Free credit report access simplified

2010-03-09T20:48:36Z

Beginning April 1 consumer access to a free, federally mandated annual credit report from the three major credit bureaus will be simplified. Consumers have been mandated to have free access to their credit report once each year from each of the three credit bureaus since 2003. But it can be difficult to navigate the sites and determine what information is free and what information comes with a price.

New laws will require that all advertising for paid-for access to credit scores be moved to the end of the free credit reports to help reduce confusion. Hyperlinks within the sites will also be moved or taken down. Commercial credit companies that try to encourage customers to pay for their credit score must now include a specific disclosure on every page that informs customers that they are legally entitled to a free credit report and where to access it.

New credit-debit laws now in affect

2010-03-09T20:45:30Z

The first reform of the Credit Card Act of 2009 is now in affect with more laws to follow in August. The new laws are meant to protect consumers from unexpected, and perhaps unethical, fees and changes in loan terms.

Some of the new changes include limits on fees and regulations on interest charges. Now interest rates cannot be raised within the first year of an account and customers must be more than 60 days late on payments before interest rates can be raised. If the customer makes on time payments for 6 consecutive months the interest rate will be lowered to the initial rate. Accounts with multiple interest rates must have payments applied to the balance with the highest interest rate first.

Credit and debit card issuers may no longer impose a processing fee for online or phone payments. Issuers also may not charge fees for overdraft purchases made without prior customer authorization.

Bank of America offers $75 bonus

2010-03-09T20:42:24Z

Bank of America is offering new customers a $75 bonus for opening new My Access Checking Accounts. Customers must deposit at least $125 into the account within 30 days of opening the account to receive the bonus. The bonus will be received into the account within 90 days of opening the account.

My Access Checking comes with no monthly maintenance fee, no minimum account balance and no direct deposit requirement. Online banking customers have access to free bill pay and a free Bank of America Visa Check Card. New customers need to use the code CH75OL1 when opening the account.

Visa, MasterCard suspend credit card casino transactions

2010-03-04T21:16:01Z

Visa and MasterCard have both suspended the use of credit card transactions that fund online gambling accounts. The move comes in advance of the Unlawful Internet Gambling Enforcement Act that will require credit card issuers and processors to suspend the accounts of merchants and customers involved in online gambling. The Act is set to become law in June.

Many lawmakers have voiced concerns over the new rules since the law will prevent state lottery and casino boards from authorizing legal online gambling programs.

Veteran online gamblers have already begun to create alternative methods to fund online gambling accounts including retail cashiers and third-party processors.

MasterCard wins award for Best Overall Corporate University

2010-03-04T21:12:58Z

MasterCard won six awards, including Best Overall Corporate University, at the 11th annual Corporate University Xchange Awards for Excellence and Innovation. The awards honor corporate and government learning organizations that create programs that result in measurable improvements in employee and business performance.

“These corporate learning organizations are key to the realization of business strategy,” Sue Todd, president of Corporate University said. “Winning these awards is an added indicator of their success.”

Prepaid cards bring gains to Visa, MasterCard

2010-03-03T20:11:13Z

Analysis of prepaid card industry has found that the rising popularity of prepaid cards are having a major impact on the profits of Visa and MasterCard. The prepaid market is estimated to grow 22% each year over the next three years. That translates from $525 billion loaded onto prepaid cards in 2010 from $291 billion on prepaid cards in 2009.

“We believe Visa and MasterCard are the prime beneficiaries of the rapid growth in prepaid use,” David Long, analyst at William Blair& Co said. “Prepaid growth is contributing to the increase in card use over paper forms of payment.”

Many factors have contributed to the sharp growth in prepaid card use. Prepaid cards do not offer money on credit so consumers with a poor credit card often use branded prepaid cards to make purchases such as rental cars and hotel rooms as well as internet transactions. Parents often use prepaid cards to give funds to children since a consumer cannot spend more money than is on the card at any time but funds can be easily added to a reloadable prepaid card.

MasterCard chief marketing officer to speak at the Global Sports Industry Summit

2010-03-03T20:07:30Z

Larry Flanagan, chief marketing officer and executive vice president, of MasterCard Worldwide, has been announced as a speaker at the Global Sports Industry Summit in Paris, France from September 28 – October 1. The purpose of the summit is to encourage open and candid debate and discussion about the issues facing the sports industry.

The summit brings together global leaders of the international sporting industry. Summit members will focus on the role that the global economic crisis has played in the sporting industry, tensions between tradition and innovation in sports, and the expansion of the sporting industry.

MasterCard partnerships with UEFA, Champions League, Copa Libertadores, Major League Baseball, the PGA Tour, PGA of America, National Hockey League and Vivendi Universal earns them a seat at the exclusive summit.

Discover offers support for credit card questions

2010-03-03T20:04:15Z

Discover has launched Straight Talk, a series of online support articles and videos to help consumers understand credit card issues. The site offers information on credit card loans, interest rates, credit limits, fees and changes with the new credit card legislation.

“These online resources will help them better understand credit, while empowering them to achieve brighter financial futures,” Carlos Minetti, executive vice president, cardmember services and consumer banking for Discover said.

MasterCard and the Bill & Melinda Gates Foundation to provide access to savings and loans in rural Africa

2010-03-01T20:28:06Z

The Bill & Melinda Gates Foundation and The MasterCard Foundation are founding a $16 million program through Opportunity International to provide access to savings accounts and agricultural loans in rural sub-Saharan Africa.

“Opportunity International is grateful to the MasterCard Foundation and the Bill & Melinda Gate Foundation for their support which will help developing agriculturally-based communities transition to thriving and diversified economies,” Kadita Tshibaka, CEO of Opportunity International said. “We hope this tremendous partnership will encourage other individuals, foundations, and corporations to join this effort. Opportunity is committed to raising an additional $15 to $20 million over the next three years to increase food security, alleviate poverty, and enable long-term self-sufficiency for the people of Africa.”

Opportunity International will use the grant to provide 1.4 million people with access to financial services. Opportunity will serve agricultural and non-agricultural borrowers using a wide range of services that include satellite branches, kiosks, mobile vans, ATM’s and point-of-sale devices. The program will begin in Malawi and Ghana to expand to more countries over the next five years.

“The MasterCard Foundation believes that Opportunity International’s innovations in microfinance will prove to be key contributions to helping Africa’s poor and rural families become self-sustaining,” Reeta Roy, president and CEO of The MasterCard Foundation said.”

MasterCard to sponsor American Payroll Association’s Money Matters National Education Day

2010-03-01T20:23:52Z

MasterCard has announced that they will be the inaugural sponsor of the American Payroll Association’s Money Matters National Education Day on Sept. 9, 2010 during National Payroll Week. The Money Matters National Education Day is a day devoted to helping those entering the workforce to understand the payroll withholding system and their paychecks. MasterCard will be offering information about prepaid cards and the benefits that they offer.

American Payroll Association will visit high schools and youth organizations to teach lesson plans developed in conjunction with the National Council on Economic Education. The lesson will teach students about the many elements of a paycheck, estimated taxes and how to calculate taxes. In 2009 more than 56,000 students participated in the program.

“At MasterCard, we believe a solid understanding of the payroll system is essential to achieving financial literacy and success,” Laura Kelly, senior vice president, Global Prepaid of MasterCard worldwide said. “That’s why we’re proud to sponsor Money Matters National Education Day, which helps today’s young people, who may be receiving their first paychecks, better understand where their paychecks come from and where their money goes.”

MasterCard will also sponsor four scholarships for junior and senior high school students for continued education. They will offer one Grand Prize of $5,000 and three scholarships of $1,000. Students can qualify for the scholarships by demonstrating an understanding of the MasterCard Money Matters National Education Day curriculum. Students will be chosen randomly from a pool of eligible participants.

Plastic Cash International, MasterCard offer MYPLASH prepaid card

2010-03-01T20:17:20Z

Plastic Cash International and MasterCard will now be offering MYPLASH open-loop prepaid gift cards and reloadable prepaid gift cards. The new cards will be available in summer 2010. MYPLASH is the world’s largest prepaid product for teens.

“We are extremely excited to be working with MasterCard again, where our MYPLASH brand got its start,” Brian Newberry, CEO of Plastic Cash International said. “As the teen prepaid and gift card market continues to experience tremendous growth, we felt it was the right time for us to return to MasterCard to collaborate and share expertise to get this much needed financial tool into the market and directly into the hands of teens and young adults.”

MasterCard and Plastic Cash International will use the collaboration to develop products to help teens create budgets, save and spend while helping parents to support financial education.

“As a global leader in prepaid cards, MasterCard has aggressively focused its resources and expertise to develop innovative products and work with world-class partners that help create a competitive advantage,” Laura Kelly, senior vice president, Global Prepaid of MasterCard Worldwide said. “Working with Plastic Cash International on MYPLASH prepaid cards enables us to meet the needs of today’s teen market by appealing to their individual styles, personalities and preferences, while also promoting financial literacy and responsibility for young consumers and their parents.”

Discover Card earns highest rank in customer loyalty for 13th consecutive year

2010-02-24T20:21:36Z

Discover has earned its 13th consecutive 1st place ranking in the 2010 Brand Keys Customer Loyalty Index. The Brand Keys Customer Loyalty Index examines customer satisfaction and loyalty with 518 brands in 71 different consumer categories.

“Discover has evolved from a credit card business to a direct banking and payment services company by maintaining its focus on servicing our customers,” Carlos Minetti, executive vice president of cardmember services and consumer banking said. “A loyal Discover cardmember knows they will get the same great service and rewards from us regardless of whether they are making a purchase, opening an online savings account or investing in a certificate of deposit.”

“The past year has been a very trying time for financial service companies,” Robert Passikoff, founder and president of Brand Keys said. “The Customer Loyalty Award is proof that the Discover Financial Services’ brand and the brand management team are able to best meet or exceed the very high expectations consumers hold in this category. This is the 13th consecutive year Discover has been able to provide truly resonating financial products and services to their customers, and their loyalty is the ultimate accolade.”

American Express Premier Rewards Gold Card offers $100 bonus

2010-02-24T20:17:01Z

American Express is offering a $100 cash bonus after the first purchase with new Premier Rewards Gold Charge Card. New card members only have to make a first qualifying purchase on the card for any amount to receive 10,000 bonus membership reward points. Those points can then be redeemed for $100 in gift cards. New card-members will also have the $175 annual fee waived for the first year of membership.

Card-members will earn 3 points for every $1 spent on air travel, 2 points for every $1 spent on gas and groceries and an additional point for every $1 on other purchases. Gold Card-members have access to travel packages and upgrades as well as preferred seating, pre-sale tickets and other benefits to Gold Card events.

Accounts may have multiple cards to earn points and rewards even more quickly.

Hyatt and Chase offer Visa with Hyatt Gold Passport Rewards

2010-02-24T20:12:48Z

Hyatt and Chase have announced a multi-year partnership to create a Visa credit card to offer consumers reward points through Hyatt’s global loyalty program, Hyatt Gold Passport. Hyatt Gold Passport members earn five points for every eligible dollar spent at Hyatt locations worldwide. Points can be redeemed for rewards including free nights at Hyatt properties as well as a late check out upon request. Points can also be converted to miles on partnering airlines.

“We chose to align with Chase and Visa because they share our commitment to quality and customer service,” John Wallis, global head of marketing and brand strategy for Hyatt said. “This alliance will enhance our Hyatt Gold Passport program and strengthen our relationship with our members by creating more opportunities to earn points to redeem for travel.”

Creating a Hyatt-branded card delivers on Chase’s strategy of associating with the world’s best brands,” Valerie Greer, senior vice president of Chase card services said. “Hyatt offers sophisticated travelers unique destinations, perfectly complementing our strong property portfolio.”

Capital One to refund $775,000

2010-02-21T19:33:34Z

Capital One has agreed to refund annual membership fees, nearly $775,000, to customers who had the fees assessed after canceling accounts and having no outstanding balances. The fees were assessed between 2004 and 2006. Customers who paid off accounts within 90 days of closing the account will also be refunded.

“The problem was the result of a systems issue that we fixed in 2006,” Tatiana Stead, Capital One spokeswoman said. “At the time, we refunded membership fees for many customers who contacted us directly, but, in retrospect, we should have done so for an additional 3,400 customers as well. We sincerely regret this error.”

Carroll school district looking to launch affinity credit card

2010-02-17T20:09:12Z

Carroll school district, located in Southlake, Texas, is hoping to launch a Dragon affinity credit card to support the school district. Administrators have taken a proposal for an exclusive five-year contract with Capital One to school trustees. The contract would put a percentage of all purchases into the general fund for the 7,800 student school district. The general fund pays for day-to-day expenses such as utilities.

“Every time they use it, they’re going to be giving back to the education of their children,” Julie Thannum, Carroll schools spokeswoman said. “We don’t have to do anything. There’s no overhead.”

Carroll school district would receive $50 for each new customer to sign up for the card and make a first purchase. Purchases at select merchants would reward the school with up to 10% rewards back on the purchase amount. Gas and grocery purchases would get a 2% reward and 1% on all other purchases.

Credit Card spending in Vancouver gets big boost from Olympics

2010-02-17T20:05:03Z

The 2010 winter Olympics has brought Vancouver a 46% boost over credit card sales from the same time last year. Visitors to Vancouver spent $5.2 million on Visa credit cards on the opening day of the Olympic games.

Hosting the Olympic games comes with few guarantees of financial returns. Past host city Montreal lost an estimated $1 billion but Los Angeles made a surplus of $352 million. The boost to Vancouver is expected to give the local economy a boost although its hard to estimate if the effects will be seen over the long term.

The biggest spenders are from the United States, followed by China, the U.K, South Korea, Australia and Hong Kong. Visitors from those countries accounted for more than 70% of the $5.2 million spent on Visa cards on opening day.

Visa no longer requires signature on most transactions under $25

2010-02-16T20:11:51Z

Visa has announced that it will expand its No Signature Required program to include 98% of retailers on purchases of $25 or less. Some retailers that will now qualify for the program include department stores, hair salons, electronic stores and sporting goods stores, among others.

“We are consistently looking at offering merchants payment options or combinations of options that help them meet their business objectives, best fit their payment environment, and meet customer needs,” Erika White, Visa company spokeswoman said.

Industry studies have found that consumers are not at an increased risk of fraud despite not needing signature verification. While thieves might have an easier time stealing small purchases, most thieves use stolen credit cards to make purchases that they can quickly resale for cash.

Since the No Signature Required program was introduced in 2003 “we’ve seen no bump in fraud and that’s why we are comfortable expanding the program to the benefit of cardholders and merchants,” White said.

Starbucks to discontinue Duetto Visa Card

2010-02-16T20:08:28Z

Starbucks has announced that they have decided to not renew the Duetto Visa Card that began in 2003 and is a partnership with Chase Bank. Consumers will not lose any stored reward value on the credit card. Earned rewards will be sent to consumers in the form of a Starbucks gift card.

Starbucks is offering a new Starbucks card that will offer all Starbucks users a free drink after 15 purchases. A purchase includes all drinks made on the same transaction rather than each individual drink. A coupon will be mailed to customers after they have made 15 purchases. The new plan has many customers unimpressed.

“After that [the expiration of the Duetto] I expect that the independent stores will get the majority of my business,” Geoff Saunders, a Starbucks Duetto Visa Cardholder said. “The independents, as you know, all offer a 10-drink punch card, but Starbucks will offer a free drink after 15 visits. In this economy, that doesn’t play well.

Bancorp Bank and InsurCard offer prepaid solution to North American Risk Service

2010-02-12T20:22:38Z

Bancorp Bank Payment Solutions Group of Bancorp Bank has joined with InsurCard to offer consumers an instant issue prepaid card to North American Risk Services for their property and workers compensation claims. The InsurCard is meant to take the place of standard issue checks to offer instant benefits to injured workers and displaced homeowners.

“We are thrilled to partner with NARS to assist in providing alternative payment options for its clients,” J. Robert Mendte, president of InsurCard, said. “The InsurCard offers great benefits for an injured worker or a displaced homeowner because they can begin using the funds immediately anywhere that Visa debit cards are accepted, thus avoiding the check cashing hassle.”

“We’re always looking for ways to provide better service to our clients,” Robert Ruryk, president and COO of North American Risk Services said. “Efficient payment processing and a timely delivery method can help that objective. By partnering with InsurCard, we have a solution that can assist workers compensation claimants, customers in a catastrophe situation, and even third parties in our transportation programs.”

Bank of America has earned 1 million “Clarity Commitments”

2010-02-12T20:18:08Z

Bank of America just announced they reached a milestone on their journey to becoming a more user-friendly company. The company has reached over 1 million “Clarity Commitments”, a new one-page summary mailed out to potential homebuyers. Bank of America’s Clarity Commitment is an industry leading campaign in company branding and enhancement of customer service.

“Customers told us they wanted transparency and no surprises in the lending process,” Barbara Desoer, president of Bank of America Home Loans, said. “The Clarity Commitment answers that need, helping potential homeowners clearly understand the key terms and conditions of their mortgage agreement prior to closing the loan.”

Bank of America began the program in April 2009 and a recent survey showed that over 80% of consumers think it is important to have summaries to provide basic information on loan terms such as interest rates, monthly payments and closing costs.

U.S. Bank expanding Brookfield, Wisconsin credit card unit

2010-02-12T20:15:01Z

U.S. Bank announced the expansion of its Brookfield, Wisc. Credit card issuing technology unit. The bank will be hiring 60 new employees with the expansion. The bank’s technology and operations service group currently has about 300 employees. The move will increase U.S. Bank’s employment numbers to 3,331 in southeastern Wisconsin and 4,804 in the whole state.

Bill Bertha, president of U.S. Bank in Wisconsin said that Brookfield’s selection “says a lot about the quality of our work force, the strong work ethic and the importance of the Milwaukee market for U.S. Bank going forward.”

MasterCard Foundation and Equity Group Foundation launch scholarship program

2010-02-10T20:11:18Z

The MasterCard Foundation and the Equity Group Foundation launched a new scholarship program to provide $4.6 million in educational support to 676 Kenyan students over the next five years.

“All young people deserve an opportunity to reach their full potential”, Reeta Roy, president and CEO of the MasterCard Foundation said. “The MasterCard Foundation is proud to partner with EGF to enable students in Kenya to complete secondary school. EGF has the national scale, reach, and financial systems to ensure this program benefits young people.”

The new scholarship program will provide comprehensive scholarships to 332 academically gifted students who are financially disadvantaged. The scholarship will enable those students to complete secondary school in Kenya. The scholarship will also provide leadership development, career guidance, and mentoring to another 344 secondary students. EGF will select an equal number of male and female primary school students to participate in the scholarship program.

“The collaboration with the MasterCard Foundation affirms our commitment to transforming the socioeconomic status of talented young people and developing the next generation of leaders in Kenya”, Dr. James Mwangi, EGF chairman said. “Our hope is that other partners will look to this program as a model for transforming the lives of disadvantaged children and join us.”

Credit Card fraud increasing at hotels

2010-02-10T20:06:39Z

Credit card hackers steal credit data from the hotel industry more than any other industry. The study, conducted by Trustwave’s SpiderLabs an information security company, found that out of the 218 cases of data-breach investigations from 24 different countries 38% of attacks occurred on hotels. Further, it took an average of 156 days for the hotel to realize that security had been breached.

Credit card information is constantly under fire because it is the fastest way for thieves to grab real cash, according to Nicholas Percoco, senior vice president of Trustwaves’s SpiderLabs said.

The study also found that the thieves in the data-breach investigations targeted credit card information in 98% of all data breaches.

Financial Service companies, retail stores, and the food and beverage industries were the three next highest targeted industries at 19%, 14.2% and 13% respectively.

Subaru Rewards Card from Chase offers rewards for automotive needs

2010-02-09T19:50:08Z

The Subaru Platinum MasterCard from Chase offers rewards in Subaru dollars. Cardholders will earn 3% in Subaru Reward Dollars with a maximum of $500 per year. The Subaru Reward dollars can be redeemed at any authorized Subaru dealership in the continental United States. New account holders will receive an additional 25 Subaru Reward dollars after the first qualifying purchase is made on the account.

Subaru Reward dollars can be redeemed on all Subaru automotive purchases included Subaru parts, Subaru service, the lease or purchase of new Subaru vehicles and the purchase of a Subaru Certified pre-owned Subaru. Accounts come with free additional cards with all rewards redeemable to the account.

For each 100 Subaru Reward dollars earned a coupon is automatically attached to that month’s billing statement. Reward accounts are also available online.

Marriott Rewards introduces higher rewards

2010-02-06T16:51:53Z

The Marriott Rewards Visa Signature Card from Chase has introduced enhanced rewards for the frequent-guest program. Program members will now earn an extra Elite night credit for every $3000 in purchases on the card as well as 15,000 bonus points on 7-night redemption stays at many Marriott hotels.

Reward members will earn 3 reward points on every dollar spent at the nearly 3,000 Marriott locations worldwide and an additional reward point for every dollar spent on other purchases. Reward members will receive 10 nights credit towards Elite status every year towards earning increased Elite status rewards. Gold Elite status after stays totaling 50 nights and Platinum Elite status after stays totaling 75 nights.

Consumers more likely to pay credit card than mortgage

2010-02-06T16:43:38Z

The economic downturn has forced many consumers to make difficult financial choices, one of them being the choice to make a credit card payment or a mortgage payment. Historically consumers would protect their mortgage while letting a credit card fall delinquent if forced to make the choice, but a new trend shows that consumers are choosing to pay off credit debt at an increasing rate.

A study released by Chicago-based credit bureau Trans Union found that 6.6% of consumers were delinquent on mortgages but current on credit card payments in the third quarter of 2009 but that only 3.6% of consumers were delinquent on credit card payments while remaining current on mortgage payments.

Sean Reardon, author of the study, attributed this shift to a “perfect storm” of lowering housing prices and rising unemployment. Consumers know that they may be losing equity on a mortgage but they need to stay current on credit cards since they may be living on them for day-to-day expenses.

RBC Royal Bank to offer Coca-Cola bottle-shaped prepaid Visa cards for Olympic athletes, coaches

2010-02-03T04:46:29Z

As the 2010 Vancouver Winter Olympics approach companies are searching for new ways to connect to the Olympic spirit. RBC Royal Bank is now offering a Visa prepaid card shaped like the iconic Coca-Cola bottle and equipped for contactless payments for Olympic athletes, coaches and team officials. The new card will be the first contactless Visa card not linked to a credit card account in Canada.

“We know that athletes have enough on their minds during the Games,” Anne Koski, RBS’s head of credit payment innovation said. “With the Visa Prepaid Card from RBC, they will have easy and convenient access to beverages whenever they need a drink.”

5 steps to boost credit scores

2010-02-03T04:36:09Z

Many New Year’s resolutions were made to reduce debt and improve financial stability, but now people have to figure out how to make the resolutions happen. An improved credit score is possible in 5 steps that many consumers forget to take.

One of the most important thing customers need to do before making changes is to evaluate their credit score. Consumers are legally entitled to three credit reports each year, one from each of the three major credit bureaus. Consumers should check their credit report every four months to check for any errors or surprises.

The next step is to dispute any negative credit reports that aren’t accurate. Some common mistakes include collection agency misreports when consumers have similar names. If you do not recognize an account, call to find out details and if necessary, file a dispute.

A third step is to utilize credit accounts wisely. Credit bureaus take into account the amount of credit utilized compared to the amount of credit available. If one card carries a very high balance compared to the available balance a credit score might be hurt. Check balance transfer fees first, but then balance the amount of credit so that each account carries a low balance that can be paid off quickly.

Using credit cards for regular bill payments is a fourth way to increase a credit score. Credit card companies report 2 years of activity and an inactive card can actually hurt a credit score. Simply charging one regular bill to an account and paying the balance off in full each month can dramatically increase a credit score.

The fifth step towards raising a credit score is to contact credit card issuers to ask for adjustments or help if needed. Missed payments hurt credit scores but some people are unable to make minimum payments. The sooner the credit company is contacted the sooner a plan can be set in place to make payments towards lowering the debt. Most credit companies will be flexible with minimum payments so that the consumers can stay current on accounts.

D. C. parking meters now accept credit cards

2010-02-03T04:24:44Z

In some Washington D.C. areas parking meters will now accept credit card payments instead of coins. The new meters will be found in five different locations with short term parking spaces with high turnover rates. The meters will also be able to accept change.

When a credit card is swiped the meter assumes a 45-minute pass for $1.50. Those who are making a brief stop can use small buttons on the face of the meter to add and subtract time as necessary.

Credit Card companies offer reward points trade for donations to Haiti

2010-02-01T20:45:07Z

American Express, Bank of America, Capital One, Chase and Citibank have all announced plans to allow cardholders to redeem reward points for cash donations to various relief organizations in Haiti. This is in addition to many banks waiving fees for donations made using a credit card to make donations.

American Express cardholders can make donations in increments of 1,000, 5,000, 10,000, 50,000, and 100,000 reward points. Each 1,000 reward points equals a $10 donation to a relief organization.

Bank of America cardholders can sign in to their account, select the credit card account rewards tab and select an organization to make a donation to. Cardholders can also make a donation by phone.

Capital One cardholders can use the online “No Hassle Giving Site” to make a donation to one of six different Haitian relief organizations. Capital One covers all transaction fees on charitable donations.

Chase Freedom, Sapphire and Ink cardholders can donate Ultimate Rewards points to the American Red Cross Haiti Relief and Development Fund. Donations begin at $25 for 2,500 points and donations can increase in $25 increments with no limit up to their total point balance.

CitiBank cardholders can go online to ThankYou.com to redeem reward points to the American Red Cross International Response Fund option, found under the charitable gifts tab to make a donation.

Consumers spend more than planned during holiday

2010-02-01T20:39:06Z

Even though many consumers were feeling the credit crunch, many still used credit cards more than they had planned to during the holiday season a survey from Consumer Reports found. The survey found that 47% of shoppers used credit cards for holiday purchases and that consumers using credit cards, on average, spent nearly $100 more than consumers paying with cash.

“Looking back on this past holiday shopping season it was clear that some Americans were willing to open up their wallets,” Ed Farrell, Consumer Reports National Research Center said. “Many shoppers drove up their holiday shopping budget at the last minute, which could have been a result of sales and discounts retailers were offering.”

A poll in early December found that, on average, consumers planned to spend $636 on holiday purchases. The later results after the holidays found that the average consumer paying with credit spent $896 and that 23% of shoppers had charged more than $1000.

A sign of the changing economic times however is that over one forth of shoppers who used credit said that they have already paid off their holiday balances, 40% said the balance would be paid off by the end of January and 9% expected to pay off all holiday purchases by June.

Honolulu Hawaii to accept credit cards for property taxes

2010-01-28T04:36:36Z

The city of Honolulu Hawaii has just announced that they will begin accepting credit cards and electronic checks for property tax payments. Payments will be accepted online or by telephone.

“This is an added convenience for taxpayers and it makes good sense,” Mayor Mufi Hannemann said. “Many taxpayers have requested this service, and we’re pleased to be able to provide it.”

The payment program will be run by Official Payment Corp.. Fees of 2.49% of the credit card payment, $3.30 for electronic check payments of $10,000 or less and $15.30 for electronic check payments of more than $10,000.

Payments can be made 24 hours a day, seven days a week by calling 877-309-9117 or online http://www.honolulu.gov/budget/hnlpay.htm.

New Chicago Cubs Extra Bases Bank of America Credit Card

2010-01-27T03:24:18Z

A new card for Chicago Cubs fans has been released by Bank of America. The Major League Baseball Extra Bases Credit card now features the Cubs logo and offers rewards for all fans. Reward points are redeemable for MLB autographed memorabilia, tickets, fan experiences, cash rewards and travel.

Cardholders can also earn a $50 MLB Shop gift card with their first qualifying purchase to buy Cubs wear. Rewards can be earned with as few as 2,500 points and points never expire. Cardholders will earn one point for every dollar spent in net purchases. The card comes with no annual fee, a 0% introductory annual APR and low variable APRs.

MasterCard and US Airways offer travel promotion worth $300

2010-01-21T20:20:20Z

MasterCard and US Airways are partnering to offer travel rewards to vacationers booking travel on US Airways and paying with a MasterCard. The promotion will save travelers up to $300 on vacations to the Caribbean, Hawaii and Mexico. Travelers should use the promotional code SALE100 when booking travel.

Eligible travelers will earn up to $100 when booking their travel, $100 at their destination and an additional $100 MasterCard gift card upon completion of the vacation. Eligible vacations must be books between Jan. 4 ’10 and Feb. 1 ’10 for travel occurring between Jan. 4 ’10 and June 30 ’10.

Travelers on domestic flights can save $50 on domestic vacations, excluding Hawaii, on four-night stays by using the Promotional Code SALE50 when booking their travel.

American Express OPEN and Lowe’s launch small business credit card

2010-01-21T20:16:56Z

American Express and Lowe’s have partnered to launch Lowe’s Business Rewards Card, a credit card for small business owners, in March. The Lowe’s Business Rewards Card will offer reward points on nearly all card purchases to be redeemed for Lowe’s and American Express Gift cards.

“Every month, we provide billion of dollars in working capital to small business owners who use our pay-in-full charge cards and our credit cards,” Richard Flynn, senior vice president for American Express OPEN said. “Through the Lowe’s Business Rewards Card program, we will help business owners manage their spending and provide credit that they can use to run and grow their companies while earning rewards they can reinvest in their business.”

Card members will earn triple reward points on every eligible dollar spent on restaurant purchases, office supplies and wireless bills. Double reward points are given for every eligible dollar spent at Lowe’s stores and single points are rewarded for all other eligible purchases. There is no maximum amount of rewards that a card member can earn and there is no expiration date on earned points.

“The Lowe’s Business Rewards Card is the latest way our company is adding value for our commercial customers through a unique blend of benefits and rewards,” Larry D. Stone, president and COO of Lowe’s said. “Lowe’s has always been committed to providing the best customer experience and this new product offers convenience and rewards at a time when business owners need it most.”

Bank of America, Upromise World MasterCard offers $25 college savings

2010-01-19T20:09:19Z

The Bank of America Upromise MasterCard offers $25 in college savings after the first qualified purchase with the card, 2% additional college savings on gas purchases at Exxon and Mobile, and 1% savings on all other purchases. Cardholders can make additional 10% savings on purchases at more than 600 online merchants, travel sites and more than 22,000 grocery and drug stores.

Upromise is a college saving service that links savings from accounts of parents, family and friends linked to the account. The savings from every day purchases allow students to begin earning money for college at an early point.

“Upromise’s goal is to help individuals attain the dream of higher education.” David Rochon, Upromise president said. “Only 5 percent of people are prepared to fully pay the expected costs of college. Through Upromise earnings and low-cost college savings plans, we make it easier for people at all life stages and income levels to pay for college.”

MasterCard fees waived on Haitian relief aid donations

2010-01-19T20:03:55Z

MasterCard will be waiving interchange fees on all donations made to The American Red Cross, AmeriCares, UNICEF, Save the Children and CARE USA on U.S. issued MasterCards. MasterCard has made a corporate donation to the American Red Cross and will double-match employee contributions to the Haitian disaster relief fund of the American Red Cross.

“Americans are opening their hearts to help the victims of this terrible tragedy, Chris McWilton, president of U.S. markets, MasterCard Worldwide said. “We want to ensure that their contributions go as far as possible.”

NationalCreditReport.com offers no enrollment credit reports

2010-01-19T20:00:25Z

Knowledgeable consumers need to know their credit score but many companies offering for purchase credit reports require ongoing enrollment. NationalCreditReport.com is now offering customers a “no strings offer” for customers to buy a credit report from a single-bureau report for $9.99 or a triple-bureau report for $24.90.

“Due to consumer demand we developed this product to make it easy for consumers, especially those who do not want to be automatically enrolled in a credit monitoring service, to buy their credit reports and scores through a hassle-free, no string attached shopping experience,” Samuel S. Ambrose, vice president of marketing and operations for NationalCreditReport.com said. “We believe there is a significant consumer demand for a credit report and score product purchased in a transparent transaction with no further obligations.”

Consumers are guaranteed, by law, a free credit report each year from each of the three major credit-reporting bureaus. The credit reports do not include a credit score but simply a look at a credit history and obligations.

Credit is safer than debit

2010-01-14T03:24:36Z

When consumers pay with a bankcard linked to a checking or savings account choosing to run the card as credit rather than debit can protect from fraud and liability. The money is automatically withdrawn from the account whether the card is run as credit or debit but a credit transaction requires a signature and is protected by whichever credit company issues the card.

“When one of our account holders questions a fraudulent bank card “credit” transaction on their statement, they’ve usually had to enter their signature at the time of payment,” John Kauchak, Unity Bank executive vice president, said. “If the signature on the transaction doesn’t match the cardholder’s signature the cardholder is covered by Visa/MasterCard regulations and not liable for the charge. Using the “debit” option doesn’t afford this same level of protection and the bank may not have to reimburse any of the disputed amounts.”

Many merchants automatically default to “debit” when customers run a bank card. The customer can select to cancel the debit transaction and then select the credit option.

Bank of America offers cash back or triple rewards and 0% introductory APR

2010-01-13T20:08:32Z

Bank of America has introduced a new line of credit cards with the BankAmericard Rewards Visa Signature cards. The new BankAmericard Visas offer a 0% APR for the first 7 to 10 billing cycles on purchases, balance transfers and direct deposits.

The Power Rewards card is offering 3 reward points for every dollar spent during the first 6 months on gas, grocery and pharmacies. Cardholders will earn 1 point for every dollar spent on all other retail purchases. There is no point limit.

The Cash Reward card offers 3% cash back rewards on gas, grocery and drugstore purchases for the first 6 months. Cardholders will earn a 25% bonus for cash reward redemptions of $300 or more with redemptions starting as low as $25. Automatic redemption rewards can be set up to receive a check, account credit, direct deposit credit or credited towards a Bank of America mortgage.

New fee may tax banks to reduce federal deficit

2010-01-13T20:04:19Z

Many big banks have paid back the loans received during the bank bailout. Now they are paying billions in employee bonuses while the U.S. unemployment rate remains at a startling high over 10%. But President Obama is proposing a fee on these financial firms to help get the American economy back on its feet.

America has resisted fees on banking and high taxes on executive bonuses, but the American public has shown increased anger at an industry that is thriving when more people than ever are struggling.

White House Council of Economic Advisors chairwoman Christian Romer said that the executive bonuses were “ridiculous” and would “offend the American People.”

According to former New York Gov. Eliot Spitzer spoke out against the high bank bonuses saying that, “they [bank executives] believe they are entitled to these crazy sums of money. It is inequitable, it is wrong.”

Chase Freedom Credit Cardholders to earn 3% cash back

2010-01-13T19:59:45Z

Chase bank offers Chase Freedom Credit Cardholders a constant 1% cash back on all purchases and 3% cash back on purchases in different categories during each quarter. Between Jan. 1 and March 31 cardholders who spend over $750 on purchases will earn 3% cash back rewards on every dollar spent on dining, education, childcare and utilities. Cash back rewards have no cap and never expire.

New cardholders will earn $50 cash back in bonus rewards after making their initial purchase as well as the 1% and 3% cash back rewards. Purchases made online through the Ultimate Rewards mall may qualify for up to 10% cash back rewards for purchases made with select participating retailers.

The Nation Magazine Visa Platinum Rewards Card supports America’s oldest weekly

2010-01-12T03:12:26Z

The Nation has been putting out weekly magazines since 1865 and is America’s oldest weekly magazine. But as print journalism struggles to keep afloat, The Nation is turning to a branded Visa Platinum Rewards Card to help pay bills.

The new card will reward both the magazine and its readers. The card offers 0% introductory APR on purchases and balance transfers and comes with no annual fee. Account holders will earn points on all purchases that can be redeemed towards free airline tickets, cash-back rewards and merchandise from participating merchants.

The card comes with standard enhanced Visa Platinum benefits that include 24/7 Emergency customer service, 100% fraud protection, extended purchase security and purchase warranty managers.

Bancorp Bank introduces Univision MasterCard Gift Card for Hispanic market

2010-01-07T20:21:08Z

The Bancorp Bank Payment Solutions Group, of Bancorp Bank, announced a new collaboration with Univision Communications to release the Univision MasterCard Gift Card. Univision is the United State’s leading Spanish media company.

“Univision’s mission is to inform, empower and entertain the Hispanic community,” Joe Uva, president and CEO of Univision Communications said. “We recognize, better than anyone, the importance of empowering Hispanics by connecting them with financial tools and services they can trust. Our financial services offering is an extension of our ‘Cuentas Claras’ initiative. We’re proud to partner with MasterCard, a payments leader that shares our goal of providing the tools, resources and services to empower our community.”

The new card is aimed at providing the Hispanic Community a secure, safe and cost-alternative to cash.

“We are excited about this new relationship and we look forward to working closely with Univision to help meet the financial needs of the U.S. Hispanic community,” Jeremy Kuiper, managing director for The Bancorp Bank said.

Junk mail is full of critical information

2010-01-07T20:16:20Z

Most junk mail, or perceived junk mail, is quickly tossed aside before ever being opened. Bank and credit card notices often end up in that junk mail pile. But with changing rules in the banking and credit industry consumers need to be vigilant about reading all of the fine print and opening every envelope.

New laws require any changes to an existing credit card agreement to be sent, in writing, giving the account holder advanced notice of the changes, as well as a chance to deny the changes and pay off the account under current terms. But those changes might come in either an unmarked envelope, or at the bottom of a statement that is usually ignored. Even small changes in an interest rate can equal hundreds or thousands of dollars over the life of a loan.

“As simple as it sounds, if you keep telling yourself that something’s important, rather than telling yourself that you just don’t have time to deal with it, you’re much more likely to take action, Susan Lannis, a professional organizer, said.

Besides making the time to simply open all envelopes professional organizer Nancy Nemitz suggests that people read each piece of paper with a pen or highlighter and mark all account amounts, due dates and interest rates.

“Review the information and make a decision on whether you want to continue using the credit card,” Nemiz said. “Most people set it aside to think about later, and too many other things get in the way.”

Finally, consumers need to realize that they cannot judge mail by the envelope. Many credit card companies mark credit card offers with notices such as “IMPORTANT” “TIME-SENSITIVE” “MUST RESPOND” in order to attract attention and avoid the junk mail pile. Other companies leave off the company logo from the envelope entirely.

“We don’t include the company logo on statement envelopes for security reasons,” Betty Riess, Bank of America spokeswoman said.

Citi CashReturns MasterCard offers cash for all purchases

2010-01-05T20:43:55Z

The Citi CashReturns MasterCard offers unlimited cash back for cardholders. The rewards card offers 1% cash back on every purchase and a 20% bonus on cash back rewards earned on all purchases for the first 12 months. Its easier than ever to redeem cash back rewards with an automatic payment of $50 each time the cardholders earns $50 CitiDollars.

There are over 400 participating merchants registered with Citi CashReturns offering increased cash back rewards, on average cardholders earn 5% cash back when making purchases with participating merchants.

US Airways make changes to create flexibility for members

2010-01-05T20:40:36Z

US Airways has announced new changes to Dividend Miles, its frequent flier program, changing the minimum mileage for some trips but adding new award levels for all flight destinations. The changes to the program are designed to make it easier for program members to redeem miles for the specific flight they want.

“I think you’re going to find that you’re going to be able to redeem on the dates you’re going to actually want to travel to the places you want to travel,” Fern Fernandez, director of marketing programs for US Airways said.

The changes will require more miles to be redeemed for free flights. The number of miles needed for a flight depend on the destination and the demand for the seat on that travel day. Now instead of offering only two tiers of mileage redemption a third, intermediate tier, has been added to all travel regions and routes.

US Airways made the change in response to complaints that there were too many blackout dates to popular destinations. The airline couldn’t afford to give free flights on dates that people were willing to pay for the seat, such as during the holidays, summer vacations seasons and convention seasons.

The higher maximum mileage levels make it possible for US Airways to offer free seats to members during prime travel seasons and the intermediate tier is meant for markets with lower demand.

Dividend Miles members with a US Airways frequent-flier MasterCard receive a 5,000 mile discount off the required mileage for free flights.

Bank of America Rainbow Card supports LGBT community

2010-01-05T20:35:42Z

The Bank of America Rainbow Card Platinum Plus Visa is a tool in the fight for equality and civil rights for gay and lesbian communities. A portion of every purchase dollar is donated to the Rainbow Endowment, a non-profit organization serving the LGBT community in a variety of ways.

The Rainbow card comes with a 0% introductory APR and a standard APR of 9.99%-17.99% variable APR depending on credit score and credit history. The card carries no annual fee and low balance transfer fees.

Besides making a charitable donation with every purchase, cardholders are rewarded with WorldPoints rewards redeemable for cash, travel, hotels, car rentals, gift certificates and merchandise. Cardholders will earn 1 point for every $1 in net retail purchases.

Secured credit cards repair credit scores

2010-01-03T21:02:55Z

For consumers with low credit scores or no credit history, a secured credit card can be one of the best options to build a healthier credit history. Secured credit cards require a deposit to be made to act as the credit line in case of missed payments. The credit card is reported as a traditional credit card improving credit scores without a risk to lenders.

Most national financial institutions offer a secured credit card option. Usually within six-months to a year of strong payment history on a secured card the cardholder will be approved for a traditional credit card. The security deposit is returned to the account holder.

Provident Bank Platinum Visa offers 0% annual interest

2010-01-03T20:59:49Z

Provident Bank, out of New York, is offering a Visa card with a 0% introductory APR on all purchases and balance transfers. After the introductory period the card has a variable interest rate of 8.99%-19.99% depending on credit history. The card has no annual fee but offers an optional enrollment into the Platinum Rewards program for only $19.

The Platinum reward allows cardholders to redeem points on purchases for merchandise, gift cards and travel. The card also offers a cash rewards card that rewards 1% of every $1 in net purchases. Each time that net spending reaches $5,000 cardholders will automatically receive a $50 check.

The Platinum Visa card offers a 25 day grace period for repayment of all services. Other services include online bill pay, zero liability on unauthorized purchases and 24-hour customer support services.

Bank of America gives admission to museums across the country

2010-01-03T20:53:43Z

Bank and America is continuing its Museums on Us program into the new year offering free admission to participating museums Jan. 2, and 3 with a Bank of America ATM credit or check card and a valid Photo ID. More than 100 museums, zoos, science centers and botanical gardens across the country are a part of the program.

California museums and institutions include the Los Angeles County Museum of Art, the Autry National Center of the American West, The Museum of Latin American Art, the Palm Springs Art Museum, The Living Desert in Palm Desert, The De Young Museum in San Francisco, The Birch Aquarium at Scripps in La Jolla and others.

New York participating museums include the Metropolitan Museum of Art, New York Aquarium and the Whitney Museum of American Art. A complete list of participating institutions can be found online.

Upcoming weekends include February 6-7, March 6-7, April 3-4, May 1-2.

Citigroup will not renew Zales’ private label credit card

2009-12-29T20:05:02Z

Citigroup has announced the end to a nearly 10-year relationship with Zales’ jewelers. Citigroup will not be renewing the company’s private-label credit card when it expires in March of 2010. The company will have the option of creating a new agreement with Citi or shopping for a new credit provider.

The company’s current terms include 0% liability on unauthorized purchases, an optional credit insurance and options of no interest, no payments for 90 days and no interest no payments for 6 months for qualifying online purchases.

The move did not come as a surprise to Zale’s Treasurer David Sternblitz as the entire credit industry makes changes in the face of new credit card legislation. The move is not seen as a reflection of Zale’s sales performance.

