All About Credit Cards

TDS on Interest, Commission & Brokerage

2008-11-14T07:22:00.000-08:00

TDS on Interest, Commission & Brokerage
M. George Korah FCA, DISA

In this paper, we will discuss the Tax deduction provisions on interest payments as well payments which are in the nature of commission or brokerage.

First let us look at interest payments. When you deposit money with a bank, then the bank pays you interest. This interest could be paid out monthly, quarterly, half–yearly or annually. In the case of cumulative deposits, the interest as you know, will be paid on the date of maturity of the deposit, along with the money that you had deposited.

Whatever be the method or period of payment of interest, the Bank will calculate the total interest due (or paid) to you in one financial year (1st April to 31st March). If the amount exceeds Rs. 5,000 then the Bank will deduct tax at source from your interest payment as per the provisions of section 194 A of the Income Tax Act. For payments made to Resident individuals the rate at which they would deduct tax is 10.3 %.

You may have received an intimation from the Bank, before the financial year end, enquiring whether you plan to submit Form 15 H or in the case of a Senior citizen, Form 15 G, to avoid TDS on your interest. Please note that these Forms are like affidavits, wherein you are declaring that you do not have taxable income and hence any wrong statement could get you in trouble. You should be aware that, one copy of this Form will be sent to the Income Tax Office, so sign this Form, only after making sure that you have complied with all the requirements of these Forms.

If the Bank receives this Form from you, then it will not deduct any tax at source from your interest.

The limit of Rs. 5000, beyond which the Bank will deduct TDS, has now been revised to Rs. 10,000 from financial year 2007-08 .This has been one of the welcome changes of Budget 2007. Hence if your term deposit fetches you 10 %, then you can safely put Rs. 90,000 in a Branch of a Bank, without facing the TDS cut.

Please note that this limit is for every branch & not for all branches of a bank put together. Therefore if you want to deposit Rs. 5 lakhs in the same Bank, without facing the TDS problem, you will have to deposit this money in more than 6 branches, making sure that any single deposit does not give you an annual interest of Rs. 10,000 or more.

Also keep in mind that interests on Recurring Deposits & Savings Bank accounts do not attract TDS.

Besides Banks, companies & partnership firms are also required to deduct tax at source from interest payments made by them. Normally individuals & Hindu Undivided Families (HUF) are not required to deduct TDS from interest payments made by them. If, however, they have crossed the turnover limits, stipulated under section 44AB, then they are also required to deduct tax at source from interest payments made by them.

The limit, like in the case of Banks is Rs. 5000, below which no TDS is required. However the increase in this limit to Rs. 10,000, brought about by the recent Union Budget, is not applicable to payments made by non-banking entities.

Partnership firms, who pay interest to their partners, need not deduct tax at source.

We shall now examine the tax provisions relating to TDS from Commission or Brokerage.

ABC Pvt Ltd has recently bought some land to construct it office. In connection with this purchase it has to pay Rs. 1.50 lakhs as commission to the broker Mr. Iqbal. Does the company have to deduct any TDS on such brokerage payment? The answer is an emphatic ‘Yes’.

Commission or Brokerage has been defined as below –

Commission or Brokerage includes any payment (not being insurance commission) received or receivable, directly or indirectly, by a person acting on behalf of another person for services rendered (not being professional services) or for any services in the course of buying or selling of goods or in relation to any transaction relating to any asset, valuable article or thing, not being securities.

Who is responsible for tax deduction –

Any person (other than an individual or HUFs) who is responsible for paying commission or brokerage to a resident shall deduct tax at source.

Individuals & HUFs who are hit by the provisions of section 44AB in the preceding financial year are to deduct TDS from Commission/Brokerage.

When tax has to be deducted –

Tax shall be deducted at the time of credit of such income to the account of the payee or at the time of payment of such income in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier. Where any income is credited to any account, whether called “Suspense account” or by any other name, in the books of account of the person liable to pay such income, such crediting shall be deemed to be credit of such income to the account of the payee.

Basic exemption

Payment in excess of Rs. 2500 is subject to tax deduction – No tax is deductible if the amount of commission or brokerage paid/credited during the financial year does not exceed Rs. 2500.

Rate of TDS

The rate of TDS including educational cess will be 5.15%

Hence from the commission due to Mr. Iqbal, the company ABC Pvt Ltd will have to deduct an amount of Rs. 7725 ( 5.15% of Rs. 1.5 lakhs) & pay him only the balance.

Entry in the Register of Business Enterprises

2008-11-14T07:10:00.001-08:00

All limited liability companies or companies having more than one owner are required to register in the Register of Business Enterprises.

Among several reasons, one important one is to maintain a correct record of people that may be held responsible for actions in the name of the company. In self-employed businesses, there can be no doubt as to who is the responsible person. Therefore, such enterprises are exempt from the general registration duty.
Only if the self-employed business trades goods or has more than five employees, is registration required. Other self-employed businesses may register at their own will.

An increasing number of banks, insurance companies and other organisations have made it a rule not to enter a deal with a new associate before they have made sure the company is registered in the Register of Business Enterprises.

Companies who want to do international business will experience that the foreign counterpart will request a company certificate from the Register of Business Enterprises before they will commit themselves to an unknown customer or supplier.

Registration in the Register of Business Enterprises is done by submitting the Combined register return, usually together with the registration in the Central Coordinating register of Legal Entities. If you are already registered in the Central register of Legal Entities, mark the return accordingly.

Note the rigid requirements with respect to signatures and additional information for returns to the Register of Business Enterprises.

When registering, the planned name of the self-employed business must include the owner’s family name, with or without first name(s). For other forms of business entities, you must in addition state the type of organisation (e.g. AS for a limited liability company or ANS for unlimited liability companies, see the Norwegian Company Act, no. 78, §2-2).

Before registration, you are advised to check if the planned name is ”available” by contacting the Register of Business Enterprises in Brønnøysund. Your right to a name of the business is obtained either by starting to use the name or by an entry in the Register of Business Enterprises.

If the name of the business enterprise states the name of a person or describes the nature of the business, the enterprise must be connected to the named person or type of business. If the initial conditions change significantly, the name should be changed accordingly.

How to Find Foreclosure Listings

2008-11-14T05:48:00.001-08:00

Instructions
Things You’ll Need:
Flyers
Step 1:
Locate paid subscription services online that provide updated listings on a daily or weekly basis, such as RealtyTrac, ForeclosureListings.com and FreeForeclosureDatabase.com (see Resources below). You can locate records across the United States, which is particularly convenient if you plan to invest in more than one state.
Step 2:
Review public notices, which are usually found at country courthouses around the country, on a regular basis. Not only will you find foreclosure listings, but you'll also get information on defaulted properties (the step before foreclosure). If your area has a fairly large newspaper, public auctions and information on defaulted properties are listed in the Classifieds or Real Estate sections.
Step 3:
Hand out and post flyers that let readers know that you are interested in distressed properties. They should be posted in high-traffic areas such as busy supermarkets, coffee shops and gyms where your message can be seen by a large number of individuals.
Step 4:
Seek out the foreclosure lists of banks, mortgage companies and other lenders. Many lenders have online sites with this information, while others have in-house departments that you will have to contact by telephone or in person. As these are the contacts that will have the information before anyone else, you should establish relationships with several of these people so that you'll have a leg up on the competition.
Step 5:
Network with qualified real estate agents who are knowledgeable about the foreclosure market. Some of these agents have relationships with various lenders and have information on foreclosure listings before they are made public. You may have to pay commissions, but it is well worth it.
Step 6:
Join professional organizations and let your fellow members know that you are in the business of purchasing foreclosures. Once you make your associates aware, you may find that they will direct business your way. You can reward them for their tips by offering them a finder's fee.
Step 7:
Place advertisements in local newspapers in the real estate section. Let readers know what you are interested in purchasing foreclosures or pre-foreclosures, and give them your contact information.
Tips & Warnings
It's a good idea to have a business phone line and email address so that you can separate your business and personal communications.

Learning Fixed Deposits(FD) Interest Rates in Indian Banks

2008-11-14T05:43:00.001-08:00

What is Fixed Deposits(FD)?

Fixed Deposits (FD) is a system where a person – known as a depositor – deposits a lump sum amount of money in bank at a predetermined fixed period. The longer the period of the fixed deposit, the higher is the interest rate the depositor earns. The number of days an amount may be entered into a fixed deposit scheme ranges from 15 days to 5 years. After maturity period of the fixed deposit, the depositor then acquires the lump sum amount equal to his principal deposit, plus interest thereon.

The Reserve Bank of India(RBI) ensures an effective policy and restriction for the safety of these bank fixed deposits. Interest rates on fixed deposits differ from various banks depending on the maturity periods and the amount of deposits. The amount of fixed deposits range from Rs.10 to as high as 100 million rupees. Interest rates for bank fixed deposits are dependent on the amount of the investment and its maturity period which ranges from 4 to 10 percent. (Effective October 1st 2008, State Bank of India (SBI) offers 10.5% for normal FD and 11% for the senior citizen). Below is a presentation of the interest rate a fixed deposit can yield for a given period of maturity: These rates taken while writing this article. Period of Maturity Annual Interest Rate (in percent)

Interest Rates for Fixed Deposits(FD)

15 - 29 days 4.00%

30 - 45 days 4.75%

46 - 90 days 5.25%

91 - 120 days 6.00%

121 - 180days 8.00%

181 - 364 days 8.50%

1 year – not more than 2 years 9.00%

2 years – not more than 3 years 9.25%

3 years – not more than 5 years 9.50%

Above five years 10.00%

All bank deposits in India are covered with insurance by the Deposit Insurance and Credit Guarantee Scheme of India and is, therefore, considered to be the safest investment form a depositor or investor can work on. Opening a Fixed Deposit Account is like opening a savings account after complying with the requirements where a deposit receipt is given to the depositor and is subject to updating within the period of the fixed deposit. It is necessary to update the account to verify if all transactions have been accounted for correctly.

Ring Insurance

2008-11-14T05:23:00.000-08:00

What It Is
Ring insurance is best purchased as an extension (also called a "rider") for your renters or homeowners insurance policy. Renters and homeowners insurance policies cover the stuff in your home, but only up to a certain dollar value. Expensive, special items like engagement rings, art, and electronics are guaranteed through scheduled personal property coverage -- an insurance policy extension that covers particular items.

Who Needs It Most
Any newlywed with jewelry that has high material or sentimental value -- whether your wedding and engagement rings cost $500 or $50,000, an insurance policy is a way of honoring not just their financial value but what they represent. The sentiment behind your rings is priceless, but the rings themselves can be replaced -- if they're insured -- in the event that something happens to them.

How It Works
You'll need to provide your receipts as well as an appraisal (which costs a small fee; you can get an appraisal from a certified gemologist). And remember: If you move after the wedding, make sure your "ring rider" follows you. Some couples have the ring insured at the bride's house (or her parents') before the wedding but forget to add it to the policy for their new home when they move in together.

If you don't have a renters or homeowners policy, there's an alternative way to insure your ring: Certain insurance companies offer policies through jewelers on individual pieces -- ask your jeweler if they'll work with an insurance company to offer ring insurance. These kinds of policies can vary widely company by company (usually a jeweler will offer a policy that's underwritten by smaller company), so ask specific questions about the level of coverage provided.
Questions to Ask
Is the ring covered if you lose it accidentally, or only if it's stolen?
How will the company replace the ring -- with a check? Or will they require you to purchase a replacement through a specified jeweler?
What if it's a vintage ring or other unique piece? How will the quality and size of your diamond -- and that of a replacement if needed -- be documented?
Is the ring insured to full cost or a fraction of it?
How will you need to prove the ring vanished if you make a claim?
Are there any circumstances that aren't covered? (What if your ring flies off at the circus and gets trampled by elephants, for example?)
Average Cost
The yearly cost to insure your ring is $1 to $2 for every $100 that it would cost to replace. In plain English, this means that if your ring costs $9,000 to replace, you might expect to pay between $90 and $180 per year to insure it -- or slightly more in cities where the risk of theft is higher.

How to Get Your Cost Down
Buy a vault or safe to keep jewelry in when it's not being worn. (You can also keep paperwork like appraisals in the safe, so you'll always know where it is if needed.)

What to Remember (If You Only Remember One Thing)
When you shop for a "ring rider" policy, make sure to read the fine print: A good policy will cover every potentially ring-threatening situation -- from theft to damage to accidentally dropping it in the garbage disposal.

Business Definition for: Double-Declining-Balance depreciation method (DDB)

2008-11-14T05:20:00.001-08:00

Double-Declining-Balance depreciation method (DDB)

method of accelerated depreciation, approved by the Internal Revenue Service, permitting twice the rate of annual depreciation as the straight-line method. It is also called the 200 percent decliningbalance method. The two methods are compared below, assuming an asset with a total cost of $1,000, a useful life of four years, and no salvage value .

With straight-line depreciation the useful life of the asset is divided into the total cost to arrive at the uniform annual charge of $250, or 25% a year. DDB permits twice the straight-line annual percentage rate-50% in this case-to be applied each year to the ndepreciated value of the asset. Hence: 50% × $1,000 = $500 the first year, 50% × $500 = $250 the second year, and so on.

A variation of DDB, called 150 percent declining balance method, uses 150% of the straight-line annual percentage rate.

A switch to straight-line from declining balance depreciation is permitted once in the asset's life-logically, at the third year in our example. When the switch is made, however, salvage value must be considered.

Start Your Own Bakery...

2008-11-14T05:11:00.000-08:00

BAKERY
BabyCakes NYC
248 Broome Street
Lower East Side

When Erin McKenna was diagnosed three years ago with allergies to wheat and dairy and she decided to give up sugar, all she really wanted was a cupcake. Magnolia was off-limits, along with just about every other bakery in New York City. So she decided to open her own. “I wanted it to be really adorable and scenic and big on atmosphere,” says Erin, a California native, now 30. “A destination place.”

BabyCakes was born in August, a button-cute shop dominated by a clanging vintage cash register. Erin, an aspiring stylist, put the word out to well-connected fashion friends, and before long, her vegan treats had a following among customers of all dietary persuasions.

Behind the brisk business and gee-whiz décor, however, lies a tale of trial and error. Erin got a deal on a Broome Street storefront but made the mistake of signing her lease before a $120,000 bank loan came through. It didn’t. Milking her mother’s life savings and calling every well-to-do friend she could find, she ended up with $12,000, just enough to open her doors and keep recruiting investors (she has nine now). She says she’s not in debt, but she is one plumbing problem away from disaster (or a tenth investor).

She keeps staffing costs low by logging twelve-hour days. Her assistant baker got 5 percent of the company for a summer’s free labor and now receives $600 a week. Erin’s youngest sister works full time for $500 a week. All are paid in cash. (“What are books?”) Erin designed the staff uniforms herself ($125 each).

Stitching together a profit has proved more difficult. She says she’s $500-a-month shy of breaking even, owing to high-cost ingredients like cold-pressed coconut oil and agave nectar. It costs her $2 to make the cupcakes she sells for an average of $3; a healthier markup would be 100 percent. Coffee is more profitable with a 500 percent markup, but BabyCakes is equipped to sell only a few cups an hour. Her shortest route to a windfall is heading into wholesale, but she says it won’t happen “for the next five years.”

more here

How does a credit card work?

2008-11-14T04:54:00.000-08:00

A credit card is a safer and more convenient alternative to cash. However, the simple act of paying for products and services with a credit card is supported by an elaborate behind-the-scenes system.

When you apply for a credit card, your application is carefully screened by the bank you apply to. A credit limit is worked out for you, based on your financial capability, educational qualifications, age etc. The bank that issues you the credit card is called the issuing bank.

At the heart of the credit card business is a mutually beneficial arrangement between the issuing bank and a host of businesses called merchant establishments through international networks such as Visa and MasterCard. Merchant establishments could be hotels, shops, travel agents or any place where transactions are made. Banks that enroll merchant establishments are called acquiring banks.

Your credit card is valid in any merchant establishment that accepts your network (MasterCard, Visa, et al) even if it has been enrolled by an issuing bank other than yours. Most Indian card issuing banks are part of either the MasterCard or Visa network, or both. There are other credit card networks like American Express and Diners Club too.

This network is at the heart of any credit card activity. When you use a card at an establishment to purchase a product or service, your card is swiped on a swipe-machine. The swipe machine is connected to a central computer belonging to the network, which in turn is connected to all issuing banks. The system verifies with your issuing bank whether you have sufficient credit to cover the purchase in a few seconds and approves or rejects the transaction. As soon as the approval comes through, you are asked to sign the charge slip. The merchant then verifies your signature with the one at the back of the card.

The charge slip is then forwarded to the acquiring bank, which then settles the transaction with the merchant. The issuing bank also proceeds to bill you for payment as per the cardholder agreement. The acquiring bank will settle the transaction with your issuing bank through the network.

From the merchant establishment's point of view too, the credit card is a safe and efficient payment mode and brings more business. The merchant establishment pays a fee to the bank that enrolled it for the service. From the bank's point of view, credit cards benefit in two ways: Banks make money through fees from merchant establishments and the higher-than-normal interest rate paid by card holders for the balance on their cards.

You can save on the interest cost if you are prompt in paying the balance by the due date. Credit card users get a free period of credit before they reimburse the credit card issuing bank. This may vary from 15 days to 40 days depending on the issuing banks. When you use a credit card, you have the option to pay just a part of the total amount spent and carry forward the balance. In such cases, you will have to pay interest on all your purchases without any free credit period.

Choosing A Credit Card: The Deal is in the Disclosures

2008-08-20T00:13:00.000-07:00

A credit card lets you buy things and pay for them over time. Using a credit card is a form of borrowing: you have to pay the money back.

When you are choosing a credit card, there are many features — and several kinds of cards — to consider: Fees, charges, interest rates, and benefits can vary among credit card issuers. As a result, some credit cards that look like a great deal at first glance may lose their appeal once you read the terms and conditions of use and calculate how the fees could affect your available credit.
Credit Card Terms

Important terms of use generally must be disclosed in any credit card application and even in solicitations that don’t require an application. Here are the most important terms to understand — or ask about — when you are choosing among credit offers.

Fees. Many credit cards charge membership and/or participation fees. Issuers have a variety of names for these fees, including “annual,” “activation,” “acceptance,” “participation” and “monthly maintenance” fees. These fees may appear monthly, periodically, or as one-time charges, and can range from $6 to $150. What’s more, they can have an immediate effect on your available credit. For example, a card with a $250 credit limit and $150 in fees leaves you with $100 in available credit.

Transaction Fees and Other Charges. Some issuers charge a fee if you use the card to get a cash advance or make a late payment, or if you exceed your credit limit.

Annual Percentage Rate. The APR is a measure of the cost of credit, expressed as a yearly rate. It must be disclosed before your account can be activated, and it must appear on your account statements.

The card issuer also must disclose the “periodic rate.” That’s the rate the issuer applies to your outstanding balance to determine the finance charge for each billing period.

Some credit card plans let the issuer change the APR when interest rates or other economic indicators — called indexes — change. Because the rate change is linked to the index’s performance and varies, these plans are called “variable rate” programs. Rate changes also can raise or lower the finance charge on your account. If you’re considering a variable rate card, the issuer must tell you that the rate may change and how the rate is determined.

Before your account is activated, you also must be given information about any limits on how much your rate may change — and how often.

Grace Period. A grace period, also called a “free period,” lets you avoid finance charges if you pay your balance in full before the date it is due. Knowing whether a card gives you a grace period is important if you plan to pay your account in full each month. Without a grace period, the card issuer may impose a finance charge from the date you use your card or from the date each transaction is posted to your account.

Balance Computation Method for the Finance Charge. If you don’t have a grace period — or if you plan to pay for your purchases over time — it’s important to know how the issuer calculates your finance charge. Which balance computation method is used can make a big difference in how much of a finance charge you’ll pay — even if the APR and your buying patterns stay pretty much the same.

Balance Transfer Offers. Many credit card companies offer incentives for balance transfers — moving your debt from one credit card (Card Issuer A) to another (Card Issuer B). All offers are not the same, and their terms can be complicated.

For example, many credit card issuers offer transfers with low introductory rates. Some issuers also charge balance transfer fees. If Card Issuer B charges four percent to transfer $5,000 from Card Issuer A, your fee would be $200. In addition, if you pay late or fail to pay off your transferred balance before the introductory period ends, Card Issuer B may raise the introductory rate and/or charge you interest retroactively. And if you use your card from Card Issuer B to make new purchases, any payments you make will go toward your balance with the lowest interest rate — and finance charges at the higher interest rate will be assessed on the portion of your balance that came from new purchases.
Balance Computation Methods
Average Daily Balance. This is the most common calculation method. It credits your account from the day the issuer receives your payment. To figure the balance due, the issuer totals the beginning balance for each day in the billing period and subtracts any credits made to your account that day. While new purchases may or may not be added to the balance, cash advances typically are included. The resulting daily balances are added for the billing cycle. Then, the total is divided by the number of days in the billing period to get the “average daily balance.”
Adjusted Balance. This usually is the most advantageous method for cardholders. The issuer determines your balance by subtracting payments or credits received during the current billing period from the balance at the end of the previous billing period. Purchases made during the billing period aren’t included.

This method gives you until the end of the billing period to pay a portion of your balance to avoid the interest charges on that amount. Some creditors exclude prior unpaid finance charges from the previous balance.
Previous Balance. This is the amount you owed at the end of the previous billing period. Payments, credits, and purchases made during the current billing period are not included. Some creditors exclude unpaid finance charges.
Two-cycle or Double-cycle Balances. Issuers sometimes calculate your balance using your last two month’s account activity. This approach eliminates the interest-free period if you go from paying your balance in full each month to paying only a portion each month of what you owe. For example, if you have no previous balance, but you fail to pay the entire balance of new purchases by the payment due date, the issuer will compute the interest on the original balance that previously had been subject to an interest-free period. Read your agreement to find out if your issuer uses this approach and, if so, what specific two-cycle method is used.
How do these methods of calculating finance charges affect the cost of credit? Suppose your monthly interest rate is 1.5 percent, your APR is 18 percent, and your previous balance is $400. On the 15th day of your billing cycle, the card issuer receives and posts your payment of $300. On the 18th day, you make a $50 purchase. Using the:
Average Daily Balance method (including new purchases), your finance charge would be $4.05.
Average Daily Balance method (excluding new purchases), your finance charge would be $3.75.
Average Daily Balance Double Cycle method (including new purchase and the previous month’s balance), your finance charge would be $6.53.
Adjusted Balance method, your finance charge would be $1.50.

If you don’t understand how your balance is calculated, ask your card issuer. An explanation also must appear on your billing statements.
Other Costs and Features

Credit terms vary among issuers. When considering a credit card, think about how you plan to use it: If you expect to pay your bills in full each month, the annual fee and other charges may be more important than the periodic rate and the APR, and whether there is a grace period for purchases. If you use the cash advance feature, many cards do not permit a grace period for the amounts due — even if they have a grace period for purchases. That makes considering the APR and balance computation method a good idea. But if you plan to pay for purchases over time, the APR and the balance computation method definitely are major considerations.

You’ll also want to consider if the credit limit is high enough, how widely the card is accepted, and the plan’s services and features. For example, you may be interested in “affinity cards” — all-purpose credit cards sponsored by professional organizations, alumni associations, and some members of the travel industry. An affinity card issuer often donates a portion of the annual fees or charges to the sponsoring organization, or qualifies you for free travel or other bonuses.

Default and Universal Default. Your credit card agreement explains what may happen if you “default” on your account. For example, if you are one day late with your payment, your issuer may be able to take certain actions, including raising the interest rate on your card. Some issuers’ agreements even state that if you are in default on any financial account — even one with another company — those issuers’ will consider you in default for them as well. This is known as “universal default.”

Special Delinquency Rates. Some cards with low rates for on-time payments apply a very high APR if you are late a certain number of times in any specified time period. This can exceed 20 percent. Information about delinquency rates should be disclosed in credit card applications and in solicitations that do not require an application.

Get In The Driver's Seat With Automotive Credit Cards

2008-01-10T15:10:00.000-08:00

A number of people have taken advantage of the rewards that automotive credit cards offer. These credit cards pair a major credit card company with automotive manufacturers. A person will earn rewards if he or she uses these credit cards to purchase a new vehicle or any products from a manufacturer that is associated with a credit card company.

If someone is not satisfied with a particular manufacturer, he can shop around to find automotive credit cards that have deals with a more suitable manufacturer. Some cards have rewards that can work for any manufacturer. Persons who are unsure of the type of vehicle they want to purchase can find these types of automotive credit cards useful. However, there are also some credit cards that do not include vehicle purchases on their rewards program; instead they offer rewards for auto parts and services.

It is also important to understand the credit cards rewards systems and how it can be redeemed. People should always remember that automotive credit cards have fees and interest rates as well. An individual who has a card with a high interest rate can end up spending more rather than save on a vehicle purchase. People should try to avoid being carried away with charging items that they don’t need just to earn reward points.

Those who are interested in reward points must realize that you cannot buy a car with it. The rewards points are only for discounts that range from $1000 to $3000. The manufacturers also choose particular car models that are included in the rewards system. Since the rewards systems do not usually include used cars, the card holder may need to buy a new vehicle in order to enjoy automotive credit cards rewards.

People can benefit from automotive credit cards if they are sure about the vehicle they wish to purchase. It will be easy for them to choose the credit card that will suit their needs. The reward points that can be earned will expire, so using the credit card a lot will not guarantee any significant benefits. However, if an individual can manage a credit card carefully, a big amount of money can be saved on the next vehicle purchase.

An Introduction to Automotive Credit Cards
Everything You Wanted To Know About Credit Repair Software
Tips For Choosing Automotive Credit Cards

Tips For Choosing Automotive Credit Cards

2008-01-06T14:58:00.000-08:00

If you are fond of credit card rewards, then you should take advantage of the rewards that automotive credit cards offer. These cards pair a major credit card company with automotive manufacturers. You will earn rewards if you use automotive credit cards to purchase a new vehicle or any products from a manufacturer that is paired with a credit card company.

If you are not satisfied with a particular manufacturer, you can shop around to find automotive credit cards that have deals with a manufacturer that you like. There are also cards that have rewards that can work for any manufacturer. These cards are suitable for persons who are unsure of the type of vehicle that they want to purchase. However, there are also some automotive credit cards that do not include vehicle purchases on their rewards program; instead they offer rewards when you buy auto parts and services.

You must also realize that you cannot buy a car with reward points. The rewards points are only for discounts that range from $1000 to $3000. The manufacturers also choose particular car models that are included in the rewards system. The rewards systems do not usually include used cars. You may need to buy a new vehicle in order to enjoy automotive credit cards rewards.

You also need to understand the credit cards rewards systems and how it can be redeemed. You should always remember that automotive credit cards have fees and interest rates as well. If you choose a card with a high interest rate, you may end up spending more rather than save money on a vehicle purchase. You should avoid being carried away with charging items that you don’t need just to earn reward points.

You can benefit from automotive credit cards if you are sure about the vehicle you wish to purchase. You can easily choose the credit card that will suit your needs. Keep in mind that the points you earn will expire, so using your credit card a lot will not guarantee any benefits. However, if you manage your credit card carefully, you can save a significant amount of money on auto parts, services, and on the next vehicle purchase.

An Introduction to Automotive Credit Cards
Everything You Wanted To Know About Credit Repair Software
Enjoying The Best Reward Credit Cards

An Introduction to Automotive Credit Cards

2008-01-03T10:02:00.000-08:00

Credit card rewards have been around for quite some time now and they are quite popular. There are many to choose from and one of the newest is automotive credit cards. These cards pair automotive manufacturers with a major credit card company. A person earns rewards towards the purchase of their next vehicle or other products from the manufacturer by using their automotive credit card.

Each automotive credit card is different and their reward programs work differently. So if a person does not have their heart set on a particular manufacturer they are best to shop around. There are also cards that now have rewards that work for any manufacturer, which may be best for an indecisive person or someone who is not sure what make of vehicle they would like to buy. Some automotive credit cards do not offer rewards towards vehicle purchases, instead they offer rewards towards the purchase of auto parts and service.

The most important thing for a person to remember about automotive credit cards is that person can not buy a car completely with reward points. The reward points are for a discount only. The discount usually ranges from $1000 to $3000. The vehicles a person can choose from vary as well. Each manufacturer chooses the particular models the rewards can be used towards purchasing. Used cars are usually not included as an eligible vehicle for the use of reward points and the cardholder is required to buy a vehicle that is new or leased.

When choosing an automotive credit card a person really needs to understand the rewards system and how it can be redeemed. They should also not forget this is a credit card and look at fees and interest rates, as well. Choosing a high interest rate card may actually end up costing the person more then they end up saving on their vehicle purchase. It is also important for a person not to get carried away and charge items they normally would not just to earn he points or, again, they could end up spending more than they save.

