Information On Credit Card Articles and News

Researchers See Privacy Pitfalls in No-Swipe Credit Cards

2007-11-16T04:33:00.000-08:00

AMHERST, Mass. — They call it the “Johnny Carson attack,” for his comic pose as a psychic divining the contents of an envelope.

Tom Heydt-Benjamin tapped an envelope against a black plastic box connected to his computer. Within moments, the screen showed a garbled string of characters that included this: fu/kevine, along with some numbers.

Mr. Heydt-Benjamin then ripped open the envelope. Inside was a credit card, fresh from the issuing bank. The card bore the name of Kevin E. Fu, a computer science professor at the University of Massachusetts, Amherst, who was standing nearby. The card number and expiration date matched those numbers on the screen.

The demonstration revealed potential security and privacy holes in a new generation of credit cards — cards whose data is relayed by radio waves without need of a signature or physical swiping through a machine. Tens of millions of the cards have been issued, and equipment for their use is showing up at a growing number of locations, including CVS pharmacies, McDonald’s restaurants and many movie theaters.

The card companies have implied through their marketing that the data is encrypted to make sure that a digital eavesdropper cannot get any intelligible information. American Express has said its cards incorporate “128-bit encryption,” and J. P. Morgan Chase has said that its cards, which it calls Blink, use “the highest level of encryption allowed by the U.S. government.”

But in tests on 20 cards from Visa, MasterCard and American Express, the researchers here found that the cardholder’s name and other data was being transmitted without encryption and in plain text. They could skim and store the information from a card with a device the size of a couple of paperback books, which they cobbled together from readily available computer and radio components for $150.

They say they could probably make another one even smaller and cheaper: about the size of a pack of gum for less than $50.

And because the cards can be read even through a wallet or an item of clothing, the security of the information, the researchers say, is startlingly weak. “Would you be comfortable wearing your name, your credit card number and your card expiration date on your T-shirt?” Mr. Heydt-Benjamin, a graduate student, asked.

Companies that make and issue the cards argue that what looks shocking in the lab could not lead to widespread abuse in the real world, and that additional data protection and antifraud measures in the payment system protect consumers from end to end.

“This is an interesting technical exercise,” said Brian Triplett, senior vice president for emerging-product development for Visa, “but as a real threat to a consumer — that threat really doesn’t exist.”

The finding comes at a time of strong suspicion among privacy advocates and consumer groups about the security of the underlying technology, called radio frequency identification, or RFID. Though the systems are designed to allow a card to be read only in close proximity, researchers have found that they can extend the distance.

The actual distance is still a matter of debate, but the claims range from several inches to many feet. And even the shortest distance could allow a would-be card skimmer to mill about in a crowded place and pull data from the wallets of passersby, or to collect data from envelopes sitting in mailboxes.

“No one’s going to look at me funny if I walk down the street and put a flier in everybody’s mailbox,” Mr. Heydt-Benjamin said.

The experiment was conducted by researchers here working with RSA Labs, a part of EMC, an information management and storage company. The resulting paper, which has been submitted to a computer security conference, is the first fruit of a new consortium of industry and academic researchers financed by the National Science Foundation to study RFID.

Security experts who were not involved in the research have praised the paper, and said that they were startled by the findings. Aviel D. Rubin, a professor of computer security at Johns Hopkins University, said, “There is a certain amount of privacy that consumers expect, and I believe that credit card companies have crossed the line.”

The companies, however, argue that testing just 20 cards does not provide an accurate picture of the card market, which generally uses higher security standards than the cards that were tested. “It’s a small sample,” said Art Kranzley, an executive with MasterCard. “This is almost akin to somebody standing up in the theater and yelling, ‘Fire!’ because somebody lit a cigarette.”

Chips like those used by the credit card companies can encrypt the data they send, but that can slow down transactions and make building and maintaining the payment networks more expensive. Other systems, including the Speedpass keychain device offered by Exxon Mobil, encrypt the transmission — though Exxon came under fire for using encryption that experts said was weak.

Though information on the cards may be transmitted in plain text, the company representatives argued, the process of making purchases with the cards involves verification procedures based on powerful encryption that make each transaction unique. Most cards, they said, actually transmit a dummy number that does not match the number embossed on the card, and that number can be used only in connection with the verification “token,” or a small bit of code, that is encrypted before being sent.

“It’s basically useless information,” said David Bonalle, vice president and general manager for advanced payments at American Express. “You can’t steal that data and just play it back and expect that transaction to work.”

While the researchers found that these claims were true for some of the cards they tested, other cards gave up the actual credit card number and did not use a token or change data from one transaction to another. They also took data in from some cards and transmitted it to a card-reader in the lab and tricked it into accepting the transaction. Mr. Heydt-Benjamin, in fact, was able to purchase electronic equipment online using a number skimmed from a card he ordered for himself and which was sealed in an envelope.

http://www.nytimes.com/2006/10/23/business/23card.html

Choosing a Credit Card

2007-11-16T04:30:00.000-08:00

When choosing the best credit card for you, in addition to being approved, it's important that the card is tailored to your individual financial needs and objectives with low interest rates. The following information will help you decide what to look for:

Questions And Answers

1. Do you anticipate any large purchases in the next year (i.e., appliances, furniture, etc.)?

If you answered yes to this question, you will require a high credit limit/low interest rate credit card. Although this may seem obvious to some, not all people need these things. You might want to consider getting a card with rewards attached to something you are interested in, such as an airline miles card.

2. How long will you anticipate keeping the principal of a purchase on your card?

You will need a low interest rate if you answered more than 3 months on this question. Don't be discouraged by a low credit limit, however, as you'll save money with a low interest rate.

3. Do you want to pay your entire balance every month?

If you want to pay your entire balance every month, you should consider finding a 0% credit card. For example, as long as you pay your bill promptly and in its entirety every month, credit cards such as American Express won't charge you interest.

4. Are you planning to use this card for purchases over a short time period or do you intend to hold it for a long time?

If you plan on holding on to your credit card for along time, you should look for a card that has a moderate credit limit and a low interest rate. If you wish to use your credit card on a short-term basis only, a card that has an introductory 0% interest rate is best, coupled with a plan to pay off the balance by the end of the introductory term.

5. Do you currently have credit limits totaling more than 40% of your annual income or balances outstanding on those cards greater than 50% of the credit limit?

You may have some difficulty securing new credit cards if you answered yes to any part of this question. Part of your credit score is determined by the amount of credit you carry and the ratio of the balance outstanding to the credit limit. Even if you have paid on time, some banks are unwilling to grant additional credit. Therefore, regardless of how close you are to the acceptable credit rating, the best credit card for you may be a card specializing in bad credit.

http://www.new-credit-card-now.com/Choosing_a_Credit_Card.html

How to Find the Best Low APR Credit Cards

2007-11-16T04:29:00.000-08:00

Low APR credit cards are much more prevalent than in years past. Competition is stiff and credit card financial institutions offer many nice perks, rewards, points, low annual percentage rates (APR) and other inducements. They want to capture new customers who've never had a credit card but also those who already have a credit card and might like to save money by transferring that card's balance on to their new low APR credit cards.

Of course, there is nothing lower in an APR than zero - and those exist too, although sometimes for a limited time period. It may be that the lowest, or even the zero percentage APR is for an introductory period, after which the rate is higher. The permanent APR is what you want to watch out for, of course. Although if you're not opposed to doing a lot of switching, you can always purchase a low APR credit card, or zero percentage APR credit card, transfer the balance from your current high APR credit card, and then, once the introductory time period has expired and the APR is about to go up on your newest credit card, transfer the balance yet again to a brand new low APR credit card.

Let's look at a few of the low APR credit cards out there, so you know what kinds of options are typically available to you.

Citibank, for example, offers low APR credit cards that give you five percent cash back on any purchase you making at grocery stores and gas stations with your low APR credit card, and one percent back for any purchase elsewhere. The APR on transfers is zero for the first year. If your transfer transaction is at least $1500 you will earn $5 cash back with the low APR credit card. There is no annual fee and the APR after the first year is 12.24 percent.

Discover has a platinum clear card whose low APR is continual. The first year the APR is zero, but after the first year it's still a very competitive 9.99 percent. And there is no annual fee. With these low APR credit cards you earn a five percent cash back bonus on purchases made from hardware and home improvement retailers, restaurants, book vendors, and gas stations. If the retailer doesn't qualify you for the five percent discount you will always get one percent back no matter what you buy and from where with this low APR credit card.

Chase Bank offers low APR credit cards as well. Its zero percent APR is good for six months, after which you will pay 10.49 percent. These low APR credit cards have no annual fee, and offer rewards at the rate of one point for every dollar spent with your Chase card. You can get free airline flights and hotel rooms, as well as cruises and auto rentals. This card also provides $500,000 worth of travel insurance for worldwide vacationing. You can also take advantage of a fifteen percent discount off a Hertz car rental with these low APR credit cards.

http://www.informationsuperstore.net/pages/credit/

Reviewing Credit Card Statements

2007-11-16T04:27:00.000-08:00

One of the most important ways to keep track of your finances is to regularly review your statements. This is particularly the case with Credit Cards
Where it might be easy to forget what items have been purchased on it and how much you will be able to repay come the end of the month.

Each month it is important to check your statement thoroughly. Not only is this important as a way to keep track of your finances, it is a vital way to ensure that any instance of Credit Card fraud is discovered as early as possible and dealt with.

If errors do occur on the statement it is imperative that you contact the credit card company immediately to register the problem, as it could become difficult to rectify the problem once you have begun paying back what is owed.

The internet is now increasingly being used by savvy consumers to keep track of their finances and checking on credit card transactions is no exception to this.

Online security has become incredibly tight over recent years, making it much harder for hackers to gain access to financial details and giving consumers greater peace of mind when banking online.

