Has anyone ever heard of the “Revolution Card”?

Believe or not someone is introducing a new credit card in the midst of this turbulent economy. Revolution Money is working on becoming one of the next leading credit card providers. The Revolution Card is a little bit different than other credit cards. First of all, the card does not have the person’s name of any other information written on it. In addition, this card can not be used without a PIN code. In other words, those who don’t know the code will not be able to use it anywhere. This limits the amount of fraud that the company would otherwise have to be responsible for. Revolution Card is accepted at more than 650,000 locations and almost 85% of all ATMs in the United States. Some of the major retailers that accept the Revolution Card include ABC Liquors, A.J. Wright, AutoZone, Barnes & Noble, Bed Bath and Beyond and many more.

Revolution Money was founded in 2007 and is funded by some major players like Morgan Stanley, Deutsche Bank and even Citi Group. I like the extra security features that this credit card has to offer. The mandatory PIN code is a great way to keep unwanted users from charging up a storm on your credit card. However, if you are ever hot on the head and get a case of amnesia you won’t be able to use your card anywhere. The other major problem is if something were to happen to the magnetic stripe on your card. You would not be able to use the card anywhere if you do not have the account number. A credit card can be easily punched in manually if the information is written on the front of the card. However, that does not help you when you really need the card when the account number is written down and inside a drawer at home. All in all, I like the features that this card offers. The only problem is that the Revolution Card is not accepted in as many places worldwide as Visa, Mastercard, American Express and Discovery.

Labels: American Express Credit Card, credit card, Discover credit card, Revolution Card, Revolution Money, Visa Credit Card

Discover More Card

Sears Roebuck first introduced the Discover credit card when it was one of the largest retailers in the United States. The Discover Card rivaled its competitors by offering incentives such as no annual fee and a higher credit limit than its competitors like Visa and Mastercard. In 1993 Discover merged with Dean Witter which eventually merged with Morgan Stanley in 1997. Since then Discover has introduced a wide variety of products. One of its most popular credit cards is the Discover More Card.

The Discover More Credit Card comes with a 0% introductory annual percentage rate. This introductory rate is for 6 months on all purchases and 12 months on balance transfers. In addition, the Discover More Credit Card offers an excellent rewards program. Cardholders can benefit from 5% cash back bonus for purchases in categories such as travel, home, gas, movies, restaurants, and more. Discover also offers online account access and bill payment.

The Discover More Credit Card is an excellent choice for anyone looking for a good rewards credit card. However, like other credit card issuers, Discover will charge an assortment of fees if you are late or over your limit. Balances of less than $250 will pay a $19 fee while balances that exceed $250 will pay a $39 fee. The over the limit fee for balances under $500 is $15. Balances of over $500 also pay the higher fee of $39. Cash advance fees are 3% of your withdrawal or a $5 minimum. Qualified applicants will pay anywhere from 10.99% all the way to 18.99%, depending upon credit.

Labels: credit card, Discover credit card, Discover More Card

Three Reasons Why You Need A Secured Credit Card

There are many reasons why a secured credit card can benefit you, especially, if you have little or no credit history. A secured credit card is a credit card that is backed by some sort of cash deposit. In order to qualify for a secured credit card you need to send cash to card issuer as collateral. This cash remains in escrow until further notice. If you default on your payments, the card issuer will use your deposit to pay the outstanding balance. However, if you handle your account responsibly you will reap many benefits. Listed are three ways a secured credit card can help you:

1. A secured credit card can build your credit. If you have no credit or bad credit, a secured credit card can help you build up your credit. Should you use it responsibly and make the payments on time every month, this will be reported to all three credit bureaus. In time your secured card could even turn into an unsecured credit card because you have built up history with the card issuer.

2. Everyone needs some form of credit card to survive these days. In fact, you can not rent a car without a major credit card. Furthermore, credit cards are also used to make purchases online. There are a few processors that can process checks online, however, for the most part, if you do not have a credit card you will be limited when making purchases online.

3. The deposit in your account will earn interest. So long as you make all your payments on time, the deposit that you sent the card issuer will earn interest for you. This money will sit in a bank account that you will be unable to touch earning interest. This interest earned will also offset your interest paid, resulting in overall savings for using your credit card.

There are many ways that a secured credit card can help out anyone. The most important benefit of a secured credit card is the effect it will have on your credit. Should you use your card responsibly month after month, it will be reflected in your credit score. The better your credit score is the lower interest rates you will pay for future loans. Should you fail to pay the card as per the agreement, you will loose your deposit. Most secured credit card issuers will issue lines of credit between $500 and $10,000. The amount that you deposit will reflect your credit limit. A $1000 deposit will get you a $1000 credit line. The Applied Bank Visa Gold Card is an excellent choice for those seeking a secured credit card. Click on the card image below and apply online now.

Labels: Applied Bank Secured Visa Gold, credit card, credit cards, secured credit card, Visa Gold

Watch out for Cyber Fraud.

The other day I wrote an entry about a experience I had with a customer. To make a long story short, this guy wanted to buy some shade sails that I sell on the internet. Anyway, he claimed to be a Reverend from Africa wanting to buy 30 shade sails for his church. The total order was going to be about $12,000 (badly needed money) and so he sent four different Mastercard credit cards for me charge his order with. I was kind of suspicious of a scam but not 100%. As soon as I went online to try to charge the cards they were declined. I sent him an email back stating that the credit cards had been declined and two days later he sends me another email with four more Mastercard credit card numbers. Different then the ones he had sent before but they all had same eight digits as the other ones. By this time, I knew I had a scam artist on my hands and decided to call Mastercard to find out if the cards were valid or not. They in turn instructed me to call Citibank. I then called Citibank gave them the card information and sure enough, none of the information that he gave was matching.

The next day, as I was doing research for this blog, I found an article about a company called Heartland Payment Services who processes credit cards. Unfortunately, a hacker broke into their system and stole an undeterred amount of credit card numbers. They must have stolen thousands since this company processes credit card for more than 250,000 companies. I might not be a detective, but I would not suspect that this person tried to pass off some of those stolen card numbers. Heartland has been able to determine how long the spy ware was embedded within their system.

Cyber fraud is a very common occurrence these days. I receive every day emails claiming that I won the lottery or some sort of wacky job offer where I am supposed to be receiving monies on behalf of some foreign company. I have even received an email claiming to be the Internal Revenue Service. They then go on to say something about my stimulus check. The IRS does not solicit people via email. I have also received email from Bank of America asking me to update my account information. I do not even have an account at Bank of America. Every kind of scam that you can think of has more thank likely already been thought by some cyber thief in a foreign country.

Africa, in particular Nigeria, is well known for these types of con artists. They operate in internet cafes half way across the world prying on unsuspecting victims. Many people have fallen victim to these types of scams. I remember watching a documentary on 20/20 about a doctor that was conned by one of these con artists. Instead of using their knowledge for something productive, they use their intelligence for something sinister. These con artists are even celebrated over there.

Anyone can fall victim of cyber fraud if they are not careful. This individual that was trying to pass me the stolen credit card numbers to purchase my shade sails were looking to buy things on the internet that they could resell. It did not really make sense to me why this Rev. Oliver Smith wanted to buy 30 shade sails. He could have also tried to rob me by asking for a bank account number where he could make a wire transfer. That thought had run across my mind as well. People need to be careful with their credit card and personal bank account information. People need to look out even more especially during these hard economic times.