Automotive credit cards are great for someone who knows what vehicle they wish to purchase. They can then choose the card that suits this need. Automotive credit cards have a limit on how long points earned are good, so a person who does not use their credit card a lot may never see a good benefit. However, if a person is very careful and manages their automotive credit card they can end up saving a nice chunk of money off their next vehicle purchase.

How To Make The Most Out Of Your Low APR Credit Cards
Everything You Wanted To Know About Credit Repair Software
Enjoying The Best Reward Credit Cards

Everything You Wanted To Know About Credit Repair Software

2007-12-17T13:11:00.000-08:00

Some companies advertise that they have a credit report repair Software and also they will teach you credit repair secrets, for a fee of course. There is a lot of free information here, if you know where to look. Before you take a credit repair course or sign up for credit report repair, read the facts and the laws relating to credit repair. In this way you may avoid some disappointment and save some money.

What is credit report repair or software? The best kept "secret" is that creditors and credit reporting agencies (commonly referred to as the credit bureaus) make mistakes. What can you learn in a credit repair course? You can learn the basics of bad credit repair, without paying a penny. If you cannot achieve results on your own, then you may need to hire a credit repair lawyer to help you. If you feel that you have exhausted all of the free options, identify what information that you still need and make sure that the credit repair course or software program that you are considering includes that information.

A secret may be defined as "beyond simple understanding". Using this definition, credit report program is credit report repair that is beyond ordinary understanding. The average person does not understand how credit scores are calculated. Most people do not know what information is on their credit reports. Many people do not know their rights under the law.

Credit repair is a popular subject. It seems that almost everyone wants learn about credit repair. Books and software programs that claim to contain everything you wanted to know about credit repair are being sold on the internet and in retail locations all over the country. There are some questionable credit repair schemes and some companies suggest action which is illegal. Consumers can learn to repair their own credit, but it takes time and patience. The safest bet when hiring someone to do the work for you is to hire a credit repair attorney. In this way, you can be sure that you will achieve results; they know everything there is to know about credit repair. You can also be sure that a credit repair attorney will not advise you to do anything that is illegal. Most of the popular credit repair lawyers do not charge more than the other credit repair companies and some offer money back guarantees.

The Federal Trade Commission regulates credit repair organizations and states that "certain advertising and business practices of some companies engaged in the business of credit repair services have worked a financial hardship upon consumers, particularly those of limited economic means and who are inexperienced in credit matters." Under the laws regulating credit repair organizations, any company that advertises secret credit report repair or credit repair in general must provide the consumer with certain information. These regulations do not apply to companies that offer a credit repair course or seminar. Most of these are simply rehashing information that has been available for years. If you look in the public library, you will see that individuals have been writing books about credit report repair for years.

There was an individual who advertised his informational packages on TV. One of his reports was "how to get AAA credit" or something like that. This was not any spectacular secret credit report repair. It was not a credit repair course. He advised consumers to make a $500 deposit into a savings account at any bank. Then, using the deposit as security, apply for a loan. Repay the loan and according to him, you would have great credit. This may be information that the average person does not know. It is similar to the secured credit card programs that so many companies offer. The thing about credit is that, it is harder to get, if you really need it. If you have $500 to deposit into a savings account or a secured credit card program, if you have the money to pay off the debts that you owe, you can improve your credit score over time.

Companies that advertise quick free credit report repair are banking on the theory that you do not know how to review your credit reports for inaccurate information. If you have inaccurate, obsolete, misleading or unverifiable information on your credit reports, then the credit bureaus must delete the information. You must "dispute" the information. In other words, you must notify the credit bureaus about the negative information that needs to be deleted. This is the credit report repair that is often the subject of a credit repair course.

How To Make The Most Out Of Your Low APR Credit Cards
Enjoying The Best Reward Credit Cards
Doing Business with Business Credit Cards

Enjoying The Best Reward Credit Cards

2007-12-10T13:24:00.000-08:00

Credit card companies do face a lot of competition these days - with each bank knowing that they make a lot of money from interest charges, annual fees, late payments, and the like. Because of the stiff competition, however, some of the card features that are now available on reward credit cards can really bring great benefit to you. You do not have to let the bank line their pockets with your hard-earned cash every month. Here are some of the options that will provide some of the greatest benefits.

•0% Interest

The best reward credit cards will start by offering you 0% interest on both your balance transfers and your purchases. If you look at the interest that you pay on your current credit cards, you could save that amount each month by transferring your balance to this kind of card. Before you just sign up, however, try to avoid transfer fees that might apply, some as high as 5% or higher on the transferred amount.

Another factor to consider is how long the 0% APR lasts on the particular reward credit cards in question. The 0% APR is only for a specified time, anywhere from 3 months up to 15 months. Also, you will want to check and make sure that the 0% APR is for both balance transfers and for your purchases. Many cards will give you one or the other, but there are some that will offer both.

The Rewards Being Offered

The very best reward credit card offers now offer more and more rewards - which means it is a good time to get one. Here are some of the rewards you can get.

•Air Miles

Travelers can greatly benefit by getting air miles credited to their card. Most reward credit cards give an initial amount of air miles - possibly up to 25,000. Then air miles are earned according to each dollar spent. Some give points per dollar spent, and others give miles per dollar spent - or a similar arrangement. One company even allows family members to pool their air miles together! The best kind of rebate credit cards will allow you to use your air miles with any airline. These kind of cards are issued by banks, rather than the ones offered by the airlines. Watch out for air miles that could expire after a certain amount of time - you don't want to lose them.

•Rebates

Other credit card rebates allow you to earn points for every dollar that you spend. These are often divided into two groups. The one that earns the highest benefits, anywhere from 1% up to 6%, are for your purchases of groceries, gas, and medicine. Most other purchases will fall into a lower category - usually from 1-3%. These points are often redeemable through cash, merchandise, and travel benefits such as hotels and restaurants, or gift certificates.

Some business reward credit cards enable you to get rewards for many of your business purchases, including office supplies, travel expenses, car rentals, and more. Some of these will give an initial 10,000 points after your first purchase. If you have your own business, or use credit cards often for your business, a rebate card could bring you a great way to save on expenses, as well as offer a simple way to keep track of all of your expenses – all on one monthly statement.

Reward credit cards can really be a great tool to save some money throughout the year. Avoid cards with an annual fee, which could be as high as $180.00 and beyond. A single late payment, on most cards, could also take away your benefits and set you into the regular rate of interest – or higher. The maximum benefit that can be derived from any reward credit, however, occurs when the balance is paid off IN FULL each month when the bill is due. Otherwise, finance charges will squash any benefit that you might receive from those reward points.

How To Make The Most Out Of Your Low APR Credit Cards
The Ever Popular Mileage Card
Specific vs. Generic Airline Miles Credit Cards

How To Make The Most Out Of Your Low APR Credit Cards

2007-12-09T14:22:00.000-08:00

You have decided that you need a new credit card and you already know that you want a low APR credit card. You have made a good choice, but you probably also know that there are quite a variety of cards available with that option. Here are some tips that will help you make the choice is best for you.

Choose As Low Of An APR As You Can Get

If you have a tendency to allow a balance to remain on the credit card, then you will need to acquire as low of an APR as you can get in a card. This feature alone can save you a lot of money over the life of the card - but will not save you nearly as much if you simply paid it off each month. Low APR credit cards will usually have an introductory offer of either 0% APR for up to 15 months, or, a very low APR for the life of the card.

Look For Balance Transfes Time Limits

In addition to the low APR, try to find a card that will give you 0% interest on balance transfers as well. As you look the various cards over, though, note that the time length on this option may not be the same as for the 0% APR. Some of these credit cards may only give you the benefit of a 3 month balance transfer period at 0% interest, but may give you up to 15 months 0% APR on your purchases, or vice versa. So, if you want to take advantage of both options, read the fine print carefully.

Another thing about balance transfers is that some companies definitely will limit the time as to when you can actually make the transfers. Some will only permit you to make a transfer to your new low APR credit card at the time you apply for the card with all details of what you are planning to transfer on the application itself. Other credit card companies will allow for balance transfers to made over the introductory time period, not making such a restriction.

Consider Your Own Needs

Part of getting the best deal on a low interest credit card depends on how you normally will use it. If you regularly pay off the monthly balance, then the interest rate is not that much of a concern. You will want to focus rather on the other benefits that are available. Here are some of the options that are more commonly offered.

•Travel Benefits

If you are a frequent traveler, then there are two ways you might be able to benefit. If you normally travel by air, then you will want to be able to get air miles benefits on your low APR credit card. These often come with bonus miles, some as high as 25,000, just for signing up and making your first purchase. Some card offers will give you the choice of using those miles to go toward your hotel room, meals, or other options. Other benefits include free gas rebates, a rebate toward the purchase of another car, and rewards if you travel by car.

•Cash Back Or Rewards

Some of the low APR credit cards currently available will provide a system where you can get a refund of a percentage of your purchases. These rewards allow you to get as much as a 5% reward for various types of purchases. The highest percentage cash back is typically for your purchases at the food, gas, and pharmacy stores. Most cards will offer a 1% up to 3% reward on all other purchases.

Another thing you need to look for is whether or not there are any annual fees. These vary from card to card but could go as high as $150 or more. If you do carry a balance on your credit card, this kind of fee could render the other potential benefits almost meaningless.

Doing Business with Business Credit Cards
The Ever Popular Mileage Card
Specific vs. Generic Airline Miles Credit Cards

Doing Business with Business Credit Cards

2007-12-08T13:21:00.000-08:00

Putting your business onto a business credit card system is certainly a good way to do business better. This could apply whether you have one employee, or a hundred. Here are a number of reasons why your business can profit by using business credit cards.

Makes Accounting Easier

If you have ever had a problem with employees losing receipts (or maybe you have done it), or forgetting to hand in the receipts until a month or two later, then you can certainly appreciate the ease that business credit cards can give you. This system would enable you to not have to fool around with either needing to have cash on hand, or, of needing to have more than one signature on a check each time you need one. Another great element of using business credit cards is that it saves time and expense on check writing. This way you only need to write one check.

Most business credit card companies will give you the option of putting it all on one monthly statement - if you want it. This shows your accounting department every penny spent through credit card purchases, and single reports enable them to easily verify spending limits, as well as being able to accurately keep the books up to date. Online access to your business credit card account lets you know what transpires on an almost daily basis.

Give Employees A Credit Card

Once again, the purpose here is to make it easier on all concerned. If you have a number of employees that need to travel on a regular or semi-regular basis, then here is a good way to make it easier to keep track of their expenses. Or, you may have employees that are in charge of purchasing items for specific departments - this would sure make it simpler. Each key employee could be given a business credit card of their own for the company, and you could place set limits on individual cards allowing you to have a degree of protection for the company.

One thing that you may need to be aware of though is that the credit level of each person being issued a card will have a credit check made. This could have a negative effect on the interest rates of the card if one or more people that are to receive the business credit cards have low credit ratings. The way to avoid this is to only give cards to those with good ratings.

Earn Business Rewards

If you put all of your business expenses on one business credit card company, then you could earn a lot of business rewards. These rewards will usually come in several forms, including cash back, air miles, free gas, points, etc., which are redeemable at various merchants and can add up to thousands of dollars saved each year. You can even get greater savings by getting your card from a company that is near you - such as a gas station, or a particular airline in your city.

Compare the Other Options

Apart from the other things mentioned, you need to consider whether or not you can make balance transfers, and if there is a charge or not. Many of the credit cards do permit you to make transfers but find out for how long the benefit applies - some cards will allow you to enjoy 0% interest for twelve months or longer. A number of cards will also allow you to get 0% interest on all purchases for one year, too. Of course, the best way is just to pay it off with each month's billing, and then interest never becomes an issue.

One other thing that you will want to make a note of, and that is to see whether or not there is an annual fee for the card. Some business credit card companies may give you 0% interest, but then they will charge you an annual fee. If you're willing to look around, you can easily find some card products that can offer up great benefits for your company.
Getting The Most Cash Back From Cash Back Credit Cards
The Ever Popular Mileage Card
Specific vs. Generic Airline Miles Credit Cards

Specific vs. Generic Airline Miles Credit Cards

2007-12-06T13:18:00.000-08:00

Many potential cardholders are confused about the differences between the variety of airline miles credit cards available today. Miles credit cards can be divided into two mostly neat categories: airline-specific cards and generic cards. Each set has its own advantages, but it's often advisable for a frequent traveler to go with a specific card, and a less-frequent traveler to go with a generic card, in order to minimize interest fees and to maximize earned mileage of the former, and in the latter case to have the flexibility to search for the least expensive flights while still earning rewards.

Anyone who's ever considered getting an airline mileage credit card has probably balked, at least once, at the massive number of options out there. Additionally confusing is the dual terminology at work in the airline industry: there are frequent-flier miles, yes, but how do those relate to miles credit cards? And where do "points" come in to the equation? It's a bewildering array of terms, few of whose definitions are readily available, and the lack of clear explanations cause many people to just give up on mileage cards altogether. Which is a shame, because mileage cards--assuming that they're properly and carefully used--can be an easy way to save money on travel expenses, up to and including free flights around the globe.

Most of the differences between the varieties of miles credit cards boil down to two basic categories: airline-specific mileage cards and generic mileage cards. The airline-specific mileage cards allow you to accrue mileage that often applies directly to a specific airline's frequent flier program mileage (for example, American Airlines' AAdvantage Cards from Citi apply miles directly to your AAdvantage account, one mile for every dollar spent), miles which can then be turned around into actual airline seats and in some cases a discount or outright free travel. The advantage of these is that occasionally flights can be cheaper through a "loyalty" miles card than without. JetBlue, in particular, offers the standard deal of about 25,000 Award Dollars (points) for one plane ticket, but offers a 3:1 point to dollars ratio when making travel arrangements exclusively with JetBlue, which is an extremely good deal in the mileage card world, assuming that you fly JetBlue on an exclusive basis.

The generic mileage cards, by contrast, allow you to redeem your miles on whatever airline you choose (assuming that they participate in that mileage card's specific rewards program.) You won't usually find loyalty deals here, but there are some additional benefits. For one, in some cases a generic mileage card can offer the cardholder a much wider array of hotels to stay at to accrue additional mileage points (another key in the miles credit card world.)

Knowing a little bit about the airline dynamics in your region is also helpful in making your decision, such as the predominate carrier in your region and the availability of domestic and international flights from your local airports. Even still, it may be a difficult choice. To help make that decision, consider the following. As a rule (and there are exceptions), airline-specific cards generally will charge cardholders a pretty hefty annual fee and tend to have a higher ongoing APR. Generic miles credit cards typically won't stick you with an annual fee but also tend to have higher ongoing APR's than traditional non-reward credit card offers.

So really, to ask which mileage card is right for you is to ask how frequently you travel, and how many travel expenses will start to show up on your budget. If you do a great deal of traveling, consider an airline-specific card. The annual fee is fixed, and as long as you pay down your balances every month, should not be much of a consideration because of the benefits that you will derive from the reward program. But if you're a more infrequent traveler, go for the generic mileage card and shop around to find the best flight from whatever airline offers it. Chances are that if you take just one or two flights a year, the generic card offer is the better bet for you. You can plan ahead to find some excellent discount flights in advance while enjoying all of the potential travel rewards that airline miles credit cards have to offer.

Getting The Most Cash Back From Cash Back Credit Cards
The Ever Popular Mileage Card
Doing The Math on Credit Card Rewards

Getting The Most Cash Back From Cash Back Credit Cards

2007-12-04T12:32:00.000-08:00

These days many of us are feeling the financial pinch. From rising inflation to sky-rocketing gas prices, everyone has been effected. If you are looking for another way to save some money, you can do it with cash back credit cards. Here are some things you need to look for when you apply for your card.

Not All Cards Are Equal

Credit card companies have a policy to always advertise only the best features in their ads, which is typical of most people selling anything from used cars to bridges in Brooklyn. The problem is not usually in what is out in the open, but it is what is in the small print that matters. Just because you see a 0% interest on their ad does not mean that everything is good with the rest of the card offer. Look it over carefully - or you may not be getting quite the deal you think.

0% Interest

This feature contains three things that you need to look into. First, there are the balance transfers. If you are serious about saving money, and you have credit card debt, then you need to know what you can transfer and for how long can you transfer it. Some credit cards will only give you this option if you make the transfer when you apply for the card - any other transfers do not get the same 0% treatment. A good cash back credit card will enable you to receive 0% balance transfers for up to one year after you get the card. Also, check whether or not there are any balance transfer fees, since some cards can charge up to 4%.

Another thing you should look at is to determine what it is that comes under the 0% APR. For some cards it applies only to balance transfers, and for others (the better ones), it applies to both balance transfers and purchases.

Then, be sure to look at the time period that applies for the 0% interest. Some companies make this a real short teaser offer knowing that people will either not read the fine print, or not compare cards. For some cards, this period of time can be as short as 90 days. The best cash back credit cards, however, will allow you to enjoy that benefit for between 12 and 15 months.

Cash Back Rewards

Once again, there is quite a variety in what is offered in cash back rewards. The percentage of what is offered as cash back can vary between 1% on the low side to upwards of 6% on the high side. Almost no card will give you 6% on all purchases, but will differentiate between the types of purchases. Nearly all cash back credit cards will give you a better percentage for your purchases made at gas stations, grocery stores, and drugstores. Lower percentages, usually 1% to 3%, apply to all other purchases. You need to know, however, that some cards will require you to maintain a balance, or to make a certain amount of purchases before you get the benefit.

Reward Options

You have a number of ways that you get to use your cash back rewards. They can come to you either as discounts, points which can be used toward purchases at select stores (selected by the card company), or air miles. Some travel cards will also reward you with free hotel stays, discounts toward car rentals, and even credit toward buying a new car.

Interest Rate

For some, this may be the most important consideration. Your cash back credit card will give you special benefits for up to one year – after that, the regular rate kicks in. You will want to choose a card that has as low an interest rate as possible – for as long as possible. After that, you may want to get a new card.

Weigh your options carefully when comparing each particular offer. Cash back credit cards usually have a little higher interest in order to offset the freebies the company gives to you. If you are a traveler, then you certainly want either a card that gives you air miles, or rebates on your gas purchases – depending on which you use the most. Watch out for late payments, too, as this can kick your intro APR back up to the regular rate of interest – early.

The Ever Popular Mileage Card
Mileage Cards – Pluses and Minuses
Preparing For Life With Credit Cards For College Students

The Ever Popular Mileage Card

2007-12-01T12:18:00.000-08:00

Who doesn’t like freebies anyways? Mileage cards are growing in number by each passing day. The use of these cards seems to be getting more and more attention with consumers of late. The simple fact is that consumers can derive significant benefit from mileage cards by using them judiciously with every day purchases.

The cards have some significant travel rewards and perks, offering the most obvious benefit that comes wit mileage card use. These are available through different sources and one of the best such sources are the financial institutions themselves.

More about Mileage Cards

There is no dearth of credit cards in the market these days. The only difference is in the services offered that vary from card issuer to card issuer. Not surprisingly, such cards are ideal card options for frequent flyers. People who travel a lot by air can derive superior benefits from this type of card offer.

While these miles are a definite potential perk for the owner, proper use of the card is required. The time period for redeeming the point earned from such cards is generally unlimited with continued use of the card but some companies have a point use limit of 2-3 years. Points are collected for travel purchases as well as regular card purchases and they are tallied up on an ongoing basis for the cardholder.

Personal Mileage Card

Anyone who travels often can use what is known as a personal mileage card. It is literally the same as a traditional credit card but the free travel is just considered an added benefit, not the primary benefit of the card. All that one needs to do is find the card offers from the wide variety of resources available online and narrow down your selection to those cards that offer a redeemable miles reward program. There is a huge number of these cards available in the marketplace. Virtually every airline has a corresponding credit card from which you can derive benefits, not to mention the wide variety of general rewards cards that offer miles as an additional benefit to their reward program. And for all of you international travelers, these cards are generally accepted by most of the international airlines.

The Right Mileage Credit Card

A mileage credit card should be thoroughly researched before cardholders consider applying for any card offer. You can be easily fooled by many of these offers if you do not apply due diligence to the research process. The secret is thorough research and an understanding of how these cards work.

A Mileage Card – For Your Dream Destination

The airlines industry knows the need of the travelers these days. With this is mind, mileage cards were devised and have found their distinct niche with consumers. While the mileage card has been available for years now and is growing in popularity, counter to many of the advertising and marketing campaigns that you see for this type of financial vehicle, mileage credit cards are not a good bet for everyone.

Preparing For Life With Credit Cards For College Students
Mileage Cards – Pluses and Minuses
Doing The Math on Credit Card Rewards

Preparing For Life With Credit Cards For College Students

2007-11-26T06:07:00.000-08:00

One of the best ways to help prepare your young college student for the realities of life concerning finances is to educate them about the perils of personal finance, in particular the use of college student credit cards. Many companies offer them and they do come with a number of benefits. As recently as about 15 years ago, it was nearly impossible to get a credit card as a college student, but now the times have changed. Here are a few things to look for when you go to apply that will help you to get the best.

0% Interest

This feature allows your student to be able to make purchases and not owe any interest for an initial period up to 6 months. This time frame is pretty standard on credit cards for college students. After that time frame, the regular interest on the card comes into effect. Of course, every young person with a credit card also needs to know that by paying the monthly balance when it is due will bring most any card to 0% interest – on a continual basis.

Balance Transfers

Most college credit card companies assume that this is the first card that students have ever owned and will not offer a balance transfer option. While there are a few card issuers that offer this card feature, a balance transfer is an undoubtedly rare feature in a college credit card. If they do allow it, then it still would only apply for the 6-month introductory offer period.

Higher Interest

The credit cards for college students do normally have a higher interest rate than your general cards – about 16.99% up to 18.99% and beyond. So if the compound interest effect is demonstrated and emphasized to your student, it may help them to realize that they need to be fiscally responsible - or they will pay a steep price. Also, you need to know that it is more than likely that the introductory offer may be forfeited by just a single late payment.

Build Their Credit Rating

Many of the advertisements for college student credit cards emphasize that this is a good way for your student to build their credit. It is a good thing for them to understand too that how they treat this card will have a definite reflection on their credit ratings for the foreseeable future. So they may need some extra instruction on this, as well as knowing the importance of paying their bills on time. Many ads for these cards also point out that their card records may be accessed online and they can make payments electronically, yet another nice feature for internet-savvy students.

Rewards

Here is one of the ways that the card starts to make it worthwhile. For each dollar spent, rewards or points are given that can be redeemed either as cash, or as a gift. The rewards on these rebate credit cards include such things as air miles, concert tickets, gift cards, studio tours, and up to 5% cash back on certain items - usually groceries, gas, and medicine, and then 1% on others. Some college student credit cards even give special rewards for keeping a good GPA!

Another Option

If you think that traditional credit cards for college students might be a little beyond your student's readiness to be responsible, then there is another way to go when they go off to college. The prepaid debit card can also give them the ease of plastic without having to carry any cash around, or in their dorm rooms. Amounts can be easily transferred to the card, and some cards even permit amounts to be transferred from one family member’s card to another family member’s card.

Getting your student off to college is a big step in their life – and yours. Getting the right college student credit cards can sure take a load off of your mind by knowing that they do not have to carry a lot of cash. They are also protected against any wrongful uses of the card, too. And best of all, your favorite student can learn to become fiscally responsible, with time, and get an even better card later on.

Apply For Credit Card - Get Instant Approval
Mileage Cards – Pluses and Minuses
Doing The Math on Credit Card Rewards

Mileage Cards – Pluses and Minuses

2007-11-25T03:04:00.001-08:00

A mileage card can be both a bane and a boon. If you’re someone who pays off the balance well in time, then a mileage card can well be your friend, but if you’re not a big spender and don’t havethe resources to keep up with the cycle of card balance payments in time, a mileage card can be yourbiggest foe. The article below elaborates more on this phenomenon, so don’t throw caution to thewind while utilizing your mileage card.

A mileage credit card is an asset to any dedicated flyer if used correctly, no doubt. But the catchremains in the phrase “if used correctly.” Just because you are earning extra miles for charges on your mileage cards does not necessarily mean you have the upper hand in this game. If you don’t look closely, there just might be some loss of money involved (and then some), so be sure to review how you’re using the mileage card — you might just discover that all those miles are not worth it!

What Is So Different About A Mileage Card?

A mileage card is one amongst the bewildering array of ways to earn credit cardrewards that savvy consumers are being offered these days. A mileage card will convert milesearned for purchases into hotel stays or restaurant meals, typically enabling you to use these miles for a variety of different reward options.Pros of Mileage Cards what’s a bigger plus to the spender than earning a travel dividend for money that has to be spent on additional card purchases anyway? Did you know that business travelers get double miles with certain card offers if they charge their tickets with mileage cards? It sounds too good to overlook!

Especially when you have acknowledged the priciest part of any major trip is airfare, you simply cannot ignore the thought of your routine grocery store purchases bringing you closer to that Caribbean cruise that you’ve always dreamt of going on. Your mileage cards might just bring you a little closer to that dream. It Can’t Be All Good!

*If you can’t afford to pay off your card balances consistently, then a mileage credit card is definitely not the best choice for you, because the exorbitant rates of interest that are typically found with this type of card would do nothing less than shock you. Of all the major mileage cards, the lowest ongoing APR carries an interest rate of about 17 percent. Ouch!

*Heard of blackout dates yet? If not, then you definitely aren’t the informed mileage credit card owner that you thought you were. Blackout dates (which can happen frequently with certain rewards programs) are the ones, which fall on major holidays, making your accumulated mileage and off-limits for redemption.

*Forget about using the card for those large purchase items (for example, electronics, appliances, cars) with your mileage credit cards to earn those big points. Typically, there will be a yearly limit or "cap" on how many miles you can accumulate with these cards, limiting your ability to accumulate large point totals in a given period of time.

*Also, since there is a time limit attached, make sure that you shop the expiration times for accumulated mileage on your mileage cards. The rewards offer would really be futile if the miles expire just as you draw near to a free ticket.

*The biggest drawback for these card offers tends to be the membership fees. If them embership fees that you have paid up all this while are more than your points earned benefit, then it’s obviously not worth the effort.

And finally, even though we want to ensure that you enter into this subject with the knowledge of what to watch out for, this should not deter you from benefiting from mileage cards. As we have previously outlined, there are definitely numerous benefits associated with this type of card offer so, understanding full well what the pitfalls are and what to be wary of with mileage credit cards, we should give them the benefit of the doubt!

Apply For Credit Card - Get Instant Approval
It's Your Credit - What Are You Going to do to..
Doing The Math on Credit Card Rewards

Doing The Math on Credit Card Rewards

2007-11-24T09:02:00.000-08:00

With the increasing popularity of credit cards in America, it's no surprise that credit card companies and banks continue to flood the market with all manner of cards--rewards credit cards, cash back credit cards, 0% APR credit cards--all in an effort to appeal to as many potential cardholders as possible by offering a wide variety of incentives for use. The major problem with the strategy, however, is that there's often little explanation of exactly how credit card rewards work in their respective programs: what's the difference, for example, between cash back cards and rewards credit cards? And which card will, in the end, save you more? The variety and sheer number of rewards programs leaves some potential cardholders confused about the actual market value of their "points" values.

The most prevalent credit card rewards plans out there today fall into two different categories -- percentage-based rewards and points-based systems. The former offers a percentage of your money back on purchases in certain targeted categories, most commonly gas, travel, and in some cases entertainment. The latter offers a series of "points" for all purchases made, which can eventually be redeemed for reimbursements on various expenses, most commonly travel. The percentage rewards plans are fairly straightforward (except for a few obscure snags, such as how your cash actually gets back to you and how much you can earn in any given year through credit card rewards), but in the case of "points", it's often difficult to determine exactly what you're getting for your purchases using a points-based rewards credit card.

But in the end, it all comes down to the numbers, specifically the math formula used to calculate the rewards. A good percentage-based rewards credit card will offer anywhere from 3-5% back on targeted purchases (again, commonly gas and travel.) If you spend $1,000 at the pump in a given year (which, with current gas prices, is a pretty low amount to spend on gas in a year), you'll earn $50 back in rewards at a 5% rate. For a year's worth of gas purchases, $50 isn't a huge amount of money, but it'll fill you up twice and it's certainly better than nothing.

