Credit cards have become almost ubiquitous in modern society, with most people having at least one, and some rather more than that.
Used wisely, they can be a great convenience, making shopping easy and safer without carrying large amounts of cash around, enabling shopping and bill payment online and by telephone, and also giving some financial leeway when money is tight at the end of the month.
Despite all the marketing and hype you see from credit card companies, there's no denying that if credit isn't used carefully then it can land the cardholder in a great deal of trouble.
Debt
Credit card debt is a growing problem, and one of the most expensive kinds of debt there is. If a card has been overused, even making the minimum payments required can get to be a problem, never mind thinking about starting to repay the amount borrowed.
Once things get to that stage, professional help should probably be sought, but by educating yourself about the dangers and risks of credit card use before you get into trouble, credit cards can stop being a danger and become a useful part of life, and even in some cases a profitable one.
Credit Card Advice
Here at 1Stop Credit Cards we offer information and advice on all manner of credit card issues, helping you to choose and use your card as wisely as possible, and to stay out of the trouble caused by unthinking use of credit.
NEW: Credit Unions provide an alternative to credit cards if you're looking for a small amount of finance and don't want to apply for a card, or if your financial history means you are unable to get approved for one.
http://www.1stop-credit-cards.com/
Monday, October 29, 2007
Restaurant Scam Could Hurt Unsuspecting Credit Cardholders
Credit card holders who notice an unexpected rise in their debt may have thieves to blame.
Prosecutors say that waiters in more than three dozen restaurants in New York and other cities took credit card information from unsuspecting customers and gave it to people who have made more than three million dollars in unauthorized charges.
More than a dozen people have been indicted on charges connected with the massive credit card fraud, which apparently took place in New York, Florida, New Hampshire, New Jersey, and Connecticut. Those facing charges are accused of larceny and conspiracy. Apparently, some of the suspects worked in restaurants along side the waiters.
Interestingly enough, the fraud has been going on for quite some time. Investigators say that it dates all the way back to November of 2005. The individuals involved allegedly used the information to create counterfeit credit cards, leading to the fraud.
In light of this news, charge card customers are being asked to be more scrupulous than ever in handling their sensitive financial information. It takes only one unscrupulous individual to wreak havoc on an individual's credit.
Visa reports that restaurants are, in fact, the most common location for credit card information to be stolen from. In fact, 40 percent of all credit card theft takes place at food establishments.
While dishonest waiters may be one culprit, the majority of the thefts happen when hackers co-opt a restaurant's computer system. In this way, thieves can easily steal sensitive credit card information. In response, Visa is working to punish restaurants that don't store their credit card information is a safe manner. However, the National Restaurant Association has denied that food outlets are more vulnerable to credit card theft than other businesses. The group maintains that clothing chains and other companies are just as likely to be targets of credit card theft.
http://www.credit-cards-info.com/news/200705/resteraunt-scam-credit-card-holders.html
Prosecutors say that waiters in more than three dozen restaurants in New York and other cities took credit card information from unsuspecting customers and gave it to people who have made more than three million dollars in unauthorized charges.
More than a dozen people have been indicted on charges connected with the massive credit card fraud, which apparently took place in New York, Florida, New Hampshire, New Jersey, and Connecticut. Those facing charges are accused of larceny and conspiracy. Apparently, some of the suspects worked in restaurants along side the waiters.
Interestingly enough, the fraud has been going on for quite some time. Investigators say that it dates all the way back to November of 2005. The individuals involved allegedly used the information to create counterfeit credit cards, leading to the fraud.
In light of this news, charge card customers are being asked to be more scrupulous than ever in handling their sensitive financial information. It takes only one unscrupulous individual to wreak havoc on an individual's credit.
Visa reports that restaurants are, in fact, the most common location for credit card information to be stolen from. In fact, 40 percent of all credit card theft takes place at food establishments.
While dishonest waiters may be one culprit, the majority of the thefts happen when hackers co-opt a restaurant's computer system. In this way, thieves can easily steal sensitive credit card information. In response, Visa is working to punish restaurants that don't store their credit card information is a safe manner. However, the National Restaurant Association has denied that food outlets are more vulnerable to credit card theft than other businesses. The group maintains that clothing chains and other companies are just as likely to be targets of credit card theft.
http://www.credit-cards-info.com/news/200705/resteraunt-scam-credit-card-holders.html
Leading Credit Card Company Announces Changes in its Practices
Citibank, an industry leader in the credit card business, recently announced that it would be calling a halt to a couple of financial practices which have become quite controversial recently.