Labels: credit card, credit cards, cyber fraud

Why the Government Should Invest in Credit Card Bonds


The credit card industry has taken a significant toll since the onset of the credit crisis. Direct mail credit card marketing has seen a significant drop in the amount of mail being sent. Credit card issuers have pulled cards away from the affiliate marketing channel as well. The problem is that card issuers are having a hard time securitizing credit card debt. By that I mean, that credit card issuers are having less success bundling credit card debt and selling it off as an investment in Wall Street in the form of credit card bonds. The sale of credit card bonds is down 50%, thus so are approvals. The credit card industry needs to be able to be able to sell their receivables in order to generate new customers. As part of the economic stimulus package I think the Obama Administration should start buying up credit card bonds. This way consumer credit is unfrozen and people can go out and spend once again. Credit Card liquidity is needed in the economy in order to keep people shopping. The Obama administration needs to invest in credit card bonds and thus increase the spending power of the American consumer. Consumer spending via credit cards creates jobs in every sector of the economy from retail to logistics.

Retail spending has seen a significant drop off because of the credit crisis. More Americans these days putting their money back in the cookie jar. Even though some people have money they are not spending it. Job uncertainty is at an all time high these days. No one wants to spend money if they fear that job loss is possible. However, part of the reason for all these job losses is that no one is spending money. It is almost like a viscous cycle as well. Spending decreases as people continue to hoard money. Jobs suffer and continued losses occur because people are not spending. The reality is that economic growth happens because of consumer spending; not saving. The credit card industry has made it possible for consumers to spend money. The retail and service industry without credit cards is like the housing market without mortgages.

The Obama administration needs to stabilize the credit card industry as well. Card issuers have seen significant losses due to the credit crisis. The collapse of the mortgage industry has caused significant job loss in the United States. Those who are now unemployed are having a harder time making their credit card payments. In response, the credit card industry has had to reduce spending limits and increase interest rates in order to make up for the losses. This reduction in consumer credit has adversely affected spending. As I stated previously also, the reduction of spending has destroyed the job market as well. The government should invest in credit card bonds and as a condition require that card issuers lend more money to consumers. In order to save the economy we need to re establish consumer confidence and resume lending.

Credit cards have empowered consumer spending for many years. This spending has been the number one factor causing economic expansion. People with credit are able to go to restaurants and stores to spend money. Malls and shopping centers are built in order to facilitate the consumers every desire. Stores are forced to shut down when spending decreases. Circuit City has become the most recent victim to fall because of the credit crisis. 30,000 more jobs have been lost. Circuit City blames its failure on reduced consumer spending and its lack of ability to secure loans. The Obama administration needs to address this problem very soon. Once credit begins to flow again spending will increase, jobs will be created, and our economy will be back on track.

Labels: Circuit City, credit card, credit card bonds, credit card issuers, credit cards

Cash vs. Credit Cards

Thirty years ago very few people in the United States had credit cards. Today there are more than 650 million credit cards issued. As a kid in the seventies and eighties I do not remember seeing credit cards being accepted at the movie theatre. For the most part, everyone paid everything with cash. Things have changed drastically from where they were twenty or thirty years ago. Today there are credit cards everywhere from the movie theaters to the back of a taxi. It is now hard to imagine even going to the grocery store and not being able to pay with your credit card. Credit cards have completely changed the way we pay for things. It is even harder to get along without a credit card if you want to make purchases online. Have credit cards changed society for the better or for the worse? In this post I want to compare the pros and cons of life, as it once was when people paid with cash versus our modern cash less society.

In the days of black and white television everyone paid for things mostly with cash or checks. People went to the department stores to make purchases and always paid with a cash or check. Cash of course would always be the preferred method. A cash based society operates on less debt. People did not use credit cards to finance purchases. People used layaway for purchases that they could not afford. Cash was kept in the bank or in the “cookie jar”. If you did not have cash, you would pay with a check. Finances were much simpler. You spent what you had and paid with cash.

In 1970 only about 51% of American families had a credit card. Today you can’t throw a rock without hitting someone with a credit card. In the old days, everyone had to send his or her bills out in the mail or stand in line to pay. You can now pay most bills either over the phone or online if you have a credit card. This is a major improvement over writing checks and sending out a stamped envelope. The biggest advantage to having a credit card is the ability to have access to emergency loans when needed. Also, credit card companies offer rewards for spending money on their cards. That would be impossible to do with cash. Rewards earners can cash in their points for cash back, products and the most popular is airline points. 20,000 reward points can go along way. Credit cards also offer insurance on purchases that you make online or at the department store. The other advantage to having a credit card is how easy it is to replace if it gets lost. If you loose your wallet with a wad of cash chances is slime that you will see it again. If you loose your credit card all you have to do is call the issuer and cancel it. You are protected even if someone makes unauthorized charges on your card.

In all, I think that life is better now with the widespread use of credit cards. Credit cards make things easier to pay for. You can now log onto the computer or use your telephone to pay a bill with your credit card. Also, credit cards offer protection for consumers. Cash purchases do not get the same benefits that you can get when purchases are made on a credit card. There are no rewards points earned on cash purchases nor is their any consumer protection. Credit cards have given our society the flexibility that a cash only society can not provide. Money can be obtained for emergencies when needed. You can also go online and see a real time transaction report of your spending. In order to track cash expenditures, you need to save receipt, or write down what you spend on paper or pad. Credit cards have definitely made our lives easier and given us spending flexibility as well.

Labels: business credit cards, credit card, credit cards, small business credit card

How to Stay Out of Credit Card Troubles

Credit cards have essentially replaced the use of cash in our society. They are used everywhere these days. You can use your credit card to go to the movies, dinner, shopping, club hopping, traveling and just about anywhere that you can imagine. The lure to use your credit card has grown more and more over the years. Credit cards can be a great tool if used properly. However, when abused credit cards can get you in a lot of financial trouble. Staying out of trouble with your debit card is as easy as following a few basic guidelines.

Do not spend more than you can afford. This is the very most basic guideline to follow if you want to be a responsible credit card user. There are many people who apply for credit cards and use them recklessly. Reckless spending patterns are very easy to get into with a credit card. Most of are used to spending physical cash from our pockets. The day starts and you have $35 in your pocket. You spend $12 at lunch and put $20 of gas in your car. This leaves you with $3. At the end of the day your realize that you have spent $32 since you physically started out with $35 and are left with $3. With a credit card it is very easy to keep on spending. People a lot of times do not realize how much they have spent on their credit cards until the bill comes. I know because this has happened to me before as well. If you have a $10,000 limit and $4000 monthly income before you know it you will have racked up a bill if you are not careful. Since you are not actually physically seeing your money disappear it becomes very easy to start spending. However, if you have a plan and stick with you will be all right. A person with a $4000 monthly income should only spend what they plan on repaying at the end of the month.

Another good way to avoid getting into credit card hot water is too leave your credit cards at home. The old saying “out of sight out mind” is so very true in many situations. If you leave your credit card at home and not take with you too the mall with your friend, chances are you will not end up spending any money on things that you do not need or can not afford. Spend cash if you plan to have a night on the town. How many times have you gone to a club, had a few drinks and ended up spending more than you planned on your credit card? I know it has happened to me before. Alcohol lets free on inhibitions and many times the credit card spending will start. If you leave your credit card at home and spend cash, you will be limited to spending a certain amount. In the morning when you wake up you will certainly be thanking yourself for following my advice.