Compare this to "points" systems. One points system (from Chase's Free Cash Rewards Visa) offers a rewards rate of 2,500 points for $25, with one point earned for every dollar of purchases. That's only a 1% rate of return on the money you put into the card. Certain airline credit cards offer a slightly better deal, such as American Express's Blue Sky, which allows you to redeem points (again, one dollar per point) in 7,500 increments for a $100 reimbursement on travel expenses, meaning about a 1.3% rate of return. Again, even a low rate of return can help to offset any expenses you may incur, and can make certain purchases essentially free. But 1.3% versus 5% -- you do the math.

On non-targeted purchases, points systems and percentage rewards credit cards even out, since most percentage reward cards offer a 1% rate of return on the majority of non-targeted purchases you make. And the "points" cards can offer a few incentives that a percentage rewards credit card can't, such as bonus points on sign-up, anywhere from 1,000 to 15,000 and up (depending on the value of a given points system, of course.) But, assuming that you frequently purchase the targeted items on a percentage rewards credit card (and who doesn't make frequent gas, travel, and entertainment purchases?), you've got a slight edge with percentage-based rewards programs.

Check all of the fine print and consider your specific purchasing needs, of course, but remember one of the first rules of finance: when dealing with credit card rewards, always look at the long term and make sure to do the math.

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It's Your Credit - What Are You Going to do to..
Bad Credit Credit Card- The Downside

Apply For Credit Card - Get Instant Approval

2007-11-23T06:00:00.000-08:00

The world of the internet is changing the way the world conducts financial business. The internet naturally lends itself to some types of businesses some types of business, And financial is a perfect fit. For the most part financial instruments are easy to compare and choose using the internet. It makes it much easier for the consumer and it brings customers in droves to institutions. With large websites dedicated solely to finding mortgages for you the mortgage market has become dependant on the internet to conduct its business.

Credit cards are no different. Over the past few years credit card companies, banks and other lending institutions have become more reliant on the world wide web as a way of doing business. In a few years the web will more than likely take over the financial industry as its sole source of business. The biggest advantages to this style of business is realized by the consumer.

With an internet connection you can quickly find the best deals for credit cards. you can find cards that are very specific to exactly what you are looking for. This can all be accomplished in a matter of minutes if you know where to look. The other great advantage is you can apply and receive instant approval in a matter of minutes from right at home. This also saves us from possibly receiving bad news in person, face to face in some cases. The ability to do all this anonymously takes a lot of pressure off of the applicant.

The market for new customers is so hot right now that you can get really great deals if you take your time and do your homework. Card companies are offering lots of reward programs and very good interest rate can be secured.

How To Obtain A Credit Card With Bad Credit Status...
It's Your Credit - What Are You Going to do to..
Bad Credit Credit Card- The Downside

Bad Credit Credit Card- The Downside

2007-11-22T06:50:00.000-08:00

Often when someone has had the bad luck and bad circumstances to find themselves in trouble with their credit, it is tempting to try to right the situation by answering one of the following familiar taglines: “Credit problems? No problem!”, “We can erase your bad credit – 100% guaranteed!”, “Create a new credit identity – legally!”, “We can remove bankruptcies, judgments, and liens and bad loans from your credit file forever!” These promises and assurances can be very seductive when one is in the throes of a credit nightmare, but not all of these promises are worth trusting, and some of those assurances could get you into bigger trouble than you were in before.

Often credit card debt comes from circumstances that, as consumers, are beyond our control. Access to credit can be a heady and sometimes dangerous perk. Before most people know it they can end up deeply and dangerously in debt. Quick fix answers will not always (or more accurately, barely ever) really help relieve the stress and damage of bad credit. Frugality, conscientious spending and careful planning are the only things that can truly reverse the terrible effects of bad credit. However, even these tactics take time, sometimes years, and can put a terrible financial strain on those trying to pull themselves out of debt.

Though many online advice sites do not suggest it, some do suggest that getting a bad credit credit card is a good idea. A bad credit credit card that is paid on time is one of the best ways to improve credit. If, however, the customer perceives that he or she will be unable to make payments on time every month, an unpaid bad credit credit card is the easiest way to cause even more damage to already dismal credit.

In order to start the process of getting a better credit score the first and most important step is to find out exactly what you have against you on your record currently. Major, nationwide consumer reporting companies such as Equifax, Experian and TransUnion are required to provide consumers with comprehensive credit reports detailing the judgments against them in the credit universe. Once the consumer has this document from one of the major nationwide consumer reporting companies they are better able to see and take the necessary steps to improve and alter their credit history and their credit future. For many, this is the first step to financial freedom

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It's Your Credit - What Are You Going to do to Protect it?

It's Your Credit - What Are You Going to do to Protect it?

2007-11-21T11:48:00.000-08:00

For anyone who has, has had and wants to avoid being had, this series of articles reflects years of continuing research. I'll discuss the worse that can ever happen to people thrown into credit situations - whether through their own doing or as victims and how they were able to come of them in one piece. These article are based on facts as I read and understood them.

A credit report is a history of your bill payments record. These can be bills such as home loans and mortgages, revolving credit and even cell phones. There are three credit-reporting agencies that are commonly referred to as credit repositories. Each uses a different type of symbol. When looking at your credit report, be aware of the very first page. This will most often contain the explanation of the symbols that are used by that company. There are various symbols that are utilized to identify payment histoy, types of accounts and whether or not the account is individual, joint or involves a cosigner.

Credit reporting agencies are NOT part of the U.S. Government. They are privately owned companies that get paid to sell information about you to your creditors. They get paid for good and bad information. You are NOT their customer. You do not purchase any goods or services from the Credit Reporting Agencies.

They do not care whether your credit is perfect or poor. They receive their money from the creditors in the form of charges and memberships. Why should a credit reporting agency care about you? You are only a consumer of goods or services.

In fact, Experian, which is one of the three large Credit Reporting Agencies is owned by a British conglomerate. Think about that. Why would a foreign company own a credit reporting agency in the United States? The answer is simply for the profit. Those are the facts.

Remember, most credit reports identify the consumer (you) by your name and your credit entries by the name, account number and the date that the account was opened. Being able to identify information that is not accurate can help you to raise your credit scores. One of the single most important parts of the following articles is your ability to identify on your credit report your legal right to know WHEN an account is first delinquent.

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How To Obtain A Credit Card With Bad Credit Status

How To Obtain A Credit Card With Bad Credit Status

2007-11-20T11:46:00.000-08:00

People attempting to build credit for the first time or have an already existing bad credit history often have a hard time obtaining a credit card. There are credit cards now available for people in these situations. Obtaining a secured credit card for people with bad credit is the most helpful way to improve your credit score.

The first step to take in obtaining a secured credit card is to do your research. Inquire about fees that may apply and whether or not said fees will be refunded if you are denied credit.

The most common form of a secured bad credit card is a debit card. The cardholder deposits a fixed amount of funds into the account with the card holding company. This amount can range anywhere from $500 to $1000. When a purchase is made using the credit card, money is withdrawn from the account. Funds need to be deposited into the account periodically for continued use.

Secured bad credit cards are normally easier to obtain by people with bad credit scores because the cardholder is supplying the capital which will be charged against. Since the credit card company is not required to supply any funds for any transactions made, they are not at risk. Although the process of obtaining a secured bad credit card is simple, it may become quite costly if fees are involved. For that reason, research is imperative.

It is wise to first apply for bad credit cards at smaller retail stores rather than large institutions. It is recommended not to keep more than three credit cards for risk of over spending.

Obtaining a secured credit card is a useful way to begin to build credit or to attempt to repair a bad credit history. Be sure to make payments on time and you will be on your way to improved credit.

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Airline Cards - To Own or Not to Own?

Airline Cards - To Own or Not to Own?

2007-11-19T09:42:00.000-08:00

Everyone’s needs are different depending on their various lifestyles and living patterns. Therefore choosing an airline card from the various airline cards available will depend on your choice entirely. Eventually, it's up to you as to how hard your airlines credit card will work for you. But by reading these simple tips, and asking these questions, you can definitely wedge out a few more benefits out of your airlines credit card.

What is an Airlines Credit Card Anyway?

With an airlines credit card, one can earn credits or points whenever one uses the airlines credit card. After a certain number of “points” have been accumulated from purchases made on the card, cardholders can redeem points for airline travel, just the way one might utilize frequent flyer miles.

Be sure to know how many points you need to accumulate on your airlines credit card so as to qualify for free air travel. It’s also vital to know when these points will expire if not put to use within a certain amount of time. Since most of the top airlines credit card reward programs are typically quite costly for credit card companies, any airlines credit card will usually come with an annual fee and will also have higher corresponding interest rates than other credit cards.

How Do I Select the Best Airline Card?

The first step in determining which airline card to select is to know which airline you frequent the most. If you have an airline preference for most of your trips, find out if the same airline has an airline card.

Another thing to analyze would be the frequency of your flying. If you fly once every few years or so, you are least likely to benefit from an airline card. If, however, you fly often, you might want to consider owning an airline card. However, there is a catch involved in this as well. Many airline cards place restrictions on the number of points that can be earned in a year. So, if you are not able to utilize points before they expire, owning an airline card would be futile.

As we’ve already mentioned, any airline card will have an annual fees attached to it besides having higher corresponding interest rates than a non-airline card, so watch out for that as well.

Getting the Best Out of Airline Cards

To get the best out of your airline cards, use them carefully. For instance, take a little amount off your monthly budget each month towards paying the balance on the airline cards and make sure that you are only spending that amount. Otherwise, you are most likely to end up paying quite a tidy sum as finance charges can add up from the high interest rates typically associated with airline cards.

Another way to maximize the utility of your airline cards is to choose your purchases through the airline cards very cautiously. Quite a number of times, even though you will get points for every purchase made with the airline cards, there will be additional points for specific purchases. The beauty of airline cards lies in utilizing them for the purchases that count while using other credit cards for those that do not.

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Cash Back Credit Cards Offer Equal Benefits

Cash Back Credit Cards Offer Equal Benefits

2007-11-18T11:40:00.001-08:00

Cash back credit cards are becoming more common as more and more merchants and retailers accept credit cards as a form of payment. Although cash back cards might seem like an altruistic move by card issuers, the reality is that these cards generate significant profits for them. But the truth is that these cards also provide the significant opportunity for cash back rewards and rebates, offering potentially equal benefits for all parties involved.

Thanks to the growing resurgence in online business (and thus the growing resurgence in online credit card transactions), the market is seeing a variety of new, individualized credit cards unprecedented in history. And, in keeping with the online retailing trend, one of the most prevalent of the new credit cards is the cash back credit card. Cash back credit cards work on a very simple principle: when you shop--using your cash back credit card--at certain targeted retailers or stores, a portion of the money you spend comes back to you, either in the form of a credit to your account or a check (or in some cases a gift certificate to a particular retailer.) Although the rewards are fairly small, the money you get at the end of the year amounts in some ways to a free gift from the credit card company: a way of saying "thanks". How generous the card issuer is, right--altruistic, even?

It's a bit more complex than that. Cash back credit cards can only function as a promotional mechanism for the card issuer and can only offer them as an incentive for increased purchase activity. You might think that the company just doles out these rewards from the money that cardholders inject into the company in the form of monthly interest, annual fees, and such, or simply from the credit card company's cash reserves. But that's not usually the case. The money that returns to you when you use a cash back credit card at a retailer wasn't originally your money, or the credit card company's money. It comes out of the retailers and merchants pocket where your transactions occur.

If you've ever had a credit card turned down at a restaurant or retailer because they don't take your particular credit card, here's why: in order to process credit card transactions, retailers pay a small percentage of the purchase amount as a fee that is payable to the credit card company. These fees are a significant profit center for the card issuers who have figured out how to co-op increased purchase activity be sharing a percentage of the merchants transaction costs with the cardholders. Ingenious, isn’t it?

If a credit card company has a cash back credit card that offers 5% of your money back on all gas purchases, you have a real incentive to buy gas from your local station more often and to buy it on credit. This means that the credit card company benefits, first because you're using their services more often (and thus accruing higher balances), and second because every time you use your card at a gas station, the station pays right along side you.

However, this is not a bad deal for the gas station, either, since more cardholders are frequenting their station and buying more gas, only a percentage of the price of which goes to the credit card companies. This means that they're more likely to deal with that particular credit card company, since doing so is now a powerful source of revenue for them (as well as a slightly more powerful source of expense.) And finally, once cardholders get their cash back, guess where they'll probably take at least a portion of it, using the freshly-added credit on their cash back cards?

It's a clever, yet symbiotic relationship. But everyone in the cash back credit card circle seems to benefit. The credit card company and the gas station generate more business, and the individual cardholder gets essentially a discount on purchases in the form of cash rebates or rewards. While the cost of these programs for card issuers will likely increase as more cardholders begin to understand and utilize these card products more effectively for their personal gain, the popularity of cash back credit cards with consumers is not likely to wane anytime soon. While not entirely altruistic, for everyone in the cash back benefit loop, cash back cards still make sense.

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Compare Credit Cards Before You Buy

Compare Credit Cards Before You Buy

2007-11-17T11:21:00.000-08:00

If you need a new credit card, it's easy just to fill in the first application form that arrives in your mailbox.

Easy, but wrong. Nowadays there are thousands of different credit cards available, all with different combinations of terms, offers and incentives. It's important to take the time to compare credit cards carefully, therefore, before you actually apply for one.

One essential fact to grasp is that there is no single "best" credit card for everybody. Different cards suit different purposes. Your aim should be to pick a card that will meet your current financial needs and is a good match with your personal circumstances.

If you are currently paying interest on credit or store cards, for example, then you need a credit card that offers 0% interest on balance transfers for up to 12 months. You can then transfer the debts from your other cards to your interest-free card, and aim to pay off the balance before the end of the interest-free period.

If you don't have any current outstanding debts, you could choose a card that offers 0% interest on spending for an introductory period (again, cards offering up to 12 months are available). Put all your everyday spending on the card during this period, and put the money you would otherwise have spent into a high-interest savings account. At the end of the introductory period, pay off the balance on the card and pocket the interest you have earned. Remember, however, that you will still need to make the minimum repayments required by your card issuer during the introductory period.

You could also look for a card offering cashback. This is a popular incentive offered by many credit card issuers. It means that for every dollar you spend, your card company will give you back a small amount, usually in a single payment once a year. The amount returned as cashback is calculated as a percentage of your total spending, and typically ranges from 0.5% to 2%. Some card companies pay higher rates of up to 5% for purchases in certain categories or made through particular retailers. In a year you can earn hundreds of dollars in rebates, but always pay off your balance at the end of each month, or interest charges will wipe out your cashback benefits.

Cashback is a popular incentive, but there are others that may be of greater interest to people with particular lifestyles or interests. Anyone who stays regularly in hotels, for example, might benefit from a hotel credit card, which allows you to claim upgrades, free meals and merchandise at the hotel chain concerned. Sports fans, meanwhile, can get credit cards linked to popular sports such as NFL and NASCAR. Every time you use one of these cards, you get reward points that can be exchanged for sports-related goods and even tickets to see the sport concerned.

Lastly, if you need to borrow over a long period at a low interest rate, consider obtaining a lifetime balance transfer card. The interest rates on these cards are as low as the best personal loans, but with the big advantage that you can choose how long you take to repay your debt.

So if you need a new credit card, do take the time to check and compare different credit card offers and see which one will suit you best. Independent credit card comparison websites can help by listing all the best current credit card offers, and they also provide independent advice and information.

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Business Credit Cards: Three Solutions to Business Difficulties

Business Credit Cards: Three Solutions to Business Difficulties

2007-11-16T02:03:00.001-08:00

Business credit cards can be one of the easiest ways for a new company to acquire needed financial capital, as well as an excellent way for existing companies to ease the transition into the Internet-age by simplifying the company purchasing process, making travel and expense accounting by employees all the easier. However, there are a number of other benefits to a good business credit card that companies can take advantage of in order to improve their financial stability and level of customer support still more, including rewards programs, variable credit limits, and multiple cards with fixed limits for different employees with different needs.

The most common business credit card rewards programs involve frequent flier miles, cash back rewards for gas and other travel expenses, and sometimes even office supplies or construction materials. This makes business credit cards ideal for virtually any type of business: investment firms can save a certain amount of money on the constant flights and travel necessary to attend faraway meetings. Furthermore, savings can be found as well on simple purchase items such as paper, toner, binder clips and other office supplies needed to keep any good corporate office running. But with the right kind of business credit card, even a small construction, landscaping or delivery firm can take a significant chunk out of their monthly gas or materials needs. The cash back isn't spectacular, with something like 1% - 3% cash back on purchases being the general standard. But if your business spends the entirety of a $10,000 credit limit in a month and receives a $300 rebate check over the course of that month,those savings can add up in a big way over time.

Variable credit limits are another advantage of a good business credit card. Often startup companies aren't sure, no matter how good their business plans, about exactly how much money they'll need in a given month, and in the case of certain industries (notably travel and tourism), business is tends to be a seasonal affair. At certain times, a $15,000 credit limit may be practical, but during the off season, you may find yourself with only $7,500 worth of expenses that need to be paid in credit. With a variable credit limit, you can spend however much or however little you want in a given month, as long as you're able to pay off the interest. Variable credit limits do come with a monthly fee for use, of course, but with the standard monthly fee falling somewhere in the $100 range, this should be an easily absorbable business expense, and an easy way to use business credit cards to make your accounting procedures and general operations run that much smoother.

Finally, business credit cards frequently allow multiple cards for use on a single account, each with an individually-defined credit limit. This allows you to allot only a certain amount of purchasing power to certain trusted employees, and is a very good way to control your company's purchasing operations and travel expenses without having to give each employee the same access to a single, high-limit credit account. Although you should always make sure that your employees can be responsible for their particular credit limit (since, in the case of startup businesses, a business credit card is most often placed in the name of an individual cardholder rather than in the business's name), business credit cards can help make your employees more autonomous, fostering a better work environment and requiring less time spent in tedious financial arrangements and year-end accounting crunches.

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TransUnion Leads Discussion of New Bankruptcy Reform at 14th Annual Credit Card Collections Conference; Online Collections and Scoring Expertise Also

TransUnion Leads Discussion of New Bankruptcy Reform at 14th Annual Credit Card Collections Conference; Online Collections and Scoring Expertise Also

2007-11-15T11:44:00.001-08:00

CHAMPIONSGATE, Fla. -- TransUnion, a leading global information solutions company, today led a general session panel discussion entitled "Gearing up for Bankruptcy Reform - A Unique Industry Perspective" at the 14th Annual Credit Card Collections Conference in ChampionsGate, Florida.

The panel was comprised of industry leaders from Citibank; the Association of Independent Consumer Credit Counseling Agencies; Money Management International, a credit counseling company; and a leading bankruptcy law firm. Participants discussed their respective roles in preparing for the bankruptcy reform laws that went into effect today. The panel also addressed new technologies and processes aimed at helping lenders, collection agencies and credit counseling companies more effectively work together in the post-reform environment.

Addressing a crowd of more than 200, panel moderator Mike Rosenthal, director of Debt Management Solutions at TransUnion, initiated the discussion by saying, "some innovative tools have entered the marketplace to assist credit grantors in devising treatment strategies that match an individual consumer's financial situation. Our panelists today represent industry leaders who are adapting and improving their roles based on this technology and on the needs of both consumers and businesses."

Earlier this year, TransUnion announced a debt management model, which credit counseling companies can use along with their core services to quickly assess whether consumers exhibit strong indicators for rehabilitation through temporary budget restructuring or a debt management plan. The score also assists lenders in making objective decisions to offer improved concessions, such as lower minimum payments, reduced interest rates or the removal of late penalty fees to those consumers who are most in need.

In addition to the bankruptcy reform discussion, TransUnion shared insights during the conference's "Collection Technology Showcase" on October 16. Michael Browning, president of TransUnion's direct marketing agency, Douglas-Danielle, contributed to a panel discussion on Online Collections. TransUnion offers an Online Payments solution that provides collectors with a customized Web site for collecting past-due payments that is cost-effective and less confrontational for consumers than traditional collection methods. Kevin Derbyshire, senior consultant in TransUnion's Analytic Decision Services group, shared his expertise in a panel discussion on Scoring and Strategy Management. In the scoring arena, TransUnion offers incidence-based models to help collections organizations identify which customers are most likely to pay in order to prioritize work effort and apply the most cost-effective treatment strategies.

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Global Grocer
Play your cards

Global Grocer: international shoppers click and buy from fledgling online food sellers

2007-11-15T11:36:00.001-08:00

Jacqueline Cubici-Gonzalez, a self-professed Interact shopping addict, visits a grocery store Web site once a week to buy meat, vegetables, canned goods and toiletries. But she doesn't have the items delivered to her home in Camberley, England. She sends them instead to her mother's home in Maracay, Venezuela, through the Web site of the Venezuelan grocery store El Plazas, ElPlazas.com.

"I used to send her money, but this way I have more control," says Cubici-Gonzalez, a Venezuelan who has lived in England for 14 years. "Knowing my mother, I had the feeling that when I sent her money, she would run out and not have everything she needed in the fridge."

Cubici-Gonzalez is part of a growing number of people outside Latin America using the Internet to send groceries to relatives in the region. It's an alternative to sending money that customers like because it lets them avoid fees charged by money-wiring services and ensures that their money is spent on food. And, at a time when many countries in the region are dealing with severe economic downturns, Latin Americans living abroad feel a great need to support family members in their home countries.

>From El Plazas in Venezuela to Peru's E. Wong, grocery stores throughout Latin America now accept Web orders paid with foreign credit cards. Argentina's Disco Virtual began offering service to foreign customers in March 2003, and Mexico's Gigante plans to begin in the first half of 2004. "I have clients from London, Spain, China, Japan," says Maria Teresa Mendez, e-commerce manager for El Plazas. The chain saw its overseas orders increase from virtually none to 6% of Web sales after Venezuela's political instability led to a recession in late 2002.

Disco Virtual, at discovirtual.com.ar, has about 1,500 foreign customers, says the Web site's director, Diego Baron. The store's marketing campaign targets Argentines living abroad by advertising in cities such as Miami, Madrid and Barcelona, where many Argentines have moved in the past three years following the country's debilitating financial crisis. The grocery store also advertises on Web sites that expatriates visit, such as Argentine newspaper sites.

Instead of just groceries, Disco Virtual also offers gift certificates for use in the grocery store. "People don't necessarily know what sort of food their relatives need, so they prefer to buy them vouchers," Baron says. "That way, they know they're not buying clothes."

Baron says he sees the overseas purchases as a niche market with significant growth potential. Web sales account for a small percentage of most grocery companies' annual revenues, and purchases by foreign customers are just a fraction of those Web sales. But companies are continuing to tap the foreign market, in part because Web sales within the region have been somewhat disappointing.

In theory, online grocery delivery businesses should fare better in Latin America than they did in the United States, where many flopped with the dot.com bust, perhaps for being overly ambitious. Many of the U.S. start-ups had no brick-and-mortar stores, counting solely on elaborate warehouses with fleets of delivery vehicles and an army of workers that proved too costly to maintain. In Latin American cities, labor is cheaper, distances are shorter than in U.S. suburbs, and the stores use existing in-store staff to fill Web orders.

Yet in Latin America there are not enough Internet users to support these businesses. And those who do use the Internet don't yet feel completely comfortable buying over the Web. "People in Mexico are afraid to give their credit card number online," says Ernesto Valdez, vice president of the Mexican Internet Association (AMIPCI). "We are working on a marketing campaign, educating people so that they understand that buying on the Internet is safe, that there is technology that protects credit card information."

Another problem for Web-based grocery stores in Latin America is demographics. The group of people using the Internet in the region is not the same segment of the population that does the grocery shopping. About 65% of Mexico's 10 million Internet users are between the ages of 18 and 34, and about 68% are men, according to a 2003 AMIPCI study.

Most grocery store shopping, meanwhile, is done by middle-aged or elderly women, says Carlos Gonzalez, e-commerce director at Gigante, whose Web grocery service has not made a profit since it started in 2001. But Gonzalez says he's willing to wait for his customers to come.

"Right now, the young Internet users are living at home with their parents," he says. "But as these new generations get married and have their own homes, Internet grocery shopping is going to Increase."

Play your cards
Password Profiler Secures and Automates Online...

Play your cards

2007-11-15T11:35:00.000-08:00

PURCHASING CARD PROGRAMS are moving to a new level of value. The first wave of change, which began about twenty years ago, put buying authority in the hands of front-line employees throughout their organizations. The benefits were clear: first, purchasing necessary goods and services became fast and convenient; taking even a part of the procurement process out of the paper-based world generated considerable savings in time and money; and, suppliers received payment almost instantly. Today, a second wave of purchasing card functionality is putting strategic information on the desks of senior managers. The difference is in the data.

At the most basic level of purchasing card use, managers receive monthly statements with "level one" data: date, supplier, dollar value and, of course, the name associated with the card, whether it is assigned to an individual employee or a work unit.

"Level four" data, on the other hand, is enhanced to the customers' specifications. Wendy Hall, Public sector Relations director at BMO ePurchasing Solutions said, "We may be the only provider that can pass level four data, custom data based on unique specifications of a client. An example would be time-sheets from a temp help agency, so we would work with the supplier and the government of Canada to deliver that custom data." she said.

Across levels one to four, there is a world of useful data, including order number, item product code, description, quantity, unit of measure and price. Managers can see where products are coming from and where they are going. If the organization is using temporary services, they can look up spending by individual contractor or the types of work performed. If materials are being sent out for analysis and testing, purchasing information could include tracking numbers. In fact, any information about a purchasing card transaction that can be described in alphanumeric terms can be delivered electronically.

Five years ago, when Ken Babich joined the purchasing services department at the University of Victoria, there were only about 70 purchasing cards in use on campus, with very restricted use, manual reconciliation and a monthly spend of only about $15,000.

Shortly after he arrived, he wrote a visionary article called "Bridging The Gap" that looked at the challenge of creating a seamless merger of purchasing card programs with enterprise resource planning (ERP) software to create an all-electronic process. At that time he wrote, "... purchasing cards should seriously be considered as the preferred method of purchase and payment." Since then, he has pursued that goal.

Today, there are 770 purchasing cardholders at the university and a total spend of nearly $4 million a year. And, best of all, "The entire process is electronic, from the actual commitment right to encumbering it in our budget."

Within the University of Victoria e-procurement website, an e-merchant site hosts the purchasing card solution. Employees use their purchasing cards to buy from approved vendors and each morning all the transactions for the prior period, including the day before, are reported.

"We take that information in spreadsheet format and we apply the tax tables to it, the PST and the GST, based on where the goods initiated from and so we have that all embedded in code through a product from a company called Millennium Computer Systems which is here in Victoria," Babich said. When data enters the financial software system, money immediately leaves the appropriate budgets.

As Babich said, "The end user can buy something today and within 24 hours, they can go to their financial statement, click on the transaction and see that it is a p-card transaction, what the value is and what it is for, all electronically. That was 'bridging the gap'."

Looking back, Babich said there is more to a solution than just technology. "One is the management of the program itself and the degree to which there is an entrepreneurial spirit attached to it. In other words, how willing is an organization to go ahead and engage technology, particularly p-card technology and some of the inherent risks that they think might come with it."

Once the gap is bridged, and data is flowing into an organization, the next step is to turn it into useful information. Brent Needham, the commercial solutions senior manager at Visa Canada said organizations really capture value with a fully automated procure-to-pay process.

"If you use an ERP system integrated with your electronic procurement system, and it automatically goes on a p-card, then it is much easier to take that enhanced data electronically and, if you're a compliancedriven organization, make sure people are in compliance," he said. "If you're an organization that really values strategic sourcing, you use that to figure out how much you're buying from suppliers and then try to negotiate better deals because you understand how much you're spending with each supplier over each twelve-month period."

Online Lenders
Password Profiler Secures and Automates Online...

Password Profiler Secures and Automates Online Passwords and Log-Ons

2007-11-15T11:27:00.001-08:00

Passwords are the most critical safeguard for your online identity, but you end up juggling dozens or compromising your security by using the same string for everything from your favorite news outlet to your online banking site. Or worse, faced with the fear of forgetting a critical password, you end posting the keys to your online well-being all over your monitor on sticky notes—not a secure password management strategy.

Let Password Profiler strip the little stickies off. Our latest PC Magazine premium utility will manage your passwords efficiently, easily, and securely, safely storing your log-ons, passwords, pin numbers, and other sensitive information in an encrypted file, and even letting you access and log on to your favorite Web sites with a single click. The utility can even fill in Web forms with any data you choose, including address and credit card information, if you desire.

Once you've downloaded Password Profiler from the PC Magazine Utility Library to a folder on your Windows 2000 or XP machine, unzip the file PasswordProSetup.zip and double-click on PasswordProfilerSetup.exe.

When you first launch Password Profiler, it will prompt you to create your Master Key—the password that, from this point on, will allow you access to the entire utility and all the information stored within it, including other passwords. Don't lose your Master Key! Without it, you cannot access information in the utility.