To begin with, Citibank has chosen to eliminate the "universal default" clause in its cardholder agreements. This provision allowed Citibank to raise the interest rate on your card if you were late on an account with another bank. The provision could kick in even if you had made payments to your Citibank account on time. The majority of other credit card issuers, however, will continue to have such a provision in their agreements.
Citibank has also decided to scrap a provision allowing the company to change a credit card interest rate for "any time or any reason." This clause was written in response to fluctuations in market conditions, but was perceived by consumer advocates as being unfair to consumers. As a result of such provisions, card holders have routinely found their to-die-for interest rates on their credit cards disappearing when the Federal Reserve made a change in interest rates.
However, Citibank retains the right to raise your interest rate if you are late with your payment, if you exceed your limit, or if the check you pay with is marked "insufficient funds." The changes in cardholder agreements took effective this month.
Industry observers say the changes could represent a public relations coup for Citibank. This is because the bank may now be considered more consumer-oriented, leading to new business. The decision also sets them apart from other financial institutions, casting Citibank in the role of industry risk-taker.
Still, it may be too soon to tell whether such moves will enhance Citibank's profitability in the future. Interest rates are the bread-and-butter of the credit card industry and, if card issuers refrain from raising rates, they could compromise their profit margin in the long run.
http://www.credit-cards-info.com/news/200704/citibank-announce-changes.html
To begin with, Citibank has chosen to eliminate the "universal default" clause in its cardholder agreements. This provision allowed Citibank to raise the interest rate on your card if you were late on an account with another bank. The provision could kick in even if you had made payments to your Citibank account on time. The majority of other credit card issuers, however, will continue to have such a provision in their agreements.
Citibank has also decided to scrap a provision allowing the company to change a credit card interest rate for "any time or any reason." This clause was written in response to fluctuations in market conditions, but was perceived by consumer advocates as being unfair to consumers. As a result of such provisions, card holders have routinely found their to-die-for interest rates on their credit cards disappearing when the Federal Reserve made a change in interest rates.
However, Citibank retains the right to raise your interest rate if you are late with your payment, if you exceed your limit, or if the check you pay with is marked "insufficient funds." The changes in cardholder agreements took effective this month.
Industry observers say the changes could represent a public relations coup for Citibank. This is because the bank may now be considered more consumer-oriented, leading to new business. The decision also sets them apart from other financial institutions, casting Citibank in the role of industry risk-taker.
Still, it may be too soon to tell whether such moves will enhance Citibank's profitability in the future. Interest rates are the bread-and-butter of the credit card industry and, if card issuers refrain from raising rates, they could compromise their profit margin in the long run.
http://www.credit-cards-info.com/news/200704/citibank-announce-changes.html
Wells Fargo Announces New Credit Card Program
The financial powerhouse known as Wells Fargo has unveiled an intriguing new credit card reward program. The program targets Wells Fargo's mortgage customers and the offer's selling point is something called the "Home Rebate Card."
The card is a standard Visa with a twist. Every time the card holder buys an item with this Visa, he or she can earn cash which can be applied to the principal on their mortgage. According to Wells Fargo's news release, the rebate will be payable in $25 increments. In addition, "there is no cap on the amount of rebate customers can earn."
Such a card gives home owners extra incentive to purchase with plastic. But Wells Fargo is certainly not alone when it comes to unique credit card reward programs. For instance, HSBC offers something known as the American DreamCard, which allows cardholders to earn chances in a sweepstakes. The sweepstakes prize can run as much as $75,000. HSBC has been awarding the prizes since 2004 and has earned rave reviews for the program—it was honored with an "Oscard" award, an award which recognizes stand-out reward and rebate programs offered by credit card issuers.
However, industry observers say that consumers need to do a careful cost-benefit analysis before signing up for such cards, whether their intended commitment is for the short-term or the long-term. For instance, many of the reward cards require an annual fee. In addition, the cards may have interest rates that are less attractive than other cards you might be able to obtain.