Log on to your online account frequently. As I mentioned previously, it is very easy to forget how much you have spent on your credit card. Most, if not all, credit card issuers have an online account for you to log on and check your statement on a regular basis. Most online sites will even track your spending in real time. In other words, if you spend $8 on lunch at the Chinese restaurant and then go log on to your account an hour later the charge will show up. Pay pal has a service that will send you an email or text message when a charge is made to your Pay Pal issued credit card. This is a very good way of keeping track of your spending. Other credit card issuers should also offer customers the same feature. Come home to your computer, go through your emails and see exactly how much you have spent.

Credit cards used responsibly will benefit anyone. There are often emergencies that come about where a credit card comes in handy. Sudden car repairs, doctor’s expenses and home repairs can easily and quickly cause you to end up in a financial fix. If you have a credit card and have used responsibly you can get yourself out of that bind quickly. However, if you have overspent your credit limit you might continue in a financial bind should you not have any other way of obtaining emergency money. Do not spend more than you can afford. Leave your credit card at home. Go online frequently to check your account. Stick with these guidelines and you will definitely keep out of financial trouble with your credit card.

Labels: credit card, credit card advice, credit card issuers, credit cards

Credit Card are Accepted Everywhere These Days

Credit cards and debit cards have definitely transformed the way we do business these days. These plastic cards that we take so much for granted have enabled us to engage in sorts of commerce. The old fashioned mail order days when you sent your check to some post office box somewhere in America are over. Although I am sure any mail order business will not refuse your check in the mail; these days mail order companies have transformed into Internet businesses that can process your order with credit cards in a flash. We were using credit cards over the phone way prior to the Internet. Credit cards are now being accepted in places that you would have not even thought of before.

Technology is now changing the way credit cards are processed and also opening up new avenues where credit cards can be accepted. The invention of the cell phone has made it possible to process credit cards almost anywhere on this planet. If you had a satellite based phone you could litteraly process a credit card anywhere in the world. This technology now makes it possible for merchants to just call a phone number, enter the card information and wait for an approval decision. Twenty years ago it would have been very difficult to set up a weekend flea market stand that could accept credit cards. Today many flea market vendors are able to accept credit cards very easily. No longer is it uncommon to go to a place like a flea market and use your credit or debit card.

Airlines are also joining the plastic money band wagon. Major airlines like Air Tran, American Airlines, Continental, Delta, Frontier, Jet Blue, Spirit and even Southwest Airlines are accepting credit cards in flight. Credit and debit cards are making our lives easier even while we travel on our favorite airline. Exact change is no longer required to purchase cocktails or beer on your flight from New York to Phoenix. These days it is possible to give the stewardess your debit or credit card instead of the cash that you have in your wallet.

You still do not necessarily need your cash once you have landed and ridding in a taxi. A company headquartered in New York has now created a service that allows taxi drivers to process credit cards in the back of their cab. Creative Mobile Technologies make a device that will allow you to swipe your credit card within seconds. This credit card swipe machine also includes a small touch screen monitor where customers can view where they are on a GPS controlled map. They can even get information about restaurants and other places of activity within the area. According to a press release this new service is being utilized in Boston and New York. It will not be long before other Taxi companies catch on and begin offering the same service.

Credit and debit cards are being accepted in wider variety of places as our society becomes “cashless”. Many people in today’s society carry at least a debit card if they do not have a credit card. Furthermore, as more employers start adopting direct deposit, even more people are using at least a debit card. We no longer have to be embarrassed by holding up the checkout line while we write out a check, have your identification checked and then get it processed. Instead, swipe your credit or debit card into the card reader, enter your pin code and your transaction takes place in a flash. Credit cards also offer protection from carrying cash as well. Loose your cash and your chances of recovering what you lost are usually slim. All you do is call customer service and cancel should you loose your debit or credit card. Furthermore, a new card is sent to you right away and your back in business. Now that you can use your credit card virtually anywhere, it make more sense to leave your cash in the bank.

Labels: Creative Mobile Technologies, credit card, credit card reader, credit cards

5 Rules Everyone Should Know about Credit Cards

1) A credit card does not become valid till it is signed

The back of every credit card has a section for a signature. Usually it is a small strip that you can write on. Next to the strip there is a small notation that says “not valid until signed”. This is where you want to sign your credit card. The card is not considered valid until this section is signed.
There are steps that a merchant should take when he or she is presented unsigned card:

a. The merchant should first ask for the customer’s identification. Adriver’s license is ideal. A signed passport will work should the customer not have a driver’s license.

b. Then, the merchant should ask the customer to sign the card and compare the signature to the signature on the driver’s license or passport. Should the signatures match, then card is good. If the signatures do not match, then the merchant needs to call the card issuer and report possible fraud.

c. If the customer refuses to sign the card, then the merchant should not accept the credit card.

2) Liability for the unauthorized use of a credit card can not surpass $50.

The Fair Credit Billing act was established to protect consumers against fraud and billing errors. In order to initiate a dispute, a cardholder should write the credit card issuer within sixty days of receiving your credit card statement. Furthermore, this letter needs to be sent via US mail. However, the cardholder is only responsible up to $50 should the unauthorized use not be reported within the sixty days.

3) A minimum purchase can not be required by a merchant as a condition to use your credit card.

Have you ever been to a convenience store to purchase a soda and chips with your credit or debit card only to find out that the store owner is requiring you to charge a minimum of $5? This practice is against the user agreement that the merchant signs when they are given a credit card processing account. The only thing the merchant can do to offset fees incurred by accepting credit cards is to increase prices. They can include a cost factor in the price of the soda and chips, but they may not require customers to make minimum purchases or charge a surcharge for using your card. In today’s direct deposit society more and more people carry debit or credit cards as opposed to cash.

4) Do not buy extended warranties on purchases if your credit card already has a purchase warranty program.

How many times have you gone to Best Buy or Radioshack and been asked to purchase an extended warranty on what you just bought? For those of you paying on your credit card chances are, your credit card issuer already comes with a buyer protection program. This is one of the advantages to using a credit card to make purchases as opposed to cash. Be sure you know the features that your credit card has to offer. In addition to purchase protection, many credit cards even give you rental car insurance or even road side assistance.

5) Merchants are not allowed to pre authorize your credit card to include a tip.

An example is when you go out to dinner and pay your meal on a credit card. You are fist given the bill, and then you give the waiter or waitress your credit card. This person must authorize your card for the amount of the meal only. They may authorize the tip without your say so. You (the cardholder) then decide how much tip to give once the individual brings back your credit card and receipt. Should you choose to give a tip, then the restaurant is allowed to charge your card.

Labels: credit card, credit cards, Fair Credit Billing Act

Capital One Business Platinum Preferred Credit Card

Capital One was founded by Richard Fairbank and Nigel Morris in 1988. Capital One Financial Corp’s primary focus is on credit cards, home loans, auto loans, banking, and savings products. Capital One was one of the first credit card mass marketers starting in the early 1990s. The Capital One Platinum Preferred business credit card is an excellent choice for any consumer.

