Do you share a credit card with someone else? Find out what it means to be a joint credit card holder or an authorized user.
Credit cards are useful tools. They allow you to buy items at times when you don't have cash readily available. They can make traveling easier and provide many other conveniences; however, they're tools that come with responsibilities. Specific responsibilities are generally listed on your cardholder agreement. The cardholder agreement is the document with the fine print that comes with the initial card or arrives with each yearly update. To be a responsible card holder, be sure to:
*
Repay creditors as you agreed to when accepting the card
*
Charge only what you can repay
*
Monitor your monthly statement for accuracy
*
Report inaccurate charges immediately
If you decide to provide access or share credit with anyone, be aware of your options and the pros and cons of taking this step.
Joint Accounts
Joint accounts are accounts in which two people are equally liable (or responsible) for the charges and payments to be made on the account. Joint accounts are usually held by married couples. When accounts are held jointly, the information on repayment is reported to the credit bureaus in each cardholder's name. This means you can be held responsible for your co-cardholder's purchases and cash advances. In a joint account, each person may have their own card and only one name might appear on it, but both parties are still responsible for it.
Authorized User
An authorized user is someone who has the privilege of using a credit card without the legal liability to repay the charges made. Authorized users do not sign the credit card application indicating they accept the credit card and the responsibility of repaying it. The credit card may even contain the authorized user's name.
As the credit card owner, you may designate authorized users at any time. When applying for a credit card, there is typically a blank space on the application for authorized users. If you already have the card and want to add an authorized user, contact your credit grantor. They may accept a telephone request or require a written request. Some security measures will be in place to prohibit strangers from becoming authorized users on your credit cards.
Common examples of authorized users might be business associates, teenage or college-age children, or unmarried partners living together. For example, let's say you have a son or daughter going off to college, working a new job in another town, or on vacation, and you don't want them handling lots of cash. If you have told the credit card issuer that they are an authorized user of your card, they will receive a card with their name on it, but you are the one responsible for paying for everything charged on the account.
If you are an authorized user on someone else's account, using that credit card doesn't help you to establish your credit history. This is true even if you are the only person who sends in the monthly payment. If you're an adult and want to establish a good credit rating, get a credit card in your name only.
Take a look at the agreements for your credit cards to verify the status of any joint credit card holders or authorized users. This ensures you know who's legally responsible for the payments.
For more information on credit cards, see the U.S. Federal Trade Commission article Choosing and Using Credit Cards and the blog article Eight Things Every Credit Card User Should Know. If you are shopping for a credit card, check out the Bankrate.com or the IndexCreditCards websites for offers.
This article is one in a series about credit cards. For further information, read the related articles in our Knowledge Center Library.
Take control of your finances and debt. Use our calculators and budget planner to help you manage your money.
http://www.careonecredit.com/Knowledge/shared-credit.aspx
Wednesday, October 10, 2007
Articles - Credit Cards & Identity Theft - Online Fraud
A couple of years ago, my personal credit card account number was compromised. Did this stop me from continuing online transactions? No way.
In my case, while an unauthorized party gained my account details, no transactions were made. The bank's fraud department were understandably hesitant in releasing details of the compromise, but they were very quick in taking action. I'm not even sure that the offending party was an online merchant, hacker or traditional retailer.
The media in general have fed the paranoia levels of the online consumer community regarding online transactions. Yes, credit card numbers are stolen and yes, there are victims who suffer financial loss. But submitting your credit card details online is no different to handing your card to a shop assistant that you don't know or a waiter you have never met before. There is very little stopping merchants we carry out transactions with on a face to face basis from gathering detailed lists of account numbers to be sold off on the black market. In fact, according to the 2005 Identity Fraud Survey Report, under 12 percent of ID fraud incidents originate online.
The media have also fed the xenophobic cold war attitudes of years gone by by focusing on certain countries. Credit card number hackers are "Russian", true. They are also American, Australian and English. Every country in the world has a community of identity thieves, scammers and spammers.
If you own a credit card and don't carry out online transactions, it doesn't mean you are safe. We need to remember that most of the world's information systems are now connected somehow to the Internet. All your vital details are now available online; regardless of whether or not you are a Internet user.
If you have ever collected a welfare payment, taken out an insurance policy or registered a vehicle - congratulations! You are now part of the World Wide Web, like it or not. You can now emerge from your privacy fortress as resistance is futile. That's the reality of our modern lives.
So, now after having blown away your misconceptions of your privacy, and your false security of being safe from identity theft, let's deal with reality!
Identity theft and credit card fraud is not uncommon, such is the nature of an online world.
How do we as netizens and webmasters protect ourselves and our clients as best as possible? It boils down to a number of simple guidelines.
Password issues
Passwords - Know that little window that pops up and politely asks you if you want your computer to remember certain user names and passwords? Don't tick it! Most passwords are stored in a special file on a Windows 95/98/ME system and every half-baked pimply would-be hacker knows what it is. If you are not using a firewall, it is pretty easy for these people to snatch your password file and then crack it at their leisure using freely available programs.
Password length can also add as extra protection. Those extra few numbers and letters make all the difference. Read the article:
Safety in numbers and letters
Web masters, if you are keeping user information on your web server, ensure it is stored in the proper directory with the proper permissions. Better still, wherever possible, store minimum client information on your server.
Even better, ensure that all sensitive details that your visitors may submit occur over an SSL connection. A web server is the equivalent of a 7/11 store - open all hours for valid and non-valid customers. There is NO 100% guaranteed safe system.
Firewalls
A personal firewall is now a necessity, not a luxury. The script kiddie problem is increasing. A script kiddie is someone who fancies themselves as a hacker and utilizes freely available programs to compromise your system via the Internet. Script Kiddies have caused major problems over recent years and have been known to post up credit card numbers for all to see. Why? Bragging rights, a great deal of the time. There are over 60 000 points of entry on your PC. You can read more about the issue and gain an overview of personal firewalls by reading the articles:
Script Kiddies - Vermin of the Internet
Beware of phishing scams
Phishing is a strategy used to fool people into revealing passwords and other sensitive information by posing as a legitimate source. A common example is email sent by a party claiming to be a bank stating that the addressee must take action immediately to prevent problems with their account. The email usually has a link an online form that is branded to like the organization web site. The form will usually ask for sensitive details such as passwords, tax numbers etc.