Using the internet to keep a check on your Credit Cards spending means that you will not have to wait until the end of the month to see how much you need to repay, therefore allowing much greater control over your own finances. However, where using the internet is not an option, it can prove useful to keep a list of what you spend on a credit card in the old-fashioned form of a pen and paper. This works equally as well as checking online – provided you always remember to note down your credit card spending – and means you can avoid going over-budget without realising it.

One of the most important ways to keep track of your finances is to regularly review your statements. This is particularly the case with Credit Cards

Article Source: http://www.SubmitYourNewArticle.com

One of the most important ways to keep track of your finances is to regularly review your statements. This is particularly the case with Credit Cards

http://www.submityournewarticle.com/Article/Reviewing-Credit-Card-Statements/234658

Your Credit Eligibility Is a Guarantee of Success

2007-11-16T04:26:00.000-08:00

When getting a mortgage or a car loan or a small business loan you realize how important reasonable building of a credit history is. Your credit history is reflected numerically in your credit score.
There are credit bureaus that collect financial information on individuals and estimate a credit score. By the way, they provide some credit fraud protection products. The three major reporting bureaus are: Experian, TransUnion and Equifax. The credit score they provide defines a credit card you may qualify for. But information on your scores provided by credit bureaus may differ. You are strongly advised to review your reports to manage your credit. You have the right to claim for three reports from major bureaus every year. When you get the report you can see whether you match the criteria to get a good or bad credit card.
If your score is 660-749 you may qualify for a good credit card. This gives you such considerable benefits as low APR, 0% balance transfers and various rewards.
If you have a score rating of 620-659 FICO points you can qualify for fair (average) cards. This means you are on the way to a good credit history. Fair cards are unsecured credit cards, considerably contributing to your future. A fair credit score is a transition point between poor and good credit. Being a reliable payer you increase your chances to get a good card.
The score lower than 620 is a bad score. Bad score cards can be divided into secured and unsecured. Secured credit cards demand security deposit which determines your credit limit. If you are late with your payments the money will be taken from your account. You may also apply for an unsecured card for bad or no credit. This is the best way to reestablish your credit history, as they don’t require a deposit and this is good for your report.
Prevention is better than treatment, so you should be familiar with all the credit card details to build your credit history, and not to rebuild it in future. Make sure to get your annual reports and check them out carefully in order to avoid credit fraud, such as identity theft, card scam, Internet fraud etc. Follow some simple tips to escape it. Never tell your personal card details to anybody. Tear your credit card receipts. Try not to always carry your card with you. Report your card loss or theft to the bank immediately.
Obtaining good credit history is a gradual process. Starting from secured bad credit card and ending with good scores it is the result of smart financial behavior. Study carefully how to deal with credits and to avoid debt. Profound knowledge of credit reporting mechanisms will be of a great use. Apply for your card, become eligible and get approved!

Article Source: http://www.SubmitYourNewArticle.com

Azra Jansson is an expert in establishing a new credit. She writes about determining your credit eligibility. She gives advice on customer eligibility for getting a loan.

http://www.submityournewarticle.com/Article/Your-Credit-Eligibility-Is-a-Guarantee-of-Success/235371

Student Credit Cards Are the First Step to Establish Credit

2007-11-16T04:24:00.000-08:00

At present, almost all people have credit cards. And students are not an exception. While some of them use plastics wisely and build a credit history, others get lots of debts. Students that have a plastic should know how to manage their finances as soon as possible, as the time between adolescent years and adulthood is very short. Thus, the sooner students begin to manage their financial matters, the sooner their financial skills will be developed.

These types of plastics help students to learn how to be responsible for handling money. More than that, student plastics are a way of teaching young people about debt. With the wise use students will be able to get more benefits from owning a student credit product.

But on the other hand, student plastics can cause a great amount of debt that may follow students even after their graduation from college or university.

It should be mentioned that credit card companies consider students to be one of the best customers. The first reason is loyalty. Once students get a plastic card, they are likely to keep this particular credit product for years, instead of obtaining a new plastic.

At present, more and more students may get a credit card even if they don't have a steady source of income. And this is one more reason why credit card companies provide students with more and more credit products. They usually can't pay off their debts on time. Moreover, credit companies rely on this fact. They can make lots of money by charging late payment penalties, annual fees and interest fees on unpaid credit balances. Thus, cardholders who can't repay their credit balances in full each month are desirable.

It should be mentioned that the most difficult thing for students is to make the right choice among the large number of student credit card offers. One of the possible ways for students to select the suitable plastic for themselves is to speak to other students who have already had credit cards and to get advice from them.

It goes without saying, that before choosing a plastic card, a student should compare credit card offers and be aware of credit cards' terms of use. Many students who own credit cards recommend the others a plastic with no annual fee and the option to limit the amount of money that can be spent.

Every student wants to have at least one plastic, as it can help him during college years. For instance, a student will be able to buy books or concert tickets, rent a car, etc. Aside from financial help, student credit cards provide young people with other types of assist by building a credit history. Credit history is the record of all things that happen in your financial situation. Credit rating is a system based on such factors as bill paying history, late payments, type and number of accounts, debts and others.

If credit history and score are good, a student will easily get a car or house loan, definite types of financial jobs and other benefits. So, to take advantage of these benefits, a student should pay his bills on time.

Plastics can be a valuable tool for a student. They provide young people with convenience and security, and at the same time they help students to build a good credit history that may be needed in the future.

Article Source: http://www.SubmitYourNewArticle.com

In her articles Rachael Wimbley puts emphasis to possible ways of taking advantage of online credit card applications and getting the right plastic card. Search for more information about points rewards cards on the website.

http://www.submityournewarticle.com/Article/Student-Credit-Cards-Are-the-First-Step-to-Establish-Credit/236239

Three Reasons To Check Your Credit Card

2007-11-16T04:23:00.000-08:00

While there are some very organised people out there who open every piece of mail as soon as it arrives, and take the appropriate action straight away, many of us don't quite take the same approach. In our time-pressed lives, opening mail may not be a priority, and especially in the case of credit card statements which are usually easily recognisable from the envelope, they may sit unopened all through the month until the next one arrives. This, however, is not really a good way to deal with things, and here are three reasons why.

Credit cards are somewhat notorious for giving us the ability to run up debts without really realising what we're doing. Because it's so easy to spend when you're within your limit, there can be little to stop us from making impulse purchases or even using the card to pay essential bills from time to time. Opening your statement each month as soon as it arrives helps us to keep a realistic impression of how much we're spending. If you don't check your account very often, it's all too easy to receive a nasty surprise, with the debt being a lot larger than we anticipated.

The second reason that you should examine your statement each month is to detect any possible fraud before too much damage is done. We tend to think that if somehow our card details find their way into the hands of criminals, then the account will be cleaned out straight away. Not all fraudsters work in this way though, with more subtle attempts to 'fly under the radar' by only withdrawing small amounts. By doing this they are less likely to be detected, as the card issuers' monitoring systems might not spot the fraud as easily. By checking that you recognise each transaction on your statement, you stand a much better chance of minimising the damage caused identity theft and fraud.

Thirdly, your statement will include details of any charges or changes made by the credit card issuer that you might not have been aware of otherwise. For example, a change to your statement date may mean that your regular payment now misses the due date, leading to late payment fees. Or, a change to the minimum repayment may mean that you need to change the amount you automatically pay each month - only by checking your statement will these circumstances be made clear, especially considering the legalese used in the typical credit card terms and conditions leaflet!

So, even though dealing with regular mail such as credit card statements may seem like a chore, and something that we can neglect in favour of more interesting or important activities, reading your statement could actually end up saving you time and money, and it really only needs to take a few minutes a month!

Article Source: http://www.SubmitYourNewArticle.com

Michael writes for Card Sense UK where you can compare best buy credit cards, cards with cash back and rewards, and 0% credit cards along with reading credit card related information and articles.

http://www.submityournewarticle.com/Article/Three-Reasons-To-Check-Your-Credit-Card-Statement/240100

Tips on Eliminating Credit Card Debt

2007-11-16T04:19:00.000-08:00

I read recently that the average family has at least $10,000 in consumer credit card debt. Being one of those 'average' families, I've been there, and know how difficult it can be to make any headway in getting out of debt. For many years now, credit card companies have been making it SO EASY for all of us to get into debt by offering credit cards to practically anyone regardless of creditworthiness or ability to pay. I have a family member who lives on a disability income of about $700 a month, and he carries a couple credit cards in his wallet! Easy credit has been one of the major factors behind the looming financial crisis we now face as a nation. While there is not a lot that we can do about the mortgage meltdown or collapse of the dollar, there are steps that we can take to get our own financial house in order, and one of those is eliminating credit card debt.

Growing up as a child, I recall that my parents owned neither a house or a car. While my father worked his entire life, he had a large family, and never seemed to be able to save enough money to buy a house. In those days, in order to be able to buy a house you had to be able to either pay cash, or put a very large down payment on it. There wasn't a whole lot of 'credit' available. People back then basically had to live within their means. Unfortunately, easy credit has enabled most of us to live well beyond our means. I once had a friend say to me, "Bill, you can afford anything you want, you just have to stretch the payments out longer". While exaggerating a bit, the truth is most of us live as if we can afford anything we want. In order to get our financial house in order, we first need to see where we stand.

I have an acquaintance who could not seem to make any headway financially. He was always complaining about his wife's spending habits saying that she was constantly spending, keeping them both in debt. I asked him if he had ever sat down with her and made a comparison of income versus expenses. After gazing at me for a few minutes with a blank expression on his face, he admitted that he had never done this. After much prodding, and a few arguments with his wife over money, he finally sat down with her to do an examination of their finances. To his surprise, he found that their fixed monthly bills were larger than their income! After several apologies to his wife, they agreed that they had to make some changes, and for them that was his wife getting a full time job, and cutting back on spending in a couple of areas. One of the first things you should do is take some time to do an evaluation of your finances to see exactly where you stand. Are you spending more than you are making? If the answer is yes, than you need to make some changes, specifically spending less and/or earning more.