Capital One is one of the strongest credit card companies on the market today. This credit card has many features that customers can take advantage of. The most enticing feature that the Capital One Platinum Preferred business credit card has to offer is its introductory rate. New cardholders will be happy to take advantage of 0% APR on purchases and balance transfers until 2010. That gives new customers one year without having to pay interest. This credit card is an excellent choice when transferring a balance from one card to another. Transfer your balance from another credit card If you are paying a high interest rate. Someone with a $10,000 balance being charged 18% will save $1800 by transferring their balance to the Capital One Business Platinum Preferred credit card. If you are planning on making a large purchase you will have the opportunity to pay it off in a year.

This credit card also offers an excellent rewards program. You can choose from multiple rewards programs such as gasoline stations, building supplies and hardware, computers and electronics, office supplies and furniture, advertising and shipping. They will even offer you triple rewards on the category of your choice. All other categories earn one point per dollar spent. Business owners can save money using these rewards categories. If you’re company ships products on a daily basis, you can earn triple rewards for using your Capital One Platinum Proffered credit card with most major parcel carriers such as UPS or FedEx. You can also use your Capital One credit card for travel miles as well. There are no limits on the miles you can earn, no expiration either. You get to keep your miles for the life of your account. Furthermore, you get to fly with any airline that you choose with no blackout dates or seat restrictions either.

There is no annual fee either to be a Capital One Platinum Preferred business credit card holder either. There is small $39 over the limit fee should you over charge on your credit card. Furthermore, there is also a late fee charge. This fee is based on your outstanding balance. If you owe less then $100 your late fee will be $15. If you owe between $100 and $249.99 your late fee will be $29. For a balance of $250 or more, you will have to pay a $39 late fee as well. Capital One also offers an excellent cash advance rate. Pay 3% interest on all cash advances using your Capital One Platinum Preferred business credit card. Therefore, should you withdraw $1000 cash for an emergency, you will only have to pay a $30 fee. Other card issuers charge much more on cash advance loans.

The Capital One Platinum Preferred business credit card is meant for those established business owners with excellent credit. Capital One is offering up to $20,000 credit lines for those that qualify. After the introductory period, the APR for balance transfers and purchases will be as low as 14.99%. Interest rates are determined by the applicants credit history and will vary accordingly. In all the Capital One Preferred business credit card is an excellent choice for those looking for a good business rewards credit card. Card users can save money by choosing from the many categories offered by Capital One.

Labels: business credit cards, business rewards credit card, Capital One Business Platinum Preferred Credit Card, credit card, credit cards

Corruption Still Exists in Our Government Agencies

Six top officials from Lexington Kentucky’s Blue Grass Airport lost their city issued credit cards, according to an article released by the Associated press. This was discovered that they had charged $4500 at a Texas strip club. This came after executive director Michael Gobb had charged around $200,000 on travel and other expenses in the past two years. Furthermore, it is also believed that Gobb was one of the strip club attendees as well.

I have never heard of any government jobs that allow you to use your credit card at strip clubs. Never mind the salesman that takes their clients to the clubs to close a big deal, these guys were out to entertain themselves. How did the executive director get away with spending so much money for so long? This does not make sense to me. Then again, many things are not making sense these days. This outing took place in 2003. Why does it take so long for these things to be found out? I guess it must have been easy to get away with such things when the executive director is involved. $4500 spent among 6 guys equates to $750 each person. How many drinks and table dances does this add up to, I wonder? They must have had the VIP room all to themselves all night. It all sounds like a great night with fact that they spend taxpayer dollars.

This does not come as a surprise to me. There are a lot of corrupt individuals out there in all-economic sectors including the government. I recently heard about an incident involving some inspectors working for the FDA. They were in cahoots with a fumigation company who was doing work for the government. In addition, all this was taking place at a US Customs import lot. Certain commodities are supposed to be fumigated before entering the United States. These guys were falsifying documents stating that the goods had been fumigated when in reality nothing had been done. Then they would turn around and charge the importer (who is responsible for paying) and split the money.

The Lexington City employees also must have been in cahoots with each other. There is supposed to be a system of checks and balances within our city or federal government departments. However, it seems that these checks and balances do not always work like they should. A $4500 trip to a strip-club on taxpayer money should be made a crime. These guys should all be made to pay back what they spent plus interest.

Labels: credit card, credit cards, government corruption

Watch Out for Credit Card Billing Mistakes


In today’s society there are literally thousands of credit card transactions being processed every day. Billing mistakes will commonly happen. If you do not watch your credit/debit card statements closely, chances are you will get the occasional double charge. I recently had an experience at a Valero convenience store where I live in Texas. They ran my debit card, which had been chewed up by my dog, through the machine to make a $20 purchase. Immediately the clerk responded that it did not go through. I asked here to run it again and she came back to say again that it had not gone through. A few days later, I logged onto my online account to check my account balance, and sure enough, the charge was there. The transaction that the clerk had repeatedly denied that it went through was charged on my account. I went back to the same store, and made a comment to the clerk. She claimed that it was impossible, and that I was wrong. She then gave me phone number for me to call to report the problem. I did not argue with the clerk, as I figured there was really nothing that she could do about it. This is just one example of double billing.

Macy’s, a well-established retailer, recently experienced problems with their credit card software that caused them to double bill its customers. This took place during a two hour period right before Christmas 2008 shopping. Fortunately, the retailer was able to spot the error and make corrections on customer’s accounts. However, if it were not for Macy’s discovering their error, many people would have been double charged on their credit cards. Many people would have caught the error and reported the problem, however, just as many would not have seen the problem.

Have you ever given a credit card to a waiter for him or her to charge your meal at a restaurant? I am sure 99% of you who are reading this article will respond yes to that answer. Employees can very easily make a mistake when swiping a credit card. The truth is you have not seen this person actually handle your credit card. A rookie might accidentally run your card more than once thinking that he or she was unsuccessful the first time. However, this individual might not realize that they have already charged your card. A second or third swipe might very well cause that person to unknowingly bill your credit card. Those of you who check your statements on a regular basis will probably spot the double billing. However, those who do not check their credit card bills thoroughly might not see the error. This ends up being a windfall for the restaurant and big loss for you.

The moral of the story here is to check your credit card statements every month. Chances are, at some point in time you will discover a billing discrepancy. Pay-pal, an online payment processing company offers an excellent feature for subscribers of their credit and debit cards. They will send you an email every time that your credit card is used. This would be a great feature that other card issuers should offer their customers.

Once you have detected a billing error or even fraud on your credit or debit card you need to contact customer service. The advantage to having a credit or debit card is that they will immediately give you credit. In my case, I had to fill out a form at the bank that issued me the debit card. They will then go argue the problem with Valero. In the meantime, I have been given credit. Should Valero prove me wrong, the bank will refund them the original charge. I seriously doubt that Valero will be able to contest this. In 2009 I plan to be look over my statements much more thoroughly, especially since I am one of those who does not normally look at billing statements.

Labels: credit card, credit card billing issues, credit cards

How to Negotiate Credit Card Companies

1. Save credit card offers sent in the mail.

How many times have you gone to the mailbox and found credit card offers from every issuer you can think of? You can use these offers to your advantage when negotiating interest rates with your credit card company. If another company should offer you a better offer in the mail, show this offer to your current card issuer. This is proof that you are a good customer. Furthermore, this shows that other credit card companies also desire your business. Be sure to have the ability to prove to your current card issuer that other companies are really after your business. This can be easily done with a scanner and/or fax machine. Make copies of the card offer so that you can easily fax proof of the other offers.

