Caution: Traps behind credit card use

Posted by administrator | 21/09/12 | Tagged Credit Card

Caution: Traps behind credit card use
News from People’s Daily Online:

As a credit tool that allows people to buy first and pay later, the credit card has an undisputed function in stimulating the domestic demand and expanding consumption. However, the credit card “has a zero deposit rate but charges fees for withdrawing money” and various credit card promotion activities usually just “look beautiful.”

Furthermore, credit also charges other fees of various kinds, such as the annual fee, service fee, punitive interest and late fee. Consumers usually know little about these items and often “fall into traps” once they are careless.

Credit card charging items have turned into a “mess.” In addition, credit card owners may also suffer severe losses if their cards are stolen. Under this condition, how could the credit card play the role of stimulating consumption?

Why is credit card issuance “so prosperous” but credit card use “so troublesome?”

The extensive increase of credit cards is the main reason for credit card consumption traps. In recent years, various banks have been competing in issuing credit cards and the number of credit cards has sharply increased in China. However, common people’s knowledge and sense of credit consumption are still at a low level of several years ago, and since detailed rules for using the credit card are complex and many, common consum…………… continues on People’s Daily Online

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Police seek couple in illegal credit card use case
News from Salina Journal:

Police seek couple in illegal credit card use case

9/21/2012
ERIN MATHEWS


Factoid: Walmart Credit card theft

Click here to watch the video


Salina police released a store surveillance video from Walmart showing two people accused of using someone else’s credit card to make purchases.
A white man wearing a camouflage jacket, jeans, and a dark baseball cap, and a white female wearing blue jeans and a purple shirt are shown in the video, which can be viewed at salina.com.
The man and woman left the store in small, red SUV that has the rear windshield covered by plastic.
Police ask that anyone with information to call Crimestoppers at 825-TIPS, text SATIPS to CRIMES (274637), or visit pd.salina.org and follow the Crimestoppers link to submit a Web tip. Tipsters may receive a cash reward of up to $ 1,000 and are not required to give their names.


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Five Misleading Credit Card Offers

Posted by administrator | 20/09/12 | Tagged Credit Card

Five Misleading Credit Card Offers
News from Fox Business:

5 Misleading Credit Card Terms

Credit card offers are meant to entice.

Some woo you by imitating elaborate invitations to posh events with glossy paper and origami-style envelopes. Others look serious, even ominous, with words such as “important” or “confidential” written on the outside. Some post pictures of the exotic places you’d go with their credit card.

Don’t believe it. Credit card offers are usually misleading in one way or another. Issuers tend to describe their cards with words that promise more than they really deliver.

Which words should you ignore? Bankrate outlines five types of marketing terms or phrases that don’t mean what you think. Remember: The real meat of a credit card offer is in the fine print, where you’ll find the terms and conditions.

‘Jewelry’ Cards

What’s in a name? It’s a question Shakespeare’s star-crossed Juliet once mused before concluding: not much. That goes for credit card names, too.

It seems issuers are advertising watches or necklaces instead of credit cards. There are the ubiquitous “gold” or “platinum” credit cards, and cards named after precious stones such as diamond or sapphire. There’s even a “palladium” card. It’s the issuer’s most luxurious card and made of the silvery metal, which, ironically, is less precious than platinum.

“The met…………… continues on Fox Business

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Groupon debuts credit-card payments service for merchants
News from The Seattle Times:

Groupon, the largest daily-deals website, is introducing a credit-card reader to vie with products offered by Square and PayPal service and boost revenue from small businesses.

The company will charge U.S. merchants that use its coupons lower fees than Square and PayPal, according to a statement Wednesday from Chicago-based Groupon. The reader is also compatible with Apple ‘s iPhone and iPod Touch.

Groupon, which has been testing the service in San Francisco, is seeking new sources of revenue as diminished demand for daily deals causes sales to fall short of analysts’ predictions. The new service, Groupon Payments, is designed to make the company more appealing to existing clients and potential new ones.

“For the small merchants, credit-card transactions have always been extremely expensive,” said Sameet Sinha, an analyst at B. Riley & Co.

Existing Groupon customers that use the reader will pay transaction fees of 1.8 percent plus 15 cents for cards from Visa, MasterCard and Discover Financial Services.

For American Express cards, fees will be 3 percent plus 15 cents.

Card readers offered by Square charge 2.75 percent per transaction, while PayPal has a 2.7 percent fee.

Groupon rose 14 percent to $ 5.34 at the close in New York. The stock has declined 74 percent so far this year.

The company makes money by sell…………… continues on The Seattle Times

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Have Credit Card Companies Learned Nothing?

