About Your Credit Card

2007-05-10T05:40:00.000-07:00

►▬ What i should know about credit card costs
►▬ Tips for improving your credit score
►▬ Spending on credit cards
►▬ Common sense advice for credit card use
►▬ Deciding when teen should get a credit card
►▬ Pay cash or use a credit card
►▬ The truth about low-interest credit cards
►▬ Safety: why you should sign your credit card
►▬ If my bank calls, can I give the card number
►▬ How does a credit card work
►▬ Advice on credit card balance transfer
►▬ The truth about reward credit cards
►▬ The truth about no-fee credit cards
►▬ What you need to know to apply credit card
►▬ Credit card safety: How to check statements
►▬ What to do if your credit card is stolen
►▬ Credit card applications for beginners
►▬ Maximize the potentials of a low APR credit
►▬ What to do if your number has been stolen
►▬ How can you tell if a shopping site is secure
►▬ What is a virtual credit card number
►▬ Know which card you should pay off first
►▬ Fees charged when you use credit cards
►▬ What if your favorite store has credit breach
►▬ How does a debit card work
►▬ How does an affinity card work
►▬ Explaining the Card Security Code (CSC)
►▬ What is the Payment Card Industry (PCI)
►▬ Debit vs. credit cards: what's better
►▬ Can identity theft affect your credit score

Can identity theft affect your credit score

2007-05-10T04:18:00.000-07:00

One of the chief reasons an identity thieves can be so detrimental to a person's life is due to the fact that it does affect their credit score. Identity thieves steal individuals identities for one main reason, and that reason is money. Sure there are identity thieves who have various other reasons for doing it, money is the most common reason an individual becomes an identity thief.

What happens is, an identity thief gathers information about your life, and either uses your information to obtain new credit cards and or they actually use the credit card numbers that you already have. Either way, these identity thieves then spend as much money as they can until you figure out what they are doing, and cancel the credit cards. Identity thieves can rack up thousands upon thousands of dollars in debt, in your name, making you the responsible party.

Though you can dispute debts that are not yours, many times the credit cards companies and law enforcement have to investigate the situation, which can take years to resolve. In the meantime, the credit card companies are charging you interest and asking that you continue to pay these debts that you did not acquire. Many times an individual has no clue that they have been a victim of identity theft until they view their credit report, which in some cases could be years.

Credit reporting agencies are not going to take your word for it that the debts are not yours, they are going to do their own investigation, which again takes time. Individuals should check their credit reports at least once a year, and they can do this for free, at AnnualCreditReport.com. Do not be afraid to report inaccuracies on your credit reports, because it is your credit, and you should protect it as best you can.

Debit vs. credit cards: what's better

2007-05-10T04:16:00.000-07:00

Debit and credit cards both have one common factor. They can be used to pay for goods and services. Some banks allow a debit card to be used as either.

Debit cards usually require a four digit pin number. Credit requires a signature, so for most people credit is simply more convienient.

Another important thing to remember is fees, some stores and ATM's charge for use. No matter what, someone is footing the cost. At some stores, the store owner may even have to pay a fee for running your card so that you do not have to.

Most banks even have account protection on debit and or credit cards, in case a person needs overdraft protection. When it comes down to it, both are actually very similar afterall.

What is the Payment Card Industry (PCI)

2007-05-10T04:13:00.000-07:00

Financial jargon can often be overwhelming for some individuals. Contractual agreements, numbers, percentages, and legal terminology can confuse just about anyone. In the massive amounts of paperwork distributed by financial services providers to potential clients, you may have come across the phrases "Payment Card Industry" or "Data Security Standard." So, what exactly do these things mean?

Well, the Payment Card Industry can be defined as any credit or debit card that uses electronic coding to link your card to a monetary account. As technology advances and criminals begin to find new methods of theft and fraud, financial institutions are taking extra measures to ensure that the highly sensitive personal or confidential data about an individual client is extremely protected. Therefore, the Data Security Standard was created.

The PCI Data Security Standard is intended to provide a secure network for all users. A firewall configuration is typically established and maintained to protect cardholder data. Financial institutions are required by law to maintain a policy which addresses information security procedures and protocol. Usually these policies will include risk management programs such as anti-virus software. These security systems and processes are also mandatory regulated and tested to assure quality.

Additionally, financial institutions in compliance with the Data Security Standard will also control accessibility to information by distinguishing differing levels of security access. As a general rule, institutions will control security by restricting physical access to cardholder data secured on a database with personal customer information, which is generally only supplied on a need-to-know basis.

Overall, Data Security Standards are set up to protect the customer. With a growing number of internet and technological incidents of fraud or identity theft, it is crucial that personal information remains confidential. Financial institutions, therefore, are responsible for using highly evolved authentication processes in order to ensure that cardholder data is protected.

Explaining the Card Security Code (CSC)

2007-05-10T04:11:00.000-07:00

If you look on the back of your credit card you'll see a small three, or four digit number. This is the Card Security Code (CSC).

It can also be called the Card Verification Value (CVV) or Card Verification Code (CVC). Sometimes you may see a website which asks for your CVW, which is another abbreviation for Card Verification Code. These all mean the same thing.

If you're trying to order something online, and it asks for any one of these, you're being asked for the little number on the back of your card.