2. Always read the fine print.

Be sure you are aware of both major and minor details that are written in fine print. Credit card companies are famous for making enticing offers without giving all the true details. Many times card issuers offering a 0% interest rate are only doing it for a specified amount. This is known as an introductory offer that will usually not last for more than 6 months to a year. Furthermore, the more knowledgeable you are, the better prepared you will be to negotiate.

3. Always try to speak to a supervisor when calling customer service.

Many credit card companies have dedicated call centers that handle the hoards of questions and issues that customers have on a day to day basis. These jobs are usually low paying and have a high turn over. Many times, you will speak with an individual who does not know 100% how to handle customer’s issues. This person, out of ignorance, may tell you that something what you are requesting is not possible. However, we all know that in negotiating anything is possible. A supervisor is more than likely much more knowledgeable and has had experience dealing with different types of issues. Most company policies will require a supervisor to come to the phone when requested. Simply ask the customer service rep to speak with a supervisor. Sometimes they might be able to help you, however, more often then not you will get better results when speaking with a supervisor.

4. Be ready to sell yourself.

Once you have the supervisor on the line, you need to convince that person why you are valued customer. If you are seeking a better interest rate, explain to the supervisor that other credit card companies are offering you a better rate. Also, if you have always made payments on time, be sure to remind them. Furthermore, if you pay your balance every month, be sure to remind them as well. As I mentioned in step 1, be sure and have proof ready to send the supervisor. The more informed you are the better chance you will have of a successful negotiation.

5. Call another card issuer if the one you are talking to you does not make the offer you are looking for.

Always remember that there are other fish in the sea. If one company does not want to negotiate with you then simply hang up and call someone else. If one door closes, another one will open. Talk to multiple companies. Another card issuer might find your requests reasonable and be willing to work with you.


6. Lastly, be ready to transfer your balance to a new card if needed.

Card issuers prefer for you to have a balance with them, then no balance. Cardholders who maintain very low balances do not get charged a lot of interest. This goes against a card issuer’s business model. They make money of off interest charged to you that is based on your balance.

There are many ways to negotiate with any company, including credit card issuers as well. Knowledge is the key to a successful negotiation with anyone. The more informed you are with information, the more ammunition you will have when pleading your case. In addition, always, try to speak with someone that what is going on, such as a supervisor. A rookie customer service rep might not know all the rules that apply to his or her company yet. Lastly, be willing to transfer your balance from one card to another in order to secure a better deal.

Labels: credit card, credit card issuers, credit cards, how to negotiate with credit card companies

How Can a Pre Paid Credit Card Teach Your Teenager Responsibility?

Pre paid credit card are becoming much more popular as society transforms itself completely cashless. The popularity of credit cards and debit cards has influenced our society greatly. Furthermore, advancements in technology make credit card or pre paid cards more practical than ever before. Parents, especially, can take advantage of the many pros that some sort of plastic can offer. Pre paid credit cards are a great way for parents to give their children allowance and monitor behavior at the same time.

As a teenager, I remember the days of going to the mall with my allowance and spending on anything I wanted. Even though my parents told me not to be spending my money on video games, I did anyway. In those days (back in the 1980s) there was really no way of my parents knowing how I am spending my allowance. I could basically do anything I wanted with the money that they gave me. If I was told to do one thing, I would do the complete opposite. Today, parents can monitor their child’s spending habits with ease.

The advent of the internet and computers now make it possible for parents to monitor their children’s behavior. For example, your child tells you he or she is going to the movies and instead goes somewhere else. In the old days when your parents gave you cash, it was possible to take that money and spend it somewhere you were not supposed to. In addition, it was very unlikely that our parents would ever ask for some sort of receipt. However, if your child has a pre paid credit card, you can see exactly where expenditures are coming from and the dates they were made. This makes it much more difficult for a child to lie to about their whereabouts.

In addition, pre paid credit cards will show your child how he or she is spending their allowance. Hardly anyone kept spending detail when I was a teenager. By Friday I had already forgotten how much money I spent at lunch on Monday. Had I been able to access my account online and see where and how my money was being spent, I might have been a better money manager today. Pre paid credit cards will also give your child a sense of responsibility. No longer can your child tell you he or she forgot how they spent their allowance. Online account access will give you an exact detail as to how money is being spent. The ability to monitor your child’s spending will give you peace of mind as well as instill good spending habits in your children.

A pre paid credit card could also get your child out of any sort of money emergency. Your pre paid credit card will allow you to send cash almost in an instant should your teenager be away and need money for an emergency. Pre paid credit cards can be loaded with new funds either online with another credit card or at a participating retailer. Certain pre paid cards will even allow you to go to participating retailers where you can re load the card with cash very easily.

A teenager is much better off using a pre paid credit card as apposed to cash. A pre paid credit card can offer parents peace of mind as well. No longer can your teenager lie about how he or she spent their allowance. Just log into the card issuers online account and get up to date spending stats. This will tell you if your child went to the movies or did something that they were not supposed to do. A pre paid credit card can also help your child in an emergency. Money can be easily transferred into your child’s pre paid credit card account very quickly. No need to go to Western Union or any other money wire courier. Money deposited into a pre paid credit card account is accessible much easier and with less expense. Lastly, a pre paid credit card can help teach your teenager to become a more responsible adult.

Labels: credit card, credit cards, debit cards, pre paid credit card, pre paid credit cards

Payday Loans Defined

A payday loan, sometimes also called a paycheck or payday advance, is a short term emergency loan until your next pay check. Payday loans are sometimes even called cash advances. Cash advance through a payday loan is very different from a credit card. Credit card companies issue a line of credit that allows you to withdraw a pre approved amount of cash at your convenience. Payday loans issuers need to approve your cash advance every time you withdraw. The other major difference between s payday loan issuer and credit card issuers is the amount of interest that is charged. Payday loan issuers charge you based on how much you borrow. This amount is usually somewhere between $10 and $20 per every hundred dollars borrowed. Payday loans are very helpful, however, borrowers must use them responsibly.

Payday loans are used for a wide variety of purposes. Payday loans are great for those who do not have a credit card or whose credit cards are maxed out. They can be used to handle minor emergencies such as sudden car repairs or medical bills. For example, if your car breaks down and you need to $500 to fix it, a payday loan might be the only form of credit available to you. Many people need their vehicles to get back and forth between work, especially, in areas where there is limited sources of public transportation. A payday loan might be the only source of funding available to repair your car. This quick emergency loan may provide you the means to fix your car, get to work, and continue to earn money.

Payday loans may be as financially dangerous as they are useful. The amount of interest charged on a payday loan is extremely high. No bank or credit card company will charge as much interest as payday loan issuers. A $15 charge on a $100 2-week payday loan is equivalent to a 390% annual interest rate. There are 26 pay periods in a year. The $15 charge you are paying on $100 is equivalent to 15%. Multiply 26 by 15 and you end up with 390%. That is an exorbitant amount of interest charged. Charges, like interest, will begin to add up quickly if payments are missed. Should you fail to pay your loan in the 2-week allotted time period, your principal will rise. Charges will add up even faster if you miss any payments in between or fail to pay your principal. Therefore, it is very possible for your $100 loan to end up costing $300.

Payday loans are regulated from state to state due to the controversy surrounding the amount of interest lenders charge. In total, there are more than 35 states who regulate payday lending. Essentially, payday loans are regulated in states that limit how much interest can be charged in very small, or micro loans. Payday lenders are permitted to charge unlimited rates in states that do not cap interest charges on small loans.