Phishing scammers are becoming increasingly skilled in mimicking style and language of communications. They use lists of millions of email addresses to send their notes out to, in the hope of snagging even a very small percentage of addressees.
As these scams can be hard to discern from legitimate communications, the rule of thumb is that if the email has a link that leads to an account login page; don't use that link. Go to the site via another means and login, or call the company to verify the authenticity of the email.
Verify
Who are you? - Before you click the submit button for that ezine that you really gotta have; how much information are you having to give away? A name and email address should be all that's needed in most cases. Even if you aren't having to submit credit card numbers, you are still giving away information that enables people to build profiles on you which then make it easier for identity theft to occur.
It's amazing how much information you can access just knowing somebody's date of birth. If a service provider is asking you for more than your name and email address; I strongly advise checking them out before submitting.
Web masters; you need to be able to supply freely available details about your organization if you want visitors to sign up for your services. An applied and publicized privacy policy along with an "about us" page will serve to put your visitors minds at rest. You can read more about developing these vital pages here:
Bio Benefits
Reassuring your visitors
Secure connection
In the clear = danger - When you are asked to submit sensitive details such as credit card numbers, check your browser address bar. Does the address begin with https:? If it doesn't, you will be submitting details "in the clear" - unprotected. The https signifies a secure line of communications using inbuilt browser encryption, these days it is about as secure as you can hope for.
Check your accounts regularly
If you have the ability to bank online; it's probably wise to log in every couple of days to review transactions. The major banks, while quick to sniff out fraudulent activities these days, don't always pick up on fraudulent transactions.
If you do see something that looks suspicious in your transaction history, don't panic, but immediately contact your bank who may freeze your account while they investigate. In the majority of cases, you won't be liable for the invalid transactions. But I will say that having your account compromised is very frustrating as it can take a week or two to reissue cards. And if, like me, you utilize online services frequently you'll find it a time consuming ordeal while contacting your suppliers to tell them of the changes.
More on identity theft
Why steal another persons credit card numbers when you can get your own under an assumed identity? I watched a disturbing report a couple of years ago concerning the head of a security firm; who incidentally refused to have an Internet connection at home, or carry out any personal transactions online. He challenged workers within the organization to see how much information they could collate regarding him; using only the Internet as a tool.
The pile of documentation that was gathered within a couple of weeks was frightening. The file he was presented with was over two inches thick and contained amongst other things a certified copy of his birth certificate. With that type of information, a person could obtain a credit card, a drivers license, etc. etc. and happily build up huge bills under his name. There are many documented cases of identity theft and it has ruined innocent people's lives.
There are many "spy" services out there, that for only a few bucks are quite willing to provide anyone with enough information to begin building a usable personal profile. It's legal to provide this sort of information which includes court records, bankruptcy details, marriage and birth certificates. Even more disturbing is that a number of these services are provided by our Governments.
If you should start receiving strange bills for items you didn't order from companies you have never heard of, don't disregard them as billing mistakes. You may be the victim of identity theft. Contact your bank manager and law enforcement authorities immediately; it's better to be safe than sorry.
Whether netizen or web master, we can't stop credit card fraud or identity theft, but we can minimize it by being aware and taking responsibility for the amount of information we give away or store.
Michael Bloch
Taming the Beast
http://www.tamingthebeast.net
Tutorials, web content, tools and software.
Web Marketing, Internet Development & Ecommerce Resources
http://www.tamingthebeast.net/articles/creditcardfraudidentitytheft.htm
In my case, while an unauthorized party gained my account details, no transactions were made. The bank's fraud department were understandably hesitant in releasing details of the compromise, but they were very quick in taking action. I'm not even sure that the offending party was an online merchant, hacker or traditional retailer.
The media in general have fed the paranoia levels of the online consumer community regarding online transactions. Yes, credit card numbers are stolen and yes, there are victims who suffer financial loss. But submitting your credit card details online is no different to handing your card to a shop assistant that you don't know or a waiter you have never met before. There is very little stopping merchants we carry out transactions with on a face to face basis from gathering detailed lists of account numbers to be sold off on the black market. In fact, according to the 2005 Identity Fraud Survey Report, under 12 percent of ID fraud incidents originate online.
The media have also fed the xenophobic cold war attitudes of years gone by by focusing on certain countries. Credit card number hackers are "Russian", true. They are also American, Australian and English. Every country in the world has a community of identity thieves, scammers and spammers.
If you own a credit card and don't carry out online transactions, it doesn't mean you are safe. We need to remember that most of the world's information systems are now connected somehow to the Internet. All your vital details are now available online; regardless of whether or not you are a Internet user.
If you have ever collected a welfare payment, taken out an insurance policy or registered a vehicle - congratulations! You are now part of the World Wide Web, like it or not. You can now emerge from your privacy fortress as resistance is futile. That's the reality of our modern lives.
So, now after having blown away your misconceptions of your privacy, and your false security of being safe from identity theft, let's deal with reality!
Identity theft and credit card fraud is not uncommon, such is the nature of an online world.
How do we as netizens and webmasters protect ourselves and our clients as best as possible? It boils down to a number of simple guidelines.
Password issues
Passwords - Know that little window that pops up and politely asks you if you want your computer to remember certain user names and passwords? Don't tick it! Most passwords are stored in a special file on a Windows 95/98/ME system and every half-baked pimply would-be hacker knows what it is. If you are not using a firewall, it is pretty easy for these people to snatch your password file and then crack it at their leisure using freely available programs.