The Card Security Code is an authentication scheme the credit card companies came up with to protect themselves from fraud in online transactions. This involves requiring that the purchaser enter the CSC at the time of the purchase in order to verify that they have the actual physical card, and not merely the card number.

Pretty much all banks have added CSC numbers to their credit cards, and are using this system.

If your card doesn't have a CSC number you can still make online purchases. Just put 000 in where the CSC number is supposed to go. This won't work if your card is supposed to have a CSC number, but it will work if your card is not yet part of the CSC system.

It's a little trouble to use the CSC number when you make an online purchase, but it really has cut down on the fraudulent use of credit cards online, and it's worth going to a little trouble to stop thieves.

How does an affinity card work

2007-05-10T04:10:00.001-07:00

Affinity cards are credit cards, which can be of two types: reward or cause-related.

Reward credit cards earn you money or other benefits for using them, typically as a percentage of the amounts you purchase.

Cause-credit related cards donate a percentage of your purchase amounts to the cause associated with them.

I use a reward credit card to make all my gas and auto purchases. I get a percentage of my total purchases rebated in the form of AAA dollars. Plus I get a discount at certain gas stations. My AAA dollar rebates not only pay for my AAA membership, so I get emergency road service and other membership benefits free, but I also save money just for using my reward credit card, which happens to be a Master Card.

There are many different reward cards. My wife uses a reward Visa card which gives her 1% cash back on her purchases.

Causes-related credit cards give money to the cause associated with them. Organizations offer these to their members as a way for them to help the organization raise money. These cards usually depict the organization, and some of them can be pretty snazzy looking.

I use a Visa cause-related credit card to support my Alumni association, which gets a percentage of my total purchases. I use it for educational and other expenses which are tax deductible, which helps with my book-keeping, so both my Alumni organization, and me, benefit from the by use of the card, and of course I'm happy to support my Alumni organization.

Affinity cards are a great way to earn rewards, or help the causes you support. You're going to spend the money anyway so you might as well get some of it back, or sent to your favorite cause.

How does a debit card work

2007-05-10T04:05:00.000-07:00

A debit card is quite different from a credit card, but in some ways it works the same way.

The ways it is similar to a credit card are as follows: You can purchase and pay for items immediately with your debit card. If your debit card also has the visa logo on it you can purchase either credit or debit. If you purchase by debit you do not have to sign for it. If you purchase by credit you will have to sign for it.

The big catch is that with the debit card you must have your own money in the bank where you have the debit account.

The credit card is different. It is harder to be approved for a credit card. Your credit history will be checked before you can get a credit card. You do not have to have money in the account of the institution offering you the credit card. The credit card will be given to you based on your income and credit history. Your line of credit will also be based on your income and credit history. You can receive credit cards from banks or stores. Each will give you a line of credit.

There are also different types of credit cards. A secure credit card will ask you to deposit money in the account and you will only be able to purchase on this money. This is more like a debit card, but also less like a debit card. A debit card will be given to you usually when you open a new account at a bank. The secure type of credit card will ask you for a monthly fee or yearly fee, which you will not need to pay with a debit card. These types of credit cards are often issued to people who do not have good credit and would like to have a credit card. They can be misleading. People may think this is a real credit card, and it is but not in the truest sense, since with the true credit card you will not have to put money in the account. You may have to pay an activation fee, but you will be given a line of credit to use as you wish. The only thing you must do is pay a monthly payment on your credit card to pay for your purchases.

Some credit card offers that are misleading are advertised as a credit card and you pay your fee to open the account and it will only be usable at their mail-order store. You usually won't know this until you get the credit card. I think this may be a scam.

But some of the more popular stores such as Kmart, Wal-Mart, Sears, BonTon, Boscov's and the like issue true credit cards for use in their store. You will also be given a line of credit and will have to pay monthly on your account for your purchases.

When you purchase with a debit card, it is the same as having cash that you took out of the bank from your account. But it is better to carry a debit card than cash especially when traveling and your debit card can be used at any ATM across America for cash withdrawals.

So these are the differences between a credit and debit card. It is a good idea to have both.

What if your favorite store has credit breach

2007-05-10T04:03:00.000-07:00

Sometimes when a store that uses credit cards feel they have had a security breach, they contact banks and credit card companies which in turn will contact you. Some companies like to keep the breach a secret and tell no one. Fact of the matter is that you may not know this kind of information. But if you do get your hands on this type of information and you know what cards you use there, take matters into your own hands.

If you use a debit card, contact your bank and tell them the situation and that you feel uncomfortable keeping this card that has access to your account when the store's security has been breached. YOur bank will assign you another card to your account.

If you use a store credit card to the store, simply tell them the same thing. You want a new card to your account. They will understand!

Credit card companies may be a bit more difficult. They may not wish to go through the trouble for you. So, you can temporarily freeze your account if you don't use you card any where else. If your credit card company doesn't work with you, you may have to take matters into your own hands and go back to the store and talk to the head supervisor or manager. Request that they look at ALL credit cards and ID of users because your credit card company won't assign you a new card. Inform them of your business and your friends and family and that if they refuse to help you feel safe during their time of security breach you will take your business else where... which would be the next tip.

Fees charged when you use credit cards

2007-05-10T03:55:00.000-07:00

You apply for a merchant account to accept credit cards on your website or at your brick and mortar store. There are a number of fees that apply and they can be confusing. Here is a rundown.