Disney and Chase offer Disney Rewards Visa Debit Card

2009-12-29T19:59:28Z

Disney and Chase have partnered to release a new Disney Rewards Visa Debit Card. The new card will give card carriers similar rewards to the Disney Rewards Chase Credit Card but is instead, linked to a debit account. The rewards include savings at Disney stores, character meet’n’greets and photo opportunities as well as Disney theme park savings.

“This is an excellent new choice for Chase customers who prefer to make purchases with debit cards because of the immediacy and the financial control it provides,” Charlie Scharf, CEO of retail financial services for Chase said. “The Disney Rewards debit card introduces a whole new world of Disney benefits to debit cardholders.”

Cardholders will earn .5% in Disney Dream Rewards Dollars on all qualifying purchases made with the Disney Rewards Card. For every $200 of non-PIN purchases cardholders earn 1 Disney Dream Reward Dollar. Each Disney Dream Reward Dollar is worth $1 when used to purchase Disney products.

“If you love Disney, this is the debit card for you. It helps you get more of the Disney you love – and makes your Disney experiences even better,” Jenny Cohen, senior vice president of Customer Relationship Management at the Walt Disney Company said.

Popmoney Mobile-Payment services allows payment via text, email

2009-12-24T03:17:33Z

Popmoney, a service from CashEdge allows users to send money directly from one bank account to another without using a bank service. The money can be sent to an online bank account, an email address, or mobile number. The receiver than verifies the transaction and can deposit into a bank account or a Popmoney account.

Neil Platt, senior vice president and general manager of US Banking says that he expects that most banks will offer Popmoney as a part of mobile banking. The platform can be bank branded. The most popular feature of Popmoney is that consumers don’t need to know an account number to transfer funds. They can send funds to any email address or mobile phone number.

“We think this will be a a part of every checking account in a couple of years,” Platt said.

Kucinich announces agreement with banks to keep customer legal rights

2009-12-24T03:13:20Z

Ohio Congressman Dennis Kucinich announced a new agreement with six major banks that will no longer have arbitration clauses on new credit card terms. The new terms come after hearings regarding clauses on credit card contracts that required cardholders to waive their right to a court hearing over disputes. Banks required cardholders to agree to arbitration, a process that has been shown to heavily favor banks rather than law.

“This holiday shopping season, consumers have the choice of using credit cards that don’t take away their legal rights,” a statement from Kucinich said. “In July, the House Domestic Policy Subcommittee…held a hearing in which we showed that mandatory arbitration is arbitrary, and that results depend more on the arbitrator to whom the case is assigned than on the face or the law that applies.”

JP Morgan Chase, CapitalOne, PNC Bank, TD Bank, Bank of America and Regions Bank have all agreed to no longer have arbitrations clause in credit card contracts. JP Morgan Chase and CapitalOne will both issue new credit card agreements to current customers that allow customers the right to a jury trial and to participate in class action law suits

Cyprus Bank launches Visa card for women

2009-12-24T03:08:43Z

Marfin Laiki Bank of Cyprus has worked with TSYS payment services firm to launch a new Visa card exclusively for the women of Cyprus. The Visa Women’s Card offers benefits with a focus on women’s health care and well-being such as free mammograms, osteoporosis tests, travel insurance and home care services. The loyalty program includes points redeemable at a variety of women’s retailers.

“We are very excited about the launch of our new Woman’s Card,” Rodoula Hadjikyriacou, director retail banking at Marfin Laiki Bank said. “With TYSY’ support, we’ve achieved a new milestone in the Cyprus market by bringing a truly unique card to market.”

Accor Hotels and MasterCard offering free night rewards

2009-12-24T03:05:06Z

Accor Hotels and MasterCard are partnering to offer MasterCard cardholders exclusive hotel deals and chances to win a variety of prize packages. Cardholders who book a consecutive three night stay at any of Accor Hotels 188 hotels in Asia Pacific before Jan. 31, 2010 using their MasterCard will win a free night stay. They will only have to pay for two of the three nights. Those staying longer will receive a 30% discount on the nightly rate.

“As the year approaches the traditional holiday period, who isn’t thinking about travel, even a short getaway,” Graham Wilson, vice president of marketing for Accor Asia Pacific said. “A free night at an Accor hotel throughout the region may be just the solution for those wishing for a quick trip away to recharge the batteries.”

Participating cardholders will be entered into a drawing for a three night stay at the award winning Pullman Sanya Yalong Bay resort located in Sanya, China. Accor and MasterCard will give away ten of the prize packages that include a private villa with a private swimming pool, massage area, Jacuzzi, private garden, king-sized bed and separate living room.

“MasterCard is committed to providing cardholders with privileges in the areas that matter the most to them and travel continue to be an important part of the lives of consumers in the region,” Andrew Quake, vice president of commerce development Southeast and South Asia MasterCard said.

Shoppers hunt for bargains

2009-12-19T16:44:43Z

Retail data from MasterCard Advisors found that the 2008 holiday season was one of the weakest seasons in decades.

“It’s probably one of the most challenging holiday seasons we’ve every had in modern times,” Michael McNamara, vice president of research and analysis at MasterCard Advisors said.

As shoppers head into the last weekend before Christmas retailers have to gamble to earn the most profit without losing customers. Many shoppers are expecting sharp discounts as they complete their holiday shopping.

100 merchants lose Visa capabilities for negative option scams

2009-12-19T16:41:21Z

Visa has made the decision to terminate services to 100 merchants using questionable marketing called negative options to scam customers. The most common scam is billing customers for what appeared to be a free trial of a new product. Negative options often include fine print and pre-selected options for the charges that the customer must track down to uncheck to opt out of the charges.

“We’ve been monitoring this situation from this summer in particular,” William M. Sheedy, Visa group president said. “Consumers are being fleeced.

Visa noticed a trend in more customer complaints about ongoing card charges for purchases that had been approved. The products varied, but the situation was usually similar. Ads often feature unauthorized photographs of celebrities that appear to be endorsing a new product. The consumer is lead to believe that they are signing up for a free offer and simply offering credit card information to pay for shipping and handling. What customers don’t realize is that they have agreed to ongoing charges by entering the card information.

“The game here is to get people hooked, keep them on the hook for monthly charges as long as you can, and only stop making those changes when you’re forced to,” Stephen Salter, vice president of BBB Online said. “The product is irrelevant to getting the charges on the card.

While it is misleading, negative option marketing is not illegal. Consumers are advised to carefully read all fine print and details before entering any payment information online.

Gift card users inadvertently give money back to stores

2009-12-15T04:30:44Z

Gift cards continue to gain in popularity, but even with new limits on gift card fees retailers still make more money than is spent on merchandise. In 2009 nearly $5 billion of gift card funds were unspent. The unspent money reverts back to the card issuer, be it a retailer or bank. This unspent money is called breakage.

Breakage is usually a result of lost or misplaced cards, expired cards, or small remaining balances that are unused. Often consumers will make a purchase just below the gift card amount but then fail to use up the remaining funds on a later purchase. Those small amounts add up over the millions of gift cards purchased each year.

Virgin Atlantic Credit Card offers 65,000 bonus miles

2009-12-15T04:26:44Z

Virgin Atlantic Airways is meeting competitors mileage offers by now offering up to 65,000 bonus miles for first year Virgin Atlantic American Express Card holders. Cardholders will earn the first 45,000 bonus miles by spending at least $750 on the card in the first 90 days. Cardholders will then earn three miles for each dollar spent on Virgin Atlantic purchases and one and a half miles for every dollar spent on retail purchases.

Cardholders are rewarded 7,500 bonus miles on the card anniversary if they have spent a minimum of $15,000 in the year. An additional 7,500 bonus miles are awarded to cardholders who have spent over $25,000.

Cardholders who spend $25,000 in purchases within a year will qualify to earn an economy companion award ticket for half of the standard miles of an award economy seat. Card holders can earn tier points towards earning or keeping elite status.

Blippy makes credit card transactions social

2009-12-15T04:21:54Z

Blippy, a new internet service, allows users to publish credit card transactions to a social network. The network mimics twitter by publishing the amount spent on a purchase and where with room for a short note explaining the purchase as well as allowing comments. Blippy allows consumers to connect a credit or debit card to the site as well as tracking accounts at online retailers such as Amazon and iTunes.

“The question that Blippy answers is ‘what are your friends buying,’” Phil Kaplan, co founder of Blippy said.

The service is meant to allow customers to track where they are spending money and what they are spending money on as well as broadcasting the information to “friends”. Blippy has features that allow consumers to set their account to a protected or open setting. The protected setting only allows approved followers to see the account.

Bank of America repays US TARP funds

2009-12-11T21:40:50Z

Bank of America has completed repayments of $45 billion to the US government. The bank received the funds from the Troubled Asset Relief Program last year as Congress made moves to relieve the economic downfall and credit crunch.

“We owe taxpayers our thanks for making these funds available to the nation’s financial system and to our company during a very difficult time,” Kenneth Lewis, Bank of America chief executive said. “Now that we have cleared this significant hurdle, which demonstrates the strength of our company, we look forward to continuing to play a key role in the economic recovery and helping to meet the changing needs of our customers and clients.”

MasterCard appoints new President, MasterCard Advisors

2009-12-11T21:37:26Z

MasterCard announced the appointment of Kevin Stanton as President, MasterCard Advisors. MasterCard Advisors is the company’s professional services branch. The position will be effective Jan. 1, 2010. Stanton has previously served as MasterCard President for the company’s Canada region.

“Over the past several years MasterCard Advisors has developed into a key differentiator for our organization,” Gary Flood, president of global products and solutions at MasterCard said. “From our unique information services, to our highly skilled data analytic and risk management practices, our products and services are unmatched in the industry. As a strong leader, who has produced solid results, we look forward to him [Stanton] helping us expand and more fully realize the potential of our Advisors’ offerings.”

Stanton will be responsible for heading up products and services offered through MasterCard Advisors including overseeing regional Advisors teams. That includes the three practice areas of Marketing Services; Information and Analytics; and Risk, Fraud, and Operational Efficiency.

Government proposal to affect retail credit cards

2009-12-10T20:18:13Z

As part of changing credit card legislation the Federal Reserve is proposing new laws that will require retailers who offer a store-issued credit card to verify the consumer’s ability to pay off debts. That means that rather than just running a quick credit check when a customer completes a credit application stores may ask for proof of income such as bank statements or payroll stubs.

The retail industry is opposed to the legislation which would change, if not end, the practice of instant rewards for credit card approvals as customers check out.

“Credit scores, which are derived from consumer reports issued by credit bureaus, are a workable alternative that also reliably predict consumers’ ability to pay,” Mallory Duncan, of the National Retail Foundation said. “[The new process would be] Much more disruptive than we believe was ever intended or envisioned by Congress.”

American Express is testing a new charge card for younger consumers

2009-12-10T20:15:01Z

American Express will soon launch Zync, a new charge card, for consumers in their 20’s. As a charge card Zync will require cardholders to pay the account off in full each month but will have lower fees.

Charge cards offer many of the same benefits as a credit card such as buying on credit and building a credit history but charge accounts don’t earn interest since the account must be paid in full each month. Charge cards also help consumers avoid falling into debt since consumers cannot spend more than they can pay in a month.

Zync will have a $25 annual fee as opposed to the American Express green charge card, which charges a $95 annual fee. The annual fee will be waived for the first year of membership. Zync cardholders have to enroll in the American Express Membership Rewards points program and select a benefits “pack”. The benefits pack offers a variety of rewards from airfare, restaurants, entertainment and retail merchants.

Airlines offering bonus miles with retail partnerships

2009-12-08T20:41:06Z

Many airlines are offering frequent flier members bonus miles by making purchases at partnering retailers. By planning ahead shoppers can buy holiday gifts and begin saving for upcoming travel.

Alaska Airline Mileage plan members can earn double miles with participating retailers by shopping at the Mileage Plan Shopping mall. Stores include apparel, jewelry, beauty and health, books, electronics, home goods and more. Consumers must register on the site to earn miles.

Delta is offering a similar bargain for customers shopping through Sky Miles Shopping. The online merchant has over 500 merchants and 16 million products available for double, triple and quadruple bonus miles.

American Airlines is offering double miles for purchases made at select retailers with a MasterCard through Dec. 31.

EA Sports to offer debit card reward program

2009-12-08T20:35:31Z

EA Sports and Visa are launching a prepaid debit card with a reward program. The program will let sports fans earn points to buy EA Sports games. Card users will receive reward points for all purchases made with the card.

“The EA Sports DebitSmart Visa Prepaid card is a great opportunity for us to offer our community of loyal customers a new way to purchase and save on their favorite EA Sports game titles,” Todd Sitrin, group vice president global marketing of EA Sports said. “Consumers use the card while making their everyday purchases and are rewarded with EA Sports video game. This program is a perfect marriage of encouraging responsible spending while providing a unique reward program.”

The prepaid debit card is reloadable at GreenDot and Western Union retail locations. Consumers can also choose to add funds via direct deposit or a checking account.

Black Friday shopping sets new records

2009-12-04T19:57:29Z

Shopping sales over the Black Friday set new records despite declining shopper traffic. ShppperTrak reported that weekend sales increased 1.6% but that shopper traffic declined 1.1%. Spending on Black Friday reached $10.66 billion for a new record.

“The bottom line is, retailers saw a slight sales increase with a minimal traffic decrease, both of which are tremendous improvements over sales and traffic levels we saw through 2009 prior to the holidays,” a ShopperTrak, a Chicago-based company, report said.

Consumer shopping data shows that electronics and jewelry were among the highest selling items with a decline in sales of apparel and luxury items.

Continental Airlines to require credit and debit for on-board purchases

2009-12-02T13:20:47Z

Continental Airlines announced plans to require credit and debit cards for travelers making on-board purchases during flights. Some flights will still be able to accept cash payments for the time being.

“Continental is making the change in response to feedback from customers and flight crews who expressed interest in using card readers for on-board purchases to eliminate the hassle of fumbling for money and making correct change,” a Continental statement said.

Target considers new credit card reward program

2009-12-02T13:17:58Z

Target Redcard cardholders may soon receive new rewards. Currently Redcard cardholders earn a coupon for 10% off one day’s purchases for each $1000 spent on the card. The company is now testing a new strategy in some markets.

“In Kansas City and San Antonio, we’re running this pilot program,” Eric Hausman, Target spokesman said. “Guests who use their Target Visa or Target credit card in our Target stores get a percent off every time they shop.”

The pilot program is still in its beginning stages. There is currently no timeline for the trial or decisions about changing the credit reward program.

New England Patriots Credit Card offers extra points

2009-12-02T13:12:54Z

New England Patriots fans can now show their support with an NFL Extra Points Platinum Plus Visa card from Bank of America. The new Visa card features the New England Patriots team logo and offers a $50 gift certificate for the NFLshop.com after making the first qualifying purchase.

The card has no annual fee and reward points are redeemable for Patriots memorabilia, gear or experiences like a VIP dinner with the coaches. There is no limit to the amount of points possible. Points are redeemable for up to 5 years after they are earned.

Charge Large is a new game to teach good credit habits

2009-11-30T02:01:05Z

Charge Large is a new board game inspired by the collapse of the credit card industry and the rise of predatory lending practices.

“The game is a reaction to easy credit,” Joes Davis, one of the game’s inventors said. “There was a mystique of it, a sexiness to credit.”

David and Adam Kornblum, two Long Island, New York residents were inspired to create the game after seeing credit card offers readily available at college campuses. The two began working on an idea for a board game to teach wise credit card use.

In the game players travel around the board to purchase businesses and buildings using cash and credit. As the game continues players move from gold cards to platinum and then to black cards. Hasbro has signed an agreement to license the game. It has been popular in classrooms around the country.

“Debt isn’t going to stop,” Davis said. “But we have to teach kids. The name of the game is Charge Large, but I think the real name should be Charge Large responsibly.”

U.S. Fed to counsel consumers at the movies

2009-11-30T01:56:25Z

The United States central bank has faced criticism for not protecting consumers from risky lending practices so now they are sponsoring advertisements before movie previews at 12 theaters in major cities around the country. The ads will run Nov. 27 – Dec. 3.

The advertisements will inform consumers on how to use credit cards safely and wisely. They will feature basic advice such as paying on time, staying below the credit limit, avoid fees by paying on time and to make more than minimum payments.

The ads are set to run during the time when retailers look to make up to 40% of annual profits with bargains, commercials and extended hours. The Fed also sponsored ads earlier in the year advising consumers on mortgage foreclosure rescue scams.

Citigroup to sell Diners Club North America to Bank of Montreal

2009-11-30T01:51:55Z

Citigroup has agreed to sell its Diners Club North America credit-card business to Bank of Montreal ending a 28-year relationship to the world’s first charge card. Diners Club was introduced as the first charge card when used at a New York restaurant in 1950. The sale will mark Citigroup’s move away from all of Diners Club businesses.

“The sale of this business is consistent with Citi’s strategy to optimize the assests and business within Citi Holdings while working to generate long-term profitability and growth,” a Citigroup statement said.

The acquisition will more than double the Bank of Montreal’s corporate credit card business adding $7.8 billion in card transactions and net receivable of $1 billion to the company’s portfolio. The sale now gives Bank of Montreal exclusive rights to issue Diners Club cards to corporate and professional customers in North America.

American online consumers lose estimated $1.4 billion

2009-11-30T01:46:54Z

The U.S. Senate Committee on Commerce, Science and Transportation found that American online shoppers have had nearly $1.4 billion stolen from them in illegitimate credit card charges resulting from inadvertently signing up for fraudulent monthly subscription services. The hearing came after a six-month investigation into fraud allegations. The companies ask customers to enter an email address to get a small cash back coupon. By entering the email address consumers have unknowingly opted into a “customer loyalty” program authorizing credit card charges.

Many customers are not aware of the charges since they never give a credit card number. The credit card information is passed on to the subscription service by online retailers. The programs are legal since the customer agrees to the subscription service by entering their email address even if the consumer is unaware of the charges. The programs rely on customer trust for the retail site to lure in potential target “customers”.

The subscription services maintain that the loyalty programs are legitimate since the terms and service are disclosed in fine print although it is often easy to miss small or hard to read print. Some participating companies report earning up to $70 million in fees by passing along customer credit card information.

Salvation Army bell ringers can now take plastic

2009-11-24T20:31:38Z

As Salvation Army volunteers head to their holiday posts in front of stores with bells and red kettles they will now be able to accept credit card donations. Many store front ringers will now carry a hand-held credit card terminal so that shoppers can swipe a credit or debit card for any amount donation. The terminals can print a receipt for tax deductions.

The terminals do not store the credit card information so there is no risk of theft. The information is transmitted directly to the credit card company and is not stored by the Salvation Army.

Citi customers can avoid interest charges by meeting spending limit

2009-11-24T20:29:20Z

Some Citibank credit card holders will now be able to avoid paying interest on credit cards by meeting a monthly spending limit. The move coincides with interest rate increases planned ahead of changing credit card legislation.

The spending minimums and interest changes will depend on the cardholders credit history. Qualifying customers will receive a rebate on total interest charges for the billing cycle by spending the minimum amount and making on time payments.

Citi is estimating that about half of its customers will qualify for rebate from 50% to 100% of interest rate increases. Most customers who decline new terms on a current Citibank account will be allowed to continue their account until the card expires. Some accounts will be deactivated if new terms are not accepted.

American Express to buy internet-based payment network Revolution Money

2009-11-24T20:25:52Z

American Express has announced plans to buy Revolution Money from America Online founder Steve Case. Revolution Money is an online payment system that offers free online money transfers and PIN-based cards with significantly lower merchant fees.

“We want to provide a range of options and choices for our customers and our merchants,” Kenneth Chenault, CEO of American Express said. “This [the purchase] is the opportunity to offer a debit product, not only through AmEx, but also through bank partners.”

Revolution Money was created to mimic the capabilities of social networking sites such as Facebook to cheaply process millions of transactions in person-to-person payments.

“This is such a great opportunity for us,” Ted Leonis, Revolution Money chairman said. “American Express has a large customer base that’s accustomed to innovation.”

Fair Isaac offers new credit scoring service

2009-11-19T05:25:34Z

Fair Isaac Corporation, the company that developed the FICO credit score, has introduced a new service to help lenders measure borrow risks. The new service is called the FICO Score Trends Service, and will now offer specific scores that measure risk specifically for credit card loans, mortgage loans and auto loans. The new service will also allow credit lenders to compare loan performance data to other lenders in the same region.

"Credit Markets" increased unpredictability and volatility in recent years and has elevated portfolio risk for lenders in multiple industries,” Robert Duque-Ribeiro, vice president and general manager of FICO scores said. “With this latest version of FICO Score Trends Service, Fico is addressing our clients’ requirements for greater insight and transparency by clearly showing how score-to-odds relationships have evolved across regions.”

Bank of America scam claims to offer $50 to complete a survey

2009-11-19T05:18:46Z

A new email scam is circulating and luring in potential targets with a $50 reward for filling out a survey for Bank of America. The email offers a $50 credit towards a Bank of America Credit card bill for filling out a brief survey aiming to increase customer satisfaction. The survey then asks for personal information that can be used to steal the credit card information. The email also gives a deadline so that readers feel a sense of urgency to complete the email.

Consumers need to be aware that financial institutions will never call or email to ask for account information such as an account number, PIN or security code. The only time that a consumer should ever be asked for an account number is if they have called the financial institution regarding the account. A financial institution will never need a customers PIN or card security code.

Holiday shopping sees increase in thefts

2009-11-19T05:12:04Z

As more people are out holiday shopping, so are thieves. The busy holiday season, packed stores and shoppers in a hurry mean that thieves can steal wallets, purses and packages. With a little bit of extra vigilance, shoppers can protect themselves

The first thing that shoppers should do is empty out wallets of all most important cards. Consider carrying only one piece of picture ID and one credit or debit card. Purses should be cleaned out as well so that shoppers are carrying a minimum of belongings and personal information on them. By only carrying a single card, consumers lessen the impact if their wallet is stolen by not providing many different cards and accounts.

While shopping do not hand over a debit or credit card. Ask to swipe the card yourself and make sure to shield the keypad when entering a PIN. Double check all receipts to ensure that you were not over charged or charged multiple times for a single purchase.

Shoppers should avoid carrying many shopping bags at a time. When customers are loaded down they are more likely to set bags down leaving themselves vulnerable to theft. Once shoppers have a few bags they should take a trip out to their car and put bags in a trunk or covered so that they are not visible from the outside.

These few steps will help to make shoppers less vulnerable to some of the most common thefts during the holiday season.

Spirit Airlines to make it easier to earn free flights

2009-11-19T05:05:35Z

Spirit Airlines new programs will make it easier for Free Spirit MasterCard holders to earn free flights, and to earn them more often. The new program will allow cardholders to redeem miles for a free round-trip ticket using 5,000 reward miles. Previously Sprit required cardholders to redeem at least 15,000 miles for a short-haul trip.

“This pretty much captures about 90% of our flights,” Barry Biffle, Spirit’s chief marketing officer said. “We’re going to give away a lot more free seats.”

Spirit is hoping that the new promotion will put the airline in position to be viewed as a top preference airline. Spirit is also allowing cardholders to redeem miles for a one-way flight.

Spirit is currently offering 15,000 bonus miles to new Free Spirit MasterCard holders after their initial purchase.

Visa releases new reloadable prepaid debit card for unbanked

2009-11-18T03:56:23Z

Visa announced that it will release a new Reloadable Prepaid Debit Card that will be available in Winn-Dixie supermarkets next month. The card is marketed for consumers who do not have a banking account. More than 100 million Americans are considered unbanked but are still in need of the conveniences of a debit card.

The card will cost $3 and come with a $2.95 monthly maintenance fee on the card account. Card users will be charged $2.95 to add funds and $1.50 for ATM withdrawals. Purchases can be made on the card without a fee.

MasterCard and Facebook partner to help find holiday gifts

2009-11-18T03:52:11Z

Facebook users have a new tool, the MasterCard Priceless Gift Finder, to help them find the perfect holiday gift for everyone on the shopping list. Facebook users can register to build shopping lists, build a budget, and shop according to personality types and price range.

“The utility of the tool makes it easy to select these perfect gifts, while tracking a budget and managing a holiday shopping list using social media applications that are already a part of many shoppers lives,” Cheryl Guerin, senior vice president of marketing and digital for MasterCard Worldwide, said.

Consumers who use the new MasterCard Priceless Gift Finder will receive a $10 credit to qualifying Amazon accounts to be used at the Amazon MP3 store by buying recommended gifts at Amazon.com using a MasterCard.

Federal Reserve finds that banks tighten credit

2009-11-11T20:25:21Z

A quarterly survey conducted by the Federal Reserve found that banks have plans to increase rates, reduce credit limits and to raise annual fees as new laws take effect. Banks have begun to push rate increases to beat the new laws, but the House has approved legislation to move the laws effective date forward in response.

The survey found that almost 26% of all banks said that they have already increased standard requirements for home mortgages, and 30% reported increased standards on nontraditional mortgages such as adjustable-rate loans. The numbers show that banks are changing standards to beat legislation, but at a slower pace than in July of 2008 when the economy was reaching it’s lowest points. That survey found 75% of banks reporting increases.

More taxicab drivers are happy to accept credit

2009-11-11T20:22:41Z

The technology to accept credit card payments in taxicabs is still relatively new, but the option to pay with plastic is gaining favor with both drivers and riders. A new study from the Taxi and Limousine Commission reported that the average tip on a credit card transaction is 22% which is higher than the average 10% for reported cash tips.

“It’s better,” Naveed Shah, a NYC taxicab driver of five-years said. “If there was no credit card, people aren’t going to take taxicabs.”

The TLC has mandated that all taxicabs in New York be equipped with credit/debit card readers so that consumers may pay with an American Express, MasterCard, Visa or Discover Card. Consumers are not required to have a minimum payment or additional fees to pay with a credit card.

“Credit cards helped the New York industry stay stable in a time with the rest of the for-hire industry was in significant decline,” Alfred LaGasee, CEO of the Taxicab, Limousine and Paratransit Association said.

The ability to pay with credit cards is beneficial to business travelers who must present receipts for reimbursement. Using a credit card is often a much easier way to track business expenses and track them accurately. Using credit is also helpful for those who itemize tax deductions and are able to deduct work commute expenses.

British Airways and Chase Card Services are offering 100,000 reward miles

2009-11-11T20:17:43Z

British Airways and Chase Card Services will soon be offering what may be the best reward program offered. The British Airways Visa Signature Card will offer 100,000 bonus reward miles as a sign-up bonus. The first 50,000 miles will be rewarded after the first purchase, and the second 50,000 miles will be rewarded after the cardholder makes $2,000 in qualifying purchases after the first three months.

The bonus will be available beyond existing members of the British Airways Frequent Flier program on Nov. 16. Additional benefits include 1.25 miles for every $1 in purchases and 2.5 miles for every $1 spent on British Airways travel. Cardholders will receive a companion redemption voucher for a trans-Atlantic flight if $30,000 in purchases are made using the card in a year.

Cardmembers will be automatically enrolled in the airline’s frequent flier program, the Executive Club.

Top credit card benefits

2009-11-11T20:13:52Z

Many credit cards offer consumer benefits that cardholders may not be aware of. These benefits aren’t often used but can save consumers hundreds to thousands of dollars if used correctly.

One hidden value might be auto rental collision damage waiver. Rental car insurance is one of the ways that rental companies increase profit, but some credit cards already offer this protection. Check with your card company to save up to $20 per day on auto rental insurance.

Many credit cards offer extended warranties beyond a manufacturers warranty on items purchased using the credit card. This benefit is best for large purchases such as electronics or power tools. Consumers should contact their credit company to make sure that purchases qualify and to keep all necessary paperwork to file warranty claims.

Similarly, many credit cards offer purchases protection to insure purchases that are damaged or stolen within 90 days of the original purchase. This benefit entitles the cardholder to a full refund. Various cards have differing purchase limits and requirements such as showing consumer due diligence to find or protect the purchase.

Different cards offer a variety of these and other protections. Consumers should read the fine print or contact their credit issuer to find out what protections are available to them and how to utilize those services.

Consumer credit card debt falls

2009-11-10T20:33:43Z

New statistics from the Federal Reserve show that the annual revolving consumer credit debt fell 13.3% in September. That drop might indicate that consumers are paying debt off and using credit less. The 13.3% drop was from $898 billion in revolving consumer credit debt to $889 billion in revolving consumer credit debt.

Non-revolving credit debt, measuring credit such as auto loans, dropped from $1.57 trillion to $1.56 trillion for a 3.7% decline.

OfficeMax and U.S. Bank offer OfficeMax Visa Signature Credit Card

2009-11-10T20:30:54Z

OfficeMax is offering more than office supplies with the new OfficeMax Visa Signature and Rewards credit card issued by U.S. Bank. The new credit card will earn 3 points for every $1 spent at OfficeMax stores and 1 point for every $1 spent on other purchases. Card users will also earn 8% in rewards through the MaxPerks Rewards program for all OfficeMax Visa purchases.

“U.S. Bank has had a long and rich history of successful retail credit card programs that appeal to customers and build brand loyalty,” Ryan Vero, EVP and chief merchandising officer for OfficeMax said. “Our customers appreciate the benefits of our credit card program and regard it as a valuable tool for their business and home office. We look forward to working with U.S. Bank in identifying new reward opportunities that complement our MaxPerks Rewards program and help our customers in unexpected ways.”

Cardmembers will be able to redeem reward points for a variety of rewards that include OfficeMax gift cards, cash back rewards, merchandise and travel opportunities.

“We are proud to add a successful national retailer like OfficeMax to our portfolio and the new no-annual OfficeMax Visa will be a meaningful accelerator to their MaxPerks loyalty program,” John Owens, senior vice president of U.S. Bank retail payment solutions said.

Fraudulent Bank of America emails scam customers

2009-11-05T20:15:38Z

A new email scam looks like an official email from Bank of America. The email is official in tone and may be stamped with the Bank of America logo. The email asks for information such as account number and PIN to correct unauthorized charges. The consumer is meant to send the information to “verify” that they are in fact the account owner.

Authorities are advising consumers to ignore the email and notify their local bank of the scam attempt. Consumers need to know that a bank will never email a consumer asking for account information and that a consumer should never give out a PIN. A PIN is only for the consumer to validate a purchase, it is not necessary to give out to verify account security.

Visa to phase out signature on credit purchases

2009-11-05T20:13:12Z

Visa is in the process of eliminating the requirement for signatures on credit card transactions by April 2013. Visa is transitioning to embedded security chips and PIN’s for increased consumer security. The process will begin by requiring all Visa credit cards issued by local banks to have the new embedded chip. By January 2011 all Visa debit and reloadable prepaid cards will have the chip technology.

“As long as cards are not chipped and transactions are not being made over EMV (chip verification standard) terminals, we’re holding ourselves open to skimming of credit card data from the old magstripe cards,” Visa general manager Chris Clark said.

37% of Visa cards already have the embedded chip technology.

Platinum Zero secured Visa credit card designed for those with poor credit

2009-11-05T20:09:43Z

The new Platinum Zero secured Visa credit card is ideal for consumers with a limited credit history or a poor credit score. The card allows consumers to set their own credit limit by making a secured deposit from $500 to $5000. The credit line is equal to the amount of the deposit and can be increased at any time.

The card has a 0% APR on purchases and a low $9.95 per month fee. There is no income requirement to be approved for the card, other than being able to make a minimum $500 secured deposit. The card is reported to credit bureaus and will help consumers build a stronger credit score.

Study finds that Credit Unions offer best credit cards

2009-11-04T20:23:00Z

A new study by Pew Charitable Trust found that credit unions offer consumers the best credit cards in a time when bank offers are less attractive. The report listed many advantages in credit union credit cards such as lower interest rates on purchases and cash advances, lower penalty fees and less frequent penalty charges.

In comparing offers between large banks and credit unions the report found that credit cards issued by credit unions have fewer “unfair or deceptive” practices. While the banking industry is undergoing many changes resulting in changing interest and fee structures consumers should consider the safest option, which appears to come from a credit union.

Credit Unions are less plentiful than banks and often require membership or affiliation with a group such as a union, university or the military. Other credit unions are available to customers within the town or city that are willing to pay a small membership fee.

Amazon’s PayPhrase is newest convenient, secure online payment alternative

2009-11-04T20:18:20Z

Amazon is offering consumers a new route to easier online payments with less hassle through PayPhrase. PayPhrase links Amazon and other online retailers to one card represented by a customized phrase and PIN. PayPhrase allows customers to only enter their selected phrase and PIN rather that sensitive card information.

“PayPhrase solves the headache of trying to keep track of all the different usernames and passwords people use to shop on various sites across the web,” Matt Williams, general manager of Amazon PayPhrase said. “With PayPhrase, all you need is one phrase and one PIN to pay online. We think customers will enjoy the simplicity that Amazon PayPhrase offers, and we hope they’ll have some fun choosing their own personal phrases.”

PayPhrase offers further conveniences by not requiring customers to enter billing and shipping information. PayPhrase purchases automatically ship to the address stored on Amazon.com.

Zong links mobile payments to phone bill, credit card

2009-11-02T20:35:25Z

Zong is a payment option that allows consumers to enter a 10-digit mobile number to charge virtual goods, such as online games and social network upgrades, to their phone bill. Now the service allows users to link their phone number to a credit or debit card.

“The ability for our customers to bill purchases to either their mobile bill or their payment card of choice will be essential for driving transaction completion,” Rajat Kongovi, director of business development at hi5 said.

As well as allowing consumers the convenience of making purchases quickly using only their mobile number, a number most already have memorized, business can also reach consumers who are without a credit or debit card.

BlackBerry can now process credit card transactions

2009-11-02T20:31:06Z

New software from Rapadev called Road Merchant is an application for BlackBerry to allow the mobile device to process credit card transactions. The new software allows businesses and merchants to conduct business away from an office at places such as street faires, conferences, or job sites.

Bluetooth Card readers are available for customers that need card swipe and receipt capabilities. Road Merchant can be purchased and downloaded from the BlackBerry browser.

Jetstar MasterCard exempt from airline booking fees

2009-10-29T19:15:19Z

Australian airline, Jetstar, announced the launch of Jetstar MasterCard, a new low-rate credit card that earns Jetstar dollars and is exempt from flight booking fees. Consumers can begin applying for the card on Oct. 29, 2009.

“We aim to do for credit cards what Jetstar did for low fares airline travel in Australia when we launched back in 2004, Bruce Buchanan, Jetstar chief executive officer said. “To present consumers a choice with real benefits and with a low every day rate of 10.99%.”

Jetstar is a low-cost airline that is finding new ways to save customers even more money. By launching a MasterCard branded credit card the company can waive the $3 per domestic flight and $5 per international flight fee.

The Jetstar MasterCard will earn one cent in Jetstar dollars for every dollar spent. The Jetstar Platinum MasterCard earns two cents for every dollar spent. The airline hopes to offer customers the option of earning Qantas frequent flyer points for purchases made on the credit card beginning in 2010. Jetstar is a subsidiary of Qantas.

MasterCard expands market for utility payments

2009-10-26T19:31:24Z

Utility companies are rapidly switching from paper-based billing to electronic billing both to reduce paper waste and to improve efficiency. As electronic payments for utilities become more commonplace, MasterCard aims to lead the market.

“We’re very pleased with the movement towards card acceptance across utilities of all sizes,” Steve Carnevale, vice president of New Markets and Consumer Bill Pay for MasterCard said. “Our rate incentive has helped, no doubt.”

The rate incentive is a part of MasterCard’s Utility Industry Program that includes lowered interchange rates and reduced fees to create business incentives and benefits to accept MasterCard payments.

MasterCard offers technological support for switching to an electronic billing and payment system by providing training and education for businesses acquiring the necessary technology to utilize MasterCard payment systems. Support includes helping businesses determine the most effective transaction mode such as recurring payments to a card, phone-based payments, in-person card payments or online bill pay.

Technology is possible to create one virtual credit card

2009-10-26T19:27:19Z

Designer Kim Young Suk has created an all-in-one electronic card that can function as any credit or debit card as well as storing transaction information. His The One Card Electronic Card design is the size of a single credit card, but stores the information of many cards.

The card functions with an OLED display on the face of the card. The display will show the card information that the consumer selects. The consumer can switch between card options by turning a small dial located on the card. The device has a strip on the back of the card that mimics the function of the magnetic strip on a traditional credit card, switching with the card selection.

The card has a removable memory card that records transactions and stores receipts. The removable card allows consumers to store private transaction information on a home computer.

While the card is conceptionally functional, it still has to gain the support from major banks and credit card issuers before becoming a viable consumer choice.

Using credit might help prevent HINI

2009-10-23T02:28:41Z

Viruses are spread from person to person as germs are transmitted through contact with contaminated surfaces such as doors, desks, and money. Money is often a breeding ground for a variety of germs since it is usually stored in a warm location such as a purse, wallet or pocket and is passed quickly to multiple people. A single dollar bill might be passed to four or five people within the time frame of a single work day.

A plastic credit card, on the other hand, is easily cleaned, non porus and not passed from one sick person to the next. A consumer can choose to never hand over a credit card, handling all transactions on their own preventing others’ germs from being passed to them.

“Any surface could contribute to the passing of the virus, which typically will live up to six to eight hours after contact has been made,” Llelwyn Grant of the Centers for Disease Control and Prevention said.

A credit card can be quickly wiped down with an alcohol-based cleaner after each time that it is used, or that a new set of hands touches it to dramatically reduce the number of germs being carried on the card.

CTA will allow credit cards and cell phone payments to pay for parking

2009-10-23T02:25:10Z

The Chicago Transit Authority board approved a new contract that will allow customers to pay at park-and-ride lots with credit rather than the current cash only system. The contract is with CPS Chicago Parking and will be implemented in 11 of the 17 park-and-ride locations.

The new contract will go into effect on Dec. 18 and CPS is supposed to install the new collection equipment within 120 days. The new equipment will be able to accept cash, credit, and phone payments for customers that do not like to carry a credit card with them.

Using credit to pay at the pump can carry high costs

2009-10-21T01:45:21Z

Paying at the pump is convenient, but can lead to a lack of available funds, overdrafts and fees. Many banks put a hold on funds, some up to $75, when a consumer uses a card to pay at the pump.

Banks defend the practice as protection since the final transaction amount is unknown until the transaction is processed, sometimes several days later. By placing a hold on a large amount of funds, banks guarantee that the purchase is covered. But filling up a few times, such as when traveling, can tie up hundreds of dollars causing cards to be rejected when in actuality funds are available.

Consumers can avoid the holds on accounts by paying for a specific amount of fuel inside the station rather than at the pump.

It pays to recognize warnings of credit card scams

2009-10-21T01:41:54Z

Customers are often quick to give out credit information to a caller who identifies himself as being from a bank or credit card company. But before giving out account information, consumers need to step back and consider the whole situation.

Many times credit card thieves will call a long list of numbers hoping for a hit, so when a caller identifies themselves as calling about a card, consumers need to think if that has been given to the credit card company.

“We see so many variations of this kind of scam,” Michelle McDaniel, president and CEO of the Better Business Bureau of North Alabama said. “People have to be alert.”

Another warning sign of a credit scam is if the caller asks you to give your account number and security code for verification. A credit card company will already have the account information and will ask the caller to confirm their identity through stating their name, address, or a variety of security questions listed on the account.

A final warning sign is a caller asking for a PIN for verification. A card PIN is not needed by a bank or credit card. The PIN is solely for consumer use. A caller who asks for a PIN is a scammer and the call should immediately be reported to the financial institution.

MasterCard launches web-based personal finance service

2009-10-21T01:34:27Z

MasterCard launched Money Manager an online personal finance and budgeting service to help cardholders categorize and manage spending. Money Manager allows consumers to review signature and PIN-based transactions sorted by merchant categories, create customized spending categories to identify spending patterns, and compare actual spending to a budget.

“MasterCard Money Manager provides our members with a simple and convenient way to create a budget and then track how and where they are spending,” Keith Sultemeir, executive vice president and chief financial officer of security services said. “Especially in today’s economic environment and as we approach the start of the holiday shopping season, we’re excited to be able to offer our members more control and greater financial management capabilities simply by using their debit card.”

Program users can track household spending on multiple cards daily, monthly and over time. Users have the options to sort transactions by date, merchant category, merchant locations, card number and name.

Bank of America tests new annual fees

2009-10-21T01:29:36Z

Bank of America recently announced that they will begin testing annual fees on nearly one percent of accounts. The fees will range from $29 to $99.

“Selection was based on individual accounts, not a specific card, and generally was based on risk and profitability of the account,” Better Reiss, Bank of America spokesperson said.

Customers were notified about the fee change in early October and the fees will appear on February billing statements. In accordance with new banking legislation, consumers can choose to reject the fee. Consumers who reject the fee can pay off the account under their current terms, but the account will be closed.

Closing accounts can hurt credit scores. Bank of America is not the only bank to announce new annual fees. Financial Research firm Tower Group found that 27% of credit card offers carried fees in the first three months of 2009 as compared to 18% of credit card offers in 2008.

MLB and MasterCard extend Stand Up To Cancer campaign

2009-10-13T03:48:58Z

Major League Baseball and MasterCard Worlwide are extending their charitable partnership with Stand Up To Cancer through the 2009 postseason games. MasterCard will donate $1 million to Stand Up To Cancer if a “Hit it Here” sign in the outfield is hit during Game 3 of the World Series. The company will also donate $1,000 for every home run hit during the entire post season.

“MasterCard played a huge role in helping Major League Baseball “go beyond” during All-Star Week,” Allan H. (Bud) Selig, Baseball commissioner said. “We’re thrilled they have elected to expand upon this great charitable platform with Stand up To Cancer throughout the post season.”

“Extending our support for Stand Up To Cancer throughout the MLB Postseason provides MasterCard with a highly visible platform to get behind a critical mission that connects our employees, customers, cardholders and baseball fans, Rob Steeger, vice president of US sponsorships for MasterCard Worldwide said.

Purdue offers students free financial literacy support

2009-10-12T19:49:01Z

Purdue’s Division of Financial Aid is joining in with Indiana Money Smart Week to offer students financial literacy information across campus on Thursday, Oct. 15. Topics will include money management, credit, spending and student loan debt management.

“In these uncertain economic times, it has become even more important for students to know how to manage their money wisely,” Joyce Hall, executive director of financial aid said. “We want to offer information and resources to encourage sound financial practices.”

This year is the fourth annual Indiana Money Smart Week. Money Smart Week courses are being held across Indiana, Illinois, Iowa, Michigan and Wisconsin. Events are sponsored and coordinated in part by the Federal Reserve Bank of Chicago.

Free-Credit-Reports.com offers comprehensive credit information

2009-10-13T03:43:25Z

Free-Credit-Reports.com is a Web site designed as a consumer hub for all credit needs. The site offers information for small businesses, large corporations and individuals. It offers information on credit reports, applying for credit cards, cash cards, prepaid cards and managing credit expenses for businesses.

“This Web site aims at updating the customers with the latest information about everything related to their credit report, ratings and identity theft,” Roman Shteyn, owner of Free-Credit-Reports.com said. As a one-stop-shop, this portal will serve the users with handy facts.”

The Web site is a central hub with links to a wide variety of credit and financial services, including credit reports, tips on preventing identity theft and applying for credit cards.

American Express launched Reward card with triple and double reward points

2009-10-12T19:44:21Z

American Express announced the launch of its Premier Rewards Gold Card, which provides single, double and triple rewards points for a variety of daily purchases. The card is for U.S.-based customers and offers triple Membership Rewards points on airfare purchases, double points on all gas and grocery purchases and one point for every dollar spent on all other purchases.

Card members will earn 15,000 bonus points when they spend over $30,000 on the card in a calendar year. The $175 annual fee is waived for new card members the first year.