Payday loans, allow people who otherwise can not borrow through traditional means, such as banks or credit cards, the ability to borrow money. It is very easy to obtain a payday loan. All that is required is a job and a checking account. However, these loans are only intended for a very short period of time only. Payday loans should always be paid on your next payday. Borrowers run the risk of paying very high interest rates should they fail to pay the loan timely. Payday lending is regulated from state to state. Should you wish to inquire about payday lending laws within your specific state, you may refer to online resources such as www.PaydayLoanInfo.org. Lastly, be sure and use payday loans responsibly and sparingly or face the possibility of paying the loan for a long time.

Labels: apply for a payday loan, credit card, credit card issuers, credit cards, payday loan lenders, payday loans

Credit Card Users Plan to Charge Less in 2009

According to a study by GfK Roper Public Affairs & Media, 32 percent of 1004 people polled responded that they would be using their credit cards less. On the other hand, 50 percent said that they would not change their usage habits. 15 percent said that they would not use their credit cards at all. The remaining 1 percent revealed that they would be using their cards more. The independent poll was conducted December 5 through December 7 of 2008. The following other facts were uncovered during the survey:

1) 72 percent of those polled disagree with the fact that credit card companie should have the right to raise rates and/or change terms for any reason.

2) 71 percent polled believe that credit card companies should be further regulated by the Federal Reserve.

3) 67 percent of individuals do not agree that bail out funds should be used to help people who can not pay off their credit cards.

4) 40 percent of poll participants credit card users find that paying by credit card is far more convenient than paying by cash

5) 19 percent of participants use their credit cards for emergency expenses.

50 percent responded that they would continue to use their credit cards as before. The United States is a credit based society as opposed to other emerging economies like Russia who use cash. The creation of modern credit systems has fueled economic growth in our country for many years. The lack of credit available in this current economic environment has caused significant problems for certain industries. The automakers have suffered deeply due to the current credit crisis. Consumers without funding can not make large purchases like cars. Suffering carmakers like General Motors and Chrysler are finding it very difficult to survive in this environment. The same principles apply to retailers as credit card limits are slashed. Ultimately, it will consumer spending that will get us out of this financial mess.

Those 15 percent who do not plan to use their credit cards reflect a portion of consumers who are suffering from financial problems. These people have perhaps suffered some sort of job loss, loss of savings or plan to save money. Unfortunately, this does not help our economy. It will be up to our next Presidential Administration to create jobs and instill a renewed confidence in the American buyer.

The other portion of the poll suggests that consumers are not happy with the way credit card issuers conduct their business. This should not come as a surprise since over 60,000 people left comments on the Federal Reserve website complaining. Credit card customers are complaining about hair-trigger interest rate hikes. Some customers have seen rates double and even triple. Others have seen their credit limits reduced substantially as well. Credit card issuers will comment on any specific cases, but maintain that this additional revenue is needed to make up for mounting delinquencies.

In all, I believe that most Americans will resume their old spending patterns once the economy recovers. Card issuers will also see defaults decrease once Americans are working again. Current unemployment is at an all time high of almost 7%. An estimated 24,500,000 Americans are without work. This is also a negative factor affecting the credit markets. Regulation of the credit card industry is not by favored by industry insiders at this point. However, more stringent regulations on the credit card industry could prevent what has happened to our fledgling mortgage markets.

Labels: credit card, credit card regulation, credit cards

Beware of Credit Card Skimming

Credit card skimming is type of financial con that involves someone copying your credit card information from the magnetic strip. Essentially what is happing is that someone is actually cloning your credit card. A skimming device is used to scan your information. The con artist than takes your credit card details and transfers it to another card that has a magnetic strip. For example, someone working as a waiter for a restaurant gets your card to charge your meal. Once the con artist has your card in had they swipe through the skimming device and you have just been robbed. It is also not hard to obtain a card with a magnetic strip. Any swipe card used to gain access to a hotel room or office building will work. Thieves can become very creative when looking for ways to make money.

Should you become a victim of credit card skimming contact your credit card provider immediately. You can call the loss and theft department which is usually open 24 hours a day, 7 days a week. Your credit card company will than take appropriate action. Fortunately, most credit card issuers will not hold the cardholder responsible for unauthorized charges. However, all credit card holders are paying for fraud. Fraud losses are usually anticipated and already figured into your interest rates. In other words, honest people have to cover the costs of dishonest people. This may not be fair for everyone, but unfortunately credit card fraud is fact of modern life.

In all, fraud is very costly for society in general. As consumers we are paying additional fees for all types of fraud. Automobile insurance, health insurance, the mortgage industry and credit cards are examples of industries that are very susceptible to fraud. More often then not, honest citizens are usually the victims of fraud. Should you suspect that you have become a victim of credit card fraud; report it to the authorities right away. Perhaps one day, technology will be able to protect consumers more than it does today.

Labels: credit card, credit card skimming, credit cards, fraud

Discover Financial Services Applies to become Bank Holding Company


The fourth largest U.S. credit card company, Discover Financial Services posted fourth-quarter profits due to a $535 million after tax litigation settlement from Visa and Mastercard. In addition, Discover is applying to become a bank holding company in order to access TARP (Troubled Asset Relief Program) funds.

Credit card companies are taking heavy losses due to current economic conditions. Unemployment is at an all time 15 year high. The rise in unemployment has caused many people to become past due on their credit card bills. In hard times, people tend to give more priority to utility bills and groceries than credit cards.

Despite the profits created from a lawsuit windfall, Discover is faced with heavy losses from bad debt right offs. In 2007 bad debt right offs were at 3.85% and have risen to 5.48% in 2008. In addition, Discover is also experiencing a significant rise in 30-day delinquencies. In 2007 30-day delinquencies were at 3.58% and have gone up to 4.56%.

Discover stock has also taken a beating like most of the financial sector. The 52 week high this year for Discover Financial Services was $19.87. Today DFS stock is trading right under $10. That is a 50% loss in stock value for this year.

Discover was originally the brain child of what was once Sears Financial Networks. During the 1987 stock market crash, Sears Financial Networks was forced to sell off its divisions, including its Discover Card division.

Labels: credit card, credit cards, Discover credit card, Discover Financial Services

The Fed Lowers Interest Rates to Historical Lows

On December 16, 2008 the Federal Reserve announced another major rate cut to the prime interest rate that will significantly lower borrowing costs. The idea is to stimulate the housing market so that the economy will start to churn again. The major force driving our economy into this recession has been the decline in housing prices. Housing prices have not fallen like this since 1932. The most valuable asset that American consumers boast is their house. The decline in the housing industry has created one of the worst economic recessions since The Great Depression.

The deregulation of the mortgage industry created an over inflated housing market that started this recession. Mortgage companies marketed exotic interest only loans, adjustable rate loans and other similar offers to consumers who otherwise would not be able to afford the house they were buying. Home purchases began skyrocketing since mortgages were being almost given away. This created a bubble market and thus housing prices were perceived to be higher due to the increased demand. In addition, more and more people began borrowing against their home equity. The increased home values also loosened up other credit markets like auto loans and credit cards. Consumers began spending based on easy credit and over inflated home values.

The idea behind interest rate cuts is to stimulate the housing market once again. In order to stabilize credit it is going to be imperative to keep home prices from continuing to fall. However, before home prices start to stabilize, home purchases need to increase. The idea is to get consumers to start buying houses once again. First time home buyers can possibly purchase from home owners who are looking to upgrade their living space. This will start a cycle again of people buying homes. The increase in home purchases will stabilize prices and instill confidence in the economy once again.