Once you know where you stand financially, be determined to eliminate debt by using a systematic approach. Increasing your monthly payment will reduce your debt and pay it off faster because the extra amount goes to paying off the principle. Always try to pay more than the minimum payment. Credit card debt will come down much faster by making payments in large chucks as opposed to making the minimum payment. Be determined to increase the payment amount by again either reducing spending in other areas, or if necessary, increasing income. Even a part time income that allows you to make an extra $200 a month payment will reduce your debt much faster.

There are some specific strategies you can use to help eliminate credit card debt. First, make certain that you make all credit card payments on time. Having just one late payment on a credit card can make your interest rate jump 500%! How is this possible you ask? Say you're paying 4.99 percent interest on a credit card. Have a payment arrive late, and your rate can jump all the way up to 25%, or in some cases more! That's 5 times what you we're paying and that will make a huge difference in how much interest you pay. One of the best ways to make certain that you don't experience this shocker is to make your payments online. Making your payments online is usually done in real time, as opposed to putting your faith in snail mail. I once mailed a letter from a post office 2 miles from where the credit card office was located, and had a late payment because the letter arrived two weeks after it was mailed! Save yourself this potential headache by setting it up to make your payments online.

One tactic that credit card companies like to use is luring you in with 'teaser' rates. This is where you get a promotional rate for a specified period of time. While you can save money taking advantage of these rates, you have to make certain that it's worth your while to transfer balances from another card because of 'transaction' fees. With recent changes in the credit card industry, you can be assessed hefty amounts for transferring balances from one account to another. If you are going to transfer from an account with a high interest rate to one with a lower one, make certain that the promotional period lasts long enough to make it worthwhile. It should be for at least a year, and if possible longer. Again, remember that if you make a late payment your rate will shoot up to a much higher rate. Avoid late payments like the plague!

Another thing to watch out for is opening up too many accounts. If you are in the habit of constantly opening up new accounts to take advantage of promotional rates, be aware that this can impact your credit score by sending 'red flags' to credit agencies. You might be better served to find a credit card with a lower fixed rate that remains the same until the balance is paid off. While you may pay a bit more in interest this way, you won't be constantly paying transaction fees and possibly harming your credit score.

Another recommendation advocated by many financial 'experts' is to consolidate your balances into one account. This strategy has several advantages including some listed in the previous section, but also it is much easier to manage one payment than trying to make numerous payments to various credit card companies. You will not only find it easier to avoid late and missed payments, but you'll experience less stress making one payment as opposed to five or six spread out all over the place.

As we watch the upheaval in the financial markets, it's hard to say where it will all end, but the smart bet says that it won't be a good thing for most of us. Now more than ever, it's imperative that we get our own house in order by getting our spending and debt under control. Your financial health depends on it!

Article Source: http://www.SubmitYourNewArticle.com

Bill Thomas is actively engaged in Network Marketing. He also contributes articles on business, life and othe topics. His current website is..Create Income from Home With Your Own... Internet Home Business

http://www.submityournewarticle.com/Article/Tips-on-Eliminating-Credit-Card-Debt/240371

Eliminating Some Credit Card Risk for E-Business

2007-11-16T04:17:00.000-08:00

Introduction

Credit card fraud is the biggest risk for the e-merchants. While all businesses accepting credit cards face this, the Internet merchant is even more exposed. Brick-and-mortar businesses can verify a signature to prove the authenticity of the payment, but there is no such protection for businesses on the Internet. Due to this increased risk, the credit card banks hold Internet merchants 100% liable for the losses and expenses incurred as a result of credit card fraud. The defrauded merchants not only suffer because of the loss of product or services, but they are expected to pay a charge to defray the expenses the bank incurred from dealing with the fraud.

The amount of money lost to online credit card fraud is staggering. One market report estimated that more than $230 million in losses were suffered by Internet businesses in 1999 as a result. (See http://www.verifyfraud.com/merchantsite/highercost.asp for more information.) In a Forbes magazine report, the estimate for 2000 was over $600 million.(See See http://www.forbes.com/2000/06/21/mu6.html for more information.). Another report states that in the UK, 9 out of 10 e-businesses were hit by online credit card fraud. Judging from these figures, estimates are that about $18 billion will be lost in 2002.

Internet businesses hardest hit by credit card fraud include computer suppliers (hardware and software), electronics, and music/game Web sites. This is primarily due to the products' popularity , the ease of resale, and the speed with which a criminal can dispose of them and turn a profit. With the increase in e-commerce business, it's certain that the amount of money lost to fraud will increase exponentially.

The main reason credit card fraud is so high for Internet businesses is due to the anonymity of the entire transaction. A "fraudster" makes purchases without presenting an actual credit card, signing a receipt, or being seen. Additionally, if physical goods are involved, the criminal will most often use a temporary address to receive shipment. These factors make it very difficult for a small- or medium-sized e-enterprise to track down even a fairly novice online culprit.

Proactive Solutions

While it is difficult to prevent credit card fraud, large e-commerce companies have begun to build systems that proactively check parameters entered on an order form while it's being processed. Many footprints of glaring information can identify a transaction as a fraudulent one. For example, a survey of more than 200 companies performed by the Saint Hamilton Group shows 163-plus companies reported seeing vulgar words entered as either a first name, a last name, or part of an address in an online order form. The same survey also reports that companies linked directly to their bank processors in realtime via the Web were most susceptible to online credit card fraud. Therefore, I decided to develop a solution that would cut down on such incidences and created a component called SC Profanity Check.

SC Profanity Check

SC Profanity Check is meant to check data form fields for profanity. If profanity is found, it notifies the end user that the system has detected a potential fraud. Note that such an approach often tells the culprit they've been detected, thus scaring the hacker into either aborting the transaction or submitting their real information. You can download the component here.

About the Author

Michael Chiam is the CEO of Saint Hamilton Group, a leading credit card fraud detection and risk-management company. He has been programming in C/C++ since 1993. His areas of expertise include Visual C++, C++, C, Java, Visual Basic, ASP, XML, SQL Server and other expert systems. He's an expert in credit card fraud detection and credit card processing systems. In his spare time, Michael Chiam is also a venture capitalist and angel investor. He can be reached at michaelchiam@sainthamilton.com.

Preventing Credit Card Fraud

2007-11-16T04:15:00.000-08:00

Many people are wary about using their credit cards, especially online, because of the possibility of becoming a victim of fraud. While fraud does happen, and costs hundreds of millions every year, there are some simple steps you can take to protect yourself and make it unlikely that you'll become a victim.

- General

There are several other measures you can take to reduce the chances of becoming a victim of credit card fraud, and most them are pretty much common sense. You should sign any new or replacement cards as soon as you receive them, and cut up the expired cards making sure to cut through the magnetic band on the back.

Never keep your pin numbers written down in your wallet or purse, as if you lose it or it's stolen a fraudster will have both your cards and their pins. Also, report any stolen or lost cards to the issuer immediately, so that they can be cancelled before falling into the wrong hands.

Open your statements and bills as soon as you receive them, and check them carefully for anything you don't recognise. If you spot something you're unsure of, call your card company straight away and ask them for more details. After checking your statements, either file them away somewhere safe, or shred or burn them. Never simply throw them away - they contain far too much valuable information that can be used for fraud purposes.

- Online use

The most important rule to follow is to only use your card online at trusted, secure sites. You can recognize a secure site by looking for a yellow padlock symbol appearing in your browser, and also by the address starting with 'https' rather than 'http'. Sites secured like this encrypt all the information sent back and forth to your browser, meaning that it's very dificult indeed for someone to spy out your credit card details.

Also make sure you're confident of the identity of the site asking for your details. Avoid any sites that send you an email asking for your card details - they might not be who they claim to be. It's better to phone the company direct to make sure their request is genuine.

You should never give out your card details in an email, as there is no encryption involved and there's always the danger that a fraudster could intercept your message and gain your details.

Finally in this section, make sure that your virus protection is up to date and that your computer is clean of any 'spyware'.

- Offline use

If at all possible, don't let the card out of your sight when paying, to reduce the opportunity for a fraudster to make a copy of your card. This is easier nowadays with the arrival of the handheld chip and pin input devices that are brought, for example, to your table in a restaurant.

It's advisable not to send card details by fax, as you've no control over how long the fax will be left unattended at the receiving end. A faxed copy of your card number, expiry date, security code and signature makes it altogether to easy for a scammer!

Only give your credit card number over the telephone if it was you who made the call, and you're certain that you're speaking to a genuine person. If someone calls you claiming to be from a company you deal with, and asks for your details, ask for a phone number to call them back on - via a switchboard operator if possible - and verify that the number is correct.

All this might seem like a lot of work, but remember that with most credit card accounts you won't be held liable for any fraudulent use so long as the fraud hasn't happened through your own negligence. Following the steps above is very powerful evidence to the card issuer that you've done everything possible to protect your account's security, so if you're unfortunate to become a fraud victim then the financial damage to you will be kept as small as possible.

Originally submitted by: Michael D. Strauss

http://www.myfinancedirectory.com/article/Article/Preventing-Credit-Card-Fraud/766

Credit Card Debt

2007-11-16T04:14:00.000-08:00

Credit cards seems to be really helpful when you are in emergency and do not have hard cash with you. However, most people do not use credit cards only during emergency, they use it to fulfill their desires which is the main cause that makes them fall into credit card debt. These times are very stressful and can cause serious financial problems.

Here we recommend you some useful tips to eliminate your credit card debt.

1) Create a Budget and stick to it: If it is very difficult for you to control your spending habit and to live in your budget. Therefore it is better for you to prepare a budget for yourself. Try to avoid extra expenditure and stick to your prepared budget. Don’t carry your credit card with you, if you can’t control your expenses.