Note that we did not build in a method for you to regain your Master Key should you forget it, because such a capability would create a security hole an interloper could exploit. We strongly recommend that, when creating your Master Key, you use the helpful Hint option to enter a word or phrase to jog your memory should you forget your Master Key.

When setting up the utility, security junkies can pick which Crypto Service Provider and Encryption algorithm to use. Password Profiler lets you chose from the native cryptographic service libraries built into Windows (which you can read about in Microsoft's MSDN Library). For most users, though, staying with the utility's default selections is the best course.

Manage Passwords and Automate Log-On Sequences

Once you've set your Master Key, the Create Your Master Key window will disappear, replaced by the UserID/Password Manager window, where you can create, edit, and delete the profiles or sequences you use to log on to sites (or for other purposes). A profile can include any information—such as your user name, password and pin, the log-on URL, and more—required for a particular purpose. A profile may correspond to a specific Web site, but it doesn't have to. You can keep any personal information in Password Profiler that you wish. Examples we use in this article, however, will show how to create profiles for use with Web sites.

To add a Web site profile, click on the New button. The Add New Web Site Profile dialog will pop up. This is where you enter any information that the corresponding Web site requires for you to log on. You can also categorize the site profiles using the Category pull-down menu. To enter a new category, just type in the Category: text box. You do not need to hit enter. Completing any of the other fields and hitting OK records the new category automatically.

Filling Out a Web Site Profile

Site Name can be anything you wish; it lets you identify the site profile once you've stored it in the utility. URL should be the address of the log-on page for the Web site you're profiling. Sometimes the URL of the homepage will work, but the typical sign-in page URL is usually different. In the case of PC Magazine, for example, the log-on page URL isn't http://www.pcmag.com, but http://www.pcmag.com/sign_up/0,3017,,00.asp?success_page=/default/0,1007,,00.asp. The best strategy for obtaining the correct address is to navigate to the sign-in page of the site, copy the URL from the browser, and paste it into Password Profiler.

Enter your Web site user name in the User ID field, and of course, your password into the Password field. Reenter your password into the Repeat Password text box to insure that you haven't typed incorrectly, since the actual characters don't display. The Pin # field gives you a place to enter a personal identification number for Web sites that require one, and the Misc text box lets you add one other piece of unspecified data a site may demand. In the Comments area, you can make any notes you may wish to keep.

Online Lenders
HSBC Credit Card Lending

Online Lenders: Bidding for You - Internet bids for mortgages

2007-11-15T11:26:00.001-08:00

But you can't compare rates until after you've filled out the application.

Can the same online auction techniques that work for buying Beanie Babies and baseball cards work for the largest financial transaction most people ever make? Maybe--but for now, don't take the "name your price" pitches for online mortgages too literally.

At least two Internet sites promise to put your mortgage application on the block to get you the lowest interest rate. MortgageAuction.com guarantees the lowest rate and backs it up: If you find a better deal elsewhere, MortgageAuction.com promises to pay $250 toward your closing costs. Unfortunately, you have to complete a lengthy application to get rate quotes.

The site puts your application up for auction, along with your credit scores, for 24 hours. Currently, up to 50 lenders--depending on how many are licensed to do business in your state--can bid on your loan.

MortgageAuction.com reviews the bids and proclaims the one with the lowest annual percentage rate (APR) the winner. Borrower and lender are each notified by e-mail. You won't have any credit-application fees charged to your credit card unless you agree to proceed.

APR, however, is not as useful a gauge for mortgages as it is for other types of credit, mostly because people tend not to keep the loan for the full 30 years on which the APR, which includes points, is figured. If you plan to keep the loan only a couple of years, a low- or no-points loan (with a higher APR than a lower-rate loan with points) could be the cheaper deal.

You take more risk with Priceline.com. The site asks you to name your interest rate and terms. In practice, however, you're more likely to get a counteroffer from one of up to four lenders who review your bid (and your credit scores). You can choose whether to accept the counteroffer, but the rate is not guaranteed until you lock in later.

A lender who accepts your offer through Priceline.com may charge a $200 application fee to your credit card. You won't be told whether it's refundable until after you are charged. Typically, the tee will be credited toward closing costs if you choose the loan.

What if you bid too high? Mitchell York, president of LendingTree Inc., the company that handles mortgage auctions for Priceline.com, says that borrowers who bid too high have actually been countered with lower deals. "If they qualify for 7%, they're going to get 7%," he says.

GIVE THEM A PASS. One of the biggest drawbacks of the online-mortgage sites is that you have to take them at their word that they can find the lowest rate--at least until after you've applied and allowed them to pull your credit report. Repeated credit inquiries can damage your credit score, although inquiries for mortgages and car loans in the past 30 days don't count against your score. And inquiries clustered within a 14day period count as only one inquiry.

Do Stores Guard your Data?
HSBC Credit Card Lending

HSBC Credit Card Lending - the Military Concern

2007-11-15T11:15:00.000-08:00

HSBC bank, one of the 10 giant financial services organizations, is well known for its wide range of personal financial services, private, commercial and mortgage banking. It is the third biggest provider of sub-prime lending but it is also abundant in good and excellent credit card applications displayed on the market.

HSBC credit card offers are generally designed for various credit consumer groups with individual social and financial backgrounds and up to very recently there has been an overall satisfaction with their services. However, there have appeared a number of complaints relating the bank's policy concerning low-income customers from ethnic minorities and, which is especially disappointing, the US military members.

HSBC has been accused of applying predatory practices towards the US military personnel who are on the watch or duty in Iraq. How is it expressed and how are soldiers affected under the new arrangement which is a serious violation of Servicemembers' Civil Relief Act?

If you have ever heard of the Act, you probably know it is a legislation providing for the ease of the economical and legal pressures on the military personnel who are on the active duty in Iraq (Operation Iraqi Freedom).

In point of credit cards, mortgages and other loans, the Act required companies to restrict interest rates on the balances to a maximum of 6% a year, no matter what part of the military service period a soldier is carrying.

Now, HSBC is reported to be floating the rule and keeping the interest rates too high for most of the military to manage. Thus, they plan to make more revenues from the bad debt interest rates collected with servicemen and women.

Just for comparison, let's take Chase bank that has gained firm recognition among military members for the caps on the interest rates and even abolition of credit card late payment fees.

HSBC, on the contrary, is blamed by soldiers' wives for continuing to charge unmanageable high rates. Once a soldier cannot repay the debt, his account is handed over to debt collection agencies.

The most deploring thing is that the military debts were incurred through no fault of the cardholders - when they were wounded and couldn't make payments - but they were still subject to the tough actions of the debt collectors.

Well, as long as HSBC is quite loyal to its other consumer categories, businesses and students, offering them lowest APRs, no annual fees and frequent flyer rewards, the military sector seems to be discriminated.

So, HSBC's relationship with the US military is declared to be a sham and the servicemen's credit troubles are openly ignored even though these servicemen help to invest the company in the Middle East.

If we restrain from making any undisputed conclusions, we can suggest the following. HSBC is attempting to make more profit in Iraq and Iran at the expense of the US military. But to succeed in their enterprise, the bank needs to have support from the rest of the American consumers.

So, it will continue courting its customers with irresistible credit card terms and various benefits.

Do Stores Guard your Data?
A credit card crunch coming?

Do Stores Guard your Data?

2007-11-15T04:56:00.000-08:00

Credit card companies regularly warn consumers about how to protect themselves from fraud when using plastic: scour statements for unauthorized purchases, shred paperwork that includes account numbers and don’t leave bills or cards on the kitchen counter when people are in your home.

But shoppers are pretty much left in the dark if they want to know if a store is keeping their credit card and debit-card transactions secure. There are a few things savvy consumers can do to check up on a retailer’s security practices before plunking down their plastic.

The card industry itself is cracking down on merchants who don’t follow industry guidelines known as the Payment Card Industry Data Security Standard, or PCI. Starting this month, Visa Inc. will start levying fines of $25,000 a month for noncompliance.

Merchants who accept plastic must install firewalls and take other measures to keep computer systems safe from hackers. They aren’t allowed to store certain sensitive data that hackers can use to make phony purchases or produce fraudulent cards.

Merchants, unfortunately, have been slow to respond. Of the 327 largest merchants, just 44% of them have validated their compliance, according to Visa.

The card companies won’t tell you who’s still breaking the rules. “Disclosing the name of compliant merchants would be like drawing a road map for the thieves,” says a Visa spokeswoman. Cardholders aren’t liable for unauthorized purchases.

Merchants also tend to be tight-lipped for similar reasons. That pretty much leaves it up to the consumcredit er to figure out. It’s not easy: Shoppers can’t see inside a merchant’s computer system.

But there are a few things to watch for.

First, industry rules and federal law prohibit merchants from printing more than the last five digits of an account number on a customer receipt. So the first clue: If a merchant is printing too much data on receipts, chances are that’s not the only hole in its system.

Look at the equipment. If the cash register has one of those old-fashioned green computer screens, chances are its security is also from a bygone era. Card-swipe devices should be enclosed in tamper-proof plastic. And as silly as it sounds, if the swipe device “looks old, dusty and dirty, it probably hasn’t been retrofitted,” says one security expert.

Some online merchants have seals on their Web sites that provide security credentials. Designersreplica.com, which sells sunglasses, has a small “credit card guard” insignia on its Web site that identifies it as a “PCI Tested Website.”

“We believe that merchants enjoy more sales because they show they are PCI-compliant,” says Michael Johnson, chief executive of ComplyGuard Networks, a New York company hired by merchants to test their systems. Next month, ComplyGuard will start providing “no-fraud zone” stickers to brick-and-mortar customers who comply with the rules.

The fact is, there are still too few guarantees when it comes to card security. Except, of course, for the foolproof method: Pay with cash.

By Robin Sidel
Credit Card Scammer Must Repay $12 Million
New Weapon against I.D. Theft?
A credit card crunch coming?

Credit Card Scammer Must Repay $12 Million

2007-11-15T03:19:00.000-08:00

The FTC wins another round! Peter J. Porcelli II was ordered to repay nearly $12 million that he had obtained through fraudulent practices. His Florida companies, Bay Area Business Council, Inc. and American Leisure Card Corp., offered low-interest, unsecured credit cards over the phone. Customers who took the bait paid between $199 and $400, which was taken from their bank accounts.

But instead of receiving their credit cards, customers received “dummy” cards bearing the MasterCard logo and the name of one of Porcelli’s businesses. The cards also had non-magnetic black strips to make them look more convincing. The FTC web site describes what happened next:

“When consumers complained or tried to activate the card they were told for the first time that, for an additional fee, they could obtain a debit card, but never a credit card. The defendants also did not tell consumers that in addition to the requirement that they deposit their own money in advance for any purchases they wished to make with the debit card, they would pay substantial fees every time they attempted to use the card.”

Porcelli’s other business interests named in the case include Bay Area Business Council Customer Service Corp.; Bay Memberships, Inc.; Bay Vacations, Inc.; Sr. Marketing Consultants, Inc.; and Special Technologies, Inc.

New Weapon against I.D. Theft?
A credit card crunch coming?

A credit card crunch coming?

2007-11-11T07:01:00.000-08:00

Some homeowners struggling to keep up with their adjustable-rate mortgages are choosing a short-term fix that will only compound their troubles down the road, consumer protection experts say.

“We’ve had some people who are using their credit cards to cover basic living expenses so they can actually make their mortgage payments,” Rebecca Palmer, director of education for Consumer Credit Counseling Service of New Hampshire and Vermont, told the New Hampshire Sunday News. “It’s absolutely horrifying.”

“Because the thing is, they’re digging a deeper hole instead of finding a solution to the problem,” she said.

Counselors at her organization, which provides free, confidential counseling, are increasingly hearing from homeowners that they are taking cash advances on credit cards to make their monthly mortgage payments — or even contacting their mortgage companies to see whether they can pay with a credit card, Palmer said.

“Unfortunately, they don’t realize how much worse they’re going to make it for themselves,” she said.

David Deziel, director of communication and development for CCCS NH-VT, said the agency recently counseled one such family from Alton.

“Their monthly mortgage payment right now is a little over $3,100 a month, and these are folks whose household income is under $100,000,” he said. The married couple, who are in their 40s and have two children, are also paying off a home equity loan.

When the wife became ill, Deziel said, “They started making heavy use of credit cards to make ends meet.”

And by the time they came to the credit counseling agency for help, “They had almost $23,000 in outstanding credit card debt.”

Another recent client with an adjustable-rate loan had seen his mortgage payments jump from $900 a month to $1,700 a month — with a 14 percent interest rate, Deziel said.

The trend is bad news, said David Rienzo, assistant attorney general in the Consumer Protection and Anti-Trust Bureau at the AG’s office.

“If you can’t pay your normal monthly expenses and your mortgage, the smart thing to do is go get some credit counseling right away, rather than use a credit card until you not only can’t afford the mortgage but also now are stuck in over your head on a credit card as well,” Rienzo said.

Mortgage payments typically include both principal and interest, he pointed out; putting such payments onto a credit card means you’re paying interest twice.

According to Deziel, there are several “trip wires” that can increase your interest rate on a credit card, such as exceeding your credit limit or making a payment late. “That rate can jump to 28, 29, 30 percent on all of your outstanding balances,” he said.

According to Rienzo, credit card companies are bound by the laws of the states in which they are headquartered. And some states, including New Hampshire, do not have usury laws, so there’s no cap to the interest rates the companies based in those states can charge.

Taking on credit card debt will also worsen your credit score, Rienzo noted, which could increase the cost of future borrowing.

And then there’s something called “universal constructive default,” which, Rienzo explained, means if you default on one credit card, your other card companies can raise your interest rates too.

Recent changes in bankruptcy laws have also made it more difficult to walk away from credit card debt, experts say.

Dan Hebert has 23 years of banking experience, and is now president of New Hampshire Jumpstart Coalition, an all-volunteer organization dedicated to improving financial literacy for children.

Hebert noted a recent report by Mintel International Group, a consumer research company, found that credit card companies are actually pushing subprime borrowers to open new accounts.

The report found direct-mail offers from card companies to these borrowers rose 41 percent in the first half of 2007, while offers to customers with the best credit fell by 13 percent, according to published reports.

Subprime borrowers typically pay higher interest rates on credit cards because of poorer credit scores, and are more likely to only make minimum payments, which extends their card balances, Hebert said.

Deziel’s advice: “If you’re tempted to use your credit card because your mortgage payments have become too high, just stop yourself for a moment and think about what the problem is. The problem isn’t that you’re spending too much on groceries; the problem is the mortgage.”

And that’s where homeowners need to start, by contacting their mortgage companies to try to restructure their loans and avoid foreclosure, he said.

His agency can help consumers, but they need to seek help early, Deziel stressed, before the debt load becomes insurmountable.

He noted CCCS often gets calls from people whose homes have already been advertised for foreclosure auction.

“At that point, it’s too late. There really isn’t much we can do about it.”

As bad as the subprime mortgage mess has been so far, Hebert says the worst is yet to come. “The other shoe to drop will be a spike, in another 18 months, of bankruptcy filings for folks who weren’t able to hold onto those homes,” he predicted.

By Shawne K. Wickham

Credit Card Scammer Must Repay $12 Million
New Weapon against I.D. Theft?
Revolution Online Money Transfer Service...

New Weapon against I.D. Theft?

2007-11-10T01:04:00.000-08:00

Before you begin your holiday shopping, there’s one thing you should strongly consider doing — and it’s not making a list!

Evidence suggests that more people have their identity stolen during the busy shopping season than at any other time of year, and that could be a big, expensive headache.

But, The Early Show money maven Ray Martin explained Thursday, there’s a new way to protect yourself.

It’s called a credit freeze.

Although it’s been available in some states, now everyone in the country can shut down access to his or her credit report, thanks to a move by credit bureaus last week.

A credit freeze, Martin points out, is exactly what it sounds like: It prevents potential new creditors from accessing your credit report without your explicit permission. That means no one can use your name to take out a loan or sign up for a credit card.

Ray says it’s a fabulous idea, and he plans to sign up immediately himself.

He stresses that we’re talking about preventing identity theft here, not preventing credit card fraud. Freezing credit does NOT someone from getting your credit card number and using that information to charge things. However, it WILL stop someone from opening new credit accounts in your name, putting their utility bill in your name, etc.

In general, identity theft is much more serious than credit card fraud. There are express limits in the law on your liability in the event someone uses your credit card number, but no such limits exist for I.D. theft, and you might not even realize your identify has been stolen for long periods of time.

A credit freeze, Martin observes, is like the ultimate lock-box around your precious credit report. However, the freeze also stops you from accessing the report.

Let’s say you walk into a department store, do a lot of holiday shopping and decide to open a store credit account in order to save 10 percent on your purchases. You wouldn’t be able to. You can’t apply for and receive instant credit like that. Instead, you would have to call the credit bureaus beforehand, ask them to lift the freeze, apply for the credit, then have your accounts re-frozen.

There’s the other catch: You must pay each of the three credit bureaus $10 to freeze your credit. You also have to pay to lift the freeze. For a couple, that means $60 to enact the freeze, $60 more if they want to apply for a loan and lift the freeze, then $60 more to reinstate the freeze.

But, if you’ve been a victim of identity theft, it’s all free.

More good news: All states have different rules, so the standard $10 fee doesn’t apply across the country. In some states, the service is offered for free, and others charge only $5.

Regardless of some of the apparent hassles, Martin says everyone should freeze their credit reports before doing any holiday shopping. In particular, he recommends that anyone who has been a victim of identity theft sign up for a credit freeze immediately. That also makes a lot of sense for kids, who are a growing target of I.D. thieves and won’t be applying for credit anytime soon. It could also be a good option for “mature” creditors — adults who don’t plan to apply for a loan anytime soon.

But, Martin notes, even if you do intend to apply for credit soon, you shouldn’t dismiss this new opportunity: The associated fees are small compared to what it will cost you in both time and money to straighten out a stolen identity.

To have your reports frozen initially, you need to send a certified letter to each credit bureau. Check out each bureau’s Web site for details on what needs to be included in the letter. For the most part, they need very basic information, such as your Social Security number, birth date, etc., and a copy of your drivers license and/or utility bill.

A credit freeze is the only thing you can do to stop identity theft before it begins. But, if the credit freeze sounds a little extreme for you and you still want to do something to protect your identity, you have two other options, Martin says.

You can institute a “fraud alert,” a special message you request be placed on your credit report, requiring lenders and merchants to verify your identity before issuing any new credit. This is free, but there’s a chance lenders could ignore the alert. And you could sign up for credit monitoring, and pay a credit bureau $5 to $15 a month to send you an e-mail alerting you to any changes in your credit report. That could alert you to unusual activity, such as a card being opened in your name that you didn’t know about.

by Ray Martin
Credit Card Scammer Must Repay $12 Million
Applying for Another Credit Card...
Revolution Online Money Transfer Service...

Revolution Online Money Transfer Service against PayPal?

2007-11-09T05:05:00.000-08:00

The company is marketing its new RevolutionCard credit card payment service as a more secure option to traditional credit cards from MasterCard or Visa.

Startup Revolution Money, an online payment service that’s up against eBay’s popular PayPal, launched on Thursday as a new alternative money-transfer service.

The company’s Revolution Money Exchange service enables subscribes to transfer money from their bank accounts to each other. People interested in the service, which is available at no charge, must sign up through the company’s Web site.

Revolution Money is a subsidiary of Revolution LLC, an investment company formed by Steve Case, AOL co-founder and former chairman and CEO. The subsidiary hopes to reach young adults on the Web who are active in social networks and other online communities.

“We want to become for social networks what PayPal is for EBay,” Ted Leonsis, chairman for Revolution Money, said last month at the Web 2.0 Summit in San Francisco.

The company has recently launched a RevolutionCard credit card that the payment service is marketing as a more secure option to traditional credit cards from MasterCard or Visa.

“First, the card itself is anonymous, so it doesn’t have the cardholder’s name on the card,” Jason Hogg, CEO and founder of Revolution Money, told InformationWeek in a recent interview. “Nor does it contain any information about the cardholder in the magnetic stripe.”

In addition, the card cannot be used without knowing the user’s personal identification number, and it displays what the company calls a “disassociated account number,” which means that the number on the card is not the actual account number.

Revolution Money hopes to interest merchants with an interchange fee of 0.5%, which is considerably less than the 1.9% charged to merchants by other credit card companies. The company’s initial distribution platform is AOL’s instant messaging server AIM. A link to Revolution Money is available through the AIM client.

In trying to grab a piece of the online payment market, Revolution Money is competing against far larger players. eBay-owned PayPal is the dominant service with 143 million user accounts worldwide.

Google (NSDQ: GOOG) has an online payment service called Google Checkout, launched about a year ago. That service, however, has yet to make any headway against PayPal.

In addition, Google has filed an application with the U.S. Patent and Trademark Office for a mobile payments service that would allow users to make payments at retail shops using their mobile phones.

by Thomas Claburn

A credit card crunch coming?
Applying for Another Credit Card...
Playing the Big Game with Rewards Credit Cards...

Applying for Another Credit Card to Make Ends Meet?

2007-11-08T11:18:00.000-08:00

America is a truly wealthy country - it is irrefutable. But can the same be said about its residents, common consumers? Where is most customers' money concentrated and who actually owns it? It appears, and it is also irrefutable, that most people live on credit borrowed from a bank or credit card company and these institutions are the real owners of the national money.

It has been assumed that applying for credit cards became a common way for many American households to make ends meet. Demos, a think tank where social and political changes are analyzed, has published a report documenting this reality based on the indebted household's income, age and race.

Facing a steep rise in costs for healthcare, education, home partnership and fuel on the one hand, and continually flat wages on the other, the average American family had to turn to a credit card as a rescue in most hard financial times.

Lots of outside observers are convinced that most credit consumers in the USA are addicted to credit cards just out of their "get now and pay later" inclination. But not many seem to be aware of the actual reason for making the first credit card application.

In most cases, it is not the lavish credit card rewards and not the all-round acceptability and convenience of use. Many customers may have first applied for a bank card to be able to pay for groceries or for utilities or gas. The situation has not changed and consumers are becoming more and more dependent on the small plastic in their pockets which allows them to pay for everyday small but necessary expenses.

This habit initiated and still keeps up the consumer's bad debt, known simply as credit card debt. According to the Federal Reserve's survey of 2004, three out of every four American customers carried at least one credit card and since then the number of plastic cards per household has been rising, adding up to the huge national credit card debt.

Following from this, there turn up big questions - is borrowing to make ends meet paying its way? Does credit really give rescue? Have American families got any relief from the ever growing financial pressure or have they got poorer giving the last they have to the credit card companies?

It appears the answer lies in the behavior of the cardholders themselves. Credit card misuse, that is spending in excess and not paying the balances, causes an even worse financial situation. Smart users, on the other hand, enjoy various credit card benefits and dictate their own rules to the lenders. Smart users never forget that companies are always ready to challenge their spotless behavior and charge them exorbitant fees and charges which first appeared in the time of credit card industry deregulation.

The deregulation shifted credit companies' priorities and prompted them their present-day predatory policies however avoidable for disciplined cardholders.

Many people today have forgotten about the ringing cash in their pockets, depending on the convenience and benefits of credit cards. But they should never forget that a plastic card is most useful in urgent situations - not at a nearest fast food - that's how it helps you make ends meet.

The Next Subprime Crisis?
American Families Rely on Credit Card Debt to Make......
Playing the Big Game with Rewards Credit Cards...

Playing the Big Game with Rewards Credit Cards Issuers

2007-11-08T05:17:00.000-08:00

How many credit cards are their in your wallet? What do you use them for and do you carry balances on them? These simple questions show whether you can qualify for rewards credit cards and how well you can play the big game with the credit card issuer.

Once you apply for a rewards credit card, you join a big and risky game of drawing credit company's interest over to your side. What interest are we talking about? The interest of making more revenues from keeping you paying high-sky rates and fees of rewards credit card or just cutting down the rewards. In both the cases the lender wins.

However, there are some lucky and credit smart customers who venture to play the credit card rewards game and, following the right tactics, they come out as winners. The number of such cardholders is still rather small and credit companies are taking all the possible measures to prevent their spreading.

Why do credit card companies renounce the rewards they initially offered in their credit card application? Why is the amount of cash back reduced and why are frequent flyer points so hard to redeem?

The answer is simple. Credit companies give up any of their programs if it does not bring revenues. Wisely used credit card rewards have recently made up a segment that is too expensive and even unprofitable for the lenders to maintain.

Customers who have decided to join the game have worked out firm rules of managing rewards credit cards right, and the issuers started to lose revenues. Let's have a look at these rules which are as valuable as interesting, considering that rewards cards have often been one of the most effective ways of taking a customer to debt.

* A wise and provident customer who hopes to earn and redeem credit card rewards knows it beforehand that carrying balances is not the right strategy. To be more exact, it is utterly intolerable with rewards cards. APRs on such credit cards are so high that once you miss a payment, all that you earn later on will never make up for what you've paid in interest.
* The most gaining cardholders are those who spend big amounts on their credit cards. The more dollars you spend, the more point rewards you usually get. If you charge little, a reward credit card becomes useless piece of plastic.
* Customers who want to make sure they get a reward in the long run get a cash back credit card. Just imagine that paying at certain retailers with the Chase rewards card or a Discover card, you are eligible for a 5% cash back which can be claimed or added to your credit card account.

When a credit cardholder sticks to these rules, a credit card company begins to lose revenues. That is the reason why creditors are cutting off cash back from 5% to 2% or toughen the terms for redeeming earned points for a free airline ticket. Or they jack up APRs or charge huge annual fees to compensate for losses.

In any case, there is a golden rule for rewards credit cardholders - paying off the whole balance every month, you do not pay extra in interest and thus, there is always a chance that you will be rewarded as generously as you spend.

The Next Subprime Crisis?
American Families Rely on Credit Card Debt to Make......
Is the use of credit card info legal?

American Families Rely on Credit Card Debt to Make Ends Meet?

2007-11-08T05:06:00.000-08:00

Americans’ Credit Card Debt Grew by 315 Percent-to $876 Billion-Since 1989; Families Depleting Home Equity to Cope.

American families are using credit cards to bridge the gaps created by stagnant wages and higher costs of living and balances have grown dramatically since 1989, according to a new report published today by Demos. “Borrowing to Make Ends Meet: the Rapid Growth of Credit Card Debt in America” documents the disturbing trends in sky-rocketing credit card debt, and also provides detailed data based on age, race and income demographics. The report discusses how these trends relate to the housing market crisis and the increase in predatory and sub-prime lending in the financial services sector.

Since “income volatility”, or the rate of fluctuation in family incomes, has almost doubled in the last two decades while wages have remained flat, families have turned to credit cards as a safety net in tough financial times. As of 2004, when the most recent Survey of Consumer Finances was conducted by the Federal Reserve, three out of every four American households had a credit card. The average debt among households with balances is $5,219. In total, American cardholders owe a staggering $876 billion on their credit cards.

“There’s a common misperception that families with credit card debt live beyond their means,” said report author and Demos Senior Policy Analyst Jose Garcia, “but the findings presented here show that credit card debt is a serious and quickly growing problem for millions of families who don’t have enough income to cover the basic costs of living.“

Borrowing to Make Ends Meet shows how credit cards aggravate the financial distress many households now feel—as healthcare, education and fuel costs rise and mortgage payments reset upward—by trapping cardholders in a cycle of debt with unnecessarily punitive fees and interest rates. Exorbitant charges were not always the industry standard; deregulation in the 80’s and 90’s enabled companies to raise rates far in excess of the risk factor of unsecured debt. Between 2004 and 2005, credit card issuers took in $8 billion in fees alone.

To cope with the rising pressure of credit card debt, and after exhausting other income and assets to meet unexpected costs, America’s families have turned to the equity of their homes. Over the last six years homeowners have cashed out a $1.2 trillion (2006 dollars) in equity, further endangering their financial well-being.

Faced with limited or non-existent assets, rising costs, sluggish wages, and increasing credit card debt, many Americans live on the brink of financial ruin. Borrowing to Make Ends Meet documents this reality by providing data on credit card indebtedness by household income, race/ethnicity, and age.