Posted by administrator | 19/09/12 | Tagged Credit Card Debt

Have Credit Card Companies Learned Nothing?
News from TheStreet.com:

The facts are clear:

  1. The number of open credit card accounts topped 175 million in July, the highest number in 31 months.
  2. In May, credit card lending to subprime borrowers was almost 14 percent higher than it was when the recession led to a low point in 2010.
  3. Partly as a result of easier lending policies, the number of new credit cards issued in the first five months of this year reached 13.8 million, 10 percent up on the same period last year.
  4. Also between January and May 2012, the combined credit limits on new cards was $ 25.1 billion, up 16 percent on the same figure for the same period in 2011.
  5. In July 2011, balances on all credit cards were $ 48.9 billion. In the 12 months after that, they jumped by $ 2.6 billion, or 5.3 percent.

All of those data were derived from the August 2012 National Consumer Credit Trends Report, which was published by Equifax, one of the big-three credit bureaus.

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Meanwhile, Collections & Credit Risk magazine, a trade journal for the debt industry, reported on Aug. 28 that “charge offs” (industry jargon for when cred…………… continues on TheStreet.com

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Girl, Get Your Credit Straight!: A Sister’s Guide to Ditching Your Debt, Mending Your Credit, and Building a Strong Financial Futu


Is "retail therapy" your favorite pastime–even though you really can’t afford it? Do you ignore the balance on your credit card statements, vowing to pay them off at some point down the line? Is your debt preventing you from living your dreams–like buying a home or starting a family? If so, girl, it’s time to get your credit straight These days, with easy access to multiple credit cards and glossy advertisements that entice us to spend at every turn, it’s all too easy to start racking up debt–and even little slip-ups can lead to real damage over time. In this highly practical follow-up to her bestsellers "Girl, Get Your Money Straight " and "Girl, Make Your Money Grow ," financial expert Glinda Bridgforth delivers a power-packed plan for paying down debt, repairing your credit score, and securing your financial freedom–along with a future that makes your heart sing. Beginning with simple, engaging exercises to help you assess your spending habits and get clear about what you owe, "Girl, Get Your Credit Straight "presents a detailed road map for eliminating debt, one step at a time. You will learn how to: – Devise a system for tracking expenditures, anticipating end-of-month shortfalls, and paying bills on time, every time – Find ways to supplement your income – Consolidate loans to pay off debt faster, decrease stress, and save time and money – Negotiate with your creditors to come up with a payment plan that works for you – Discover the best loans to use for refinancing debt or making major new purchases – Understand how credit bureaus work–and take steps to improve your score Filled with Bridgforth’s warmhearted wisdom and advice, and complete with worksheets, affirmations, and inspiring stories of African American women who’ve restored their credit and built new wealth, "Girl, Get Your Credit Straight "is a fresh, empowering guide for any woman who wants to say goodbye to debt–for good.
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Household credit card debt down in US

Posted by administrator | 19/09/12 | Tagged Credit Card Debt

Household credit card debt down in US
News from 39online.com:

WASHINGTON, D.C.—

Good news for the economy. According to the Federal Reserve, household debt in the U.S. has fallen 19% since 2007 sparking a positive outlook for the economy in 2013. That means people are getting back on their feet and paying down their credit cards. Or so it seems.

Those who specialize in debt counseling suggest the reduction maybe caused by something else altogether.


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“I’m suggesting that probably the decline is caused by the charge-offs,” says Jed Shaw, a Houston lawyer who specializes in debt counseling.

With unemployment still hovering around 8.2% and new clients coming into his office every da…………… continues on 39online.com

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Myhre’s Mind: Struggling with credit card debt
News from Spartan Daily:

by Julie Myhre Sep 18, 2012 1:25 pm Tags: credit card debt, credit cards, Pew Research Center, Sallie Mae, student credit cards, student debt, student loan debt, student loans

Julie Myhre is a Spartan Daily Copy Editor. Follow her on Twitter @julieVmy.

Student debt is a major problem in the U.S., and I have to admit that I am not looking forward to paying off my debt.

According to a 2008

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No quarters? No credit card? No problem! Just use your mobile phone, parking …
News from Deseret News:

New parking technology allows a motorist to enter their license plate and credit card into an app downloaded to their phone. Time can be extended on their phone instead of going down to their car in Salt Lake City Tuesday, Sept. 18, 2012.

Jeffrey D. Allred, Deseret News

     With no public fanfare, Salt Lake City has just taken a big step into a possible cash-free world.

      When drivers pay for parking downtown, they no longer need coins or even a credit card in their pocket. A smart phone will do, or even a dumb one.

    “What the public will notice is a very streamlined way to pay for parking,” said Robin Hutcheson, Salt Lake City’s transportation director.

     City officials haven’t even announced the system yet because they’re still testing it. But technologically savvy drivers have already started downloadin…………… continues on Deseret News

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Credit card use is scrutinized in Prince William schools
News from Washington Post:

The credit card charges add up quickly: A single afternoon’s tab at On the Border restaurant hit $ 1,639, and a hotel stay rang up $ 866 per night. Then there were the hundreds of dollars in Christmas cards and personal gifts.