To understand the process here are the players

The gateway processor is the company that provides you with the access to enter the credit card information. There are a vast number of them. Authorize Net is the largest and probably the most difficult account to qualify for. The gateway processor in turn sends the credit card information to the merchant processor for approval(Visa, MC, Amex, Discover) Visa and Mastercard are considered as one for this purpose. Merchant account approval and rates are set by the vendor. Here is a sample of service provider rates and what they mean. These are sample rates and will vary by vendor.

An annual fee which typically runs around $39.00 per year

A gateway fee of $10.00 per month

A processor fee of $15.00 per month

At the end of the day you will send your transactions to be processed. This is called a batch and has a fee of 25

A 10 transaction fee for each charge that you process.

In addition to the above fees a percent of each transaction is charged
MC/Visa/Debit Cards 2.27%
Amex 4.9%
Discover 2.22%
Corporate Business Card is the above percent plus an additional 1.25%

Address Verification: Usually optional. A function to verify the billing address on the credit card is 5 per transaction.

Equipment Purchase: Usually free, the vendor will give you the equipment. A computer internet connection is required for manually keyed transactions.

Know which card you should pay off first

2007-05-10T03:51:00.000-07:00

If you have at least several cards that you are struggling to pay off and really can't afford to pay more than the minimum due each month, then here's a simple jump-start plan that can help you pay off each card in rapid succession without loans.

Let's attack the card that is charging you the highest (APR) annual percentage rate first, by doing the following:

List all your credit cards and how much the minimum monthly payment is for each, then total all the minimum payments up to see how much per month you have been paying, and sadly, gave you very little results.

To pay that first card off, fight fire with fire, use this strategy: charge the same amount as the minimum due on each card. Don't exceed it by much, or the plan will not work. Buy groceries, gas, etc., and save the cash that you would have used, had I not suggested you charge it. Save the cash in an envelope. Don't charge things you don't need, it's important to do this with extreme discipline to get out of debt. For example, (Visa card 6789) requires a minimum payment of $67.00, so go out and charge $67.00 on that card and do the same thing will all your other cards.

At the end of the month, you will have an envelope filled with cash in the amount of all your combined minimum payments. Now take that chunk of cash and make a lump sum payment to the card we are attacking. Pay the minimum due to the rest of the cards, as you've done up to now; (from your pay) or source you've always used, not from the envelope. Don't worry, those other cards will all have balances close to what they were, they will be in virtual lockstep, until you slam them down the same way.

What you've done is to make a nice dent in that high interest card without taking on any loans. Each month, continue the process and pay down that card with a chunk until it is completely paid off. This will most likely happen within a six month period, on average. Now repeat the process, and every six months or so, you will be paying off another credit card.

The rationale is; pay off a card completely and use the minimum that you were used to paying on that card as a contribution to help pay the next and the next card off. For example, if your minimum payments added up to $500 per month, continue to have available the full $500 to use, don't water it down. It's true that as you pay a card down, the lender will ask for a lesser minimum payment. However, don't pay the lesser amount, continue to allocate the same higher minimum amount that you started with. This is part of the inherent strategy that allows you to pay off your debt without loans.

By using this sensible and independent strategy, you will become debt free and rewarded with higher credit scores and higher credit lines. This plan was developed as an aid to those who are ready to use charging as a vehicle to get out of debt, versus increasing debt. The author cautions the user not to use the accumulated cash for any other reason other than as payment to reduce the debt.

What is a virtual credit card number

2007-05-10T03:49:00.000-07:00

Answering the question of what is a virtual credit card can take us down a few avenues. That is because there is more than one type. What you choose depends on your needs and shopping habits.

The usual way to get one is to sign up for one with your credit card company. They will issue you a single use randomly generated card number. Along with this you also get CVV2 code, credit security code. These cards are a one time use card. The numbers are valid from a few weeks to a few months depending on the card company. After it is used once or time expires the card number is no good. Even though this number is attached to your credit card the threat of fraudulent use is lessened.

If the number is used again then tracking the false user is easier to track. It usually comes down to a compromised database or a corrupt vendor. Either way makes tracking down the offender easier.

Another type of virtual credit card is a secured card. You sign up at web site and deposit funds in a bank account or have all fees come directly from your checking account. If there is no bank account set up the company instructs you how to transfer funds. The company never actually issues a plastic card. Instead they send you an e-mail with all of your details. You are then able to use this "card" like any other card online. Some of the online companies like PayPal offer virtual credit cards as well. The account funds come from your PayPal account.

The advantage is that the card is not attached to your bank account. The amount of money that can be lost is only what you put on it. For constant use some of the fees for these virtual stored value cards can be expensive.

The good thing is that it is more difficult to use these cards fraudulently because less personal card information is used.

How can you tell if a shopping site is secure

2007-05-10T03:46:00.000-07:00

Fearing identity theft and fraud, many people worry about zipping their credit card numbers into the internet. Contrary to their suspicions, ordering online can be considerably safer than leaving paper receipts in restaurant check folders and retailers' cash registers. Cyber-shopping can certainly be more secure than telephone ordering, particularly employing cordless or cell phones.

How can you tell if an e-tailer is secure?

SHOP FIRST WITH COMPANIES YOU KNOW AND TRUST.