KEY FINDINGS (all figures in 2004 dollars, unless otherwise noted):

* Between 1989 and 2006, Americans’ overall credit card debt grew by 315 percent from $211 billion to $876 billion (2006 dollars).
* From 2001 to 2006, homeowners cashed out $1.2 trillion (2006 dollars) in home equity, often in an effort to cope with mounting credit card debt and to cover basic living expenses.
* Nearly six out of 10 households with credit cards revolved their balances in 2004. The average amount of credit card debt among those households reached an all-time high of $5,219, an increase of 89 percent from $2,768 in 1989.
* From 1989 to 2004, the percentage of cardholders incurring fees due to late payments of 60 days or more increased from 4.8 percent to 8.0 percent.
* In 2004, the average credit card-indebted family allocated 21 percent of its income to servicing monthly debt compared to the 13 percent dedicated to debt payments among all households.
* In 2004, 46 percent of very low-income (under $9,999) credit card-indebted households spent more than 40 percent of their income to pay off debt.
* From 1989 to 2004, credit card debt among very low-income households quadrupled from an average of $622 in 1989 to $2,750 in 2004.
* While white households carry more credit card debt, African Americans and Latinos have a higher percentage of credit card-indebted households. In 2004, of those with credit cards, 84 percent of African-American households and 79 percent of Latino households carried credit card debt compared with 54 percent of white households.
* Over 90 percent of African-American families earning between $10,000 and $24,999 had credit card debt.
* Since 1989, Americans over 65 have experienced the greatest increase in the amount of credit card debt carried. The average balance for this age group increased 194 percent from $1,669 in 1989 to $4,906 in 2004.

Borrowing to Make Ends Meet: the Rapid Growth of Credit Card Debt in America argues for a legislative overhaul to restore fairness in lending practices with a proposed Borrowers Security Act. It also urges Congressional leaders to address the economic factors behind rising debt by promoting increased savings, improving wages for working families, strengthening the unemployment insurance safety net, and tackling the problem of health care costs and insurance.

“Addressing the debt crisis is long overdue,” said Tamara Draut, Director of Demos’ Economic Opportunity Program. “Using credit cards as a way to make ends meet should not be a part of everyday American life. Neither should borrowing against your house to cover credit card debt or to deal with rising costs. It’s time that policymakers recognize the full context of the economic forces hitting the average household today, and take innovative steps to provide stability and opportunity to all families before this credit crisis worsens.”

To view the full report, Borrowing to Make Ends Meet: the Rapid Growth of Credit Card Debt in America, visit demos.org.

The Next Subprime Crisis?
Credit or debit?
Is the use of credit card info legal?

The Next Subprime Crisis?

2007-11-07T05:07:00.000-08:00

At 3:40 am on Friday morning, Former BestBank owner Edward Mattar took a hammer and smashed out a window of his 27th floor, Denver apartment. He then leaped to his death, landing in the courtyard in front of the building.

Mattar had run out of options. It was either this or face a 14-year jail term for fraud.

The bank, once labeled as one of America’s most profitable small banks, paid high rates of interest to attract deposits, then turned around and issued more than 500,000 credit cards to credit-challenged borrowers. As losses mounted, Mattar and fellow defendants hid the numbers from regulators while receiving performance bonuses.

Giving credit cards to subprime customers was a poor business decision by Mattar, but it is a lesson that Wall Street has yet to learn.

Bill Gross, the chief investment officer of one of the largest bond funds in the world, said this morning that the subprime-mortgage market was a “$1 trillion problem … There are $1 trillion worth of subprimes and Alt-As and basically garbage loans.” He expects another $250 Billion in losses from the subprime mortgage crisis.

It’s because of these massive losses that so many investors have turned away from the mortgage-backed securities that Wall Street has been peddling for years now.

The problem is that Wall Street is addicted to the high rates of return on these risky bonds. They just can’t help themselves when it comes to making a quick and easy buck.

You see low-grade, subprime debt means high interest rates, and therefore high return on investment (assuming the borrower can maintain the payments). That’s what makes it attractive.

So as investors all over the world turn away from buying subprime, mortgage-backed securities, Wall Street has turned to another market that is even riskier.

It isn’t just Wall Street that is addicted to cheap credit. Main Street is too. For years the American consumer has been sucking equity out of his/her home in order to pay for a lifestyle that he/she can’t afford.

But now that overvalued homes aren’t rising in price anymore, and in fact are starting to fall, the overstretched consumer can no longer extract equity to pay the bills.

Normally this would mean that the American consumer would cut back on expenses and start saving money. That’s how it has typically worked in history.

But instead, the consumer has turned to the most destructive of all types of debt - revolving credit.

Unlike mortgages, credit card debt is unsecured. So a default on this kind of debt means a total loss for investors (as opposed to mortgage debt, where a home auction could at least partially reimburse the bond holder).

Turning to credit cards to maintain a lifestyle that you can’t afford is financial suicide. Credit card interest is typically more than double the most risky of subprime mortgages. Once a consumer has gone too far down this path their bankruptcy is assured.

Of course it is also suicide for the lending institution. But like the consumer, American banks are dependent on those high-yield products, despite the near certainty of rising defaults and losses.

So why is the consumer taking this self-destructive path?

As Bonddad has so eloquently explained, wages aren’t keeping up with the cost of living.

The consumer cannot afford the lifestyle that he/she is accustom to. They are already starting to cut back on luxuries, but that isn’t enough. So instead of humbling him/herself, they are taking on debt to meet their basic needs.

Credit card debt growth is accelerating at a time when retail sales growth is slowing suggests that more consumers are turning to their cards to finance their basic monthly cash flow. As I have said previously, it appears that the credit card banks have become the consumer lender of last resort.

But credit card companies are blood-suckers. They are today’s equivalent of a legal loan shark. This is not sustainable and is sure to end in tears.

US banks… are adding to reserves not just for defaults on mortgages, but also on home equity loans, car loans and credit cards.

“What started out merely as a subprime problem has expanded more broadly in the mortgage space and problems are getting worse at a faster pace than many had expected,” said Michael Mayo, Deutsche Bank analyst.

“On top of this, there is an uptick in auto loan problems, which may or may not be seasonal, and there is more body language from the banks that the state of the consumer was somewhat less strong [than thought].”

by Garrett Johnson

new online credit card company?
Credit or debit?
Is the use of credit card info legal?

Is the use of credit card info legal?

2007-11-06T03:08:00.000-08:00

“First, it is true that if you walk up to a cash register at an Apple Store with $399 in cash [to buy an iPhone], you will be told that you need a credit or debit card,” David Berlind blogs for ZDNet. “As I’m taking four $100 bills out of my pocket, the clerk informs me that I must pay with a credit card.”

“Just as interesting however is the fact that you don’t need a credit/debit card for the entire purchase. When it became clear that my $399 in cash was no good at the Apple Store (for an iPhone), the clerk that I spoke with suggested that I pay $1 of the purchase price with my credit card and the rest in cash. This of course makes it clear that Apple needs the information on your credit card for something important,” Berlind writes. “But what?”

“Apple apparently is in a bind right now. It’s in a cat and mouse game with hackers who have made it possible to divorce (”unlock”) Apple’s iPhones from the AT&T wireless service that Apple is contractually bound to keep the phones married to,” Berlind writes.

Berlind writes, “As far as unique indentifiers go, credit cards are a pretty good token for authenticating someone’s identity. At the very least, Apple is probably retrieving (from the credit card) and keeping the name of every person who buys an iPhone. This way, when you go to buy another one, they can see if an iPhone has already been purchased by someone with the same name. But then comes the question of whether they are retaining your credit card number as well. How could they not?”

“Although nobody has yet to go on record, as it turns out, there’s a security and privacy standard called PCI DSS that practically every participant in the credit card ecosystem is required to adhere to. As far as I can tell, the standard policy potentially yields two important results. First, it protects the privacy of cardholders. Second, it helps merchants and card issuers manage risk,” Berlind writes.

“If Apple is using credit card numbers for the purpose of tracking (as seems to be the case here) — that Apple might not only be in violation of PCI DSS, it could also be breaking some laws (some of which are based on PCI DSS) as well as breaching the terms of its agreements with card issuers and credit card companies,” Berlind writes.

by David Berlind

new online credit card company?
Credit or debit?
What about credit scores?

Credit or debit?

2007-11-05T02:09:00.000-08:00

There are some questions concerning the use of debit cards. An Arcadia man said he used a debit card to purchase an item he never received and was looking for help in getting his money back.

Whether it’s at the gas pump, grocery store or online, more and more, consumers are being asked the same question: credit or debit? The decision you make can have long-lasting ramifications, so you had better think twice.

While the plastic cards may look similar, there are major differences between credit and debit cards, and sometimes even more between issuers.

Basically with a credit card, you’re borrowing money from a financial institution. Don’t pay it all back in a timely manner and you’ll be hit with interest rates sometimes higher than 20 percent. A debit card is an electronic check that takes money directly out of your checking account.

Consumer Reports notes that debit transactions now outnumber those on credit cards by more than $2 billion, accounting for over $1 trillion in 2006. Bank of America’s “Keep the Change” program actually rounds up a debit transaction amount to the next dollar and deposits the “change” into your savings account.

Since you’re using your own money, debit cards are easier to obtain than credit cards and can be a simple, pay-as-you-go money management tool for those that don’t want to get into credit trouble. But there’s no government help in resolving merchant disputes, only errors involving electronic fund transfers. Some banks may voluntarily help, but since the merchant has all your money, you have little leverage. Even if successful, you might be stuck with a store credit.

Under the Electronic Fund Transfer Act, if your debit card is lost or stolen, you’ve got just two days to notify your bank to limit your liability to $50. Wait, and that figure jumps to as much as $500. After 60 days, you’re liable for everything. If your checking account has overdraft protection, you could be wiped out. While some banks have voluntarily reduced these liability limits, you need to check with your institution. Consider opening up a separate small account associated with a debit card to limit any potential fraud losses.

With credit cards, you’re using someone else’s money and there’s no access to your bank accounts. Furthermore, credit card purchases are protected under the FTC’s Fair Credit Billing Act that gives consumers the right to withhold payment on disputed merchant charges. There’s no liability until the dispute is resolved. And if a credit card is lost or stolen, there’s usually no more than $50 liability for unauthorized use.

So credit or debit?

If you think of that debit card as cash, use it for smaller point-of-purchase items like fast food, groceries or gas, where you don’t need merchant dispute protection. If you’re travelling out of the country, foreign transaction fees might be lower by using a debit card. Bank of America, for example, charges 1 percent on debit transactions compared to 3 percent on credit cards.

Make sure you know what fees — if any — your bank charges using its debit card, and know your account balance. Just like a bounced check, you could get hit with big overdraft charges. Also ask a merchant if it runs a separate “hold” or “block” charge on your checking account that guarantees payment. It’s usually cancelled within 48 hours, but those funds remain unavailable.

Use your credit card for larger purchases or those being made online or over the phone. Also, charging a product on certain credit cards may provide an extended warranty that can double the coverage of the original manufacturer’s warranty, for up to one year. But check with the issuer of your card to verify specific terms.

To avoid becoming a victim of debit or credit card fraud, monitor your accounts and transactions through online banking or telephone in between getting monthly statements.

By David Morris

new online credit card company?
Free credit reports?
What about credit scores?

new online credit card company?

2007-11-04T09:10:00.000-08:00

Formerly called GratisCard Inc., Revolution Money has launched its first two products: Revolution MoneyExchange, a free PayPal-like money transfer service for online transactions, and RevolutionCard, an offline, PIN-protected credit card that does not have the user’s name or account number on it, to keep the user anonymous to avoid identity theft, the company said.

Revolution MoneyExchange, available by invitation only, will be offered to all consumers later this year, the company said. The credit card is available now.

Revolution Money was formed by Case, former AOL vice chairman Ted Leonsis, who is chairman of Revolution Money, former U.S. Treasury Secretary and former Harvard University President Larry Summers, former Charles Schwab CEO David Pottruck, and former MasterCard International President and CEO Russell Hogg. The company has partnered with four prime and sub-prime lenders: First Banks Inc., Citigroup Inc., CompuCredit Corp. and Union State Bank.

Unlike traditional credit card companies that require merchants to pay an average of 1.9% of a consumer’s total sale, Revolution Money is charging merchants a 0.5% fee, the company said.

A company spokeswoman said Revolution Money can reduce merchants’ fees because the new system relies on Internet technology, which is more cost efficient than traditional credit card systems.

“So we’re saving money,” she said, adding that merchants will be able to pass on their savings to consumers in the form of immediate rewards and/or loyalty programs.

“Traditional — and even online — incumbents have been charging what adds up to billions of dollars of fees every year that ultimately come out of consumers’ pockets,” said Case, chairman and CEO of Revolution LLC, in the statement. “So we have built an innovative Web 2.0 company based on the latest technology to disrupt the decades-old system with the goal of offering the industry’s most accessible, easy-to-use and secure payment system that puts money back where it belongs, in consumers’ pockets.”

Credit Card Phishing Scams
Free credit reports?
What about credit scores?

What about credit scores?

2007-11-03T08:11:00.000-07:00

FACT (Fair and Accurate Credit Transactions Act of 2003) also includes a provision about credit scores, but it doesn’t make the scores free. Instead, the law states that consumers have the right to obtain a score from the credit-reporting companies and allows the companies to charge a reasonable fee for the scores. However, there are a number of different types of credit-scoring systems. The one with which many people are most familiar, the FICO score, is produced by Fair Isaac (NYSE: FIC) using information it obtains from the credit-reporting companies. In addition, there are other scores that are used specifically for borrowers seeking mortgage loans, as well as a score that the credit-reporting companies calculate for educational purposes.

One problem with FACT is that you may not get access to your FICO score. In some cases, the score you’ll get under FACT may be one of the educational scores calculated by the credit reporting companies. Although Equifax gives consumers the ability to purchase their FICO score, the other companies may provide you with a different score based on other methods. The existence of other types of credit scores can be extremely confusing, especially because the scores you get may not be the ones lenders use to make credit decisions. In addition, the range of possible score values differs depending on which company produced the score. For instance, while a FICO score can range between 300 and 850, Experian’s credit score falls between 330 and 830, and the score that TransUnion produces can be anywhere between 150 and 934. Because these ranges largely overlap, they can mislead consumers into believing that they can make comparisons among their various scores, when in fact the scores are calculated differently and therefore are best considered independently from each other.

Credit Card Phishing Scams
Free credit reports?
Bad Credit Credit Card- The Downside

Free credit reports?

2007-11-02T01:10:00.000-07:00

For years before FACT (Fair and Accurate Credit Transactions Act) became law, you could exercise your rights under the Fair Credit Reporting Act to obtain a credit report. However, that law allowed the three major credit-reporting companies, Experian, TransUnion, and Equifax – to charge a reasonable fee in most cases. Because Congress feared that even a small fee would deter consumers from regularly checking their credit reports, FACT changed the law to allow consumers free access to their credit information.

Under FACT, you can request a free credit report from each of the three credit-reporting companies every year. How you choose to time your request for your credit information is up to you, so you have a couple options in how you monitor your credit reports. If you get all three of your credit reports at the same time, you can compare them to make sure that each has consistent information about your credit. On the other hand, if you choose to request your credit reports one at a time and spread them out evenly, then you can keep an eye on your credit information throughout the year without ever having to pay for a report.

To facilitate requests for free credit reports, the three credit-reporting companies established a website for consumers to use. Unfortunately, a number of other websites with similar names that are unaffiliated with the major credit reporting companies use the promise of free credit reports to gather potential customers for additional credit-monitoring services, for which they collect fees. The official website will give you your full credit report without asking you to sign up for an ongoing service or pay any money.

Credit Card Phishing Scams
It's Your Credit - What Are You Going to do to..
Bad Credit Credit Card- The Downside

Credit Card Phishing Scams (and how to avoid them)

2007-11-01T03:15:00.000-07:00

I just got the most exciting email from the IRS - I was owed a tax refund! All I had to do was click on a link and enter some personal info. So, I did so and was given an official (looking) IRS web site, that would allow me to secure my refund. The only thing was that the URL was a series of numbers (or an IP address, for those technically sound) instead of “irs.gov”. Nice try, guys.

This tactic is called “phishing” and is defined as an email that appears to be legitimate and from a real company you may or may not have an account with. You’re then given a link that requires you to give them personal info and they wisk this data off to a database where they try and gleam as much financial information as they can from as many of your accounts as possible.

This is becoming more and more common, as there are alot of people who think emails like this are legitimate. Here are some ways to avoid losing your bank account info:

* Check the URLs - If eBay is asking you for a new user name, make sure you’re giving it to “ebay.com” and not some random site you haven’t heard of. And, clicking the link in the fraudulent email isn’t going to effect anything - it’s when you enter in your personal information.
* Give them a call - You might get an email from your bank, saying your account has been compromised. Can’t tell if this is a real problem? Call their 800 number and double-check with their customer reps.
* If you get one, let someone know - Most companies have an email you can forward over phishing attempts. I know that eBay and Paypal have spoof@ebay.com and spoof@paypal.com, as I’ve received multiple scams pretending to be these companies.

So, don’t freak out over a message saying $3,000 was stolen from your bank account. Unless you’ve received a letter in the mail, or something more formal, give them a call to make sure. Or else you may found that your vacation money has actually been taken by an 18-year old hacker halfway across the country.

How To Obtain A Credit Card With Bad Credit Status...
It's Your Credit - What Are You Going to do to..
Bad Credit Credit Card- The Downside

Using your card internationally? Watch for fees

2007-10-30T05:17:00.000-07:00

When traveling to Europe, the Orient, or wherever your final destination may be, your options for paying for dinners and tourist gifts are either 1) traveler’s checks or 2) your credit card. The choice of which to used to be quite easy, but things have changed.

The ideal choice used to be to swipe your plastic. The big three (Visa/Mastercard/AMEX) would give you an excellent exchange rate, since they run so much money through the international banks. However, these days, cards have begun to affix surcharges when they’re used internationally. The percentages are usually fairly low (from 1-3 percents) but they can add up.

These fees make it so it might be worth looking into traveler’s checks, particularly if A) you can get them for free and B) you find a place with good exchange rates. You do lose some convenience, but expensive meals can rack up some big bills. So, take a close look at your options, and choose which payment method makes the most sense to you (and your wallet.)

Ways to compare credit card offers
New credit card legislation for students
New credit card legislation for students

Ways to compare credit card offers

2007-10-29T07:19:00.000-07:00

How do you compare credit card offers? Do you look at the APR? The necessary credit score? A strong rewards program? Annual fee? Something else? Well, here is a short list of factors that should take into consideration when shopping different student credit card offers.

1. Type of card – There are three main types of credit cards you can get:

* Secured cards are for those with poor credit and require a security deposit.
* Regular cards don’t have many features but have higher credit limits than secured cards but lower limits than premium cards.
* Premium cards come in the various metallic flavors (silver, gold, platinum) and have the highest credit limits. They can also have rewards programs like cash back or travel insurance.

2. Grace period references the number of days you have to pay your bill in full without a finance charge. This isn’t standard and does vary by card.

3. Calculation of the finance charge is important as I discussed before with regards to the two-cycle average balance. Take a look at how the different cards work their interest accruals.

4. Fees are not only in terms of annual fees but also over-the-limit fees, late payment fees, and balance transfer fees.

5. Cash advance features which refers to how much it costs to use, how it’s accessed (ATM or checks) – as well as any associated fees and how payments are credited.

6. Credit limit is determined by your credit history, but some cards come with a predetermined limit.

So, next time you’re in the market for s new card, keep this list in mind and be sure to check it twice.

New credit card legislation for students

2007-10-28T05:33:00.000-07:00

Students: worried about getting in over your head with credit card debt?
Parents: worried your kids might be getting in over their head with credit card debt?

Well, back in August, Senator Herb Kohl of Wisconsin was also not thrilled with the high balances that undergraduates (and even more for graduate) students are burdened with. Student loan debt is enough to worry about - more than that is quite unnecessary!

Therefore, he decided to introduce the “Student Credit Card Protection Act”. This legislation seeks to make it more difficult for students to acquire more credit than they should be able to afford. Specifically, the rules include the following:

* Require credit card companies to verify a student’s annual income if he/she is under 21.
* Require a parent, legal guardian or spouse to co-sign if the student has no verifiable income. Also, requires approval by the co-signer for increases in credit.
* Limit the amount of student’s credit based on their annual income.
* Prohibit the credit card company from issuing multiple cards to students.

Most of these seem like fairly obvious restrictions and it’s quite surprising that Congress has to get involved to make these stipulations into law. It’s still at the initial stages, so hopefully, it’ll progress further down the path and meet with universal approval. Even better would be if some of these legalities were in place for all consumers, and not just for students!

New credit card legislation for students

2007-10-28T01:20:00.000-07:00

Survey: Grad students wished they were educated earlier about credit cards

2007-10-26T06:14:00.000-07:00

Do you currently face an increasing amount of credit card debt? And do you happen to be in graduate school? In 2006, a college financing company surveyed graduate students in order to determine their card usage statistics. Here are the highlights that I found most intriguing:

* The average balance of graduate student cards is over $8,600
* Only 20% of survey respondents paid off their balance each month
* Ninety-three percent of these students would have appreciated their undergraduate school to have offered financial management classes
* About 94% of these grad students used credit cards to pay for some portion of their direct education expenses, primarily textbooks.

The fact that the average balance is so high is a bit scary. If it’s not paid off, these students could see their interest increase the balance another $1,500 each year!

Of the above points, the latter is the only statistic that we, at StudentPlatinum, would possibly recommend. If you’ve got a low enough APR and you couldn’t find a better deal with a private college loan, then financing your education would have some value. Other than that, the high balance students have - combined with the low number of students who pay their entire balance - makes it seem that additional financial education even at the high school level would be extremely valuable. Just don’t ask the credit card companies to foot the bill!

How “bad credit” is different from “no credit”

2007-10-25T03:15:00.000-07:00

Many believe that having bad/poor/weak credit is the exact same issue as not having any credit. That’s not quite right - they are actually different from one another.

Having “no credit” refers to situations when you’ve never owned a car, rented an apartment or had a credit card. At this point, lenders (card companies) have absolutely no idea whether or not you’d be a good candidate for paying back the bills you generate. In these situations, getting mom or dad to co-sign your student credit card (provided they have good credit) will allow you to get started with plastic.

If you are one of those with “bad” or “not so good” credit, you’ve already had your shot at a credit card or apartment rental and didn’t do such a great job. Certainly, unforeseen circumstances could have taken place (family emergency, financial difficulties, etc.) but your credit score doesn’t care about those issues - a low credit score is a low credit score.

Some suggestions for those with weaker credit:

* Specific credit cards for low credit - Many car companies offer cards for those with weaker credit. These may have additional upfront costs (annual fee, application fee), but by paying them off, you’ll improve your credit score and eventually upgrade to a card for those with stronger credit.
* Secured credit card - This type of card allows customers to provide an initial outlay of cash as the funding source for their card. By providing a fail-safe amount of money, it’ll be much easier to pay it off each month.
* Department store/gas cards - Whether it’s Mobil or Macy’s, most retailers have leaner restrictions on who they provide credit for. Therefore, it’s almost like a second chance at establishing credit. Just make sure to pay back what you use, as these types of cards generally have much higher APRs!

So, make sure you understand the difference between lacking credit and not having good credit. Both can be fixed, as long as you take the appropriate steps to do so.

Reason #542 Why you should call about your high rates

2007-10-24T11:03:00.000-07:00

My friend’s cell phone contract was about up and she was tired of paying the higher rates. What did she do? Well, if you read the title of this blog post, obviously she gave them a ring. Right of the bat, she gave them a call and asked for the cancellation department. She was connected fairly quickly and asked to close her account. Of course, they ask, “How come?” Her response was that it was too expensive and she’d found some other very enticing offers.

The rep, not interested in losing a customer, ran down what she has now - 700 minutes, unlimited texting and Internet. All for $60/month. Their counter was quite good - 1000 minutes, texts and Internet. All for $45/month! So, she’d receive 33% more minutes at 25% less per month. She was quite pleased and I recommend that everyone does this if they aren’t in a cell phone contract.

And, since this blog is about credit cards for students, the same goes for your plastic - don’t like your APR? Accumulated a fee for something unusual? Just pcik up the phone!

Re-age your credit card account

2007-10-24T08:16:00.000-07:00

Re-age? What does that mean? Redo first grade? Go through puberty again? No no, it refers to your credit card account, (naturally). Let’s look at some details.

Wow, that new plasma TV looks great in your living room. The colors! The details! Everything is wonderful - until you get your bill and find out that your expenses for the month have far exceeded what you can afford at this point. You ultimately incur late fees and interest on this payment. And, of course, more bills and expenses come the next month, so how much longer can you do this?

When situations like the above take place, one option that credit card holders have is to “re-age” their account. This means that the account reverts back to a status when there were no late fees and your account status was “current” rather than “delinquent”. Had a lower interest rate? You’ll be there, as well.

How does this happen? You need to strike a deal with your credit card rep and ask them to re-age. You can only do it once a year, and they need some sort of agreement that this was just a fluke and that you’ll continue with on-time payments (they don’t have to be in full). Once you get a verbal OK from them, ask for something in writing, in case there is a computer fowl up of your account and the re-aging accidentally gets forgotten.

Is this always the best route? For the most part, yes. Getting your account back in good standing will assist you with your credit and also with getting the best APR. However, if you’ve only missed one payment and then are back on track, it probably isn’t worth re-aging. Since you can only do it every 12 months, it’s better when you’ve got multiple months of late fees that would otherwise kick up your interest rate and knock down your credit score.

Ways to compare credit card offers

2007-10-23T05:06:00.000-07:00

Why you should open your credit card mail

2007-10-23T03:17:00.000-07:00

A friend of mine recently received a postcard in the mail from Discover. Inside, it said that his standard APR was about to double - from 12% to almost 21%! This was preposterous to him, so he picked up the phone and gave Discover a ring.

Rep: “Discover credit card services. How can I help you?”
Friend: “Yes, I just received a postcard saying my APR has doubled. I’ve always paid my bill on time and have been a customer for years. Why did my rate suddenly increase so much?”
Rep: “(looking at the account) Yes…I see that you received that card in the mail. Let me transfer you to a Credit Specialist.”

At this point, my friend was quite worried that something was wrong. Why else would he need a “credit specialist”?

The so-called “specialist” gets on the phone:
“Hello, how can I help you?”
Friend: “Hi, I’m calling about the postcard that’s raising my rate. Can you give me reasons why you did this?”
Credit rep: “Oh (checking the account) we can keep your rate where it is…”
Friend (being quite nice): “Well, actually, it’d be even better if you could lower it.”
Credit rep: “Sure we can do that - how about we take you from 12% to 10%?”
Friend (ecstatic): “That’d be terrific, thank you!”

So, the card was mostly checking to see if their customers actually read their postal mail. In this case, it actually benefited the customer, because the rate was lowered. Granted, it did take some time out of my friend’s day, but he saved himself from a drastic increase in APR, and actually ended up with something better!

A novel credit card scam: exercising a little due diligence, an internal auditor uncovers an attempt by a former employee to defraud the company

2007-10-22T06:23:00.000-07:00

Smart credit card use - Brief Article

2007-10-20T01:24:00.000-07:00

Looking out for your own interests

As you gear up for the bustling holiday season, you'll be shopping for the latest toys for the kids, unique gifts for family members and friends, the perfect dress for the office Christmas party, and, no doubt, buying tickets to travel out of town. In nearly all of these instances, you will be using a Visa, MasterCard, American Express, or Discover Card to make purchases.

After all, using your credit or charge card is actually the best option for holiday shopping in terms of security and tracing. You'll have the security of shopping safely and knowing that if your card is stolen, it can be canceled immediately. Your bank can issue you a new credit card and have it delivered the next business day. You should limit your credit card use to major purchases such as televisions, stereos, and jewelry, so that if you need to make a return without a receipt, the credit card data can be used as a tracking mechanism. Also, if the product is flawed, it can be disputed through your credit card company. With online shopping, an increasingly popular medium, your credit card is required as well. You cannot use a check, and C.O.D. is rarely offered.

When using a credit card, it's important to do so wisely and sensibly. Credit card companies are in the business of making money. It's important that you look out for your own personal interests. "We get so many calls from consumers who complain about the interest rates that credit card companies charge and from people who want to know their rights as credit card holders," says Jennifer Davis Carey, director of consumer affairs and business regulation for the state of Massachusetts.

To address these matters, Massachusetts published a consumer guide entitled 12 Credit Card Secrets Banks Don't Want You to Know to educate the public on how to select the best credit card and to help them understand the billing process of most companies.

Many companies engage in interest backdating, if you don't pay off your monthly balance in full. This practice involves charging interest from the date of purchase, although days elapse before they actually pay the merchant on your behalf. Also, credit card issuers have two-cycle billing--a means of calculating interest--which results in customers paying two months' worth of interest if they did not pay off the first month's balance in full. Two-cycle billing only occurs when consumers have changed from paying in full to carrying a balance each month.

"It is important to know about interest backdating and two-cycle billing. If this occurs, find another credit card issuer or make sure you pay your bill in full by the due date," says Carey.