2) Restrict yourself to One or Two Cards: Always try not to signup for more than two credit cards. At some super markets this technique might cause you some problem but after all, you will be able to save money.

3) Avoid using the available credit line fully: People think that credit card is a facility, yes to some extent it is correct but you must think that no one will give you this service without any advantage. They add interest and other fees in your account. So avoid using credit carda frequently. Use your credit cards economically and wisely.

4) Spend money within your means. This is easier said than done as we often use the credit cards to simply get some credit. And that credit is something we need as we don´t have the means available in any other way.

5) Try to pay more than minimum payment: To recover your credit card debt, try to pay as much as you can. Pay more than the minimum decided payment. In this way you will get rid of your credit card debt very soon. If you stretch the time limit to pay, then you have more interest to pay. By making some extra efforts it will be easier for you to repay the debt.

6) High interest debt should be paid first: We recommend you to pay the high interest debt first. It is better for you to manage all your money to pay high interest loans first and then move to other loans. If you are facing a problem with this option then we will advise you one more option. That is to pay off all of your smaller loans and and then come to larger ones.

7) How to manage money for repayment: If you can’t manage money, you can take a personal loan or a loan against your life insurance or loan for credit card consolidation. In this way you get a loan with much lower interest rate and a pay plan that often has a longer payback time.

8) Take advantage of the possibilities to get help. It is great to have a live person to talk to about this kind of problems. You can find them in your bank and there are also public officials to turn to. A search on the internet will help you find them.

With all these tips we are sure that you will soon get rid of your credit card debt.

Originally submitted by: Keith George

http://www.myfinancedirectory.com/article/Article/Credit-Card-Debt/582

Making Sense Out of A Student Credit Card

2007-11-16T04:13:00.000-08:00

Being a student in college can be fun, especially if you have access to funds - without having to worry about always carrying cash with you. A student credit card can take care of many of those problems and provide you with a credit rating for later on, too. Here are a few things you need to know about how to select a student credit card that will be just right for you.

Two Kinds Of Cards

If you already have a credit rating, then you may be able to apply for a regular credit card. Otherwise, you will probably have to settle for a secured credit card. These kind of credit cards require a deposit of close to the amount of the credit limit on the card - and some even more. There is usually a higher rate of interest, an annual fee, and oftentimes there are other ones, too. You will probably want to stick with the major companies, though, since there are scams connected with this type of credit card.

Check The Interest Rate And Fees

Every credit card has an interest rate. It only applies however, after the introductory offer, and if you leave a balance on the credit card or pay late. Your introductory offer can be anywhere between three and fifteen months. Many student credit cards have fees attached, and there may be more than one.

The Rewards Offered

You can find different types of rewards with different companies that offer student credit cards. There is quite a variety of rewards that you can get, including CD's or DVD's, free movie rentals, discounts on clothes and books, and much more. If you want, some students cards are geared toward drivers and your points can be used toward the purchase of you next car - new or used.

Most student credit cards will give you one point for every dollar that is charged to the card. Some companies will give you different rates of credits for different types of purchases. This means that you may get one point for every dollar charged, but you also could get as much as five points toward the purchase of things related to the card.

Special Benefits For Good Grades

There are some student credit cards that give a whopping 2,000 points per semester if you maintain a B average or better. That adds up to 4,000 points a year, and that will definitely give you some buying power.

Student credit cards are also geared to help the student to be able to get good credit if they use the credit card wisely. This means that they may require you to read some material before they issue the credit card. The issuing company will also usually make online services available so that the credit card can be paid easily - and on time. Besides the above, at least one credit card will also give you 25 points each month that the payment is made on time. Before you actually sign-up, though, you will want to compare the various student credit card offers and this will enable you to get the best one for your needs.

Article Source: http://www.articlemonk.com

Joe Kenny writes for Card Guide, offering the latest information on credit cards, visit them today for the latest credit card articles.
Visit Today: www.cardguide.co.u

http://www.articlemonk.com/Article/Making-Sense-Out-of-A-Student-Credit-Card/1994

Accepting Credit Cards: Getting a Merchant Account

2007-11-16T04:10:00.000-08:00

Today's Web developer needs to have a thorough knowledge of how to build commerce-enabled Web sites. One of the most mysterious areas, for clients and Web shops alike, is the process of setting up a Web-enabled credit card merchant account. The gold rush of e-commerce has spawned hordes of pick-and-shovel peddlers. If you search for information on credit cards, you'll find page after page of outfits, all offering to get your credit card scene together pronto and cheapo. All of them try to make the process of getting a merchant account sound extremely difficult and complicated (if you buy their product, of course, it becomes easy). I am sorry to say that not a few of these outfits are shaky, shady, or simply scams. What do you really need to get credit card transactions going on a site, and how do you find a reputable bank that's knowledgeable about the Internet?

I won't begin this article by expounding the virtues of credit cards, because that would sound too much like the blobs of Spam that appear in your mailbox every day. All I'll say is that the first sentence or two (and little more) of those Spamograms is usually correct - if you want to do business online, you do need to accept credit cards. Forget about "virtual cash" and "smart cards." Credit cards are here now, and are rapidly becoming the payment method of choice whenever possible. Most or all of the retail business transacted over the Web is done with credit cards.

You can also forget the scare stories you've heard about credit card security risks. The whole rigmarole about hackers sniffing packets and harvesting your credit card numbers made great press, and sold a tremendous number of magazines about a year ago, but it was mostly pretty far-fetched stuff, and it's old news now. If I really must debunk this bugaboo (my regular readers know how I hate debunking bugaboos), let's briefly revisit three facts:

1. Most credit card companies limit your liability in case of credit card theft to a small amount, perhaps $50 - 100, so that's the most at stake even in the worst-case scenario, which is that the first documented Internet credit card rip-off in history just happens to happen to you.
2. For obvious reasons, credit card numbers are much more likely to be stolen when you use your card in a restaurant or over the phone than when you use it over the Web.
3. By taking a few simple precautions, you, the Web site owner, can make it difficult enough to breach your security that it simply wouldn't be worth anyone's time to make the attempt. If somebody wants to run a credit card rip-off, there are far easier ways to do it than hacking into a site that has taken basic security precautions.

Having said all that, the fact remains that perceptions are often more important than facts, and the majority of people out there are probably still convinced that using credit cards over the Web is extremely risky. It's very important for you to make sure that your online sales system is as secure as practical, and to convince your site visitors of this fact.

http://wdvl.com/Internet/Commerce/MerchantAccounts/

Accepting Online Credit Cards

2007-11-15T00:13:00.000-08:00

When you opened your new business, you thought that everything would be fairly straight forward. After all, businesses every day complete credit card processing, online credit card approval, and internet business. But finding the right way to set up these services for your particular business can be complex and time consuming.

How To Set Up Credit Card Processing

If you want to accept credit card online, you’ll need to set up a credit card merchant account with a reputable firm. There are countless resources available to the new business owner for just this occasion. A wide variety of them can be found online. Search for either credit card processing or credit card merchant account online and begin to visit some of the sites listed in the search results.

Each company will offer its own version of a merchant account. You will sign a contract and pay a regular fee to use the services provided. They company should provide you with all the equipment and software necessary to successfully accept credit card online.

The Options

If you are looking to set up an online account so that you may accept credit card online, you will want to establish a relationship with a reputable company that has been doing business with internet companies for a number of years. Read the testimonials and make sure that the website covers all of your questions and concerns.

Some companies will charge you set up fees or programming fees. Compare each credit card merchant account side by side to see which one charges fees for which services. If fees are waived down the line, it may because the set up fee is so high. If set up is free, you may find hidden fees that will be charged to your merchant account at a later date. Set up a comparison chart for yourself with the major features and what each company offers.

What You Need

Obviously, if you want to accept credit card online, you’ll need to have a website or at least a presence on an existing site.

Most credit card merchant account will require that you pass a credit check. Be sure that you can meet the qualifications of the company you choose. Decide on a back up company or two if you have bad credit or a history of late payments. If you are turned down by your first choice, you can apply to the second or third company on your list.

You will also need an online shopping cart for your customers to use during their visit to your website. The shopping cart stores the items they wish to purchase until they are ready to complete the transaction. With credit card processing, the shopping cart totals all merchandise, plus tax and shipping charges. The merchant service you choose should provide you with an online shopping cart.

Overall, remember to check the reputation of the company you choose and don’t settle for a credit card merchant account that doesn’t meet all your expectations. If one company doesn’t offer what you’re looking for, keep looking.

http://www.selectcreditfast.com/resource/9325550/accepting-online-credit-cards.html

Common Credit Score Myths

2007-11-15T00:11:00.000-08:00

A lot of credit score myths about fico score ratings get spread around and some of them are just outdated information. Sometimes even lenders can give you the wrong advice and it can get confusing. But the bottom line is bad information can cost you money no matter who you get it from.

Fico score ratings are used for most mortgage lending, which means, you need to know what will hurt or help your credit score points. To make it clear, here are some of the most common credit score myths.

* Checking your credit report will hurt your credit score

Checking your own credit report and credit score counts as a soft inquiry and does not go against your score. However, if anyone else like a lender or credit card company is checking your credit report, this is considered a hard inquiry and will generally knock off about 5 credit score points.

The credit score rating system treats multiple inquiries in a 14-day period as just one inquiry. The system ignores all inquiries made within 30 days prior to the day the credit score is computed. So if you want to minimize the damage from credit inquiries, shop for a loan in that short period of time.

* Closing old accounts will improve your credit report score

Sometimes even lenders will tell you to close your old and inactive accounts as a way for improving your credit report score. In most cases, closing old accounts will actually have the opposite effect with the current credit score rating system.