Password length can also add as extra protection. Those extra few numbers and letters make all the difference. Read the article:
Safety in numbers and letters
Web masters, if you are keeping user information on your web server, ensure it is stored in the proper directory with the proper permissions. Better still, wherever possible, store minimum client information on your server.
Even better, ensure that all sensitive details that your visitors may submit occur over an SSL connection. A web server is the equivalent of a 7/11 store - open all hours for valid and non-valid customers. There is NO 100% guaranteed safe system.
Firewalls
A personal firewall is now a necessity, not a luxury. The script kiddie problem is increasing. A script kiddie is someone who fancies themselves as a hacker and utilizes freely available programs to compromise your system via the Internet. Script Kiddies have caused major problems over recent years and have been known to post up credit card numbers for all to see. Why? Bragging rights, a great deal of the time. There are over 60 000 points of entry on your PC. You can read more about the issue and gain an overview of personal firewalls by reading the articles:
Script Kiddies - Vermin of the Internet
Beware of phishing scams
Phishing is a strategy used to fool people into revealing passwords and other sensitive information by posing as a legitimate source. A common example is email sent by a party claiming to be a bank stating that the addressee must take action immediately to prevent problems with their account. The email usually has a link an online form that is branded to like the organization web site. The form will usually ask for sensitive details such as passwords, tax numbers etc.
Phishing scammers are becoming increasingly skilled in mimicking style and language of communications. They use lists of millions of email addresses to send their notes out to, in the hope of snagging even a very small percentage of addressees.
As these scams can be hard to discern from legitimate communications, the rule of thumb is that if the email has a link that leads to an account login page; don't use that link. Go to the site via another means and login, or call the company to verify the authenticity of the email.
Verify
Who are you? - Before you click the submit button for that ezine that you really gotta have; how much information are you having to give away? A name and email address should be all that's needed in most cases. Even if you aren't having to submit credit card numbers, you are still giving away information that enables people to build profiles on you which then make it easier for identity theft to occur.
It's amazing how much information you can access just knowing somebody's date of birth. If a service provider is asking you for more than your name and email address; I strongly advise checking them out before submitting.
Web masters; you need to be able to supply freely available details about your organization if you want visitors to sign up for your services. An applied and publicized privacy policy along with an "about us" page will serve to put your visitors minds at rest. You can read more about developing these vital pages here:
Bio Benefits
Reassuring your visitors
Secure connection
In the clear = danger - When you are asked to submit sensitive details such as credit card numbers, check your browser address bar. Does the address begin with https:? If it doesn't, you will be submitting details "in the clear" - unprotected. The https signifies a secure line of communications using inbuilt browser encryption, these days it is about as secure as you can hope for.
Check your accounts regularly
If you have the ability to bank online; it's probably wise to log in every couple of days to review transactions. The major banks, while quick to sniff out fraudulent activities these days, don't always pick up on fraudulent transactions.
If you do see something that looks suspicious in your transaction history, don't panic, but immediately contact your bank who may freeze your account while they investigate. In the majority of cases, you won't be liable for the invalid transactions. But I will say that having your account compromised is very frustrating as it can take a week or two to reissue cards. And if, like me, you utilize online services frequently you'll find it a time consuming ordeal while contacting your suppliers to tell them of the changes.
More on identity theft
Why steal another persons credit card numbers when you can get your own under an assumed identity? I watched a disturbing report a couple of years ago concerning the head of a security firm; who incidentally refused to have an Internet connection at home, or carry out any personal transactions online. He challenged workers within the organization to see how much information they could collate regarding him; using only the Internet as a tool.
The pile of documentation that was gathered within a couple of weeks was frightening. The file he was presented with was over two inches thick and contained amongst other things a certified copy of his birth certificate. With that type of information, a person could obtain a credit card, a drivers license, etc. etc. and happily build up huge bills under his name. There are many documented cases of identity theft and it has ruined innocent people's lives.
There are many "spy" services out there, that for only a few bucks are quite willing to provide anyone with enough information to begin building a usable personal profile. It's legal to provide this sort of information which includes court records, bankruptcy details, marriage and birth certificates. Even more disturbing is that a number of these services are provided by our Governments.
If you should start receiving strange bills for items you didn't order from companies you have never heard of, don't disregard them as billing mistakes. You may be the victim of identity theft. Contact your bank manager and law enforcement authorities immediately; it's better to be safe than sorry.
Whether netizen or web master, we can't stop credit card fraud or identity theft, but we can minimize it by being aware and taking responsibility for the amount of information we give away or store.
Michael Bloch
Taming the Beast
http://www.tamingthebeast.net
Tutorials, web content, tools and software.
Web Marketing, Internet Development & Ecommerce Resources
http://www.tamingthebeast.net/articles/creditcardfraudidentitytheft.htm
Protect Your Credit
Fraud and Identity theft are one of the fastest growing crimes in the United States. If you have a lost or stolen credit card, unrecognized bills in your mail or feel your credit has been compromised you should immediately:
1. Initiate a fraud alert on your credit accounts
2. Close the account or accounts that may have been violated
3. Submit an ID Theft Affidavit to the creditors in question
4. Obtain a copy of your current credit report
5. File a police report with your local police department
6. File your case with the Federal Trade Commission (FTC)
Note that Identity theft is a federal crime and stiff penalties await those who get caught. Protect your credit and help take criminals off the streets so they cannot repeat this very serious crime.
In the case of fraud obtaining a credit report is done at no cost to you. By notifying any one of the 3 major credit bureaus of a questionable account activity will automatically trigger a fraud alert on all your credit accounts. Additionally, the credit bureau you contacted will also immediately notify the 2 remaining credit bureaus without you having to call or go online to follow a report. This will additionally trigger all three credit bureaus to send you a current copy of your credit report free of charge. Your credit accounts are then watched for 3 or more months for any unusual or potentially fraudulent activity.
What will a Fraud Alert Do to My Credit?
