage rate after their introductory offer. Most companies offering these cards usually offer a zero percent interest rate on the first year, after which drastic increases will be implemented. You have to know what this means if you usually maintain a balance on your account instead of paying it all off every month.

Techniques on Lowering Credit Card Interest

2010-06-19T05:33:00.000-07:00

Credit card companiesc have long been making all sorts of changes when it comes to their terms and conditions. The sad fact about this is that not too many clients are actually aware that these changes are taking place. This then should serve as motivation to be aware of the existing changes and then contact your credit card company to inquire about such changes. Yes, it would really help to contact your credit card company ?quite effective if you want to reduce your interest rates. And believe it or not, one of the common reasons credit cardholders do not have lower interest rates is the fact that they just neglect their right to negotiate and ask for such rates outright.

But then again, before you do make that call, you better save some cash of your own. This way, it would put you in a better position to get those lower interest rates.

The first thing you need to do is see just where you stand. Make a spreadsheet or even just a list outlining your credit card accounts ?and be sure to include all of them. Include their interest rates and their balances. It is also good practice to sort them from the highest balance to the lowest balance. This way, it is easier to determine the credit cards that are costing you the most.

The second thing to do is to check the competition. Apart from saving money, you should also move on to reviewing other credit card offers that you receive in the mail. Determine the ones that fit your preferences the best and disregard the others. Credit cards that offer 0% interest rates just might be your ideal choice ?that is, if they provide decent terms and conditions.

Third, contact your credit card company. Make sure that you have your lists prepared by the telephone, as well as a notebook and pen. Contact the credit card company that comes with the highest in terms of interest rates and fees. Make sure to ask for a supervisor or a manager because customer representatives do not have the authority to make changes to your credit card account.

Fourth, do not be afraid to issue an ultimatum. Tell your credit card company that you will take your business somewhere else for you can indeed transfer your balance to a new company. Most likely, they will renegotiate your existing terms.

The Return of Cash Back Credit Cards

2010-06-19T05:32:00.000-07:00

Credit card companies are on the hunt again, looking for new customers and using tantalizing cash back reward programs as bait. In this rough economy anything laced with money seems like a good idea. With careful consideration, planning and acknowledgment of the new rules that come with the new cash back, you can use this system to your advantage.

Basically speaking, when credit card companies are talking about cash back rewards, they are saying that they will give you back a percentage of what you spend on certain things. For instance, Discovery card gives a 5% cash back reward on fashion shopping. Lets say you make a $400 purchase: At 5% you get $20 back for buying things you were going to buy anyway. Typically speaking Discovery card actually rotates what goods are available for rewards, but generally rotates between gas, fashion items, and amusement park tickets.

Many credit cards are making new rules to tie with these cash rewards, so be aware. If you pay late even once, you risk any and all rewards you accrued up until that point in time, though some will offer reinstatement fees to get you back into the rewards program. Many have annuals charges, or spending caps that make you eligible, for instance they may require a certain amount spent before its eligible for cash back. Some companies are even limiting what stores qualify for rewards. So if you’re applying for a card with cash back rewards make sure you understand all the terms and conditions, and any penalties that may come up.

There are some things you can do to kind of get an edge on these programs. First and foremost, understand your contract, including penalties for late payments and spending requirements to remain eligible for rewards. Pay on time every month to stay eligible. Try not to keep a balance you can’t pay off in a month, especially since the interest rates are high in the double digits now. Keep in mind that many cards have a maximum they will pay out, so spend what you would need to be eligible for rewards, but then not any higher as there is no added incentive to do so. Lastly watch out for expiration dates and changes half way through your program, as changes can happen with out any prior notice, and most companies have a history of doing so.

Using Student Credit Cards to Build Positive Credit History

2010-06-19T05:31:00.001-07:00

College life might be the most crucial moment of a person’s life. But most of us consider college life the most memorable and exciting one. During this stage, we learn a lot of things that we could benefit from in the future. This is also the time where we start building our own career to push through life. One way to start this is by using a student credit card and building positive credit history.