The other idea behind the rate cut is to allow people to refinance their homes and save money on their monthly payments. A $250,000 mortgage financed at 7% for 30 years will cost approximately $1663 in monthly payments Financed at 4.5% that same $250,000 mortgage will now cost approximately $1266 in monthly payments. That is a savings of almost $400 per month. That is a significant amount, considering $400 a month can buy a new car. Even if you do not need a new car, the savings will give consumers additional disposable income. A more empowered consumer will definitely help improve the economy. The extra $400 a month can also be used to buy clothes, go to the movies, and even take badly needed vacations. As it is, consumers are not spending money and the economy is retracting. The continued retraction of the economy will only hurt the job market more than it already has. In turn, this additional disposable income will begin to start creating jobs again. Businesses will begin to hire again as sales start to increase again, thus causing the economy to recover.

In all, the Federal Reserve is trying to everything it can to stabilize the economy. I agree with CNBC’s Mad Money Jim Cramer that the Fed is finally taking action to help our economy recover. In order for credit markets to start to recoup again home prices need to stabilize. The most valuable asset the most Americans lay claim to is their home. The stabilization of the housing market will bring about confidence in the economy once again. Lastly, the United States has survived the Great Depression, two world wars, Vietnam and even the terrorist attacks of September 11, 2001. With that said, I am quite certain that we will survive the Credit Crisis of 2008.

Labels: credit card, credit cards, economic recesion, interest rates, prime interst rate

Additional Credit Card Regulations Coming Soon

Amidst an economy in turmoil, credit card companies are being forced to face additional regulations that will change the way they do business. Regulators are getting ready to revamp the way credit card companies are able to do operate in the near future. This move comes after thousands of people have complained about unfair lending practices by the credit card industry. These new rules will require the approval of the Federal Reserve, the Office of Thrift Supervision and the National Credit Union Administration. They are all expected to vote on Thursday. This move will certainly help consumers alleviate some of the financial burdens that they are forced to deal with. Credit card issuers, on the other hand, say this will hurt their ability to lend money.

Many credit card issuers have raised interest rates and/or slashed credit lines due to recent economic conditions. Citigroup recently raised its interest rates on many cardholders after having said earlier that they were not going to do so. They claim that the increase in credit card default has caused them to have to suddenly raise rates. However, credit card companies are being criticized for raising rates unfairly as well. Some issuers will even raise your interest rate if you are late on other bills. For example, card issuers are increasing rates on people who have been late on car payments and even utility bills. This comes at a time when people are losing jobs by no fault of their own and falling behind on payments. Some consumers have even seen their rates rise from 14% to 28%. That is a 100% increase. These increased rates make it much more difficult for people to pay down debt. Many of these people are having a hard time making monthly payments and are consequently becoming even more indebted to the card issuers.

The regulation of the credit card industry will defiantly have a positive impact on consumers. Consumers spending less on credit card fees will be able to make other payments a lot easier. It is not right that card issuers raise rates on people for being one day late or even worse, being late on other bills that are not related. Consumers should be allowed at least 30 days to make the payment before any action is taken against their account. For many people a raise in interest rates means the difference between having food on the table and making a credit card payment. The regulation of interest will lower payments and free additional cash flow for the middle class consumer.

Credit card issuers on the other spectrum argue that further regulation will prevent them from be able to lend additional monies. Some analysts have even speculated that further regulation could cause banks to rescind an additional $2 trillion in credit lines. Card issuers will argue that 30 days is too long to allow before raising rates. Issuers also claim that the increased rates are needed to generate additional revenues to make up for borrowers who have defaulted.

In all, I think the consumer and ultimately card issuers will benefit from some of the regulations the Federal Reserve wants to pass. Hair trigger interest rate increases only prevent consumers from being able to pay off their credit card debt. Credit card companies will soon have access to TARP funds. This will help relieve their balance sheet of bad debt and enable them to continue to lend money.

For years card issuers have profited from unregulated lending practices. The further regulation of credit card issuers could ultimately prevent the credit card industry from the same turmoil that the mortgage industry has gone through. The prevention of another financial calamity in the credit card industry will keep our country from further financial ruin.

Labels: credit card, credit card regulation, credit cards

Applying for a Credit Card after Bankruptcy

According to the website uscourts.gov, there have been 967,831 bankruptcy filings in the United States since June 30, 2008. As times continue to get tougher it is almost certain that more people will be forced to file for bankruptcy as well. The good thing is that tough times do not last; tough people do. There is light at the end of the tunnel for those who have been forced to file for bankruptcy. The following guidelines are a good way for consumers to obtain a credit card after having filed for insolvency.

Many people are often forced to file for bankruptcy due to medical bills and the loss of a job. The other major reason for people filing for bankruptcy is overspending. If you are one of those individuals forced into bankruptcy due to poor spending habits, you might want to avoid credit cards or keep your credit cards under lock and key. The first thing you want to make sure is whether or not you are financially able to handle another credit card Be sure that you have a sustainable income that can cover all your basic expenses like mortgage payment, utility bills, car payments, food and other basic necessities that you require to live. Also be sure to have at least 6 months of living expenses saved up in case of another emergency.

Once you have determined that you are capable of paying your credit card again, you need to find the right card to get your credit back on track. The best option is to apply for a secured credit card with a limited limit such as $300. A good example is the Bank of America Secured Visa card. This card allows is customers to obtain a line of credit from $300 to $10,000. The card is secured with a deposit equaling the amount of credit you are trying to secure. This ensures credit card issuers will recoup their money should the card holder default. Once you have obtained your secured credit card; be sure and manage it correctly. Only charge what you are planning to pay in full. Pay your bill on time every month. Your credit score will begin to rise should you handle your credit cards correctly. In addition, after some time, it is very possible that your secured card will turn into an unsecured credit card. In all, managing your credit card correctly will help your overall credit and save you money on other loans with lower interest rates.

Another way to obtain a credit card after bankruptcy is to use someone else’s credit to improve your own. In other words, you can try to find a suitable co signor with good credit. This could be in the form of a friend or family member. Another way to obtain your own credit card is to become an additional card holder on someone else’s account. Make the payments on your own to the card issuer in order to show that it is you who is actually paying the bill. Also, be sure and pay the bill on time and in full every month as well. This will show that you are capable of being credit worthy. In the future you will be able to obtain a credit card on your own from the same card issuer because they have already established a good working relationship with you.

Bankruptcy should be an option taken only for very desperate measures. However, should you be forced to file for bankruptcy due to unforeseen circumstances, it is not a financial death sentence. It is possible to obtain credit for cars, homes as well as credit cards. A secured credit card is a great way to get off to a new start. If you are fortunate enough to have the help from friend or family members, a co signor can also help you obtain credit again. Be sure to pay the card yourself and on time should you become an additional card holder on someone else’s account. Most importantly, be sure that you have enough disposable income to pay your credit card balance in full every month. Following these guidelines will certainly help your ability to obtain additional credit after bankruptcy.

Labels: apply for a credit card, applying for a credit card after bankruptcy, credit card, credit card issuers, credit cards

Top 5 Responsible Credit Card Practices

Practice these five simple credit card rules and you are guaranteed to manage your account properly and increase your credit score.