It is a common misconception that a fraud alert will prevent you from obtaining additional credit. This is simply not true. What a fraud alert will do is:
1. Force creditors to verify by contacting you via telephone prior to opening any new accounts.
2. Force creditors to verify by contacting you via telephone for any changes requested to be made to any of your accounts such as a credit line increase.
To Initiate a Fraud Alert on Your Credit Accounts:
Follow the six steps listed above and contact any of the 3 credit bureaus listed below.
http://www.credit-123.com/protectyourcredit.htm
1. Initiate a fraud alert on your credit accounts
2. Close the account or accounts that may have been violated
3. Submit an ID Theft Affidavit to the creditors in question
4. Obtain a copy of your current credit report
5. File a police report with your local police department
6. File your case with the Federal Trade Commission (FTC)
Note that Identity theft is a federal crime and stiff penalties await those who get caught. Protect your credit and help take criminals off the streets so they cannot repeat this very serious crime.
In the case of fraud obtaining a credit report is done at no cost to you. By notifying any one of the 3 major credit bureaus of a questionable account activity will automatically trigger a fraud alert on all your credit accounts. Additionally, the credit bureau you contacted will also immediately notify the 2 remaining credit bureaus without you having to call or go online to follow a report. This will additionally trigger all three credit bureaus to send you a current copy of your credit report free of charge. Your credit accounts are then watched for 3 or more months for any unusual or potentially fraudulent activity.
What will a Fraud Alert Do to My Credit?
It is a common misconception that a fraud alert will prevent you from obtaining additional credit. This is simply not true. What a fraud alert will do is:
1. Force creditors to verify by contacting you via telephone prior to opening any new accounts.
2. Force creditors to verify by contacting you via telephone for any changes requested to be made to any of your accounts such as a credit line increase.
To Initiate a Fraud Alert on Your Credit Accounts:
Follow the six steps listed above and contact any of the 3 credit bureaus listed below.
http://www.credit-123.com/protectyourcredit.htm
Get Out of Credit Card Debt
The average credit card debt carried by Americans is about $8,000. Since the average American household receives about seven credit card soliciations a year, it is not difficult to see how easy it is to get over your head in credit card debt. It's not easy, but there are some steps you can take to immediately begin to lower your credit card debt and regain control of your finances.
The first step to take is to look at the balances owed on each of your credit cards. Then check the interest rates being charged on these balances. Some credit cards can charge interest rates upwards of 21%. If you are carrying a balance on one or more of these high interest credit cards, and only paying the minimum payment due each month, not only will it take you years to pay off the balance, but when you finally do you will have paid many times the amount of the original charges when all the interest paid is taken into account.
To avoid this, the next step to take is to consolidate your credit card debt as much as possible. This means that if you are carrying balances on more than one card, then you should look for a lower interest card and transfer the balances of all your high interest cards onto one low interest card. If possible, you should apply for a card that offers a 0% rate on balance transfers. This will allow you to work on paying off your principal balance without accruing more interest charges.
Finally, the key to getting out of credit card debt is to reduce any unnecessary spending while increasing your monthly payments to your credit card as much as possible. The worst thing you can do is to pay only the minimum payment month after month. Don't add any further charges to your account and continue to pay off as much as possible each month and slowly but surely you will find yourself climbing out of credit card debt.
http://www.credit-123.com/getoutofcreditcarddebt.htm
The first step to take is to look at the balances owed on each of your credit cards. Then check the interest rates being charged on these balances. Some credit cards can charge interest rates upwards of 21%. If you are carrying a balance on one or more of these high interest credit cards, and only paying the minimum payment due each month, not only will it take you years to pay off the balance, but when you finally do you will have paid many times the amount of the original charges when all the interest paid is taken into account.
To avoid this, the next step to take is to consolidate your credit card debt as much as possible. This means that if you are carrying balances on more than one card, then you should look for a lower interest card and transfer the balances of all your high interest cards onto one low interest card. If possible, you should apply for a card that offers a 0% rate on balance transfers. This will allow you to work on paying off your principal balance without accruing more interest charges.
Finally, the key to getting out of credit card debt is to reduce any unnecessary spending while increasing your monthly payments to your credit card as much as possible. The worst thing you can do is to pay only the minimum payment month after month. Don't add any further charges to your account and continue to pay off as much as possible each month and slowly but surely you will find yourself climbing out of credit card debt.
http://www.credit-123.com/getoutofcreditcarddebt.htm
How to Improve Your Credit Rating
Having a good credit rating is vital to obtaining low interest loans such as mortgages, car loans, or virtually any type of credit. A credit rating is basically information on how you have used credit . Credit bureaus such as Equifax, Experian and TransUnion keep a record of the credit history of anyone who has used or applied for credit in the past. Banks and other lending institutions use these records to determine an individuals ability to pay back loans.
If you suspect your credit rating is not good, the first step to take is to request a credit report from any of the 3 credit bureaus listed in the above paragraph. Look over your report carefully to ensure it is accurate. Then stop borrowing money and using any credit cards unless absolutely necessary.
If you suspect your credit rating is not good, the first step to take is to request a credit report from any of the 3 credit bureaus listed in the above paragraph. Look over your report carefully to ensure it is accurate. Then stop borrowing money and using any credit cards unless absolutely necessary.
Then you should close any unused or unneeded credit cards. Be sure to request that it is noted on your record that the account was "closed by the consumer".
Next you should take care to avoid any late or missed payments. If necessary, contact your creditors to arrange a payment schedule that will work for both you and them. Also, if possible you should open a savings account at your bank. This will indicate to potential lenders that you are serious about saving money.
On the credit cards you still hold balances on, be sure to make at least the minimum required payments on time. However, it is always adviseable to send in the largest payment you can to bring your balance down as quickly as possible.
Finally, rebuild your credit rating by applying for a secured or prepaid card. These cards require a savings deposit and your credit line is usually a percentage of your deposit. Be sure to ask about any annual fees or application fees that may apply.
http://www.credit-123.com/improve_credit_rating.htm
If you suspect your credit rating is not good, the first step to take is to request a credit report from any of the 3 credit bureaus listed in the above paragraph. Look over your report carefully to ensure it is accurate. Then stop borrowing money and using any credit cards unless absolutely necessary.