Canceling old credit accounts can actually lower your credit score because it makes your credit history appear shorter. If you want to reduce your levels of available credit, it's better to reduce or close new accounts instead. Applying for new credit is more likely to lower your score.

* You need to check more than just FICO score rating

If you ever hear this from anyone, consider it a red flag. All of the three major credit reporting bureaus offer FICO credit score ratings using the formula developed by Fair, Isaac. Even though each one gives the scores a different name you only need a fico score rating from the three major credit reporting bureaus.

At Equifax, the FICO score rating is called the Beacon credit score. At TransUnion, it’s called Empirica. At Experian, it's known as the Experian/Fair, Isaac Risk Model.

The reason each of the three major credit reporting bureaus will have three different scores is because they don’t all share the same data. So when checking your credit report, just make sure it comes from the three major credit reporting bureaus: Experian, Trans Union and Equifax.

Examine your credit reports from all three major credit reporting bureaus before you apply for a big loan like a mortgage. Fix any errors in all three reports before you shop for a loan because it takes time to correct your credit report.

* Credit counseling will hurt your score

The current FICO credit score rating system ignores any reference to credit counseling that may be in your file. The researchers at Fair, Isaac, the company that created the FICO credit scoring rating system, found that people getting credit counseling didn’t default on their debts any more often than anyone else.

However, any late payments you've had with creditors will hurt your credit score. Credit counseling can hurt your ability to get a loan because you probably have had trouble paying creditors.

Some lenders will back away if you are in credit counseling. Others may see it differently, but usually will charge you higher interest rates than if you had perfect credit.

The best way to improve your credit report score is paying your bills on time and paying down credit card debt. Check your credit report regularly for any errors and make sure you don't fall for these common credit score myths.

This article is supplied by http://www.credit-repair-facts.com where you will find credit information, debt elimination programs and informative articles that give you the knowledge to correct your own credit and credit report. For more credit related articles like these go to: http://www.credit-repair-facts.com/articles_1.html

Article Source: http://EzineArticles.com/

http://www.selectcreditfast.com/resource/9325550/common-credit-score-myths2.html

Fun with Credit Cards

2007-11-15T00:10:00.000-08:00

For those of us who know how to use them properly, credit cards can actually be quite fun and lucrative. To those who do not know how to use them properly, I would say that you should stop reading this column right about now, or at least I would advise you not to try any of this stuff at home. What I'm about to describe is not one of those illegal credit card schemes. Instead, I'm talking about taking full advantage of the benefits and offers that credit card companies and store chains offer their customers all the time.

I get several credit card offers each month, but I only accept those that come with no annual fee and pay me at least one percent cash back or credit on my purchases. I don't care about the interest rate. It could be some exorbitant rate like 50% for all I care, since I never carry a balance and always pay off what I owe at the end of each month. Right now, I probably have about 15 different cards, but I only regularly use three of them.

I have one card that gives me an instant five percent credit on my gasoline purchases. Therefore, I buy all of my gasoline with this card and never use cash to buy it. I have another card that gives me five percent cash back on any purchase I make at a drug store or grocery store. Needless to say, I try to use that card exclusively at those establishments. The third card I regularly use gives me a one percent instant credit on all purchases. I use it for just about everything except purchases of gasoline or purchases at drug stores or grocery stores. The more I use my cards the more credits and cash back I get. The credit card companies are, in effect, paying me to use their cards and I am more than happy to oblige.

Some credit card companies will take things one step further and even pay you to take their cards. These payments will take the form of gift certificates, bonus cash back, and/or bonus credits. There is one minor catch in that most companies will generally require that you use the cards at least once each to get those benefits. That's never a problem for me as I will use them once to get the benefits and then toss them into my "inactive" drawer.

Having lots of credit cards means I get lots of offers in the mail (and sometimes by phone) from the credit card companies in which I am asked to try out some kind of worthless subscription for 30 days. Most of the time, I just throw these offers in the trash can. However, there are some that I will try because they will "bribe" me adequately to do so. However, they must offer me at least $10 and the offer must have a free trial period. I will then cash their check, put the money in my pocket, and cancel before the free trial period ends. However, I have found that I need to be careful with these offers. Sometimes they'll offer me $10 to try something that costs $10 (or more) per month, with no free trial period. I avoid those like the plague, since the best I can do is break even.

Speaking of worthless subscription offers, most credit card companies will push some kind of credit card insurance. The way it works that you pay about half of one percent of your monthly purchase totals so that this insurance will make your minimum monthly payment in case your are disabled, laid off, have a death in the family, or suffer some other kind of qualifying malady. This insurance may be a good idea for those who run a monthly balance and only make the minimum payment, but it's worthless to those of us who pay off our balances each month. However, the credit card companies will never acknowledge this fact and will pay you to try it and will usually give you a free trial period.

I take these subscriptions only for cards that I don't use, so it never costs me anything. What's better is that when I try to cancel it, they bribe me again to keep the subscription active! The bribe is usually in the form of rebate tickets of $10 to $25 per month for about six months. When I make a purchase that equals or exceeds the face value of the ticket, I send in the receipt along with the ticket and get a cash rebate about eight weeks later for the face value of the ticket. Then, when the tickets run out and I attempt to cancel my subscription again, they offer me even more tickets to stay subscribed. Sometimes, I have tried to cancel before the six months ran out and got even more tickets for the same card in overlapping months! If you have several cards you don't use, each with one of these subscriptions, the rebates could really add up!

In addition to the cards issued to me by the credit card companies, I have several cards issued by store chains like Sears, JC Penney, Hecht's, etc. Most of the store chains that issue credit cards will offer discounts of 10, 15, 20, or even 25 percent at various times for simply using those cards to make purchases at their stores. Some will even offer a bonus discount for just signing up (and being approved, of course) to take one of their cards! They can afford to do this because they know that most people will not pay off their balance each month, but will instead make the minimum payment along with paying an ungodly amount of interest. The stores will more than make up for those discounts right there. Meanwhile, those of us who don't run monthly balances reap the benefits of discounts that other people are paying for!

What I have just described is not illegal, immoral, or unethical. Credit card companies and store chains are in the business to make money and sometimes they'll offer things that don't seem to make sense in order to maintain and/or expand their customer base. Contrary to popular belief, credit card companies do indeed make money off people like me, who never pay a dime in interest or annual fees and take full advantage of all of their offers. The money comes from the businesses that accept those cards by way of the fees they pay each I time I use one of my cards. Those businesses, in turn, are willing to pay these fees in order to attract as many customers as they can. Therefore, everyone in the credit card cycle benefits. Those who use credit cards the way I do are just making sure they are getting their piece of the pie.

Terry Mitchell is a software engineer, freelance writer, and trivia buff from Hopewell, VA. He also serves as a political columnist for American Daily and operates his own website - http://www.commenterry.com - on which he posts commentaries on various subjects such as politics, technology, religion, health and well-being, personal finance, and sports. His commentaries offer a unique point of view that is not often found in mainstream media.

Article Source: http://EzineArticles.com/

http://www.selectcreditfast.com/resource/9325550/fun-with-credit-cards.html

Credit Cards or Store Cards - Which Is Better?

2007-11-15T00:09:00.000-08:00

Introduction

In this article, a presentation is made of the differences between major credit cards and credit cards offered by specific stores to their customers. The purpose of this article is to provide a general overview of major credit cards and store cards to aid consumers in making decisions regarding which lines of credit lines would be the best for them in a given set of circumstances. In most situations, due to the higher rates of interest charged by most store-specific cards, it is best for the budget-conscious consumer to consider forgoing those accounts in favor of a major credit card.

With that said, we are not endorsing any particular credit card brand in this article. Rather, the materials presented are for informational and educational purposes only.

General Availability

Major credit cards are accepted in a wide variety of places and venues. Indeed, the major credit card companies make it a point of promoting how wide spread card acceptance is in this day and age.

On the other hand, store-specific credit cards are good only at the issuing store.

Where to Apply

It is simple to apply for major credit cards. Nearly any bank or financial institution can provide a customer with an application for one or another of the major credit cards. Additionally, the Internet has become a handy resource for those men and women interested in applying for and obtaining a major credit card.

Store-specific credit cards only can be applied for directly at the store or shop. Additionally, if the store has an Internet presence -- and many major stores and even smaller shops do so in this day and age -- applications for store-specific credit cards can be made online.

Annual Fee and Related Charges

Many major credit cards do charge an annual fee. Some major credit cards charge an additional or supplemental membership depending on where the card was obtained.

Store-specific credit cards normally are free of annual fees and similar charges to their customers. However, store-specific credit cards carry with them notably higher rates of interest than can be found with major credit card accounts.

Common Clauses and Provisions

In the United Kingdom, and in most European Union countries, there are clauses and provisions that must be included in each and every monthly credit card billing statement -- both from major credit card companies and on store credit card accounts as well. These clauses and provisions are:

A detailed listing of all credit card transactions
A detailed listing of the amount owed from the previous month plus the extra amount or interest to be paid on that amount owed
The total amount owed for the current month
The minimum amount that must be paid during the month. In the United Kingdom, this amount is about 3% of the balance or £5 whichever is greater.
An estimate of the interest payable if you do not pay your account in full.
The date by which the account must be paid if interest charges are to be avoided
A detailed listing of the monthly interest rate for purchases, the APR (annual percentage rate) and the interest rate if you have used your card for cash
Conclusion

In the final analysis, one should only have as much credit as is absolutely necessary. Generally, it is not a wise decision to rake in a bunch of different credit cards. Rather, the best policy usually is to maintain one or two major credit cards. Also consider that store cards generally do not offer the same benefits as credit cards such as balance transfers, although it is common to get brand exclusive reward schemes with store cards. Finally, one must be cautious about obtaining store-specific credit cards due to the higher rates of interest that come with these accounts.

Neil Brown is a freelance writer with regular contributions to Search4 Credit Cards and Choose A Credit Card.