"Ask your creditor to reduce your interest rate," says Mel Stephens, a certified counselor for Consumer Credit Counseling Service (CCCS).

To find credit cards that offer the best interest rates for you, visit the Global Payment Card Information Network Website at www.cardweb.com. You'll find information on the lowest rates offered by banks, cards that have no fee, and secured credit cards.

"Consider what you are looking for in a credit card, such as the annual fee, grace period, interest rates, and credit line," says Carey. "Then, do your research. It is important to find out the terms of the initial agreement. Be sure to read your monthly statements and flyers that are included because most contracts state the terms are subject to change. If they change the grace period or interest rate, you may rack up unexpected late fees."

When you need cash, use your credit card as a last resort. There are double fees on cash advances. Most credit cards enforce both a transaction fee and finance charges.

"You are being charged two fees for one transaction," says Carey. "Don't use cash advances for casual purposes. It is not good budgeting."

Credit card and payment solutions: new benefits for Latin businesses and consumers

2007-10-18T11:25:00.000-07:00

New credit card and payment solutions are helping Latin American corporations gain a competitive edge in the marketplace, while offering significant advantages to consumers. These rapidly evolving credit, debit, travel, payment and purchasing card programs are helping Latin American companies to speed their payment flows, manage their expenses, reduce fraud, and operate more efficiently. Perhaps most importantly, these innovative card programs allow organizations to deliver valuable personal services and reward programs that build and sustain long-term customer loyalty.

From the consumer's point of view, new applications of current card programs technology, as well as the advent of' smart cards (bank cards with embedded chips), can address key issues from account management to secure authentication of personal financial transactions. The advancement of card technology, combined with well-implemented service programs,' promises to transform the nature of financial services provided to businesses and individuals throughout the region.

By llse Pizzolante, Vice President of Consumer Credit Products, Visa International, Latin America and Caribbean Region (LAC).

In the world of credit cards, there is a world of choices--from starter cards with minimum credit lines to gold cards for loyal costumers. But for the affluent consumer, a superior choice of card exists.

Visa Infinite and Visa Platinum are two cards designed for the elite business executive and traveler. Their aim: To satisfy any need, anytime, anywhere.

Accepted at more than 22 million locations, Visa Infinite and Visa Platinum offer unique services for business and personal travel, Internet purchases, customer service, shopping and value. Visa is the preferred card among elite customers for day-to-day use, Internet purchases, customer service, shopping and value.

Need a dinner reservation for the hottest Parisian restaurant at the drop of a hat? A 24-hour concierge service will oblige, and your seat is guaranteed. Have a medical emergency? The Visa insurance program will take care of you, anywhere. Tired after that 10-hour flight from Buenos Aires? Your card allows room upgrades in the world's leading hotels. Still have an eight-hour flight to go? Use the cards to access VIP waiting areas at airports and terminals.

Unlike other cards, Visa Infinie chip-based technology enables it to be used as a debit card at points of sale and ATMs worldwide. And the rewards programs offered with both cards allow users to redeem each dollar spent for airline travel, vacation packages, car rental or gifts.

The Visa Infinite card, the most elite card, is for the high-maintenance client. It provides a line of credit of over $20,000, travel accident insurance coverage of $1 million, emergency medical insurance coverage of $25,000 while traveling, emergency card replacement and cash advance within 24 hours.

Cardholders are entitled to opportunities made possible through Visa's partnerships with leading hotels, spas, resorts and luxury service providers worldwide. For example: Suite upgrades at properties such as Ritz Carlton, Beaches Resorts, Warwick Hotels, Groupe Lucien Barriere and Banyan Tree, among others; special promotions for rentals of private yachts or airplanes through Yachtstore, New World Aviation and TAG Aviation; membership in the Saks 5th Avenue 5th Avenue Club--which includes a fashion consultant and private rooms, and VIP status at Galerie Laffayette, with priority seating at weekly fashion shows and a personal shopper.

Visa Platinum, in addition, offers $500,000 travel accident insurance, emergency medical insurance and rental car insurance. Card holders enjoy upgrades, late check-out and VIP status at a wide array of properties, including Renaissance Hotels, Resorts and Suites and Sofitel Hotels, as well as special packages with retailers and travel planners.

To get an idea of the experience, picture this: A suite (upgraded), at an exclusive, 100-room resort in the Caribbean. A call to a personalized concierge service leads to a Personal Travel Advisor who makes a reservation, sends a gift to a business partner, finalizes a travel itinerary and purchases tickets. You don't have to leave early; your cards allow you to check out late afternoon.

Online age verification technology challenges shipping opponents

2007-10-14T09:27:00.000-07:00

One of the main arguments against the direct shipping of wine to consumers, particularly via online sales, is that it provides an easy way for minors to get their hands on forbidden beverages. When faced with the retort that few 15-year-olds have their own credit cards with which to make Internet purchases, the standard response from wholesalers and concerned citizens is that it's easy enough to swipe mom's Visa card when she's not looking.

But what if there were a way to instantly verify a wine buyer's identity online, at the time of purchase--even if the buyer in question had gotten his hands on an adult's credit card? Would wholesalers declare the world of Internet wine buying safe for minors and encourage states to open the direct-shipping floodgates? We'll soon find out, if a new online age verification system catches on with U.S. wineries.I believe IDlive's technology significantly challenges the posture taken by the wholesalers," says IDology group VP and chief marketing officer Raye Croghan. "We have reached out in the past, to no avail. If we can disarm them, perhaps the real issue can be addressed and dealt with on a fair playing field."

In addition to forcing wholesalers and distributors to acknowledge their true agendas, Croghan says, IDlive helps wineries steer clear of government sting operations. "The system has highly effective and creative sting prevention capabilities," she says. Even if a winery is caught in a sting, "Our winery clients have the protection of exercising their right to what's called due diligence defense, recognized in all states."

Many people believe that shipping companies are liable for wine packages that are delivered into the hands of minors--particularly if the delivery person fails to obtain the required adult signature. However, according to Kristin Krause, public relations specialist for regulatory and government affairs in FedEx's Washington D.C. office, that is not the case. "Our terms and conditions of carriage place the responsibility for ensuring compliance with applicable laws and regulations on the person or company tendering the shipment to us," she confirms.

How It Works

IDlive allows wineries and online retailers to create a customized Internet verification system that taps into public records. The system sifts through and sorts the data to verify age and identity, then provides a confirmation (or denial) to the company that is taking the order. (Because the consumer's detailed personal information is not divulged in this process, the data is protected against identity theft.)

To prevent kids from using a parent's credit card to buy wine, the system can be set up to enable a "knowledge-based verification"--meaning, that it searches pubic records for information about the cardholder, and presents questions that only that person should be able to answer. (For example: "What make/model car were you associated with in 1979?")

IDlive can be set up to run automatically or manually. In a manual system, the winery representative or online retailer enters the name, address and year of birth of the buyer, then clicks a button to determine if the person is of age. If IDlive is unable to verify a person's information, or it is determined that the buyer is a minor, the system can respond in various ways, according to each individual winery's preference. Some wineries list an 800-number that the customer must call to verify purchase, while others simply send a message to the user, declining the order.

"We try to re-create the entire retail buying experience in an online environment," Croghan says, from selecting the product to bringing it to the counter to having the cashier check the ID. "The difference is that we know if an ID is fake, while retailers don't always know."

IDlive In Action

After the Supreme Court's recent ruling on direct shipping, IDology extended an offer of 500 free age verification checks and free enrollment for wineries that registered by May 31. A large wine conglomerate and several small wineries took advantage of the offer, and have since signed contracts to continue the service.

Pay Station: Sony Touts New Credit Card Online - Brief Article

2007-10-13T11:28:00.000-07:00

IXL, New York, has launched a site to support Sony's new Sony Card credit card (Visa/MasterCard), which allows customers to collect points redeemable for Sony merchandise with every purchase.

Jeffrey Dorn, senior vice president of the Sony Card business division in Park Ridge, N.J., said the card is geared toward men and women 25 to 49 who earn incomes of at least $50,000 and "have a high enthusiasm for both electronics and entertainment."

The site, located at www.sony.com/sonycard, provides information about the card, which is co-branded with Citibank, as well as an online card application and commerce area for Sony products. The site's most interesting feature may be its "story log" which uses online storytelling to tell visitors about the bonuses of the card. The story log includes a narrative appealing to a young, professional demographic, or the Ally McBeal and Friends set, said Ian Kerner, director of iXL's strategic solutions group. Despite using TV shows to describe the card's demographic, Kerner noted that the Internet is central to its marketing plan. "I think it's clear that the Sony Card is really embracing the medium."

In the current story, a man leaves his cellular phone in a taxi, and a female tourist snaps some photos of the cab's license plate. As the duo frolick through New York tracking down the phone, users can click on Sony products placed throughout the couple's travels for purchase information using the card. Items also can be redeemed with Sony points.

Jack Templin, lead strategist of iXL's strategic solutions group, said the site eventually will include a suite of tools that can guide users with Sony Cards through search and recommendation sections. "This is a card that's both a traditional credit card and also very intelligent about navigating cyberspace and c-commerce," he said.

Sony is also running a direct response campaign in traditional media created by Young & Rubicam Direct, New York. The online campaign, Dorn added, is integral to the marketing. "We hope the Internet is going to be a very, very rich and active channel for us," he said.

Links to the card site and its application will be on Sony's other sites, including those for its music, Playstation gaming system and other merchandise. "It's bringing together all of the Sony entities,"

They've Got Your Number - credit card theft - Industry Trend or Event

2007-10-12T04:28:00.000-07:00

FRAUD: The bad guys want your customers' credit card information. But there are things you can do to tighten security on your site.

It was an e-retailer's nightmare. When Bibliofind, an Amazon.com-owned online shop that hooks up buyers with used-book sellers, was hacked this past February, the proprietors thought only their homepage had been defaced. Then the company looked at its server logs. It found that a rogue had been accessing customer data files since the previous October, exposing the credit card numbers of 98,000 Bibliofind buyers.

While e-commerce sites publicly pooh-pooh the threat of credit card theft, it's a real and far-reaching problem. A recent report by the San Francisco-based Computer Security Institute found that 85 percent of e-commerce and government sites polled experienced a security breach in the past year. Thirteen percent reported that customers' credit card numbers were rendered accessible.

The reality is that "no system is 100 percent secure," says Chris Wysopal, director of research and development for online-security firm @stake. But you can minimize the threat of theft by taking a few precautions.

Hackers usually break into sites through holes in Web server software. Hundreds of these holes are discovered every year. To keep track of them, many sites use e-mail lists like Bugtraq. That's where, for example, you would have learned about the 32nd hole discovered in Microsoft's Windows 2000 Internet Information Server. Technically known as a "critical buffer overflow problem," the Windows design flaw could let a malicious hacker take control of an entire Web server.

Once hackers break into your Web server, they can satisfy themselves simply by fiddling with your homepage. To do real damage -- to steal credit card numbers, for instance -- they have to get beyond the Web server and into the box that houses your customer database. Assuming your IT department is on the ball, that means breaking through a firewall. There are a raft of hardware and software tools -- Check Point Firewall-1, Cisco Pi, PGP Gauntlet and Symantec Raptor are a few examples -- that protect your network by admitting only approved users and applications.

But there's a chink in this armor: Firewalls on e-commerce sites must be configured to admit data traffic from your Web server. If they weren't, none of the transactions from that server could get through to your site's back end. So if a hacker finds a hole that lets him control your Web server, he could also get through your firewall.

That's why your site should encrypt sensitive data. The simplest way is by configuring your Web server to use the secure sockets layer, or SSL. (If your IT people don't know how to do this, get some new IT people.) SSL encrypts incoming and outgoing data streams, hiding them from hackers who've penetrated your Web server or who are simply sniffing at data traffic from your ISP or Web hosting service.

You might also consider encrypting your customer database using specialized hardware or software. But that, says Ric Steinberger, technical director at Security Portal, a security news site, is "like putting an extra fence around Fort Knox." If your OS is patched, you've got a good firewall and you're using SSL, that should be enough to stop most hacks.

Unfortunately, few sites bother to implement all these precautions. That's why hackers are usually caught after the fact, when system operators have had a chance to notice unusual activity in network logs. Companies like Cisco, ISS and NFR all make intrusion detection software - priced anywhere from $2,000 to $25,000 - to alert you if anything odd happens.

If your customer data is compromised, you have little choice but to admit it as quickly as possible. That's what Bibliofind did. The company took the site down and sent e-mail to customers whose cards had been exposed. Sure, it was a public relations nightmare. But at that point, there's not much else you can do.

Philippine Bank Entices Online Buyers With E-Credit - Company Business and Marketing

2007-10-11T11:29:00.000-07:00

The Bank of the Philippine Islands (BPI), the nation's second largest bank, recently unveiled the country's first virtual credit card system called the BPI E-Credit targeted to security-conscious customers making frequent purchases on the Internet.

Josephine Ocampo, BPI's president for card banking division said that E-Credit is an extended virtual account for holders of BPI MasterCard. It would allow its customers to make Internet purchases without using physical cards.

The E-Credit system, which is exclusive to BPI MasterCard users, creates an account for card owners and would automatically grant a 50 percent credit limit for purchases made on the Web, based on customers' existing credit line. A separate account number and card verification code (CVC) for the E-Credit card would be issued to the holder of the physical MasterCard.
The account number and CVC of the E-Credit card then would be entered into the order field of a merchant Web site, instead of the information on the customer's physical MasterCard

An applicant for the E-Credit can choose to place any desired amount into the E-Credit account, which could range between 5,000 pesos ($94) to a maximum of 50,000 pesos ($936) at present. Ocampo said this particular option would help manage the buying behavior of cardholders. He said though the maximum amount would eventually be raised depending on the future needs of clients.

"The customer is given all the freedom and convenience needed for buying items online, but it could also discourage compulsive buying," she quipped.

The same self-restraining method also secures accounts of cardholders against credit card hackers since the use of the E-Credit card numbers are only exclusive to Internet purchases. "There is no way the numbers could be used for traditional purchases that are coursed through regular stores," Ocampo said.

Whenever a purchase has been made using E-Credit, the amount will be deducted from its physical MasterCard's online counterpart. The deduction would then be reflected on the MasterCard holder's monthly statement of account.

Nevertheless, customers could also check their accounts for both MasterCard and E-Credit through BPI Express Online (www.bpiexpressonline.com), BPI's Web site launched early this year to help customers check their savings accounts and keep track of their credit line in real time.

Ocampo added that the whole system would be fully operational by the end of the month, though applications can already be made through all of their branches or via the Web. Initially, BPI is aiming to convince around half of its 150,000 BPI MasterCard users to also get E-Credit card accounts by the end of the year.

"We also hope to get the same number for our Expressnet ATM users until the early part of next year," she said.

Ocampo predicted that Filipinos' use of the Internet for online purchasing would gradually increase within the next two years, despite the low usage of the Internet in the Philippines, which reportedly counts only about 2 million users.

"We're helping to promote the future of online purchasing by providing the service now," Ocampo said.

William Reyes, BPI MasterCard product manager added that the launching of E-Credit also coincides with the bank's upcoming promotions for the next four months, the first two months of which are often considered as early preparation for the Yuletide season.

New Online Job Scam

2007-10-10T09:10:00.000-07:00

In these tough economic times, many of us are looking for work. But don't let your quest for employment suck you into the innumerable "work at home" scams riddling the Internet. In particular, watch out for a new trick that targets PayPal users. We've had several reports lately that describe a similar scenario: An online ad seeks to hire people to use their own PayPal accounts to facilitate sales for customers who allegedly have no other way to transfer funds.

Here's a typical, but real, example reported to us in March. The victim answered a Monster.com job ad like the one in Figure 1, posted by a company called Insync Soft that claimed to be based in Prague, in the Czech Republic. Looking for people with experience using PayPal, the company promised to pay 10% and up on any transactions the person facilitated. (Monster.com has since removed the ad.)

In a follow up e-mail, Insync Soft representative William Lesoe claimed PayPal wasn't allowed in his country (it's not), so the company needed someone from the outside to act as a middleman to receive funds from customers buying software. But—and here's the catch—the job seeker (that is, the victim) had to set up and use his own PayPal account and to send Insync Soft payment and log-on information. And he had to use his own credit card and bank account to guarantee the PayPal account.

You can probably guess the rest of the story. The victim receives credit card payments from "customers" to the PayPal account, then sends the money out of the country by an untraceable Western Union cash transaction. As with the infamous Nigerian scams, the victim is supposed to keep a percentage of the money.

But there's no happy ending. Once the money has been withdrawn and sent, there are charge-backs from the credit card companies because the credit cards were stolen. PayPal returns the money to the credit card company and goes after the account holder for the money. The victim is left to cover the charge-backs out of his own pocket. The customers, of course, are bogus.

We spoke with a woman named Gloria in the account resolution department at PayPal to see what a victim can do. Not much, it turns out, because the victim agreed to be the primary company or person on the PayPal account. And PayPal doesn't allow its account holders to act as intermediaries for others.

Charge-backs usually occur when the credit card company contests a charge because of nonshipment, misrepresentation, or occasionally fraud. The credit card company asks PayPal for the money, who in turn asks the account owner. PayPal will go to the boards to defend its members against charge-backs, but only if there's a paper trail showing that products were shipped or services rendered. In this scam, since the victim is acting as a straw man and not actually shipping anything, PayPal won't fight the charge-backs. These are empty transactions, so the victim has no recourse.

Be wary of variations on this theme. We also received reports of companies called Ross Soft (owned by a Kevin Lesoe) and Eastern Exchange advertising on job boards. Both promised great rewards for PayPal work.

ID Thieves Turn Sights on Smaller E-Businesses; For Online Shoppers, Security Seals No Guarantee That Hackers Aren't Watching

2007-09-30T06:42:00.000-07:00

Byline: Brian Krebs

Schuyler Cole needed an accessory for his Palm Treo 600 smartphone, so the Haleiwa, Hawaii, resident fired up his Web browser last month and ran a Google search.

After scanning the search results, he purchased the inexpensive item -- a USB cable used to synchronize the Treo's settings with his personal computer -- from Cellhut.com, the first online store displayed in the results that looked like it carried the cable. The site featured a "Hackersafe" logo indicating that the site's security had been verified within the past 24 hours.

Later that day, information from Cole's purchase --- including his name, address, credit card and phone numbers, and the date and exact time of the transaction --- were posted into an online forum that caters to criminals engaged in credit card and identity theft. Ostensibly, the data on Cole was posted as an enticement to other fraudsters lurking on the forum who might be interested in buying large numbers of similar records.

Other personal data posted into the fraud forum included the personal and financial information for Shane Galloway, an 18-year-old freshman at Louisiana State University in Baton Rouge. When contacted by washingtonpost.com, Galloway said he purchased a wireless phone from Cellhut.com shortly after midnight on Sept. 6, just minutes after the time stamp on Cole's purchase.

Another individual whose data was found in the online chat channel --- a southern California resident who asked that his name not be used --- confirmed that he bought wireless accessories from Cellhut.com at 9:15 a.m. on Sept. 7, the exact time listed in the entry that was posted into the online forum along with his credit card data and other personal information. Later, he discovered that $6,000 in fraudulent charges were made using his credit card.

While public attention has remain fixed on a series of high-profile data losses or database breaches at federal government agencies, large corporations and universities, experts who study financial fraud say hackers increasingly are targeting small, commercial Web sites. In some cases, criminals are able to gain real-time access to the sites' transaction information, allowing them to steal valid credit card numbers and quickly charge large numbers of fraudulent purchases.

Small e-businesses offer fewer total victims, but they often present a softer target, either due to flaws in the software merchants use to process online orders or an over reliance on outsourced Web site security.

Cole's and Galloway's information was recorded being traded in an online chat room by Dan Clements, co-founder of CardCops.com, a fraud prevention service that monitors underground chat rooms where criminals trade in stolen credit cards and information used to commit identity theft. Clements said many smaller online merchants use generic shopping cart software that they fail to maintain with the latest software security patches.

"Most of these merchants that get hacked do not have updated versions of the software that runs their business, they're just trying to sell widgets," he said.

Nearly 80 percent of all software vulnerabilities discovered in the first six months of 2006 involved Web-based applications produced by hundreds of different software vendors, according to a report released Monday by Cupertino, Calif.-based security vendor Symantec Corp.

"The people writing these applications often don't know very much about Web-based vulnerabilities," said Alfred Huger, a senior director at Symantec Security Response. "Many of these Web vulnerabilities are not that difficult to discover and are very easy to exploit."

Cellhut.com, like many e-commerce Web sites, features the "HackerSafe" seal on its homepage proclaiming that the site "is tested and certified daily to pass the FBI/SANS Internet Security Test." ScanAlert Inc., a Napa, Calif.-based company that sells the service, scans some 75,000 online merchants each day for thousands of known Web site flaws.

ScanAlert is one of many companies providing third-party Web site security audits to online businesses. Other players in this market include Comodo Group Inc. of Jersey City, N.J., which markets its HackerGuardian scanning service; Coral Gables, Fla.-based Xenitel and its HackerFree seal; and the Verified Safe service from Lansing, Mich.-based Periscan.

By and large, the companies offer a range of basic and advanced security services that they say will assure Web customers that a site is doing everything possible to protect their personal data. But computer security experts are quick to question the effectiveness of these services.

"We hear from our assessor contacts who investigate (Web site) breaches that most of the sites had previously passed vulnerability scans," said Avivah Litan, a financial fraud analyst with the Stamford, Conn. research firm Gartner Inc.

Know your history: five reasons to check your credit report

2007-09-25T11:40:00.000-07:00

Let's face it. Not everyone is a history buff. That's obvious to those who've ever watched an episode of "The Tonight Show with Jay Leno." As he skirts around the streets of Los Angeles during his signature bit "Jay Walking," he gets the most laughable responses to the simplest questions. When asked during one bit when Christopher Columbus discovered North America, a lady studying to be a teacher responded, "1842."

It's a scary thought that a future educator doesn't know when "Columbus sailed the ocean blue." Maybe more people would know their history if it had a more direct impact on their lives. Then again, that statement doesn't always ring true because there are many people who don't have a clue about personal history that affects them greatly--their credit history.

Just as a resume displays your work experience to a potential employer, a credit report provides creditors, and in some cases employers and insurers, with a detailed picture of your credit history. And like a resume, your credit report can influence whether you'll get what you're applying for.

Good credit isn't only useful in getting a loan. Credit checks are often done before a person is able to sign an apartment lease or as part of a background check before being offered a job, said Luther Branham, senior vice president of consumer lending for USAA Federal Savings Bank.

Your credit report provides a snapshot of your credit history and helps lenders make a quick, objective and accurate assessment of your credit risk. Occasionally, however, there are errors on these reports that can adversely affect your ability to get a loan or credit. Therefore, it stands to reason that you want to make sure your report is an accurate, up-to-date reflection of your credit history. Here are five reasons why you should become a history buff when it comes to regularly reviewing your credit report.

Identity theft

In 2003, 9.9 million people became victims of identity theft. A Federal Trade Commission publication titled, "ID Theft: When Bad Things Happen to Your Good Name," points out that identity thieves use a variety of methods--low- and high-tech--to gain access to personal data like social security numbers and credit card account information.

"A thief can secretly run up thousands of dollars in bills using your name and a different or fictitious address, and you may not be aware of this until you are turned down on an application because the delinquent debt was recorded on your credit report," said Michael Jackson, associate director of the Federal Deposit Insurance Corp.'s electronic banking branch.

The best way to catch a thief using your name is to get a copy of your credit report, according to the FTC publication. The report will show all the accounts opened in your name.

Let's assume your wallet has been stolen. The FTC suggests you contact the fraud department of any of the three major credit bureaus to place a fraud alert on your credit file. The alert is basically a request for creditors to contact you before opening any new accounts or making any changes to your existing accounts. As soon as the credit bureau confirms your fraud alert, the other two bureaus automatically will be notified to place fraud alerts, and all three credit reports will be sent to you free of charge.

Inaccuracies and mixed files

Many inaccuracies on a credit report can be the result of simple human error. For example, a New Jersey woman named Norma Cohen was astonished when she was turned down for a loan to refinance her home. She thought her credit was close to perfect.

Apparently, someone mixed her up with her deceased ex-husband. It's easy to see how it happened since his name was Norman Cohen. But Norma and her husband had divorced four years before his death, so she shouldn't have been held responsible for his bad debts. Though she explained the situation to the credit bureaus, it took some doing to correct the problem.

Other inaccuracies aren't so hard to dispute. The important thing to remember is you should correct even the tiniest of errors. Whether the errors relate to payments not credited or to late payments, it's best to contact the credit bureau to dispute the inaccurate information before it does too much damage to your report.

Inquiries

Every time you apply for credit and the credit grantor checks your report, a credit inquiry is placed in your file. Credit inquiries are bad because too many of them can indicate that you're "credit hungry" and may be in financial trouble. For this reason, too many inquiries can actually make getting credit more difficult. Moreover, if you didn't authorize someone to look at your credit report and they did, they may have broken the law. In order to see who's been looking at your credit, you need to read your report.

Ethnic Groups, Males Seek Credit Cards Online — Study 04/25/00 - Industry Trend or Event

2007-09-20T11:43:00.000-07:00

NEW YORK, NEW YORK, U.S.A., 2000 APR 25 (NB) People who surf the Web looking for credit card offers are more ethnically diverse and also more receptive to online branding than the general online population, according to a recently released study from Cyber Dialogue, a company specializing in Internet customer relationship management.

The study is part of the company's "American Internet User Survey."

Cyber Dialogue also says that it has found online credit card seekers to be younger, primarily male and more likely to carry larger balances than other segments of the cyberspace population.

To date, according to Cyber Dialogue projections, 9.8 million Americans have shopped for credit cards on the Internet.

Newsbytes spoke with Sam Callard, a financial analyst for Cyber Dialogue's Internet Strategies Group about the findings of the study. He said he thinks the study, which traces the offline and online consumer use of financial services, provides important information for credit providers in understanding how online credit card seekers differ from consumers looking for other types of financial services, such as home loans or insurance.

For example, Cyber Dialogue says, online credit card seekers are especially attractive because nearly half of them a projected 4.3 million have actually applied for a credit card directly online. This translates into a reduction in the cost of acquisition to online credit card issuers.

Another positive aspect of online credit seekers, according to the report, is that online credit card applicants have a high conversion rate. This means that more than half of those who applied for credit cards on the Web a projected 2.2 million ultimately acquired a credit card online, and began using it.

"Credit card companies are missing an opportunity to acquire potentially valuable lifetime customers by overlooking such largely untapped groups as ethnic minorities," said Callard. One of the benefits of the Internet, Callard points out, is its ability to reduce both the offline cost and risk of targeting these kinds of small, high-potential customer segments.

But online credit card seekers are also more demanding than the general Internet population, according to the report. They are especially driven by low interest rates as well as the reputation of the credit card issuer.

Cyber Dialogue reports that 90 percent of online credit card seekers list low interest rates as an important feature of a credit card; and, 83 percent list a trusted institution as being important in their choice of cards. The general online population is said to be a third less likely to cite these two factors as important elements in their choice of a credit card issuer.

Among the other findings of the report was the statistic that 35 percent of online credit card seekers are in an ethnic minority group, as compared to 20 percent of the total general online adult population. The primary reason for this, Callard feels, is due to the anonymity of the Internet.

Another figure of importance for credit card issuers is that with an average balance of $3,100, online credit card seekers carry $1,000 more credit card debt than the general online population. This translates into greater merchant fees and more interest income for card issuers, as long as the monthly payments are made.

The findings reported by Cyber Dialogue are from the company's cybercitizen Finance Continuous Advisory Service which is part of Cyber Dialogue's American Internet User Survey (AIUS). According to Callard, the AIUS random measures via telephone 1,000 online adults, age 18 and older, as well as 1,000 non-Internet users.

edocs Sponsoring Credit Cards Online 2004 Forum in Boston; Software Provider Joins Industry Leaders at Annual Livermore Research Event

2007-09-20T01:35:00.000-07:00

The event's host, Livermore Research, is one of the leading experts in the credit card industry. It uses a proven methodology to uncover and report new online developments within all the major credit and charge card issuers and it is consistently the first industry source to report new functions, updated capabilities and site redesigns.

edocs provides a complete online self-service software platform for the credit card industry and works with several leading card issuers including GE Consumer Card Services and Target. edocs' Card Manager enables issuers to offer a complete and compelling online service experience for consumer and commercial cardholders and it delivers substantial cost savings and improved customer service levels. With edocs' solution in place at an issuer's website, business and consumer cardholders can view recent activity and account status, request usage alerts, categorize transactions, turn off paper delivery and run spending analysis reports.