By doing some comparison shopping, you should be able to determine whether the risks associated with such cards are worth the rewards. As with any other credit card offer, consumers are advised to proceed with caution, using "buyer beware" as their credo. Otherwise, consumers could end up with some unpleasant surprises when receiving monthly statements.
http://www.credit-cards-info.com/news/200704/wells-fargo-announce-new-credit-card.html
The card is a standard Visa with a twist. Every time the card holder buys an item with this Visa, he or she can earn cash which can be applied to the principal on their mortgage. According to Wells Fargo's news release, the rebate will be payable in $25 increments. In addition, "there is no cap on the amount of rebate customers can earn."
Such a card gives home owners extra incentive to purchase with plastic. But Wells Fargo is certainly not alone when it comes to unique credit card reward programs. For instance, HSBC offers something known as the American DreamCard, which allows cardholders to earn chances in a sweepstakes. The sweepstakes prize can run as much as $75,000. HSBC has been awarding the prizes since 2004 and has earned rave reviews for the program—it was honored with an "Oscard" award, an award which recognizes stand-out reward and rebate programs offered by credit card issuers.
However, industry observers say that consumers need to do a careful cost-benefit analysis before signing up for such cards, whether their intended commitment is for the short-term or the long-term. For instance, many of the reward cards require an annual fee. In addition, the cards may have interest rates that are less attractive than other cards you might be able to obtain.
By doing some comparison shopping, you should be able to determine whether the risks associated with such cards are worth the rewards. As with any other credit card offer, consumers are advised to proceed with caution, using "buyer beware" as their credo. Otherwise, consumers could end up with some unpleasant surprises when receiving monthly statements.
http://www.credit-cards-info.com/news/200704/wells-fargo-announce-new-credit-card.html
40 Million Credit Card Numbers Hacked
More than 40 million credit card numbers belonging to U.S. consumers were accessed by a computer hacker and are at risk of being used for fraud, MasterCard International Inc. said yesterday.
In the largest security breach of its kind, MasterCard officials said all credit card brands were affected, including 13.9 million cards bearing the MasterCard label. A spokeswoman for Visa USA Inc. confirmed that 22 million of its card numbers may have been breached, while Discover Financial Services Inc. said it did not yet know if its cards were affected.
MasterCard officials said consumers are not held responsible for unauthorized charges on their cards, and that other sensitive personal data, such as Social Security numbers and birth dates, were not stored in the hacked system. So far, no evidence of fraudulent charges has emerged, they said.
The breach occurred late last year at a processing center in Tucson operated by CardSystems Solutions Inc., one of several companies that handle transfers of payment between the bank of a credit card-using consumer and the bank of the merchant where a purchase was made.
CardSystems' computers were breached by malicious code that allowed access to customer data, said Josh Peirez, a MasterCard senior vice president.
Peirez said MasterCard is certain only that 68,000 of its numbers were taken by the hacker over an unknown amount of time before the breach was discovered. But because the hacker had access to the full database, it is difficult to say how many more numbers may have been taken, he said.
He said the breach was not confirmed until about two weeks ago.
MasterCard said it has begun notifying banks that issue its cards, which in turn are responsible for notifying cardholders.
A teeming black market for stolen credit card numbers allows thieves to make quick purchases, pinning the loss on merchants, which do not get paid when the charge is discovered to be fraudulent. Identity theft experts said credit card numbers, even those that are canceled, have value because they can be used to help establish the credentials of a thief seeking to pose as a consumer to obtain other sensitive personal data.
Officials at MasterCard and Visa accused CardSystems of not meeting agreed-upon computer security standards. Peirez said CardSystems is being given a short time to make corrections.
"We have requirements," Peirez said. "In this case, it does not seem those standards were being followed."
Visa spokeswoman Rhonda Bentz said CardSystems did not comply with Visa's security rules when the breach occurred, though she would not elaborate on what went wrong.
http://www.washingtonpost.com/wp-dyn/content/article/2005/06/17/AR2005061701031.html
In the largest security breach of its kind, MasterCard officials said all credit card brands were affected, including 13.9 million cards bearing the MasterCard label. A spokeswoman for Visa USA Inc. confirmed that 22 million of its card numbers may have been breached, while Discover Financial Services Inc. said it did not yet know if its cards were affected.
MasterCard officials said consumers are not held responsible for unauthorized charges on their cards, and that other sensitive personal data, such as Social Security numbers and birth dates, were not stored in the hacked system. So far, no evidence of fraudulent charges has emerged, they said.