What's your favorite store at the mall? Chances are, your favorite brick-and-mortar store will have a click-and-order website as well. (For clothing purchases, this strategy works particularly well, as you may already know what sizes and brands suit you best!)

Major companies depend on their reputations for quality, service, and trustworthiness. Such organizations will likely employ security measures for their web-sites. You will want to be sure of this before you order from them.

WHAT IF YOU WANT TO BUY FROM A COMPANY YOU DO NOT RECOGNIZE?

Look for identifying information about the organization. Check the site map (often along the left-hand margin of the web page) for ABOUT US, WHO WE ARE, or a similar heading. Try to find a phone number, a street address, and other information.

Paste the company name into your web browser, and see what you can find out about them GOOGLE is one way to do this. You may find news items, product reviews, and other helpful information.

SPOT THE SECURITY STATUS

Before loading your credit card information into cyberspace, find out if the web-site you are accessing is secured. You may or may not receive pop-up windows indicating the security of the site. Do not be lured into a false sense of security by these.

Two basic indications are necessary:

1) The page address (in your web browser box) will begin with https:// instead of http://. The extra "S" stands for SECURE, and it is an essential ingredient. Do not order from sites that lack this.

2) Your browser box should also contain a tiny padlock symbol (in the locked position). An unlocked padlock is cause for concern, as it indicated an unsecured website.

If both of these indications are present, then the site clearly employs Secure Socket Layering (SSL) encryptions. Simply put, this means your private information is scrambled before it is sent through cyberspace. Once it has been transferred to the vendor, it is translated there, as your order is placed.

Enter personal information (name, address, phone, credit card numbers) ONLY after you have confirmed that a site is secured.

RELY ON CREDIT CARD PROTECTION

If you use your credit card online, your transactions are guarded by the Fair Credit Billing Act. Under this, if you report your credit card information as stolen, you will be responsible only for the first $50 of unauthorized charges. (Check with your bank or credit card provider to be sure.)

Debit cards may not carry this protection.

COMPARE PRIVACY AGREEMENTS.

Marketers often purchase customer information from online vendors. If you place an online order from one of these vendors, you may soon discover mass quantities of catalogs accumulating in your mailbox. You may begin receiving dozens of e-mails from unknown companies offering all sorts of products, from potency vitamins to get-rich-quick schemes. You may start receiving dinner-hour calls from telemarketers. You can prevent most of this by denying permission for online vendors to share your information. (If this option is not provided, you may wish to order elsewhere.)

Many reputable websites will carry an emblem endorsing their privacy policy. A common one is TRUSTe. Look for this as an assurance of privacy.

CHECK RETURN POLICIES.

Before placing an order, you will want to research a company's return policies. Under what conditions will they accept returned items? Who pays for shipping? Do they charge restocking fees? Can you return items to their stores instead of mailing them? Will they offer a full refund or a merchandise credit?

START WITH A SMALL ORDER.

Planning a major purchase? Try a test run. Instead of ordering that big-ticket item immediately, why not order a CD, a single book, or a few pairs of socks first? See how fast your order is delivered and evaluate quality and condition. Once you feel confident with the smaller transaction, you will be ready to consider the substantial one.

What to do if your number has been stolen

2007-05-10T03:40:00.000-07:00

Credit card theft is extremely prevalent and recently in the UK an extensive credit card cloning operation was uncovered. As a credit card holder you need to be vigilant. If your credit card is stolen, it is likely that you will notice quite quickly. If it is just your credit card details that are stolen to make cloned cards, it may that the credit card company notice a significant change in use of your card and notify you. It is important to check your statement for transactions that you have not made to try and identify if a copied card is being used fraudulently.

Once you have identified that you credit card details have been stolen, you should contact your credit card provider immediately and arrange to have the card cancelled. If you do this promptly, you are generally not held liable for the fraudulent transactions and these monies will be returned to you. The credit card provider may not be so generous if the fraud has been perpetrated over a long period of time, as you should have identified it within a reasonable period of time.

As well as notifying the credit card provider, you should notify the police providing them with details of the fraudulent activities. You should provide details of any suspicious incidents that you can remember when you used your card. One of the common places for these thefts to occur is in restaurants, and if paying by card in a restaurant, do not allow the card out of your sight. The transaction should take place in your presence. It is when cards are taken to a central point away from the customer to process payments that it is most vulnerable to be cloned.

Maximize the potentials of a low APR credit

2007-05-10T03:37:00.000-07:00

Wouldn't it be wonderful if all or at least most of your debt could be at a low or 0% interest rate? You might just be surprised to learn that this is possible.

First you need to be aware that only those with excellent credit will be eligible for 0%, and you might not know the rate you'll be charged when you first apply for the card. The rate will be determined by your personal credit rating.

Secondly, be very, very careful! Don't attempt this unless you understand all the trickery credit card companies use.

You've probably been barraged with offers of 0% credit cards in your postal mail, newspaper ads and e-mail. Many people have taken advantage of these offers at one time or another, often with great success. But many others have also been caught in up in the subtle enticements of the credit card companies. After all, they are in the business of making money. and they surely can't make much money at 0% interest (except on transfer fees). You need to ensure that you don't let your guard down and that you scrutinize every detail in the fine print of the contract, so that you don't let the wiles of the credit card companies slip inadvertently into and raise havoc with youf plan to utilize those low rates successfully.