In countries, such as Canada, the UK, and the US, building good credit is the most important thing in a person’s life. When you have positive credit history, you could buy a house and lot, cars, and many other things that you and your family want and need through loans with the best interest rate. Bad credit history would give you a hard time seeking for a job and would even force you to get bad credit credit cards. Thus, building positive credit history is very essential in your future. So, why not get a student credit card and start as early as now?

To start, find a bank that gives students the opportunity to own a credit card. A lot of banks do offer student credit cards. As a matter of fact, these banks do not give interest for about six to twelve months. This is actually a very good offer because you can buy anything and pay for them without interest.

In addition, most banks offer incentives like cash back for every purchase you make. This means that you would be given reward points for each purchase and with these points collected, you would be able to get various rewards, such as PlayStation gadgets, television sets, or even concert tickets.

By using your card continuously, you are not only taking advantage of the incentives but obtaining positive credit history as well, which is the real incentive. The agency would keep track of your credit history records, like paying your credit on time, having a good experience with your student credit card expenditures, and the like. Remember to use your card wisely and effectively and you would eventually be able to build positive credit history.

Even with all the incentives offered by the banks, do not use your student credit card on useless things if you do not want to be like those unlucky people who end up getting credit cards for bad credits.

Be On The Look Out for “Other Fees” Under New Credit Card Legislation

2010-06-19T05:30:00.000-07:00

The new credit card reform laws will prohibit over-limit fees, double cycle billing, and interest rate hikes when payments are less than 60 days late. But that doesn’t mean you don’t have to watch out for any other fees. To make up for lost revenues, cardholders are likely to see other fees that are not specifically addressed in the credit card legislation.
Possible fees you should be on the look out for include:

* Fees for checking your balance
* Annual fees on credit cards that didn’t charge them previously
* Fees to participate in rewards programs
* Higher interest rates for everyone, regardless of credit scores
* An end to grace periods (interest will be charged immediately after a purchase rather than giving 20 days or so to make the payment before interest is charged)
* No 0% promotional offers

Debit vs. Credit: Which One Should You Choose?

2010-06-19T05:29:00.002-07:00

According to the Wall Street Journal (citing a Nillson Report), there has been a surge in debit card use even while credit card charges have declined. That doesn’t seem too surprising when you think about it; we’re in a bad economy right now, and people want to pay off their credit cards as quickly as possible. Running their balances up would be counter-productive. Debit cards, on the other hand, are as good as cash at most places.

But some debit card shoppers have raised good points. For one thing, you have greater purchase protection when you buy things with a credit card. Some banks don’t go to bat for debit card customers, so any money that exits your checking account might be gone for good.

Debit cards can also get you into trouble if you don’t track your transactions meticulously. For example, while most charges post immediately, others might take days. This can create the illusion that you have more money in the bank than you actually do. And overspending with a debit card can subject you to numerous $30-40 overdraft charges in a single day.

The bottom line: If you pay off your credit card balances each month, you can safely continue to use your cards to collect reward points and other perks. But if you have big credit card balances that you need to pay down, start choosing debit for your transactions.

A Credit Card for Consumers with Bad Credit

2010-06-19T05:29:00.001-07:00

Capital One introduces the Progress Card for consumers with bad credit. It will be available in time for Christmas shopping but beware of the starting interest rate. In addition to no annual fee, cardholders are rewarded for paying on time and at or above minimum payment, by having their interest rate reduced by 5% every six months; but this rate starts out at 34.9%. This rate may seem astronomical but keep in mind, if after eighteen months you’ve been a smart Progress cardholder then your interest rate will be down to 19.9% which is just above average. By the fourth statement of responsible credit usage, some cardholders may be offered an increased line of credit.

To be eligible for a Progress card, you must be over the age of 18, with at least some credit history. If you’ve declared bankruptcy within the past year or have absolutely no credit ratings, then it’s likely your application for a Progress card will be rejected. The Progress card can be compared to a progress report with incentives and rewards for good management efforts.