If you suspect your credit rating is not good, the first step to take is to request a credit report from any of the 3 credit bureaus listed in the above paragraph. Look over your report carefully to ensure it is accurate. Then stop borrowing money and using any credit cards unless absolutely necessary.
Then you should close any unused or unneeded credit cards. Be sure to request that it is noted on your record that the account was "closed by the consumer".
Next you should take care to avoid any late or missed payments. If necessary, contact your creditors to arrange a payment schedule that will work for both you and them. Also, if possible you should open a savings account at your bank. This will indicate to potential lenders that you are serious about saving money.
On the credit cards you still hold balances on, be sure to make at least the minimum required payments on time. However, it is always adviseable to send in the largest payment you can to bring your balance down as quickly as possible.
Finally, rebuild your credit rating by applying for a secured or prepaid card. These cards require a savings deposit and your credit line is usually a percentage of your deposit. Be sure to ask about any annual fees or application fees that may apply.
http://www.credit-123.com/improve_credit_rating.htm
Prepaid Credit Cards
Prepaid credit cards are a great option for those who have had their credit card applications turned down in the past due to poor credit.
A prepaid credit card account is opened by depositing money into that account, much the same as depositing money into a checking or savings account. The prepaid credit card can then be used anywhere a regular credit card would be accepted.
Once the money in the account has been spent, the card can no longer be used until more money is deposited. This is helpful for those needing to regulate their spending, much like a self-imposed credit limit. Another advantage to the prepaid credit card is there are no interest charges incurred.
There are, however, fees associated with opening a prepaid credit card account. These are usually between $5 - $10. But for those with poor credit, the advantages of having a credit card available for reserving hotel rooms, car rentals, airline flights, etc., far outweigh the fees involved.
http://www.credit-123.com/prepaidcreditcards.htm
A prepaid credit card account is opened by depositing money into that account, much the same as depositing money into a checking or savings account. The prepaid credit card can then be used anywhere a regular credit card would be accepted.
Once the money in the account has been spent, the card can no longer be used until more money is deposited. This is helpful for those needing to regulate their spending, much like a self-imposed credit limit. Another advantage to the prepaid credit card is there are no interest charges incurred.
There are, however, fees associated with opening a prepaid credit card account. These are usually between $5 - $10. But for those with poor credit, the advantages of having a credit card available for reserving hotel rooms, car rentals, airline flights, etc., far outweigh the fees involved.
http://www.credit-123.com/prepaidcreditcards.htm
5 things to do when credit card companies start threatening you
As credit card debts pile up, constant calls from lenders start nagging you. Coercive initially, the tone changes increasingly threatening with passing time. Soon, a person with credit card debt avoids and tries to shy away from these calls. But will this solve the problem? No it will only get worse. The solution lies not in ignoring these calls but facing them in the right way. Almost every lender will be willing to negotiate the credit card debt terms with people who are facing problems while repaying them. But, the fact remains that the borrower and creditor must talk and work out a mutually agreeable plan for repayment. The five tips in this article will help explain your point clearly to the lender and get instant relief from harassment.
1. It is important to call the lender and explain your situation, whenever you think that financial difficulties will hinder in your repayment schedule. The sooner the better. Waiting for the lenders to give you call you will only go against you. Explain the situation clearly to the lender.
2. If you anticipate any promising financial outcome that can change the repayment scenario, inform the lender about it.
3. Tell them about what type of repayment plan you can afford. Given the uncomfortable situation you are in the lenders will definitely appreciate your willingness to repay and will try to settle on a repayment plan that you can afford, though they will safeguard their interests in this process.
4. Document everything that you negotiate with the lenders. This will help you keep track of things and will help you in case things take a legal turn. Negotiate with the lenders that this reduced and revamped payment terms don't reflect poorly on your credit score.
5. If creditors don't agree or resist a reduced payment, you can contact a credit counselor. This can help you avoid the late fees and reduce the payment burden. If everything else fails just keep on sending the monthly minimum amount to the creditors. This will keep the harassing communications at bay. In the meantime keep on calling the lenders to get a favorable solution. Remember perseverance pays, and the lenders also want their money back. A legal tangle is the last thing on their cards.
http://www.americanchronicle.com/articles/viewArticle.asp?articleID=27178
1. It is important to call the lender and explain your situation, whenever you think that financial difficulties will hinder in your repayment schedule. The sooner the better. Waiting for the lenders to give you call you will only go against you. Explain the situation clearly to the lender.
2. If you anticipate any promising financial outcome that can change the repayment scenario, inform the lender about it.
3. Tell them about what type of repayment plan you can afford. Given the uncomfortable situation you are in the lenders will definitely appreciate your willingness to repay and will try to settle on a repayment plan that you can afford, though they will safeguard their interests in this process.
4. Document everything that you negotiate with the lenders. This will help you keep track of things and will help you in case things take a legal turn. Negotiate with the lenders that this reduced and revamped payment terms don't reflect poorly on your credit score.
5. If creditors don't agree or resist a reduced payment, you can contact a credit counselor. This can help you avoid the late fees and reduce the payment burden. If everything else fails just keep on sending the monthly minimum amount to the creditors. This will keep the harassing communications at bay. In the meantime keep on calling the lenders to get a favorable solution. Remember perseverance pays, and the lenders also want their money back. A legal tangle is the last thing on their cards.
http://www.americanchronicle.com/articles/viewArticle.asp?articleID=27178
Compare Instant Approval Credit Cards
Instant approval credit cards give you an online credit card approval after you have completed the application form. Although it does not mean that you can print your new credit card immediately, credit cards with instant approval let you get your card soon by post or other convenient means. Compare credit card offers for online approval to see if you qualify.
Instant approval credit cards have lately been credit cards for excellent credit - like platinum MasterCard or other platinum credit cards. But if you compare credit cards, you will see that cards with instant approval are available for all types of credit now.