To prevent this from happening, you must be diligent in following these guidelines:

1. Read the fine print, and then read it again. Dissect every term of the contract until you are sure of all potential costs involved.

2. Never transfer to a low interest card any more of an existing credit card balance than you know you can pay off on the new card before the special 0% rate expires. The rate on any balance that you can't pay off by that expiration date will automatically jump to a drastically higher interest rate without any advance notice to you, usually 18% and higher, depending on what the interest laws are in your state.

3. Always make your payment on time, and even earlier if you can, so you don't risk losing that low rate and paying a high late fee. Most credit card companies will charge a sizable late fee (usually $15 and up), and you will be required to pay that late fee if you are even a day late on your payment. the most important reason not to be late with your payment is so that your interest rate does not automatically balloon to the 18% or higher rate detailed in the fine print of your contract for the balance of your payments.

4. Do not use the low rate or 0% credit card for any additional purchases or transfers after the initial one until the first balance is paid off. You may be charged the higher regular interest rate of 18% or higher on any additional purchases or cash advances you add to the new card. Also, any payments you make from that point forward will be applied to the first balance only until that is paid off, before being applied to the amount with the high interest rate. The promotional 0% does not usually apply to any balances beyond the initial charge.

5. Most credit card companies charge a 3% service fee, or a maximum fee, depending on the amount, for balance transfers. Occasionally a balance transfer fee is not charged, but this is the exception on credit cards.

6. Mark your calendar with the expiration date of any promotional deals so that you don't run over the date into a high interest rate situation.

Be very careful or you could end up owing more debt than you started with. Also remember that you are liable for all terms of the contract whether you applied on line, over the telephone or through the U. S. Mail.

Only you know whether you can be disciplined enough to be successful at this plan. The best plan is to pay off your debts, stay debt free and leave your credit cards at home in a safe place for emergency use only.

Credit card applications for beginners

2007-05-10T03:36:00.001-07:00

First of all, congratulations on taking the first step to having a "credit history"!

It's important to get a credit card, even if you have no use for it. Having credit cards will build up your credit history which will help you down the road when you want to purchase your car, home or even rent an apartment. You're more likely to be approved for these major purchases if you have had some credit cards under your belt, especially if you paid on time. And that's the key, please keep that in mind while reading this article. I'm assuming that you'll be responsible with your credit cards.

Onto the cards..
1. Look for cards that have cash incentives. I've seen many credit card companies offering $100 for just using their card!

2. Look for 0% on purchases or balance transfers (usually for first 12 months). Even if it's your first card, you might still be able to take advantage of the balance transfers. Some companies will even send the "balance transfer" funds directly to your checking account. But becareful not to go overboard and max out your card. 12 months do go by pretty fast believe it or not.

2a. If you're doing a balance transfer, make sure that you look for the fees involved. Some may waive the BT fee while other have it at 3% with NO maximum limit on the fees.

3. Make sure there's no annual fee or any membership fee.

4. Look for those that offer cashback. This is a great incentive to not use cash on purchases. Some cards even give 5% cashback on specific purchases (at certain stores or at gas stations)

It's very possible to find a card that has all of the above features.

Now here are my personal tips on filling out the application:

1. If it asks for "total household income" do fill that out and include the income of every person in your household..the more income the better of course because they will give you a higher credit limit. (BUT NEVER max out your cards, try always to stay less than 30% of your credit limit.)

2. Where it says enter your mother's maiden name...you don't necessarily need to enter your mom's maiden name. You can but don't need to.
Why? Because every site I go to now, they're asking me for my mother's maiden name which makes me think that that info can be easily "stolen".
Once you have the card, your number one priority is to pay on time. This is very important if you want to keep your 0% on purchases or balance transfer. Even if you're late by one day, the 0% might can up to 20% or even higher.
But of course, you should ideally never carry a balance and pay it off every month and not just pay the minimum.

What to do if your credit card is stolen

2007-05-10T03:34:00.000-07:00

When your credit card is stolen, times can be very stressful but with right steps and proper handling you can best deal with the situation.

When you realize that your credit card has been stolen don't panic because when you do your decision making abilities are affected.Stay calm and call the bank immediately. Best is to call at the number at the back of the credit card,you should always have that 1-800 number stored into your phone directory. If you don't have the number call the regular number of the back and ask for assistance.

As you report your card has been stolen, ask them to freeze the account until a new card has been issued and old has been canceled. This will prevent fraudulent charges from appearing in your account, also it will protect your credit.

After reporting the bank about the incident, call all three credit monitoring agencies and ask them to have "fraud check" for your account and tell that you need it because your credit card has been stolen.This will help to save your credit standing in case of fraudulent excessive charges and also in case identity theft.

With bank and credit agency's help you should be safe but it always better to have some backup. When credit cards are stolen there is a chance of identity theft, to prevent that from happening, ask for relevant agencies for advice and suggestion on how to be safe.Also check on your credit report often and watch our for uncommon behavior and yes, keep close eye on your credit card statement of at least a year after the incident.In fact, it is always a good idea to closely monitor your credit card statement.

Credit card theft is getting more and more common but with right security strategy you can protect your name, money and credit rating.