“We’re delighted to expand the Charge Card family of products with an even richer card that allows card members to earn Membership Rewards points faster,” Christopher Fred, vice president, Gold Card, American Express said. “The Premier Rewards Gold Card is an especially attractive option for consumers who love to travel since it offers three points on airfare purchases - more than airline rewards cards typically offer - and card members earn triple points on all airfare purchases, not just with one airline.”

The Premier Rewards Gold Card is a part of American Express’ focus on its charge card line as consumers shift away from credit and high interest rates. Charge cards do not carry a revolving balance, but must be paid in full at the end of each billing cycle. Charge cards offer consumers the convenience and the rewards of using credit without many of the costs.

Many websites offer consumer credit information and credit scores

2009-10-12T19:39:06Z

As the economy fell so did many consumers’ credit scores as they increasingly turned to credit without being able to make minimum payments. As these consumers try to rebuild financial strength and stability they seek information about their credit scores. Web sites such as credit.com help consumers to understand the information that comes with a credit check.

Consumers are legally allowed to check each of the three major credit reporting agency scores once each year for free. But the information in the reports can be confusing and hard to find. Credit.com offers a credit report card that grades each part of the overall score into sections, such as available credit and inquiries. Grades from A to F are assigned to each section of the report.

The Web site also offers advice to improve a credit score based on the consumer's areas of strengths and weaknesses.

Bank of America pledges to not raise credit rates ahead of new laws

2009-10-08T01:44:35Z

Bank of America has announced that the company will not hike credit card interest rates or fees to preempt the new industry reform laws that take effect in February. Lawmakers had recently proposed a change to the legislation to make the new laws effective Dec. 1 rather than Feb. 1, as consumers have complained about banks increasing interest rates and lowering limits in reaction to the new laws.

“[The decision not to raise rates] is consistent with other consumer oriented policy changes we have made recently” Betty Riess, Bank of America Spokeswoman said.

Sen. Chris Dodd of Connecticut is urging other banks to follow Bank of America’s lead in freezing rates and not imposing new fees before the law takes effect.

“This Congress has made it clear that abusive card practices are no longer acceptable,” Dodd said.

Discover Zip payment devices to be accepted at Hess

2009-10-08T01:36:43Z

Discover announced that gasoline and convenience-store retailer Hess will now accept Discover Zip payment devices at more than 870 locations in the eastern United States by the end of this year.

Discover Zip is a quick payment option allowing customers to make purchases simply by touching the device on a Zip reader. The Zip can be issued on a bankcard or small key chain, similar to other quick payment systems. But the Zip has an additional feature for added convenience. Zip can be issued as a small adhesive card that can be attached to a variety of personal items of the customer’s choosing. Customers can attach them to whatever item is most often at hand to reduce the number of items they have to carry such as a cell phone, PDA, or iPod. The Zip is considered a more secure payment option since the customer never has to hand the card to a merchant to process the transaction.

“Customers value the flexibility and control that Zip payment devices offer,” Farhan Ahmad, general manager of Prepaid and director of Emerging Payments said. “Merchants and issuers also appreciate the point-of-sale efficiencies afforded by the ZIP technology. It’s a win-win for those on both sides of the cash register.”

Retailers expect weak holiday sales as customers reduce credit spending

2009-10-08T01:32:35Z

Holiday sales typically make up almost half of merchants’ annual revenues, but with weak customer credit spending they are preparing for a bleak fourth quarter. Holiday sales are expected to drop one percent this year as consumers put away credit cards and spend less on extravagant gifts and home decorations.

Many consumers don’t like to rely on credit cards,” Ellen Davis, National Retail Federation spokeswoman said. She blamed this shift in customer spending habits on the ongoing credit crunch, which is leaving consumers with little available credit or increasingly more expensive credit as interest rates rise.

Consumer newsletter serves as personal financial adviser

2009-10-07T03:25:49Z

Consumers are in greater need of financial advice as personal finances get more complicated. Yet many consumers cannot afford, or do not want to spend money on a personal financial adviser. Consumer Reports Money Adviser, a monthly newsletter published by Consumer Union (the same nonprofit group that publishes Consumer Reports magazine), offers consumers a broad range of financial topics, planning and advice at an affordable price.

The newsletter is available by subscription and delivers sound financial advice and insight into many common issues such as paying off credit debt, saving for retirement and budgeting wisely.

The nonprofit newsletter is independent with unbiased expert advise from those with nothing to gain or lose from the consumers' actions. Consumer Reports Money Adviser does not accept outside financial support or advertising in its effort to provide unbiased financial advice.

Prepaid cards carry high costs

2009-10-07T03:21:17Z

Prepaid cards are an increasingly popular option for consumers with poor credit or who cannot get credit. Prepaid cards have no credit check and are touted as being safer than cash while offering the same convenience as credit or debit. Prepaid cards are linked to an account to allow for ATM cash withdrawals, direct deposit and bill pay. But the convenience and ease comes with steep costs.

The fees associated with prepaid cards vary by issuer but range from $1 charges for customer service calls, $1.75 for ATM withdrawals, $.50 for each purchase made, $9 activation fee and $25 shortage fees if a consumer spends more than is available on the card. These fees slowly drain away finances from consumers who are often the most financially unstable.

“It’s a very expensive way to bank,” Jean Ann Fox, director of financial services at the Consumer Federation of America said.

Prepaid cards are currently exempted from the regulatory laws governing the banking and credit industries. The exemption allows unrestricted fees and high costs associated with using prepaid cards. Congress has asked industry regulators to determine if prepaid cards should have the same protections extended to debit and credit cards.

Debit card scam uses text to get card information

2009-10-06T03:00:03Z

Suffolk County, New York investigators warn of a debit card scam in which credit union members are sent a text or voice message advising them their debit card has been deactivated. The union member is then told to call a phone number and provide account numbers and PIN’s to reactivate the account.

The scam has targeted several credit unions including Suffolk Federal Credit Union and Island Credit Union. Consumers who have received a message asking for card information should contact their financial institution immediately to prevent fraudulent charges.

Consumers should know that financial institutions will never contact a customer via mail, email, phone or internet to request a customer PIN and account number.

Avoid scams and credit card theft by pursuing debt-reduction options

2009-10-06T02:56:22Z

Minnesota Attorney General Lori Swanson is fighting back against scam artists trying to benefit from consumers' financial struggles. Swanson filed three lawsuits against operatives posing as credit negotiating firms that help lower credit card interest rates, reduce payments and reduce balances. The scams charge customers exorbitant fees to contact credit issuers on behalf of the consumer. Consumers can negotiate the same changes themselves.

Swanson is warning consumers that high-pressure sales pitches - or offers that sound too good to be true - are signs that a debt settlement company may not be legitimate. Consumer advocates warn that the high fees these companies request are often higher than payments needed to begin earning more attractive credit terms.

Finance experts suggest that consumers consider one of three options to lower interest rates and payments.

The first is contacting the credit issuer directly and asking for a lower rate. This is usually most successful for a cardholder in very good standing or in danger of a charge-off (the company may have to close the account as part of the agreement to issue lower repayment terms).

The second option is to apply for a hardship assistance program. Many financial institutions are able to temporarily lower interest rates or delay payments for customers who show proof of hardship, such as unemployment or medical emergencies.

The third option is to apply for a debt consolidation loan through a community bank or credit union. Consumers with home equity or other strong collateral can qualify for a low interest loan in order to pay off high interest debt and then make lower payments on the loan.

Bank of America customers get free museum pass

2009-10-02T19:41:17Z

Bank of America is hosting museum admissions for cardholders around the country. Cardholders will receive free general admission into participating museums, zoos, science centers and other cultural centers as part of the "Museums on Us" program.

Bank of America recently added 54 new museums for a total of 74 participating cities in 27 states. Bank of America hosts "Museums on Us" the first full weekend of every month. Customers can sign up for text and email reminders about the program. Participating museums and cultural centers can be found online.

Shell promotes 'Saver' Card as credit card alternative

2009-10-02T19:38:10Z

Companies have traditionally targeted college students as potential customers, but with new credit card regulations many companies are finding alternatives. Shell has introduced the Saver card as a way for students to manage finances without the risks associated with credit cards.

The Shell Saver card acts as a hybrid between a typical gas reward credit card and a debit card. The Saver card is a secured card linked to a banking account acting as a debit card. The card offers a five cent discount on every gallon of gasoline purchased until Dec. 31. Purchases made after Dec. 31 will earn a two cent per gallon discount.

The card has no sign up fees or usage fees. Since the Saver card is linked to a banking account it is a new way for parents to help college students cover expenses without paying interest or risking a student’s credit score.

American Express eliminates monthly fees on gift cards

2009-10-02T03:30:35Z

American Express announced it will eliminate monthly fees on gift cards. This decision goes beyond the legislation requiring limits on gift card fees and is likely to put pressure on competing gift card issuers to remove their fees as well.

“Consumers no longer need to worry about their gift card losing value if they don’t use it quickly,” Alpesh Chokshi, president of American Express’s global prepaid unit said.

Gift cards became popular as many retailers began offering them as a replacement for paper gift certificates to be redeemed with that retailer. Credit card issuers and banks have now begun to offer gift cards with a cash value that can be used like a credit card at any retailer.

“[Now] you know when you buy one of these things and wrap it up and give it to somebody, you are giving them $50 and not something less than that,” Linda Sherry, director of national priorities for Consumer Action said.

Credit card network gift cards are a booming business selling over $1 billion in gift cards annually. Companies made a large profit charging monthly fees on the cards, but now will profit from purchase charges when the card is bought as well as transaction fees when the cards are used.

Americans show progress on credit card debt

2009-09-30T19:19:04Z

Moody’s Investors Service reports that the United States charge-off rate fell to 10.52 percent, down more than .2 percent from June. A charge-off is when a credit card company has given up on recovering the debt, although the consumer is still considered responsible for it. A lower charge-off rate means that fewer people are delinquent on credit card accounts.

The Federal Reserve has also tracked consumer spending habits to find that recent trends show that American consumers are paying down all debts, such as credit cards and auto loans.

Stanford CardPlan turns student ID into credit card

2009-09-30T19:15:22Z

Stanford students now have the ability to use their student ID card as a credit card at various campus locations. The Stanford CardPlan is newly implemented and allows students to charge up to $1000 on the card. The purchases will be added to the student’s university account to be paid at the end of each quarter.

The CardPlan is intended to help students bridge the gap between financial obligations such as textbooks, supplies and financial aid packages that may not have been received.

“I like it because I bought textbooks at the bookstore and I didn’t have to put it on my credit card,” student Linden Moot, said. “It just goes on the bill at the end of the year. It made logistical things easier between me and my parents. My dad loved it because I don’t have to keep track of my receipts and stuff and be asking for money for books all the time.”

Other students think that the new plan is risky since it extends $1,000 in unsecured credit to students without requiring parent approval.

“More often than not, parents aren’t able to approve this spending and are sometimes paying for it,” student Leslie Johnson, said.

Bank of America offers cash back for paying bills

2009-09-30T02:36:18Z

Bank of America is offering its customers a cash reward for paying bills online. Current customers will receive $25 cash back for making two online bill payments within a 30-day period using an existing personal or small business checking account.

Bank of America will deposit the cash reward into the account or mail a check within 90 days of completing the offer requirements. To qualify, customers need to be current Bank of America customers who have not made a payment utilizing Online Bill pay within the last six months.

Fee for credit purchases unlawful

2009-09-29T19:29:36Z

Many convenience stores, markets and coffee shops charge customers a fee for credit and debit purchases under $5. While the fee may seem nominal, it violates merchant card agreements with both Visa and MasterCard. Many merchants charge the fee for small transactions to recoup their costs for credit transactions but both companies require that credit purchases be accepted like cash.

“Always treat Visa transactions like any other transaction,” the Visa Merchant Card Agreement says. “That is, you may not impose any surcharge on a Visa transaction. You may, however, offer a discount for cash transactions, provided that the offer is clearly disclosed to customers and the cash price is presented as a discount from the standard price charged for all other transactions.”

If merchants require a minimum credit purchase amount or charge fees consumers should report them to their credit company.

Improving a bad credit score with new credit

2009-09-29T19:25:28Z

Credit scores can take a dramatic tumble after events such as bankruptcy, divorce or loan defaults. While a strong credit score takes time to rebuild, there are some immediate steps that can be taken to move in the right direction. It may seem counter-intuitive, but taking out new credit can help.

The new credit should be a small manageable loan that can be quickly paid off and all loan terms met. Consumers in need of an improved credit score should save the needed amount before taking out the loan to ensure that the loan can be paid back. Consumers should consider a secured credit card, a large appliance or small bank loan.

By taking out small loans that can be paid back quickly, a consumer can show financial stability and smart spending habits that will boost a credit scores and make the consumer more attractive to other lenders.

Illinois Farm Bureau Visa Card supports Illinois Agriculture in the Classroom project

2009-09-25T19:27:47Z

Members of the Illinois Farm Bureau can apply for an IFB Visa through the Illinois Agricultural Association Credit Union and help support local agricultural programs. A portion of all purchases made using the IFB Visa card will be donated to the Illinois Agriculture in the Classroom program. The program helps to fund classroom resources such as teacher and volunteer training, teacher and county grants and lesson plans about Illinois agriculture.

Last year the program helped to provide education about local farming and agriculture to 500,000 students.

The IFB Visa has no annual free and a low variable interst rate based on the U.S. prime rate.

Citi PremierPass Elite MasterCard offers 20,000 bonus points

2009-09-25T19:23:48Z

The Citi PremierPass Elite MasterCard is offering new customers 20,000 reward points. New card members who charge $600 in purchases within the first three months of activating the card will earn the bonus points.

Points can be redeemed for flights on any airline with no blackout dates. Points are also redeemable for discounts on hotel stays, retail gift cards, electronics and other merchandise. Card members can also get complimentary companion airline tickets for some qualifying purchases.

Card members will also earn two points for every $1 spent at supermarkets, drugstores, gas stations, commuter transportation and parking merchants. Additional points are rewarded for every dollar spent on other purchases; 1 point for each mile flown on any airline and 1 point for every mile flown by anyone with a ticket purchased with the Citi PremierPass Elite MasterCard.

Online banking over takes branches in popularity

2009-09-25T02:32:25Z

A recent survey from the American Bankers Association revealed that customers preferred online banking to any other method of transactions. Using the Internet to complete transactions was the favorite of all age groups under the age of 55. ATM popularity fell in all age groups.

TowerGroup, a financial services research company, projects that through the year 2012 the number of online banking users will grow at a compound annual rate of 20 percent.

In an effort to attract new customers, many companies are updating and improving their online banking sites. Discover Bank relaunched its Web site in March with improvements that include an online application that takes less than four minutes to finish.

Consumers have made it clear that online is the future of banking and companies are listening.

"Most people these days are going to the Internet when they want to find a company and an interest rate that's attractive," said David Nelms, Discover Financial's CEO.

Guaranteed qualification for prepaid MasterCard from AchieveCard

2009-09-24T02:42:53Z

The prepaid MasterCard from AchieveCard offers 100 percent approval for customers, offering consumers a valuable financial tool. The prepaid card is an alternative for consumers who have struggled to qualify for a traditional credit card or for consumers looking for the structure that a prepaid card offers.

A prepaid card is accepted like a traditional MasterCard but the cardholder can only spend the money that they have deposited into the prepaid account. This prevents overspending and debt.

The first time a cardholder loads money onto the account is free and AchieveCard has over 50,000 retail locations to add funds to the account. Funds can also be added through free direct deposit.

The AchieveCard also offers automated online bill pay for more money management tools.

Bank of America changes overdraft fee structure

2009-09-24T02:38:57Z

Bank of America is introducing a new overdraft fee policy to take effect October 19. The new policy comes as the industry faces criticism for practices that are considered excessive and harmful to customers.

Bank of America’s new policy places a cap on fees that penalize customers overdrawing accounts. The move reverses a rise in fees earlier this year. The bank will no longer charge an account overdraft fee on an account overdrawn by less than $10 in one day. If the account isn’t balanced within five days the bank will then charge a $35 fee.

The bank is also placing limits on the number of overdraft fees charged to an account in a single day. The bank lowered the number of fees to four per day, reducing its policy of 10 fees per day.

The changes also allows customers an opportunity to opt out of the overdraft program. Opting out of an overdraft program under current policies is possible only in very limited circumstances, according to Anne Pace, a Bank of America spokeswoman. After Oct. 19 customers will be able to opt out by visiting a local bank branch and asking to have overdraft purchases denied.

Chase introduces new card options for small businesses

2009-09-24T02:04:28Z

Chase is introducing a new line of business cards called “Ink from Chase.” The line includes a charge card, Ink Bold, that must be paid in full each billing cycle. Ink Bold has no interest charges and is the first charge card being marketed to small business owners.

“The new cards are an attempt to provide more financial flexibility to small business owners who have traditionally relied on checks for most of their spending,” Mike Nagle, Chase card services general manager said.

The other cards in the line include: Ink, Ink Cash and Ink Plus. Each card offers a variety of benefits for small business owners ranging from no annual fees, low interest rates and a broad spectrum of rewards.

MasterCard and Women’s World Banking create center for leadership

2009-09-23T02:48:18Z

The MasterCard Foundation and Women’s World Banking announced the creation of a WWB Center for Microfinance Leadership. WWB is a global network of microfinance institutions and banks that are dedicated to the economic empowerment of low-income women. The MasterCard Foundation has donated $3.1 million to support the center.

The WWB Center for Microfinance Leadership will work with the Aresty Institute of Executive Education at the Wharton School on the campus of the University of Pennsylvania to create educational programs to help create new leaders in the microfinance industry.

“The cultivation of experience and diverse leadership in microfinance must be a priority in order for the industry to reach its full potential,” Mary Ellen Iskenderian, president and CEO of WWB said. “Strong leaders lead to stronger, more efficient institutions. Working together, WWB and The MasterCard Foundation will create a resource for leadership development in microfinance that will shape the next generation of successful managers and visionaries.”

The Center plans to offer leadership programs including: Women in Leadership, Advanced Leadership and on-on-one coaching for leaders selected to have the most potential to create change. The first Women in Leadership is planned for Jan. 2010 in Bangalore, India.

“The MasterCard Foundation believes that strong leadership will drive innovation and growth in the microfinance sector,” Reeta Roy, president and CEO of The MasterCard Foundation said. “This Center will develop leaders who will be at the forefront of creating new products and services to meet the needs of the poor.”

Free debt reduction guide helps consumers find their own debt relief

2009-09-23T02:43:30Z

Web Credit Advisors has written and published a 60-page guide for consumers to manage their own finances and get out of debt. The guide “How to Negotiate and Settle Your Own Debt: The Private Self-Help Way to Get Yourself Out of Debt” is given away for free on the company's Web site along with other free financial service tools.

“Many families are sinking in debt and without this lifeline they’ll drown,” Robert Schaublin, president and CEO of WebCreditAdvisors.com said. “This book can help consumers cut what they owe and negotiate better terms so they can retire the debt and sleep at night.”

The book was written by former collections agents and debt consolidators to offer consumers an insiders’ perspective and advice of the debt collections industry. The book helps consumers accurately assess their financial situation and then choose the best options to debt reduction. The book also offers strategies to effectively negotiate with creditors. Readers will also get answers to many frequently asked questions, instructions on negotiations and sample letters to use when contacting creditors.

“We offer hope and an exit strategy,” Schaublin said.

Some grocery stores no longer accepting checks

2009-09-23T02:37:44Z

Whole Foods Market and Fresh & Easy Neighborhood Market have decided to no longer accept checks at checkout. Grocery stores have long been a place to cash payroll checks and personal checks for cash, as well as payment for groceries. Today, those services are no longer cost effective and rather contribute to rising food costs.

Fresh & Easy Neighborhood Market, a California grocery division, will no longer accept checks at any of the 70 California locations.

“We keep our systems as simple as possible, keeping prices low for customers,” Brendan Wonnacott, a Fresh & Easy spokesman said. “We do accept cash, credit and debit cards and also have an ATM in store.”

Whole Foods Market is testing the decision to no longer accept checks at three stores before implementing the decision in all stores nationwide.

“Since most of our customers pay with cash, debit cards or credit cards, we want them to be able to check out as quickly as possible,” Bill Jordan, Whole Food’s regional vice president said. “This pilot program was put in place to see if personal check users would make the switch to debit cards or another form of payment.”

Credit card thieves target veterans

2009-09-20T22:26:44Z

Credit card thieves are revamping an old scam to steal credit card information from veterans. The Department of Veterans Affairs is warning military veterans that phone calls asking for credit card information is fraudulent and not from the VA.

Thieves posing as VA workers are calling to update credit card information for prescriptions and other medical services. The callers claim the VA is changing procedures and now needs the credit card information to process claims.

“America’s veterans have become targets in an inexcusable scam that dishonors their service and misrepresents the department built for them,” Dr. Gerald Cross, the VA’s undersecretary for health said. “VA simply does not call veterans and ask them to disclose personal financial information over the phone.”

Cross explains, “The VA has not changed processes for dispensing prescription medicines. Nor has VA changed its long-standing commitment to protect the personal information of this nation’s veterans.”

Alexandria residents offered profitable financial decisions workshop

2009-09-21T00:11:40Z

The city of Alexandria, LA offered its residents a workshop to support education regarding making financially profitable choices and strengthening credit. The workshop was sponsored by Alexandria’s project ENABLE (Educating Neighbors About Bettering Life for Everyone). April Gomez, director of credit counseling for Pelican State Credit Union provided the presentation on credit reports and financial planning.

Gomez's presentation included the basics of understanding credit scores, tips on improving a credit score and the benefits of improvement. Gomez advises taking advantage of free credit reports. Consumers are entitled to one free credit report each year from each of the three major reporting agencies, yet many consumers don’t check their credit score.

Gomez also recommends planning ahead for major purchases such as buying a home.

“If you feel like you have some problems, it’s going to take you at least a year to get them right, maybe two years,” Gomez said.

She also discussed the consequences of missing credit card and other loan payments. Many consumers reach a point where they can no longer make minimum payments and simply quit paying. While this action has an immediate negative affect on a credit score, it can be overcome over time.

“If you had some problems in the past, as long as you start paying on time, your score will [improve over] time,” Gomez said.

Chase unveils 'Blueprint' to help cardholders tackle debt

2009-09-21T00:06:52Z

More than 20 million Chase credit cards have been updated with Blueprint - a set of tools to help cardholders control spending and reduce debt. The new program is in reaction to decreased consumer spending on credit cards as they try to lower debts.

Instead of putting away credit cards, Blueprint allows customers to choose which purchases they want to pay off in full, avoiding interest, and which charges they want to pay off over time on a revolving balance.

The expenses that the cardholder chooses to pay off in full each month, such as grocery store purchases, or gasoline, are separated on the statement so that consumers can see how much they need to pay on those purchases plus payments on the account's revolving balance.

Cardholders who choose to keep purchases on a revolving balance can consult with a Chase representative or use online tools to see how much a purchase will end up costing over time. Customers can calculate purchases with a set goal date or regular monthly payments to track expenses. The online tool will also calculate how much a consumer will have due each month to pay off a purchase within the designated time frame.

Blueprint is a free service that also tracks spending trends and progress toward paying off debts during each billing cycle.

Bank of America offers back to Basic Visa card

2009-09-19T03:22:34Z

Bank of America has announced the launch of a new Basic Visa card that offers the convenience of a credit card, but with one basic rate for all transactions. The rate will not change over the life of the account.

“Today, consumers are telling us more than ever that they need products that offer simple and straightforward solutions,” Ric Struthers, Bank of America global card services president said. “For those consumers who just want the basics, our goal is to offer products with features that are predictable, easy to understand and help them manage their finances responsibly.”

The new card will be available online in October. The interest rate on the card is the same for all transactions including purchases and cash advances. The interest rate is the U.S. prime, plus a margin of 14 percent. Rate changes will only occur if the prime rate changes. The card will have no over-limit fee and a flat fee of $39 for late payments.

The card is part of a new simplified suite of cards from Bank of America. Card members will still have the ability to enroll in Bank of America’s Add It Up program, earning cash back rewards for shopping through Bank of America with online retailers.

Barwood taxicabs will now accept credit card payments

2009-09-19T03:17:06Z

Barwood taxis, based out of Kensington, Maryland, will now allow riders to pay by credit card. Riders can swipe their own card via a terminal in the back seat. Barwood taxis are also equipping each vehicle with television screens. The company has installed 200 of its 435 cabs with payment terminals and TV screens so far. The company hopes to have the remaining cabs updated by the end of the year.

Barwood taxicabs will accept MasterCard, Visa, American Express and Discover cards. Barwood will sell advertising for the screens in the cabs and has plans to donate over 60,000 hours of screen time to local nonprofit organizations.

Capital One CEO predicts no credit card growth in coming years

2009-09-19T03:12:58Z

Capital One CEO Richard Fairbank has predicted the credit-card industry will remain static in coming years as de-leveraging measures change the industry. Fairbank thinks the industry is going to see many changes as it restabilizes after a few tumultuous years and many new laws.

“In this era, de-leveraging of the consumer will be a very powerful force,” Fairbank said during a presentation to analysts and investors in New York. He also said that as customers de-leverage by reducing debt, the industry will gain new stability, since customers will be able to make payments on time and lower charge-off rates.

“It’s very healthy to have a de-leveraged consumer,” Fairbank said. ‘We as lenders will be paid through better credit performance.”

As the economy rebuilds, as marked by growth in housing markets and a lowered unemployment rate, the credit industry expects a slightly shrunken credit market as consumers regain financial stability but return to saving and spending within their budgets.

“The difference is that the card business will be flat to shrinking, rather than growing,” Fairbank said.

Finding the right credit

2009-09-15T03:26:30Z

Finding the best credit card can be an arduous task. During a struggling economy, coupled with changes to the credit industry, the search can be near impossible. Credit card applicants need to know what type of credit is best for their needs and where to find it.

The most important step for all credit applicants is to shop around. Researching a variety of credit card policies helps in determining whether an offer is the best one available. The study can also help credit applicants learn what to expect when examining credit terms.

Credit applicants who carry a monthly balance should focus on finding a credit card with the lowest interest rate. Interest is a trap into which many credit customers fall. If switching to a new card, applicants should look for a card with the lowest or zero interest rate for an introductory period in order to pay off as much of the balance as possible.

Credit applicants without a credit history or with very poor credit should consider a secured credit card. A secured credit card is almost a guarantee since the lender requires a deposit - usually equal to the line of credit - to ensure that customers cannot default on the loan. The deposit is refunded when the account is closed or rolled over to a traditional credit card. A secured credit card is usually reported as a traditional credit card and can help to build or rebuild a credit score. Obtaining a reputable credit score enables a secured credit customer to transition to a traditional credit card.

Credit applicants with a strong credit score should consider premium cards, which usually offer the best rewards. Although premium cards sometimes have an annual fee, the rewards accumulate quickly and are more versatile. Still, it pays to shop around. Credit issuers compete for financially stable customers and may agree to waive some fees to earn new business.

San Diego nonprofit offers credit card certification course

2009-09-15T03:22:16Z

The Institute of Consumer Financial Education, based out of San Diego, is offering a new credit education program that will allow those under 21 to qualify for credit.

The course, Credit when Credit is Due, fulfills the new law requirement for credit card customers under 21 to either prove independent financial means to pay for approved credit, have a co-signer or pass a recognized credit education course.

Credit When Credit is Due is an online twelve-lesson program to educate first time credit seekers. The course includes lessons such as budgeting, when to choose credit, understanding credit offers and terms and credit through loans such as auto and home loans.

Amazon.com Rewards Visa card offers instant cash back and rewards

2009-09-14T00:06:00Z

The Amazon.com Rewards Visa card offers $30 cash back on an Amazon.com purchase within the first few days of purchase using the card and double reward points for all purchases made in the first 90 days.

The Amazon.com Rewards Visa card has no annual fee, competitive APR and a variety of reward points for all purchases. Card users will earn three points for every eligible dollar spent on amazon.com, two points at gas stations, restaurants and drug stores, and one point for all other purchases. During the first 90 days after being approved for the card, customers will also receive double reward points on all purchases.

Amazon.com Visa reward points can be redeemed for a wide variety of rewards at different point levels. The first available reward is a $25 Amazon.com gift card for 2,500 points. Customers can select cash back rewards, travel rewards on rental cars, hotels and airfare, or gas station gift cards.

The $30 cash back reward for the first purchase will appear as a $30 credit on the credit card billing statement.

New credit card laws don't fix bad credit habits

2009-09-14T00:14:52Z

Credit card users are granted a number of protections under new laws and regulations associated with the Credit Card Accountability, Responsibility and Disclosure Act. But consumers with poor credit habits can’t expect those laws to safeguard against their mistakes.

New regulations require a longer notification period before changing interest rates and allows customers to decline the changes and pay off the account at current terms. The longer notification period is meant to allow customers a longer time frame to decide to keep using an account, research new cards or decide to close the account and pay it off under current terms.

“The extra month of notification is good for consumers, but its still our responsibility to notice those changes,” Bill Hardekopf, chief executive of LowCards.com said. “Pay attention to your bill inserts, e-mail notifications or plain white envelopes in your mail.”

New laws also require that cardholders must also receive a bill at least 21 days before a payment is due. Current regulations require only 14 days between the date the bill is mailed and the payment due date, causing customers to inadvertently pay late, incurring fees and fines.

“Don’t look at this as an extra week to wait and pay your bill,” Hardekopf, said. “Keep your regular payment schedule and be appreciative of the extra cushion to make sure your issuer receives it on time.”

Cash back rewards from retailers and Bank of America help customers 'Add It Up'

2009-09-14T00:11:05Z

Bank of America’s new Add It Up program offers customers cash back on purchases made using Bank of America credit or debit card. The program allows registered Bank of America customers to shop at registered retailers to earn additional cash back on each purchase in addition to retailer discounts and credit or debit card rewards.

Customers sign in and select a retailer through the Add It Up Web site. Customers must purchase items with a registered Bank of America credit or debit card. The cash back earnings from Add It Up purchases are credited to the account. Some retailers accept Add It Up transactions in-store as well as online.

Registered retailers are sorted online by category including: apparel, books, electronics and computers, home and garden, services and travel among others. The cash back reward varies by retailer, but customers can earn up to 20 percent on some purchases.

There is no fee for Bank of America online banking customers to register for the Add It Up program. Customers must remember to access the Add It Up retailers through the Bank of America Web site in order to receive qualifying cash back.

HSBC Debit MasterCard rewards online payments with $50 banking bonus

2009-09-13T23:56:43Z

HSBC customers with an online savings account will earn $50 by opening an online payment account and making three HSBC Debit MasterCard purchases by Oct. 31, 2009.

Customers must have opened an online savings account by Sept. 8, 2009. The $50 banking bonus will be deposited into the online payment account by Dec. 31, 2009

The HSBC Debit MasterCard comes with PayPass for added convenience. The card has no transaction fees and no annual or monthly service fees. The card also comes with free access to Personal Internet Banking.

Shell MasterCard cash back rewards decrease

2009-09-13T23:35:28Z

Citi and Shell announced that the co-branded Shell MasterCard will reduce cash back rewards on fuel purchases from 3 percent to 1 percent. The card is no longer being issued and Shell hopes to transition to a customer loyalty program rather than credit card rewards programs.

The card previously offered one percent cash back rewards on all other types of purchases; customers will now receive .25 percent cash back.

The new customer loyalty program, Shell’s Drivers Club, is similar to an airline reward program. It doesn’t matter how the fuel is purchased, but club members will earn reward points for all fuel purchases. Points are accumulated and can be redeemed for fuel vouchers, or at more than 100 retailers selling electronics, home décor, clothing and jewelry.

Local banks offer advantages over national banks

2009-09-13T23:26:41Z

National banks have long been considered to have an advantage by being able to offer more services at lower costs. But new banking and credit laws are making small, local banks more attractive.

Many small local banks did not get into risky loans and are staying profitable at a time when larger banks are struggling with loan defaults and credit card charge-offs. Smaller banks aren’t struggling to cover bad loans and can afford to offer more competitive loans and card terms.

Consumers may find it easier to qualify for a loan or second mortgage at a smaller local bank. Community-based banks have more to gain if a small business is successful or if the local housing market is growing. They also may have more information about the area that help them offer attractive loans from which large banks might walk away from.

Also, local banks usually offer better, more personal customer service. While small bank customers contend with ATM fees when traveling, the level of customer service compensates for the travel inconvenience when there is a need to talk to an account manager. Customers are more likely to get positive help when talking to someone in person who has the authority to make changes rather then being shuffled along the phone list until the right department is available.

Stealing identity is not always about stealing money

2009-09-12T15:25:48Z

Many people mistakenly believe that they aren’t at risk for identity theft since they don’t have many financial assets to steal. But credit card thieves aren’t just looking for money or access to credit cards.

The identity of a poor college student isn’t much different from the identity of a wealthy business owner. Personal information can be used to apply for new accounts. A social security number and name can help create a new identity for a thief or used for something as simple as receiving mail.

Regardless of the amount of financial assets a person possesses, taking steps to guard against identity theft is important.

Don’t use easily guessed passwords for online accounts or PIN numbers. Shield the terminal when entering a PIN in public. Have mail delivered to a secure mailbox or a post office box and regularly monitor your credit history to be alerted of fraudulent charges on new accounts.

Children need financial education before receiving credit cards

2009-09-12T04:32:33Z

New credit card laws taking effect in February will change the requirements for those under 21. The law aims to curb the credit card industry's targeting of college students - a demographic group that tends to quickly become submerged in credit debt without income. Despite the new legal restrictions for under-21 shoppers, finanical lessons are important for adolescent consumers.

A survey by student lender Sallie Mae found that 84 percent of college students have credit cards, and more than half have four or more cards. The average balance on student credit cards is $3,130. More than 75 percent of college credit card users carry a monthly balance and more than 60 percent are surprised at how high their balances are.

New laws will require parents to educate children before co-signing on a credit card.

Co-signers are responsible for the card and carry the risk of account mismanagement, which can harm their credit score. Co-signers should be confident that they know the financial maturity of the cardholder. An alternative to a credit card might be a debit card, or a prepaid card that can’t be overdrawn.

Parents might also consider adding a child as an authorized user on their own credit card. Authorizing an adolescent as a user will give them a card with their name on it while providing parents with complete access to the account to monitor spending.

Choosing the right credit card is also important. Young cardholders should also be taught to consider annual fees, card usage fees, minimum payments and interest rates. Signing up for automatic reminders can assist adolescent consumers with managing their accounts.

More credit card companies advertising premium cards

2009-09-12T04:28:11Z

After a dramatic decrease in credit card mailings, credit card companies are responding with a new tactic. They are heavily marketing to more affluent consumers with premium credit cards. The move is a part of a larger effort to attract the best customers with the most financial stability and best credit history.

“Credit card companies are competing to attract people with high scores and big spending habits,” Andrew Davidson, senior vice president of Mintel Comperemedia said. “Because premium credit cards often have high associated fees and low risk, issuers see them as an excellent way to restore profitability in today’s economy.”

While the marketing is currently directed at the most attractive customers, industry analysts say it is only a matter of time before the offers begin trickling down to all consumers.

Retailers seek end to storing customer credit card data

2009-09-12T04:24:04Z

Credit card companies currently require retail merchants to store credit card data from purchases. They are also required to invest heavily in technology and other safety measures to protect the credit information from data thieves. Now retailers are questioning why it needs to keep the information in the first place.

The National Retail Federation is asking the Payment Card Industry Security Standards Council to explain why credit card companies want retailers to retain customer's credit card account information.

“Instead of keeping reams of data,” David Hogan, CIO of the NRF wrote, “retailers could store just the authorization code given at the time of sale, along with part of the receipt; stuff no data thief could possibly want or use. With no credit card data to steal, hackers would look elsewhere. As for merchants, they’d still retain enough evidence of a valid transaction to serve their customers, such as by processing returns.”

The PCISSC said that the requests need to be placed with individual card companies. The council added it would respond to the NRF after reviewing the requests.

Bank of America names first consumer policy executive

2009-09-11T03:10:33Z

Bank of America Corp. named Andrew Plepler as the company's first consumer policy executive. The new position was created in an effort to connect lenders and advocacy groups that have criticized credit card fees and home loan modifications.

Plepler, 48, began working for Bank of America in 2003. He was president of the bank's philanthropic foundation before being selected to lead the consumer policy division. Plepler has also worked for Fannie Mae Foundation and was a trial attorney for the tax division of the U.S. Department of Justice.

"I'll be an entry point to make sure that the president of credit cards and other business heads get a complete view of what some of the hot-button issues are for community advocates," Plepler said in an interview. "This shows we have an authentic interest that the views of others will be considered."

Bank of America is the leader of U.S. bank deposits and ranks second in mortgage lending behind Wells Fargo & Co. and second in credit card lending behind JP Morgan Chase & Co.

How to prevent credit card limit reductions

2009-09-10T04:57:09Z

Many consumers are seeing credit card limit reductions as card issuers try to protect themselves in a changing economy. But there are steps that cardholders can take to prevent card limit reductions.

Customers who consistently pay the minimum amount due may raise red flag warningsfor card issuers during checks of account payment histories. This behavior may signal that the cardholder is struggling financially and relying on more credit then they can repay. Paying more than the minimum amount due each month is a responsible habit that helps demonstrate financial stability.

Another warning for credit issuers is late payments. Tardiness is also another sign of financial struggles. Even one late payment can result in a reduced credit card limit, as credit issuers try to recover from record high defaults. Double check billing statements for the due date and make sure payment is received and processed before that date.

Make the occasional big purchase. Credit issuers give credit to consumers who use it. Making the occasional big ticket purchase and then paying it off quickly shows responsible credit use and the need for a higher credit limit. Credit issuers want to give credit to consumers who use it responsibly.

Elvis Presley Affinity Rewards card to be released

2009-09-10T04:53:38Z

In a joint efford, Elvis Presley Enterprises and CardPartner will release a new Elvis Presley Visa affinity Platinum Rewards credit card. A majority of the proceeds from the affinity card will benefit the Elvis Presley Charitable Foundation. The new card allows Elvis fans to proudly display their dedication and support the charity.

The Elvis Presley Charitable Foundation is a separate, philanthropic organization that was created in 1984 to honor Elvis' dedication to community service. It supports many foundations and scholarships in Elvis' name, as well as St. Jude Children's Research Hospita.

A focus group of Elvis fans worked together to create five card designs. Each card features a rare picture of Elvis at Graceland.

“We receive numerous requests for an Elvis credit card,” Carol Butler, vice president of worldwide licensing for Elvis Presley Enterprises said. “This allows us to offer this new product to Elvis fans while continuing Elvis’ charitable contributions.”

The Visa Rewards card has no annual fee and offers a zero percent APR on all purchases and balance transfers for the first six months. Cardholders will earn reward points for purchases at hundreds of participating merchants and up to 15 bonus points for each dollar spent with select merchants. Points can be redeemed for airline tickets, memorabilia and other merchandise.

Keys to preventing bank overdraft fees

2009-09-10T04:47:48Z

Debit card overdraft fees can hurt consumers who are already struggling financially. Banks allow debit card transactions that exceed available funds to successfully process as a courtesy to consumers and avoid embarrassing situations. Yet, a single banking fee could push an account into overdraft. A snowball effect can occur if there are more overdraft purchases. Some planning can help consumers avoid these fees.

The first step is to avoid depleting account funds. It is good banking practice to keep a cushion amount in each account just in case of emergencies. This amount should not be considered part of available funds. It only serves as a safety net for times when a check might clear the account before deposited funds are available or when money is especially tight for a day or two.

Another important step in avoiding overdraft fees is to contact the bank and request removal of overdraft protection. This will result in denial of attempted transactions if there are not enough funds available. Some banks may block only debit card overdraft purchases. Other may put a block on checks or electronic payments set up through the account as well. And some banks will not cancel overdraft protection.

Consumers who chronically overdraw accounts may find it helpful to withdraw a budgeted amount of cash each week to use for purchases. It is a good idea to leave the debit card at home. When cash is depleted for any given week, stop purchasing. Withdrawing only the budgeted amount of cash each week builds financial discipline and protects against overdrawing the account.

Finally, ask the banking to set up an alert system on your account. Some banks offer e-mail alerts when a balance reaches a certain level. Other banks will send a text message or automated phone call to alert customers of low funds. Take advantage of any notification the bank offers to monitor the account status and prevent accidental overdrafts.

Discover More card offers 5% cashback bonus

2009-09-09T03:39:33Z

Discover is offering 5 percent cashback bonuses on certain purchases from October through December. The Discover More card promotion is a cashback bonus on the purchases that consumers typically make all year long. The purchase categories include travel, gas, groceries and restaurants.

The Discover More card offers a zero percent introductory APR, zero percent purchase APR for six months and no annual fee.

Is your debit card the right choice?

2009-09-09T03:18:47Z

Debit cards are quickly becoming a major revenue source for some financial institutions. Mismanaged accounts by consumers can result in mounting overdraft fees that can lead to financial disaster.

Some members of Congress are noticing that the increasing overdraft fees - as high as $35 per transaction - can cause financial harmful to low-income and elderly consumers who may not know they are being charged these fees.

Financial institutions stress that this circumstance can be avoided if consumers remain aware of what is in their checking accounts and do not spend more than the available funds.

Credit card users should re-examine choice of credit provider

2009-09-09T03:05:01Z

Many credit card users have used the same credit card for years. While having one card with a lengthy history helps boost a credit score, there might be benefits to shopping around for the best card options. As credit card regulations change, issuers are changing card rates, fee structures and limits.

“So many things have been changed in the fine print that you need to catch up with what your card issuer is doing now,” Gerri Detweiler, advisor for Credit.com said.

Many credit card issuers are making across sweeping changes, such as discontinuing late fees, charging higher fees for late or missed payments or increasing interest rate. Under new legislation consumers have 45 days to respond to changes. No response is considered an acceptance of the new terms. Credit cardholders can decline the changes, pay off the balance under current terms and close the account.

Credit users should carefully examine all aspects of their current credit agreement including interest rates, annual fees, over limit and late payment fees, as well as rewards. In many cases consumers are better off maintaining a current credit account than shopping for a new one. Consumers also have the option of negotiating with their current credit issuer to change rates or fees to match a different offer.

Other items to take into consideration when looking for credit card options include balance transfers, introductory interest rates, card rewards, credit limits and fee structures.

If you go with a simple cash-back card, you get more bang for your buck and you have more control,” Curtis Arnold, founder of CardRatings.com said. “Cash is king in this environment.”

Chicago train will now accept credit cards

2009-09-08T03:57:43Z

Chicago's Metra train is rolling out its new Web site, and accepting credit cards to purchase train tickets.

The Web site's new modern design promises to be user-friendly and allow commuters to create online accounts for the purpose of ordering tickets and creating custom train schedules.

The upgrade is in response to pressure from lawmakers and customers to update the train's ticketing system.

Lower credit limits can lead to lower credit scores

2009-09-06T16:37:21Z

Paying off credit balances each month can be potentially harmful to a consumers credit score, despite conventional wisdom that advises cardholders to pay down balances quickly to maintain healthy credit scores.

When credit cardholders pay balances off completely each month they don’t pay any interest, which ultimately doesn’t benefit lenders who profit from interest on credit balances. Lenders will often lower the credit limit of this type of borrower in response.

When a credit limit is lowered and the borrower does not change spending habits, a greater percentage of available credit is used. This makes the borrower falsely appear over extended.

"People probably shouldn't use more than 50 percent of their credit limit anyway'" Consumer Credit Counselor Jackie Urban said. "If you have a credit card you should probably stay 45 to 50 percent because that's where you get most of the points. Normally there are things you can do within a three- to six-month period of time for credit histories to recover; maybe restricting your debt, maybe talk to a local lender or even call the lender themselves."

Credit Card companies aren’t required to notify you if they lower your credit card limit so check statements closely for any changes.