1) Keep in mind, that your credit card is not a license to spend money. Many people take for granted that a credit card is like using actual money. People tend to spend differently with credit cards than with cash. You are more likely to spend less and keep track of your money if you have cash in your wallet. Your wallet can always be opened on a regular basis and you are able to physically count and feel how much money you have. On the other hand, with credit cards, people tend to forget how much they have spent. Keep track of your receipts and log online to view your bill on a regular basis. MOst importantly, do not spend on what you can afford to pay for in full.

2) Use your credit card for emergencies only. Do not get into the habit of using your credit cards for frivolous purchases. Spend what you can afford. Make yourself a monthly budget. Decide how much you can afford to spend with your credit card. If you can avoid it, do not use your credit cards at restaurants. Always pay your bills in cash when you go out to eat. Be careful when purchasing expensive items as well. You need to ask yourself if you are acting on needs or wants. If your purchase is based on a “want”, then you need to decide if you can really afford it. If you can, then go ahead and make your purchase. Do not buy what you can not afford. However, if your purchase is based on a particular need than your credit card can ease the gravity of your expenses.

3) Do not max out your credit cards. Often times, credit card issuers issue cards with large credit lines. It is very easy to over spend and max out your credit card. You will be fine if you can afford to pay the balance in full at the end of the month. However, if you can’t, you will quickly fall into a viscous interest paying cycle. Try to only spend between 10 to 20 percent of your credit cards limit. This will allow you to manage the debt easily and keep from getting in a debt trap. Your credit score will also go up if you are not always at the top your limit. Creditors will perceive irresponsible spending practices or financial difficulties. This can affect your interest rate or even cause you to be denied credit.

4) Leave your credit cards at home. There is a common saying that has a lot of truth to it. “Out of sight, out mind”. You will forget what you can not see. Keep your credit card at home and you will forget that you can use it. This is especially true, if you plan to have a night out on the town. It is very easy to go out, have a few drinks, and rack up a big bill. If you are armed with your credit card, chances are you will end up spending more than you had anticipated. If you leave your credit card at home and use cash, you will limit your chances of spending money you might regret later.

5) Do not ever give out the CVV code, or 3 digit code on the back of your credit card. Online retailers and payment gateways will always ask you for the code on the back of your card. If anyone finds out the information listed on both sides of the card, they will be able to use it almost anywhere online or over the phone. Identity theft is on the rise and these thieves are very creative. Be sure to always shred receipts with account numbers as well.

There are countless more ways to be a responsible credit card holder. Always keep in mind what you have just read and you will avoid debt and bad credit. However, most importantly, always use your common sense when using your credit cards.

Labels: Business Credit Card, business credit cards, credit card, credit cards, low interest credit card, low interest credit cards

A Rewards Card for the Single Professional


Everybody’s working for the weekend. Wait a minute. Wasn’t that a song from the 80s? It sure was, but HSBC has a great credit card that is perfect for the weekend shopper. The majority of consumers do most of their shopping on the weekend. During the week, most people are at work and do not have time to go to the stores and spend money. The HSBC Weekend rewards credit card is an excellent option forthe single professional and/or those who do most of their shopping on the weekends.

The best part about this rewards credit card is that it gives its users 2% cash back on all purchases made on Saturday and Sunday. Purchases made Monday thru Friday receive a 1% cash back reward. The single professional will benefit greatly from a rewards credit card such as this. Being a single professional myself, I do not have time to go shopping during the week. I do most of my shopping on the weekend when my work schedule is not so hectic. The HSBC Weekend Credit Card is perfect for the millions of single professionals who shop mostly over the weekend.

Unlike other rewards credit cards the HSBC Weekend credit card gives you an option to apply for an unlimited cash back rewards. This virtually gives you a 2% discount every time that you go shopping on Saturday or Sunday, or a 1% discount during the week. Go shopping at any weekend sale and add 2% to the total amount you would receive off your purchases. That $75 item with a 20% discount will receive a 22% discount instead. That adds up to an additional $1.50 in savings. Look at the savings on a monthly basis and you will notice a significant amount saved. Total the amount over a year and you can earn enough money to buy that latest digital camera you have been eyeing.

The HSBC Weekend credit card also offers protection for purchases made on your card. This guarantees your money back on any purchases that turn out to be defective. They also give you rental car insurance. This is an additional savings for any one that does business traveling and needs to rent a car. Be sure and decline the rental insurance when the rental company offers it, since you are already covered

HSBC is also offering a great introductory period for all purchases and balance transfers. The introductory period allows you to pay no interest for up to 12 months. This can be very advantageous to someone who is paying a higher interest rate on another credit card. Simply transfer your balance over to the HSBC Weekend credit card and pay it off in a year with no interest.

In all, the HSBC Weekend credit card is an excellent choice for those who prefer to do their shopping on the weekends. Since many single professionals do not have time to run around shopping during the week, this rewards card will empower them.

Labels: credit card, credit cards, HSBC Weekend Card, HSBC Weekend Credit Card, Rewards Credit Card, Rewards Credit Cards

Credit Card Regulation Could Adversely Affect Consumer Spending

Congress is working at passing new legislation that will restrict credit card companies lending practices. This comes after thousands of people have complained to the Federal Reserve’s website that credit card companies are not abiding to lending rules that are fair to consumers. There are arguments from both sides of the spectrum that seem justifiable. However, it will be up to Congress to come up with a solution that is viable for everyone.

The consumer argument is that credit card companies are being extremely unfair in their lending practices. For example, credit card companies are quick to raise your interest rates when you are delinquent with your payments. Many card issuers will even raise your rates if you are one day late. In addition, credit card companies are also raising interest rates on people with outstanding balances. This makes it harder for people to pay off their debt. The major complaint is that credit card companies are too quick to raise rates and very unforgiving of their clients.

The credit card issuers argue that restricting their ability to raise rates undermines their ability to manage risk. The further regulation of credit card issuers could also affect consumers adversely as well. Should card issuers be required to adhere to much stricter guidelines, they may get even stricter and contract credit even more. It is already rumored that credit card issuers may cut up to $2 trillion in existing consumer lines of credit. This would greatly affect the American consumers’ liquidity. Credit cards are the consumer’s second largest source of spending power next to their paychecks. The reduction of credit card lines of credit will further hurt the economy. Every sector of the economy will be affected should consumers loose $2 trillion in spending power.

Credit card issuers are urging Congress not to take any action until this recession is over. However, consumers want the government to take action quickly to keep unfair credit card practices from further unraveling. Consumers want card issuers to give them at least 30 days to make a late payment, however, card issuers claim this is too much time. The problem is that there are too many households with excessive credit card debt. Many people abuse their credit cards and often times do not have any intentions of paying their bill responsibly. This adversely affects the large majorities that pays their bills on time and does not spend more than what they are capable. Many times people will even defraud credit card companies. This also affects responsible consumers.

In all, Congress should be careful as too how they regulate credit card issuers. The country can not afford to loose any more consumer liquidity. Consumer spending has sharply fallen this year. There are many economists who argue that the only way to get out of this recession is for people to spend money. The lack of consumer spending in our economy will only cause more companies to fail. The country has already lost somewhere in the neighborhood of 300,000 to 400,000 jobs in the month of November. Further job loss will very likely occur should consumer spending continue to be curtailed. The loss of $2 trillion in credit card liquidity will certainly affect spending in a very negative way.

Labels: consumer spending, credit card, credit card issuers, credit card lines of credit, credit cards