Fight Credit Card Fraud with Common Sense
October 6, 2008
By now, you have undoubtedly heard of credit card fraud, an alarming and damaging trend that is sweeping the country. Here’s the bad news: It is disturbingly easy for thieves to obtain your credit card number–usually from discarded receipts or even directly from you. For instance, many solicitors masquerade as legitimate businesspeople–like those who offer vacation packages, for instance–when, in fact, they’re looking for you to innocently hand over your credit card number so they can rack up illegal charges.
The good news is that there are many ways you can proactively and effectively protect yourself against credit card fraud:
-If your credit card has been lost or stolen, report it immediately to the card issuer. You are not obligated to pay for unauthorized charges once you report the loss.
-Sign new cards immediately once they arrive in the mail. Once you receive them, carry them in a separate case from your wallet.
-Notify credit card companies if you are about to move, either temporarily or permanently.
-Never offer your account number over the phone unless you’re dealing with a reputable and legitimate company. If you have any question about a company, contact the Better Business Bureau (http://www.bbb.com ).
Protect Yourself Against Identity Theft
October 4, 2008
Identity theft is when someone uses, without permission, your personal information in order to commit any frauds or crimes. Identity theft is a felony that is becoming more and more common. That is because some of us are not very careful with personal information, making the job easier for those trying to steel our identity. We should always be careful with information like Social Security number, credit card number, birth date, employment information, driver’s license number, etc., because if they enter into the wrong hands the consequences can be very serious. People that have experienced identity theft spend months trying to repair what others have damaged, and in the meantime they cannot get a loan or lose a job opportunity or, sometimes, they can get arrested for something they didn’t do.
If you have the slightest suspicion that someone has gained access to your personal information, acting quickly is a must. First of all, you should get in touch with the fraud department of the credit bureau where you have your accounts and request them to initiate a credit alert on your accounts. This way the creditors are obligated to contact you before taking any actions regarding your accounts. At the same time you should close the accounts you believe that are corrupted. The second step would be filing a police report and keeping a copy of it so to have a proof of the crime.
Credit Report ? How to Improve Your Credit Score
September 30, 2008
One of the great mysteries of life is how the three major credit bureaus (Experian, Equifax, and Trans Union) score credit. They all have secret statistical formulas for determining your credit score, but they are unwilling to divulge exactly what, exactly, constitutes your score. This can make it difficult for people with problem credit to try to improve their score in hopes of obtaining a home or car loan later.
While the exact formula is a secret, there are a few things you can do that will undoubtedly improve your score:
Pay off a home equity line of credit. These loans, which allow you to borrow more than once against your home’s equity, are considered revolving credit, much like a credit card. Pay it down or pay it off; either should help your score.
Check your credit report regularly; you are entitled to a free copy of your credit report once a year. By looking over your credit report, you can make sure that debts you have paid on time are shown on the report, such as student loans, or auto loans that have been paid in full. You can also make sure that your credit limits on your credit cards are reported correctly. Lenders look at the ratio of debt to available credit, and if your reported credit limit is low, it could make it appear as though you are nearly at your credit limit.
Learning the Disturbing Facts about Credit Card Debt
September 27, 2008
When I received my first credit card in the mail at age 18 I was ecstatic, I said to myself, wow now I’m getting somewhere in life. This credit card company thinks I’m worthy of 500 dollars in credit. So I made my monthly payments like a good consumer and watched my credit limit grow. I thought boy this company must think alot of me to take such a risk. I however had no idea how the money came into existence. All I cared about was that as long as when I slapped the plastic down I was approved. Like most young people I had no idea what an interest rate even was much less how it effected my monthly payments. I was like a lot of kids in America today, my parents were not a big part of my early adult life and so I really didn’t have much guidance when it came to making financial decisions. The lessons I learned were hard and I continue to learn as each day passes.
What is Credit Card and Debit Card Blocking?
September 25, 2008
Have you ever been told you were over your credit card limit, or had your debit card declined, even though you knew you had available credit or money in your bank account? If this happened shortly after you stayed in a hotel or rented a car, the problem could have been card “blocking.”
What is Blocking?
When you use a credit or debit card to check into a hotel or rent a car, the clerk usually contacts the company that issued your card to give an estimated total. If the transaction is approved, your available credit (credit card) or the balance in your bank account (debit card) is reduced by this amount. That’s a “block.” Some companies also call this placing a “hold” on those amounts.