Article Source: http://EzineArticles.com/

http://www.selectcreditfast.com/resource/9325550/credit-cards-or-store-cards---which-is-better.html

Types of Credit Cards

2007-11-15T00:08:00.000-08:00

There are a whole variety of different types of credit cards available which can make choosing the right one a very confusing experience. In order to help you decide, listed below is a useful breakdown of the various types of credit cards available.

Standard Credit Cards

Standard credit cards work as you might expect - with the cardholder using the card in order to pay for goods and services up to their agreed credit limit. Repayments are made once every month which must at least cover the agreed minimum repayment. These repayments will cover not only the capital borrowed but also the interest and extraneous charges payable upon the amount borrowed, usually referred to as annual percentage rate. Standard credit cards should not be confused with debit cards where transactions are charged directly to your current account.

Charge Cards

Charge cards work in the same way as normal credit cards with one difference, the balance of the charge card must be paid off in full every month. Charge cards are most regularly issued to either businesses or to consumers who may have had a bad credit history in the past. If you have a poor credit history then a charge card might be offered to you because the full monthly repayments would preclude spiralling debt. Charge cards are also popular with the wealthy consumer as this sort of card can offer credit practically without boundaries. It should be noted that if the cardholder does not pay off their balance once a month as required then they could incur very hefty fines.

Platinum and Gold Credit Cards

Platinum and Gold credit cards are only available to applicants who earn a certain level of annual income and, accordingly, offer a number of benefits to the cardholder which will vary from provider to provider. Higher credit limits are usually associated with these types of credit card. If you fall into a higher income bracket and have a good credit history then you will be able to benefit from the advantages that such a credit card offers.

Store Card

A variation on the credit card, a store card will allow the cardholder to make purchases with a particular retailer on a credit account. The cardholder can then effectively buy products without paying for them until a later date, when it is most convenient for them. You will often be offered discounts on the goods that you buy with a store credit card but it should be noted that the interest charged on such cards are usually extremely high. This is an area that you must be sure to look into with prudence if you are considering obtaining; you might find that the disadvantages outweigh the advantages.

Reward Credit Cards

Reward credit cards, or loyalty cards, operate in a similar way to charity cards except that the main recipient of any benefits is the credit cardholder. Incentives may include cash bonuses, points, discounts and Air Miles. With this type of credit card it is important that you think logically about the rewards being offered, and work out exactly how much you will need to spend on your credit card in order to reap the benefits.

Charity Credit Cards

Charity credit cards offer all the usual benefits of a regular credit card but also donates a particular percentage of what you spend to the charity to which it is affiliated. These charity donations are made at no extra cost to the cardholder and the card allows consumers to help a good cause simply by spending money in the way they always would. You can obtain credit cards for a whole range of diverse charities as well as organisations such as football clubs or universities.

You may freely reprint this article provided the author's biography remains intact:

About The Author

John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the http://www.directonlineloans.co.uk website.

Article Source: http://EzineArticles.com/

10 Ways To Boost Your Credit Score

2007-11-15T00:07:00.000-08:00

1. Deleting Errors in 48 Hours

This is the absolute fastest way to correct errors on your credit report and raise your credit score. However, it can only be done through a mortgage company or a bank. If you apply for a home loan and find errors on your credit report, request the loan officer to conduct a Rapid Rescore. But don't mistake it for the credit clinic tactic of multiple dispute letters.

The Rapid Rescore strategy requires proper paperwork. You need proof that the item is incorrect. It must come from the creditor directly. For example, a letter stating the account is not your account, a letter stating the account was paid satisfactorily, a release of lien, a satisfaction of judgment, a bankruptcy discharge, a letter for deletion of collection account or any relevant evidence.

This is the same documentation a bank or mortgage company would require for the credit accounts anyways. The difference is, now you can improve your credit score and receive a lower interest rate. The results are not guaranteed and will run you about $50 per account.

2. Deleting Negative Credit

This is the infamous area where you've heard of all the scams. Credit repair clinics charge "an arm and a leg" and promise a clean credit report. Sometimes even a new credit profile! People spending hundreds, or even thousands, of dollars for something they can do themselves.

Removing errors is simple. Deleting negative credit that is accurate requires advanced methods. But that is not the scope of this report. So I'll focus on the deleting the negative errors.

Credit report errors easily disappear by using a simple dispute letter. If you have the paperwork proving the error as mentioned above in Rapid Rescore, send copies of that along with the dispute letter. This will make the credit bureau's job easier and you will get faster results.

If you don't have the documentation to prove the error(s), send the dispute letter anyway. According to federal law, the credit bureau's have a "reasonable time" to validate your claim. They will contact the creditor for verification of your dispute. Then the account will be reported accurately - or deleted. It has been generally accepted the "reasonable time" to complete this task is 30 days.

If you're not the do-it-yourself kind of person. Or don't have the time. You could hire someone who is very economical.

3. PiggyBack Someone's Credit

This is a fast and great little credit score booster. But it requires a very trusting relationship. Simply put, someone else adds you to their credit account. For example, when applying for a credit card, you may have seen the section to add a card holder. If your trusting person adds you, their payment history is now reported on your credit report too. If they have perfect credit, now you have a perfect account.

To make this more effective, use an aged account. Imagine if your trusted person has a 10 year old credit card account with a perfect payment history and a balance of only 50% of the credit limit. Wouldn't you love to have this on your credit report? The easy part is your trusted person just calls the credit card company and requests a form to add a cardholder. Once completed and activated, their entire account history and future is now firmly planted on your account. Imagine if you secured 3-5 of these accounts - especially installment accounts. Your credit score could sky-rocket!

The challenging part? Finding the trusted person. Since you already have a low credit score and bad credit, how eager will someone be to make you a cardholder? Even your parents don't want you to damage their credit. But, no one says you need to possess the card! In other words, your trusted person could add you as a card holder and never give you the card or PIN or any information. Since the bills and all account information is still mailed to the trusted person's address, you won't know anything about the account. This scenario could land you many trusted persons. And you still benefit with a higher credit score.

4. Playing Round Robin

This strategy is one of the oldest credit building techniques around. It used to be accomplished with secured savings accounts. But now, it's much easier with secured credit cards. In fact, I've used this method myself.

Here's how it works: Take ,000 (or what you can afford) and get a secured credit card. Once received, get a cash advance of 70% of your credit limit. Get a second secured credit card. Once received, get a cash advance of 70% of your credit limit. Get a third secured credit card. Once received, get a cash advance of 70% of your credit limit.

Open a new checking account with the final cash advance. Use this account only for making payments on your three new credit cards. If you make your payments on time every month, your credit score will increase because you now have three new perfect payment credit cards. (Initially, your credit score might drop a few points due to the rapid, multiple accounts being opened. However, be patient because within 4 months of no new accounts or any delinquencies of any account, you will see your credit score increase. Mine increased 60 points in 60 days!!)

5. Pay on Time

This one is quite obvious. But after 12.5 years in the mortgage business, I discovered it still needs repeating. Your creditors were gracious enough to loan you money. Now pay your damn bills! If you don't, your credit score decreases. EVEN IF ONLY 30 DAYS LATE!

That's right folks. For some reason people think, "I'm only a few weeks late. What's the big deal?" Well, for the loan company, if you pay late but consistent, they make a lot more money with late fees and more interest (if a simple interest loan). For you, your credit score is damaged. If you think long-term and credit score, I'm certain you would not have a cavalier attitude.

6. Pay Down Debts

This seems like an obvious method, doesn't it? But it is not as transparent as you might think. Remember, we're playing with high-level statistics and probabilities which evaluates and forecasts trends in your behavior. Here's what you do...

Never pay off your revolving debt in it's entirety! Isn't that a surprise? Think about it. Your credit score is a reflection of your ability to manage your credit. Paying off your debt is not managing your debt. If you have a zero balance, how can you manage it? You don't. It no longer exists. And you cannot manage what does not exist, right? Therefore, in terms of credit score, you have demonstrated your ability to swiftly pay off accounts to avoid managing them. Thus, slightly decreasing your credit score.

One exception, of course, is if you're over extended to begin with. Pay off what's necessary to make your credit profile look great. Then manage the remaining credit.

7. Don't Close Accounts

Even if you pay off revolving debts, do not close the account. The longer an account is open with no negative reports, the better it reflects in your overall credit score. This is due to the weighted-average in the credit score formula. Many credit experts suggest a balance of 30% of your credit limit. That's ideal. But you can go as high as 70% and still maintain a healthy credit score.

8. No New Credit

You must be vigilant in your credit behavior if you want the best credit score. Therefore, do not get any new credit unless it is absolutely necessary. Each time you apply for credit, an inquiry is added to your report. This usually drops your credit score slightly. When you have fresh credit, there is no track record how you will manage (or pay) this account. Therefore, it's a higher risk which results in a minor drop in your credit score. Remember, your credit score is about risk assessment.

Here's what you do: obtain credit for your housing, transportation, college or continued education and 3-5 credit cards. That's really all you need for personal credit. If you want more credit, request a credit limit increase on your current cards rather than apply for new ones.

9. Maintain A Mix of Credit Types

If you show you can handle different types of credit at the same time, you are rewarded with a great credit score. In other words, get installment loans like vehicle, personal loan or mortgage. Get revolving credit like credit cards: Visa, Mastercard, Sears, Sunoco Gas, Costco. By mixing it up, you demonstrate you can manage your credit because you will have short term and long term credit with a fixed payment. As well as a "variable" monthly payment on your credit cards.

Keep these accounts open with a balance of 70% or less and paid on time and you will witness your credit score climb to great heights.

10. Don't File Bankruptcy or Foreclosure

Here's the most obvious advice: Don't file for bankruptcy or foreclosure. These stay on your credit report for 10 years and always decrease your credit score. The older the bankruptcy or foreclosure account becomes, coupled with re-built credit history, the less of an impact they play on your credit score.