Check good credit cards and fair credit cards with instant approval, as well as search for credit cards for bad credit and credit cards for no credit history that let you make a credit card application with instant approval.
Many of Visa credit card applications and American Express credit card applications offer instant approval - compare cards for their terms of approval.
Look for consumers credit cards and credit cards for students to be instant approval cards. Some business credit cards offer instant approval as well, so you can apply for business credit cards like that.
Compare credit cards online and choose the best credit cards with low APR, credit cards with no annual fee, and balance transfer cards for your needs. Here you can compare credit cards, find the most suitable and apply online for this credit card as well as get an online approval.
At CreditHit.com you can compare credit card rates and fees as well as compare cards for rewards. Some credit cards offer cash rebates on purchases you make.
You can apply for Discover cards that give you up to 5% cash back on eligible purchases and 1% on all other purchases. Or compare credit cards from gasoline companies, like Shell gasoline credit cards, that help you save money on gas purchases.
If you are a frequent traveler - on business or of your individual needs - choose the best airline credit cards and hotel credit cards that award you with free flights, nights, car rentals and other awards attractive for any traveler.
http://www.credithit.com/Instant-Approval-Cards-916779-page.php?link=67545&cl=27470cbc785c930
Instant approval credit cards have lately been credit cards for excellent credit - like platinum MasterCard or other platinum credit cards. But if you compare credit cards, you will see that cards with instant approval are available for all types of credit now.
Check good credit cards and fair credit cards with instant approval, as well as search for credit cards for bad credit and credit cards for no credit history that let you make a credit card application with instant approval.
Many of Visa credit card applications and American Express credit card applications offer instant approval - compare cards for their terms of approval.
Look for consumers credit cards and credit cards for students to be instant approval cards. Some business credit cards offer instant approval as well, so you can apply for business credit cards like that.
Compare credit cards online and choose the best credit cards with low APR, credit cards with no annual fee, and balance transfer cards for your needs. Here you can compare credit cards, find the most suitable and apply online for this credit card as well as get an online approval.
At CreditHit.com you can compare credit card rates and fees as well as compare cards for rewards. Some credit cards offer cash rebates on purchases you make.
You can apply for Discover cards that give you up to 5% cash back on eligible purchases and 1% on all other purchases. Or compare credit cards from gasoline companies, like Shell gasoline credit cards, that help you save money on gas purchases.
If you are a frequent traveler - on business or of your individual needs - choose the best airline credit cards and hotel credit cards that award you with free flights, nights, car rentals and other awards attractive for any traveler.
http://www.credithit.com/Instant-Approval-Cards-916779-page.php?link=67545&cl=27470cbc785c930
A Credit Card Crackdown?
Comptroller of the Currency John Dugan heads the federal agency that oversees the banks handling much of the nation's consumer lending. Those 1,750 nationally chartered commercial banks include heavyweights like Citibank, Chase, and Bank of America. Dugan's agency just launched a website to guide consumers through disputes with their banks. He told U.S. News that even more needs to be done to help consumers, and he discussed the financial meltdown related to subprime mortgages.
What's the most important advice for bank consumers?
If they have a question or a concern, they need to take it up with their bank, and if they don't get relief, then contact the bank's regulator. That's what this website is all about.
But how do you contact the right regulator?
Because there are so many types of banking institutions in the United States, consumers don't know the difference between a national bank, a state-chartered bank, a credit union, or a savings and loan association or thrift institution. One of the things I've suggested to the other federal bank regulatory agencies and the states is that we try to come up with a single place where consumers can go—that is, one face to the consumers. So that once they look up their bank, it won't make a distinction between a national bank or credit union. It will just find their bank and make it easy for the consumer to route their complaint to the relevant agency. Over time, I'd like to see a common complaint form, a common toll-free number. It's going to take a little time, but I think we can get there.
Why hasn't that happened already?
We have a long-standing fragmentation in our banking industry, among different charters and different regulators. While we are always working on projects in a coordinated way, I can't tell you we always do things in a unified manner. This is an area that kind of calls out to do better. It seems to me that with the Internet, we could use it to have a single, unified place for consumers to go. I think there's been much more focus recently on consumers, and I think the time has come to really push to get this done.
Are people failing to read the fine print, or have bank practices just become so complex it's hard to understand them?
There have been new kinds of products consumers use that have many benefits. But they're also more complicated, and along with different marketing practices, they've led to more consumer complaints. Most consumers would say the credit card as a payment mechanism and as a borrowing mechanism has been a useful thing to them overall. Nobody would want to do without them. But we do get a great number of complaints about credit cards.
Are credit card practices like double-cycle billing and universal default inherently deceptive?
Well, if we thought they were deceptive, we'd take action against them. They are disclosed. The laws that are on the books now really are geared mostly toward disclosure. And the disclosures have not been overhauled for a very long time. The Federal Reserve has come up with a quite extensive new proposal which we believe will be a very important improvement. People have raised the question whether some of these practices ought not to be engaged in even if adequately disclosed. I think Congress is going to look hard and consider that. Given the volume of complaints we've seen and the volume of concerns raised by members of Congress, there is absolutely an appetite to do something in this area. Whether it's in the form of increased disclosures, whether it's in the form of companies themselves changing their behavior because of publicity surrounding it, or whether it even results in legislation, it seems that these are all questions that are very much on the table.
Does the Office of the Comptroller of the Currency have all the power it needs to be an effective regulator?
We did testify it would be useful to write regulations and participate in joint rule making, so that when we see particular kinds of practices that are unfair and deceptive, we can go after it, not just with respect to a particular institution but across the board.
You mentioned double-cycle billing. Even if we wanted to change it or prohibit it, we couldn't do that. It's clearly permissible by the law, and the rules about disclosing it are all set by the Federal Reserve. We can urge them to do something, but we'd like a little more input into that process.
http://www.usnews.com/articles/business/your-money/2007/08/29/a-credit-card-crackdown.html
What's the most important advice for bank consumers?