Debit card rewards not equal to credit

2009-09-04T03:34:03Z

Debit cards are slowly becoming the card of choice for American consumers. Consumers are scaling back spending and trying to reduce debt by avoiding credit cards. Debit card companies are taking notice and many are offering reward programs mimicking credit card reward programs as further incentive. But these reward programs offer a lot less reward for a much higher cost.

Various debit card rewards programs offer competitive rewards from cash back, travel rewards and merchant points but the earning power is a lot less than a credit card. On average, a consumer can expect to earn about $100 for each $10,000 of purchases made with a credit card rewards program offering cash back. To earn the same $100 with an average debit card cash back reward the consumer will have to spend $20,000.

This discrepancy exists because credit card issuers make much more money from the interest charges on purchases than debit card issuers make on fees associated with debit card use. Credit card issuers can afford to be more generous with their rewards.

Consumers who use debit and credit cards wisely will get more purchasing power for each dollar spent. A consumer who spends within their budget and pays off credit quickly each month can avoid high interest fees and receive high rewards for each purchase.

Paying off credit balance in full each month may lower credit limit

2009-09-04T03:30:08Z

Consumers are trying to keep accounts as healthy as possible, as credit companies tighten restrictions and lower consumer limits in response to a struggling economy and new legislation. Many cardholders are paying off accounts ahead of the billing cycle to ensure they maintain a strong account history.

By being proactive, cardholders are also paying down account balances before interest is accumulated on the fees. Interest is one of the primary ways that credit card companies make money on accounts. A cardholder who uses the card and pays the account early, in full each month makes the company no money.

Some card issuers see a no balance account as a bigger liability than an overdrawn or late account. In response, some cardholders will see their credit limit drastically reduced. While a reduced credit limit has been shown to not dramatically lower a credit score, if at all, it is an inconvenience.

Cardholders who have their credit amount lowered can choose to stay within the new limit and reduce debt spending, or they can contact their card company and ask for a higher credit limit. Credit companies are most likely to issue a higher credit line if the consumer has a specific purchase that the credit limit increase is necessary, since the company assumes it will make a profit on that purchase.

Wal-Mart to pay employees via direct deposit or MasterCard debit card

2009-09-04T03:14:41Z

Wal-Mart employees will no longer receive a paper paycheck. The retailer announced it will begin paying employees via direct deposit into a bank account or depositing into a MasterCard prepaid debit card account. The new payment plan has already started for some employees and will be phased into all stores over the next few months.

Wal-Mart explained the choice as both a financially and environmentally sound decision for the company. It concluded that eliminating paper checks will save the company 257,000 pounds of paper annually.

“Electronic payroll is the right choice for our associates, our company and the environment,” Tom Schoewe, executive vice-president and CFO for Wal-Mart stores, Inc., said. “It provides our associates with fast, convenient and safe access to their pay. The program’s ability to reduce paper usage is right in line with Wal-Mart’s commitment to eliminate waste wherever we can.”

While some pre-paid debit programs are criticized for excessive fees, others are seen as being consumer-friendly by eliminating overdraft fees. Most banks honor a purchase made over the available funds as a “courtesy” to the consumer, but then charge up to $35 for that courtesy. Pre-paid cards do not allow transactions above the amount available in the account.

Wal-Mart says it has negotiated to provide a MasterCard prepaid debit card at the lowest fees possible. Cardholders will have access to online banking and a coordinating checking account and checkbook.

Discover scores well in J.D. Power and Associates satisfaction study

2009-09-03T03:31:13Z

Discover was a customer favorite in many categories of the J.D. Power and Associates 2009 credit card satisfaction study.

The study analyzed six factors of customer satisfaction with their primary credit card. The third annual study found that Discover scored highest in the Interaction Factor and scored second highest overall out of the top ten credit card issuers in the country.

“Discover has always been committed to delivering high-quality customer service that puts card members first,” Carlos Minetti, executive vice president of cardmember services and consumer banking at Discover. “Receiving the highest score in the Interaction factor from J.D. Power and Associates is a reflection of the incredible dedication of our customer representatives who work tirelessly to help our cardmembers achieve a brighter financial future.”

Citi Forward rewards customers for using credit wisely

2009-09-03T03:24:18Z

Citi has launched Forward, a new credit card that will reward cardholders for healthy spending habits and maintaining a good credit history. Forward offers a variety of rewards including: lowered interest rates, additional reward points and traditional “thank you” reward points.

One of the most valued rewards is a lowered interest rate for good credit habits. When cardholders make purchases, stay under their credit limit, and pay at least the minimum payment on time for three consecutive billing cycles the cards' APR is lowered a quarter of 1 percent. Cardholders are eligible for up to eight interest reductions.

Forward users will also earn reward points for maintaining a good credit standing. Cardholders will earn 100 points each billing cycle that is paid on time and kept under the credit limit. Five points will be rewarded for each $1 spent on books, movies, music and restaurants. One point is rewarded for each $1 on other purchases.

Forward offers 6,000 bonus points after the first $50 in purchases are made within three months of opening the account and 5,000 bonus points for choosing paperless statements within the same three month period. The card has no annual fee and zero percent APR for the first six months.

Indianapolis Managed Health Care Organization Offers MasterCard Rewards to Members

2009-09-02T04:45:28Z

Managed Health Services, an Indianapolis based healthcare provider is rewarding its members with MasterCard Debit Cards for making proactive healthy choices. Members will be rewarded for having annual physical exams, well-baby and well-child visits, as well as annual health screenings.

Members will receive their rewards on a personalized pre-loaded MasterCard debit card. The debit card can be used at participating stores to purchase health-related items, including CVS, Walmart and local supermarkets. Some locations will accept the debit card for over-the-counter medications.

University announces credit card breach

2009-09-02T04:38:24Z

The security of up to 242 university-funded credit cards has been compromised, the University of Vermont recently discovered. Ann Naylor of UVM Procurement Services said in a statement that UVM is unaware of how the breach occured.

UVM discovered the issue when the school was notified by its bank. UVM was mailed a list of the affected cards, with cardholder names. Many of the names appear on the list multiple times.

As a result UVM has cancelled compromised cards and is in the process of issuing new ones.

American Express urges consumers to 'Take Charge'

2009-09-02T04:32:02Z

American Express launched a major advertising campaign on Tuesday, urging card users to “Take Charge.” American Express is reminding consumers to practice fiscal responsibility with the charge card since it requires the balance to be paid in full each month, a system designed to keep consumers from spending beyond their means.

The campaign launched full-page advertisements in many national newspapers. The ads feature a wallet with a sad face. When the page is turned upside down, the frown turns into a smile. This is the first major ad campaign for American Express’ basic charge card since 2002. Beginning this weekend, the campaign will feature TV ads during the U.S. Open.

American Express is seeking to revitalize interest in its charge card - a response to the first wave of new credit card legislation requiring new notification rules and a drop in consumer spending during the struggling economy.

“Coming out of these tough economic times, we need to refocus on our customers and give them a sense of greater control,” Deborah Curtis, vice president of global advertising at American Express said.

Financial expert writes "A Survival Guide to Debt"

2009-09-01T03:04:52Z

The book, “A Survival Guide to Debt,” authored by financial expert Mitchell Allen of the Debt Education and Certification Foundation, offers straight-forward financial advice that is beneficial to all consumers struggling in the economy. It is especially useful for those who can’t afford professional help with their financial problems.

“One of the points in this book is you are not your debt, and to separate your self-worth from your net worth,” Allen said. His book offers advice to help people make wise financial decisions with a staged guide to getting out of and staying out of debt.

One of the things that Allen discusses in the book is the importance of communication in resolving debt. Many people struggling financially try to simply ignore their debt, but that only compounds the problems. Allen suggests calling creditors and being upfront about the debt and your financial situation. He advises consumers to ask for specific help such as interest rates, payment terms or even a reduced loan amount.

“The banks and mortgage lenders are hurting just like every other American,” Allen said. “They will work with you as long as you work with them.”

Whataburger restaurants now accepting MasterCard PayPass contactless payments

2009-09-01T02:58:35Z

Whataburger restaurants will soon have the necessary equipment and technology to begin accepting MasterCard PayPass.

PayPass is a contactless payment system that allows customers to complete a transaction by tapping the enabled MasterCard or PayPass key fob on the reader. The new system removes the need for customers to hand their credit card to a cashier, creating a more secure payment option.

PayPass terminals will help Whataburger decrease the time a customer spends in the drive-thru line. The PayPass system also does not require customers to sign a receipt for purchases under $25. Although the saved time is small, seconds add up quickly for a restaurant serving long lines of drive-thru customers.

“Busy, quick-service restaurants like Whataburger are the ideal environment for MasterCard PayPass because the benefit of faster transactions at the point of sale translates directly to busy customers who are often on the go,” said Cathleen Conforti, senior vice president of Global PayPass, MasterCard worldwide. “By accepting MasterCard PayPass, Whataburger is taking an innovative step to enhance customer service by increasing throughput at the register and in the drive-thru.”

Some retailers ignore credit card rules

2009-09-01T02:49:11Z

Many retailers ask to see identification when customers pay using a credit card. While the practice is supposed to prevent fraudulent charges, Visa and MasterCard both have rules stating that identification cannot be a requirement to use a credit card. Both companies also have rules that cards signed “See ID” actually invalidate the credit card, rather then protecting the card user.

While both of these practices are thought to protect cardholders from fraudulent charges, they might do more harm than good. Creating a false identification to match the name on a credit card is relatively easy. It is much more difficult to match a signature than a name.

Presenting photo identification also leaves cardholders vulnerable to both identification and credit card theft, since thieves often collaborate with cashiers or other employees with access to credit card information in order to “skim” the information off credit cards and other forms of identification.

All credit cards have a toll-free number printed on the back that consumers can call to report merchants requiring identification to make a purchase.

MasterCard and CyberShift offer integrated expense management solution

2009-08-28T02:37:31Z

MasterCard and CyberShift are providing MasterCard issuers with CyberShift’s Expense Management Automation solution. The new agreement between the two companies will allow MasterCard to offer card issuers, and card customers access to the flexible expense management solution such as travel booking systems, digital receipts filing, hotel folio data and more.

“Given the difficult economic environment, companies of all sizes are looking for easy and cost-effective ways to reduce costs now,” Steve Abrams, group executive, global commercial products for MasterCard Worldwide, said. “By offering an easy-to-implement, feature-rich travel and expense management solution that adapts to business requirements, integrates with existing systems, and can be delivered via Software-as-a-Service, issuers can provide their corporate customers with a solution that will make an immediate impact to their bottom line.”

CyberShift Expense is a system that is touted for its integration with other business processes for ease of use and convenience.

PCI Security Standards Council releases recommendations to prevent card skimming

2009-08-28T02:34:20Z

The PCI Security Standards Council released new recommendations and best practices for retailers to protect against credit and debit card skimming scams. Skimming is a way in which criminals steal credit and debit card data to make purchases electronically. Sometimes the information is stolen via a reader at a point-of-sale terminal. Other times an individual with access to a card will steal the information off the card and pass the information along for a fee.

“Skimming is becoming a widespread problem,” Bob Russo, general manager of the PCI SSC, said. “These are guidelines for what retailers should be looking at. We discuss different techniques for protection those point-of-sale devices.”

PCI includes a risk assessment questionnaire for retailers to self evaluate how susceptible their business is to data skimming. They also include information on education of employees, and prevention of point-of-sale tampering. They suggest writing down all identifying information on a point-of-sale device such as the general appearance, serial number, seals and labels, how many wires of what color and where the connect to. Record the information and check each terminal on a regular basis to make sure the machine shows no physical signs of being tampered with.

Debit cards at greater risk for theft

2009-08-28T02:31:03Z

Consumers are increasingly turning to debit cards, but debit cards are less secure and more attractive to thieves. Many thieves prefer debit cards since they need a limited amount of information and can quickly get cash. Their purchases are then untraceable.

Consumers risk more if a debit card is stolen. Under federal laws, credit card users are only liable for up to $50 if the card is stolen and used fraudulently. Debit card users are liable for up to $500, and if they fail to catch the unauthorized charges within 60 days they may be held responsible for the entire amount.

“If you lose your credit card and you report it, it’s the credit card company’s problem,” Jay Foley, executive directory of the Identity Theft Resource Center, said. “If you lost your debit card and you report it in the same period of time, the transactions that occur from the time the card was lost and the time you reported it are still going to land on your doorstep.”

GreenBank now instantly issues MasterCard unembossed debit cards

2009-08-27T04:38:06Z

Dynamic Card Solutions (DCS), the leading instant card issuer, announced that GreenBank has begun issuing instant MasterCard debit card at the branch level using DCS’ patented Card Wizard software.

GreenBank, based out of Tenessee, is one of the first in the state to offer instant debit cards. Now when customers open a checking account or need to replace a lost or stolen card they can simply come into the branch and instantly receive their new debit MasterCard. The cards are PINed and printed in minutes and are effective immediately.

“Since GreenBank implemented unembossed instant issuance, the customer, merchant and branch personnel acceptance has been great,” said Bill Adams, chief information officer for GreenBank. “Our activation/usage rates and customer service levels have never been better. And, we feel that the ability to instantly issue unembossed, personalized debit cards is a great differentiator that provides a service to consumers that is both innovative and convenient. Instant issuance is a great value-add and we plan on expanding the program in the future to include more branches.”

BofA names former Morgan Stanly executive as new director

2009-08-27T04:34:22Z

Bank of America Corp announced Friday that it would be adding Robert Scully to its board of directors. Scully is a Morgan Stanley veteran best known for his role in advising the government on the bailout of banking giants such as Fannie Mae, Freddie Mac and insurance giant AIG.

Before retiring at Morgan Stanley, Robert Scully was co-president in charge of over seeing the company’s asset management, Discover credit card and merchant banking business.

He will become Bank of America’s 14^th board member after a major shake up following the company’s shareholder meeting. At the meeting, CEO Ken Lewis was removed from his position. Since then, five other directors had left the board.

Bank of America had no additional comment and did not say on which board committees Scully would serve.

Prepaid cards gain popularity but aren’t without fees

2009-08-27T04:32:28Z

As many consumers look for a way to rebuild credit or to get credit in a tightening credit market, prepaid cards are gaining in popularity. But these prepaid cards aren’t without fees of there own as well.

Prepaid cards are a cross between a credit and a debit card. The card is loaded with an amount of money and can then be used to make purchases. Funds can be added to the card at reloading stations.

According to Mercator Advisory group, nearly $4 billion was loaded onto prepaid cards in 2007 and that number is only escalating. But many consumers fail to take in the additional charges on a prepaid card often costing themselves the money they are trying to save.

Consumers Union, an independent, nonprofit testing and information organization tested 18 different, popular prepaid cards. Activation fees for the cards ranged from a low of three dollars to $99 for an “elite” prepaid card. 15 of the cards had monthly fees, although some will waive fees if a direct deposit feature is activated on the card. Some of the cards charged for customer service phone calls and the report found that the cards are not protected under new credit card legislation so the card terms can change at any time.

While the cards come with varying fees and costs associated with their use, they can be a strong alternative for consumers who can not qualify for a traditional credit card. Consumers need to use the same caution in choosing a prepaid card that they use to select a tradition credit card.

Marriott Rewards Credit Cards offer free nights, elite status

2009-08-25T00:16:26Z

The Marriot Rewards Visa card offers a variety of rewards programs for travelrs ranging from families who take annual vacations to the business traveler spending multiple nights away from home each month.

There are three cards in the Marriott Rewards card family, the Marriott Rewards Visa Signature, Marriott Rewards Premier Visa Signature, and Marriott Rewards Visa Business card. Each is tailored to offer the best rewards to fit the type of traveling and vacations the cardholder needs.

Each card offers a free night stay upon account approval and 20,000 bonus points for the first purchase made using the card. From there the rewards vary but include credits toward elite status, reward points for purchases at Marriott locations, rewards for all other purchases, anniversary points, and management reports.

When cardholders redeem points for hotel night stays they can earn additional free nights maximizing the possible rewards for each point earned. Points can also be redeemed toward PointSavers rewards offering hotel rooms at discounted rates.

How credit card legislation helps you

2009-08-25T00:13:13Z

The first phase of the Credit Card Accountability, Responsibility and Disclosure Act become law last week. Here is what that means for credit card users right now.

Credit card issuers are required to give consumers at lest 45 days’ notice of any significant changes in card terms such as interest rates or fees. The cardholder then has the option to decline the change. Those who decline may contine to pay off the card under their current terms but may not use the card for new purchases. The 45 day window then gives the consumer time to find a new credit card to use if they choose to not accept the new terms.

Consumers have at least 21 days’ notice from the time a bill is mailed until the due date before late fees can be assessed. Currently, some credit issuers have shortened the window between mailing a bill and the due date leaving consumers with more late fees.

Credit card holders should expect to see rising interest rates between now and February when the second phase of the act becomes law. Credit card issuers are raising rates now before new laws regulate interest rates more strictly.

Citi mtvU Platinum Select Visa rewards students for grades and paying bills ontime

2009-08-25T00:10:02Z

As a new wave of students start college and being using credit cards, Citi and mtv are offering a platinum select visa card that rewards students for responsible habits. The credit card offers both traditional reward points and student geared reward points.

The card offers 10 reward points for every dollar spent at restaurants, including fast food for students on the go and on a budget, book stores, record stores, movie theaters and video rental stores for the first three months. After the initial three month period cardholders will earn five points for each dollar spent. The card also offers one point per dollar on all other puchases.

The card rewards academics offering up to 2,000 rewards points, twice a year, for a 4.0 GPA. The card offers reward points from 250 for a 2.5 through 750 for a 3.99 for those with less than perfect report cards.

As students build a credit history and financial habits the card rewards good credit use by offering 25 points per billing cycle with the bill is paid on time and the cardholder stays under their credit limit.

Finally, the card offers a 10 percent discount on music and entertainment purchases made at shopt.mtv.com.

The card has no annual fee, zero percent APR on purchases and balances transfers for the first six months for qualifying customers and customizable bill due dates and credit limit alerts.

Some Citigroup accounts getting annual fees

2009-08-25T00:04:28Z

Citigroup is now instituting annual fees on some current credit card accounts. The move comes in reaction to new credit card legislation regulating credit card fee structures.

“We have adjusted pricing and card terms for some customers as part of our regular account review, Samuel Wang, a Citigroup spokesman, said. “These changes also reflect the dramatically higher cost of doing business in our industry as we work to preserve the broad availability of credit.”

Historically, credit card issuers have only charged annual fees on card with generous rewards programs. Now some issuers are shifting to annual fees on all accounts. Citigroup’s structure change is one that will be watched by other credit card companies as the industry experiments with ways to restructure under the new legislation.

Cardholders are being notified via mail of the new annual fees. The cardholder than has a two month window to choose to opt out. Those who opt out may no longer use the card for new purchases, but can pay off balances under current rates and terms. Some cardholders may waive the annual fee if they spend over a minimum balance on the card each year.

Lower card limits not lowering credit scores

2009-08-25T00:01:16Z

As the credit industry adapts to both the struggling economy and new credit industry regulations, many are lowering consumer credit rates. Since a part of a credit score is the debt to credit ration, consumers have feared that these lowered limits are hurting credit scores. Many times the accounts with lowered credit rates are accounts that are still in good standing.

Fair Isaac, FICO credit score maker, has completed a new study looking at credit scores with recently lowered credit rates to see if those fears are justified.

The study examined 24 million consumers with accounts in good standing that had credit limits reduced. The average FICO score was 760. The average credit reduction was $5,100. The group is generalized as having low credit card balances and paying bills on time.

FICO found that only one third of the consumers in the group, approximately 8.5 million consumers, had a credit score reduction as a reaction to the reduced credit limit. The typical score drop was less than 20 points. Approximately 3.5 million consumers had no change in their credit score. The scores for the remaining 12 million consumers in the study had a credit score increase.

Better Business Bureau warns against automated phone calls regarding credit

2009-08-24T23:57:04Z

The Better Business Bureau is warning consumers to be aware of new credit card scams and debt reduction companies fishing for business. People are receiving automated phone calls claiming to be from a credit card issuer regarding lowering payments. When the consumer calls back it is either a credit counseling service looking for business or a credit card thief looking for information.

The BBB warns consumers that the debt reduction companies aren’t offering services other than those that the consumer already can take advantage of by calling their credit issuer themselves.

Consumers need to know to never enter credit card information over the phone. If a consumer is unsure if the call is actually coming from their credit issuer they need to call the issuer themselves using the customer service numbers given with the account.

Radisson Hotels and Resorts alerting travelers of credit security breach

2009-08-24T23:55:16Z

Radisson, a global hotel chain, has issued a public alert about a security breach that left customer credit information vulnerable. The breach happened between November 2008 and May 2009 in some of Radisson’s many properties.

“This unauthorized access was in violation of both civil and criminal laws,” an open letter from Radisson COO Fredrik Korallus says. “Radisson has been coordinating with federal law enforcement to assist in the investigation of the incident. While the number of potentially affected hotels involved in this incident is limited, the data accessed may have included guest information such as the name printed on a guest’s credit card, or debit card, a credit or debit card number and/or a card expiration date.”

The investigation into the security breach is still on going and the company cannot release what locations were involved in the potential credit information theft. Radisson is advising all Radisson guests to carefully monitor credit reports with the credit bureaus, and to place an alert on credit files.

Radisson has worked with Equifax Personal Solutions to provide eligibly Radisson guests with free credit monitoring for one year to guests who enroll by Nov. 18, 2009.

“We wanted to let you know about the incident so that you can take appropriate steps to protect yourself,” Korallus said. “Such as by reviewing your account statements and credit report closely for unauthorized activity, and reporting any unauthorized activity to your credit company.”

Quicken Rewards Visa Credit card offering $30 cash back

2009-08-20T23:08:21Z

Quicken Rewards Visa credit card is now offering new cardholders a $30 cash back bonus on their first purchase. The cash back reward is an automatic credit on the credit card statement.

The Quicken Rewards Visa comes with no annual fee and offers varying rewards from all purchases from software and taxes to gas and groceries. Card holders will earn 5 points for every dollar spent on eligible purchases at Quicken.com, Intuit.com, TurboTax.com and Quickbooks.com; 2 points for every dollar on eligible purchases at gas stations, dining, pharmacies and office supply stores; and 1 point for each dollar spent on other purchases.

Points can be redeemed for cash back, airline tickets and gift cards to popular merchants such as amazon.com, Starbucks, Blockbuster and Exxon Mobile.

Chase introduces Sapphire, a new card with no reward restrictions

2009-08-20T23:05:19Z

Chase introduces Sapphire, a new rewards card offering unlimited rewards without restrictions. Chase hopes the card will attract consumers with high incomes looking for a card offering the best rewards for their spending habits.

“The idea was to take the emphasis off spending and [put it] on reward flexibility,” Sean O’Reilly, general manager of Chase card services, said.

Sapphire offers what Chase calls “Ultimate Rewards”. The rewards program offers one point for every dollar spent on the card, double points on airfare purchased with the Chase travel booking tool and up to ten bonus points for each dollar spent online at Chase Ultimate Rewards Mall. Cardholders will also earn 10,000 bonus points with their first qualifying Sapphire purchase.

The card also offers industry leading travel benefits such as emergency services, accident insurance, trip delay insurance reimbursing expenses such as meals and hotels incurred during a trip delay and lost luggage reimbursement for lost or stolen luggage when the trip ticket is bought with the Sapphire credit card.

The biggest reward the card offers is the lack of restrictions on the rewards. There is no limit to the number of points that cardholders can earn and there is no point expiration. Points can be redeemed for travel through the online travel booking tool and there are no seat restrictions, and no blackout dates.

SonyCard Reward Visa offers $100 card credit with purchase

2009-08-19T17:53:45Z

Consumers in the market for new electronics should consider opening a SonyCard Reward Visa and receiving a $100 card credit with qualifying purchases.

The SonyCard is a rewards card offering 5 points for each dollar spent at Sony Style stores and SonyStyle.com, 3 points for each dollar spent on Sony purchases from authorized Sony retailers and 1 point for each dollar spent on all other card purchases. Reward points are redeemable towards Sony merchandise such as electronics, CDs DVD’s, games and more.

Consumers who open a new SonyCard account will now receive a $100 credit to the account after making a $299 purchase at SonyStyle.com.

Credit Card laws begin changing

2009-08-19T17:50:04Z

The first parts of new credit card regulations will become laws on Thursday, Aug. 19. The new laws will require longer notification periods to consumers before credit card issuers can raise rates and a longer period of time between receiving bills and payments being due.

Beginning Aug. 19, credit card issuers must give cardholders 45 days notice before raising card interest rates. Previously, issuers were only required to give 15 days notice. Cardholders can choose to pay off their account balance at the lower interest rate over time but not continue to use the card for future purchases.

Credit card issuers now have to mail bills 21 days before the account is due rather than the current 14-day period. The new regulation is meant to give consumers more time to make payments and avoid late-payment fees.

These new regulations are only minor changes that are being implemented before most aspects of the act become law in Feb. 2010.

Aentra teams up with edo Interactive to provide simplified gifting

2009-08-19T17:47:53Z

Marketing platform, edo Interactive, has partnered with Aentra to provided consumers a new way to give monetary gifts. The days of stuffing cash or checks into cards may be over thanks to this payment solution. Now recipients would have one prepaid Aentra MasterCard for their special occasion. Friends and family would then be able to put their gift directly onto the card and not have to worry about the hassels and dangers of cash and checks.

Aentra will initially release three prepaid MasterCards designed for weddings, baby showers and bar or bat mitzvahs. Givers can easily load money onto the cards online using a debit or credit card and receivers can redeem their prepaid card anywhere Debit MasterCard is accepted.

"We are excited to be working with AENTRA to simplify gift giving and provide a tasteful alternative for giving money as a gift," said Ed Braswell, CEO of edo Interactive. "Recipients who are busy with major life events such as a wedding or new baby will appreciate the ease of receiving monetary gifts from multiple givers on a single prepaid card."

"edo delivers the right combination of innovative technology and card program management expertise that we were looking for," said Abraham J. (Joe) Pick, CEO of AENTRA. "The ability for our cardholders to receive electronic monetary gifts rather than cumbersome cash or checks is a better solution for both givers and recipients. Furthermore, recipients can use their Prepaid MasterCard cards anywhere Debit MasterCard is accepted and also enjoy Prewards.”

Prewards are edo Interactive’s automatic incentives to leading retailers that are redeemed simply by swiping your card.

The Aentra Prepaid MasterCard cards are set to be released in fall 2009 and can be found on at

Aentra.com.

Virginia Credit Union and library offering free financial seminar

2009-08-19T01:06:56Z

The Virginia Credit Union is hosting a free seminar “Surviving the Economy”, Thursday evening at the Hull Street branch of the Richmond Public Library. The credit union is hosting the seminar to help people learn important financial tools both for surviving in a struggling economy, but also to make stronger financial decisions as a life change.

Glenn Birch, the public and media-relations director for the Virginia Credit Union will be the seminar presenter. The seminar will focus on steps to reduce spending, increasing savings, cutting expenses, paying off debt and increasing job security by raising value as an employee.

This tough economy is a good time to take a good look at your finances,” Jean Holman, Virginia Credit Union senior vice president of marketing and member education, said. “It’s also time to create an emergency fund, if you haven’t already done so. Apply the grandparent mindset. Get back to basics. Pay cash. Save spare change.”

Residents interested in the seminar can register online or call (804) 323-6800.

Companies look to new card encryption methods

2009-08-19T01:03:20Z

Visa Inc. and Fifth Third Bancorp are testing a new technique to prevent in-person credit card fraud. The new system evaluates the physical properties of the iron in the magnetic stripes of payment cards, which is individual to each card. Because each magnetic stripe is unique, cards essentially have their own finger print.

With this new method, when thieves steal consumers information they would be unable to use it on counterfit cards because the “finger prints” would not match up. "The right long-term goal is to make data unusable to criminals and therefore reduce the incentive to steal it," said Ellen Richey, Visa's chief enterprise risk officer.

During a transaction, the new terminals would verify that the stripe is affialiated with the account number being used and create a one-time code. The codes of fraudulent transactions would then be identified and issuers would be notified.

PNB attempts to expand global credit cards

2009-08-19T00:58:32Z

Public sector lender, Punjab National Bank is aiming to issue 200,000 global credit cards by March 2010. PNB is intending to widen its customer base with value and high end customers.

The company also plans to launch its two newest credit cards, the Corporate and Platinum cards. “Corporate Cards will be meant for senior executives of companies who often travel for business purposes. In this category, there will be two cards such as Individual liability and corporate liability," PNB Chief General Manager (Credit Card Venture) Ranjan Dhawan told reporters.

A second Platinum card is being designed for high end customers. "This card will meet the requirements of customers like premium gold membership, lounge expenses etc," Dhawan said.

The cards are schedualed to launch sometime within the next two months.

Since teaming up with Visa to launch PNB’s first credit card in February, they established a base of 28,000. The cards are accepted at over 29 million retailers and one million ATM’s which already use Visa.

PartnersFirst changes the way the credit card industry makes money

2009-08-18T17:35:26Z

PartnersFirst is a small credit-card company that is making big waves by offering new credit cards without fees. Hal Erskine who used to work in a more traditional banking environment started the company in 2007.

“I realized that there was an opportunity to give cardholders a square deal and still make a profit,” Erskine, said.

The company has a very different financial structure from other credit-card companies. Rather than making the bulk of profits from the many fees that some companies charge, PartnersFirst makes money from the interest charged on accounts.

PartnersFirst protects its income by carefully screening all applicants and having rigorous standards for qualifications. The company doesn’t simply look at consumer credit scores but also examines work stability, employment history and payment histories.

As the Credit Card Accountability, Responsibility and Disclosure Act becomes law, credit-card companies are faced with new restrictions on fees, fines, and changing rates. Many bigger credit-card issuers are taking notice of PartnersFirst structure and consumers might begin seeing more credit cards being offered without fees.

PartnersFirst offers companies and organizations a way to build an affinity credit card tailored to the organizations needs without penalizing cardholders. By eliminating fees, PartnersFirst is able to offer slightly higher interest rates, but at better terms than many larger credit-card companies. This move away from fees also keeps PartnersFirst out of the many complicated legal requirements of charging fees under new credit card laws.

SEIU Rewards Visa is one-of-a kind credit card

2009-08-18T17:32:18Z

The Service Employees International Union found its match with ParnersFirst to offer customers a consumer-friendly credit card. When SEIU was searching for a partner to create a branded credit card for its two million members, union leaders wanted a different sort of credit card than what they found. Union leaders demanded a credit card with lower fees and penalties that would actually be fair to card holders.

“We wanted a card that was more consumer-friendly,” Jeremy Smith, a deputy director at the SEIU, said.

PartnersFirst was the right match for the SEIU branded Visa card. They helped to create a credit card with no annual fees, no late-payment fees and no rate increases or term changes without permission from the union.

The SEIU Rewards Visa offers cardholders one percent cash back on every dollar spent using the card or the option of rewards points for merchandise, gift cards or travel vouchers.

Union members can apply for the card online. For Union members that don’t qualify for the credit card, the SEIU offers additional financial support to find financial education resources, other credit card options or a prepaid debit card.

Bank of America no longer requires arbitration to settle disputes

2009-08-18T17:27:36Z

Bank of America has changed its policy that required binding arbitration between its credit card holders and banking customers and the bank. Bank of America made the decision in reaction to customer complaints that arbitration favors banks rather than the individual customer.

According to Bank of America spokeswoman Shirley Norton, the new rule change is effective for new disputes beginning Aug. 20. She also said that the company believed that arbitration is fair, but it was clear that some customers felt that it wasn’t.

The new law will allow for lawsuits against the bank but the company hopes that by listening to customer complaints and making changes, they will be able to settle more disputes with customers directly.

The practice to require binding arbitration is a common banking practice to protect against potentially more costly lawsuits.

Getting an auto loan with a low credit score

2009-08-14T02:13:27Z

While a strong credit score can certainly improve loan terms, it is still possible to qualify for an auto loan with a low credit score. There are many factors taken into account when applying for an auto loan and presenting the best possible financial picture to a lender is helpful.

Most lenders look at credit scores and higher scores will help obtain more favorable loan terms. Some lenders, however, do not consider credit scores if other factors are strong enough.

Auto lenders look for job security to ensure that they will receive their money back. Ideally consumers should have at least one year at their current job. The other consideration is to have two to three years of continuous employment.

Income requirements will vary depending on the loan term and the lender. Most lenders prefer a minimum gross income of $2,000 per month. Lenders will look at a debt-to-income ratio to determine what portion of monthly income is actually available for repayment of their loan.

With the right combination of factors, most people will be able to find a lender willing to give them an auto loan, especially with a higher down payment.

Finally lenders look for a strong down payment. Even if a consumer has a week credit score, a high down payment will often allow them to qualify for a loan. A high down payment means the lender has less risk on a lower loan amount.

New regulations restrict credit card marketing on college campuses

2009-08-14T02:08:59Z

Illinois Gov. Pat Quinn signed a new measure into law to restrict credit card marketing at public and private college campuses in the state. The new law bars colleges from selling student names and contact information to credit card companies.

“We need to continue to clamp down on an industry that protects big credit card issuers at the expense of responsible consumers, especially our young men and women,” Alexi Giannoulias, Illinois treasurer, said. “[They] are on their own for the first time, most of whom have no disposable income or income at all. These are common-sense, logical provisions that help level the playing field for students and set new and reasonable expectations for lenders.”

The law also places restrictions on companies offering free merchandise in exchange for applying for a credit card. The law stipulates that if a college allows credit card marketing on campus, the school must provide consumer finance education to freshman students.

The new law also requires schools and other school organizations, such as alumni associations, to disclose marketing contracts with credit card companies. Often schools can heavily benefit from such relationships with credit card issuers.

Discover offers biodegradable credit card

2009-08-13T02:28:24Z

Discover has released a new biodegradable credit card as part of its focus on sustainability and eco-responsibility. The new credit card style can be used with any Discover credit card.

The card is made of a new PVC material that will break down in five years in most landfills without any toxic effects on the environment. This new type of credit card could have a positive impact on the environment, both in reducting the production of plastic for credit cards and the effects of plastic in landfills, as consumers throw away old credit cards.

Know all the details before applying for a credit card

2009-08-13T02:22:40Z

Consumers owe it to themselves to find out all of the important information about a credit card before applying for it. Often consumers only read the bold print - which is the attractive information that credit issuers use to make a card most desirable - and fail to pay attention to the fine print details.

Introductory rates are typically highlighted. Prospective cardholders should check the length of time introductory rates last, the level to which rates will be raised after the introductory period is over and the consumer actions that can negate the introductory rate, such as late payments.

Next, consumers should find all of the fees associated with the card, such as annual fees, late fees, online transaction fees, over balance fees and others. Cardholders also need to know if the issuer can lower credit limits and the required time of notice, if any.

In order to best protect credit scores, consumers need to know when credit issuers report to credit bureaus. By knowing when credit issuers report, consumers can make sure to pay all bills and lower balances before the account is reported. This means that customers are presenting the best possible financial picture to the credit bureaus each month, which results in a higher credit score.

Finally, prospective cardholders need to know the credit issuer's dates of mailing statements compared to when bills are due - plus the length of grace period the company offers. A short window between receipt of a statement and the date the amount is due can often lead to accidental late payments, incurring fees and other penalties.

By knowing all of this information before applying for a credit card, consumers can ensure they are making informed choices.

Chase Platinum Visa viable option for consumers with high credit scores

2009-08-13T02:17:26Z

The Chase Platinum Visa is a card with great benefits for consumers who qualify. It offers one of the industry's best packages for a platinum credit card.

The card has no annual fee and a zero percent APR on balance transfers and new purchases. The Chase Platinum Visa also offers an interest-free grace period for consumers who pay their bill in full each month.

Chase Platinum Visa is a rewards card offering points for every dollar spent on purchases. Cardholders can receive rewards up to 60,000 points annually. Points can be redeemed anytime within a five year period from the date awarded. Points can be redeemd for merchandise, gift cards, travel or cash back rewards.

Less credit card debt in June

2009-08-12T02:16:20Z

In June Americans paid down credit card debt while avoiding adding new debts, according to the Federal Reserve's latest figures. The total amount borrowed decreased by $10.3 billion and revolving debt - generally credit card debt - dropped $5.3 billion. Non-revolving debt, which is mostly car loans, also dropped roughly $5 billion.

Compared to June of last year, the annual difference was 4.9 percent, exceeding most analysts’ predictions.

Many factors are contributing to the recent decline in debt and borrowing. One reason is many Americans are practicing more financial responsibility and simply paying down past debts.

Another factor is that due to the high unemployment rate and fear of losing their jobs in the future, many Americans are spending less and saving more.

Also, banks have drastically toughened the standards for obtaining credit and many people with mid-range and low credit scores simply are not approved for loans.

"The trends we are seeing are going to continue and get more intense by the end of the year," consumer advocate Gerri Detweiler told the Los Angeles Times. "As credit reform gets closer, banks are working very hard to reduce their risk profile, and that's causing some pretty dramatic changes for consumers."

Figures released by the Fed show consumer credit has decreased each month (except Sept.) since August of 2008.

MasterCard to give away jeans and trip to break them in

2009-08-12T02:11:55Z

MasterCard is giving away new priceless moments in the form of a new pair of jeans and a vacation to make sure the jeans are properly broken in. Now through Aug. 31 MasterCard users will be automatically entered to win one of nine grand prizes or 62 first place prizes.

The nine grand-prize winners will receive a $200 MasterCard gift card to use to buy a new pair of jeans. They will also receive a five-day and four-night vacation in partnership with American Airlines and Hyatt Hotels. The grand prize includes airfare for the winner and three guests, accommodations, ground transportation, sightseeing, food entertainment and spending money worth $50,000.

The first-place winners receive a $200 MasterCard gift card for jeans and a three-day and two-night weekend vacation for themselves and a guest. The first-place prize is worth $3,800.

Travelers should use credit card rewards

2009-08-12T02:07:35Z

Credit cardholders who use airline rewards often fail to utilize many other rewards offered. Picking the right travel card depends on the type of travel for each cardholder.

Some travel rewards cards are meant for frequent travelers - such as business travelers - and offer extra benefits such as premier seating or membership to the airline lounge or business center. Other cards offer airline reward miles for purchases such as groceries for the flier who travels less often and wants a cheaper ticket. Beyond the direct travel rewards, many cards offer perks such as discounts for car rentals and restaurants, as well as upgrades or discounts at hotels.

Usually a credit card issuer will partner with another company and offer rewards for members, but if the cardholder isn’t aware of the partnerships they can’t utilize them. The best benefits come from planning ahead and calling the card provider and asking about partnerships that offer discounts. Even if the card issuer doesn’t provide a list, it's a good idea to call hotels and ask if there are available discounts for using a particular credit card.

Often a car rental company will offer specials, such as one day for free with a weekend car rental, when the car is rented with a particular credit card. Hotels will offer similar specials, like a free day, a discount on an entire stay or a free day on a future stay at the same hotel chain.

Besides getting a discounted rate, cardholders can also earn extra reward miles by making purchases at preferred companies. By spending a little time researching, credit card users can save money on all parts of traveling and earn extra travel rewards toward future vacations.

American Express and Discover no longer charging over-limit fees

2009-08-11T04:12:59Z

American Express and Discover have both announced that they will no longer charge cardholders an over-limit fee on credit cards. The move comes in response to new credit card legislation requiring consumers opt in to be allowed to exceed credit card limits and then have a fee associated. The two companies have chosen to eliminate the fee rather than require all customers opt in to a process that allows them to exceed credit limits.

In a statement, Discover announced its elimination of the fee as a convenience to customers and the company is honoring the spirit of the new law rather than just the letter of the law by eliminating the fees.

Exceeding the credit limit may have other ramifications such as a lowered credit score, raised interest rates or a lowered credit line. Consumers should still avoid going over the credit limit and keep card balances low to maintain a healthy credit history and avoid higher interest rates which will cost more money in the long run than the money saved by not paying overlimit fees.

Budget and Avis offering 20% off car rentals with MasterCard

2009-08-11T04:08:13Z

As more travelers choose to stay closer to home and save money, using a MasterCard can help make travel a bit more affordable. Customers who use a MasterCard to rent a car at Budget or Avis will save 20 percent off the rental price along with other free upgrades.

Budget car rental is offering the promotion for all online reservations made with a MasterCard. It includes a third weekend day free on the car reservation as well as the 20 percent off the total price.

Avis car rental is also offering a 20 percent discount, along with a free single upgrade on the rental vehicle. The vehicle rental must include a Saturday to receive the upgrade.

Police warn of credit card theft via text message

2009-08-11T04:03:52Z

Wisconsin police are warning consumers about a new trend in credit card theft. Thieves using text messages can gain cardholder information. People are reporting a scam in which they receive a text message claiming to be from MasterCard customer relations. The text message says that the card has been deactivated for security purposes and then instructs the receiver to reply with the card number and PIN to reactivate the card.

Debit and credit card holders need to know that a bank or credit issuer will never ask for a customers PIN and will never ask for a card number via email or text message. If consumers receive a solicitation for a card number they should not give the information and immediately contact the card service number to report the action.

MasterCard donates funds to educational programs and charities

2009-08-11T04:00:11Z

MasterCard has made a million dollar pledge to educational programs in the St. Louis region. The funds are available to schools, charities and other programs through an educational grant called Project Math which has been created to "empower local math teachers and enrich their abilities in order to improve regional math achievement," according to a statement released by MasterCard.

The grant will include funding, volunteer support and new technology equipment. MasterCard has pledged use its global presence to: connect with speakers, provide funding for school districts that have identified their math education needs, partner with university-level math and science organizations to provide students with coaching and development, promote math achievement (using MasterCard employee volunteers) and donate computers and other equipment from MasterCard headquarters when the equipment is retired or upgraded.

Those interested in receiving funding from the grant can apply online using an information form and eligibility quiz.

MasterCard Global Technology and Operations are located in St. Louis, where MasterCard is focusing on math programs in its home area.

Many credit card users skip free credit reports

2009-08-11T03:53:25Z

Credit card issuers often make mistakes reporting to the credit bureaus, which can significantly hurt consumer credit reports. But these inaccuracies often go unnoticed since many consumers don’t take advantage of the free credit report, to which they are legally entitled from each of the three credit bureaus.

Errors often include late payments or non-payments, debts that have been settled, inaccurate information or credit fraud. These mistakes can all be challenged and reversed, improving credit scores dramatically. It is recommended to order a credit score every four months, cycling through the three credit bureaus to maintain an accurate view of your credit report.

If a mistake is found, challenge it. All documents such as receipts, letters or bank records should be included in a challenge. Mail a letter disputing the claim with proof. Keep a postal receipt of the letter as evidence that the credit bureau received the dispute. After filing the dispute, check in until the claim is settled. Once the dispute is settled, ensure the new information is listed on your credit report and make sure it is filed with all three of the credit bureaus.

After filing a dispute the consumer can add a 100-word statement to a credit report if you are not satisfied with the corrections. Consumers can request a credit bureau to submit a corrected credit report to lenders if the inaccurate report influenced a decision.

Expect more credit card mailings as economy stabilizes

2009-08-11T03:48:27Z

Credit card companies are revamping and increasing the number of credit card mailings, despite historic lows throughout the industry and a struggling U.S. economy. The move comes as credit industry faces new regulations and structures, and as the economy shows signs of improvement.

The research company Synovate has tracked the number of credit card mailings using its mail monitor process. The data shows that card mailings fell 67 percent between the first quarter of 2008 and the first quarter of 2009. But there was only a 6 percent drop between the first quarter and second quarter of this year.