Although quite out of character for the credit card industry, the Progress card may prove to be a revolutionary concept. With the unemployment rate about to surpass a historically high 10%, there are thousands of individuals desperate to find ways to reestablish their credit. Even though the Progress cardholder’s interest rate is reduced by 5% per month of smart usage, users should inquire of the lowest level the rate will reach. This card can be a wise and cost-effective tool for young adults trying to implement good credit or for those individuals in dire need of an opportunity to rebuild their credit score. The Progress card may be just that opportunity, not available elsewhere.

Restructure Your High Interest Debt With a 0% Rate Credit Card

2010-06-19T05:28:00.001-07:00

Between ballooning interest rates and hidden charges, you’ve finally reached that pinnacle point with your finances when you’re ready to pull your hair out and take the hedge trimmers to your credit cards. If the largest portion of your debt is on high interest rate credit cards, take heart in knowing there is a solution.

Transferring all your debt over to one card with a zero percent interest rate can be one debt-reducing solution; not to mention also a stress-reducer. There are currently two available through Discover: Discover More American Flag card offers 0% interest for twelve months with a 5% balance transfer fee; the Escape card offers 0% interest for six months with a 3% balance transfer fee.

Discover More Card-0% interest for twelve months with 5% balance transfer fee.

After the first year of 0% Annual Percentage Rate, the standard rate of 10.99% - 18.99% will apply. Standard rates depend on your credit history. There are multiple designs to choose from and there are over 50 million Discover Card users. Also, there is no annual fee with the Discover More Card.

Escape Card-0% interest for six months with 3% balance transfer fee.

After the initial six months, the standard APR rate of 11.99-18.99% will apply, according to your credit rating. Although there is only a 3% balance transfer fee during the first six months, there is a $60 annual fee in addition to other fees and charges.

Neither of these options will make your debt disappear but can certainly reduce your stress level. Knowing your monthly payment is paying completely for principal and not interest, is a priceless peace of mind. Which card you choose depends on how soon you can realistically pay off your debt; six months or twelve. For your convenience, you can apply for either the Discover More or Escape Card online or by phone.

Alternatives to Traditional Credit Cards

2010-06-19T05:26:00.000-07:00

With an economy in turmoil, a large percentage of people are no longer qualifying for traditional credit cards. Even those who can qualify are trying to stay away from more traditional credit cards to reduce their personal expenses and debts. Rather than throw your hands up in the air and say there’s nothing you can do, here’s a look at a few alternatives to credit cards that may help you get back on your feet financially.

Credit Union Credit Cards

Studies have shown that credit cards issued through credit unions are far less likely to charge high fees and penalties often charged by banks. They have lower annual fees and longer grace periods to pay your monthly bill than a regular credit card, too.

Not everyone can qualify for a credit union membership or for a credit union issued credit card, but it’s definitely something to consider before signing on the dotted line of a regular credit card.

To find a credit union near you, go to creditunion.coop. The Credit Union National Association can help you find a credit union by calling (800) 358-5710.

Prepaid Credit Cards

On a prepaid card, you deposit the money onto the card and use it until you’ve run out. It’s much like a debit card. There are no interest charges on purchases since you’ve pre-paid for them and you won’t receive any billing statements in the mail.

Prepaid credit cards are not without fees, however. When you first set up the card, you may pay about $10 to open the account. Some prepaid cards charge monthly maintenance fees, transaction fees and then fees each time you put additional money on the card. Most prepaid cards do not report use to the credit reporting agencies, so it’s not even going to help rebuild your credit score.

Prepaid cards are a decent option for someone who needs a card with a Visa or Mastercard logo on it to make a purchase online, by phone, or to rent a car for example – but they’re probably not your best financial option for an all-the-time card.

Secured Credit Cards

To get a secured credit card, you make a deposit to the bank issuing the card – typically between $500 and $1000. Secured cards offer limited credit lines, but they do report your payments to credit reporting agencies which means they will help you re-establish your credit score.