The breach occurred late last year at a processing center in Tucson operated by CardSystems Solutions Inc., one of several companies that handle transfers of payment between the bank of a credit card-using consumer and the bank of the merchant where a purchase was made.
CardSystems' computers were breached by malicious code that allowed access to customer data, said Josh Peirez, a MasterCard senior vice president.
Peirez said MasterCard is certain only that 68,000 of its numbers were taken by the hacker over an unknown amount of time before the breach was discovered. But because the hacker had access to the full database, it is difficult to say how many more numbers may have been taken, he said.
He said the breach was not confirmed until about two weeks ago.
MasterCard said it has begun notifying banks that issue its cards, which in turn are responsible for notifying cardholders.
A teeming black market for stolen credit card numbers allows thieves to make quick purchases, pinning the loss on merchants, which do not get paid when the charge is discovered to be fraudulent. Identity theft experts said credit card numbers, even those that are canceled, have value because they can be used to help establish the credentials of a thief seeking to pose as a consumer to obtain other sensitive personal data.
Officials at MasterCard and Visa accused CardSystems of not meeting agreed-upon computer security standards. Peirez said CardSystems is being given a short time to make corrections.
"We have requirements," Peirez said. "In this case, it does not seem those standards were being followed."
Visa spokeswoman Rhonda Bentz said CardSystems did not comply with Visa's security rules when the breach occurred, though she would not elaborate on what went wrong.
http://www.washingtonpost.com/wp-dyn/content/article/2005/06/17/AR2005061701031.html
Credit Cards and Credit History
Responsible credit card use can help you get out of a bad-credit situation. If you’ve had some problems making payments in the past, or know your credit isn’t perfect- then you know exactly how it effects you. When you apply for credit, you get turned down. Even a new employer can use your credit score as a reason not to hire you! Your automobile insurance rates can increase if you have poor credit. Getting an apartment will be as impossible as a mortgage, since most landlords rely on your credit score now to determine whether or not you are a good tenant.
So- if you have already damaged your credit or it’s just not as good as you would like, you can use your credit cards to start improving your credit score. If you already have a credit card, start with that one, but if you don’t have any credit cards at this time- even with poor credit you will be able to qualify for several of the credit cards for bad credit options available. These cards will have higher interest rates and less perks than cards designed for people with good credit, but they will still work to help you start repairing your credit.
If you are still having trouble getting approved for credit cards, you can try getting a secured credit card or asking a family member to co-sign your application.
First, order a copy of your free credit report from each of the three credit bureaus and make sure there are no mistakes that are affecting your score. Take appropriate steps to correct any mistakes that may be on the reports.
Next, use your credit card as a credit rebuilding tool. Each month, make one or two purchases with your credit card and immediately send in the payment. (Some cards offer a grace period, and if you make your payments within the grace period you won’t even have to pay interest!)
Each time you send a payment on time, it is reported to your credit report. Several months of doing this will slowly increase your credit score. Also, if you hadn’t had any available credit listed on your credit report, just having access to the credit card limit can also help increase your credit score. Just be careful that you don’t max the card out because then you’ll lower your score by using a larger percentage of available credit.
http://blog.creditcardflyers.com/
So- if you have already damaged your credit or it’s just not as good as you would like, you can use your credit cards to start improving your credit score. If you already have a credit card, start with that one, but if you don’t have any credit cards at this time- even with poor credit you will be able to qualify for several of the credit cards for bad credit options available. These cards will have higher interest rates and less perks than cards designed for people with good credit, but they will still work to help you start repairing your credit.
If you are still having trouble getting approved for credit cards, you can try getting a secured credit card or asking a family member to co-sign your application.
First, order a copy of your free credit report from each of the three credit bureaus and make sure there are no mistakes that are affecting your score. Take appropriate steps to correct any mistakes that may be on the reports.
Next, use your credit card as a credit rebuilding tool. Each month, make one or two purchases with your credit card and immediately send in the payment. (Some cards offer a grace period, and if you make your payments within the grace period you won’t even have to pay interest!)
Each time you send a payment on time, it is reported to your credit report. Several months of doing this will slowly increase your credit score. Also, if you hadn’t had any available credit listed on your credit report, just having access to the credit card limit can also help increase your credit score. Just be careful that you don’t max the card out because then you’ll lower your score by using a larger percentage of available credit.
http://blog.creditcardflyers.com/
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