About edocs
edocs is the leading provider of customer self-service and e-billing software for Global 2000 businesses. edocs' solutions improve the quality of customer care, reduce support costs and deepen relationships with business and consumer customers. The software enables end customers to manage their accounts, research offerings, buy products and services, review bills and statements, initiate and track payments, and resolve issues online from a single starting point at a company's web site. edocs' products and services are used by some of the world's leading organizations in financial services, energy, government, healthcare, insurance, retail and telecommunications. Customers include BT (British Telecom), Fannie Mae, FleetBoston Financial, GE Capital, Humana, Independence Blue Cross, Target, Telstra, Toyota Financial Services and TXU Energy.

Online Shoppers Can Kiss Credit Cards Goodbye 11/19/99 - Cash Technologies joins with MP3.com and Sensar to accept ATM cards to buy music products - C

2007-09-18T04:34:00.000-07:00

LOS ANGELES, CALIFORNIA, U.S.A., 1999 NOV 19 (NB). Shopping online could become much easier for people without credit cards under a new Internet automatic teller machine plan developed by Cash Technologies Inc. [NASDAQ:CHNG].

According to Cash Technologies Chairman and CEO Bruce Korman, credit cards inhibit much of the potential in the e-commerce market. "Today nearly half of the US population, and one-fourth of those who qualify, do not have credit cards," he said.

In order to turn these cardless customers into online spenders, Cash Technologies today announced that it has reached agreements with MP3.com, [NASDAQ:MPPP], an online digital music Website, and privately held Sensar Inc., a manufacturer of "iris recognition products," to begin a pilot project using ATM cards to purchase music products at MP3's Website.

MP3 customers participating in the pilot project will be able to use their regular bank ATM card to shop securely over the Internet at MP3's Website. The use of Sensar's iris camera attached to the customer's PC will eliminate the need to send personal ID numbers via the Internet, removing the key stumbling block that has prevented the use of ATM cards on the Internet.

Korman also pointed out another possible advantage that this system has over credit cards, saying that "credit card and password fraud has victimized millions of online shoppers."

The pilot project for MP3 customers will begin during the first quarter of 2000. Participating customers will enroll at an iris- enabled ATM supplied by Diebold Inc. Thereafter, when the customer is ready to purchase products from MP3's Website, a small hand-held camera manufactured by Sensar, which plugs into the customer's PC, will take a picture of his or her iris and return the encoded information to MP3 over the Internet.

MP3 in turn will pass the information on to Cash Technologies' EMMA system to authenticate the customer and process the transaction through the ATM networks.

An approval is returned by EMMA to MP3 within seconds, the customer then can receive the requested MP3 product in the usual way. According to Cash Technologies, as far as the customer is concerned, the process is virtually as fast and as simple as using an ATM.

MP3 is particularly pleased with the pilot project's potential, since, according to MP3.com President Robin Richards, "Credit card penetration is particularly low amongst the teenage population despite their tremendous buying power."

Sensar anticipates that eventually the inexpensive hand-held cameras, which also can double as "Web cams" or video conferencing cameras, could be distributed by banks, e-commerce providers, online securities trading firms and even built into computer monitors.

Korman told Newsbytes that initially, Cash Technologies would pay for the cost of the cameras attached to the individual PCs. In the future, he expectes that the cameras would be available at virtually no charge, the cost being born by the online merchants who want to reduce credit card fraud at their sites. Korman also said that if the cameras were not made available for free, he expects the retail cost of the camera to be below $100 when manufactured in quantity.

Bye-Bye Credit Cards, Hello Digital Money - electronic fund transfer - Brief Article

2007-09-17T06:33:00.000-07:00

Cash and credit cards soon may give way to digital money--currency that can be sent over computer networks in the form of digital information. "Shopping on the Internet has prompted the development of a new kind of money," Vary Coates and Steven Bonorris, who made a study of digital money for the Institute of Technology Assessment in Washington, D.C., told the World Future Society, Bethesda, Md. They explained that it may take the form of electronic tokens stored on a computer's hard drive or on "smart" cards that can be loaded with various monetary values.

Millicents is a kind of electronic scrip that carries a signed message, a serial number, and an expiration date. Customers receive millicents from brokers and can then spend it using their modems.

CyberCoins exist as digital tokens that can be purchased from a bank and exchanged for online products that cost less than $10.

CyberCash is a system that utilizes software to create a gateway between the Internet and a credit card company's authorization network. A cybercash system keeps records of transactions and encrypts your payments.

"No one is yet sure what kind of electronic currency, if any, will most appeal to consumers," Coates and Bonorris indicated. Some enthusiasts want digital money to be just like paper money. They want to be able to "make change" electronically, have their new currency widely accepted, and have easy access to funds via computer, laptop, and smart cards. Others want electronic money to have customized features that paper money lacks. Some parents, for example, would like to give their children "conditional" digital allowances that couldn't be spent on cigarettes or liquor.

Some consumers already are using digital money. First Virtual Bank began offering it in 1994 and now has 150,000 accounts. Most Internet merchants, though, are waiting to see which of the competing electronic systems will win out in the marketplace

Discover Credit Cards

2007-09-15T03:52:00.000-07:00

Discover wants to be your credit card provider. Cash in that average to very good credit rating and join today! Discover has a wide variety of cards aimed at many needs, including anything from gas cards to student platinum cards. They also offer great rebate rewards with any purchases when you use your personalized credit card with. Those rebates can be used for anything from groceries to merchandise, among many other valued goods. Discover prides itself on having a credit card that meets your needs, and that you will be happy to use. All the services Discover has to offer makes having a credit card a joy instead of an unneeded burden. See the terms and conditions for the credit card you choose before you apply to view the specifics of the payment program.

If you choose Discover, you will be choosing the card ranked #1 in customer loyalty among all leading credit card brands in 2006. With 4 million merchant and cash access locations across the United States, it is hard to argue anything else, making their network the largest credit card network in the United States. Discover is thankful for the loyalty and business throughout the years that they give millions of dollars each year to scholarships, non-profit organizations and research grants. Discover believes that you have the power to control your financial condition. They are committed to helping you make the most of the opportunities that may arise. Discover looks forward to any challenge that you may have when looking to improve your situation. Join their national acclaimed network today. With 50 million users you can't go wrong!

A novel credit card scam: exercising a little due diligence, an internal auditor uncovers an attempt by a former employee to defraud the company

2007-09-14T11:31:00.000-07:00

JENNIFER, THE ASSISTANT Jennifer treasurer at ABC Corp. in New Orleans, opened an e-mail from a former colleague who no longer worked for the organization. The e-mail read: "Hi Jennifer, there should be a refund of $716 on my old corporate Visa card from the IP Conference. I paid for, but did not attend, the conference and did not turn in the charge to ABC for reimbursement. Can you have Visa issue a refund check to me? Thanks very much for your help."

The e-mail was from Larry, a former ABC executive who had been Jennifer's boss at one time. The message seemed innocuous enough. Larry had legitimately charged a business conference to his corporate credit card, but he had canceled his registration because he left the company. Therefore, he was due a refund.

It would have been very easy for Jennifer to trust her former boss and get him the refund. Instead, because something didn't seem quite right, she chose to check on whether ABC had already reimbursed Larry for the conference.

To make this determination, Jennifer accessed Larry's corporate credit card records online and retrieved his expense reports from the accounts payable file room. The expense reports confirmed that Larry had not expensed the conference fee, but when Jennifer looked at his credit card statement, she saw a couple of odd items.

First, the most recent statement indicated that the former ABC executive had made four payments to his credit card in one month. Second, the statement was two pages long, and Jennifer knew that Larry rarely traveled for business. She scanned the charges and noted that most of them were from local vendors. In addition, none of the items looked like business charges. The charges included dinners at local restaurants, department and grocery store charges, and airline tickets for Larry and his wife that Jennifer knew were for their recent vacation.

Out of curiosity, Jennifer queried the company's checks online to see if any of the payments made on Larry's Visa account matched the dollar amounts of checks written by ABC. Sure enough, she found that all four payments made to Larry's credit card that month equaled amounts on checks that the company had written to Visa. Jennifer increased the scope of her search and observed that every payment posted to Larry's corporate credit card over the previous 12 months was from a check written by the company. She also noticed that of the $88,000 in charges on Larry's card over that time frame, none was for business expenses.

Jennifer printed copies of all of the checks and noted that, although Visa was listed as the payee on all of them, Larry's corporate credit card account number was handwritten on each check. Jennifer approached the director of internal auditing as well as Larry's former manager and requested an investigation into the matter.

While working for ABC, Larry was in charge of making sure that the organization paid delinquent balances on the corporate credit cards of people who had left the company. ABC had an arrangement with the credit card company that it would guarantee payment for certain employees if those employees did not pay the balances on their accounts. Once a month, Larry would provide accounts payable with a list of delinquent accounts on guaranteed cards, and accounts payable would cut the check to the credit card company.

However, on the bottom of every check request in Larry's last year of employment, he had written, "Please deliver the check to me." Typically, accounts payable would mail the check directly to the credit card company, but because accounts payable knew that Larry maintained a relationship with the credit card company, they adhered to his request and delivered the checks to him. When Larry received a check, he would write his own account number on the check, and the bank would apply the payment to Larry's credit card.

Larry did not need to make sure that the delinquent credit card owners listed on his spreadsheet paid their balances, because he had fabricated the delinquency list that he provided to accounts payable. In many cases, the employees with the so-called delinquent balances had left the organization long before, and they had paid their balances in full before departing.

So, where were the control breakdowns? First, Larry had sole authority over the credit card function. He managed the corporate credit cards, reviewed the delinquent accounts, had access to the employee statements, and dealt with the bank's account managers. No one reviewed his work. As soon as accounts payable walked the checks down to his office, he had all he needed to perpetrate the fraud.

The second breakdown was that the accounts payable clerk walked the checks over to Larry. Although not necessarily right, it is understandable that accounts payable would not have the time to audit Larry's delinquency list. After all, accounts payable was processing more than 1,000 checks per week with a staff of six. However, it was unacceptable for the clerk to deliver the check directly to Larry. The check should have gone from accounts payable to the vendor. The vendor invoice--or delinquency data in this case--should have contained all of the pertinent information to allow accounts payable to appropriately route the check.

Citibank Credit Cards

2007-09-14T09:51:00.000-07:00

If you have good to excellent credit, then Citibank has the credit cards for you. It does not matter if you own your own business or a student, Citibank will work for you. The cards come with great point, mile, or rebate rewards. You can use them for anything from free flights or gift cards, to rebates on groceries and merchandise. They are great rewards that you will enjoy getting and using over and over. You may also qualify for elite level status which will entitle you for even better rewards. Let Citibank help you manage your money successfully. Citibank will not just give you a card for their benefit, but will fit you with the best card for your situation and your needs. With manageable interest rates and low fees, Citibank has plenty to offer for anyone who wishes to apply. See the terms and conditions for the credit card you choose before you apply to view the specifics of the payment program.

Since 1812, Citibank has worked to help you manage your money successfully, and for over a decade they have been the largest credit card distributor in the world. Citibank never stops working to improve their business because they know you never stop working to improve your situation. They know the customer appreciates their hard work, and it shows in their great customer service they provide. By improving themselves through years of hard work they have learned the best way to help you. People will then be able to rely on you, the way you rely on Citibank. More than 300,000 employees are there for you, and will work in your best interest. Their goal is not just to be an esteemed global financial services company, but the most respected global financial service company in the world. Citibank is there to help you in all financial related matters.

Bank of America Credit Cards

2007-09-14T03:49:00.000-07:00

Bank of America teams up with your favorite aspects of life to bring you a personal credit card that you can be proud to use. Whether it be animal related, sports associated, travel related, among countless others, there is a card out there to suit your needs. Bank of America is dedicated to helping you manage your money successfully. They also believe that you should be rewarded for your hard work in keeping up with your payments. These cards offered great rewards that anyone would love. Paired with a low introductory rate, low annual fees and a low interest rate all set to meet your specific needs, this card perfect for you. Let Bank of America assist you with your money management decisions. See the terms and conditions for the credit card you choose before you apply to analyze the details of the payment program.

Bank of America prides itself on being a part of the local community, and great service within that community. They look to not only help you manage your money, but to help manage your life. With frequent contributions to non-profit organizations in the local area, and well as setting up grants, Bank of America is a local hero. In 2004, Bank of America set up a 10 year plan aimed at contributing 1.5 billion dollars to charities and non-profit organizations during the life of this plan. The goal is to achieve an unprecedented achievement to help a large number of people throughout the United States get back on their feet. Bank of America has given their time, money and efforts for the entire 220 year run of the company to better serve you. This stems from the belief that without the customer, they would not exist. Therefore, the customers and their community should be rewarded for all they have done. Bank of America strives to create better opportunities for those who have helped them greatly throughout the years.

Merchants Clued In To Online Fraud - Survey - Internet/Web/Online Service Information

2007-09-12T03:33:00.000-07:00

A survey expected to be released soon reportedly found that retailers are more likely to say that online fraud involving credit cards is a problem, even though losses being absorbed by merchants may be down slightly from a year ago.

According to the Wall Street Journal, the survey conducted for CyberSource Corp. by Mindwave Research found that 83 percent of merchants who sell online say fraud is a problem, up from 75 percent who said the same thing a year ago. However, the companies interviewed estimated that they lose, on average, 4 percent of online revenue to credit-card fraud, down from 5 percent a year ago.

Still, the survey of 132 companies, which the Wall Street Journal said including pure e-tailers and clicks-and-mortar operations, discovered that while online shopping accounts for just 5 percent of all credit-card transactions, it was the source of 50 percent of all fraud involving cards. The survey also found that 28 percent of merchants surveyed were not aware that they were responsible for the losses generated by online credit-card fraud.

The invisible library: paradox of the global information infrastructure - Challenges faced by libraries and proposed research designs

2007-09-10T02:32:00.000-07:00

LIBRARIES ARE AN ESSENTIAL COMPONENT of a nation's information infrastructure, yet often they are invisible to their users and other stakeholders. In the context of this special issue, the paper presents four challenges faced by libraries and proposes research designs to address each of them. The four challenges involve: 1. invisible infrastructure, 2. content and collections, 3. preservation and access, and 4. institutional boundaries. I propose a mixture of research methods that includes surveys, case studies, documentary analyses, and policy analyses. Only with a better understanding of these challenges can libraries find their best fit in the information infrastructure of our networked world.

INTRODUCTION

Computer and communication networks now encircle the globe. Despite the oft-repeated claim that half the world's population has never made a telephone call, we receive daily television, radio, and newspaper reports filed via satellite from Afghanistan, one of the planet's least-developed countries. Many of these reports become available almost immediately on the Internet. Information technologies have become ubiquitous in the developed world and widely available elsewhere.
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An increasing proportion of communication and commerce takes place via computer networks. Friends, family, colleagues, and strangers rely on e-mail to maintain relationships and to transact business. Most of the activities of writing, editing, and publishing involve computers and networks regardless of whether the final product appears online or on paper, making "electronic publishing" a misnomer. Even in the "old economy," orders are placed, invoices are paid, and credit cards are verified and charged via computer networks. Individuals turn to the Internet as a primary source for all sorts of information--health, hobbies, homework, news, shopping, music, games, research, and general curiosity.

Libraries are but one of many institutions that could no longer function without computer networks, at least in the developed world. Libraries depend upon computer networks as a means to provide access to local and remote information resources. While physical materials continue to form the core of most library collections, fewer and fewer services require that users physically enter the library building. Even artifacts such as books can be ordered online for delivery to one's home or office.

A paradox of the networked world is that as libraries become more embedded in the information infrastructure of universities, communities, governments, corporations, and other entities, the less visible they may become to their users, funders, and policy-makers. Libraries must be integral components of the information infrastructure of their organizations if they are to provide the most effective, efficient, and appropriate services to their user communities. Independence and isolation are not suitable alternatives.

Historically, libraries have played key roles in information-oriented societies. Yet today, some of their roles are being duplicated by other public institutions such as archives and museums and by commercial providers of content and services. Individuals and organizations now have many information sources alternative to those provided by libraries, which would suggest that the role of libraries is shrinking. However, libraries are expanding to include a wider array of services, such as providing digital libraries and support for distance learning. Despite this broader scope, libraries exist in a competitive environment, facing greater demands for services and often with fewer resources to meet those demands.

Libraries can and should play key roles in the emerging global information infrastructure. To do so, they must address a number of complex challenges. Research on these challenges will assist libraries in identifying and accomplishing their roles in a global information infrastructure. The four challenges for libraries are introduced in a recent book (Borgman, 2000). Here I extend and update those issues, frame them as research questions, and suggest methods to explore them.

INFORMATION INFRASTRUCTURE

A first step in exploring the role of libraries in a global information infrastructure is to consider what is meant by "infrastructure." Familiar phrases such as "national information infrastructure" and "global information infrastructure" are rarely accompanied by clear definitions of the underlying concepts. Star and Ruhleder (1996) were among the first to describe infrastructure as a social and technical construct. Their eight dimensions can be paraphrased as follows: An infrastructure is embedded in other structures, social arrangements, and technologies. It is transparent, in that it invisibly supports tasks. Its reach or scope may be spatial or temporal, in that it reaches beyond a single event or a single site of practice. Infrastructure is learned as part of membership of an organization or group. It is linked with conventions of practice of day-to-day work. Infrastructure is the embodiment of standards, so that other tools and infrastructures can interconnect in a standardized way. It builds upon an installed base, inheriting both strengths and limitations from that base. And infrastructure becomes visible upon breakdown, in that we are most aware of it when it fails to work--when the server is down, the electrical power grid fails, or the highway bridge collapses.

Majority of European shoppers motivated by price to buy online, says study - Internet/Web/Online Service Information

2007-09-08T03:31:00.000-07:00

US research company Jupiter Communications and its European survey provider Ipsos have released a new study about the attitudes and behaviour of European Internet users.

The survey, which questioned 19,000 households in France, Germany, Britain and the Scandinavian countries, reveals that 57% of online shoppers are motivated by better prices while just 42% are motivated by better security for their credit cards and/or personal information to purchase products online.

Among Scandinavian shoppers the importance of better prices over increased security seems to be even more marked with 62% citing better prices compared to 50% in France, Germany and the UK.

The study also shows that Scandinavian users more frequently conduct information-related activities. Almost half (49%) of the Scandinavian respondents stated that they had used the Internet to investigate travel arrangements compared to just 24% in Britain, France and Germany.
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In addition, 40% of the Scandinavians had visited web sites and online channels about health or medicine and 26% had conducted online personal banking. The corresponding figures for the three other countries were 17% and 14%.

Manufacturer, Researchers Develop Fiber-Optic Fraud Buster - Brief Article

2007-09-07T03:29:00.000-07:00

U.K. optical lens vendor Optical Antenna Solutions, working in conjunction with researchers at Warwick University, developed and is trialing an optical device it says will help reduce credit-card fraud. The new optical lens and antenna reportedly can capture data signals from wireless phones more efficiently, over greater distances and at greater capacities. When wireless subscribers are ready to make purchases using their handsets and credit card accounts, the antennas, inserted in mobile phones to read as part of the infrared port, will be pointed toward cash registers, where similar infrared ports are located. Personal security codes are then entered into the phones, at which point the OAS antennas capture light signals carrying the data required to authorize the transactions. When the information is verified, handshakes take place, completing the purchases. South Korea is testing the system, which also will be trialed in Japan, the United Kingdom and the United States

Cheap frills - online brokers and what services and commissions they offer the investor - includes information of commissions and services

2007-09-05T09:28:00.000-07:00

Online brokers were heavily engaged in a game of one-upmanship last year, testing how low they could go. The commission-slashing seems to have settled down for now--at rates unimaginable just a couple of years ago. Commissions at the top ten online firms have plummeted from an average of $32.19 early last year to just $15.77 early this year, according to an analysis by Piper Jaffray.

But even that's high for our winner this year. The cheapest guy on the Net, Brown & Co., will execute your market order for a mere $5.

Although low commissions Create the buzz about online brokers, it's not the only thing to consider when choosing and using one. A firm that's fine for active stock traders who want to do their own research may not fit the needs of buy-and-hold investors who want to keep stocks and funds in the same account or for investors who trade exclusively in their IRAs. That's why we didn't crown a "best overall" among the 16 online brokers in our survey. Instead, we picked the winner in each of seven different categories---not only for commissions but also for fees, margin rates, products and services, mutual funds, IRAs and investor tools.

Because there are more than 80 (and counting) online brokers, we left out the small niche players and brand new firms--some of which are likely to be gobbled up by banks and larger brokers. We also left out discount brokers that haven't made a big foray onto the Internet.
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BROWN BEST FOR COMMISSIONS

At Brown, $5 gets you a market order for up to 5,000 shares of any stock listed on a major exchange or on Nasdaq. Add $10 for a limit order and Brown's $15 combo is the lowest for any firm on our list--but only slightly lower than Suretrade's $15.90 for a market and limit order on up to 5,000 shares. George Brown, head of the company that bears his name, keeps costs low by limiting customer perks; for example, his is the only firm that doesn't offer even the most basic research tools on its Web site. (Evidently, overhead is low, too: When we called for an interview, he answered his own phone.) Brown says business has increased 50% since the firm lowered its commission to $5 in March. "But I don't plan on reducing it any more," he says.

The highest trading costs in our survey are at Accutrade and Charles Schwab: Each firm charges $29.95 for each market or limit order up to 1,000 shares.

BEYOND THE LIST PRICE. Ameritrade and Web Street Securities do not set a limit on the number of shares covered by the basic commission, but elsewhere, high rollers can get nicked by additional charges for large trades. The other firms charge for each share beyond the limit, except Datek, which charges an additional basic commission for every 5,000 shares.

Depending on how it is applied, that charge of 1 or 2 cents per share (3 cents in Schwab's case) can sabotage the rates you signed on for. Discover Brokerage Direct and Waterhouse Securities recompute the entire order at the excess share price. So at Waterhouse, for example, a $12 market order for up to 5,000 shares jumps to $50.01 for 5,001 shares. And at E*Trade, the extra commission is figured on the whole order and then added to the basic commission (hiking the cost of a 5,001-share market order from $14.95 to $64.96).

Options traders are out of luck at American Express Financial Direct and Datek. The other brokers trade options at minimum commissions ranging from $14.95 plus $1.75 per contract at Web Street to $40 at DLJDirect.

BEST BETS FOR BONDS. Commissions for buying one Treasury bill range from $25 at Web Street to $60 at American Express. For ten NYSE-listed corporate bonds, commissions range from zero at DLJDirect to $50 at Accutrade, E*Trade, Quick & Reilly and Suretrade. Ameritrade, Bull & Bear, Datek, Discover, National Discount Brokers (NDB) and Waterhouse sell neither Treasuries nor corporates online. American Express and Fidelity will buy Treasuries for you but not corporate bonds.

BULL & BEAR BEST FOR OTHER FEES

The brokers in our survey don't go slap-happy with extra fees. Bull & Bear gets the laurels in this category for applying only one fee out of the seven we checked: $15 for an outgoing wire transfer. Of the other firms that charge only one of the seven fees, Waterhouse charges $25 for the same service; Datek charges $50 to issue a stock certificate--the highest fee for that service, which many online investors aren't concerned about. American Express and E*Trade charge five of the seven fees.

Cyber alert! These simple tools can keep your business safe from payment fraud

2007-09-03T03:27:00.000-07:00

E-TAILERS BEWARE: Internet fraud is alive and well in cyberspace. According to a November 2004 survey about online payment fraud conducted by CyberSource, a Mountain View, California, provider of electronic payment and fraud-prevention solutions, U.S. merchants expected to lose an estimated $2.6 billion to online fraud in 2004, $700 million more than in 2003.

Hardest hit, according to the survey, are midsize companies--those with annual online revenues between $500,000 and $5 million. This group said it expected to lose up to 2.5 percent of online sales to fraud, compared to 1.9 percent in 2003. The reason for this increase is twofold, according to Bruce Cundiff, an analyst at Jupitermedia Corp. "One is the increasing organization among the fraudster community that allows for more efficient fraud perpetration," he says. "In addition, larger businesses tend to be among the first to implement more stringent security measures. Fraudsters will always choose the path of least resistance." Smaller businesses with out sufficient fraud protection mechanisms in place risk being exploited.

You can fight back against payment fraud using a basic fraud-detection service, such as an address verification system, which matches street numbers on a customer's billing address with the address on file with the credit card company. A mismatch may indicate that the person making the transaction is not authorized to use the card.

Another prevention method uses credit card verification codes--the four digits printed on the front of an American Express card or the three digits on the back of a Visa or MasterCard. Buyers enter this code when making purchases, so in theory, buyers need more than just the card number to buy online; they need the actual card to read the code.
Utility Safeguard LLC , a Southampton, Pennsylvania, company that sells construction supplies to industrial companies, distributors and consumers online, has found these solutions to be very effective. Last year, the company had sales of $1.5 million and is on target to reach $3 million in sales this year. Utility Safeguard uses a fraud-detection service called Payflow Pro from VeriSign. The service is integrated into its NetSuite e-commerce software platform.

With this solution, a new customer cannot check out until he or she has entered all the proper credit card information and the card has been cleared. "I have not had one bad credit card transaction since I began using the system in 2002," says founder Jim Graham, 43, who implemented the system.

Many experts, however, say that address and card verification systems are only a first step. Merchants selling valuable products that are easily resold, such as electronics, should also invest in the advanced fraud protection services offered by gateway providers. These services generally use fraud filters to screen for suspicious activity in real time. They cost an additional $30 to $1,500 per month, depending on the level of customization, along with additional setup and transaction fees.

Another logical way to protect your business is to make sure the freight carrier obtains a signature before delivering the product. Graham also insists international customers prepay through wire transfer. Says Graham, "We do not take foreign credit cards because if there is a problem [overseas], it's hard to get your money back."

Smart Design

Before implementing fraud-protection services, however, web merchants should design websites that are more fraud-resistant, says Vic Dolcourt, senior product manager for risk products at CyberSource. He recommends designing the checkout process so that after a consumer presses the "buy" button, the "back" button on the web browser no longer responds. Also, thank the customer for the order without indicating whether the card has been accepted. Says Dolcourt, "This way, the site doesn't serve as a tester for fraudulent account numbers."

American Express Credit Cards

2007-09-02T03:41:00.000-07:00

American Express is famous for offering two unique credit card types - those with a revolving credit line and those that must be paid in full at the end of the billing period. Cards of the latter type carry a "n/a" value in the Regular APR category as listed with each credit card below, whereas those with a line of credit will have an annual percentage rate listed. Do not mistake a "n/a" to mean that there is no interest rate associated with the corresponding card - this simply means that you must pay your balance in full or you may be subject to a large fee. See the terms and conditions for the credit card you choose before you apply to view the specifics of the payment program.

Credit cards weren't always the defining product/service of American Express; in fact, the company opened its doors in 1850 as a logistics/freight company in New York. This was during a time when the United States Postal Service was unable to deliver packages that were larger than a letter, which presented a business opportunity for companies like American Express to capitalize on a need for a reliable delivery service. Thus, American Express was born - and the relationships they developed with their partner companies early on laid the groundwork for a national financial services firm that would later offer the early versions of credit cards to more than 1 million account holders by the late 1950s. Today, American Express specializes in financial services centralized around a travel-planning background, which gives rise to many of the amazing American Express credit card offers with travel rewards.

Dumb uses for smart ID cards - Brief Article

2007-09-01T02:29:00.000-07:00

In the wake of the 11 September terrorist attacks, the US Congress has become increasingly enamored with the idea of issuing chip-enabled national ID cards that could store all sorts of identifying data, from the carrier's birth date and Social Security number to a DNA sample.

Law enforcement agents and airport security staff could supposedly fight terrorism by using devices to scan the cards and match the card data against a centralized database with the same information to verify the cardholder's identity.

Civil rights and privacy advocates understandably went out of their minds, fearing the abuses that such a system would invite. Under a smart ID card system, the government could easily track a person's travel, purchases, political affiliations and reading material, and correlate that data into a profile for whatever purpose the police saw fit.

Australia is currently having the same debate. Elsewhere in Asia, smart national ID cards have already arrived. Malaysia began issuing smart ID cards with fingerprint data in September last year. Last month, the Macau government launched its own smart ID card plan. Meanwhile, Hong Kong is going ahead with plans to launch its own smart ID card system in mid-2003.
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In each case, these cards are expected to double as debit cards and possibly function as driver's licenses or library cards at the cardholder's request. The Hong Kong government plans to issue free digital certificates with each card in a bid to encourage online commerce.