Credit card safety: How to check statements

2007-05-10T03:33:00.001-07:00

Checking your credit card statement is quite easy and if you do it on a regular basis, you could be protecting yourself for any potential fraud. There are three ways in which you can check your statements. Here are instructions for each:

PAPER STATEMENTS
You should receive a paper statement for your credit card each month, unless you have opted for online statements. If you notice that you have not received your statement within a month, call the customer service number that is on the back of your credit card. Upon receiving your statement open it. Check the balance of how much you spent and how much is available. Is it consistent according to your purchases? Check the finance charges. Do they make sense according to your interest rate and the payments you've made? Lastly, go through every single purchase and highlight any purchases that you don't recall making. If you see any of these, immediately call the number on the back of your credit card to file a dispute to have their fraud investigators work on your case.

ONLINE STATEMENTS
You can also view your statement online. Usually, the Web site that you need to register with is on your paper bill. If not, you can call the number on the back of your credit card to see what site to go to. Believe it or not, there are still some credit card companies that do not allow you to have an online account, so you may not be able to check your statement online. But if you are, you will need to register your name and information and provide your credit card information. If everything turns out to be correct, you will be able to log in to your account and check your statement immediately. Go through your statement as you would with a regular paper statement, and write down any suspicious charges. Then call or email the credit card's customer service to dispute the charges.

PHONE
Yes, you can check your statement via phone. You will receive the information via an automated system or a customer service rep depending on the company. Have them list all the charges for this month and flag any that you think are suspicious. Then, the customer service rep will fill a dispute for you, or you will be transferred to their fraud investigation department.

Whichever method you choose, please be sure to check your credit card statements on a regular basis. Millions of people become victims of credit fraud simply because they do not check their statements. Ensure your protection against credit card fraud and keep record of your balances. That way you will be aware of what is going on with your credit accounts.

What you need to know to apply credit card

2007-05-10T03:29:00.000-07:00

Credit cards can offer a convenient form of payment or a quick way to get cash. But deciding on whether a credit card is necessary depends on how you plan to use it and if it will be used wisely. There are several pros and cons to owning a credit card:

Pros
-It is safer than carrying cash and is easier to use compared to writing checks. Credit cards are accepted nearly everywhere from grocery stores, to the mall, to movie theaters, even for online purchases.
-It provides extra security. Depending on the circumstances, you have a right to withhold payment if you are disputing with a merchant over an item.
-Most credit cards have grace periods of at least 25 days, basically giving you an interest-free loan until you have to pay the charges each month.
-Credit cards are useful for medical emergencies or unexpected car repairs.
-It is easier to track expenses by using a credit card statement than if you used cash to make purchases.

Cons
-Be careful with credit cards that have high credit limits, as they may entice you to overspend or go impulse shopping.
-It's not a good idea to have too many credit cards, especially with balances, since they can affect your chances of applying for bigger purchases in the future, such as a car or a home.
-Another way credit cards can damage you financially is through high interest rates and annual fees. If you don't pay your balance in full every month, then those dreaded finance charges will be added to your account, causing more debt.

Several factors should be taken into account when applying for a credit card, including interest backdating, when means interest is charged from the moment you make a purchase to the card. A way to avoid this is to pay the balance in full every month. Another method that issuers use is the two-month cycle billing period, where two months' worth of interest is charged if you don't pay your balance in full during the first month of having the card. In this case, you can either switch credit-card issuers or pay the balance in full altogether.

If you have a credit card with a bank where you also have a deposit account, the bank may have a right to setoff clause that allows them to take funds from that checking or savings account should you become delinquent. The best course of action here would be to bank at a different institution, or avoid credit card delinquencies. Fees are also something to watch for when applying for a credit card. If an issuer charges $50 annually, you may also be subject to high finance charges of 18 percent or more.

All it takes is to contact the bank and ask them to drop the annual fee and reduce the interest rate. If they say no, it is time to switch to a lower-priced card. Most credit cards have introductory offers that give a low interest rate such as 7 or 8 percent; however, beware that when the introductory period expires and there is a balance on the credit card, you may be subject to a higher rate as well as a higher minimum payment. To remedy the situation, you can either pay the balance in full before the rate increases or close the account.

When applying for a credit card, make sure you read the annual disclosure statement in case of any changes or benefits. If you don't agree with the changes, you can always switch cards. If you're strapped for cash, many credit cards offer cash advances, but they can impose transaction fees and finance charges, therefore increasing your overall balance. It is best to limit or avoid cash advances altogether.

Additionally, if you can pay more than the minimum monthly payment or pay the balance in full, do it. Credit card issuers are likely to make more money from finance charges the longer you carry a balance, leaving you to foot the bill. Bottom line - think of the pros and cons of owning a credit card and decide whether it is right for you. All it takes is common sense and good money management in order to avoid debt.

The truth about no-fee credit cards

2007-05-10T03:27:00.001-07:00

No-fee credit cards may be the best option for responsible users of credit. Sometimes a no-fee card will have a higher rate interest rate than one with a fee, however, if you are paying off your balance each month, the interest fee is not much of a concern. A person with good credit should be able to obtain a no-fee card with a competitive interest rate, which could come in handy if one encounters some unexpected financial difficulties.

Many of the credit cards that charge fees are ones that provide special benefits, such as airline miles or other travel privileges, which are based on the amount charged. Though these rewards might look good on paper, you have to consider whether you will get your money's worth. Will you actually charge enough on the card to earn any rewards? Even if you manage to earn the benefits, will you be able to travel during times that aren't restricted by black out periods? For many people, the benefits don't justify the costs.