While there is still a slight decline in mailings from past years, banks are significantly increasing efforts, with Bank of America increasing mailings 77 percent from the first quarter of the year and Citibank showing a 61 percent increase.

“Issuers are no longer as risk averse,” Anuj Shahani, director of competitive tracking services for Synovate said. “While the economy starts getting back on its feet, issuers are getting creative and tracking their product mixes to adapt to the new regulated government.”

ParntersFirst announces University of Nebraska Visa Affinity Credit Card

2009-08-07T20:13:30Z

PartnersFirst Affinity Services announced that the University of Nebraska Alumni Association would be partnering with the service to issue a Husker Rewards Visa credit card.

“We want to provide the best possible product,” said Diane Mendenhall, executive director of the University of Nebraska Alumni Association. “One that will responsibly serve the needs of our alumni and friends and offer some never-before-available unique Husker experiences as part of a brand new rewards program.”

The Huskers Visa reward program will offer cardholders a choice of 1 percent cash back on all purchases, travel on any air carrier without blackout dates, exclusive University of Nebraska sporting memorabilia, VIP experiences or merchandise and gift cards from participating retailers. The program also has no annual fee, no late fees and no over limit fees.

MasterCard and WestJet announce new travel rewards card

2009-08-07T20:10:11Z

WestJet, a leading Canadian airline, is launching a new travel rewards card with MasterCard. The new card will be released this fall with RBC Royal Bank.

“We are extremely pleased to work with RBC and MasterCard,” Sean Durfy, WestJet president and CEO, said. “Our continued profitable growth will be strongly complemented by two of Canada’s pre-eminent brands. We take enormous pride in working with companies that share our values and respect for corporate culture, and we look forward to a hugely successful relationship with RBC and MasterCard.”

The new card will be the first MasterCard product offered in Canada by RBC. The new move is expected to make RBC the first Canadian Bank to offer co-branded credit cards with major credit card issuers. The decision could be the beginning of a transition in Canada towards increased consumer credit choices.

“We are proud to extend MasterCard’s convenient, secure, innovative payment technologies to RBC and WestJet customers,” Kevin Stanton, president of MasterCard Canada, said. “The WestJet RBC MasterCard is an example of how MasterCard works with its customers to help Canadians get more from their purchases.”

It pays to know the options banks offer struggling cardholders

2009-08-07T20:04:23Z

As more people are affected by the economic downturn, banks and credit card issuers are working to help delinquent cardholders keep up with payments and get back on track. Each issuer has different policies and, depending on the company, cardholders are often considered on a case-by-case basis. Consumers who are struggling with paying off credit card debt should research the options their card issuer offers and contact the customer service number to inquire about assistance options.

Capital One is offering delinquent cardholders six months of no interest to catch up on payments. They are also offering some cardholders fee waivers, APR reductions, payment plans and sometimes settlements.

American Express is offering lowered interest rates as a way to lower minimum monthly payments. The company will also often waive fees. All card members can apply for the lowered rates, not just those who are already delinquent. Payment plans are also available to work within the needs of cardholders.

Bank of America is offering delinquent customers repayment plans up to five years with low interest rates. Some cardholders may also receive settlement plans.

Chase is offering a wide variety of plans for cardholders depending on demonstrated financial hardship. Some of the options include restructured loans with reduced interest rates, waived fees and extending repayment terms. The reductions and time extensions are decided on a case-by-case basis.

All credit card holders struggling with making card payments are encouraged to contact their card issuer to determine whether a financial plan can be reached before the account falls delinquent. Some plans will affect a cardholder's credit score.

Bank of America changes management structure

2009-08-07T20:00:29Z

Bank of America has hired Sallie Krawcheck, a former Citigroup executive, to run the bank’s global wealth management unit. The change came as Bank of America made other changes including promoting three current employees to a senior executive team.

“I am excited that Sallie Krawcheck has agreed to join our company,” Ken Lewis, Bank of America CEO said. “She is acknowledged to be one of the premier executives in the wealth management industry. Her experience and perspective will lead that business to the next level.”

Krawcheck was the former head of global wealth management and chief financial officer at Citigroup. She has also served as chief executive of Sanford Bernstein & Co. and as the executive vice president of Alliance Capital Management.

The new management team was constructed as Bank of America merges with Merrill Lynch to become one of the largest banks in the United States. Other members of the senior executive team include: Brian Moynihan, head of Consumer Banking; Tom Montag, head of Global Corporate and Investment Banking; and David Darnell as head of Global Commercial Banking.

“The company and the environment have changed significantly,” Lewis said. “Considering these challenges and working closely with our board, I reviewed the management team and have decided to make some changes, bringing new talent into the team and adding new perspectives.”

Pentagon Federal Credit Union gives cash back rewards on back to school shopping

2009-08-07T01:09:15Z

Pentagon Federal Credit Union realized that back to school expenses can quickly add up and are offering customers five percent cash back on eligible expenses.

“During these economic times, we are partnering with our members to provide them the most relevant ways to save money,” Nicole Butler, vice president of card services and business development, said. “We have put together an offer that would apply to any student, whether they need paper and pencils in grade school or books and computers for college.”

Through Sept. 30, 2009 eligible purchases made at bookstores, computer and electronics retailers and office supply stores will earn the five percent cash back when purchased with the Credit Union’s Visa Platinum Cash Rewards card.

Bank of America announces promotion offering customers $50

2009-08-07T01:07:00Z

Bank of America has launched a new credit card promotion offering customers a $50 credit on a new Visa Cash Rewards Card. To qualify for the new offer, customers must apply and qualify for a new Visa Cash Rewards credit card and then the new card must be used to make a combination of purchases, balance transfer or cash advance totaling at least $25 within the first 45 days of opening the account.

The card earns cash back rewards in a variety of ways. Customers will earn three percent back on gas, grocery and drugstore purchases for the first six months and one percent cash back on all other purchases. Customers redeeming cash back points of $300 or more will earn an additional 25 percent bonus. Customers can also set up automation redemptions as an account credit, direct deposit, as part of a payment on eligible Bank of America mortgages or in a check.

The card has no annual fee and a zero percent introductory APR on purchases, balance transfers and direct deposits for the first seven or ten billing cycles.

New Product turns iPod and iPhone into credit card processor

2009-08-07T01:03:57Z

A new apple attachment called Square is allowing Apple retail stores to use iPhones and the iPod Touch to ring up customers. The Square is a small cube that is plugged into the headset jack. Inside the small plastic cube is a swipe-able credit card reader.

The Square works by registering the card information and transferring it to the compatible iPhone Square application. Using the app the customer inputs a signature and email address for a receipt. Once the data has been processed by Square the customer receives an email receipt of the purchase that includes a Google map showing where the purchase was made.

The Square and Square app are being tested at SelfEdge, a retail store in New York. For business owners that already use an iPhone the new app might be just one more way to streamline business into one central location.

Five factors in a FICO score

2009-08-05T16:46:17Z

Understanding how a FICO credit score is calculated is an important part of managing personal credit. Credit scores are not only important to get a credit card but to rent a home, but a house, buy a card, get utilities turned on, and even apply for a job.

The biggest factor in a FICO score, usually a little more than one-third, is payment history. The single most important thing a consumer can do to manage their FICO score is to make all payments on time or early.

The second factor, another third of the score, is credit balance against available credit. Most financial advisors suggest that consumers should use no more than one third of available credit.

A third factor in FICO is length of credit history. If possible, use the oldest card and keep that account in good standing to show a lengthy credit history. Avoid opening new cards frequently and pick just a few accounts to use and keep healthy.

Fourth, the type of credit accounts for a small percentage of the score. Lenders prefer to see a mix of revolving accounts such as a credit card, installment accounts such as a car loan and possibly a mortgage or other large loan. This mix shows that credit is being used in a responsible manner for the appropriate reasons.

The final factor into a FICO score is the number of inquiries into consumer history. Each credit inquiry is a small ding on a FICO score since it shows that a consumer is shopping for new credit.

By understanding how a FICO score is compiled consumers can make active decisions to protect their credit score.

Chase and United Airlines introduce three new premium credit cards

2009-08-05T16:42:40Z

Chase and United Airlines are making travelers dreams come true with three new premium visa credit cards with different rewards and benefits for travelers. The three cards are the United Mileage Plus Club Visa, United Mileage Plus Access Visa, and United Mileage Plus Select Visa. The three cards have different annual fees and offer benefits ranging from travel miles, extra legroom and Red Carpet Club membership.

“For some of our credit card customers, its all about quickly and easily earning miles to reach their next reward,” Robert Sahadevan, vice president of Mileage Plus, said. “For others, they want exclusive perks that make travel more comfortable. We now have a breadth of cards that responds to both.”

The annual fees for the cards start at $375 annually to $130 annually. Each card is geared toward a different type of traveler. The Plus Club card is for the frequent traveler who spends a lot of time in airports. The rewards for that card include Red Carpet Club membership, up to 10,000 miles per year toward elite status; two miles for each dollar spend with United and one mile for every dollar on other places.

The Plus Access Card is for the consumer who takes an annual vacation and appreciates a more comfortable flight on the occasion. The card offers extra legroom in Economy Plus, two one-time Red Carpet Club passes each year and one mile for every dollar spent.

The Plus Select card is for the traveler making short weekend trips. The card offers triple miles on all United purchases and double miles on Star Alliance, gas, home improvement, groceries and dining purchases. Cardholders will also receive 5,000 bonus anniversary miles each year.

“Our new cards go beyond the conventional spend-a-dollar, earn-a-mile structure by offering cardholders features that provide travel comforts and accelerate their path to achieving coveted elite status or reaching their next award destination,” Sahadevan said.

MasterCard offers a variety of prepaid cards

2009-08-03T22:18:04Z

MasterCard is one of the largest credit card issuers and is becoming a big player in the prepaid market for consumers who might not qualify for a traditional credit card. MasterCard offers the MasterCard Everyday Prepaid card, the Prepaid Gift card, and the MasterCard Travel Card.

The MasterCard Everyday Prepaid card is the card designed for everyday spending and to be used in place of a debit or credit card. The Everyday card doesn’t require a credit check or a bank account. Money is simply added to an account and the card can be used anywhere that a MasterCard debit card is accepted. The MasterCard Everyday card allows consumers to pay bills and make purchases online.

Like all MasterCard prepaid cards, the cards are safer than cash since the card can be registered. If a card is lost or stolen, the cardholder is protected from unauthorized purchases. With a quick phone call, the account is frozen so that funds cannot be used for fraudulent purchases.

The MasterCard travel card offers the convenience of a debit card for those that do not have a debit account, or do not want to travel with a debit card in case of theft or loss. The MasterCard travel card is more convenient that travelers’ checks and offers travels security with zero liability.

MasterCard prepaid cards can have value added to them at a rePower station at many retail locations. This allows travelers to add funds to a prepaid card if needed while traveling, or Everyday card users to add funds as needed without getting a new card each time. Registered cards can sign up for MasterCard savings online and receive discounts up to 20 percent at select retailers to enjoy some of the benefits and rewards of a MasterCard account

Secured and Prepaid credit cards become popular card choices

2009-08-03T22:12:40Z

Many consumers don’t have the necessary credit score to qualify for traditional credit cards, but secured and prepaid cards are quickly immerging as a popular choice for consumers looking to build or rebuild a credit history. Prepaid and secured credit cards are both accepted like traditional credit cards but work in slightly different ways.

A secured credit card is more similar to a traditional credit card, but is an easier to qualify for option. The cardholder deposits money into an insured account to be used as a line of credit. The amount in the account is the amount of the credit line. Usually the deposit amount ranges from $300 to $10,000.

The card requires monthly payments with a minimum amount due on each balance cycle. Most secured credit cards have an annual fee and a slightly higher interest rate than a traditional credit card. Secured credit cards are reported as a credit card to the credit bureaus and help rebuild a credit history. Often, after a period of successful credit management the card issuer will offer the consumer a traditional, unsecured credit card. The money serving as the deposit on the secured credit card is returned to the cardholder if the account is closed or transferred to an unsecured card. If the cardholder defaults on payments, the deposit is used to pay the amount.

A prepaid credit card works more like a debit card than a credit card. A prepaid card works with money being put into an account and when purchases are made, the money is automatically deducted from the account.

Prepaid cards are a popular option for those that don’t have a large sum of money for the deposit required for a secured credit card. These cards can be used like a credit card to make online purchases and are convenient for traveling to avoid carrying cash.

Public Savings Bank Visa secured credit card helps build credit

2009-08-03T22:09:10Z

Public Savings Bank has released a new Visa secured credit card with a quick and easy application process. The secured credit card is one of the best available options for consumers who lack credit or have poor credit to create a strong credit history. With a secured credit card, consumers make a deposit into an FDIC-insured account. The deposit is then used as security for a credit line.

“Building god credit is critical at a time when credit is getting harder to obtain,” Bob Wexler, executive vice president of Public Savings Bank, said. “This card allows the customer to build good credit while enjoying all the benefits of a Visa card at very favorable terms.”

Consumers interested in the secured credit card can apply online and be approved in a few hours. Once approved the cardholder makes a deposit of $300 to $10,000 into a Public Savings Bank FDIC-insured deposit account. The amount of the deposit becomes the available credit line on the secured credit card. The secured Visa card can be used the same way as a traditional Visa credit card.

The secured card from Public Savings Bank has many unique features that makes the card one of the best secured cards on the market. The card comes with no annual fee and a zero percent APR on purchases for the first sixth months. Usually a secured card has an annual fee and a slightly higher APR. Public Savings Bank reports to all three major credit bureaus, so card use and payments will help to quickly improve a credit score.

“We are excited with the acceptance of this card in the market,” Wexler said. “This is a consumer-friendly card that was not available before Public Savings came to market. This is a great tool for anyone looking to establish a solid credit history.”

Cashback cards earn money when used correctly

2009-08-03T04:43:02Z

Cashback rewards cards allow consumers to earn money by spending money, but only if the credit card is managed correctly. Credit cards that offer cashback rewards offer card users money back based on purchases made. The amount of cash rewarded depends on many factors.

Different credit cards accumulate cash back rewards differently. Some cards offer higher rewards for different purchases such as groceries, gas, travel or events. Others offer a flat percentage on all purchases. Credit cards offer different percentage of purchases on varying amounts with varying maximums. Consumers need to research cards carefully to find the best fit for their spending habits.

Besides picking the right card, the most important part of correctly utilizing a cashback reward program is to pay the credit card off, in full, each month. The biggest mistake customers make is allowing a balance to remain on a cashback reward card. Any interest on a card balance will quickly outweigh any earned rewards.

Many consumers feel justified in making purchases on a cashback reward card since they are earning money back. This can be a dangerous mindset that often leads to consumer overspending. Only spend what can be paid back that balance cycle.

Surfrider Foundation Platinum Rewards Visa saves the waves with purchases

2009-08-03T04:39:28Z

The Surfrider Foundation has announced a partnership with Visa to release a Platinum Reward card to support the Surfrider’s dedication to saving the world’s oceans and waves. For the first purchase made on each new card, UMB will donate $50 to the Surfrider foundation. A percentage of each additional purchase made on the card will be donated to the foundation as well.

“Using the Surfrider Foundation Visa Platinum Rewards credit card for everyday purchases is an easy way for supporters to raise funds that will help the Surfrider foundation protect and preserve our oceans, waves and beaches,” Steve Blank, Surfrider Foundation’s director of development, said.

The card is available with five different images from world-famous surf photographer Aaron Chang.

“We’re extremely grateful that Aaron Change allowed us to use his images for the credit card,” Blank said. “The photos reflect the beauty and power of the ocean and highlight why we need to continue preserving it for future generations.”

Cardholders will get the many benefits of the Platinum Visa including a card with no annual fee and an introductory zero percent APR on purchases and balance transfers for the first sixth months. The card also offers a variety of reward points by many retailers including up to 15 bonus points per purchase dollar at some select merchants.

Swagbucks now offering $10 MasterCard

2009-08-03T04:34:15Z

Swagbucks, a search engine that rewards users with digital dollars redeemable for prizes, is now offering a $10 MasterCard gift card in exchange for 135 swagbucks. Swagbucks is a new search engine that rewards users with swagbucks for each search. Earning points is a bit of a gamble with each search being rewarded with one to five points. On Fridays, a few lucky searchers win 100 points for their search.

Swagbucks searchers store earned swagbucks in an online account and can redeem points as different prizes are available. The new $10 MasterCard gift card is one of over 20 gift and reward cards available for swagbucks.

Prizes change regularly, so swagbuck users should redeem points for a desired gift card as soon as they have enough to earn it.

MasterCard creates iPhone application for “priceless” moments

2009-07-29T03:47:56Z

MasterCard has created an iPhone application to allow consumers to share “priceless” places, things, bargains and more. The application connects users to a nationwide grid and creates a virtual tag to a place with a “priceless” moment such as a favorite restaurant, shopping location, great sales and more.

The application allows users to track their own priceless moments in a location but is also a useful resource for tourists to explore a new city and shoppers to find great sales and bargains they might otherwise miss.

“The human nature of people - call it the brag factor - is that they like to talk about things they’ve discovered,” Chris Jogis, senior vice president of marketing at MasterCard said.

The new application is a reference to MasterCard’s popular “priceless” advertising campaign in which a series of items and their price are listed with a final (usually emotionional) moment described as "priceless." While the application is related to the advertising campaign, MasterCard says it is not an advertisement; rather it is a place for consumers to share moments of life with each other.

“Certainly most of the things we look to do are connected to convenient ways for consumers to buy things,” Jogis said. “But even when it’s about a deal or a great price, it’s also about the find and the adventure and the experience.”

New measure aims to prevent fraudulent credit charges

2009-07-30T03:58:39Z

The Reserve Bank in India is taking new steps to prevent fraudulent credit charges by requiring more information from consumers making online credit card transactions. Traditionally, in order to make an online transaction, consumers needed a credit card number, expiration date and the security number located on the back of the credit card. Since all of this information is printed on a credit card, thieves and pickpockets had very few barriers to prevent fraudulent charges after obtaining possession of the credit card.

A new law, beginning Aug. 1, will require photo identification for over-the-counter purchases and a new secured code number for online purchases. The new security technology is called VBV, verified by Visa or MasterCard secured Code. The new system requires customers to go online and register for a secured code; similar to a PIN used by ATM’s, to add an additional layer of security to credit card purchases.

The VBV code is picked by the consumer and registered with the Visa or MasterCard as a necessary key to unlock the funds on the card. This method ensures if the card is stolen fraudulent charges will not be processed.

In addition to requiring photo identification or an VBV code, many credit card issuers are sending consumers new cards with a photograph of the card holder printed on the card to help cut down on fraudulent charges.

MBTA Charlie Card holders can use online registration and payment options

2009-07-30T03:54:21Z

Boston Mass. Commuters using the Charlie Card to access the Massachusetts Bay Transportation Authority system can now pay for travel cards online. MBTA users have been requesting online access for nearly three years and now can pay for cards and register them online in case of loss or theft.

“It’s really a menu of options to customize your card,’ Daniel A Grabbauskas, MBTA general manager, said.

The new automated system allows customers to anonymously add funds to a card using a credit or debit card. The system can verify credit card information with the credit card issuer and credit the account by 5 a.m. the following day without storing the card. For consumers who are comfortable storing personal information on the system, they will have access to more options.

Those consumers with stored information can register a Charlie Card and report the card lost or stolen to maintain the card value. Those members will receive a new card in the mail, with the existing store's value, within three to five days without a charge.

Customers can also link fare cards to a credit card account. The credit card account will automatically deduct the monthly fare pass amount five days before the end of the month for easiest access for consumers. Customers may also register multiple cards to each account so that families and households can easily budget the expense.

Linux launches platinum Visa credit card

2009-07-30T03:49:20Z

The Linux foundation, a nonprofit organization dedicated to the growth of Linux, announced the offering of a Linux affinity Visa Platinum credit card to support the advance of the Linux operating system.

“This credit card is in response to requests by individuals who want to get involved and support the Linux Foundation’s community activities,” Jim Zemlin, executive director at the Linux Foundation said. “Some people write code, while others work on marketing or defending Linux. The Linux-branded credit card is an easy way for anyone to contribute to the growth of Linux and identify themselves as supporters of the community by carrying the card in their pocket.”

The Platinum Visa card awards the Linux Foundation $50 for every activated card as well as an additional percentage of every dollar purchase made with the credit card. The funds raised from the new credit card will go directly to providing technical events for the community and providing travel grants for open source community members to aide in the development of the Linux innovation.

Linux Visa card members can earn reward bonus points towards free merchandise, travel tickets and discounts and online and local retailers. The card comes without an annual fee and a six-month introductory zero percent APR.

National Bank of Canada and MasterCard offer small business card

2009-07-29T03:54:40Z

The National Bank of Canada has released the Premia Business MasterCard for small business owners or the self employed as a money management tool. The card is promoted by the bank as, “the easy way to separate your personal and business spending."

The Premia Business MasterCard is connected to one account in the company name and each cardholder's name with up to ten cardholders per account. The account manager can then set a monthly spending allowance for each cardholder. At the end of each billing cycle, purchases are consolidated onto one statement for convenience, but still track each cardholder's spending.

The Premia Business MasterCard offers partnerships with a variety of retailers and businesses to offer discounts for small businesses. The partnerships include companies offering security, accounting, advertising, travel and many other small business needs.

Companies can choose to add a reward program to the account for an annual fee. The card offers two different levels of rates, rewards and limits depending on the type of account. Interest rates range from 13.9 percent to 18.9 percent - and fees for additional cards at $25 or $50 per card - depending on whether the account has a reward plan.

Home Depot will now accept MasterCard PayPass contactless cards

2009-07-29T03:52:11Z

Home Depot, the world’s largest home improvement retailer, will now allow customers the convenience of using MasterCard PayPass, a contactless payment system, in stores. PayPass is a payment system that completes a transaction simply by touching the PayPass MasterCard or a mobile phone to the terminal.

“With MasterCard PayPass, the Home Depot customers can enjoy faster transactions and greater payment convenience by simply tapping their MasterCard PayPass cards or devices on a PayPass reader at checkout to complete their purchases,” according to a written statement released by Home Depot.

MasterCard touts PayPass as always having the correct change without the inconvenience of carrying it. Home Depot has made the move to the new payment system in response to new customer trends towards contactless forms of payment. In the first quarter of 2009, more than 55 million PayPass-enable credit cards or devices had been issued. That number more than doubled the number of PayPass devices in circulation.

“Contactless payments meet consumer demand for more convenient ways to pay in retail environments,” said Cathleen Conforti, senior vice president of Global PayPass, MasterCard worldwide. “The increasing popularity of MasterCard PayPass demonstrates that merchants and customers alike appreciate the speed and convenience PayPass delivers as consumers continue to shift their preference to electronic payments from cash and check.”

Visa announces changes in management structure

2009-07-29T03:49:33Z

Visa Inc. announced Monday, July 27, that company President John Morris will step down from his role and will leave the company at the end of the year. Morris joined the company two years ago after Visa combined most of the company’s regional units into one company, Visa Inc.

Chief Operating Officer John Partridge will take on the additional responsibilities effective immediately. He will now add global sales, client service, marketing, product development and innovations to his current duties.

Visa said the decision will enhance the company’s organizational effectiveness and the pace of Visa’s global alignment.

Credit card companies offer debt settlements

2009-07-28T03:36:29Z

As unemployment rates continue to increase, more and more consumers are falling behind on credit card payments without a way to catch up. While credit card companies have offered debt settlements for years, they are gaining in popularity as companies look to recover as much as possible on accounts rather than losing the money to a collections agency.

Credit card defaults reached a record high of ten percent in May and continue to climb. That means 10 percent of outstanding balances are considered losses that cannot be collected. If an account is sent to a collections agency the credit company can expect to receive pennies on the dollar, if anything at all. A settlement for a portion of the debt mean that the credit company makes more money and the consumer can get out of debt at a lower price.

“It doesn’t mean everyone out there will qualify for a settlement,” Curtis Arnold, found of CardRatings.com, said. “But your chances are now better than ever.”

Card settlement will negatively affect a credit score, remaining on a credit report for up to seven years' and forgiven debt is considered income and will be subject to tax. But for those with high debt that feel they could pay half to a quarter of it, and with a history of making payments on time, credit settlement could be the right choice.

“We evaluate the individual customer’s situaion,” Betty Riess, Bank of America spokeswoman, said. “Based on the evaluation, we propose the appropriate customized solution.”

Credit card fee structure changing

2009-07-28T04:30:23Z

Credit card laws are changing banking practices as many credit card issuers switch cards to variable rates. New credit card laws are requiring credit card issuers to alert consumers of any change in interest rates 45 days before the change takes effect. The law doesn’t apply to variable rate cards however.

Variable rate cards mean that the interest rate on the credit card is related to the Prime Rate. As the Prime Rate changes the interest rate on the credit card will change as well. A fixed rate card is less reactive to changes in the Prime Rate, and typically changes in reaction to consumer credit spending habits.

Some financial analysts see the switch to variable rate cards as the credit industry’s way to skirt the new credit laws. The Prime Rate is currently near zero so credit issures are offering consumers a variable rate card with a current zero percent interest rate. But as the Prime Rate rises consumers will see a change that some may not be expect.

According to Josh Frank, a senior research at the Center for Responsible Lending, “a lot of people are trapped” by the variable rate cards. They are nearly guaranteed a change in interest rates but may not realize it when taking advantage of a low rate offer.

Banks and Credit card issuers defend the action as the best way to continue to provide credit to consumers.

“The new rates will enable us to continue to extend credit to credit-worthy customers while remaining prudent in our lending practices,” Betty Riess, Bank of America spokeswoman, said.

Library offers free seminar on credit score basics

2009-07-27T03:47:51Z

Residents of San Marcos, Texas can attend a sponsored seminar to learn the basics of responsible credit use. The seminar will cover: what a credit report is and its affects, how to build good credit, repairing bad credit and how to prevent identity theft.

The San Marcos Public Library and the San Marcos Housing authority are hosting the seminar in the public library at 7 p.m. Monday, July 27. The seminar is free but limited to the first 25 students on a first come, first served basis.

As the credit industry tightens, seminars like this could save a consumer literally thousands of dollars in annual interest rates by managing credit more effectively and maintaining a high credit score. Credit is becoming increasingly harder to get and more expensive for those that have it so a strong credit score is a necessity.

Seminar attendees will receive a free copy of Quicken Starter Edition 2008. Quicken is personal finance software that helps users to track bills, create a budget, track personal spending and manage online banking accounts from one central location.

World of Warcraft Rewards Visa offers game time with purchases

2009-07-27T03:36:27Z

The World of Warcraft Rewards Visa card is the first of its kind to use game time as a reward rather than cash or travel incentives. The card gives World of Warcraft fans an opportunity to display their interests by choosing one of thirteen themes based on character races, horde, alliance and the World of Warcraft logo.

The card benefits are of even greater interest with cardholders earning game with one point for every dollar spent. 1,500 points are equal to one full month of game time. The card is promoted as “the only card that pays you to play”. Card members will also receive one month of game time for the first purchase made using the World of Warcraft Visa card.

The card has no annual fee and a zero percent APR on all purchases and balance transfers for the first sixth months. The card has no maximum number of points available and points are valid for five years after being posted.

PetRewards Visa credit card offers perks for pet lovers

2009-07-27T03:30:01Z

Bank of America and Hill’s Pet Nutrition have partnered to offer the PetRewards Visa card, a new credit card with rewards for purchases for pets. The new card can be customized with a pet’s picture for those consumers eager to show off their fur babies.

“Many of us have a spot in our hearts for our pets,” Marsha Schonekas, PetRewards marketing manager at Bank of America said. “This credit card is a great way for consumers to help with expenses or make a donation to an animal shelter, while at the same time giving us another way to show off pictures of our pets.”

The new PetRewards Visa gives cardholders two reward points for every dollar spent at participating veterinary clinics, most major pet retailers, farm and feed stores and many neighborhood pet specialty stores. Cardholders also earn one point for every dollar on non-pet purchases.

The card offers 500 bonus points with the first purchases made; and consumers can earn up to 100,000 points each year. Points can be redeemed for Hill’s Science Diet or Prescription Diet brand food certificates, rebates at veterinary clinics or donations to animal shelters.

“We are pleased to bring to market the first and only PetRewards card for pet owners,” Stefano Pettinella, associate marketing director for Hill’s Pet Nutrition, said. “Its an innovative tool for them to offset expenses regarding veterinary services, pet food and donations to shelters.”

The Card comes with no annual fee and a zero percent introductory APR.

Motor vehicle offices make paying easier by accepting credit

2009-07-25T05:16:26Z

Residents of Douglas County, Colorado might find a trip to the motor vehicle office more convenient now that credit cards are accepted. The county has made the decision to accept credit as well as personal checks and cash in an effort to better serve customers.

Credit cards may be used for all over-the-counter services in addition to online vehicle renewals.

The new perk carries a small fee. In addition to the payment transactions, credit card users will also be charged an additional 2.7 percent administrative fee. The fee is not additional revenue to the state or county. It is a charge by the company providing the new credit services.

What are bad credit card charges?

2009-07-25T05:19:36Z

Credit card issuers look for any indication that a consumer might be struggling financially. Companies are lowering limits, raising interest and now monitoring some card charges in an effort to protect themselves against rising consumer charge-offs.

In order to protect yourself, there are some purchases that should be made in cash or with a check to avoid monitoring processes.

Robert Manning, author of “Credit Card Nation” says there are some things that should just never go on a credit card. Those are traffic tickets, cash advances, lottery tickets, repeated liquor purchases and adult entertainment purchases.

Cash advances and lottery tickets might signal financial struggles to a credit card company. Repeated liquor purchases show that a person might not be making responsible choices. Manning adds that adult entertainment is a sign of problems at home, which are often a result of financial issues.

While any of these purchases might just be a one time indulgence, to a frightened credit card industry they are red flags that a customer might be struggling financially and could soon fall behind on credit card payments.

One other big red flag for companies is a sudden change in shopping habits from high end to mid-level or low end stores. Some consumers have reported a lowered credit card limit after making repeat purchases at discount retailers after formerly shopping at higher end stores.

While it is a bad idea to try and maintain old shopping habits with a change in finances, consumers can reassure credit card companies by continuing to stay current on bills and paying more than the minimum whenever possible. If card limits are lowered, call the company to find out why. If an intended purchase could be considered a “vice,” stop at an ATM to avoid the potential hassle.

Credit is still available for those with poor scores

2009-07-24T05:32:43Z

Although it can feel near impossible for consumers with low credit scores to get a credit card, there are available options. The terms may not be preferable but these cards can help rebuild a bad credit history. While some credit card offers for those with bad credit can seem like a trap, if used wisely this opportunity can help pave the road back to financial freedom. The cards may have higher interest rates, higher fees and be less forgiving, but for those ready to use credit responsibly, these cards could be a useful first step.

Most importantly, consumers should make sure they are in a financially stable position before taking on a new card — especially a higher risk card. Since the cards often come with higher rates, it is imperative to pay balances off in full as soon as possible.

A good plan for consumers to follow is to select the best card for which they may qualify. Use the card to make a single but significant purchase. Don’t waste the card on small trips that quickly add up. Buy one big-ticket item that is necessary. Make a big enough purchase that it will take more than one month to pay off in full, but small enough to pay it off within three months. Ideally the purchase should be about 20 percent of the maximum credit available. A part of a credit score looks at the available credit compared to debt. A low ratio is better.

Many consumers fall even more deeply into debt by overusing a card for which they qualified and quickly racking up high payments due to the high interest rates these cards traditionally carry. This situation may be avoided by storing the card out of convenient reach.

Make monthly payments on the card and submit them before the bill is due. If possible, make the first payment immediately after the purchase is processed. Pay the card off quickly.

Do not think of this type of card as a permanent credit card, but rather as a temporary solution to help rebuild a poor credit score and help earn a credit card with more attractive interest rates.

Visa tests mobile alerts for card customers

2009-07-24T05:07:54Z

As consumers look for more ways to protect their money and credit scores, Visa responds with a new text messaging service. The service is being touted as a way for customers to deal with card fraud and have more tools for money management.

A text message will alert the cardholder every time the card is used. Consumers are notified of where transactions occur and the amounts of the purchase.

“We want to offer cardholders the reassurance of knowing, in real time, exactly where and when their card is being used,” said Sandra Alzetta, senior vice president of innovation and new product development at Visa Europe. “If something looks suspicious, this will give them the power to put a stop to any fraud taking place on their cards.”

The new system is being tested with Visa UK staff and members banks. If the initial system trials are successful the service will be offered to Visa cardholders. Cardholders can choose to receive updates through text messaging, mobile emails and various Smartphone applications such as Apple’s iPhone .

“These notifications help cardholders monitor their card activity on a regular basis,” Alzetta said.

Credit card growth increases despite economic problems

2009-07-24T05:05:18Z

The global economy is sinking and new laws are cracking down on credit card companies, but that hasn’t slowed credit card growth. Visa is leading the charge on international growth. Visa currently controls approximately 60 percent of the U.S. credit card market, followed by MasterCard with 26 percent.

Visa and other credit markets expect new growth in Europe but even bigger growth in new emerging markets. Many developing countries are just now introducing credit for transactions rather than cash. In those markets the growing middle class offers the biggest potential for credit card growth.

Within the U.S. more people are switching to shopping online for daily necessitates such as groceries and paying bills electronically, boosting the credit card market. Card companies profit by charging a fee for every transaction made using a credit card.

Currently, about 45 percent of all U.S. purchases are electronic. The electronic purchase market is forecasted to grow by about two percentage points annually for the next several years.

Bank Accounts now a factor when qualifying for credit cards

2009-07-24T06:19:23Z

Many factors help determine the terms of a credit card agreement. Previously, credit score, debt, and personal loans were what companies checked into. However, many credit card issuers are being to look into how much money is in your bank account.

So far, banks such as Wells Fargo, Capital One and Bank of America are the first to begin examining a customers bank account in the hopes to prevent customers from overextending themselves.

"Looking into a customer's bank account may shed some light on their future habits for the companies issuing the cards", Robert Hammer, CEO of investment bank R.K. Hammer, said. "Customers who are reckless with their bank accounts tend to have a similar attitude towards their credit cards."

"Consumers may be better suited looking outside of their bank when getting a credit card as they may be able to get a better deal by separating their bank account from the credit card", Ruth Susswein, deputy director of national priorities Consumer Action, said.

Consumers with credit card debt may also want to consider avoiding crdit cards that offer rewards programs, because according to a University of Toronto study, consumers tend to use their credit cards more with cards that offer rewards.

Picking the right approach to paying down credit debt

2009-07-23T00:32:05Z

Many credit card users make the mistake of letting credit card debt escalate and not having a plan in place to pay down the debt. Without a plan and only making minimum payments on accounts debt can quickly accumulate to an out of control point. There are several different approaches to tackling credit card debt, and consumers should carefully consider which is best for them.

One of the most popular and advised approaches is to pay off the credit account that carries the highest interest rate. With this decision the most expensive debt is the debt paid off first so that as time goes on consumers make smaller and smaller payments as they work out of debt.

This approach may be overwhelming for those with higher amounts of debt and feel that they can’t make payments on high interest cards. Call the card issuer to ask if they will work with you to lower interest rates, accept a smaller minimum payment or allow a longer grace period.

An alternative approach is to pay off accounts with the lowest balance first. This approach offers fast results to a credit score. Credit scores are generally higher for those with fewer credit accounts so paying off one account can be a big boost.

Consumers may choose to begin paying off the account that currently has the highest balance. This again can have a big effect on credit scores. A part of the credit score is the debt to available credit ratio. By paying off cards with high balances or those that are closest to the card maximum credit scores will improve.

A final option is to pay of the card that is used the most. This isn’t necessarily the card with the highest balance but the card that offers the best rewards and is used for the day-to-day purchases. By keeping this account low it keeps the account available for emergencies.

Choosing an approach to credit card debt is a step that many people never take, but is an important money management step that can make debt less overwhelming and help consumers stay financially healthy.

Washington Redskins release new Visa card for fans

2009-07-23T00:29:36Z

Now Washington Redskins fans can show team spirit with a new NFL Extra Points Platinum Visa Credit card from Bank of America. The newly released card is proving to be popular not only for the logo and team support, but also for the many rewards and bonus points available.

Card members will receive a $25 NFL Shop gift card after the cards first transaction and an additional 20 percent off all purchases made with the Redskins card at NFLShop.com and the NFL shop catalog.

The card offers reward points that can be redeemed for a variety of memorabilia, tickets, collectibles or even cash back. One point is reward of every $1 in net retail purchases and there is no limit on points earned. The points can be redeemed at any time within a 5-year period after earning the points.

Some examples of point rewards are a $50 NFL Shop gift card, a VIP tour of NFL films, two VIP passes to an NFL Kickoff event or even two Super Bowl Tickets.

The card has no annual fee and a zero percent introductory APR on balance transfers and check cash advances for 12 billing cycles. After the introductory APR the card takes on an APR between 9.9 percent and 15.99 percent depending on credit.

Urban Trust Bank and Visa partner to offer new prepaid card

2009-07-22T03:05:31Z

Urban Trust Bank is teaming with Visa to offer the Urban Trust Success Card in an effort to become a leader in the prepaid debit market. The Urban Trust Success Card is a prepaid card offered to the existing customer base of Urban Trust Bank, which includes 24 branches throughout Florida and Maryland, as well as online.

“Urban Trust Bank's mission is to strengthen communities by expanding access to banking services for families, small businesses and individuals,” Robert L. Johnson, chairman of Urban Trust Holdings, Inc. said. "Through our partnership with Visa, consumers will have the financial freedom to use the Urban Trust Success card everywhere Visa debit cards are accepted.”

“Visa Prepaid cards provide a much more efficient alternative to a cash and carry lifestyle, empowering consumers with a convenient way to make everyday purchases, pay bills, transact online and receive deposits,” Bill Sheedy, president, North America, Visa Inc. said. “We look forward to working with Urban Trust Bank to grow Visa Prepaid products, enhance our prepaid services and expand access to convenient and secure payments, especially for those consumers without traditional banking relationships.”

The card is accepted at all Visa locations and cardholders may also add funds to their card through Visa ReadyLink, Visa’s prepaid load network, at nearly 50,000 participating merchant locations nationwide.

Choosing the credit card with best cash back rewards

2009-07-22T03:11:35Z

Many credit card providers offer a variety of cash back rewards; but it’s worth reading all of the fine print and comparing offers before making a card choice. Various cards offer different rewards for purchases from different retailers, so matching a card to spending habits is a critical step in choosing the right credit card.

Some cards have different annual fees. If possible, choose a card without an annual fee. Ask for the fee to be waived or pick a card with the lowest annual fee.

Make the most of the rewards by selecting a card without a cash back limit. Some card issuers will include a maximum amount to be rewarded (this is usually only found in the fine print). A card without a maximum reward amount is the best selection.

Most cards offer a higher percentage in cash back rewards for certain purchases such as groceries, gas, airline purchases and event tickets. Wherever the most money is spent using the credit card should be where the most rewards are earned as well. Some credit card issuers also partner with select retailers to offer discounts and increased rewards. This should also be taken into consideration when selecting a credit card reward program.

The most important point to remember, cash back rewards aren’t rewards if the interest rate on the credit card will be higher than the money earned back on rewards. A high balance with a high interest rate will quickly dwarf even the most generous of reward programs. Choose a card with the lowest interest rate and only spend as much on the card as can be paid off quickly to utilize the benefits without increasing personal debt.

Two credit companies report decline in credit card delinquencies

2009-07-22T03:09:09Z

American Express and Capital One both reported a decline in credit card delinquencies for the month of June. This is one small sign that the economy may be turning.

As consumers gain more financial stability it is reflected in declining delinquencies in the credit card industry. Although unemployment rates are still climbing, positive credit card news is positive news for the economy. The trend suggests consumers are making ends meet and staying current on financial obligations and bills.

American Express reported in a regulatory filing that customer credit card accounts that are at least 30 days past due fell from 4.9 percent in April and 4.7 percent in May to 4.4 percent of all loans for the month of June.

Capital One reported similar data with a delinquency rate for U.S. credit cards falling to 4.77 percent from 4.9 percent in May. This is the fourth straight month that Capital One reported a declining delinquency rate.

Store credit cards offer different perks

2009-07-21T00:16:53Z

The established big name credit card companies often have some of the best rewards programs, but for some consumers store credit cards are tough to beat. Store credit cards offer a more limited set of rewards directly linked to purchases at that business, but for frequent shoppers those rewards can add up quickly.

As the economy struggles and credit card issuers adapt to new credit laws, it can be increasingly difficult to qualify for credit for those with zero or poor credit history. Often, store credit cards are easier to qualify for than a major issuer credit card. This can be the first big hurdle to building credit. By qualifying for and then responsibly using a store credit card, consumers can begin building a stable credit history that will later allow them to qualify for other cards that were previously out of reach.

In the interest of building credit, store credit cards have a history of reporting regularly to the credit bureaus. If the card is used poorly this can produce a negative impact, but with some smart credit management steps this approach can quickly work to create a positive credit history. Store credit cards often have low limits so consumers should keep this in mind and try to never have more than 30 percent of the card maximum on the card at any time. Even if the card is payed off in full each billing cycle, a high balance on the credit report still reflects poorly.

Often card issuers report to credit bureaus before sending out bills. Credit card owners should pay off balances immediately after using the card and pay the balance off in full. This shows responsible activity.

Store credit cards have limited liability. If a purse or wallet gets stolen and contains store credit cards, the thief has to first track down the retailer to make purchases. While the card does still carry liability, it might be more difficult for a thief to track down an Ann Taylor or Nordstrom than to walk into any store and make charges on a Visa card. As with all credit cards, owners should immediately notify the card issuer immediately of any lost or stolen cards.

A final benefit to a store issued card is the store discount. While a 15 percent discount may seem insignificant on a $20 purchase, for those who know they will be making a major purchase, it might be beneficial to open a card, use it for that purchase and then pay off the account immediately. This method should be used only for major or regular purchases.

Applying for multiple cards offered by multiple retailers will hurt a credit score. Each time an inquiry is made about a credit score, such as a retailer checking customer eligibility, the score may go down a point or two. Save the store cards for the one or two most frequently used retailers, or for big
purchases when the discount is significant.

Bank of America offers cash back program

2009-07-21T00:12:47Z

Bank of America unveiled its new, "Add it Up" shopping Web site, which will provide customers cash back on top of retailers' discounts and credit card rewards. All online banking customers can register their eligible credit or debit card for free.

Once registered, customers log into their Bank of America online banking account and access the Add it Up page to view current discounts from over 270 retailers. Featured purchases with the registered Add it Up card are eligible for up to 20 percent cash back of the retailer's discount price.

“With Add It Up, Bank of America is giving customers a new way to stretch their money by getting cash back on purchases from hundreds of retailers they do business with regularly," said David Owen, Checking and Debit executive for Bank of America.

Eligible transactions for Add it Up cash will be paid out monthly giving consumers' bank accounts a little boost to make up for past purchases. Plus, Add it Up is in addition to other Bank of America reward programs like Keep the Change.

Steps to take if credit cards or numbers are lost or stolen

2009-07-17T04:07:18Z

Credit cards, ATM cards and debit cards are widely used to make purchases, both in person and electronically, creating opportunities for thieves. Not only can cards get stolen or lost, but the numbers can be stolen as well.

A lost credit card is quickly noticed, but sometimes the only way to realize that a card number has been stolen is when unauthorized charges appear on accounts. Checking all accounts regularly is the best way to protect from fraudulent charges.

As soon as a card is stolen or lost a few steps can save years of struggle to regain a stolen identity. The Fair Credit Billing Act and the Electronic Fund Transfer Act have safeguards in place to limit liability for fraudulent charges as long as the correct procedures are followed.