All told, five administrators at one Prince William County middle school overspent their budget by tens of thousands of dollars while using credit cards assigned to them, according to county officials and an internal audit The Washington Post obtained via a public records request.

Although the purchases at Potomac Middle School in Dumfries are relatively small compared with the $ 10 million spent each year on more than 700 credit cards in county schools, the amount of credit spending at Potomac Middle again raises questions about the county’s fraud and waste safeguards, as the audit’s release comes shortly after an embezzlement case at another Prince William school.

In that case, an initial audit resulted in a criminal embezzlement charge against an elementary school principal, who was found to have put more than $ 8,500 in personal charges on a school credit card. Investigators also found electronics missing from the principal’s school.

The Potomac Middle audit, which details spending from July 2009 to March 2011, found that the school exceeded…………… continues on Washington Post

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This Hollywood Screenwriter Haggled His Way Out Of $ 222000 Of Debt
News from Business Insider:

Kenny Golde

In 2005, indie film screenwriter Kenny Golde’s finances were in nothing short of mint condition.

“I had less than $ 10,000 in credit card debt, more than $ 100,000 in unused lines of credit, a FICO score over 800, and about $ 100,000 in savings even after the downpayment on my home,” he says. “I even adopted a dog.” 

Then the bottom fell out. Within a year, a perfect storm of financial and professional mishaps would carry him down a seemingly never-ending rabbit’s hole of debt. 

By his fortieth birthday, he had amassed a staggering $ 220,000 in credit debt and spent his days sparring with debt collectors, dodging lawsuits and doing all he could to keep bankruptcy at bay. 

That was until an attorney steered him toward a path he never thought he’d travel: Debt settlement––essentially negotiating his debt directly with lenders. 

“The journey took me about a year and a half,” Golde writes in his book,
“The Do-It-Yourself Bailout.” Now “I have reduced my debt … to zero.  I have done this legally, at a fract…………… continues on Business Insider

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DebtAdviser: How to revive your credit after a car repo
News from The Republic:

Dear Debt Adviser: This one’s a doozy: Back in 2009, during the recession, I lost my job, my vehicle was repossessed, and it sold for more than the loan amount. The repo is now on my credit report, and my score is in the mid-500s. This makes it 10 times harder to get back on my feet. I can’t get approved for credit cards or even another vehicle loan. What is the best way to handle this situation and get out on top again? — Clyde — Dear Clyde: You are luckier than most people who have had a vehicle repossessed. They’re usually left with an additional bill because the car sold at auction for less than what was owed.

The fact that you don’t owe any money after your repossession won’t help your credit score. But it may help when you try to get another loan. Lenders like to know that your loans eventually get repaid, and they’ll be looking for proof. You can show this by obtaining a “letter of satisfaction” from your previous lender. It tells potential new creditors that, despite your low credit score, your vehicle loan was paid in full after the repossession.

Improving your credit score significantly will take about two years and consistently good credit behavior on your part. The taint of a vehicle repo and other negative information will fade as you add new, positive information to your credit history.

Here are…………… continues on The Republic

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Gas credit cards provide few rewards

Posted by administrator | 17/09/12 | Tagged Credit Card

Gas credit cards provide few rewards
News from MarketWatch:

By Jennifer Waters, MarketWatch

CHICAGO (MarketWatch) — Don’t waste wallet space with gas credit cards. They tend to be costly with few rewards and don’t have near the flexibility of a general-purpose card, experts say.

“If you give your loyalty to a gas company, you would expect they will give you something back,” said Anisha Sekar, vice president of credit and debit products at NerdWallet.com, a financial-services information site. “Unfortunately, that’s not always the case.”

Gas cards generally are issued in two versions: gas-only branded cards, which you can only use at that station, or co-branded cards that are a Visa or MasterCard and can be used almost anywhere.

Like retail-store cards, gas cards typically carry low credit limits and interest rates that hover at about 25%. In some cases, the interest rate can be higher than the default rate on other cards.

But your favorite department-store card comes with discounts and special cardholder-only deals that you’ll see regularly. That’s not true with gas cards.

“Margins on gasoline sales are already so razor thin they can’t offer you 50% off like a cl…………… continues on MarketWatch

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The New Generation of Credit Users
News from The Herald | HeraldOnline.com:

— /PRNewswire/ —

  • 18-34 year olds finances affected the most in the last twelve months
  • Nearly one in five (19 per cent) of 18-34 year olds with credit have had budgets squeezed, so are relying on credit more this year
  • Yet a fifth (21 per cent) of 18-34 year olds with savings accounts have saved for the first time this year

The last twelve months has taken its toll on our finances, but those aged 18-34 have had to adjust their finances significantly and have also put themselves at risk to extra fees and interest charges by using expensive forms of credit, according to new research* from MoneySupermarket.com.