Contrary to popular beliefs, you can legally delete a bankruptcy and foreclosure. It's not easy. But it's possible. See the advanced methods for that solution.

To quickly rebuild your credit history after a bankruptcy or foreclosure, use the Round Robin strategy above and get secured credit cards. Now you can even get a car loan or mortgage right after bankruptcy.

© 2004 David Czach.

-------- Editor's Note ----------

Dave Czach has 12 years experience in the mortgage business and a Bachelor's Degree in Real Estate. He can be reached at http://myLoanHero.com/go.cgi/daveczach.

This article may be reprinted without compensation provided there are no changes whatsoever to the article, the copyright notice and the complete Editor's Note. Any reprinting or duplication without these conditions is copyright infringement.

-------- Editor's Note ----------

-------- Editor's Note ----------

Dave Czach has 12 years experience in the mortgage business and a Bachelor's Degree in Real Estate. He can be reached at http://myLoanHero.com/go.cgi/daveczach.

Article Source: http://EzineArticles.com/

http://www.selectcreditfast.com/resource/9325550/10-ways-to-boost-your-credit-score2.html

Student Credit Cards 101

2007-11-15T00:05:00.000-08:00

If you’re a college student, you probably already have a credit card. If not, you may have plans to get one or more soon. So why should you read on?

Because financial debt is one of the main reasons that many students end up dropping out of college.

Because your college years can be some of your most memorable—and some of your most costly. They don’t, however, have to be the beginning of an adult life strapped with debt.

Although you may still feel in limbo between your teen years and adulthood, it’s time to take charge of your finances and manage them as an adult. The sooner you do, the sooner you’ll be able to start saving and spending your own money.

For those new to credit cards and for others who know all about credit, let’s go back to the basics.

Why do credit card companies court college students?

It’s obvious by the friendly representatives who offer a free t-shirt or CD just for signing up in the student center. Or the applications slipped into bookstore bags. Or mail boxes crowded with card offers. Credit card companies want college students to carry their card.

Did you ever stop to wonder why? One reason is loyalty—once a person has a card in their wallet, they are likely to keep that particular card and its upgrades for years to come. Another reason: college students are good customers.

While this may seem ironic considering that most college students are without a steady source of income, Robert Manning, Ph.D., Professor in the College of Business at Rochester Institute of Technology and author of Credit Card Nation, says this is one example of how the credit card industry has changed radically in the past decade or so. “Previously, conservative rules deemed a good customer as one that paid their bills on time,” he says. “Now, a good customer is one that can’t repay their debt.”

“Credit is no longer an earned privilege,” continues Dr. Manning. “It’s now considered a social entitlement, and the screening criteria (for card applicants) is weak.”

Banks make money by charging annual fees, late payment penalties and interest fees on unpaid credit card balances. Therefore, card holders with revolving debt (those who do not pay their balances in full each month) are desirable. NellieMae.org illustrates this point beautifully through an example of a student with a credit card balance of $7,000 at an interest rate of 18.9%. If this student faithfully makes the minimum monthly payment of 3% or $25 – whichever is higher, and does not charge anything else to the account, it will take more than 16 years and $7,173 in interest fees to repay the bill!

Additionally, Manning notes the banking industry has learned that college students will draw upon various sources of income to pay their debt—including student loans, money from part-time jobs, and as a last resort, many will ask a family member to supply the funds to get them out of debt.

How to make credit work for you, not against you

According to Nellie Mae, 81% of college freshman have at least one credit card. And for good reason. Credit cards enable online purchases—from text books to concert tickets, make it possible to rent a car, and help with medical emergencies or vehicle breakdowns. Used wisely, credit cards can be helpful throughout college, and can assist you in the development of financial management skills.

As soon as you get your first credit card or loan, you have entered the world of credit reports and scores. A credit report is compiled by credit bureaus and contains information about your identity and credit relationships, among other things. Credit scoring is a system that lenders use to help determine your ‘credit worthiness.’ Credit scores are based upon your bill-paying history, the number and type of accounts you have, late payments, collection actions, outstanding debt and the age of your accounts.

It’s vital to know that your credit score affects your ability to get loans, car loans, and home mortgages. Future jobs and insurance premiums can also be influenced by your credit score. By paying your bills in full or in a timely manner, a credit card will help you establish a good credit score. Late payment or no payment will help you earn a poor credit score. For more information on credit reports and scores and how they affect you, check out CardRatings.com.

Developing a new view about credit

Mary Ann Campbell, CFP, founder of MoneyMagic.com and a money educator, cites unrealistic expectations as a major reason for high student debt.

Campbell, who teaches personal finance courses, says “Many students’ expectations of their earning potential after college far exceeds what their actual income will be.” She notes that some students use their credit cards with abandon during college, planning to pay off their debt when they land that great job after college. Indeed, some students forget that in order to get to the top of the career ladder, there are a few rungs, i.e., less paying jobs, they have to climb first. And the expense of starting a new job and life on your own can just add to existing debt.

Manning’s website, CreditCardNation.com, contains a great resource for students seeking a more realistic view of the first few years after college. Using the ‘Budget Estimator,’ a module designed by Manning, students can identify an average yearly or monthly starting salary for jobs in their particular major. The program automatically figures in estimates for taxes and social security payments. Students can then plug in expenses for housing, car payments, utilities, food, insurance, telephone and internet bills, clothing, credit card bills, student loan payments, and entertainment, etc. The module lets you know when you have spent more money than you make, and allows you to adjust payments as necessary until you get the hang of how your money is best distributed.

Students that seem to have the most credit woes? Those who believe their standard of living during and after college should not vary from when they lived at home on their parents’ income. Cable television, cell phones with cameras, and new cars become ‘necessities’ instead of nice extras.

Advice to grow on

When it comes to credit cards, students have great advice for other students. Heather, a college junior from Arkansas, recommends getting one card with a low limit. “This limits the amount of credit you have access to and therefore removes the temptation to spend more than you have or more than you can pay off immediately,” she says.

Another student recommends selectivity. “Don’t sign up for a card that charges an annual fee to use it, and read the terms of the card before applying. You wouldn’t believe how many people don’t know what an APR rate is.” For more information on finding the best rated cards, check out CardRatings.com. You can read reviews of cards from other students and get the lowdown on perks of various credit cards.

Campbell has three recommendations for students: The first is open communication. Campbell says students who are educated about financial matters seem to have a better overall attitude regarding credit cards. Students should find a trusted source to talk openly with about money issues. Second, students should switch from spending behaviors (such as shopping) to activities that help you achieve the same feeling of gratification or reward, such as intramurals, exercise or campus organizations.

Last, but certainly not least, enroll in a personal finance course as soon as your schedule allows. Says Campbell, “If it’s not required coursework, take it as an elective. You will learn a set of life skills that will not only help you right now, but also after college and for the rest of your life.”

About The Author

Rebecca Lindsey is a Senior Staff Writer for http://www.CardRatings.com. She began writing articles about consumer credit issues for http://www.CardRatings.com in September 2000.

Article Source: http://EzineArticles.com/

Credit Card Comparison Guide

2007-11-15T00:03:00.000-08:00

Shopping around for a credit card can save you money on interest and fees. You’ll want to find one with features that match your needs. This information can help you

Understand the features of credit cards
Compare credit card features and costs
Know your rights when using your credit card
File a complaint if you have a problem with your credit card

How will you use your card?

The first step in choosing a credit card is thinking about how you will use it.

If you expect to always pay your monthly bill in full--and other features such as frequent flyer miles don’t interest you--your best choice may be a card that has no annual fee and offers a longer grace period.
If you sometimes carry over a balance from month to month, you may be more interested in a card that carries a lower interest rate (stated as an annual percentage rate, or APR).
If you expect to use your card to get cash advances, you’ll want to look for a card that carries a lower APR and lower fees on cash advances. Some cards charge a higher APR for cash advances than for purchases.

What’s the APR?

The annual percentage rate--APR--is the way of stating the interest rate you will pay if you carry over a balance, take out a cash advance, or transfer a balance from another card. The APR states the interest rate as a yearly rate.

How long is the Grace Period?

The grace period is the number of days you have to pay your bill in full without triggering a finance charge. For example, the credit card company may say that you have “25 days from the statement date, provided you paid your previous balance in full by the due date.” The statement date is given on the bill. The grace period usually applies only to new purchases. Most credit cards do not give a grace period for cash advances and balance transfers. Instead, interest charges start right away.

If you carried over any part of your balance from the preceding month, you may not have a grace period for new purchases. Instead, you may be charged interest as soon as you make a purchase (in addition to being charged interest on the earlier balance you have not paid off). Look on the credit card application for information about the “method of computing the balance for purchases” to see if new purchases are included or excluded. Information on methods of computing the balance is in the section “How is the finance charge calculated?”

These are just some of the considerations you will have to be aware of when choosing a credit card. The bottom line is that you should always read the small print and think about what it is you are agreeing to and whether or not this is what you need.

Joseph Kenny is the webmaster of the credit card comparison sites http://www.credit-cards-info.com/ and also http://www.creditcards121.com/

Article Source: http://EzineArticles.com/

http://www.selectcreditfast.com/resource/9325550/credit-card-comparison-guide.html

Credit Card FAQs

2007-11-15T00:02:00.000-08:00

What are credit cards?

Credit cards let you pay later for any purchase you make. In case of any sort of emergency or urgent situation, when you may not have cash to make payments, credit cards can be helpful. Credit cards are commonly used to get fuel for cars or buying products in a grocery store. You receive a statement at the end of each month. The statement tells you of the expenditures you have done using your credit card. It also mentions minimum balance, due date, fees, etc.

What is an additional cardholder?

An additional cardholder may be anyone from your family, aged above 18. He will also be issued a credit card. You can contact your credit card company if you wish to have an additional cardholder.