Immediately report the loss or theft of cards to the institution that issued the cards. Give as much information as you can, such as when you noticed the cards where stolen, where you where when you noticed the cards were stolen and what the last purchases were that you made with the card.

The bank will ask about the last authorized chargers in order to immediately check for unauthorized charges to accounts.

The toll free numbers to report lost or stolen cards can be found online, but it is highly recommended to find the numbers and create a list to have on hand so that time isn’t wasted looking for the numbers if they are needed.

Under the protective laws, the maximum liability for unauthorized use of a credit card is $50 for each card. If the loss is reported before the credit cards are used then the cardholder cannot be held responsible for any unauthorized charges. Fraudulent charge liabilities are capped at $500 for debit cards.

After reporting a card lost or stolen, ask that the card be deactivated and to have a new card with a new account number mailed immediately.

Pentagon Federal Credit Union Visa offers benefits for military personnel

2009-07-17T04:19:58Z

Pentagon Federal Credit Union Visa Platinum rewards card offers great rewards and benefits at a low interest rate. The first step is becoming a member of Pentagon Federal Credit union, which specializes in serving the military. Active and retired military personnel and their families are among those who can join the credit union.

There are two different rewards cards available, the Visa Platinum Gas Cash Reward or the Visa Platinum for Travel and Merchandise Rewards — each with it’s own benefit and reward options.

The Visa Platinum for Travel offers 2 percent cash back on supermarket purchases, 5 percent cash back on gas purchases paid at the pump and 1.25 percent cash back on all purchases during each billing cycle. Cash rewards are credited each month. The card also offers a 5.99 percent fixed APR for the life of an original transferred balance. The card has no annual fee and up to a $50,000 limit.

The Visa Platinum for Travel and Merchandise Rewards features the same fixed APR for the life of the transferred balance, no annual fee and up to a $50,000 card limit. The card offers one point for every dollar purchase made with the card, redeemable for travel and premium merchandise. The big offering on this card is 1,000 free points upon opening the Travel Rewards account.

Pentagon Federal and Visa are also offering a student card with a $500 limit for college students. The card is in the student’s name to begin building a strong credit history. The card offers 13.99 percent APR, 5 percent cash back on gas purchases paid at the pump and 1.25 percent cash back on all purchases.

Schwab Bank Invest First Visa credit card makes investing a priority

2009-07-17T04:14:32Z

Schwab Bank and Visa have partnered to create a credit card that automatically deposits cash back rewards into a Schwab One brokerage account each month. The Schwab Bank Invest First Visa Signature card offers unlimited 2 percent cash back on all purchases to be transferred into a Schwab One brokerage account for easy investment management.

The Schwab Bank Invest First card has no cash back limits and no minimum purchase amount. There are no annual fees and no finance charges on international purchases. The card offers a 2.99 percent introductory APR and a competitive variable APR depending on credit scores and credit history.

Those qualifying for a credit line of $5,000 or more will enjoy the added Visa signature benefits of Visa Signature dining with Zagat ratings and reviews, access to preferred event tickets and no present spending limits.

Current Schwab One customers with a brokerage account may apply for the Invest First card online. Customers without a brokerage account may apply for the Invest First card, and upon card approval, open a Schwab One Brokerage account to receive the unlimited 2 percent cash back rewards.

Most common way thieves steal credit card numbers

2009-07-16T03:30:48Z

Credit card theft is an increasing problem and thieves are getting more clever in the ways they obtain personal information to make fraudulent charges. With increased awareness consumers can safeguard themselves against theft.

Below are some of the most common tricks that credit card thieves use to obtain important credit card information.

Prize giveaways: Often, thieves use giveaways or prizes as a lure to gain credit card information. Targeted consumers may be asked to verify a credit card number and expiration date in order to claim a prize or earn a discount on a product. A legitimate company will never ask for your credit card number via e-mail or Internet pop-up.

E-mail warning: Another popular scam is an e-mail claiming to be from a legitimate banking institution or credit card issuer notifying you that your card has been fraudulently used. Typically such e-mails request verification of a credit card number to ensure that it was your card that was being misused. Most concerned customers immediately respond in order to protect their finances. Consumers should not respond to such tactics. Instead, consider alerting authorities about such criminal impersonations of banks or credit institutions. A legitimate financial institution will never ask for credit or banking information over the Internet and you will never have to give a PIN number for any reason.

Theft: Credit card theft is a growing trend. A typical example is a store or restaurant employee with access to customer cards scans a card multiple times and fills in the amounts of the “extra” sales later. Another example is the use of a special machine to scan the card data in order to store the information to sell or use later. The best way to protect against this sort of theft is to never allow the card out of your sight. You should always be able to run the card yourself, or watch the employee do it.

The best way to protect yourself against credit card theft is never give out any personal information over the Internet or phone and keep the card in your possession. Check bank statements regularly for fraudulent charges and report any suspicious activity.

Money management to avoid credit card fees

2009-07-16T03:20:29Z

Credit cards are convenient but often come with a price in the form of fees and interest. With some planning it is possible to avoid many of the most common fees.

Annual fees were once the unavoidable price to pay for using a company’s card. However, as competition has increased to get new customers, most companies no longer charge the annual fee. If your current credit card company charges you an annual fee, it will often be waived with just a simple phone call.

When first applying for your card, be sure to check if there is an application fee. If there is, ask that the fee be waived or apply with a different company that does not charge an application fee.

Many customers are hit by balance-transfer and cash-advance fees when they transfer a balance to another card or withdraw cash from the card. To avoid these fees, again a phone call is also the answer. Weigh the pros and cons of a balance transfer. Sometimes, the lower interest rate on an alternative card will make up for the balance-transfer fee.

Late fees and over-limit fees are the most common in the industry. Late fees are the easiest to avoid with a little planning. Know what your balance is and when the payment is due. To avoid over-limit fees keep your balances significantly below the cards credit limit. This not only encourages responsible spending habits but also will leave you room for emergency charges.

Debit card “courtesy fees” often unclear and unexpected

2009-07-15T05:37:56Z

Debit cards tout the ultimate in convenience — access to cash at hand without having to write a check and wait for funds to process and transfer. But that convenience can come at a high and often unexpected cost.

A debit card links directly to a checking account, and in theory only allows the user to access funds they actually have. But most banks offer “courtesy protection,” allowing customers to charge more than they have available but with an overdraft charge for each purchase. In essence, the debit card becomes a credit card if the consumer over-spends with the bank covering the purchases.

“They [customers] are automatically enrolled in the overdraft protection program,” Carl Brown, bank spokesperson at Sovereign Bank, said. “That’s so the customer isn’t caught in an embarrassing situation at the grocery counter.”

Sovereign Bank is not alone in this practice. The Federal Deposit Insurance Corporation released a study that showed that 75 percent of FDIC institutions automatically enrolled customers in a fee-based overdraft. The fees provide lucrative opportunities for financial institutions. Insufficient-funds fees, also called overdraft fees, overdraft protection fees and courtesy fees, were estimated at $1.97 billion and made up three-quarters of banks’ service charges on deposit accounts.

The study found that overdraft fees ranged from $10 to $38 with a median fee of $27 per overdraft transaction. 81 percent of banks allow overdrafts at ATM’s and point-of-sale terminals. While allowing the overdraft transaction, 88 percent of banks only notified the customer after the transaction and the fee had taken place for point-of-sale transactions and 70 percent after ATM transactions.

PayPal and MasterCard offer virtual card

2009-07-15T05:28:41Z

Virtual credit and debit cards are a little known service that keeps personal payment information private by creating a one-time use number for online purchases. The PayPal virtual card is a MasterCard number used in place of a credit or debit card number. Each time a purchase is made online a new card number is generated to protect against identity theft.

The PayPal virtual card allows customers to access funds in a regular PayPal account, but with the virtual credit card number customers can designate an account limit and expiration date for that virtual card to protect against scams, overcharging or “opt-out” offers in which a card number is needed for a free sample that begins charging until the consumer can opt-out.

The virtual card is accepted anywhere that MasterCard is accepted. Virtual cards are not reported to credit bureaus since they are not linked directly to a credit or debit account but rather exist as a “pocket” of available funds for a specific purchase.

Western Union shifts loyalty program to Visa prepaid card

2009-07-15T05:20:55Z

Western Union, a money transfer service company, is making changes in to its Western Union Gold Card. The Western Union Gold Card is the company’s global consumer loyalty program and is now being replaced with a reloadable Visa prepaid credit card.

The new program will be launched in July for the eight million Western Union Gold Card loyalty members in the United States.

“Designed to better serve the needs of our money-transfer send customers, the new and enhanced debit prepaid Western Union Gold card will help strengthen our relationship and value proposition among our most loyal customers,” said Stewart A. Stockdale, executive vice president and president, The Americas for Western Union. “Providing each with increased convenience; and smart and cost-effective ways to better manage their money in what is becoming a cash-versus-credit driven economy.”

Western Union is launching the change in the loyalty program in response to a consumer survey in which one in four Americans say they are using cash more often than they have in the past. 88 percent of those using cash more often say it is to avoid high interest rates and fees charged by credit card companies.

A Visa prepaid card offers the convenience of using credit but without the draw back of escalating debt and interest rates. The Western Union Credit card has no monthly fees and funds can be added to the card at any of the 48,000 participating Western Union locations worldwide. The card is accepted anywhere that Visa is accepted and at ATM’s for cash withdrawals.

Citi offers two cards with 0% APR on purchases and balance transfers

2009-07-14T04:03:09Z

As consumers feel the credit squeeze, Citi’s offer of zero percent APR on balance transfers and new purchases might be a necessary tool to relieve credit stress. The Citi Platinum Select MasterCard offers a zero purchase APR on purchases and balance transfers for six months based on application and credit history. Customers with a strong credit score can also receive a low 11.99 percent standard APR.

The Citi Diamond Preferred card offers zero percent APR on purchases and balance transfers for up to nine months with approved application and credit history.

The Diamond Preferred Card has a standard purchases APR of 12.24 percent. The Diamond Preferred Card offers members special access to tickets for events, 24/7-concierge service and online discounts with extra cash rewards from Citi.

The cards also come without an annual fee.

Use credit card introductory offers to lower or eliminate debt

2009-07-14T03:57:36Z

While moving debt from card to card, or using credit to pay off debt is a risky decision, credit card offers with low introductory rates can be key to lowering debt. As credit card companies court new customers they offer low rates and fees. Many will offer a zero percent introductory APR on balance transfers for a limited amount of time. By finding the best offer, this might be one of the best options to pay off credit card debt without fighting against rising interest rates.

It is not simply a matter of finding the card with the lowest APR but reading all of the fine print and comparing a variety of rates. The first is to look for credit card offers online and compile a list of possible card offers with low balance transfer APRs.

Different companies will offer a low introductory rate for balance transfers but the duration of the offer will vary. One card may offer zero percent for six months and another will offer three percent for twelve months. Create a budget for the amount of debt to decide how long it will take to pay the debt off in full. Find the card with the lowest rate for the amount of time you will need.

Also examine the standard APR that the credit balance will revert to at the end of the introductory offer. It might be possible to pay the majority of a debt at a very low APR and have a small balance left over but that debt can grow very quickly with a high standard APR. If the debt will be paid off completely within the introductory time limit then there is more flexibility in choosing a card.

After choosing a card, verify that there are no additional balance transfer fees, when payments are due and what penalties are for a late and missing payment. If the card has a shorter grace period a small delay in a payment could send APR skyrocketing.

When using a balance transfer to pay off existing debt the benefits and rewards should be of little consideration. Remember, this card is not for new purchases, but simply to take advantage of the introductory offer to get rid of debt as quickly and cheaply as possible.

Protect credit against identity theft

2009-07-14T03:50:42Z

As the economy sinks and credit becomes harder to come by and more expensive for those who have it, identity thefts are becoming an even bigger concern. There are steps that consumers can take every day to protect themselves.

Keep your name and information out of circulation. Opt out of mailing lists and prescreened credit offers. This can by done by calling 1-888-567-8688 or online at optoutprescreen.com.

Mail can be vulnerability. Identify thieves can get all the information they need from a bill or other mail. Protect mail with a locking mailbox or a P.O. box. Mail bills out of secured mailbox as well. Have a neighbor pick up mail while you are away, or arrange to have mail held by contacting the post office.

Don’t apply for sweepstakes or free offers through the mail, phone or online. Applying for these offers usually puts your information onto large mailing lists that can be sold to other companies or scammers posing as companies.

Do not carry your social security number or give the information unless it is absolutely necessary. If a form asks for a social security number leave it blank or write “on request”. Ask why the company needs the information, how they protect and if there is a different number that can be used in substitute. You can insist that schools and hospitals assign a number other than your social security number as identification.

Check credit reports regularly. Consumers are entitled to a free credit report from each of the three major credit bureaus. Order a report from one agency every four months. Check that all accounts are familiar and that only authorized companies are checking the credit report. Report any discrepancies immediately.

Do not leave credit card information on a computer. Many programs store credit card numbers, addresses and passwords for convenience. Clear browser history to ensure that your information is not vulnerable to theft. Before entering credit account information online, look that the address starts with “https” the “s” indicates that it is a secure site. Other sites use an icon of a key that turns into a lock when entering a secure part of a site.

Finally, remember that a bank, credit union or credit issuer will never ask for a PIN or other password information

Wells Fargo Visa secured credit card helps rebuild credit

2009-07-13T03:47:42Z

Wells Fargo offers a Visa secured credit card as an alternative to traditional cards. The service is available for consumers with poor or zero credit history. The Wells Fargo secured Visa credit card empowers consumers to build or rebuild credit history while enjoying the benefits of using credit.

The secured card works like a traditional credit card and is accepted anywhere that Visa is accepted. The only difference is that a deposit is required. The secured deposit of $300 to $10,000 is kept in a “collateral account” and the credit line is equal to the secured deposit. Monthly payments are still required; the deposit is not a dwindling amount like a prepaid card, but rather insurance for the company in case the consumer defaults on the card.

After 12 months of responsible credit use with the Visa secured card, customers may be eligible for an unsecured Wells Fargo Visa credit card. All funds deposited into the collateral account of the secured credit card are returned.

The Wells Fargo Visa secured credit card offers free online account access to view charges and transfer funds, access to “My spending report with budget watch” a Wells Fargo money management tool, and allows the consumer to choose the monthly payment due date.

The card has an 18.99 percent APR on purchases and an $18 annual fee. Consumers 18 years and up are eligible to qualify for the card.

Steps to choosing the right secured credit card

2009-07-13T03:39:44Z

Secured credit cards are an attractive alternative for those who cannot qualify for a traditional card due to a lack of credit history or poor credit. A secured credit card allows the consumer to build or repair credit history. A security deposit protects the credit issuer and makes qualifying for the service easier than a traditional card.

Not all secured credit cards are the same and consumers should be just as diligent to pick the best card for their needs as when choosing a traditional credit card. A bank or credit union offering secured credit cards may also offer lower interest rates and fees to its members.

Different cards come with different fees such as: an application fee, annual fees and transaction fees. Consumers should read all of the fine print before selecting a secured credit card. Various cards may also have varying interest rates. Some banks may offer more attractive terms to a consumer lacking a credit history than someone with a bad credit history looking to rebuild. It pays to shop around.

Consumers should ensure their chosen financial institution reports secured credit cards to all three major credit bureaus. The biggest reward of a secured credit card is the chance to build a strong credit history, but some banks don’t report secured credit cards. Also, some institutions that do report payment history on a secured credit card may flag the card as secured, which could result in an asterisk on a credit report. Secured credit consumers should shop for an institution that reports payment history without flagging the account as secured.

All secured credit cards have fees and interest rates that are higher than a traditional, unsecured credit card. Consumers can use the service responsibly by making a few purchases and paying the card off in full each month. A responsibly used secured credit card can be a bridge to an unsecured credit card. Typically, unsecured credit offers will begin arriving in the mail within a few months of using a secured credit card responsibly. Consumers should make the switch but continue to be responsible with the credit available on an unsecured credit card. Canceling a secured credit card helps avoid fees and inactivity that could damage a rising credit score.

Secured Credit Cards will become best option for student credit cards

2009-07-13T03:27:35Z

When the Credit Card Accountability, Responsibility and Disclosure Act of 2009 becomes law, it will become difficult for anyone under the age of 21 to get a credit card. Starting in February of 2010 consumers under 21 will need a co-signer or proof of qualifying income when applying for a credit card.

As laws make it more difficult to get credit, a strong credit history will play an even more important role in determining who does and doesn’t get credit. Secured credit cards may soon become one of the most attractive options for credit users under age 21.

Secured credit cards function like a traditional credit card, but require a security deposit that is equal to, or some percentage of the credit card’s limit. The security deposit is a safety net for the card issuer in case of default. The deposit helps limit the liabilities of the company issuing credit.

Similar to a traditional credit card account, a secured card also requires a minimum monthly payment. Secured cards can be used for all purchases and the credit history is reported to credit bureaus. A secured card doesn't require a co-signer since the deposit acts as proof of income to repay all debts. As a consumer builds a strong credit history on a secured credit card, often the issuer will raise the credit limit or offer an unsecured credit card, which provides consumers a bridge to the traditional credit card market.

U.S. Bank and TACA airlines launce DISTANCIA Visa Credit Card

2009-07-13T03:25:02Z

U.S. Bank and TACA airlines, a premier airline to North, Central and South America, have partnered to offer the new DISTANCIA Visa and DISTANCA Visa Signature credit cards. The new cards will offer accelerated travel benefits and rewards to members of the DISTANCIA frequent flyer program. The DISTANCIA Visa cards are the only cards available to U.S. customers to offer DISTANCIA reward miles.

“TACA is a world-class airline that is recognized as best in class for its service to North, Central and South America, Mexico and the Caribbean,” said Pat Coll, executive vice president of U.S. Bank retail payment solutions. “We welcome them to the U.S. bank family and look forward to serving their loyal customers.”

DISTANCIA Visa offers one DISTANCIA mile for every $1 spent on the card, as well as an additional 15,000 bonus miles when first used. The card also offers up to 6,000 bonus miles with annual renewals and an industry leading, 25 percent excess budget discount.

Other benefits include: double miles on TACA Airlines purchases, no spending limit (currently), access to Visa Signature’s 24-hour concierge service, special offers from hotels, resorts and retailers, access to advance event tickets and travel and emergency assistance.

TACA is awarding 10 passes to fly free for a year as a sweepstakes promotion launching the new DISTANCIA Visa program.

Visa offers prepaid alternative to credit

2009-07-10T23:12:35Z

Visa has entered the market of prepaid cards with the Visa RushCard. The RushCard is touted as offering the convenience of a credit card without the debt - and its a safer alternative to cash.

The RushCard can be used like a traditional credit card with some benefits of a debit card. It's easy and free to add money to a RushCard by: signing up for free direct deposit, transferring money from a bank account or Internet PayPal account, using MoneyGram, writing a check or money order and having tax refunds deposited directly into the account.

The card does have some fees, such as: a $19.95 activation charge, $1.95 ATM cash withdrawal fee and a $1.95 inactivity fee. There is a clear schedule of fees posted online without surprises or sudden fee changes.

RushCard users don’t receive some of the benefits of a traditional credit card, such as reward points or cash back on purchases, but there are other benefits. Customers can sign up for Rush bill pay, an online bill payment system. The RushCard can be used to help build or rebuild credit with a free optional service. The RushPath to Credit is a free program that reports regular bill payments made with the card to credit reporting agencies.

The card also comes with money management tools such as free text alerts about the card balance, deposits and transaction information. The card also offers an online money management system with budgeting tools, graphics to track progress and text alerts if a budget amount is exceeded.

The RushCard application is available online. Consumers from age 13 and up can get approved for the card with a valid address and social security number to verify identification. Adolescents age 13 to 18 must have a parental consent form signed to be approved.

Hawaiian Airlines and Visa make travel more affordable

2009-07-10T23:08:54Z

During a struggling economy and tightening budgets, vacations are one of the first things to go as people reduce spending and shrink budgets. However, Hawaiian Airlines and Visa are trying to encourage travel with a new “Paradise Now” offer.

Northwest customers originating in Seattle, Portland, San Francisco, Oakland, San Jose or Sacrament can sign up and receive a 10% savings on two Hawaiian online fares for first or coach class round trip travel to Honolulu, Kahului, and Maui. The offer is even better for Hawaiian Airlines Visa credit card members. They can sign up for 20% savings.

“ No airline is more reliable or better at deliver the Hawaii vacation experience than Hawaiian Airlines,” Rick Peterson, vice president of marketing and sales said. “Now we’re offering added value at a time when people may be planning a fall or winter getaway to the warmth of our islands.”

Travelers must be a member of HawaiianMiles to take advantage of the new travel benefits. Membership is free and can be applied for prior to applying for the Paradise Now savings. New cards members will receive a sign-up bonus of 20,000 HawaiianMiles after their first card purchase.

The credit card application and Paradise Now savings offer are available online.

Get the most from credit during summer travel

2009-07-09T21:21:08Z

Credit is often the most convenient way to make purchases while traveling, but without being prepared, consumers find unexpected fees or other complications.

The most important thing to do when traveling and using credit, or even debit cards, is to notify the bank or credit issuer of travel plans ahead of time. Give them information about which locations to expect charges in and what sort of charges to expect. This will prevent financial institutions from canceling the cards to protect from fraudulent charges. Also leave the financial institution with contact information such as a mobile number or e-mail address to contact should questions arise.

Check conversion fees, international charge fees and exchange fees before leaving on travels. It is almost always going to be cheaper to pay in local currency so make sure the financial institution will make those conversions and at what rate. It will usually be cheaper to use a credit card than a debit card, but this depends on the card and institution. Don’t get caught off guard at the end of a trip; be prepared by reading the fine print first and including fees and part of the overall budget.

Most ATM’s charge fees, especially when using a card at an international location to get cash. It will almost always be cheaper to get a large sum of cash at one time rather than making several smaller withdrawals.

Be vigilant about keeping cards safe. Pickpockets and criminals often target tourists. Keep cards in a small pack that can be worn close to the body on a belt, or across the chest under outer layers. Do not carry PINs with the cards and do not give it out to anyone. A bank or other financial institution will never ask for a PIN.

Have a copy of bank and credit card lender phone numbers in a safe location. Write down all 24-hour contact numbers, numbers to report lost or stolen cards and numbers to put a stop on an account. Keep this list in a different location than cards.

Use credit cards for large purchases. Credit offers additional insurance and fraudulent charge protection. It is much easier to dispute a charge on a credit card than on a debit card if expectations do not meet promises on purchases or reservations.

Take a pre-paid card as a back up. Banks offer pre-paid cards as an alternative to credit. These are a great back up in case a card gets lost or stolen. Be aware of credit card limits as many banks have lowered limits recently. An over the limit card can end a vacation almost immediately. Many hotels place a hold on funds over the amount of the room to cover any room charge expenses. While these amounts will not show up on a final bill they will place a hold on available funds.

American Express returns attention to charge cards

2009-07-09T21:17:52Z

American Express announced a return to a charge card to lure back credit shy consumers. American Express had made an aggressive move into expanding its credit card sector and has not seen the expected results. This return to the charge card shows a shift in industry marketing as consumers react to the economy.

As the American consumer tries to cut back on credit and return to a more frugal life style, the charge card is gaining popularity. The charge card first launched 50 years ago and must be paid in full each billing cycle, rather than carrying a balance.

“People are migrating away from credit cards,” Ralph Andretta, general manager of card member services at American Express, said. “Quite frankly, more toward debit, and living for today, and paying for today.”

The charge card has an annual fee but will offer a membership rewards program. Card members can accumulate points to redeem towards the purchase of plane tickets, hotel rooms, event tickets and consumer products. The card also offers double reward points on gas and groceries purchases. There is no pre-set spending limit with the American Express charge card and consumers gain complimentary insurance benefits on purchases made with the charge card.

According to an American Express statement, charge cards offer the ultimate in convenience and consumer financial control. “Unlike debit and credit cards, with an American Express Charge Card…you must repay your full balance at the end of each month giving you total control over your expenses.”

Credit Union launches card with high purchasing power

2009-07-08T18:07:31Z

Texas Dow Employees Credit Union has entered the elite credit card market with its Onyx Card. The Onyx Card is available for members of the Credit Union with credit scores of more than 720. The Onyx Card offers revolving and non-revolving credit, and cardholders can access funds up to three times the line of credit.

“We worked with TNB to create this card to fill a void for members that use competing high-end credit cards,” Ron Wright, vice president of payment systems for TDECU, said. “We don’t just want a credit card. We want to offer an experience card.”

TDECU and TNB Card Services, the credit union’s processor, created the card to offer a card with a benefits package comparable to national, elite credit cards. The revolving credit limit works like a traditional credit card with a minumum balance due each month, or to be paid in full. The non-revolving credit is up to three times the credit limit and is due, in full, at the end of the billing cycle.

The card also offers 2% cash back rewards on all non-revolving credit purchases.

“We took a look at our entire membership and selected benefits that we felt would be attractive to our members from a brand and feature perspective,” Wright said.

New prepaid “credit” card for Muslim population

2009-07-08T18:03:30Z

In Canada it can be nearly impossible to accomplish many every day purchases without credit, but Canada has a Muslim population of one million people that follow law which forbids the charging or payment of interest.

According to the Canadian Bankers Association there are over 64 million Visa and MasterCards in circulation in the country, about two cards per person. Credit Cards are needed to book plane tickets and hotel rooms, to buy event tickets and rent cars. Many Muslim Canadians have credit cards for these purchases and pay the balance in full before interest is accrued, but one missed payment and they are in violation of Islamic law.

Omar Kalair, president of Toronto-based UM Financial, is launching a new solution to become available in August. UM Financial and the MasterCard affinity program have worked with Canadian pre-paid card provider Mint Technology Corp. to release a new pre-paid “credit” card. The iFreedom Plus MasterCard is aimed primarily at Muslims, but has appeal for other immigrants without a credit history and young adults who haven’t qualified for traditional credit cards.

“Not everyone needs an investment or a mortgage,” Kalair said. “But everyone living in Canada needs a credit card. A credit card has a higher penetration in the population.”

Kalair has spent the last five years working with Canada’s Muslim population to offer Sharia-compliant mortgages and saw the need for the convenience of a credit card without the interest that violates Islamic laws.

The iFreedom card has been designed to avoid common issues with other pre-paid cards. It will be embossed and can be accepted for all credit transactions and will provide a 1% cash-back reward for transactions over C$100. The card will be loaded with a pre-paid amount up to $6,000.

New bank issued credit cards down 38%

2009-07-08T17:58:23Z

The government has made many efforts to boost the floundering credit market, but banks are still not offering new credit cards to consumers.

New lending data from the Equifax Credit Bureau shows that in the first four months of the year banks issued 9.8 million credit cards, a steep 38% decline from the same period last year. Low-risk borrowers with high credit cards and a strong credit history can still get credit cards, but even they are getting less than before.

The average limit on new credit cards has fallen 3% this year to an average limit of $4,594. That is not the news that financial analysts were hoping for after all of the money that has been poured into the banking industry.

“The credit engine needs a tune up,” Jim Powers, an Equifax assistant vice president, said.

Historically credit issuers have continued to raise credit card limits and offer credit through economy ups and downs.

Industry analysts expect to see continued declines in the credit industry as new credit card laws take effect in Feb. 2010.

“Those will likely lead to even fewer cards being issued,” Mark Zandi, chief economist at Moody’s Economy.com, said.

Even more surprising than the decline in new cards issued and lower limits on the cards that are being issues are the many changes to accounts for current cards.

“What worries consumers groups, “Lauren Zeichner Browne of Consumers Union, said, “is that issuers are closing inactive cards and slashing limits even for responsible customers.”

Discover uses text messages to help customers manage money

2009-07-07T18:45:23Z

Discover Financial Services has launched a new program to allow customers to receive mobile reminders about accounts. Customers can register a phone number online to receive mobile reminds and then can select which notifications and reminders they want to receive.

“We know that many people are extremely busy and are looking for convenient solutions to ensure that they stay on top of their finances,” Sarah Alter, vice president of eBusiness at Discover Financial Solutions, said. “Mobile Reminders enable cardmembers to easily manage their accounts and get account activity updates from wherever they may be, without being in front of a computer.”

Customers can choose reminders for when payments are due, when payments have posted, when credit limits are being neared, when payments have not been received, cards and refunds, and when statements are available.

Discover does not charge for the mobile reminders. The only associated fees are received text message fees from phone service providers.

Credit offers many benefits over debit

2009-07-07T18:34:25Z

Debit cards are quick and convenient, but for those that pay credit card balances in full each month, credit offers many more benefits to consumers. Curtis Arnold, founder of cardratings.com discusses five areas where credit beats debit.

Dispute Protection. If a charge has to be disputed it is much easier to protect money that hasn’t already left a bank account. If a debit card was used to make the purchase the money has already left the account and must be re-credited. Purchases made using a credit card are generally credited very quickly, often before the end of a billing cycle.

Fraudulent Charges. A missing card can immediately be used for fraudulent purchases of many kinds. Banks provide some protection against fraudulent debit card purchases but unauthorized debit card purchases are harder to dispute and can take weeks before the money makes it back into the account. Federal Trade Commission rules hold the account holder liable for up to $500 of debit card fraudulent charges. Credit card fraudulent charges are easier to dispute, don’t immediately create out of pocket expenses and the FTC caps fraudulent credit card purchases at only $50.

Extended Manufacturers’ Warranties. As customer buying incentives, many credt card issuers partner with retailers and manufacturers to extend warranty periods on consumer items.

Credit Card Purchase Protection. Many credit card issuers add value for customers by insuring recent purchases against theft or damage for 30-days after the purchase. This varies by card issuer.

Bank Overdraft fees. Arnold calls this benefit “avoiding the hassle factor.” Many banks allow several overdraft purchases before allowing the card to be declined. Each of these purchases carrying its own overdraft fee with the bank and merchants. Credit cards insulate from these fees and headaches.

“Remember that enjoying the added value of carrying credit cards doesn’t have to result in extra credit card debt,” Arnold said. “By paying down your purchases in full every month, you can get all of the benefits of responsible card usage without any of the downside. I love making my cards work for me instead of being enslaved to my credit card companies like so many consumers.”

Time and perseverance can protect and raise credit scores

2009-07-07T18:24:19Z

Credit is increasingly harder to get and the price of using credit continues to rise. But by taking care of current credit scores and working to increase them, it is possible to escape this new credit crunch.

The trick to keeping a credit score high is knowing how the credit industry works.

“They [credit card companies] realize people often live off their credit cards,” Marc Chase, head of Mycreditgroup.com , said. "You can pay it off when it's due and assume you're OK, but what they do is report your balance to the credit-reporting agencies, then mail your bill. While you're making sure your payment is on time, everyone else is seeing that you've maxed out your card, not that you've paid it off."??

Chase recommends finding out when a card company sends monthly reports to credit agencies and then send payments ahead of that date.

Another important factor in credit scores is the debt-to-credit limit ration. Chase says to never be 20% over available credit and others recommend 30%.

Even a small missed bill can slip unnoticed and end up at a collection agency. Having a collection agency show up on a credit report is one of the top reasons for a low credit score. Create a file system that every bill goes into and does not get moved out of until it is paid in full.

While these all seem like small fixes, they can drastically improve a credit score and save hundreds in interest and fees.

But for those who have already fallen behind on credit payments there is still time to stop the losses and begin to recover. Plan on spending a lot of time on the phone, but keep making calls until someone can make changes to a contract.

“It’s sometimes a matter of a lot of calls,” Chase said. “ It might take 10, 15 calls before you get someone who can negotiate a contract…. It could take a full day of phone calls.”

Chase says that once the right person is contacted to be up front about the problem and what is leading to the missed or late payments and keep asking what options are available. Some agencies can dramatically reduce interest for a short period of time or lower minimum payments. What ever is agreed upon, forms will be mailed and then should be sent out and mailed as quickly as possible.

While many of the debt relief agencies currently being advertised are not reliable, there are many honest agencies available through the Better Business Bureau and credit counselors that can help negotiate with creditors on your behalf.

Hyundai guarantees $1.49 gas for a year with a valid credit card

2009-07-07T18:14:37Z

As gas prices roll over the $3 mark, Hyundai announced a new program guaranteeing a year’s worth of gas at $1.49 per gallon on most Hyundai models leased or purchased between July 1 and Aug. 31. To sign up for Hyundai Assurance Gas Lock, new Hyundai owners register a valid Visa, MasterCard, American Express or Discover credit card, or a Visa or MasterCard check card at Hyundai.pricelock.com.

“Our programs are designed to address customer needs,” Chris Perry, directory of marketing communications at Hyundai, said. “The ones they are talking about around their kitchen tables.”

After the new Hyundai owner registers their valid credit card they will receive a new Hyundai Assurance credit card to use for gas for the next year. The customer will be billed $1.49 per gallon for regular grade gas and Hyundai will cover the difference. Customers can also choose to purchase mid-grade gas for $1.64 per gallon and $1.79 per gallon for premium gas. Customers are eligible to purchase a maximum number of gallons to equal 12,000 miles.

"Hyundai Assurance is a unique platform because it enables us to partner with consumers in ways that address their immediate concerns," Joel Ewanick, vice president, Marketing, Hyundai Motor America, said. "We've extended Hyundai Assurance to cover gas prices just as peak summer demand traditionally strains budgets further, guaranteeing most new Hyundai owners a year's worth of low gas prices. It's another way we show consumers that, in this downturn, we're in this together, and we'll get through it together."

Customers taking advantage of the Assurance Gas Lock program will want to make sure to stay current on credit card bills. If the customer falls behind on the valid credit or check card used to register for the Hyundai Assurance card, the Assurance card will be deactivated until the coordinating card is reestablished.

Visa and McDonald’s partner in employer-based financial literacy program

2009-07-06T16:00:43Z

Visa and McDonalds are offering free comprehensive money management tools to more than 500,000 restaurant-level McDonald’s employees in an effort to increase financial literacy and responsibility.

Employees who are apart of the “McDonalds Practical Money Skills” program will receive a Wealth Watchers budgeting guide to track expenses and access to instructional videos and a web resource center. The program is based on Visa’s “Practical Money Skills for Life” financial education program and is being made available in Spanish and English.

“Empowering Americans with the knowledge they need to make informed financial decisions is crucial,” Bill Sheedy, president, North America, Visa Inc., said. “A challenge of this size requires an equally large response, which is why we are proud to be working with McDonald’s on this innovative financial literacy program for their employees.”

The program was, in part, a response to the JumpStart Coalition for Personal Financial Literacy that showed that a majority of high school seniors in America failed a test on basic personal finance.

“The McDonald’s Practical Money Skills program is part of our ongoing commitment to provide a wide-range of benefits to our employees,” Steve Russell, USA McDonald’s Chief People Officer, said. “Providing information and education to our employees about the importance of financial responsibility has become increasingly important – now more than ever.”

Choosing credit before industry reforms begin

2009-07-06T15:48:31Z

Changes in the credit card industry are coming, but for those getting a credit card before the changes, Bankrate.com has issued guidelines for choosing credit wisely.

The credit card study examined the fine print policies of 20 platinum and reward cards issued by 10 credit card companies. The issuers in the study are American Express Co., Bank of America Corp., Capital One Financial Corp., JP Morgan Chase & Co., Citibank N.A., Discover Bank, First National Bank of Omaha, USAA Federal Savings Bank, U.S. Bank and Wells Fargo.

Bankrate.com used each company’s fine print terms and conditions to calculate actual fees and costs associated with each card.

One of the golden rules for picking a credit card, “Look for the ones that charge the lowest fees,” Ellen Cannon, managing editor at Bankrate.com, said.

The study found that USAA Federal Savings offers cards with the lowest fees currently available. It had the lowest fees with a $35 late fee and no over-limit fee. The zero over-limit fee is because USAA does not allow over-limit transactions. Rather than allow the transaction and charge a fee, the transaction is declined. The card also comes with no annual fee, no phone payment fees and a 25-day grace period.

As well as comparing all of the fees associated with the credit cards, the study compared each issuer's default APR range, how the interest rate is set, how payments are applied to the balance and minimum payment charges.

The study shows the importance of reading all of the fine print when choosing a credit card and the necessity of carefully examining each credit card statement to look for rate and fee increases or changes. As the new credit card laws get closer, many banks are increasing fees and credit terms.

Paying college tuition with credit card comes with a price

2009-07-06T15:54:54Z

An increasing number of college students are turning to credit cards to cover tuition bills, but now many public and private universities are including fees for credit card payments. The fees may seem low at the time but as students carry a balance, it could mean thousands of dollars more in the long run.

Credit has long been an accepted payment form, but for many universities the transaction fees are rising as more students pay with credit, so the fees have to be passed on.

The University of Illinois charges a 2.4% fee that “approximates the direct cost U. of I. incurs to accept credit cards,” Doug Beckmann, senior associate vice president for business and finance, said. The fee is “the only way U. of I. could afford to accept credit cards for tuition.”

Others think the practice is unfair and puts even more pressure on already cash-strapped students. DePaul has accepted credit cards for the last 20 years and plans to continue the practice without a fee.

“The University wants to minimize costs for students,” Robin Florzak, university spokeswoman, said.

The University of Chicago avoids the conflict by not accepting credit cards for undergraduate tuition payments.

As the number of students paying with credit has risen, universities have had to consider what policy is the best for them. According to a study by student loan company Sallie Mae, nearly one third of students charged tuition last year. That is a 24% increase from 2004.

Traditionally colleges bore the brunt of the 2% transaction fees for credit card payments, but for many it just wasn’t feasible any more. In 2007, 26% of colleges charged a credit card transaction fee according to surveys by the National Association of College and University Business Officers.

While for some students credit is the only option, even if it means the added costs and fees, advocates for keeping college affordable recommend never turning to plastic to pay tuition.

“Using a credit card for tuition is already risky,” Lauren Asher, president of the Project on Student Debt in Berkeley, Calif., said. “Paying extra fees just makes it riskier.” She said that students or parents should seek out low-cost government-backed loans to pay for college before using credit cards.

Banks increase fees and interest rates ahead of federal protection laws

2009-07-06T05:53:15Z

The banking industry received a large bailout but is not showing the same forgiveness to the people who will have to fund that bailout.

Credit-card industry experts and critics expect a new wave of increased fees and loan agreement changes. The changes are expected to hit before the new credit-card protection law comes into effect early in 2010.

Some of the forecast changes include spikes in interest rates and increased minimum monthly account payments even if payments have been made on time.

JPMorgan Chase recently announced that some accounts will receive a 3% increase on minimum required monthly payments on unpaid accounts, rising from 2% to 5% on Aug. 1.

Other credit-card issuers such as Bank of America and Citi Bank have made similar changes such as raising rates, changing loan terms and reducing credit lines.

Banks are quick to say that the changes are not in response to the new law, but rather are tied to the struggling economy and increasing credit card defaults. The current default rate is estimated at 10% of outstanding credit-card debt owed by Americans.

“The new federal law, passed last month, is not a driving force behind the changes,” Ken Clayton, a senior vice president at the American Bankers Association said. He did warn that restrictions by the government could end up hurting consumers if it forces banks to offer less credit.

He also indicated that this is only the beginning of increased rates and fees, and that they will continue to rise as long as the economy is still struggling during the recession.

Others outside of the banking industry saw the changes differently.

“Credit card companies are going to try and position themselves in front of the new federal laws by making term changes to accounts,” Richard Bove, an analyst at Rochdale securities said.

Travis Plunkett, legislative director of the Consumer Federation of America, said that he expects issuers to “try to get under the wire” with major account changes before the new federal laws take effect.

Visa Card supports young filmmakers

2009-07-04T02:55:00Z

Visa has released a Platinum Rewards Card in Partnership with the New York Film Academy to let purchases support the arts.

For each new, activated account, $50 will be contributed to the New York Film Academy Scholarship Fund. The fund awards scholarships to teenagers interested in studying filmmaking or acting in New York City or Los Angeles at the prestigious academy.

The New York Film Academy is aiming to raise $20,000 for the student scholarship fund.

As well as supporting the New York Film Academy scholarship, the Visa Platinum Reward card offers a 0% APR and no annual fees. The card also offers bonus points for free airline tickets, merchandise and cash-back on purchases at participating merchants.

The New York Film Academy Visa Platinum rewards called is a part of Visa’s “small way to make a big difference” card partnership program.

New credit card law keeps young people away from credit cards

2009-07-04T01:03:21Z

New credit card regulations are making it more difficult for people under 21 to qualify for a credit card. The new regulations are aimed at growing credit card abuse by teens who do not understand the responsibilities and requirements of using credit.

“Credit cards have gotten more young people in trouble than anything out there,” said Jeanne Glorioso, a certified financial planner and senior vice president of investments at Frost National Bank.

The new regulations are a part of the Credit Card Accountability Responsibility and Disclosure Act which recently became law.

The act will require someone who is younger than 21 and trying to obtain a credit card either to show they have independent means of repaying any debt extended, get an adult co-signer that is willing to take financial responsibility for the debt, or complete a certified financial education course or financial literacy course.

“I think it’s an excellent idea,” Glorioso said. “Think about it, a novel idea, you can afford to pay for the debt that you incur. For the young kids to get a Visa card and a $5,000 or $6,000 credit limit, they think it’s free money, and it’s not.”

Bridgehampton School Board to consider credit card tuition payments

2009-07-04T00:50:15Z

For parents struggling to pay tuition in the Bridgehampton School District, a decision to allow credit card tution payments could bring relief.

The Bridgehampton School Board members are currently considering allowing credit card payments for the out-of district students who pay tuition. The issue was raised for the second time in one month at a school board meeting. As the economy continues to sink, parents are struggling to keep up with tuition payments and the school board is trying to find alternative methods of receiving payments.

The school board is addressing the issue that the business office is functioning as a collections office on delinquent tuition payments and is searching for new payment options for struggling families.

“I’m against the effort we have to go through to collect tuition,” Joseph Berhalter, a school board member said. “I don’t think it’s fair to the business office or to the students.”

Board-members have agreed that allowing credit card payments might relieve some financial pressure and allow people to make payments on time. School Board Vice President, Elizabeth Kotz suggested adding language to the district contract to stipulate that credit card payments would only be accepted for on-time payments.

The school board has tabled the issue until a later meeting.

Finance study finds Discover most forgiving

2009-07-03T06:50:18Z

Discover Financial Services is one of the most forgiving credit card companies according to a Bankrate.com study.

Bankrate.com, an objective personal finance website, examined two cards apiece from the top ten credit card issuers, including Discover More and Discover Motiva. The study found that Discover was among the most forgiving credit card options, offering one of the longest grace periods, low introductory APR and a lower minimum payment charge than many other cards.

The Bankrate.com study found that all issuers raise rates at any violation of the credit agreements, but some companies are more lenient than others. Discover raises interest rates for late payments or if the account is over the credit limit twice. USAA was another more lenient company, raising rates after two missed months of minimum-due payments. Other banks in the study were found to raise rates after a single error.

Grace periods, the period of time that a purchase can be on the account before being charged interest, were also examined in the study. The grace period ranged from 20 to 25 days, with Capital One, Discover, USAA and Wells Fargo all offering the 25-day grace period.

The Bankrate.com study also looked at the credit cards' cash advance fees, payment-related fees and other fees, introductory and default APR, and interest rates. The information found at Bankrate.com can help determine which card is best for consumer needs and spending habits.

BankRate.com 2009 Credit Card Study

American Express and Delta SkyMiles offer double miles

2009-07-03T05:20:23Z

The skies are a bit friendlier for DeltaSky members carrying an American Express SkyMiles credit card.

July 1 through Dec. 31, 2009 DeltaSky members will earn double flown miles on all Delta and Northwest flights. New and existing card members simply register online at deltadoublemiles.com by Sept. 30, 2009. Any flights completed on or by Dec. 31 earn the double miles reward. The flights do not need to be purchased using the American Express SkyMiles credit card. Previously booked travel is also eligible for the double miles promotion.