If they have a question or a concern, they need to take it up with their bank, and if they don't get relief, then contact the bank's regulator. That's what this website is all about.
But how do you contact the right regulator?
Because there are so many types of banking institutions in the United States, consumers don't know the difference between a national bank, a state-chartered bank, a credit union, or a savings and loan association or thrift institution. One of the things I've suggested to the other federal bank regulatory agencies and the states is that we try to come up with a single place where consumers can go—that is, one face to the consumers. So that once they look up their bank, it won't make a distinction between a national bank or credit union. It will just find their bank and make it easy for the consumer to route their complaint to the relevant agency. Over time, I'd like to see a common complaint form, a common toll-free number. It's going to take a little time, but I think we can get there.
Why hasn't that happened already?
We have a long-standing fragmentation in our banking industry, among different charters and different regulators. While we are always working on projects in a coordinated way, I can't tell you we always do things in a unified manner. This is an area that kind of calls out to do better. It seems to me that with the Internet, we could use it to have a single, unified place for consumers to go. I think there's been much more focus recently on consumers, and I think the time has come to really push to get this done.
Are people failing to read the fine print, or have bank practices just become so complex it's hard to understand them?
There have been new kinds of products consumers use that have many benefits. But they're also more complicated, and along with different marketing practices, they've led to more consumer complaints. Most consumers would say the credit card as a payment mechanism and as a borrowing mechanism has been a useful thing to them overall. Nobody would want to do without them. But we do get a great number of complaints about credit cards.
Are credit card practices like double-cycle billing and universal default inherently deceptive?
Well, if we thought they were deceptive, we'd take action against them. They are disclosed. The laws that are on the books now really are geared mostly toward disclosure. And the disclosures have not been overhauled for a very long time. The Federal Reserve has come up with a quite extensive new proposal which we believe will be a very important improvement. People have raised the question whether some of these practices ought not to be engaged in even if adequately disclosed. I think Congress is going to look hard and consider that. Given the volume of complaints we've seen and the volume of concerns raised by members of Congress, there is absolutely an appetite to do something in this area. Whether it's in the form of increased disclosures, whether it's in the form of companies themselves changing their behavior because of publicity surrounding it, or whether it even results in legislation, it seems that these are all questions that are very much on the table.
Does the Office of the Comptroller of the Currency have all the power it needs to be an effective regulator?
We did testify it would be useful to write regulations and participate in joint rule making, so that when we see particular kinds of practices that are unfair and deceptive, we can go after it, not just with respect to a particular institution but across the board.
You mentioned double-cycle billing. Even if we wanted to change it or prohibit it, we couldn't do that. It's clearly permissible by the law, and the rules about disclosing it are all set by the Federal Reserve. We can urge them to do something, but we'd like a little more input into that process.
http://www.usnews.com/articles/business/your-money/2007/08/29/a-credit-card-crackdown.html
Credit card companies' top 10 money-grabbers
The fine print is a license to steal, rigged to trap the unwary with huge fees and rates increases. Know your enemy.
By Bankrate.com
Credit cards. It may seem very difficult to get by without them in this day and age, but the fact of the matter is it's becoming more and more expensive to live with them.
That's because credit card companies have managed to stack the deck in their favor, thanks to obliging lawmakers and regulators who have allowed them to gouge consumers for exorbitant fees and unconscionable interest rates.
And you don't have to look hard to find out how tricky they can be.
"Just read the fine print of your credit card agreement," says Ed Mierzwinski, Consumer Program Director of the U.S. Public Interest Research Group in Washington, D.C. "It's a license to steal."
"The industry is out of control; it's getting away with robbery," says Robert Heady, author of the best-selling book "The Complete Idiot's Guide to Managing Your Money."
Robert Manning, author of "Credit Card Nation: The Consequences of America's Addiction to Credit," agrees. "The system is weighted against the consumer," he says.
Top 10 tricks
But knowledge is power, and if you want to avoid getting squeezed, you should be aware of the top 10 money-grabbing tricks credit card companies have up their sleeves:
The universal default penalties. Card issuers regularly check their customers' credit reports for late payments on any of their bills. Any late payment can be used as an excuse to trigger a hike in your credit card's interest rate, even if you have never made a late payment to the card issuer.
A recent study by Consumer Action, a San Francisco-based consumer advocacy group, found that 39% of credit cards had universal default penalties in 2003. In 2004, the figure jumped to 44%.
Bait-and-switch card offers. Direct mail offers generally advertise the issuer's premium card at an eye-popping low interest rate, while the fine print says the company can issue a more costly non-premium card with a higher annual percentage rate if you fail to qualify for the premium card. Just because you apply for a card with a low rate doesn't mean the card that shows up in the mail actually carries that low rate.
Shrinking grace periods. Historically, grace periods -- the time during which your transactions don't accrue interest -- were 30 days. They now average 23 days, and some issuers have whittled the grace period to 20 days. Some cards have no grace period at all.
Two-cycle billing. While most card issuers use the standard one-month method to calculate interest charges, some use a method that calculates interest on two previous months' balances.
Companies compute interest charges on your average daily balance by adding each day's balance and then dividing that total by the number of days in the billing cycle. Some do it on a monthly basis, but others use the average daily balance over the last two billing periods.
If you carry a balance, this usually means that you've lost any grace period on your new purchases. Unless you pay off your balance for two months in a row, the two-cycle method will include the prior cycle's average balance in calculating your finance costs even though you paid off that cycle's balance in full. You don't face that expense with a single-cycle card.
Inactivity charges. Credit card companies don't make money if you don't use your cards. Keeping your card in your wallet could incur a hefty fee, as much as $15 if you haven't swiped your card in six months, but charges may be incurred for shorter intervals.