What is a balance transfer?

Balance transfer means the transferring of outstanding balances of credit cards from your current credit card company to another.

What should be done on losing a credit card?

If you happen to lose your credit card, you should inform the your bank as soon as possible, as there can be chances that some one may use your credit card and you end up paying for that too. Once you notify the bank, they at once cancel your credit card and issue you another credit card.

What is an APR?

APR, or Annual Percentage Rate, is just a way of calculating cost of credit, measured as a yearly rate. You must know the APR that would be levied on your credit card before you decide to have one. All credit card companies have varying APRs. You have to see the one that suits you the best.

What is the way to choose a credit card?

This purely depends on your needs and situation. If you would be paying full bills then you need to take a credit card with a low annual fee and other charges. On the other hand, if you want to have a cash advance feature, you need to choose a credit card company with low APR. If you have any doubts and questions, always feel free to call up the credit card company.

What is the credit card grace period?

Credit card grace period is the period in which you can pay your credit card bills before the due date and avoid finance charges. You should be aware of the grace period in order to avoid any sort of finance charges.

Joseph Kenny is the webmaster of the credit card comparison sites http://www.credit-cards-info.com/ and also http://www.creditcards121.com/

Article Source: http://EzineArticles.com/

http://www.selectcreditfast.com/resource/9325550/credit-card-faqs.html

Simplifying Your Search For a New Credit Card

2007-11-15T00:00:00.000-08:00

Today, selecting the proper credit card can be a bit confusing to say the least. There are literally hundreds of offers from the major institutions eagerly competing for your business. The easiest way to shop for a credit card is to break them down into categories. There are seven major categories that all credit cards fall into. Each category is listed and explained below. Once you identify the proper category, simply narrow down the offers to the ones that best suite your particular needs and lifestyle.

General Purpose/Low Interest Credit Cards:

These cards are great general purpose credit cards for those not interested in all the special features and costs associated with CashBack or Rewards cards. They feature either a low introductory interest rate, and/or a low fixed rate.

General purpose credit cards are usually favored by those who tend to carry a monthly balance on their cards. A lower interest rate can add up to substantial savings on finance charges, and be of more value than cards offering high rewards, or cash back. If you are planning a large purchase, a low introductory APR may be just what you need. You can stretch out your payments over the length of the introductory period, and save a bundle on finance charges.

Cash Back/Rebate Credit Cards:

Cash Back credit cards give you cash or rebate incentives every time you use the card. The amount given is usually a percentage of your total purchases excluding interest and finance charges. Cash back credit cards should be considered by those who tend to pay off their entire balance every month, and therefore would not realize the benefits offered by low interest rate cards. Cash back cards are always hard to beat, but others may favor a rewards program offering goods and services in place of cash. The card you choose will depend upon your particular needs and lifestyle.

Reward Credit Cards:

Reward credit cards give you points every time they are used to make purchases. The points that you accumulate can later be redeemed for goods and services. Cards offering reward points are most attractive to those who tend not to carry a monthly balance. If you pay off all or most of your balance each month, a low interest rate will be of little consequence, making reward cards the perfect solution for reaping some extra benefits out of your spending dollars. There are many cards in this category that give special rewards as incentives to shop at specific retailers. Check the terms of each card to find the one that will best suit your needs.

Airline Miles/Travel Credit Cards:

If you're an airline traveler, you should look into credit cards that offer Frequent Flier miles. You earn Mileage points as you spend on your credit card. You also earn mileage points for the miles you fly. If you took a round trip to Orlando from Washington DC you would earn 1516 mile points. If you bought the ticket on your card you would earn even more! Most Frequent Flier credit cards will give you 5,000-10,000 free miles as a sign-up bonus, as well as discounts on car rentals, free hotel upgrades, and many other perks. Be aware that there may be caps on the amount of miles you can earn in a year, as well as expiration dates for unused miles.

Business Credit Cards:

If you own a small business then you should consider a business credit card. With a business credit card, you can make purchases under your business name, allowing you to separate your business and personal expenses. Business cards can in some cases carry a higher limit than a personal card, and additional cards may be issued to executives, or employees. Most institutions offer business cardholders a special categorized statement that makes it easier to manage your company's finances and spending habits.

Student Credit Cards:

Student credit cards are available to actively enrolled College students. They are ideal for building a credit history, and teaching the principles of financial management. After graduation, the credit history established with a student credit card can be a great help when buying that first new car, or even applying for a mortgage. It pays to start early and establish yourself as a responsible person by paying your bills on time. A student credit card usually carries some restrictions not found on ordinary credit cards. A co-signer is sometimes required on the account, and in such cases, permission from the co-signer must be obtained before the credit line can be increased.

Bad/No Credit Credit Cards:

If you have bad credit, or simply no credit history at all, there are alternatives to help you build/rebuild your credit. Many institutions offer secured, or pre-paid credit cards to individuals seeking to build or rebuild their credit. A secured credit card requires that you supply the institution with some type of collateral such as a car, home, boat, or cash. They will issue you a credit card secured by the value of this collateral. It functions just like a regular credit card, except that if you default the bank can seize the collateral.

Another solution is a Pre-Paid credit card or "Debit" card. Pre-Paid cards require that you deposit funds into the card's account in advance of making any purchases. When a purchase is made, the funds are deducted from the account balance. This is not really considered a credit card since no credit is actually being granted by the institution. Debit cards are a great alternative to carrying cash, and are hence much safer.

© Written By: Michael Casamento

Michael Casamento is the founder of the Credit Card Safari web site, offering quick and easy comparisons of the latest credit card offers from top financial institutions.

For more information visit:http://www.creditcardsafari.com

This article may be freely reproduced so long as the above resource box is included in its entirety.

Article Source: http://EzineArticles.com/

http://www.selectcreditfast.com/resource/9325550/simplifying-your-search-for-a-new-credit-card.html

Common Drawbacks of Using a Credit Card

2007-11-14T23:55:00.000-08:00

successful items in the financial industry is the credit card. In the past few decades, they have grown from one general purpose card invented in the late 1950s to a huge array of cards available. It is true that few adults live without at least one credit card and some people have several of them. These plastic cards can be very convenient for people who want to shop online or by telephone or mail order. They are also great for shopping offline as there is no need to carry cash. There have been some security scares with credit cards but, in many ways, they are more secure than cash. Unfortunately, there is a downside to the credit card despite what the glossy advertisements may say. They make it very easy to accrue large debts and often, it is difficult to see much for the money spent. The interest rates are amongst the highest in the credit finance industry so the debt just keeps on building up unless you use the card responsibly. Irresponsible use may lead to huge problems including bankruptcy. Having said that, there are some ways that you can use a credit card without inviting trouble. Beware the impulse spending. It’s easy to get carried away with spending when you’re not handing over that hard earned cash. However, when your statement arrives, you may find you spent more than you really should have. Try to resist the temptation to put things on your card because you may regret the decision when it comes time to pay. Don’t use your credit card for everyday costs or to pay your bills. This is a quick way to run up your credit card debt and is merely a Band-Aid solution to a poorly developed budget. There are other ways to borrow and many have cheaper interest rates. You can even withdraw cash on your credit card these days but be very careful. The interest rates are usually even higher than on purchases so it can add up very quickly. Also, there is no interest free period on cash withdrawals so it is still going to cost you a lot more. One of the most important steps you can take to minimize your debt is to pay more than the minimum each month. If you don’t, you will continually be paying mostly interest charges and so forth and never making much of a dent in the actual debt. By paying only the minimum, it may take years to pay off the debt not to mention that you will have paid a huge sum of interest. Try to pay as much as possible each month to reduce your debt. Finally, it is wise to organise an automatic payment from your bank to repay your credit card so that you don’t overlook any payments. Credit card issuers will happily accept more of your money by hitting you with expensive late payment fees. Don’t give them the pleasure. Keep your money and use your credit card wisely. This way, you should be able to stay out of trouble. Anne is the owner of two websites http://www.ebooksbargains.com which has a huge range of books on a variety of subjects and http://www.therepairables.com that is a site which can help you in times of financial problems.

About the Author

Anne is the owner of two websites http://www.ebooksbargains.com which has a huge range of books on a variety of subjects and http://www.therepairables.com that is a site which can help you in times of financial problems.

Identity Theft - What You Can Do To Prevent It!

2007-11-14T23:45:00.000-08:00

Identity theft is the new world of organized crime. The best way to protect yourself from this crime is to prevent identity theft from happening to you. This starts with finding out what identity theft is, and where and when it could happen to you!

Defining Identity Theft

What is identity theft? Identity theft is any time someone without your knowledge or consent, uses your personal or financial information. This can range from steeling your passport to travel illegally, to gaining financial information to make fraudulent purchases. But the majority of identity theft cases involved identity theft of credit card information.

How It Works

Identity theft with your credit card information occurs any time someone gets a hold of your credit card number. This often happens online. You might receive an e-mail warning you that something is wrong with your credit card, and you click on a link and are directed to a place where you are required to put in your credit card information to "fix" the problem. This is a scam known as phishing, where the criminal is looking to gain those numbers for their own use. And just because you are not online, doesn't mean your information is not! If you register your car or pay a speeding ticket, important parts of your identity, often including credit card numbers, are automatically put online!

Your Identity is Stolen - Now What?

Once the criminal gets a hold of your information, they will probably make purchases using your credit card number. It does not matter that they do not have the physical card in their hands, since the world of online shopping does not require seeing the card, just entering the numbers. When you notice fraudulent charges on your credit card statement, it is time to take action.

Start by contacting your bank. Often your bank will be willing to put a freeze on your account. Also, most credit cards have policies that do not hold you liable for purchases made by an identity thief, but you have to catch them! The card will be frozen, and you will be given a new card.

http://www.adviceoncreditcards.com/creditcards-articles/prevent-identity-theft.htm