There are several no-fee credit cards that provide rewards to their customers. These benefits include airline miles, gift certificates for stores and restaurants, and probably the best reward, cold hard cash, often rewarded as a credit on the account statement. Since you should only charge items you can afford and pay your balance in full each month, these cash rewards are basically free money. Cash is not subject to black out or expiration dates, as are many other credit card rewards.

Another benefit frequently advertised by the fee charging credit cards is their extra travel insurance. If you don't travel very often, this won't be much of a consideration. Even if you do travel, it is very likely that your own auto insurance will cover you when you are driving a rental car. As for accidental death insurance, you may be better off putting that annual credit card fee toward life insurance that will provide for your family whether you die of accidental or natural causes. Besides, these same benefits are also provided by the better no-fee credit cards.

The only people who might struggle to obtain a no-fee credit card are those with damaged credit. The best option for people in this situation is to work hard to use their cards more responsibly and pay their balances down as quickly as possible. At the very least, they need to never skip a payment. After several months or a year of responsible behavior, the credit card holder may be able to convince his bank to drop the annual fee. If not, that person should check with another credit card issuer to see if he can obtain a no-fee credit card.

With so many banks and financial institutions fighting for business, it should not be hard for a person to obtain a no-fee credit card with a competitive interest rate and even some reward benefits. For the average credit card user, fee free is the way to be.

The truth about reward credit cards

2007-05-10T03:22:00.000-07:00

Reward credit cards as the name says is simply a kind of credit card which amazingly rewards you of using it. Yes they do reward you of their usage in terms of cash-back, general points, air-miles, gift-vouchers etc. However this is not true, basically credit card companies or banks which offer reward credit cards encourage their customers to use a credit card more often in order to get rewards. So when a person uses his/her reward credit card they are incurring more outstanding balance on their reward credit cards. So they end up paying higher interest or being in debt.

A typical example of a reward credit card is for every pound you spend you get a point and for one hundred points you will get a pound. Well this is not worth because standard APR of reward credit card is around 17.9% so on 100 pounds of outstanding balance you are literally paying around 1.5% interest per month, which on 100 pounds will be 1.50 pounds. So basically in order to redeem one pound you are actually paying 50 pence.

Moreover reward credit cards are only acceptable in major shopping centers or high street stores you cannot use them in general stores, thus encouraging customers to use their (reward)credit cards more often and end up being in debt or pay more interest. people buy reward credit cards by simply looking at the advertisements. But for a person who has never left his/her native country applying for a reward credit card which is offering air-miles as rewards of using a credit card is absolutely a foolish idea.

Advice on credit card balance transfer

2007-05-10T03:18:00.001-07:00

Credit Card Balance Transfer, is when you move the dollar amount owing on one credit card to another, usually a new credit card.

Sounds dumb? Actually its not. As a former banking representative, I use to assist people with sky rocketing credit card debt. Here's how it works.

Take your highest interest credit cards, (the Store ones) take the respective balances (remember store cards are usually 25-40percent interest) transfer these balances onto a new Visa/Mastercard and Voila! Now one balance, at a rate of usually 8-15 percent.

People have saved thousands this way. Now the trick to remember of course is to go ahead and cancel those store cards, so you won't get in this mess again!

How does a credit card work

2007-05-10T03:12:00.000-07:00

You don't have cash, so you pay credit cards. It's called,"A money card". But, you wonder how does it works?

Credit card was designed for business. It is a plastic card that fits in your wallet. Usually, your credit cards contain your personal information. Your name, birthdays and even your picture. Then with your signature in it. Your credit card will be your personal tract number. Have you notice, that when a police want to tract a criminal, they always ask about if they used credit cards? Because credit card could be tract your personal information around the world. Credit card become useful now a days.

Paying with your credit cards when you purchased something on the store could be easily tract and recognized. Of course, the number from your credit card would be your special number combination that is only design for you. Cashiers from stores and employees who specialized the purchased by the used of credit cards always make it sure that they were doing the job in a secure basis and in a safety manner. Remember that, credit cards are business. They will always print two receipts, one copy for the store, and one copy for the card holder. Banks and shopping malls always make any legal transactions regarding the credit cards. Malls and shopping center always make it sure that fraud and scam can be avoided in regards to credit cards.

If my bank calls, can I give the card number

2007-05-10T03:10:00.000-07:00

"Good morning, Ms.Smith, I'm with ABC Credit Services. I'm calling today because someone used your credit card last night at a Stop-N-Go. Can you please confirm your credit card number for me?" Fraudster Phone Call

The internet is ripe with information on how to avoid credit card scams. But what they won't tell you is what the people calling will sound like, or what they will say.

First, be aware, that banks will call to confirm your purchasing habits but NOT to confirm your credit card information. There is a distinction. Card companies will already have your credit card numbers. This information will be up on one of several security systems. Second, regardless of who is on the phone, tell the person that you will call your card company to confirm and HANG UP. Dig your credit card or credit card statement out and call the 1-800 number listed. If the customer service agent does not have notes on your account about a call to you, ask to speak with the Fraud Detection Department. These are the people most likely to call you. By law all Credit Card Companies and Banking Systems have Fraud Detection Departments.