Diffrent types of credit card

2010-06-19T05:21:00.000-07:00

Low Interest Credit Cards

Instant Approval Credit Cards

Bad Credit Credit Cards

Rewards Credit Cards

Cash Back Credit Cards

Student Credit Cards

Business Credit Cards

Balance Transfer Credit Cards

Hotel/Airline Credit Cards

Prepaid Credit Cards

Credit Card Issuers

American Express Credit Cards

Bank of America Credit Cards

Capital One Credit Cards

Chase Credit Cards

Citibank Credit Cards

Discover Credit Cards

Advanta Credit Cards

American Express Credit Cards

Bank of America Credit Cards

chase Manhattan Credit Cards

Citibank Credit Cards

Discover Credit Cards (Morgan Stanley)

FIA Card Services

First Bank of Delaware Credit Cards

First National Bank of Omaha

First USA Credit Cards

HSBC Bank Credit Cards

MetaBank Credit Cards

New Millennium Credit Cards

Pulaski Credit Cards

US Bank Credit Cards

The Faster Way to Paying off Your Credit Card Debt

2010-06-19T05:20:00.001-07:00

You have probably read a lot of articles and material on how you can pay off your credit card debt. But the truth of the matter is, it all really boils down to common sense. The hard part in all of this is how you should put all of the tips you have read about to practical use. And what is even harder is keeping your resolve to stick with the plan. Just so you have a firmer grip on what you should do, here are some tips that can greatly help you.

First, you need to stop using your credit card. If you have more than one, then stop using all of them. Face facts ?if you cannot pay your credit in full every month, then stop using it. Remember that there was once a time when credit cards were not in existence and people were able to cope with their expenses without having to use any of these. This does not mean credit cards are the enemy here because these are indeed useful. But when you are already in debt, then credit cards can be your worst enemies.

Second, do not go for just the minimum payment required. Let us say your debt amounts to $10,000 and your interest rate is pegged at 20%. If you make just the minimum payments, then you will be paying your debt off in roughly 9 years. By then, you will have incurred an excess of roughly $21,000 ?and this is money you could have spent on something or some things more important! Thus, it is indeed better and wiser to pay more than just the minimum.

Third, try to renegotiate so as to lower your current interest rates. Yes, this can indeed be done! Remember that credit card companies would rather that you make some payment because you could very well make no attempt to pay them off at all. Thus, they would consider the option of lowering your interest rates. Try calling your lender and get the ball rolling.

The first two steps are actually the difficult ones. This is because these require a whole lot of discipline, especially if you have become used to the convenience of using your credit cards. Remember that such convenience is temporary for you do have to pay your debt off one way or another. And this is something you cannot forego at all.

What to do With Old Credit Card if Moving to a Better Card

2010-06-19T05:18:00.000-07:00

If you’ve decided to move your balance from one credit card to a new credit card with better terms, you should think about what to do with your old card. Cutting it up with scissors isn’t going to cancel the account or ensure you can wipe your hands clean of responsibility from the old account. Here are some tips for handling an old credit card when you get a new one:

* If you haven’t moved an entire balance from the old card to the new card, call the credit card company to obtain the accurate pay off balance. Make the final payment, then determine if you want to leave the account open as available credit or close it completely.
* If you’ve decided to close the account, listen to the offers presented to you by the representatives when you call to cancel the account. They will most likely attempt to keep your business with better offers and deals. If they don’t offer anything better than the new card, or the offer just isn’t that great – continue to cancel the account and ask for a written confirmation that the account has been canceled.
* I f you decide to keep your old account open but unused – don’t forget to pay attention to the statements that come in the mail. Even though you won’t have a payment due, keep an eye on it to make sure that no one has compromised the account and made unauthorized transactions.

Reality Bites Super-Hacker

2010-06-19T05:17:00.000-07:00

If you thought tales of espionage, double agents and multi-million dollar fraud operations were the stuff of movies then think again. In a plot more complicated than anything Danny Ocean or any of his thirteen cronies could dream up the super hacker, Albert Gonzalez, planned to pull off the biggest credit card information theft in history by stealing a staggering 130 million credit and debit card numbers.