Beware the Shopping Mall Monster
September 21, 2008
Like me, you’ve probably been offered a fair old number of these by now…
..and, if you’re like most people, chances are you maybe own at least one or two.
They always seem to put in an appearance at just the right (or wrong) moment…
It might be Saturday and you’ve just seen the clothing item of your dreams.
That can be a pain, though, if this month’s paycheck isn’t due for another week.
You’re undecided.
Until, that is, you’re offered…
..a store card.
One of the horrible ironies about store cards is that the vast majority of people who sign up for one actually had no intention of making a purchase before they left the house.
But if you’re caught in the above situation, the convenience factor frequently wins the day, doesn’t it? Add on top of this all the little goodies thrown in as a sweetener…
An introductory discount on goods ? typically around the 10% mark ? extra money off during sales periods etc…
But let me tell you what the sales assistant probably won’t…
Is Plastic Making You Happier?
September 19, 2008
If you’re like most people, you probably own at least one.
And like most people, you’ve maybe never thought what it’s really costing you?
At a recent conference held by the Fabian Society at London’s Imperial college, one of the issues discussed was happiness, and, more specifically, why it seems to elude so many of us.
One of the conclusions reached was that one of the greatest causes of unhappiness in the last 50 years has been people’s constant desire to raise their level of material wealth (especially in relation to others who have more).
As one speaker noted, ‘We’re like children on a rainy Sunday afternoon, impossible to please. We have everything and nothing.’
You may disagree, but I can’t think of a worse modern symbol of this constant craving than the credit card.
Yes, I know, they might seem a godsend when payday isn’t for another week and a half. Having ‘free’ money can be a fantastic thing…if you manage to pay it back on time that is…
If you’re like a great many, though, and only managing to make that minimum monthly repayment, here are 4 things to think about the next time you reach for that piece of plastic?
0% Credit Cards
September 16, 2008
These days, credit cards in the UK are competing with each other on two very attractive offers with a headline rate of 0%. These 0% credit cards will be either balance transfers; introductory purchases offers or a combination of the two. This article looks at how to get the best out these types of card and the things to that the credit card companies want you to do and therefore the things to avoid. There is a school of thought that believes that these types of card will soon be a thing of the past as they cost the credit card companies too much profit, as consumers get wiser to the pitfalls.
A balance transfer credit card is basically an offer of either a zero interest rate or very low interest rate for a set period. The typical period is 6 months although there are variations on this and there have even been some low rates set for the lifetime of the balance. However, these are becoming rare. Once, the offer period expires then the outstanding balance reverts to the standard rate on purchases. This is very important, as at this point the credit card company will hope the consumer will not take any action and so the company can begin to earn money on the balance.
What To Look For In A Credit Card
September 13, 2008
When you are deciding what type of credit card to get it is important to compare credit cards to each other and find the best deal for you. There are a variety of different credit cards available, from low interest cards, cash back cards and even reward credit cards, it’s hard to decide what exactly the best credit cards are.
The best credit cards are generally going to have a few things in common. The first thing, being a low interest rate. Low interest cards can save you money over time, by not requiring you to pay large amounts of interest on your purchases. Some of the best credit cards in addition to offering a low interest rate will be reward credit cards. Reward credit card will give the user some sort of incentive for choosing their card to make a purchase rather than another. Rewards can vary from cash back to gift certificates at your favorite department store. Some cards will even offer actual merchandise or trips as rewards for using the card.
Credit Cards: Pros and Cons
September 10, 2008
Sure, there are a lot of problems with credit cards, but there are a lot of good things attached to them as well. For instance, if you have a small business, fleet credit cards can keep your books in order when you issue them to drivers of company vehicles for gas and automobile repairs. On the other hand, it’s very easy to abuse department store credit cards. And it’s easy to have too many credit cards open at once.
Credit cards can be great for keeping your business in order; fleet credit cards are a tool you should use. With fleet credit cards, you can keep close watch on the expenses of your automotive fleet while building your company’s credit rating by paying off the card regularly; and because the cards are of limited use, it’s difficult for less-than-honest employees to abuse them. Company credit cards are also handy for keeping tabs on small expenditures, such as office supplies or luncheon meetings. But there’s a dark side to credit cards. When you start to slide into credit trouble, it’s often easier to get department store credit cards; and having too many department store credit cards can lead to missed payments and bad credit.