So, here are some other things fraudsters may say when they call you:

"Good afternoon, Mr. Smith, I'm with ABC Credit Card Company. We noticed some unusual activity on your card. Can you confirm your credit card is in your possession? To confirm, please read off your last four numbers AND the csc/cvc code on the back."

"Hello, Ma'am. I'm with your bank. I have your credit card here. Can you confirm the numbers? Why? Because someone found it outside and I want to make sure I'm talking to the right person."

"Hello, Sir. Your credit card number was used today at my store. I just want to make sure that I got the full number here because it's not processing all the way. Will you repeat the number for me?"

And, my favorite all time lie is:

"Good Morning Mr. Smith. I'm with ABC Credit Card Company and you've just won our Grand Prize! In order to process all the forms we will need your credit card number. May I get that full number, please?"

Also, be ware of the Visa 911 Scam:

"Good Morning Ms. Smith. I'm with Visa 911. I see your credit card is being used in Guam. Please confirm your credit card number for me so we may stop all the charges against it if your card number has been comprimised."

Visa 911 will NOT call you. Your credit card company will call you if there is an issue with your card.

Safety: why you should sign your credit card

2007-05-10T03:01:00.000-07:00

Despite the fact that credit card companies request that you sign your card immediately upon activation, many cardholders still believe that carrying a non-signed card is actually safer. And their argument does make some sense. By writing "See Photo I.D." on the signature line rather than signing your card, it forces cashiers (in theory) to make sure that the person presenting the card is actually you. If your card is signed and it is stolen, it gives the thief the opportunity to recreate your signature, which many people are quite good at doing. They can forge your signature and easily pass as you if no ID is required.

However, according to the fraud departments at most of the major credit card providers (MasterCard, Visa and American Express), it is strongly suggested that you sign your card. For your credit safety, credit card companies have strictly advised that merchants refuse to let patrons make a purchase with an unsigned card. The majority of retailers are trained to refuse your card if it isn't signed, even if you have a valid photo ID. Many merchants will make you sign the card before they complete the transaction. Therefore, not signing your card isn't making things any safer for you and actually can make things easily for a thief, who doesn't have to worry about recreating your signature, but rather can sign your name in their own handwriting.

Unfortunately, signing your credit card is no guarantee of credit safety. Many cashiers don't even look at the signature on the back of the card and others give your card back before you have even signed the sales slip. This is especially true when retailers have readers that allow customers to swipe their own card. Even if the clerk compares the printed receipt with the signature on the back of your card, they are more likely to give customers the benefit of the doubt, as many people's signatures look very different when signed with a digital pen than they do on the back of their card or on paper. Also, a good majority of credit card fraud is done online, which of course does not require that anyone see your signature.

There are some other important steps that you can take to decrease your chances of credit card fraud. Make sure that others are not looking over your shoulder to copy down your credit card number or inspect your signature. Also, always take your store and ATM receipts so that you can compare them with your credit card statements. While you will typically be informed by your credit card company if an unusually large purchase appears on your card, it is still always a good idea to carefully read your statements. Always keep a close eye on your purse or wallet and don't carry all of your cards with you at once. Only bring one or two and leave the rest in a safe place at home. Finally, if you think that your credit card has been compromised, call the credit card issuer immediately.

The truth about low-interest credit cards

2007-05-10T01:51:00.000-07:00

We've all received the offers in the mail: "Zero percent interest until July of 2008!" If it sounds too good to be true, it usually is. Credit card companies do offer low rates if you switch your balances over to them. Once you get the new card, the company sends you an explanation of their policies that is usually written in such small print you need a magnifying glass to read it. If you decipher this tiny script, you discover that your 0% interest rate will convert to 14.99% or higher if you are late on a payment by even one day!

The next trick up the credit card companies sleeve is to send you statement that arrives a couple of days before your due date. If you are fortunate, you may be able to go on line to pay the account before it goes past due, but the companies usually require a day or two to process the payment, so you still might end up being late and incurring the higher interest rate on your next bill. When a company failed to send me a statement one month and then tried to raise my 0% card to 18%, I called and complained until I had a manager on the phone and the 0% rate was reinstated.

When I was a teenager, a father of one of my friends worked at a bank. I put on my best clothes, walked into his bank and asked him if he would approve me for a credit card, even though I had no credit history. He approved it, and I was careful to keep the card current, because I didn't want to let my friends father down.

Fast forward a few years, and it appears that the credit card companies aren't interested in people who pay their bills on time. If they were, they wouldn't lure people in with low interest rates only to pull the rug out from under them when they make the slightest mistake. Companies like Chase and Citibank are making more money than ever, but their greed is insatiable, and they are willing to go to any lengths to satisfy it.

If you have been on the wrong end of one of these credit card company bait and switch tactics, here are some steps you can take:

1- On the website for the card, you can usually setup an automatic payment. Set one up for the minimum due on the card so you at least pay this every month. You can make a second payment every month to reduce your balance if you want.

2- If your rate is raised because of being a day or two late on your payment, call the help desk and insist that you speak with a manager. Tell them you are prepared to close your account if you are not helped.

3- If step 2 doesn't work, file an on-line complaint with the Better Business Bureau. These companies pay attention to BBB complaints, and they have customer service people assigned to complaint resolution. Tell the person who calls that you want your rate restored to 0%.
4- The best advice I can give you (and I am following it myself) is to pay off your credit cards and use cash.