Gonzalez dubbed his audacious scheme “Get Rich or Die Trying” and the 28 year old will certainly no doubt be praying the latter part of his prophecy doesn’t come true. The hacker is set to spend the next 35 years behind bars and faces a fine of $1 million.As if the plot wasn’t sensational enough, the web deviant was reportedly a former government informant advising them on security issue until he as found to be working as a double agent selling vital information to prominent hackers. If this wasn’t reality it would almost be too far fetched to believe but unlike many of the popular Hollywood movies it is unlikely that Gonzalez will see a happy ending.

For those of you who are worried about your financial security then here are some quick tips to prevent you falling foul to criminal like Gonzalez:

Be Vigilant – routinely check your credit card statements each month for any anomalies. The faster you can spot then and inform your credit company the better.

Save Receipts – Make it a standard practice to save all receipts from credit or debit card purchases. That way you can always back-up your claims.

Use Common Sense – Never give your card number out to strangers over the phone (the bank would never need to call you to ask your card number). Use ATMs at banks rather than convenience stores if possible (the security is likely to be better at the bank). Only shop on secure websites with the code “https” in the address bar.

Protect Your Credit Online with This One Step

2010-06-19T05:15:00.000-07:00

If there was a single task you could perform to help keep your credit card information safe online you would do it, right? Think about all of the programs and offers that you hear about everyday that try to get your money. They have their place and can help keep you safe. But you should not use them unless you are first doing this one thing that can help you just as much – and it does not cost a dime.

Change Your Password

That’s it. This one simple task can help keep you from trouble by making it much more difficult to hack into your account. And that goes for all of your online banking activities and accounts.

Changing your password helps if it ever falls into the wrong hands from being used against you. A password is the lock on the front door to your account. It is the most basic of security tools (like the keys that you use on your home).

Change it often. Make it a priority to change your password at least every three months. This will require you to go in to each and every account and change them, but schedule a time just as you would do for an appointment and get it done.

Make your passwords hard to hack. Use a combination of letters and numbers (usually you cannot use symbols). Mix them up and make it very difficult to guess or piece together with information about you. Use a small paper journal with a pen to keep your passwords written down and safe.

That’s all it takes to strengthen your security, your credit and your life. Do it today.

Card-Skimming Crimes on the Rise

2010-06-19T05:13:00.000-07:00

Credit card skimming is a crime on the rise. Simply speaking, card skimming is when someone other then you obtains your pin and your card number and then uses it to withdraw the money in you account or makes purchases with your card number and pin. These type of crimes generally rise with a bad economy. The worst part is that you can be victimized by someone in another country, and they don’t actually need to have physical possession of your card to use it.

Generally speaking there’s multiple ways to get this information, although most involve literally watching you type in your pin and seeing your credit card number. Sometimes cameras are put above ATMs to spy on you will you enter the info, but most often the person is peeking over your shoulder.

Online purchases may also be the target of these thieves, however in ever case you essentially give them the information, and that’s what makes it so scary. Vigilance is going to be the key here. Keep an eye on your card the entire time the transaction is going on, and keep any receipts you receive and destroy them properly.

So a few tips on how to stop yourself from being a victim:

First and foremost, get your money from a teller whenever possible. If your going to use an ATM, use only one you trust, for instance, the grubby looking one in a convenience store, may not be your best choice. Hunch over the screen, cover the key pad with your free hand, and take and destroy your receipt. Look carefully at the swiper on the ATM before sliding your card through, to ensure it’s the one that belongs on the machine and not one installed by a card skimmer.

If your going to be making a lot of purchases online or in a few stores, then you might use a “disposable” credit card you can purchase at gas stations and banks. Load those up and use those online, that way even if it gets skimmed it’s limited to the amount of money you put on the card, and they don’t have access to your actual bank account.