“In one of our longest and richest promotions ever, Delta SkyMiles Credit Card members can receive double flown miles for the next six months, plus all of the other great benefits they usually enjoy," Jeff Robertson, Delta’s vice president of loyalty programs, said. “Additionally, our merger with Northwest creates the world’s largest airline and enables members to earn miles on more than 16,000 flights daily and redeem them for travel to more than 382 destinations across six continents.”

New card members can apply for a credit card and register online for the double flown miles promotion, receive 20,000 bonus miles with the first card purchase, and earn an additional 2,500 miles when adding a new Card member to the account. The card has no annual fee for the first year and a $95 annual fee after the first year with a 9.99% prime ARP on purchases.

Delta SkyMiles

Budget is an Important Financial Tool

2009-07-02T05:35:27Z

Budgeting seems like a simple step towards financial stability, but it is a step that many people never take and even actively avoid.

“Many families have a very difficult time being realistic about what they spend and what they can afford to spend,” Diahnn Lassus, certified financial planner and certified public accountant with Lassus, Wherely &Associates in New Jersey, said.

A budget can be as simple as a list written out on a pad of paper, or a multi-tiered, computer generated spreadsheet. Many different spreadsheets can be found online. A budget only needs to function for those who have created and will use it. Yet, despite the ease and practicality of having a budget, many people don’t create one.

“This is by far the most important starting point. and for many the biggest stumbling block," Lassus said. “Sometimes, because people see it as something that once it is set, it's permanent, rather than developing a spending plan and recognizing that there are still choices.”

To create a successful budget or spending plan, it is suggested to begin by just tracking spending for two to three months to get an accurate picture of all spending habits. Keep receipts, write down all expenditures and check bank balances regularly. Don’t forget to write down the little things like the morning coffee and pack of gum at the gas station. The small expenses often add up to much higher costs than realized.

Once an accurate spending record has been created, examine it for what expenditures are necessary, which are frivolous and which to trim. Use this information to create a useful, working budget. Check actual spending against the budget regularly to keep accountable. Don’t be afraid to make adjustments to a budget if necessary.

A budget should not be feared as an uncompromising set of rules, but used as spending and saving guidelines that can be adjusted for important expenses.

Beware of Credit Negotiator Scams, Analysts Warn

2009-07-02T05:10:49Z

Many out of the proliferation of offers from so-called debt negotiation "experts" are part of the problem facing troubled borrowers, according to financial writers. An increasing number of blogs, columns, and advice forums are urging caution when it comes to trusting someone else to solve your credit problems.

One significant problem is that the companies that present themselves as non-profit organizations are not always legitimate.

"If you follow their advice and stop making payments, you will get even higher interest rates and late fees," a blogger wrote. "Your creditors might not like the idea of the debtor making only partial payments. Thus your debt might double or even triple."

The negotiators often charge a fee for opening an account, a monthly service fee and a final fee that increase the borrower's overall debt.

Those that promise to remove negative information from credit scores are particularly troublesome as there is no legal way to do that, according to financial writers. The only way to remove any information from your credit report is to challenge it and prove that it is incorrect.

Credit negotiation firms present their service as an alternative to bankruptcy. However, bankruptcy is a legal way to manage your financial situation.

Credit negotiation services are commonly lumped in with credit counseling and debt consolidation planning, which offer advice and help you to plan your budget to pay back your debt.

Credit card offers decline, annual fees increase

2009-07-02T04:15:31Z

U.S. households are now receiving fewer credit card offers by mail, but more of the offers they receive are for cards carrying an annual fee, according to Mail Monitor, the direct mail tracking service from Synovate.

During the first quarter of 2009, U.S. households received 67 percent fewer mail offers than the same quarter in 2008.

But, 27 percent of offers carried an annual fee during the first quarter of 2009, up 9 percent from a year ago.

"The new credit card regulations will substantially reduce the revenue for issuers. Increasing the number of cards with annual fees is certainly one way to make up for this shortfall," Bill Hardekopf, CEO of LowCards.com and author, said. "Consumers must pay attention to the offers they receive to see if the card has an annual fee. In addition, consumers need to look at the notices you receive in the mail or in your bill to see if your issuer has added, or even increased, an annual fee."

According to Mail Monitor, the mean bankcard annual fee is $74.

"Issuers will find other ways to increase their revenue," says Hardekopf. "We also expect interest rates to increase between now and February when this new law goes into effect."

Minimum payments starting to rise rapidly

2009-07-02T03:45:56Z

A New York couple with $25,000 in credit card debt, who say they haven’t missed payments, saw their minimum payment rise from $500 to $1,300 a month as their bank raised the minimum monthly payment from two percent to five percent.

The borrowers say the shift will force them into default, but credit card companies say they are forced to make the changes to address declining revenue from the recently passed Credit Card Act by the Obama Administration.

Bank spokespeople said the increases will affect select customers. Customers were chosen based on a number of factors, including amount owed, frequency of payment, and available interest rates. They refused to comment on exactly how many customers will be affected, according to published reports.

"You just have to Google this issue and you see tons of messages on credit card forums and blogs all about this," Carolyn Bidga, a writer with Money Magazine, said.

Bigda says with banks experiencing a record number of defaults, lenders are trying to get back as much of their money as they can – and quickly. The minimum payment hike essentially forces borrowers to pay off their debt in half the time.

Bank officials said borrowers worried about meeting the new minimums should call the 800 number on the back of their card. But Bigda warns that the phone call could lead to a lowered payment, but an increased interest rate.

An option, she says, is transferring the balance to a different card offering better terms. But, Bidga says, beware of high transfer fees.

Chase says the new minimums take effect in August.

Discover Financial Services upgraded by analysts

2009-07-02T03:38:12Z

Discover Financial Services was upgraded by an analyst on Monday, a sign the credit card company is strengthening its financial security.

Keefe, Bruyette & Woods Inc. analyst Sanjay Sakhrani upgraded his rating on Discover to "Outperform" from "Market Perform."

Sakhrani said the risks of continued instability in lending were considered into his earnings estimates. Also, the credit-card lender's portfolio has less exposure to some of the hardest hit areas, which suggests Discover's credit performance is likely to be better than other lenders, according to published reports.

Sakhrani said Discover’s portfolio is also a bit older and had less growth during recent years.

The company's networks are probably worth about a combined $1.5 billion, Sakhrani wrote in the note.

The networks could be attractive for a bank that already issues cards, but wants to build a network. It could also be attractive for another firm looking to just cash in on the flow of transactions being completed through the network, Sakhrani said.

Credit fees rise

2009-07-02T03:29:49Z

Banks reacting to Congressional changes in credit card policies have begun raising fees for certain customers, according to published reports.

Bank of America and Chase are increasing maximum balance-transfer fees, from 3 percent. Bank of America added one percent and Chase two. Chase is increasing those who can be penalized with a higher interest rate. infiBank is establishing a higher minimum APR on many cards, 15.99 percent and upward. Capital One and Citigroup will raise card rates for certain borrowers.

The new credit card laws will take effect in February 2010, and will limit when issuers can raise interest rates on existing debt and charge late and over-limit fees. It doesn't impose a cap on card rates and fees.

The banking industry blames Congress for higher rates and fees for passing the legislation despite warnings of higher fees by banks and lenders.

Scott Talbott, a senior vice president for the Financial Services Roundtable, which represents the nation's largest banks, told USA Today that the changes are a "natural result" of the new law: "The industry is restricted in setting credit terms based on the borrower's individual risk profile, so the price goes up for all borrowers," he said.

Sen. Charles Schumer, D-N.Y., and Sen. Christopher Dodd, D-Conn., have called unsuccessfully on federal regulators to impose an "emergency freeze" on rate increases on existing credit card balances, USA Today reported.

In a statement Monday, Schumer slammed issuers for trying to "wring more dollars out of their customers." Some of the changes in card terms, Schumer says, are "against the spirit of the law and ... just plain wrong."

As unemployment rises, so do U.S. credit card chargeoffs

2009-06-26T16:52:41Z

The Moody’s Investors Services saw the U.S. monthly credit card chargeoff rate beat a new record, surpassing 10 percent and hitting a six-month straight record high while unemployment also grew to a 26-year high.

The chargeoff rate index measures credit card loans that the banks do not expect to be repaid. The chargeoff rate rose to 10.62 percent in May from 9.97 percent in April, according to Moody’s.

"We expect the chargeoff rate index to continue to rise in the coming months but at a slower pace, as it peaks at around 12 percent in the second quarter of 2010," William Black, Moody’s senior vice president, said.

While the chargeoff rate rose, delinquencies fell to 5.97 percent from 6.34 percent in April. However, it was due to a seasonal trend, as consumers used tax refunds to pay back debts, and estimated delinquencies will resume their upward trend, according to a Moody’s spokesperson.

Statistically, as the unemployment rate rises, so do credit card losses, so Moody’s expects the chargeoff rate to continue to rise and peak by then end of 2009. With chargeoff rates surpassing 10 percent this year, loan losses in the credit card industry are estimated to top $70 billion.

As credit card debt rises, some states shine

2009-06-26T15:16:26Z

While the average credit card debt increased last quarter by 0.82 percent, residents of Iowa, West Virginia and North Dakota lead the nation in the lowest rates, according to a new study by TransUnion.

The study compiled data from nearly 27 million anonymous, individual credit files. According to TransUnion, average bankcard borrower debt, the aggregate balance on all bank-issued credit cards for an individual borrower, increased last quarter by 0.82 percent to $5,776.

"As the recession entered its sixth quarter, we saw continued increases in average bankcard balances, as consumers struggled to meet repayment obligations in a job market that continues to deteriorate," said Ezra Becker, director of consulting and strategy in TransUnion's financial services group.

Iowans recorded the lowest average bankcard debt at $4,300, followed by North Dakota and West Virginia, with average debt balances of $4,414 and $4,640 respectively.

The highest state average debt is in Alaska at $7,476 and Tennessee at $6,869, though overall the numbers reflected consumers relying more and more on credit to bridge the gap with expenses, according to Becker.

"This increase could be an indication that tax refund checks, typically used to pay down balances during the first quarter in years past, are now being used to cover daily living expenses," Becker added.

TransUnion also reports that consumers are falling behind on their credit card bill payments to the banks. On a national basis, the bankcard delinquency rate increased by 9.1 percent over the previous quarter's level.

American Express releases new teen-friendly charge card

2009-06-26T15:06:16Z

A new charge card designed for teens is effectively turning an American Express card into a family charge card.

The card gives parents the ability to set spending limits for additional cards on one account. AmEx is also issuing the additional cardholder cards with separate account numbers so that the entire account doesn’t have to be closed when one card is lost.

The new card features are designed to attract families who want to begin mentoring their children ages 15 and up, according to information released by the company.

For those over the age of 18, being on a parent’s account can build a credit history.
With the new features cardholders came receive emails or text messages to alert them when a set spending amount is being approached or has been reached on one of their additional cards. The primary cardholders can also modify the spending amount anytime, online or over the phone, the company’s press release stated.

Rewards are consolidated from all the cards on the account.

The new service is available on most American Express products including the "American Express Rewards Green Card, American Express Gold Card and the Platinum Card.

More information can be found at the American Express Web site.

New cell phone to offfer protection against credit card fraud

2009-06-26T14:58:37Z

By summer 2010, new cell phones will be able to unlock doors, create real-time traffic maps and safe-guard credit cards, Hakan Djuphammar, Ericsson vice president of systems architecture, predicted at the mobile infrastructure company’s Business Innovation Forum in Stockholm.

“A year from now, basically every new phone that’s sold will have it. It’s two-way, bio-directional RFID communication that makes this device work as a tag or as a reader,” Djuphammar said.

That is great news for those living in, or traveling to countries with high incidents of credit-card fraud. Credit card companies can use the technology of the RFID-capability of tracking mobile user location data and IP mapping to insure that a credit card transaction is taking place in the near vicinity of the official cardholder and use this as a measure to judge against fraudulent usage.

“In some countries there’s a lot of fraud with credit cards, so therefore it’s in the interest of the credit card issuer to be able to match the position of the phone that belongs to the person who has a credit card” Djuphammar said. If the phone is close to where the card is used, the risk is low, but suddenly if the phone moves away from where the credit card is used they can be alerted to check that particular transaction. It’s most likely fraud because now the phone and the credit card are separated.”

This measure creates a “win-win” scenario between credit card holders and issuers since it is in the best interest of each to prevent fraudulent charges. The RFID technology is one more level of security to protect both.

Anxious parents use MasterCard credit card savings rewards to build college fund

2009-06-26T14:55:11Z

A MasterCard-linked college savings program is offering relief to anxious parents facing the financial burden of sending their children to college.

According to a June study conducted by Harris Interactive, 92 percent of parents surveyed expected to pay for their children’s college education. A full 90 percent said they were facing obstacles to saving for college effectively.

In a direct reflection of the current recession, 60 percent of those surveyed said their ability to save for college expenses is impacted by the economy, more than 20 percent higher than parents asked the same question last year, according to a press release issued by the Harris Interactive, a custom-market research firm.

The survey found that more than half of those surveyed were actively exploring ways to effectively save, and 10 percent were using reward and incentives programs through their credit-card issuer to help.

Futuretrust, in partnership with MasterCard, pays one percent of all purchases made with a Futuretrust MasterCard into a tax advantaged college savings plan. Members also earn up to 10 percent in additional college savings when they use the Futuretrust MasterCard at merchant partners in the Futuretrust Preferred Merchant Network.

"Even though most Americans have been affected by the current economy, it is encouraging to find that an increasing number of parents are actively looking for innovative ways to save for their child's college education, Futuretrust President and Founder Rebecca Matthias said. “The Futuretrust card lets parents build a college fund for their kids simply through the purchase of everyday necessities like groceries and gas, without impacting already tight budgets."

Apply for the Futuretrust MasterCard online.

American Express offers new savings vehicles

2009-06-24T22:40:24Z

Seeking to respond to consumers who have become increasingly concerned with savings as the country’s economic crisis deepens, American Express launched a new line of FDIC-insured CDs and high-yield saving accounts, including a 24-month certificate of deposit.

Upon approval, the CD requires no minimum balance and charges no monthly fees. It s pays 2.5 percent annual percentage yield. The accounts are insured up to $250,000, a press release from American Express stated.

Consumers can apply for a 24- month CD online and be approved in minutes, or by telephone at 1 (800) 446-6307.

Discover awards 10 students with $30,000 prize

2009-06-24T22:38:33Z

Discover Financial Services honored 10 high-school juniors with $30,000 scholarships for college.

Winners were selected based on overall excellence in the areas of leadership and community service while successfully overcoming a hardship or challenge. They also maintained a minimum 2.75 cumulative grade point average to qualify.

While most programs are geared toward high school seniors, Discover focuses on juniors, which gives them an additional year to prepare for their advanced education and make career plans. Winners come from all parts of the country and have diverse backgrounds

“Discover has a strong interest in supporting educational initiatives,” said David Nelms, chief executive officer of Discover Financial Services. “This year marks the 18th anniversary of our program which has had a positive impact on the lives of thousands of young adults. We are proud of our winners and the contributions they make in their communities.”

Since the inception of the Discover Scholarship Program Award, Discover has awarded scholarships totaling more than $16 million to nearly 6,500 students.

Once the student graduates from high school, scholarship funds may be applied to costs for college, university, specialized training or education beyond high school.

Clear travelers can get chargeback if paid with a credit card

2009-06-24T22:36:37Z

Frequent fliers know all too much about Clear, a travel vendor that fast-tracked people through security in airports.

Customers of Clear paid $199 in annual fees, which as of Monday buys them absolutely nothing. The company shut-down with no advance notice after it failed to negotiate an extension with its major creditor. The company issued a statement that it is in no position to pay back fees.

But under the federal Fair Credit Billing Act, Jane Engle, a Los Angeles Times travel editor reported, customers who used a credit card is entitled to ask to have the charge removed from their bill.

The Federal Trade Commission has an online guide, “Billed for merchandise you never received? Here’s what to do.”

The one catch is for those that paid their annual fee more than 60 days ago, they will need to get the requirement for sending a letter to the company about being charged in error waived.

“It’s worth a shot,” Engle wrote.

Credit card companies, especially those that offer pre-paid Visa and MasterCard, often cite the ability to apply for a chargeback as one reason to choose a credit card over using a debit card for purchases. In the case of Clear Travelers, that point is being made abundantly clear.

Credit Union cards tout early compliance with regulations

2009-06-23T20:43:25Z

A recent study by two Harvard University graduate students found that credit unions are less likely to charge the fees and penalties that the new Credit Act of 2009 hopes to eliminate. Further, the study states, when credit unions do charge fees commonly applied by banks, they charge a lower fee overall.

The study’s authors, Ryan Bubb and Alex Kaufman, said that credit unions rarely increase the interest rate on their cards when a borrower fails to make a minimum on-time payment, a practice common among bank issuers.

Credit union over-the-limit fees are routinely about half of those charged by banks, the study found, in addition to lower annual fees and longer grace periods.

The authors’ suggest that the model credit unions use is one banks should be looking to follow when the Credit Card Act is fully instituted, despite tax and shareholder payment advantages that allow credit unions to operate a lower profit margin.

“Credit union cards are a great test case for how regular cards will perform under the new law. The evidence so far suggests that the credit card act is likely to bring about moderate, and even positive, changes,” the authors wrote in a New York Times op/ed piece.

Recent credit union card offers have not changed dramatically in the past few months. PenFed, for example, offers a visa with a 13.99 fixed interest and no annual fee.

SECU offers a student card with a maximum limit of $500, a 13.40 percent interest rate.

Taxi cabs add modern credit card payment processing for riders

2009-06-23T20:40:27Z

Recent technological changes have helped taxi companies around the country address what taxi industry experts have called the most common complaint among riders: the inability to pay with credit or debit cards.

According to a published report, Chicago is the latest city to join the trend, with more than 2,500 cabs now being equipped with touch screen equipment installed in the backseat that allows customers to pay with plastic.

“The TV-like screen presents a running tab during the trip and, at the end of the ride, an itemized bill generated by the cab meter, including any surcharges and tolls. It also lets customers add a tip onto their charge card. The screen displays suggested gratuities corresponding to rates of 15 percent, 20 percent and 25 percent. The customer can instead use a keypad to enter a different tip amount, or provide a cash tip if desired,” the report stated.

Industry experts said the new technology will remove a ploy by some drivers who say their credit card machine in the front seat is broken. Many drivers demand cash to avoid paying credit card processing fees.

Another aspect of the new technology could also crimp some less-than-honest cabbies’ style. The touch screen computers use Google Maps, which allows riders to monitor the route they are taking to their destination.
Cab overcharges generated more than 600 complaints in Chicago alone last year, industry studies found.

The benefits of the technology could end up helping reluctant drivers, however. A Visa study in New York City found that tips to drivers went up by roughly 7 percent for those using the back-seat computer technology.

"This technology is a good move for corporate card customers. It provides a choice so they can save money by not having to take a limousine as often,” Tad Fordyce, a Visa product development expert, said.

Tips for keeping your credit card safe from unauthorized purchases

2009-06-23T20:37:20Z

With the rise of identity fraud and fraudulent credit card purchases, consumers have become increasingly diligent about protection their buying power.

Financial experts caution that part of the security starts with protecting your physical card from falling into the wrong hands, and keeping your actual number away from thieves.

To best accomplish this, consumers are counseled to:

Only pay for phone purchases with known vendors, from reputable companies.
Don’t use your credit card on an unsecured web site.
Never write your credit card number on an unsealed letter or postcard.
Don’t post financial information on any social networking site.
Don’t sign a blank charge slip. Get the total, and when leaving a tip, discard the other copy.
Check your monthly statement. Take the time to check purchases.
Cut up old credit cards and discard appropriately.
Carry fewer cards at one time.

Fewer Medical offices take credit cards for payment

2009-06-23T20:34:06Z

A recent study by SK&A Information Services found that 28 percent of all medical practices in the county do not accept credit cards for payments.

SK&A conducted an exhaustive telephone survey of more than 200,000 physician offices on behalf of credit card companies.

The survey found that 91 percent of plastic surgeons accept credit cards, the highest among specialized fields. Conversely, pathologists were the lowest, with only 21 percent accepting credit cards.

About 72 percent of family practices accepted credit cards, with internists at 53.1 percent and geriatricians 32 percent.

Most apparently do not accept credit to avoid the 3- to 4-percent fee charged by credit card processors. But with more Americans facing financial crisis, physicians could be turning away customers who simply have no other way to pay. Likewise, collecting credit card payments is done immediately, as opposed to collecting co-pays that take time to bill and receive payment.

Think twice before you “settle” your credit card accounts

2009-06-21T17:50:35Z

While debt-ridden consumers are getting loads of advice on how to negotiate with banks to pay off or eliminate credit card debt, the full impact of that decision is often lost in the hoopla. As some financial experts have begun to explain more fully, any “deals” to settle debt comes with a price – one that could negatively impact your credit score and future borrowing power for years to come.

Financial analyst Stacey Bradford points out that these negotiations end up with a “charge-off” on your credit report, a neon-like flashing warning sign that you are now a financial risk.

“Once creditors see the ‘charge-off’ on your credit report, warning bells will ring and they will likely raise the interest rate on any additional cards you hold. So now your other balances will be tougher to pay off,” Bradford writes.

The “charge-off” could also lead to another reaction from your credit card issuers, according to Adam Levin, chairman of Credit.com. Banks could lower your credit limit on other cards or close accounts entirely, giving your credit score a bigger hit while limiting your available credit balance.

Don’t forget also that forgiven debt is income, according to the IRS, and has to be claimed as such.

The bottom line: Contact your lender and seek ways to resolving the crisis without closing the card. Supervisors could help lower interest rate, or set up a temporary payment schedule that will keep you in good standing until you can better pay off the balance of your debt.

Consumers should pay closer attention to credit card statement

2009-06-21T17:42:45Z

With Congress passing new legislation that requires credit card companies to make fees more clear, consumers may better understand the financial consequences of paying late, making only mimimum payments or even how long it will take to pay the card off.

That said, many consumers are still unclear about common terms – some call them misleading – related to their bank statements. According to a report in the Chicago Sun Times, here’s a list of key terms every consumer should be more familiar with if they want to save money and get the most from their credit card.

Available credit- The bottom line is when it comes to this all-important figure of how much more can a person spend under their limit, one plus one doesn’t always equal two. Banks will allow consumers to make purchases beyond their limits, but they will charge them a fee to do so. At other times, should the bank see risky spending patterns, that limit can be reduced without much notice. Also, cash available and credit available balances often differ.

Average daily balance- We see it and ignore it, but banks don’t. It is what is used to calculate your finance charges. The bottom line: Paying your bill early, will lower this figure and in turn, lower your daily balance.

Double-cycle billing- It’s sort of a bank shell game, but thankfully, the new credit card law is banning the practice. So let’s just move on.

Due date- Remember the old saying, “close only counts in horseshoes and hand grenades”? Well, it applied perfectly here. Even if you mail a payment and it arrives on your due date, it could be posted after the specific time the late fee is applied. Send your payment early, even if paying online to be sure to avoid this fee.

The bottom line: Yes, it’s the one thing that most people look at, i.e. what do I owe. But with things rapidly changing, financial counselors are telling consumers to take the time to read the whole statement. Notice of changes and how you will be billed often end up in the shredder or recycling bin, according to experts.

Prepaid credit card offers on the rise

2009-06-21T18:05:38Z

An Internet search through available card offers found that while banks are reducing the overall number of credit offers, particularly to those with troubled credit histories, opportunities for prepaid credit cards are on the rise.

A prepaid credit card basically makes the borrower secure the line of credit with a cash deposit, not unlike traditional lending practices that required collateral for loans. Because banks are reeling from unsecured credit card debt ending up in default, the shift makes financial sense.

For borrowers, the advantage is a built-in control on spending, while having the opportunity to build a solid payment history and improve overall credit scores.

MetaBank is offering a Silver Prepaid MasterCard that offer free direct deposit, no credit check and unlimited purchase transactions. The card never charges for overdraft fees. Metabank offers several different prepaid options for consumers.

The Bancorp Bank offers a similar card, called the Vision Visa Card, which has no activation fee, free online bill pay and free direct deposit.

Discover’s Current Card is designed for teens, with many levels of parental controls on spending, complete with a fraud liability guarantee.

Five tips for keeping a strong credit score

2009-06-21T17:36:41Z

With the pool of available credit dwindling, consumers should do everything they can to keep their credit score high.

In a way that hasn’t been seen in recent years, credit availability may become increasingly competitive as consumers vie with others for a limited supply of money available for loans.

Here are five tips from published stories for keeping a high credit score:

Build up a long payment history. Pay those bills on time. Long-term stability goes a long way.
Keep the credit card balances low: Maxed out cards lower your score and could lead to your credit line being reduced. Most experts urge consumers to never go above 50 percent of your credit line.
Don’t open too many cards too rapidly. Lots of loan applications and cards without long histories look like financial instability to lenders. Running your credit report will lower your score.
Don’t close unused credit cards. Unused cards improve your debt-to-loan ratio, an important factor for credit scores.
Don’t become delinquent. If you might miss a payment, call your bank to make adjustments so you don’t get a negative rating.

Company offers small businesses ability to process credit cards through iPhone

2009-06-21T17:28:00Z

CellCharge, a company that specializes in phone-based credit card transactions, announced this week it added the popular iPhone to the company’s list of services that can be used to process credit card transactions.

“This enables transactions to now be processed wherever you need them, from trade shows and flea markets to direct sales parties and salons, right from your iPhone. Small and home-based businesses benefit as well as they can input a customer's credit card information and get paid right on the spot,” the company’s press release said.

CellCharge sets up its customer’s account, guidance on the best application for the transaction and ensures the process is user-friendly and affordable.

CellCharges said its processing rates won’t rise unless Visa and MasterCard increases interchange.

Credit card interest rates waver in past week

2009-06-19T14:08:20Z

Consumers looking to take advantage of the best deals for credit cards have to surf carefully through the rolling waves of rising and falling rates, according to several recent surveys.

In the past week, according to published reports, credit card interest rates wavered, with the lowest rates holding steady while some higher rates dipped.

The average annual percentage rate charged on variable rate credit cards edged up to 10.88 percent from 10.85 percent last week, according to bankrate.com.

Low interest cards charged an average 9.01 percent, the same as the week prior. This lower interest rate is generally only available to consumers with the highest credit ratings.

The average APR for cards that feature cash or other reward incentives dropped to 14.1 percent, from 14.28 percent last week. These cards generally require a decent credit score for approval.

For balance transfer cards, which allow consumers to consolidate outstanding debt from one or more cards and sometimes include a low introductory rate, the average APR slid to 13.47 percent from 13.62 percent.

Where you shop could alter your credit availability

2009-06-19T14:06:24Z

Banks and credit card companies, like all other businesses, wisely keep trade information about how they do business as close to the vest as possible. But recent action by Congress to scrutinize, and perhaps further regulate the credit card industry could result in a potentially embarrassing study.

California Rep. Maxine Walters said in an April hearing on credit cards that she wants a study to look into suggestions that banks use personal buying information to evaluate a customers’ credit worthiness.

In the simplest terms that means if a consumer is using their card for purchases like bail bond services or at second-hand shops, for example, the bank may reduce the credit limit. If more so-called high-brow purchases are made of luxury items or high-end retailers, banks are said to be relieved.

These purchases could factor into reduced credit lines and even interest-rate increases, according to published reports.

If true, Walters said the practice is “outrageous.”
Reduced credit lines negatively impact credit scores by lowering the debt-to-limit ratio.

Regulators could look to determine if low-income customers, minorities or others have been unfairly treated.

The study’s results are due by May of 2010.

Airline merger leads to credit card shuffle for American Express, U.S. Bank

2009-06-19T14:04:05Z

News of airline mergers and transitions are nothing new, but perhaps lost in the shuffle of the latest merger between Delta and Northwest is the change that will result for credit card holders who earn points and rewards for each airline.

Northwest frequent fliers enrolled in the company’s WorldPerks program use a Visa issued by U.S. Bank. Delta Sky Miles customers use American Express, which will also be the company involved with the new merged airline.

Northwest customers can transfer their current rewards, but will soon be given new offers to switch to American Express.

According to a press release issued by Northwest, the WorldPerks program will begin being phased out later this month and completely ended by July. To that end, American Express will send new offers to all these customers.

According to the company’s Web site, WorldPerks users will automatically be issued FlexPerks card – the new program for the merged airline -- which they can activate or choose not to, in addition to offers from American Express.

Here’s the advice from one report on which card might work best for you:

“For those who earn the majority of their miles through credit card charges, the relative ease of securing award tickets makes FlexPerks-type cards a good choice.

“For those who earn a significant proportion of their miles through flying, hotel stays, and car rentals, it makes more sense to focus on an airline-hosted program, like SkyMiles, and use its affiliated credit card for charges.”

BBB warns of automated calls promising to lower credit card interest rates

2009-06-17T15:42:28Z

The Better Business Bureau issued a news release this week warning consumers against automated phone calls that promise to help them lower interest rates on their credit cards.

Consumers reported receiving calls far beyond typical calling hours, even late in the evening or early in the morning, even on phone numbers registered on the federal Do-Not-Call lists, according to the press release.

The Bureau said the companies promise to save people anywhere from $2,000 to $25,000 by negotiating lower interest rates with credit card companies.
The company charges large up-front fees to negotiate lower interest rates with credit card companies. Many consumers don’t know they can easily do that themselves for free.

“Knowing that so many families are drowning in debt, telemarketers offering suspect financial assistance are taking full advantage of the situation,” the BBB press release stated.

The automated message may not say the name of the credit card company, but may claim to be with Card Services or Card Holder Services, according to the news release.

"Similar to telemarketing calls claiming your auto warranty is expiring, calls offering to lower credit card interest rates also seem to have complete disregard for federal laws,” said Steve Cox, BBB spokesperson. “These telemarketers are not forthcoming about the company they’re calling on behalf of, but BBB has identified some offenders by working with consumers who, unfortunately, paid for assistance in reducing their interest rate.”

For more information, visit www.bbb.org.

U.S. credit card defaults rise to record in May

2009-06-17T15:40:18Z

U.S. credit card defaults rose to record highs in May, another sign that consumers remain under severe stress.

"Chargeoffs went up to record highs," said Walter Todd, a portfolio manager at Greenwood Capital Associates.

Delinquency rates have always been viewed as an indicator of future credit losses. Those rates actually fell across the industry in May, causing some optimism that the worst in credit card defaults was behind the country.

But analysts said the decline was due to a seasonal trend, as consumers used tax refunds to pay back debts, and they expect delinquencies to go up again in coming months.

"I find it hard to believe that it is really a trend. You need to see stabilization in unemployment before you see anything else," said Chris Brendler, an analyst at Stifel Nicolaus, told Reuters. "It is too early to see some kind of improvement."

Bank of America Corp said its default rate, those loans the company does not expect to be paid back, soared to 12.50 percent in May from 10.47 percent in April.

American Express Co said its default rate rose to 10.4 percent from 9.90, according to a regulatory filing based on the performance of credit card loans that were securitized.

Citigroup reported credit card chargeoffs rose to 10.50 percent in May from 10.21 percent in April.

Credit card losses usually follow the trend of unemployment, which rose in May to a 26-year high of 9.4 percent and is expected to peak over 10 percent by the end of 2009.

If credit card losses across the industry surpass 10 percent this year, as analysts and bank executives expect, loan losses could top $70 billion.

Banks aggressively settling to reduce future liability

2009-06-17T15:33:01Z

Faced with unprecedented numbers of troubled customers, credit card companies are settling delinquent accounts for substantially less than the amount owed, according to a report in the New York Times.

Though the practice of settling bad credit debt began quietly last fall it has risen to such levels that some companies are redrafting policies for quicker results. With unemployment topping 9 percent, more people are having trouble paying their bills, according to financial analysts. Unemployment rates are typically a strong indicator of credit card health.

Several published reports assert that workers do not even have to wait for customers to call and ask for a break.

“Now it’s the card company calling you and saying, ‘Let’s talk turkey,’ ” said David Robertson, publisher of the credit industry journal The Nilson Report.

Bank of America and American Express officials say they consider all settlements on a case-by-case basis.

“Other card companies refuse to discuss the subject, but their trade group, the American Bankers Association, acknowledges that settlements are becoming more common,” the Times reported.

The Federal Reserve reported that 6.5 percent of credit card debt was at least 30 days past due in the first quarter, the highest percentage since it began tracking the number in 1991. The amount being written off was also at peak levels.

Jeffrey S. Tenenbaum, a lawyer for many counseling agencies said settlement policies are suddenly very much up in the air. In the past, counselors could persuade card issuers to adjust interest rates and modify late fees, but the balance was untouchable.

For credit card consumers this trend could have strong implications, with diminished credit offers, reduced limits and rising fees as banks seek to offset the losses.

Chicago's Metra fast-tracks credit card purchases

2009-06-17T15:19:22Z

After lagging behind the bus system for years in letting passengers pay for fares with credit cards, Chicago’s Metra is now moving rapidly to catch up. The commuter rail system will begin selling monthly passes and 10-ride tickets online in September, officials said last week.

But it will be February before passengers can use plastic to buy fares at train stations, Executive Director Phil Pagano said.

Metra also will install vending machines that accept credit cards at 14 stops on the Electric District Line.

The rapid change came after state lawmakers introduced legislation to force Metra to update its ticketing system, according to published reports.
Accepting credit cards will cost Metra about $2.2 million in startup expenses, plus $3 million to $5 million a year in processing fees, Pagano said.

Legislation prohibits Metra from passing on the credit card processing fees to customers, causing tension between Metra officials and state lawmakers who failed to address these costs.

Metra plans to ask the Regional Transportation Authority to help cover the cost, Pagano said.

American Express reaches out to Advanta's small business customers

2009-06-16T14:42:48Z

Once a leading source of credit for small businesses, Advanta Corp., was forced to shut down all new credit card use in May in an attempt to shore up its troubled finances. American Express has since stepped in to offer new accounts to a number of Advanta’s one million small business customers.

Advanta officials said they would be in touch with select customers about the American Express offer. American Express said it would begin sending out invitations to switch with applications for a new American Express small business account.

The exclusive offer will give Advanta customers a limited-time to take advantage of the offer, officials from both companies said.

The agreement pays Advanta a referral bonus for each account opened by American Express. The organization has not released the names of the other credit card lenders or an expected time of agreement.

Advanta will begin meeting with regulators soon in the hopes of developing a workable plan for reorganizing the company.

Credit card interest rates waver in past week

2009-06-17T15:16:03Z

Consumers looking to take advantage of the best deals for credit cards have to surf carefully through the rolling waves of rising and falling rates, according to several recent surveys.

In the past week, according to published reports, credit card interest rates wavered, with the lowest rates holding steady while some higher rates dipped. The average annual percentage rate charged on variable rate credit cards edged up to 10.88 percent from 10.85 percent last week, according to bankrate.com.

Low interest cards charged an average 9.01 percent, the same as the week prior. This lower interest rate is generally only available to consumers with the highest credit ratings.

The average APR for cards that feature cash or other reward incentives dropped to 14.1 percent, from 14.28 percent last week. These cards generally require a decent credit score for approval.

New credit card offers found for this week at Market Pro Secure, focused more heavily on products for those with low credit ratings, like Discover’s Teen Prepaid Debit Card, MetaBank’s Prepaid Visa and Orchard Bank’s MasterCard.

Forbes: Credit cards can be a tool in buying a home fast

2009-06-16T15:27:35Z

The sharp, continued drop in real estate sales has created a new opportunity for credit card companies and their customers, according to a report by Forbes.

With transactions scarce, desperate sellers are dropping prices, Forbes reported. For example, a three-bedroom, two-bath bungalow in Huntington Beach, Calif., just a mile and a half from the beach, is on the market for $100,000, a drop of more than 60 percent from August 2008. Being 1.5 miles from the beach helps to make up for the vinyl sided-exterior.

Likewise, a three-bedroom, two-bathroom home in Fort Washington, Md., that sold for $350,000 in January of 2007 is now listed $74,900.

Such prices allow select buyers to use their credit cards to purchase them. Today, even with credit tight, American Express, Visa and MasterCard offer cards with a $100,000 limit, and often more, to those with outstanding credit histories.

Forbes admits that most sellers won’t take credit and even these powerhouse credit cards would make it very expensive for the cash advance needed to buy a house.

“Given interest rates on credit cards, however, this should only be considered if you'll be able to pay off the debt within a few months,” the article advises.

That said, the cards with the lofty credit limits could allow for aggressive buyers to make quick purchases of distressed properties, which can then be refinanced in a traditional loan.

“For someone who isn't liquid enough to have $100,000 cash, but doesn't want to miss out on a steal of a deal, taking out a cash advance can be a useful alternative,” the articles states.

Natrional credit card annual percentage rate drops in June

2009-06-16T15:17:19Z

The national average annual percentage rate on new credit card offers decreased this week, according the Weekly Credit Card Rate Report issued by creditcards.com.

The drop is believed to be partly the result of expectations the Federal Reserve will leave interest rates unchanged.

The Federal Reserve will likely hold off on raising interest rates until economic growth resumes, according to comments made last week by Richmond Fed President Jeffrey Lacker.

The stagnant economy is "likely to warrant rates as low as they are now for some time," he said.

A survey conducted by the Federal Reserve found economic conditions across the United States "remained weak or deteriorated further" from mid-April through May, although some regions noted signs of optimism.

The national average credit card APR is comprised of 95 of the most popular credit cards in the country. Among averages in nine card categories, five fell and four rose, according to the report.

Citibank expands with 10,000 credit cards in Korea

2009-06-16T14:31:57Z

Citibank recently expanded its Visa PremierMiles credit card to Korea. Since the program’s launch Citibank Korea has already issued 10,000 credit cards.

With the quick growth the Citi PremierMiles Visa card has become a leading entity in the Korean market.

The card allows consumers to convert their PremierMiles to selected frequent flyer programs or receive cash back. Another feather of the Citi PremierMiles Visa is that customers can continue to accumulate miles on a plan that never expires. This way customers have no concerns about their miles expiring before they are ready to travel.

“The efforts of many individuals, coupled with a great product, have contributed to the success of the credit card,” Sergio Zanatti, cards business group director, CitiGroup Korea, said. “The company is committed to providing the Korean market with the best in its class.”

While the new card does have an annual fee, it rewards cardholders loyalty to established merchants by giving cardholders the best value on daily purchases and a sign-on and extra bonuses for reaching varying spending levels.

The card also offers discounts for selected hotels, restaurants and golf courses and prestige travel benefits and services.

Discover partners with Children's Miracle Network

2009-06-12T20:25:22Z

Discover has joined other major credit card issuers to release a new affinity card with Children’s Miracle Network. Affinity cards are a growing trend as consumers search for easy ways to donate to charities and non-profit organizations even when they don’t have the extra money.

The Children’s Miracle Network Card is the first affinity card that Discover has issued. Discover will donate $100 to the Children’s Miracles Network for each $500 in purchases that the card holder makes within a six-month from date of approval.

The Children’s Miracle Network has had the vision of partnering with a major credit card company to offer an affinity card to benefit children’s hospitals, according to Brian Hazelgren, Chief Development Officer of the Children’s Miracle Network. An affinity card allows consumers to support the Children’s network while enjoying the benefits of using a Discover card.

Besides the $100 donation that Discover will make for each $500 in purchases, the card also offers a 2 percent cash back bonus on every donation that the cardholder makes to the network using the Children’s Miracle Network Discover card. Card holders can also choose to donate their cash back rewards to the Children’s Miracle Network.

According to Dan Gingiss, Marketing Director Discover Financial, they are please to have an opportunity to give back to the community and to provide consumers a way to support their children.

Apply for the card online.

High-end retailer to keep credit card business despite surprising increase in delinquencies

2009-06-12T20:12:40Z

Even high-end retailers are feeling the credit card pinch, a sure sign the current economic woes are hitting formerly strong borrowers.

Nordstrom reported that like many credit card agencies, it too has seen a big jump in store credit card delinquencies and write-offs, according to a Seattle-based business journal.

The Seattle-based upscale retailer issued its Securities and Exchange Commission filing, reporting that the company’s bad-debt expense related to Nordstrom store credit card business jumped $41 million for the first quarter of 2009 as compared to the same quarter in 2008.

The 158-percent increase is more than previous reporting losses.

Nordstrom officials said the delinquencies and write-offs reflect “current consumer credit trends.” Nordstrom officials said it was still committed to its credit card business despite the recent downturn. The company uses its credit card program for customer incentives and marketing.

Nordstrom offers its own Visa and a department store credit card that includes complimentary shipping for online purchases, early access to the Nordstrom annual sale, complimentary alterations and other incentives.

TransUnion said this month that credit card delinquency rates rose 9 percent in the first quarter from the previous quarter.

The firm reported that bank card delinquency rate increased to 1.32 percent in the first quarter of 2009, up 9.10 percent over the previous quarter. Year-over-year, bankcard delinquencies increased 11 percent from 1.19 percent to 1.32 percent, according to a report in the Credit Union Times.

Consumer advice: shop for cards now

2009-06-11T16:32:55Z

Though the full weight of credit-card laws passed by Congress don’t kick in until February, some laws will begin to have an effect as early as August.

The Credit Card Act of 2009 signed by President Barack Obama is designed to provide consumers with access to credit on terms that are fair and more easily understood while seeking to protect consumer from unreasonable interest-rate increases and fees.

But according to a story in the Denver Post, credit experts are preaching vigilanc,especially comparing terms of different credit cards. Anything card issuers do now won't violate the new law. Experts expect many offers in these final few months to entice those who will be restricted once the law passes.

Experts say credit terms are likely to become less friendly in the future. Consumers should ensure that their credit scores improve or, if already good, don't falter.

"It's the perfect storm, and anyone with a balance has a big, red target on their back," said Curtis Arnold, founder of CardRatings.com.

Those who pay off balances aren't much better off.
"They're likely to be changing the rules, saying your points aren't worth what you thought," said Odysseas Papadimitriou, founder of CardHub.com. "Grab up your points now; otherwise, that trip to Greece is suddenly a trip to the other side of town.”

A search for new card offers now being promoted shows a wide range of offers to those with various credit ratings. American Express’ new Plum Card, for those with excellent credit offers no annual fee, along with cash flow management tools and early-pay discounts.

Discover has a new biodegradable card that “breaks down 99 percent within five years in landfill conditions and leaves no toxic effects behind,” the company’s offer states. It too has no annual fees and is only available to those with excellent credit.

For those with bad credit, prepaid visas and prepaid debits cards are the most popular offer being touted these days. Orchard Bank is offering a MasterCard to those with poor credit scores that includes some unsecured and secured options, an introductory zero-percent interest rate for six months and a $49 annual fee.

ATM service provider offers safety tips for ATM, debit card use

2009-06-11T03:10:53Z

PULSE, an ATM service provider that serves more than 4,500 banks, credit unions and savings institutions nationwide, offers safety tips for customers using ATMs and debit card purchases.

Debit purchases continue to be one of the most convenient ways to make purchases, but consumers need to take an active role to minimize risks.

“ATM withdrawals, cash back during point-of-sale transactions and PIN-based purchases are convenient ways to spend and access your money whenever you need it,” Steve Sievert, PULSE senior vice president, said. “However, anytime you conduct a transaction, whether it’s with debit card or cash, it’s always a good idea to protect yourself.”