Late payment fees. A recent study by Vertis, a marketing company that researches consumer credit usage and payment habits, found that 2% of all credit card holders occasionally miss getting their credit card payment in on time. They pay dearly. The national average is $29. MBNA (one of the largest issuers of credit cards), Bank of America and Providian are among the steepest chargers. Their late-paying customers get squeezed $39, according to Consumer Action.
And there's yet another downside to paying late: a higher interest rate. In a 2003 survey, Consumer Action found that just one or two late payments will trigger a higher interest rate.
Over-limit fees. Exceed your credit limit by even one cent and you'll be hit with over-limit fees of $25 to $39. Cruelly, a $39 late fee can then trigger a $39 over-limit fee.
Balance transfer fees. It's the big tease: A rock-bottom introductory rate to transfer your balance, but that tantalizing low rate may come with a steep transaction fee, 3% to 5%, for transferring your balance to their card, which means transferring $1,000 at 4% will cost you $40. "It's really very tricky," says California attorney Howard Strong, author of "Credit Card Secrets." He adds, "They have all these sneaky fees. You need to be extremely cautious."
Mandatory arbitration. "If there's a dispute, you may have given up your right to your day in a court of law," says attorney/author Strong. "If that's the case, your only recourse is mandatory arbitration."
Payment allocation. If you're carrying a balance and use your credit card for purchases and cash advances, or you're paying off a promotional rate and then add charges beyond the promotional period, your card company will first allocate your payments to the charges that will earn it the most money. In most cases, that means it will apply your payment to the balance that has the lower rate, thereby allowing the balance with the higher rate to accumulate and compound interest.
http://moneycentral.msn.com/content/Banking/creditcardsmarts/P98888.asp
By Bankrate.com
Credit cards. It may seem very difficult to get by without them in this day and age, but the fact of the matter is it's becoming more and more expensive to live with them.
That's because credit card companies have managed to stack the deck in their favor, thanks to obliging lawmakers and regulators who have allowed them to gouge consumers for exorbitant fees and unconscionable interest rates.
And you don't have to look hard to find out how tricky they can be.
"Just read the fine print of your credit card agreement," says Ed Mierzwinski, Consumer Program Director of the U.S. Public Interest Research Group in Washington, D.C. "It's a license to steal."
"The industry is out of control; it's getting away with robbery," says Robert Heady, author of the best-selling book "The Complete Idiot's Guide to Managing Your Money."
Robert Manning, author of "Credit Card Nation: The Consequences of America's Addiction to Credit," agrees. "The system is weighted against the consumer," he says.
Top 10 tricks
But knowledge is power, and if you want to avoid getting squeezed, you should be aware of the top 10 money-grabbing tricks credit card companies have up their sleeves:
The universal default penalties. Card issuers regularly check their customers' credit reports for late payments on any of their bills. Any late payment can be used as an excuse to trigger a hike in your credit card's interest rate, even if you have never made a late payment to the card issuer.
A recent study by Consumer Action, a San Francisco-based consumer advocacy group, found that 39% of credit cards had universal default penalties in 2003. In 2004, the figure jumped to 44%.
Bait-and-switch card offers. Direct mail offers generally advertise the issuer's premium card at an eye-popping low interest rate, while the fine print says the company can issue a more costly non-premium card with a higher annual percentage rate if you fail to qualify for the premium card. Just because you apply for a card with a low rate doesn't mean the card that shows up in the mail actually carries that low rate.
Shrinking grace periods. Historically, grace periods -- the time during which your transactions don't accrue interest -- were 30 days. They now average 23 days, and some issuers have whittled the grace period to 20 days. Some cards have no grace period at all.
Two-cycle billing. While most card issuers use the standard one-month method to calculate interest charges, some use a method that calculates interest on two previous months' balances.
Companies compute interest charges on your average daily balance by adding each day's balance and then dividing that total by the number of days in the billing cycle. Some do it on a monthly basis, but others use the average daily balance over the last two billing periods.
If you carry a balance, this usually means that you've lost any grace period on your new purchases. Unless you pay off your balance for two months in a row, the two-cycle method will include the prior cycle's average balance in calculating your finance costs even though you paid off that cycle's balance in full. You don't face that expense with a single-cycle card.
Inactivity charges. Credit card companies don't make money if you don't use your cards. Keeping your card in your wallet could incur a hefty fee, as much as $15 if you haven't swiped your card in six months, but charges may be incurred for shorter intervals.
Late payment fees. A recent study by Vertis, a marketing company that researches consumer credit usage and payment habits, found that 2% of all credit card holders occasionally miss getting their credit card payment in on time. They pay dearly. The national average is $29. MBNA (one of the largest issuers of credit cards), Bank of America and Providian are among the steepest chargers. Their late-paying customers get squeezed $39, according to Consumer Action.
And there's yet another downside to paying late: a higher interest rate. In a 2003 survey, Consumer Action found that just one or two late payments will trigger a higher interest rate.
Over-limit fees. Exceed your credit limit by even one cent and you'll be hit with over-limit fees of $25 to $39. Cruelly, a $39 late fee can then trigger a $39 over-limit fee.
Balance transfer fees. It's the big tease: A rock-bottom introductory rate to transfer your balance, but that tantalizing low rate may come with a steep transaction fee, 3% to 5%, for transferring your balance to their card, which means transferring $1,000 at 4% will cost you $40. "It's really very tricky," says California attorney Howard Strong, author of "Credit Card Secrets." He adds, "They have all these sneaky fees. You need to be extremely cautious."
Mandatory arbitration. "If there's a dispute, you may have given up your right to your day in a court of law," says attorney/author Strong. "If that's the case, your only recourse is mandatory arbitration."
Payment allocation. If you're carrying a balance and use your credit card for purchases and cash advances, or you're paying off a promotional rate and then add charges beyond the promotional period, your card company will first allocate your payments to the charges that will earn it the most money. In most cases, that means it will apply your payment to the balance that has the lower rate, thereby allowing the balance with the higher rate to accumulate and compound interest.
http://moneycentral.msn.com/content/Banking/creditcardsmarts/P98888.asp
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