The UK’s number one comparison site asked respondents about different areas of their finances including credit, overdrafts, loans and savings, and found some good news and bad! Over one in ten 18-34 year olds (11 per cent) admitted they have had to use a credit card to make cash withdrawals (compared with eight per cent of the UK), seven per cent said they had taken out a pay day loan (up from the four per cent UK average), and one in six (15 per cent) had used an unauthorised overdraft (UK average of seven per cent) – all of which risk high f…………… continues on The Herald | HeraldOnline.com

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7 things worth knowing about reward credit cards

Posted by administrator | 16/09/12 | Tagged Credit Card

7 things worth knowing about reward credit cards
News from Chicago Daily Herald:

This has truly been a golden era for credit card rewards programs.

Card issuers have been dangling rich offers of points, miles and cash back for the past year and a half or so in the quest to improve revenue and profit.

Advertisement

The targets of this fierce competition: customers with good to excellent credit records. They are the best kind to have in a stodgy economy, especially in the wake of the CARD Act that cut back on the fees that companies can pocket.

More than 60 percent of all credit-card offers include some type of reward, according to Brian Riley, a senior research director at research and consulting firm CEB TowerGroup.

But it’s been the size and availability of some of the biggest incentives ever that have titillated rewards program junkies. Airlines have offered as much as 100,000 miles when customers spent a required amount on new cards. Bank cards have offered $ 200 cash back for spending $ 500. Another gave $ 250 in gift cards when customers spent $ 1,500.

Specific rewards come and go, and have been scaled back somewhat in recent months. Concerns also have arisen that the pending settlement between Visa and MasterCard and retailers could caus…………… continues on Chicago Daily Herald

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The Biggest Credit Card Mistake Entrepreneurs Make –
News from and How to Avoid It – Terra.com:

image credit: Fox Business

More than 80 percent of small-business owners use credit cards, according to the Federal Reserve. But some make the mistake of reaching for plastic too soon when starting up their businesses and reduce their chances for long-term success.

Nearly 60 percent of start-ups rely on credit cards for financing during their first year of business, according to a recent study from the Ewing Marion Kauffman Foundation, and for every $ 1,000 increase in credit card debt, a firm’s chances of survival decrease by more than 2 percent.

What’s so problematic about funding a start-up with a credit card?

It puts personal finances in jeopardy and increases stress. People often assume that small-business credit cards insulate the owner’s personal finances from the company’s. But that’s just not true. Whether you use a business or consumer card, you’re going to be personally liable for debt. So, relying heavily on a credit card for financing could significantly increase the pressure you feel. If things don’t go as planned, you not only will default on your business debt, but you also will face serious ramifications on a personal level.

You will have limited funding. How much money you’re able to glean from a credit card is largely a function of your credit standing and income. Many entrepreneurs are young and…………… continues on and How to Avoid It – Terra.com

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Police: Man tried to pay bartender with his own card

Posted by administrator | 14/09/12 | Tagged Credit Card

Police: Man tried to pay bartender with his own card
News from Dubuque Telegraph Herald:

MIAMI BEACH, Fla. — Police in Miami Beach said a homeless man broke into a car, stole a credit card and then tried to use it to buy a beer — from the bartender the card belonged to.

The case was cracked when 53-year-old David Weber handed the card to the bartender who took his order Monday night. The Miami Herald reported the bartender noticed he had just been handed his own credit card. The bartender called Miami Beach police. Weber was charged with credit card fraud and theft.

…………… continues on Dubuque Telegraph Herald
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Sometimes A Credit Card Is More Useful Than A Debit Card

Posted by administrator | 13/09/12 | Tagged Credit Card

Sometimes A Credit Card Is More Useful Than A Debit Card
News from Business Insider:

Flickr / BeauGiles

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Man tried to pay bartender with credit card he stole from bartender, say Miami …
News from CBS News:

(Credit: CBS)

(CBS/AP) MIAMI BEACH, Fla. – Rules to live by:

#1 – When stealing someone’s credit card, don’t try to use it at a store where the actual credit card owner works.

Police in Miami Beach say that’s what happened when a homeless man broke into a car, stole a credit card and then tried to use it to buy a beer – from the bartender who owned the card.

The case was cracked when 53-year-old David Weber handed the card to the bartender who took his order Monday night. The Miami Herald reports the bartender noticed he had just been handed his own credit card. (eureka moment!)

The bartender called Miami Beach police. Weber was charged with credit card fraud and theft.

Police say Weber told them he found the credit card on the ground. He was being held in the Miami-Dade County Jail Wednesday.


…………… continues on CBS News
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