The following PULSE safety tips are for all consumers using debit cards, whether at a store, and ATM or other locations:

Protect your PIN: ATM transactions and debit card transactions require the use of a PIN. Consumers should memorize their PIN and never write it on the card or store it with the card. Make sure to always enter the PIN yourself and shield the PIN pad with your body or hand when entering the PIN.
Survey your surroundings: Be careful before making a withdrawal at an ATM. Watch for suspicious activity, and if the ATM is obstructed from view or not in a well it area, leave and find a new location.
Keep an eye out for terminal tampering: Be aware of unusual-looking card slots, plastic overlays on the PIN pad or a damaged machine. These might indicate that the terminal has been altered and you should find a different location.
Take someone with you: Whenever possible, take another person with you when you use an ATM or any outdoor terminal, such as gas stations. This is especially important at night, even if the ATM is indoors.
Have your card ready: Minimize your time at the ATM by having your card out and ready to use when you get to the terminal. Do not count your money while at the ATM.
Review your account statements: Check your statements regularly and look for errors and unauthorized transactions. Report all errors as soon as you find them.
Report a lost or stolen card at once: If you misplace your card, leave it in a public place, or your card is stolen, immediately contact your financial institution. This limits the chances of the card being used improperly and limits your liability for unauthorized transactions.
Never disclose information about your card to an unsolicited e-mail or request: E-mail is a comment means for fraudulent activity. Your financial institution will never ask you for your PIN and you should never disclose your credit or debit card number, PIN or other personal information to an unsolicited request.

For more information, click here.

Consumer discretionary-spending remains flat despite increased confidence

2009-06-10T19:14:30Z

The Discover U.S. Spending Monitor rose for the third straight month but consumer spending remains low.

The Index tracks consumer attitudes about the economy and personal spending trends. The Monitor shows that consumers are feeling increasingly more optimistic about the economy and their own personal finances, but despite higher confidence levels, consumers’ discretionary spending levels are remaining flat.

20 percent of consumers expected to spend more money in the month of May, but that rise coincided with an increase in the number of consumers spending money on household necessities like gas and groceries.

Despite higher spending, consumers still aren’t spending money on more trivial purchases like dining-out or going to the movies. In fact, 49 percent of consumers are planning on cutting back on discretionary spending.

“Just when economic conditions appear to be getting better, rising gas prices may give consumers a reason to continue cutting back on their discretionary spending intentions,” Julie Loeger, senior vice president of brand and product management for Discover Financial Services, said.

Half of consumers are expecting to continue spending less on home improvement purchases and 38 percent said that they will be saving and investing less.

“Hopefully, the worse if over and the improving economic and financial trends the monitor has shown for the last three months will continue,” Loeger said.

The Discover U.S. Spending Monitor is a monthly survey that measures consumer spending intentions and economic confidence. Discover polls 500 consumers daily and 15,000 monthly. The surveys have a +/-1 percent margin of error and are conduction by independent survey research firm Rasmussen Reports.

Consumer attitudes about economy continues to improve

2009-06-10T19:10:01Z

The Discover U.S. Spending Monitor rose again in May for the third consecutive month. The Monitor rose two points in May to 86.2 on a 100 points scale. That is the highest that the Monitory’s index has been since September. The number of consumers that said that the economy is getting better rose 5 points to 27 percent, also a new Monitor high.

The Monitory measured a significant decline in consumers feeling pessimistic about the economy as well. Less than half, 49 percent of consumers, felt that the economy was getting worse in May.

This positive attitude about the economy is also reflected in consumer confidence in their own personal finances. 20 percent of consumers said that their personal finances are getting better, a figure not reached since September.

As consumers re-gain confidence in the economy they report anticipating higher household expenses. For May, 30 percent of consumers expected to spend more money on household expenses such as gas and groceries. That is a 5-point increase from April.

The Monitor also recorded a 2-point rise in the number of consumers expecting to spend money on a major personal expense such as a vacation.

“Consumers are feeling the economy is on the mend and their finances are improving, two things needed to revive consumer spending,” Julie Loeger, senior vice president of brand and product management for Discover Financial Services, said.

Gas rebate cards offer money back on gasoline purchases

2009-06-10T19:05:47Z

BP Gasoline and JP Morgan Chase have partnered to offer consumers gas rebate cards with one of the highest rebates currently available.

The BP Visa Card earns qualified consumers a 5 percent rebate on eligible purchases at all BP locations, a 2 percent rebate on eligible travel and dining purchases and a 1 percent rebate on all other eligible purchases.

The BP gas card offers a 2 percent in rebates for every $1 spend Amoco Ultimate Fuel.

Once the consumer has earned $25 in rebates they can choose from a variety of ways to redeem their rebate. The consumer can choose between a $25 BP gift card, a check made payable to the consumer for $25 or even a $25 charitable donation to The Conservation Fund.

“It's a pretty good way of rewarding yourself for something you must do anyway,” Curtis Arnold, founder of CardRatings.com, said.

The BP gas card has charge privileges at the more than 11,000 BP locations nationwide, including convenience store charges and car-wash charges. The card also comes with no annual fee and unlimited number of potential rebates earned.

"Introducing the new proprietary BP Card is a testament to our long-standing partnership with BP and to providing our customers with products that have great value," Donna Barrett, executive vice president, Chase Card Services said. "This card continues our commitment to introduce a complete suite of products that answer the needs and wants of our busy consumers."

Arnold offers consumers one caveat to be aware of when using gasoline rebate cards.

“Gas rebate cards historically have some of the highest rates on the market. I would stop using the card the very first month that you carry a balance. Even if you earn 5 percent back on gas (which is the most aggressive ongoing rebate on the market), you still lose big if you carry a balance and pay an 18 percent interest rate,” Arnold said.

Customers can apply for the BP gas card, or the BP Visa card online. Customers who apply for the BP visa card and do not qualify are automatically considered for the BP gas card.

Reports find Capitol One, Simmons best for avoiding fees while traveling abroad

2009-06-09T15:58:54Z

Think paying a small percentage on purchases doesn’t matter to consumers these days?

Think again, where people have been increasingly paying far closer attention to the small charges that have the potential of decent savings if avoided, according to several consumer articles of late.

Case in point: Forbes.com noted that those traveling abroad will pay very different amounts for every purchase depending on their choice of credit card.

Where many common card companies like Bank of America and Wells Fargo charge a 2 percent fee for a credit card purchase overseas, some most notably, Capital One and Simmons First National credit card do not.

With Visa and Mastercard typically adding a 1 percent fee, the total of 3 percent on every purchase made adds up, like an example of a $50 dollar meal become $51.50 every time a traveler eats out.

The price even goes a touch higher because, according to Forbes, several banks will then charge a 3 percent foreign-transaction fee on top of the earlier charges.

Two lenders singled out by the likes of Forbes and Bankrate.com are Capital One and Simmons First, who waive conversion fees and do not charge for overseas purchases.

Capital One’s “Build Your Own Card” allows consumers to pick the appropriate card based on their credit score and terms, even allowing a design to be chosen.

Simmons' First Visa Platinum offers a 25-day interest-free grace period on purchases, travel benefits and rewards and other enticements for consumers with strong credit ratings.

Consumers may increasingly bear the brunt of credit card swipe fees

2009-06-09T15:51:39Z

Small businesses, particularly convenience stores, are looking for ways to pass along “swipe fees,” often their biggest expense, to consumers, according to reports in business journals.

“The continuing burden of interchange, or swipe fees on small business owners has become heavier and heavier to bear. It is the second largest expense behind payroll. It is something we are extremely worried about,” said Jim Smith, president of the Florida Petroleum Marketer and Convenience Store Association, during a Monday news conference.

Credit card interchange fees, commonly known as swipe fees because they are charged by Visa, MasterCard and member banks to merchants each time a card is swiped, average about 2 percent in the U.S., the association for convenience and petroleum retailing, which hosted Monday’s news conference.

In 2008, credit card fees cost U.S. convenience stores $8.4 billion, compared with $5.2 billion in store profits. Almost all of these credit card fees are attributable to credit card swipe fees.

The groups are pushing for legislation that would either require credit card companies to reveal swipe fees or allow merchants to negotiate those fees, thus leveling the playing field.

Federal lawmakers recently reintroduced the Credit Card Fair Fee Act, which may allow merchants to negotiate those fees.

But in the meantime, more merchants are looking for ways to pass those fees along to consumers directly, either by forcing consumers to use only an ATM card for small purchases, or paying a credit fee percentage tacked on to the bill.

The Electronic Payments Coalition, an organization that represents credit card companies, said in a new release that retailers are trying “to make consumers pay for one of their business expenses – the cost of accepting credit and debit.”

Ohio Turnpike to accept credit, debit card toll payments

2009-06-09T15:48:32Z

Drivers passing through Ohio later this year will be allowed to pay tolls with credit or debit cards.

Select toll booths along the 241-mile Ohio Turnpike will soon accept plastic for people passing through.

By accepting credit and debit card at toll booths, the Ohio Turnpike Commission is increasing flexibility for drivers. When driving on a toll road, finding enough spare change scattered around the car can be difficult.

The first credit card machines are set up at staffed tollbooths for testing. The commission plans to have machines installed at 10 low-volume exits by the end of the year. Eventually, these booths will be unmanned at night.

Indiana is also planning to add credit and debit card to its toll roads.

Warm weather spurs credit card spending

2009-06-09T03:20:18Z

A new report suggests that warm weather means increased credit card sales from motivated consumers buying outdoor items like grills, landscaping supplies and summer clothing.

Planalytics, a company that specializes in weather’s impact on the economy, issued a report staring May weather historically tends to bring an increase in seasonal purchases like flip-flops, ice cream, garden tools and other spring merchandise.

"Historically, weather's influence on consumer behavior in May is very strong," Planalytics chief operating officer Scott Bernhardt said. "This May, a confluence of factors contributed to stronger economic numbers, with the weather having a considerably positive influence."

A staggering 97 percent of businesses tracked by Planalytics showed that positive weather was a favorable effect on their sales compared to last year. J.Crew, a popular retailer that sells shorts, swimsuits, sandals and other summer gear, saw a substantial increase in May 2009 from May 2008. Other companies like The Dress Barn, Wet Seal and even a restaurant like Chipotle Mexican Grille topped the list of year-over-year increases in sales.

Alternatively, consumers may spend less on gas with the onset of summer by leaving the car parked in the garage and opting instead to walk or bike to local outings.

College students need mentors for proper credit card management

2009-06-08T17:24:52Z

In the 1990s fewer than 10 percent of college kids had credit cards. Today, that figure tops 70 percent, a staggering rise that led directly to revisions in Congress’ credit card legislation targeting college-aged students.

As Steve Diggs, a speaker and writer on life skills and money wrote recently, “The most striking part of this decline into indebtedness is that many of these young people are using their long-term college loan money to pay off short-term plastic debt.”

Diggs suggests three basic steps for parents, all with a “zero – tolerance policy,” that if broken, the card is cancelled.

Set a spending limit
Decide what the card can (and can’t) be used for, and enforce it.
Pay off the balance in total each month. – Financial patterns are established early.

Credit card companies are making the adjustment to this rising concern by marketing new products designed to help parents monitor and mentor their college-aged children in the use of credit cards.

Case in point: Discover has a new offer for a teen prepaid debit card that offers parents built-in controls on spending that can be set daily, weekly or even monthly. Parents can also control types of spending by blocking purchases in liquor stores, hotels or tobacco stores.

The card can be opened with a minimum of $50 and has an annual fee of $50.

As Diggs suggest, the changes In spending habits could be tough, but ”tough love” may help turn back the tide on college students hitting the workplace already knee-deep in debt.

Credit Card consolidation hot topic among financial bloggers

2009-06-08T17:12:33Z

Folks who make a living writing about consumer finance these days are increasingly dealing with the felt-need to reduce personal debt and lower credit card payments.

Which, of course, points to what consumers are most concerned about, and therefore, reading about. With the average debt percentage of Americans now twice that of what it was two decades ago, the urgency to lower debt has grown with each passing day the country’s economic crisis has continued.

Among many of the strategies offered, most focus on consolidating credit card debt to lower the interest rate and so that more of the payment made is applied to reducing the principal.

Yuri Steppin, on the English blog Nurido.at, said to watch for more than just the introductory rate.

“So, when you go looking for a credit card to consolidate credit card debt, you must be keenly looking for these 3 things (in terms of APR) – introductory APR, introductory APR period and the standard APR,” he wrote.

David Beart of professorhouse.com, agreed, but said debt reduction must be included beyond the first steps of consolidation. Beart wrote that paying down credit debt should start with the highest interest rate card, not the highest balance.

“Attacking those with the highest interest rate will actually give you the best benefit,” he wrote.

Beart also recommends doubling your payment on the card you are trying to pay off first.

A second strategy is to take the cards with the smallest balance, and try to pay them off quickly.

“The key point is to make sure you follow though and take the money from those payments once you have paid off the smaller cards and apply it to the balances on your higher interest rate cards,” Beart wrote.

First signs of economic spending stability on horizon

2009-06-08T17:04:58Z

American have relied increasingly less on credit card spending in recent months, according to Federal Reserve data released for May. But some industry experts have shown signs of a stabilization that suggests Americans have been at least slightly buoyed by “scattered signs of economic rebound,” according to Time Magazine.

Time reports that on June 4, an executive with Mastercard said that un-released data from the company’s spending survey suggests that while people are still spending less, the rate of decline has slowed.

This follows a report from Fitch Rating also released on June 4 that found credit-card late payments fell in May, for the first time in four months. Banks use credit-card late payments as an indicator of coming losses from default.

That silver lining is, of course, surrounded by otherwise bleak economic news. San Francisco’s Federal Reserve Bank noted that household debt remains at historic highs, 133 percent since 2007. By comparison that mark was at 55 percent in 1960 and 65 percent in the 1980s, Time reported.

Chase offers new reward program amid credit crisis

2009-06-08T17:02:12Z

Despite the general trend to scale back credit offers and incentives, JP Morgan Chase and Co. introduced a new program for credit card rewards last week.

Chase believes a viable market for rewards-based credit offers remains, despite the general downturn in credit card revenue. Through its “Chase Ultimate Rewards” program the company hopes to entice new customers from an increasingly competitive market.

“With all of the changes in this environment and changes in the economy, we do see that consumers are spending less than they have in the past,” Chase Card Services President Eileen Serra said.

Ultimate Rewards adds to basic rewards programs with redemption options that customers can use today, Chase officials stated.

Cardmembers can view rewards activity, earn bonus points for shopping, redeem points, book entire travel itineraries, and search for and reserve a restaurant through a single, comprehensive Web site that provides maximum simplicity and ease of navigation.

"Ultimate Rewards has reinvented the rewards experience for Chase cardmembers by providing virtually limitless opportunities to earn and redeem points," Serra said. "Cardmembers can redeem points for literally millions of redemption options, simply by logging into ultimaterewards.com or calling Chase customer service. Ultimate Rewards provides cardmembers with the ability to earn points on every single dollar of spending, with no points earning caps, no points expiration, and virtually no restrictions on air travel."

The new program offers consumers one reward point for every dollar spent with no points caps or expiration dates, the company announced.

All of Ultimate Rewards` features and functionality are available online. Consumers can apply for the Chase Freedom card online.

With declining credit offers, payments could become higher priority

2009-06-02T21:41:40Z

A 2009 survey by Securian Financial Group found that making timely credit card payments has dropped in priority by Americans struggling under the weight of the current economic crisis.

Similarly, a recent Rasmussen Report found that 25 percent of those surveyed said they were "somewhat likely" to miss a credit card payment over the next six months.

This type of exposure has credit card companies raising interest rates and lowering available credit to protect against mounting losses.

With many experts saying that credit card offers will decline as banks seek to avoid overleveraging themselves, and following the passage of the Credit Card Act of 2009, consumers may soon need to rethink that strategy in order to maintain what available credit they have left.

According to the survey, the number of people who consider short-term savings a priority has risen by 8 percent since the last survey nearly a year and a half ago. Unfortunately, that need to save has, to some extent, come at the expense of long-term financial obligations like credit card debt.

"Consumers are clutching cash and postponing debt reduction," commented Kerry Geurkink of Securian Retirement.

But a Bankrate.com columunist notes that many banks are scaling back existing credit lines, and other analysts have noted the overall decline of credit offers.

Taking a chance with your existing credit score in these troubled times could be the exact opposite of sound financial strategy, according to Bob Wexler of Public Savings Bank.

“Building good credit is critical at a time when credit is getting harder to obtain,” Wexler said.

According to the Securian study, 82 percent have some form of non-mortgage secured debt, a figure that has not decreased since 2007.

Credit card defaults continue to rise, but stabilization may be coming soon

2009-06-05T17:21:31Z

Though defaults on credit cards continue to hit record highs, a leading index showed delinquent payments dropped for the first time this year.

The drop in delinquencies suggest that the credit card crisis could be starting to stabilize, which will reduce the number of defaults, analysts said.

Fitch’s prime credit card chargeoff index measures loans companies do not expect to be paid. That figure rose to 9.66 percent in April, up 51 percent from this time last year.

But Fitch’s delinquency index, which measures 60-day late payments, declined to 4.37 percent. The delinquency index is used by credit card companies to indicate future losses from defaults.

"At this point, any sign of a pullback from the rate of acceleration in delinquencies is welcome news," Fitch Managing Director Michael Dean said in a statement.
"Whether it develops into a trend remains to be seen and since it will take time to work through, we expect continued increases in chargeoffs over the next few months."

Fitch expects chargeoffs to exceed 10 percent in the coming months, and to remain elevated through the first quarter of 2010, when unemployment -- currently at 8.9 percent -- is expected to peak.

Transfer card offers can beat climbing interest rate average

2009-06-05T17:18:59Z

Two years ago, before the economic recession took hold, the average interest rate on credit cards was 16.3 percent according to a financial information group’s data.

The figure topped 18 percent as credit card providers have attempted to shore up losses due to the rapid rise in credit card defaults.

"Rising unemployment means that the risk of customers defaulting on their card repayments has increased, which is being passed on through higher rates,” Michelle Slade, an analyst at Moneyfacts said.” "If customers are struggling with repayments, unsecured lending is one of the first casualties as customers fight to keep hold of their property.”

Some strong credit card offers and incentives still remain for those with good credit histories, Slade said.

Some providers offering 0 percent balance transfer rates for 16 months, and 0 percent interest on purchases for 12 months as introductory offers. But she warned that with the increased risk of people defaulting on their debt, only people with exemplary credit histories were likely to be accepted for the best deals.

Citi’s offer has 12 months interest free, while Discover’s is for six months.

Simmons First Bank’s platinum rewards card offers no annual fee and a fixed 8.95 percent finance rate.

The average credit card interest rate on many of these balance transfer cards is significantly lower than the overall average.

Prepaid debit cards offer alternative to debt, theft and costly overdraft fees

2009-06-05T17:14:05Z

Prepaid debit cards have gained a foothold with consumers seeking to safeguard themselves from past financial problems, according to financial analysts.

Like a regular debit card without the local bank branch, pre-paid debit cards are a cross between a secured credit card and a debit card. Many of the companies that offer them charge only a flat monthly fee for services like bill-pay, direct deposit and withdrawals.

Some consumers have opted for pre-paid debit cards to protect themselves from identity theft. Others use the prepaid debit as sort of an “electronic wallet” so as not to have to carry cash, or to avoid the temptation of running up debt on a credit card.

Analysts say the most common reason consumers use a pre-paid debit card is to avoid bank fees from overdrafts. Because the debit card is secured only with the money you deposit, overdraft fees do not occur.

Meta Bank offers a pre-paid debit card that has a $9.95 application fee, and $4.95 monthly fee, far less than one $30 or more overdraft fee from a bank. No credit check is required and accounts can be opened with just $10.

Discover has a new offer for a teen prepaid debit card that offers parents built-in controls on spending that can be set daily, weekly or even monthly. Parents can also control types of spending by blocking purchases in liquor stores, hotels or tobacco stores.

The card can be opened with a minimum of $50 and has an annual fee of $50.

New BofA products join fight against breast cancer

2009-06-05T17:09:31Z

Bank of America announced new credit card, check card and checking account products that help support the fight against breast cancer through Susan G. Komen for the Cure, the world's leading breast cancer organization.

Bank of America will make a donation to Komen for the Cure for each new pink ribbon-themed credit card, check card or checking account opened. In addition, every time a consumer uses the credit or check card to make a purchase, Bank of America will contribute a percentage to Komen.

"This new partnership represents a great opportunity for the breast cancer movement, allowing Komen to raise significant awareness and funds for research and community programs that are critical in our fight to end breast cancer forever," Katrina McGhee, vice president, global partnerships, for Komen, said.

Consumers can sign up for the Komen Banking products at banking centers nationwide and online. Applications will also be available at select Susan G. Komen Race for the Cure and Breast Cancer three-Day events beginning later this month.

Each year, more than 1.5 million people run or walk in more than 120 Race for the Cure events, and more than 40,000 people participate in 15 Breast Cancer three-Day events.

"We are very excited to have the Susan G. Komen for the Cure partnership and the availability of their branded financial services products through Bank of America," Mike Simpson, affinity management executive for Bank of America, said. "Their mission touches many lives and continues to have a great impact with the efforts to find a cure for breast cancer."

Virgin Atlantic American Express holders have new travel benefits

2009-06-05T17:05:28Z

Under a new partnership announced recently, Virgin Atlantic's Flying Club Gold and Silver Members and holders of the Virgin Atlantic Black Card will receive complimentary Regus Businessworld Gold cards, which offers unlimited access to work from any of Regus' 1,000 business lounges and cafes in cities across 75 countries.

"Our business travelers expect the most effective and efficient end-to-end travel experience when they fly Virgin Atlantic, and this partnership with Regus is a great supplement to those services," Chris Rossi, senior vice president N.A., Virgin Atlantic, said.

Regus offers its clients a full range of cost-effective business-ready workplace products, including fully furnished, fully staffed private offices, meeting rooms and business support services.

For those clients who may not need a full-time office, Regus also offers virtual offices, which allow businesses to instantly gain a presence in a new market with a prestigious, high-profile business address and local telephone answering and mail handling services. Regus clients typically experience up to a 60 percent savings on their facilities costs over leasing traditional office space.

"Regus' revolutionary Businessworld world program will prove extremely beneficial for Virgin Atlantic's Flying Club members and Cardmembers," Rebecca Tann, vice president of marketing for Regus, said. "Our strategic alliance with Virgin Atlantic provides these individuals with immediate access to world-class, business-ready places to work, wherever their business takes them. Business travel has just become easier for thousands of Virgin Atlantic customers."

Connecticut bill restricts credit card marketers on college campuses

2009-06-04T15:09:10Z

Connecticut’s state Senate approved legislation that would restrict the ability of credit card companies to solicit college students as customers on Connecticut’s public college campuses.

The legislation would require the Board of Governors of Higher Education to adopt policies regulating credit card issuer marketing practices on public college campuses by January 1, 2010.

“The decision to apply for that first credit card is not one that should be taken lightly,” said state Senator Bob Duff (D-Norwalk), co-chair of the General Assembly’s Banks Committee. “It’s a decision that has to take into account a student’s ability to pay off any charges made to the card at what will most likely be a very high interest rate.

The new policy will require credit card issuers to register with a public higher education institution before marketing on a campus; appear on campus at least once a year in a location open to all students to provide educational information and answer questions; and distribute credit card management educational information along with marketing materials.

“Unfortunately, many students have ruined their credit with a bad choice on a card marketed to them at their college campus,” Duff said. “This legislation is designed to help ensure that when someone under the age of 21 makes the decision to get a credit card that they’ve been provided with education material about their obligations, that they have not been enticed with gifts or giveaways and that their school is not giving their personal information out without consent.”

The Senate approved the bill unanimously by consent. The legislation—House Bill 6483, An Act Concerning Credit Card Offers on College Campuses—was previously approved unanimously in the state House of Representatives. It now moves to Gov. M. Jodi Rell for consideration.

The bill comes at a time when students will already find it tougher to obtain credit. Starting in February under the new federal credit card legislation, students will need a valid co-signer to obtain credit.

Several companies offer pre-paid credit cards like Facecard that, while not effective in providing emergency funds, do help students build credit histories while in college.

American Express to ‘suffer less pain’ under new laws, others to adapt

2009-06-04T14:56:20Z

American Express Co. believes it is ahead of the curve compared to its major rival companies in adjusting to the new credit card laws that will take effect in February because it depends less on interest paid by customers.

American Express received only 20 percent of its revenue from charging interest rates, according to Chief Executive Kenneth Chenault. Rivals like JPMorgan Chase, Citigroup and Bank of America made the bulk of their credit card revenue from that single item.

"We will suffer less pain," Chenault said during a conference on Wednesday.

In addition, Chenault said American Express was planning to aggressively promote its charge cards whose balance must be paid in full at the end of the month, as debt-burdened American consumers try to use their credit cards less.

The new law will restrict the ability of credit card issuers to raise interest rates on cardholders' existing balances, to charge certain fees, and to impose penalties on consumers that the government deemed unreasonable.

While Capital One’s chief financial officer admitted the laws will have a profound effect on the industry as a whole, credit companies will adjust.

Capital One CFO Gary Perlin didn't give specifics about how the law will affect his company’s costs or revenue, but he said that there will be a "reinvention" of pricing and fee structures industrywide.

Some areas that will see major changes include the ability for a lender to adjust or reprice outstanding debt, and how much they can charge consumers in various fees, Perlin said.

Research report honors Identity Theft Protection Solution as ‘best in class’

2009-06-04T14:27:40Z

Identity Guard Total Protection has been named "Best in Class" for personal information monitoring services in Javelin Strategy and Research's 2009 Consumer Identity Protection Services Scorecard.

The comprehensive industry report evaluated more than 20 vendor services based on key factors such as customer service, product features, and overall product value with the conclusion that Identity Guard Total Protection provides "the most comprehensive protection for its product category."

"Our goal as a company is to empower consumers to take control of their personal and financial assets,” Michael Stanfield, chairman and CEO of Intersections Inc., said. “We do this by providing them with the most comprehensive, user-friendly services available,"
Since 2007, Javelin has evaluated and reported on the rapidly growing identity fraud protection services space.

Each year, analysts thoroughly examine consumer perceptions, the effectiveness of the identity protection services market, and the new and existing solutions that are available to consumers.

Evaluation of specific criterion is executed through extensive Web site review, mystery shopping (phone interviews with customer service representatives), and vendor interviews.

"Identity Guard satisfies nearly all Javelin scorecard criteria and, therefore, offers the most thorough protection among personal information monitoring services," Javelin Research analyst Rachel Kim said. "Javelin believes that the combination of monitoring public records databases, Internet sites, and credit files from all three credit bureaus provides the most comprehensive resources for detecting exposure or potential misuse of personal information."

Identity Guard users ranked themselves as most satisfied with the credit monitoring identity protection services. The service was the only one evaluated to provide a personal password protector, secure mobile devices and $1 million identity theft insurance through a third-party insurer.

Card Cops protect consumers from billion dollar credit card fraud industry

2009-06-04T14:12:52Z

Identity thieves steal billions each year through credit card fraud, though often the consumer is unaware of how he or she has been compromised.

Sometimes card information is obtained and then sold across the globe to a loosely organized international underworld, according to recent stories on credit card fraud.

"They can sit in an apartment in Kiev ... and steal your identity and you're going to be in a world of hurt," said Dan Clements, founder of Card Cops, a company that has been tracking hackers who buy and sell people's identities. "They blatantly ... trade credit cards. They trade social security numbers. They trade debit card pin numbers."

Card Cops has been tracking hackers' activity for a decade. Crooks from all over the world meet in Internet chat rooms, in what almost looks like an underground stock market.

"Credit cards are commodity items," Clements said. "They can go for as little as $2 or $3 for a regular credit card. If you have a platinum card, it may be for $10 or $20. It's big business. They make a lot of money. There are people here that claim to make $20,000 to $30,000 a month selling these resources in these chat rooms."

Card Cops began after many who now work there were victims of identity theft when they worked together at a different Internet company. They used their personal experience to launch a business of protecting consumers and merchants from identity theft.

Taking control of a credit card number is one thing, but what's really devastating is when crooks have all of your financial information. Once they have a full profile, they can open up new accounts entirely under a different name.

Identity protection is largely left up to the consumer. Card Cops recommends inactivating old account numbers, and choosing a new ATM pin number every six months.

Card Cops officials have been interviewed on NBC dateline and for stories in USA Today. To learn more about how to protect your identity visit the Card Cops Web site.

Capital One's program allows easy charitable donations

2009-06-04T13:55:32Z

When budgets are tight, charitable donations can be of the first casualties. To combat that trend, Capital One Financial Corporation has announced a new program to allow customers to make donations to charities simply by using a credit card.

Capital One’s Card Lab Connect is a credit card affinity program available for nonprofits of all sizes. Nonprofits can register for Card Lab Connect, create personalized cards for their organization and use online tools to attract supports. All rewards earned on the cards are then donated directly to the nonprofit. The nonprofit also receives 1 percent of net purchases and an additional $25 with the first purchase.

The card is a way for consumers to support nonprofits even when they don’t have the extra financial resources available. According to the 2009 Capital One Card Lab Connect Charitable Giving Survey, 57 percent of respondents said that over the past year they have been unable to make the same charitable donations they have made in previous years due to financial concerns. The same survey found that even though 61 percent of Americans have supported local organizations in the past, this year saw that number drop to only 34 percent of Americans planning to make donations.

“We recognize that for nonprofit organizations, particularly smaller community-based groups, fundraising programs are an even greater priority in this tough economic climate. The need for their services is greater and, while supporters are looking for ways to help, donations are harder to come by,” Pam Giarado, spokesperson for Capital One, said.

To ensure that 100 precent of the donations make it to the nonprofit, Capital One covers the transaction cost for each donation. The company has also tried to ensure that the program is convenient and easy to use for both nonprofits and consumers.

The nonprofit organizations can register online, create their card and access various online tools. The cardholder, in turn, can research select and donate via the Capital One No Hassle Giving Site.

“Capital One Card Lab Connect aims to help meet the changing needs of nonprofits and consumers, alike. It is a convenient way for people to help support their charity programs of choice,” Girardo said.

Delta Skymiles cardholders get added travel benefit

2009-06-03T16:48:55Z

The daily commute got a little bit nicer for Delta Air Lines customers who fly between New York City and Boston or Washington D.C. from now through July 26.

Delta Air Lines is now offering Delta SkyMiles and Northwest WorldPerks members 2,500 bonus miles for each flight segment on the Delta Shuttle between participating cities. Miles also are accumulated through the use of Delta Skymiles credit card.

The 2,500 miles are a bonus in addition to the standard 500 SkyMiles or WorldPerks earned for each Shuttle flight traveled.

"With the Delta Shuttle, SkyMiles and WorldPerks members can now enjoy great savings and earn 2,500 miles for each flight which can be redeemed for travel anywhere Delta flies worldwide," Jeff Robertson, Delta's vice president of loyalty programs, said.

To participate in this offer SkyMiles members must register. WorldPerks members register here.

In addition to the added incentive of 2,500 bonus miles, Delta began offering Shuttle fares at prices 60 percent lower than previous walk-up prices. Delta Air Lines operates more than a dozen shuttle flights daily between New York and Boston and New York and Washington D.C.

SBA sees rise in small business credit card use

2009-06-03T16:39:23Z

Faced with uncharted economic threats, small businesses responded in 2008 by taking out fewer small business loans and relying more on credit cards, according to a report by the Small Business Association.

“Availability of business credit cards is one of the major contributions by the lending institutions to make credit more available," says SBA economist Charles Ou, one of the study’s co-authors.

The change reflects to some extent the changing nature of small businesses that increasingly technology-driven companies with far less overhead than traditional businesses. Internet businesses or home-based companies have fewer hard assets like machinery, real estate and vehicles.

With tightening standards on bank loans, credit card loans are an easier source of revenue for many of these smaller businesses. American Experess, Capital One and JP Morgan Chase, all credit card lenders, are among the top overall lenders to small businesses, the report stated.

American Express offers several options for small business credit cards, including its trademark Gold Card.

Small business credit card holders are not directly impacted by the Credit Card Act of 2009.

Visa says change, restructuring of credit card industry on the way

2009-06-03T16:24:01Z

When Visa talks in the credit card industry, everyone listens. Such is the power of the world’s largest payment network. And Visa Inc., according to recent reports, said the industry is going through a major restructuring following Congress’ Credit Card Act of 2009, set to take effect in February.

It's going to cause the whole industry to rethink itself," Visa's Chief Executive Joseph Saunders said in an interview with Reuters. "It will result in less credit being offered to less people."

The change was somewhat inevitable as credit card debt in American spiked by more than 25 percent in the last decade. As of March, Americans owed $945 billion.

Debit cards represent a significant part of the company’s future, according to Saunders, as more buyers revert from using credit cards.

Spending on debit cards topped credit card spending in 2009 for the first time in history.

While debit cards allow card users many of the same advantages as credit, they are more limited. Most notably, debit card use does not help consumers build a positive credit score.

Many lending institutions are increasing their offers of low-fee, lower interest secured credit cards, that while similar to a debit card, afford consumers all the advantages of a credit card, while limiting the lending institutions exposure.

Applied Bank, New Millennium Bank and Public Savings Bank are all offering different versions of low-cost, secured credit cards to attract borrowers that need to rebuild credit scores.

Citi offers thanks to consumers with new reward program

2009-06-03T16:02:09Z

Many people these days are hiding from their credit card companies and cringing waiting for increased fees, higher interest rates and penalties. But some Citibank card users are singing a different tune.

Citibank has started thanking their customers for using their credit card. Citibank customers Scott Benedict and Megan Fullagar each received one millions thanks. "ThankYou Points" that is. They were winners in Citibank’s “Thanks-A-Million” sweepstakes.

“As someone recently displaced by the economy, winning one million ThankYou points is truly a blessing,” Fullagar said.

ThankYou Points can be redeemed for a wide variety of items including gift cards for top retailer brands, electronics such as flat screen TVs and digital cameras and even travel plans like airline tickets, hotels, and cruises. Almost anything that a consumer would need to buy, they can get by redeeming their ThankYou Points.

“What customers enjoyed about the 'Thanks-A-Million' promotion was that they were entered to win just by doing their everyday banking activities like using their debit card," Peter Knitzer, Citibank's group
executive vice president said. “Citi's ThankYou Rewards Network has millions of rewards to choose from, so points can be used in virtually endless ways."

Benedict said he uses his card for most of his purchases.

“I entered the sweepstakes because using my Citibank check card is the most convenient way for me to pay for things; even more convenient than cash,” he said.

No other banking reward program in the U.S. offers consumers so many ways to earn reward points, according to Citi officials.

Enrolled customers accumulate ThankYou Points each month each time they use their debit card, use direct deposit, pay bills with online bill payment or simply have savings and checking accounts.

American Airlines converts to cashless cabins onboard flights

2009-06-02T19:05:35Z

The friendly skies may still be friendly, but only if you have plastic.

American Airlines announced it has gone cashless onboad flights within the continental United States, on flights to Hawaii, Alaska and Canada. The new policy took effective on June 1.

Customers wanting to purchase headsets, meals, alcoholic beverages or snacks will have to have a major credit card or debit card.

"We believe that, by moving to a cashless cabin, the transaction process is more convenient for both our customers and flight attendants," said Lauri Curtis, American's Vice President - Onboard Service.

Southwest Airlines is already cashless.

Flight attendants utilize a hand-held Onboard Sales Recorder to charge credit and debit cards, eliminating the need to search for small bills or change. American has used these hand-held devices since May 2006. Receipts will be provided to passengers upon request.

Cashless cabins will not be implemented onboard American Eagle and AmericanConnection flights - only cash will continue to be accepted onboard those flights, just as it is today.

Higher scores needed at time when credit scores are dropping, analysts say

2009-06-02T18:08:45Z

With tougher credit standards, lending institutions are requiring significantly higher credit scores to obtain optimum products, according to a press release issued by Total Credit Care, a Wash.-based credit consulting firm.

The shift comes at a time when credit scores are actually dropping despite a change in spending and payment patterns among some clients. Leslie McFadden of Bankrate.com wrote that a recent trend among banks to scale back the amount of money available on credit lines lowers the debt-to-credit limit, which counts for up to 30 percent of a FICO credit score.

“The changes made by skittish banks to existing accounts may cause some people’s scores to drop,” she wrote.

Those drops in scores, even among strong borrowers can have an effect. Whereas a score of 725 in 2008 was acceptable for the best rates on credit cards, borrowers will likely need a score as high as 820 for the same rates this year.

Total Credit Care’s accountants develop specialized programs for consumers – they are not a credit consolidation company – to help lower debt, build budgets and even remove erroneous information on credit reports. They offer a free analysis that does not require a credit check.

College students may find it tougher to get credit

2009-06-02T17:05:29Z

While much has been made of Congress’ recent action to limit credit card fees, one particular fallout is that college students will likely find it more difficult to obtain credit cards.

According to a recent story in the Chicago Tribune, The Credit Card Act of 2009, which aims to protect consumers from abusive credit card practices, also makes it harder for those under 21 to qualify.

The bottom line for college students seeking their own unsecured credit card is the need for a co-signer.

The requirement is an incentive for greater restraint among college students – often among the worst for running up balances on credit cards – in that the co-signer might have something to say about how much the card is used, for what purposes and how the bills are paid. In working with a co-signer, a student can better learn, so the logic goes, how to manage a credit card effectively.

Without a co-signer, income becomes the biggest requirement, a significant hurdle especially for students who aren’t yet earning more than part-time wages.

The new regulations don’t take effect until February, so those concerned about not having needed credit would do well to apply sooner rather than later.

Also, several companies offer pre-paid credit cards like Facecard that, while not effective in providing emergency funds, do help students build credit histories while in college.

Applied Bank earn A-plus rating from TheStreet.com

2009-06-01T15:45:11Z

Applied Bank earned an A+ from TheStreet.com as one of the top 40 banks in America in terms of financial strength.

TheStreet.com is an independent and unbiased source for rating financial institutions. It rated Applied Bank as the top bank in the state of Delaware.

Bauer Financial and Bankrate.com also honored Applied Bank with its 5-star rating.

Applied Bank’s mission is to be known as America’s leading bank for consumers. It recently issued a secured Visa with a low 9.9 percent interest rate that does not require a personal credit history check.

The maximum amount that can be deposited to secure a matching line of credit if $5,000. The account is insured by the FDIC.

“We are very proud and excited about this product because it truly offers an affordable way for consumers to re-establish good credit,” said Cecilia Koch, a spokesperson for Applied Bank.

Public Savings Bank issues low-cost secured credit card to help rebuild credit

2009-06-01T15:36:45Z

Public Savings Bank has released a new Visa secured credit card designed to assist customers in rebuilding their credit scores.

The card allows money to be deposited in an FDIC-insured account to be used as security for a credit line, according to Bob Wexler, executive vice president of Public Savings Bank.

Wexler believes the low-cost option is especially timely with so many people struggling to re-establish credit after losing their jobs and/or mortgages during the deep financial recession.

“Building good credit is critical at a time when credit is getting harder to obtain,” Wexler said. “This card allows the customer to build good credit while enjoying all the benefits of a Visa card at favorable terms.”

Consumers can apply for the card online at www.publicbankcard.com and be approved with a few hours.

Deposits of anywhere from $300 to $25,000 can be used to secure the credit card, which functions exactly like an unsecured card in terms of purchase and cash advances. The credit line equals the amount deposited.

On-time payments are then reported to all three major credit bureaus to establish a positive credit history.

The card offers zero percent interest on purchases for the first six months and has no annual fee.

“This is a great tool to get credit and establish a good history at the same time,” Wexler said.

Tuffy Auto offers a new credit card for car repairs

2009-06-01T15:31:04Z

Tuffy Auto Service Centers has launched a new credit card to help people cover needed auto expenses during this tough economic climate.

The credit card is just for vehicle expenses like changing parts, ties, oil changes brake and transmission repairs. The Tuff Credit Card offers no annual fees, 90 days no-interest financing and free roadside assistance for one year. The card is valid at each of the 175 Tuffy Auto Service Centers across the country and Exxon/Mobil gas stations.

Consumer can apply for the card online at www.tuffy.com.

Consumers warned about advance-fee loan fraud

2009-06-01T15:24:42Z

A new fraudulent scam from fake lenders is taking advantage of struggling Americans, according to published reports.

Victims found through spyware, fake lending Web sites, telemarketing and newspaper ads are encouraged to by an “insurance” payment on money advances. Funds are wired to Canada and then the promised loan never appears.

The amount of the insurance payment can be anywhere from $400 to $1,800.

In 2008, the Better Business Bureau received more than 2,000 complaints from victims of this type of fraud, an increase of more than 20 percent over 2007.

This rise coincides with credit being more difficult to obtain. Consumers should seek out credit options from established banks with verifiable locations and FDIC insurance.

Credit Card offers to U.S. households slowing

2009-06-01T15:19:13Z

A direct mail tracking service reports that U.S. households are receiving fewer offers for credit cards that had in the past.

Synovate, a market research firm, said its research also shows that what offers are still sent via mail are increasingly offering cards that carry an annual fee.

"Many issuers have scaled back significantly and some have been relying more on proven co-branded airline programs, which typically carry an annual fee," said Andrew Davidson, a vice president in Synovate's Financial Services Group.

American families received over 372 million credit card offers during the first quarter of 2009 compared to more than 1 billion during the same period in 2008.

Of those mailings, 27 percent in 2009 were cards with annual fees, but just 18 percent were fee-related cards the year prior.

Davidson said recent legislation by Congress could push the country more in the direction of a “fee-based model.”

Davidson believes that the current economic crisis has scaled back consumer spending with credit cards, and that an increasing number of consumers are only keeping one or two cards, compared to larger numbers in the past.

New credit card with automated keyboard and pin undergoing trial test in UK

2009-05-29T14:27:25Z

A new effort to combat credit card fraud launched in the United Kingdom last week.

Visa teamed up with UK credit card companies in a trial effort that uses new technology to combat fraudulent purchases made without the actual card being present at the time of transaction. Card Not Present fraud is roughly half of the fraud in the UK, which overall has risen by 13 percent in the past year, according to the Association for Payment Clearing Services.

The EMUE card is a credit card with an embedded keypad, display and microprocessor that is used for authenticating web and telephone-based transactions, according to the company web site.

When shopping, the card-owner will type in a unique pin number, which generates a series of numbers that are required to continue the purchase, whether online or over the phone. If effective the company believes it will be the first effective means of bringing pin protection technology into home purchasing.

Most online purchases require only the three-digit static number off the back of conventional credit cards to make a purchase.

According to a poll by TNS Global, nearly half of 400 consumers surveyed said they would open a new account to get an EMUE card and 65 percent said they would recommend it to their friends and family.

If the trial in the UK is successful it could become commonplace among credit card companies.

Discover Card launches new tool for spending analysis

2009-05-25T19:45:53Z

Discover Financial Services recently launched its newest financial tool, the Spend Analyzer.

Discover cardholders can use the free tool online to better understand where their money goes. The analyzer provides visual representation of all Discover card purchases through graphs and charts, organized into common categories like travel, grocery and gas.

“The financial tool also allows cardmembers to take a closer look at their spending, with the ability to drill down to view a greater detail and compare spending behavior over time,” a press release issued by the company stated.

The Spend Analyzer does not require any importing of financial information, working automatically to categorize purchases and spending information. The tool allows consumers to track and sort spending by category, by merchant or by month. It displays up to two years of credit activity.

“The Spend Analyzer is the latest online tool Discover offers to help cardmembers better manage their spending,” Mike Bousch, vice president of marketing strategy said. “The tool helps cardmembers track where their money goes by providing an insightful, visual representation of where and how they use their card.”

To use the Spend Analyzer, consumers can apply for a Discover card at www.discover.com. Existing cardmembers can use the tool by logging into the account center and clicking on the Tools and Advice tab.