But are smart ID cards a smart move even for countries that have already adopted them, much less for other countries considering doing the same? That depends on what you really want to use them for. The technology behind smart ID cards is pretty reliable now, and is getting better all the time. But like all technology, it's only useful if it accomplishes what you want it to do.

Solutions searching problems

For example, Hong Kong's idea of including free digital certificates with smart ID cards is a novel idea, but whether it would significantly drive e-business is debatable. Just because you have a free digital certificate doesn't mean you're going to trust it or the third-party authenticator that issued it. That will take time. That said, the ID card would serve as a good mechanism for getting them out in the public, so perhaps it's a start.

If you want to use smart ID cards to prevent atrocities like the 9/11 attacks in the US, however, forget it. The terrorists on those airplanes could have had either valid ID cards or faked ones good enough to fool airport security. Smart ID card proponents vehemently disagree with this, but smart cards can be forged. In the US, for example, people working for the state government departments that issue driver's licenses have been caught making and selling fake licenses showing the cardholder is old enough to buy beer. If you wanted to get a smart ID card for the same purpose, one key crony or easily bribed official in the local immigration bureau is possibly all you'd need to get one.

This problem also applies to just about everything else a smart ID card could be used for. Even a digital signature won't prevent someone with the right connections or skills from using a duplicate card (provided the original cardholder doesn't know it's been duplicated) or a card made for "someone" who only exists because the central database says so.

Privacy vs convenience

Of course, none of this is any reason to reject smart ID cards altogether. If we refused to use any technology with a security flaw, the Internet wouldn't exist and we'd all still do all our banking at teller windows. Smart cards work and work well for things like access to campus buildings and prepaid debit cards. I use both types in Hong Kong and mainland China, and they're convenient to use.

The idea of a national ID card may go against the grain of privacy advocates, but in countries that already have national ID cards (which, incidentally, outnumber those that don't) it's less of a concern. The convenience factor alone will probably drive acceptance of smart ID cards for certain things. People routinely give up privacy for convenience or security, which is why we hand out our ID numbers to service providers we want to do business with, or let airport security staff X-ray our bags.

Sure, the potential for data abuse exists, but that's true today with credit card data and existing analog ID cards. That doesn't make it right, but rather than a ban on smart ID cards, what we really need are enforceable privacy policies that require transparent data processing, prohibit unauthorized third-party sales and allow people to access their own files.

Cash Back Credit Cards Offer Many Rewards

2007-08-31T02:02:00.000-07:00

The benefits of cash back credit cards are easy to see. You spend some money and then you get some of it back just for using your credit card. But, is it really that easy? Can this be something that just is a good choice to have? Sometimes, good things are out there. Other times, there are plenty of drawbacks. Yet, when it comes to cash back credit cards, there are more good than bad if you take the time to do your homework, use the card wisely and choose the best card available.

How They Work

The cash back credit card works in a number of ways. Just as there are the many different types of merchants and retailers that accept this type of card, there are just as many if not more differences among the credit cards themselves. If you are looking for the ideal opportunity, then you should carefully consider each of the available options and determine which fits the best.

The cash back card works quite simply. You spend your credit card funds any way that you would like to. As you use your credit card, you will find benefits along the way. Some retailers will provide for higher rewards than others. Or, you may have the ability to earn cash back on virtually any purchase. As you use your cash back credit card, you benefit by having some of the funds that you spend refunded to you. Yet, what is important to know is how that actually occurs.

Some cash back credit cards will reward you with a simple credit on your outstanding credit balance. Others will send you a certificate or some other form of rebate. Before you sign up for a cash back card, however, make sure that you understand how you will get your cash back. If the method in which they do this is not one that fits your needs, obviously, you should not bother with the offer. Yet, most cash back cards offer the rebates to be rewarded simply and easily to cardholders.

Another Consideration

The cash back credit card is like any other credit card in how it is set up. Therefore, when you are considering it, determine if, in fact, the value of the cash back reward that you get is inline with the cost of using the credit card. A higher interest rate or a higher annual fee really can negate the overall benefit of the card substantially and might even be more expensive to maintain than your existing cards. Therefore, it is up to you to investigate at least several offers and definitively decide which one seems to fit. In doing so, compare the interest rate, any fees that including annual fees, cash advance fees or over-the-limit fees, and be sure to weigh those costs against how much that you anticipate the rewards will pay you back.

A cash back card is, quite simply, an outstanding financial opportunity if used properly. It is more beneficial to individuals that use their credit cards judiciously (i.e., consistently paying off the monthly card balance) and have a good credit history as these things can help to lower the interest rate that you are paying. Yet, if you are to truly benefit from them, you should invest some time in comparing the options that you have in various card offers.

Are 0 Interest Credit Cards Reality or Myth?

2007-08-28T08:01:00.000-07:00

If you are looking at owning a new credit card then obviously 0 interest credit cards hold a lot of appeal for you. Anything with 0 interest does grab attention, for that matter! But in the name of 0 interest credit cards, there is a lot of subtle dodging that credit card companies are playing with,to ensure you catch the bait. The question is will you?

Admit it. You are hooked on the 0 APR credit card ad that you just saw in the morning newspaper,and your interest is piqued. Are these 0 interest credit cards a reality or are they just a myth?

The truth is, they are and they are not! They are for real because there are cards that live up to the promise to a certain degree, but the truth is also that this 0% interest does not last long. It might just be an initial gimmick to get you to apply and once you’re a cardholder, you will only have the 0 APR credit card for just a short time (3 months, 6 months, or if you’re very lucky 12 months) before they start charging you a higher rate of interest. Truly, this credit card game is an interesting one to watch, if you are the suffering player. Read on to know what you can do to make sure you are not the sufferer.

Understanding 0 APR Credit Cards

Admittedly, 0 APR credit cards hold a lot of enticement. But here’s what you’ve got to do when you find that a 0 APR card that has piqued your attention. Pay attention to how long the no-interest period will last, whether you can transfer other balances at the 0% rate, and, most important of all of these, what the APR rate will be when the offer ends! When you are done assessing these parameters you can properly finalize from the card options available.

The Luxuries of Owning a 0 APR Credit Card

If you’ve already accumulated a huge debt on your previous credit cards, there’s good news for you. A 0 APR credit card is known to benefit users with large outstanding card balances in a big way. Not only are these users able to cut down the amount of interest incurred upon their debt, but with the help of a 0 APR credit card they can also gain access to competitively priced cash advances, which can help consolidate outstanding high APR debt. There are fees and APR's attached to these cash advances, however.

Pitfalls of 0 Interest Credit Cards

*Most (in fact all) 0 interest credit cards offer 0% interest or no interest only for a limited amount of time, which varies between 6 to 12 months.

*If you’re thinking of transferring balances from high interest credit cards, some of these cards might not even allow you to do so during the introductory 0% offer period.

*Certain 0 APR credit cards might also charge expensive balance transfer fees.

*Some of these 0 interest credit cards also carry very high penalties for late payments and automatically switch you to a variable APR rate for a late payment.

*Certain 0 APR credit cards charge a very high interest rate after the introductory (read honeymoon) period expires.

Yes, the picture is definitely not all rosy, even though you can undoubtedly save money through the use of some 0 interest credit cards, not using them judiciously can be an expensive proposition. So choose and use them wisely.

posted by Medical Information @ 1:38 AM

Airline Miles Credit Cards: Achieving The Best

2007-08-26T09:01:00.000-07:00

Airline miles credits cards offer you the opportunity to fly and save money while you are doing it. If you are someone that flies quite a bit, there is no doubt that you have benefits here. If you are someone that seldom flies, the right airline credit cards can actually help you as well. To understand how they work in detail, you will need to compare the ptions in credit cards out there. Although they are all quite different, they have the same basic foundations.

What Airline Miles Credit Cards Provide

The benefit that airline credit cards have is that they can provide you with the ability to bank miles. Miles are literally flying miles. If you purchase an airline ticket today using the credit card, you are likely to bank miles for your next trip. After awhile of banking these miles, you may be able to accumulate a free trip or at least a discounted one. Someone that flies more often will obvious have more of an opportunity to achieve this. Yet, anyone that moves from place to place at least sometimes can use these credit cards to help them to save some money.

What To Know

First off, there is a wide variety of airline credit cards on the market. Each of these credit card companies offers a different annual percentage rate, annual fee, and credit limit, just like your standard credit card would. If you are looking to find an opportunity to save money here, which you should do, compare the various credit offers you have on these features. Determine which offers you the best overall cost on those airline purchases.

Secondly, there is more to the airline miles credit card than appears on the surface. Those aspects are the most important financially speaking, but from the stand point of the airline miles, there are more things for you to think about. For example, you should take note of how many miles you get per purchase. One credit card may provide a fraction higher amount than the other. On the same token, one provider may limit you considerably on when you can actually use your miles, how you can use them and on which airline or flights you select to use them on. This can be rather restricting and a waste of your time if you do not have the opportunity to benefit from this reward. It pays to spend an extra five minutes comparing these features.

If you do not fly very often, airline credit cards are obviously less beneficial. Nevertheless, they can be beneficial to infrequent travelers as well and are well worth the consideration in any case.

When it all comes down to it, airline miles credit cards are a rewarding option to have among credit card options. Some offer you the ability to bank miles for an indefinite period of time, so why not use them? Make sure that you determine which credit card is the best overall option for your particular needs, considering all other fees, interest rates and card features. Then, make sure that they fit your needs with respect to the mile rewards offered. When these two things coincide and you subsequently qualify for the card, you can benefit substantially from the very best airline miles credit cards.

Business Credit Cards Offer The Ideal Choice

2007-08-24T07:00:00.000-07:00

Business credit cards are something that most business owners need to have. There are business trips and expenses to pay for. There are meals to cover and costs for rewards for good employees. To handle all of these needs, the right credit card should be in hand. Yet, if you are choosing credit cards simply based upon advertisements that you receive in the mail you may be missing out on some of the best card options out there. For large and small businesses, there are plenty of opportunities for success to consider with the right business credit card.

To gain the right benefits with these credit cards, you do need to consider all that they can offer you. Each and every one of them is quite different. To help you to sort through all of the benefits, take into consideration your needs as well as your needs when considering how to beef up the strength of your credit standing. Here are some tips to help you in your search:

* Determine flexibility in spending -- In many business credit card accounts, the goal is to have an open spending limit so that you and your employees can have the available credit necessary without worrying about hitting an over limit. Take some time to consider what opportunities either a charge card or a credit card can provide in terms of their charging limitations.

* Determine the Ongoing APR -- Even though this is a business credit card, you still should pay some attention to the APR that is being offered to you. In many cases, the slightest difference either way can make a huge difference if the balance is not paid for in full each month. Taking the time necessary to determine which card has the best ongoing APR is very important for your long-term success.

* Multiple Card Option -- Having the ability to give your employees the credit cards they need is also important. It is likely that you will want all of these cards managed under one plan. Yet, you may want to put restrictions on how much credit will be extended to each individual employee. That being the case, special consideration should be given to the card options that provide flexibility with multiple cards and customizable credit limits for individual employees.

* Fraud Protection -- Something that is being offered most card issuers is fraud protection. If someone should use a credit card in your name without your authorization, simply report the disputed charge and they will mark the disputed charges for further investigation, offering significant protection against fraudulent use.

* Access to Credit -- In the case of a small business, the right business credit cards will provide you with access to additional credit, and in some cases, substantial additional credit. Take some time to determine what it is that you need then apply for a credit card to help in making that happen. In many cases, these credit cards actually provide the means for getting over hurdles.

Business credit cards, like any credit card, should never be chosen without careful consideration. If you are looking for a means to securing the funds that you need to make things happen in your company, then consider this tool. You are sure to find several business credit card opportunities to call on to help you to do just that.

Student Gas Credit Card Comparison

2007-08-22T02:00:00.000-07:00

For a student, it can be difficult to get a credit card that saves money on gas. The best credit cards require a minimum annual income. The average college student does not have the time for classes and a job. Those who do work after class still do not earn enough to qualify for most rewards credit cards. A student usually only qualifies for basic credit card. For a student who drives there are some student gas credit cards available.

Citi Upromise Card - save 2% at Exxon & Mobil Gas Stations

The Citi Upromise Card is the number one rewards card for college savings as rated by CNN/Money. This credit card can earn you cash back on every purchase. There are tens of thousands of stores that you can save at. As a Upromise member, you can open a Upromise College Fund savings plan through Upromise Investments by saving as little as $50 a month (that’s less than $2 a day). Friends of families can automatically contribute to the college savings when they use their credit card.

•College savings on purchases, everywhere you shop!
•Plus 10% EXTRA college savings on 7000+ grocery and drug store items
•0% APR on balance transfers for 12 months
•No annual fee

The Citi Upromise Card earns 2% cash back at Exxon and Mobil gas stations, plus 1% on all other purchases. When you use this credit card at select stores, you also earn additional cash back. Best of all, there is no limit to how much you can save. Excellent credit is required.

Citi Driver's Edge Card for College Students - 3% Cash Back on Gas

Another great rewards credit card is the Citi Driver's Edge Card for College Students. This student credit card earns 3% cash back at supermarkets, drug stores and gas stations. On other purchases, you earn 1% rebates. You can also earn Drive Rebates based on how many miles you drive. For driving 10,000 miles, you can earn $100 in rebates. Here are some other features:

•0% APR for 6 months on purchases, cash advances, and balance transfers
•Earn rebates towards any car, new or used
•Build your credit history
•Free online account management
•$0 liability on unauthorized purchases
•No annual fee

There is an annual limit for the rebates you can earn. Each year you can earn up to $1000 in rebates. It is easy to qualify for the Citi Driver's Edge for College Students. They do not ask for a minimum annual income or a co-signer.

Discover Student Clear Card - 5% on 'Get More' purchases

The Discover Student Clear Card offers up to 5% cash back on select purchases such as gas stations, restaurants, book stores, theaters, clothing stores and more. Plus get 1% cash back on other purchases. There is no limit to how much cash you can earn each year. Turn your rebates into gift certificates at select stores and double your cash back. They do ask for your employment information. So you may get declined if you are not currently employeed.

•0% Intro APR on Purchases for 6 Months
•No Annual Fee
•Easiest Online Account Management Options
•Full 5% Cashback Bonus® on Get More Program purchases throughout the year
•Up to 1% Cashback Bonus® on all your other purchases
•Build Your Credit History
•Unlimited cash rewards that never expire as long as you use your Card.
•DOUBLE your Cashback Bonus® (turn $20 into $40) when you redeem for gift cards or certificates from many of our 60 brand name partners

A drawback of the Discover Student Clear Card is that throughout the year you can only earn 5% cash back on certain category purchases. Four times a year these categories change. So you might only get 5% cash back at gas stations for part of each year. If your shopping habits vary, this could work to your advantage.

Student Gas Credit Card Comparison Results

If you have excellent credit, the Citi Upromise Card would be the best choice as it offers the most savings. If you have a job but do not have sufficient credit for the Upromise Card, the Discover Student Clear Card can earn you high cash back rates. It is at the cost of a rotating rewards program. For students without a job, the Citi Driver's Edge for College Students might be right for you. It is easy to qualify for and still earns rebates everywhere you shop. Any of these credit cards would be a great way for a student to save money.

Balance Transfer Credit Cards: When They Work

2007-08-20T01:59:00.000-07:00

Balance transfer credit cards are an appealing aspect of the credit card business. They allow many people to find just what they need in getting a lower interest rate. On top of that, they allow for some of the best choices when it comes to lowering your debt to credit ratio. In short, if you choose these credit cards wisely, they can work very effectively for prospective cardholders. If a balance transfer is right for you, take the time necessary to determine what the right move is.

Learning If It’s Right For You

Balance transfers can be beneficial to virtually anyone that has a balance on a credit card that is costing them money in finance charges. If you can apply for and get a lower interest rate on a credit card, then it could be a plus to consider it. This would mean that you could move your existing credit card balance to that one and end up paying much less on the card balance that you currently owe.

Another time that it can be beneficial to you to use balance transfer credit cards is when and if you select to get rid of some of your highly costly debt to keep yourself out of collections. To use this method, you should consider what you will do after the balance transfer happens. If you can invest some time in getting this new account open and restarting your credit with them, you may be able to get a lower interest rate, get a larger credit limit and improve your credit score as well. But, you can get into real trouble if and when you do not cancel or stop using the first credit card. If you continue to use the card with the large balance on it, you could find yourself in serious trouble overall.How To Get Balance Transfer Credit Cards

If you are looking to benefit from the prospect of balance transfers, you will, of course, need to find and apply for these credit cards. In most cases, virtually any credit card you apply for can be used as a balance transfer credit card. During your application process, the company will ask if you would like to use their credit card for this need. If so, then they will instruct you on how to do so right then and there. It can be that simple.

Yet, it does take some time and concentration to make it happen. To get a good quality balance transfer credit card, you should invest some time researching the best available opportunities. Luckily, you can easily do this right on the web. Take some time to look at several offers as they are all likely to be a bit different. Of course, you will also need to qualify for the credit cards in order to use this service. Here, they will likely look at your credit score and your income range to determine this need. Telling them up front that you would like to use balance transfers can be a great way to entice them into approving you for the amount that you need.

When it comes down to it, balance transfer credit cards allow people to find solutions to debt problems that they didn’t have before. If used properly, these credit cards can save a person signficiantly over time. Yet, it is necessary to find the best product at the best price for that to become a reality.

Relationships and Personal Debt

2007-08-18T01:58:00.000-07:00

For a period of almost four years, your author worked as a mortgage adviser in the UK. As you might imagine, over time all sorts of people walk through the office door.

However, there was one phenomenon that never ceased to amaze me or my colleagues and it is surprisingly common. This amazing sight?

Simply the number of people who treat their significant other poorly when it comes to money and debts.

Here is a typical scenario... A female wishes to buy a house. She has been renting or currently lives with her parents and needs to change. However, she is paying a debt each month, usually on a credit card, for a few thousand. Whilst discussing her income and expenditures, she mentions the card and that it was to pay for something (often a holiday but sometimes a rental deposit, car purchase, etc) for an ex boyfriend.

The ex boyfriend has either refused to pay anything or his share of the debt. Sometimes, he even refuses to admit that the debt exists. Fir the girl, it is easier and less painful to just put it all behind her and pay it herself.

At first, I used to think that it was just that the lady was having difficulty getting over the relationship and some poor treatment. However, as time passed and I saw this situation, or some variant, again and again, I started to realise that it probably was the ex.

What causes it, who can say? Perhaps it is purely selfish, or acts of desperation. Whatever is to blame, it certainly speaks volumes about the relationship and the person involved.

It always amazed me and my colleagues how someone, usually a man, could have such little regard or respect for a person that they had dated and obviously been close to. Of course, the post divorce finances of many are far worse. But marriage is meant to be a full partnership, till death do us part. It almost seems that some relationships are 'till debt do us part'.

Giving advice on such a delicate matter is often difficult. How do you tell someone not to spend money or help someone that they obviously love or care for? Whatever advice is given will seem mean spirited and negative. Yet, unfortunately, that is sometimes what is required. Suggesting that they 'dump' the other half is hardly likely to win you any friends!

Unfortunately, it seems that there is a small part of the population who is amoral when it comes to money and responsibility. The vast majority of us, if we owe money will work and pay it off. We are responsible and honest and keep our end of a deal.

Bad Credit Score: Go for Bad Credit Secured Loan

2007-08-16T04:58:00.000-07:00

Being categorized under bad credit due to inevitable circumstances lands you in serious trouble .It further perforates that you are an intentional defaulter which restricts the banks from providing loan .Being confronted by some unwanted situations such as late payments, CCJ’S etc you are termed as defaulter. Though these problems are highly avoidable in nature they invite high interest rates and stringent options. Thus to fulfill your dreams and to fulfill your desires you must go for bad credit secured loan.

With continuous increase in such masses it’s no longer a common scene. So giving it a separate status bad credit secured loans are being offered at low interest rates convenient to borrower. But the mandatory part is that loans are being secured against Collateral.

Bad credit secured loans –prerequisite

To get bad credit secured loan borrowers have to put their property as collateral against the loan amount .For availing apt bad credit secured loan a small market survey is essential. Surfing various websites and collecting information’s about the best loans offered gives you a better idea. Bad credit secured loans being one of the most flexible loans of the UK finance world provides loans in various cases such as- if a person is self employed or insolvent or is being declared or have received individual voluntary judgments. Also people with country court judgments or who have failed to pay arrears on mortgage or loans are being considered.

Bad credit secured loans –advantages

Since the lenders find it risky to give loans to bad creditor and hence chances of approval become higher as the number of lenders are high who attract customers to make huge profit. Since they don’t hold any prejudice against people they offer people loans at much attractive rates. Moreover customers have the opportunity to decide the monthly repayments with advices from experts. To get the best out of the lenders and financial institutions have their representatives available to clear your doubts. Though interest rates are high but still competitive with flexibility in repayment options. By just filling of a form online you can apply for it .You can improve your credit score which will also put positive impact on the lenders in case you require another loan in future.

Bad credit secured loans-features

Your financial status and collateral value must convince the lender that you have the caliber to pay the loan back. You need to submit income tax return, bank statements stress on credit checks you can borrow amount £5000 to £100000 with repayment period of 5-25 years. Generally the rates vary from 7.9% variable APR to 19.9% variable APR. A lender to compensate for the guarantee charges a high rate of interest and is reluctant to give loan to bad credit. Though this thought is no more prevalent as being untapped for a large time, moreover customers are willing to offer a high rate of interest. After taking your credit rating in account it offers you loan.

You must be very sure of paying your payments regularly otherwise your possession will be seized. Going for small amounts and offering high value collateral is a good option. While repaying loan you get loan approved by co-signers credentials. If you are having a good valued property, use it to improve bad credit score.

Frequent Flyer Credit Card

2007-08-14T07:57:00.000-07:00

The amount of air travelers is growing every year. As this trend continues there is growing interest in airlines to earn the business and trust of these travelers. Most airlines today offer some type of frequent flyer benefits.

American express and Southwest Airlines were the first companies to offer such packages. Customer loyalty was rewarded with free trips after a threshold of flight miles were logged and use of the American Express credit card counted also.

Today there are lots of choices of banking institutions from which you can obtain frequent flyer type benefits. With the growing number of banks offering these rewards, many have diversified into different types of programs and offers. The frequent flyer model has morphed into an array of ways you can use your benefits. This diversity allows us to better fit the rewards programs to our own lifestyle.

Programs that are available today range from gas stations, drugstores, supermarkets, department stores and of course the airlines themselves. The cards today can also be used at ATM all over the world to access cash when it is needed.

If you are willing to do your home work you can really benefit greatly from the use of these cards. The key is to find cards with rewards that fit your personal lifestyle.

ATT Universal Credit Card

2007-08-12T01:57:00.000-07:00

The internet has ushered in a period that has the credit card industry fiercely competitive now. Card companies are fighting to not only gain new customers but also trying to maintain their existing customer base. This high demand market has caused the consumers to be put in a very strong position. As these companies are trying to entice anyone possible to apply for their credit card, the offers keep getting better.

Some of the offers that can be had are waived annual fees. Card companies are also offering different reward programs. Rewards can be airline miles, shopping points, free gas promotions, mileage points, cash back and several others. One great promotion is the ATT Universal Credit Card that has 0% APR on balance transfers.

Before you start applying for cards you should research your options closely. By matching the reward offers to your lifestyle you will reap the greatest benefits possible. In the past this was a tedious task that involved speaking with many banks to compile a list. The internet has completely changed that. You can now do research in one evening at home that would possibly taken weeks before.

When doing your comparisons be sure you are comparing apples to apples. You can find comparison sites that have already been filled in for you that will allow you to see the benefits of Credit cards at a glance. You should not only use one site for this comparison, but instead get an average rating from several sites.

Which Credit Card Is The Best Deal For You?

2007-08-10T09:56:00.000-07:00

Choosing a credit card is not a simple task. You need to consider what you are going to use the credit card for and only then you’ll be able to make up your mind. A credit card is a complex financial contract that provides the applicant with several different services you but not all of them have to necessarily be used.

Rate or Fees?

If you plan to pay off the balance each month and thus won't incur in any finance charges, a low interest rate is less important than finding a card with no annual fee, no or small transaction fees and any rewards program that you can use to your advantage (miles if you travel a lot, gas if you use your car often, etc.)

If you’ll carry part of the balance to the next month or you need to finance purchases due to not having a steady income, a long grace period, a low interest rate and a balance calculation method that minimizes your finance charges is what you need. There are many credit cards that offer this kind of services, you just need to look for them.

Reducing Costs

All credit cards will cost you money to use, but depending on the terms and conditions, some are more expensive than others. When considering a credit card offer, check these factors:

It's important to know how an interest rate is calculated. A fixed rate will stay the same over time, but a variable interest will rise with the prime rate. It can be low today but rise every month. Be sure to determine what the interest rates are for different charges, such as balance transfers, cash advances and purchases.

You’ll also need to understand how the outstanding balance is calculated to determine the finance charge. Make sure to know how many days in the billing cycle you have to pay off the balance before you are hit with a finance charge. This varies from one credit card to another and can really make a difference.

Some cards charge an annual fee, which you may or may not be willing to pay. If the card has a lower interest than other others, it may be worth it. Otherwise, try to get the credit card with the lowest annual fee or no annual fee at all if possible. It makes no sense paying for something that you can get for free.

Even if you always pay your bills on time, be sure to find out about the card's late fees, over-limit fees and any other penalties you may incur when using the card. You never know what may happen in the future and such fees can raise your debt significantly if they are too excessive. Be sure to read the fine print. Credit card companies must disclose interest rates and fees, but some fees are buried deep in your user agreement.

Interest-Only Home Equity Lines of Credit and Second Mortgages

2007-08-09T09:55:00.000-07:00

Interest-only home equity loans are second mortgages that you pay only interest for the first 3, 5, or 10 years of the loan, significantly lowering mortgage payments during the first few years. Home equity lines of credit have been increasing in popularity because the mortgage lender only requires the borrower to make an interest only payment that tends to be less than the standard principal and interest payment.

Interest-only second mortgage loans:

• Increased cash flow with reduced mortgage payments during the first few years than conventional mortgages, because initially you're only paying interest.

• Increased purchase power to buy a higher-priced home than you could otherwise afford.

• Can help you in an emergency.

• Lower monthly payments with debt consolidation.

• Enable you to access funds for investing in a rising real estate market.

Interest only equity loans are not just for purchase loans. Many people refinance with interest-only loans to lower payments and consolidate debt.. There are also several varieties of interest-only home equity loans or second mortgages. These work in a similar way as those offered for first mortgages, including lower payments for affordability during the first few years of the loan.

Interest-only loans can be good for people whose income is sporadic, either because they are self-employed, are paid on commission or because they receive annual bonuses. This allows them to pay only interest during lean months, and make higher payments against the principal later on when they get their bonuses or commissions.

"These loans can be of value for people who want to save or invest the money they would have paid in principal," said Keith Gumbinger, vice president of HSH Associates, a publisher of loan information in Butler, N.J. Thus, interest-only loans also make sense for investors who invest the money they save into their stock portfolios. Additionally, they could work well for real estate speculators who buy property only to sell it later on when the property appreciates in value.

According to Brendon Daly, of BD Nationwide, "there is usually no prepayment penalty on interest-only loans, but look out for early termination fees."

In short, interest-only loans are for those who are more interested in freeing up immediate cash flow than in building equity in the home.

Never Pay For Gas with Cash - Use a Credit Card

2007-08-07T07:54:00.000-07:00

When you go to a gas station, you have two choices. You can either walk up and hand the teller some cash or you can use a credit card. Besides just the convenience of using a credit card and being able to get out of there much faster, a credit card can actually save you a lot of money!

Most cash back or rewards credit cards, especially those that are linked to gas companies will actually give you 5% back on whatever money you spend with them on gas. So, yes, if you bought that same gas with cash, you would be spending 5% more.

Let me just put it this way, would you save spend $100 for something of $105. Of course you would chose the lower number.

Let's just, for a second, assume that you spend about $50 a week on gas (given the way the prices are raising, most spend even more)! This means that you are spending about $200 a month and $2,400 a year.

Well, if all you do is charge that gas to a credit card and delay paying it until the end of the month with 1 easy payment, you can instantly save $120/year.

It may not seem like a lot of money right now, but think about it:

- All you have to do is switch the method of payment.
- Credit card payment is actually easier
- Credit card payment is faster
- And, credit card payments help you build your credit score (as long as you make the payments on time).

But here's the kick! Most of these same cards will not only give you 5% on gas, but also on other places like groceries. The rest of the places they give you 1% back.

So, all you need to do is switch your method of payment and you can instantly start saving money on everything you buy, no matter what. Just make sure to stay within reason when you are using your credit card and only charge that that you know you can easily pay off.