Credit Card Quick

Skimmer Credit Card Fraud on the Rise

Card Security

Did you know that a thief can be using a credit card in your name, with your account number, right now?

Don’t think you’re at risk? Think again.

Have you ever handed your card over to a waitress, store clerk or hotel staff member when making a credit card purchase? If you answered yes, then you are at risk of being a victim of credit card “skimming.”

A skimmer is a small, hand held device (often as small as a pager!) which enables a thief to immediately obtain your credit card information in just seconds.  The scenario usually plays out like this: the employee takes your card and leaves to run your credit card for your purchase. With just an extra swipe of your card into the skimmer, the thief now has your name and credit card information.

The thief then usually downloads this information onto a computer and uses it for a variety of fraudulent activities. Many thieves are able to duplicate counterfeit cards and then distribute them for use worldwide.

This problem is huge and getting bigger by the day. In fact, it is estimated that skimming costs consumers more than $1 billion each year.

There are a few things you can do prevent a skimmer from damaging your credit:

• Never let a clerk, waitress or other type of employee walk away with your credit card. Pay cash at restaurants and other venues where your credit card must leave your site.
• Keep a close eye on your credit card bill so that you can catch fraudulent activity before it gets out of hand and ruins your credit score.
• Immediately contact the credit card company in question if you notice any unauthorized charges on your credit card.
• Immediately contact the three, major credit reporting agencies – Equifax, Experian and TransUnion – if you suspect any fraudulent activity and ask them to put a fraud alert on your credit report.

It is important to remember that, as a consumer, you must remain on high alert when it comes to your credit. Stay informed, read your credit card statements carefully, and immediately contact the appropriate sources if you suspect any kind of fraudulent activity on your credit card.

Who Says you Can’t Start Over?

Credit Card Debt

Is there any way you can rebound from a poor financial past?

Absolutely.

Does it take time, effort and patience?

Absolutely!

Recovering from a past of late and missed payments, overdue notices and mounting credit card debt can be overwhelming and time consuming, but it can be done. With a great deal of patience, perseverance and hard work you, too, can begin to repair your financial past and look forward to a bright financial future.

Your Action Plan for Improving your Credit:

1. Order a copy of your credit report from all three of the national credit reporting agencies and pour over every detail included in these reports. If you notice any discrepancies or errors, immediately report them to the appropriate credit agency, as small mistakes can wreak havoc on your overall credit score.
2. Make a list and prioritize your debts, preferably according to the oldest debts or those with the highest interest rate. Use your credit report to complete your list so that you don’t forget any debts.
3. Make a budget and stick to it. While you’re at it, look for other areas in your monthly budget on which you can cut back. Do you need a cup of coffee from your local café every morning, or can you save your money by instead bringing a cup of coffee from home? Do you need premium cable service, or can you downgrade to a basic cable service?
4. Contact your creditors and ask for easier payment plans or a decrease in your interest rate. They may deny your request, but they may not! It’s never too late to ask!
5. Make the minimum payments on all of your credit card debt and put all of the extra money towards the highest interest debt. After that card has been paid off, continue onto the next card until all the debt has been paid. It is important to continue paying at least the minimum payment on all of your other debts during this time! This may be a long, arduous process, but keep your ultimate goal in sight so that you can lead a more financially sound future.

The Perks of Using your Credit Card to Make a Large Purchase

Credit Card Rewards

If your credit is great and you’ve earned a high credit limit and a low interest rate then you may consider using your credit card to make a large purchase. From a used car to a flat-screen television or backyard deck, your credit card may be your ideal source of credit for large purchases and home improvements.

Have you considered using your credit card to make home improvements; to take a family vacation; to purchase household appliances or furniture; or to purchase a computer? All of these types of purchases can be made using your low-interest credit card!

There are plenty of perks for using your credit card to make large purchases, including:

• No loan application – If you are looking to make a large purchase on credit you will need to deal with the hassle of a loan application; either for a car loan, a personal loan or another credit card. However, if you have an existing credit card with a high credit limit and a low interest rate, you can make your purchase and avoid the frustration of filling out a loan application.
• More competitive interest rates – Many personal loans, auto loans and retail credit cards charge shockingly high interest rates; whereas, your credit card will likely have a more competitive interest rate. Compare the interest rates for a personal loan, as well as your credit card, and you may be very surprised to see that your credit card may offer a much lower interest rate.
• Convenience checks – There is no better way to make a large purchase than to simply write out a check. Many credit card companies send convenience checks to their outstanding customers, along with special offers and promotions. For example, it is not uncommon to receive a special convenience check promotion with a low, fixed interest rate until the loan is paid off.
• Easy repayment terms – Your credit card will likely boast easy repayment terms which allow you to prepay without a penalty. Most credit cards have simple, straightforward terms and conditions, as well.

How to Protect yourself Against Online Credit Card Fraud

Identity Theft

In today’s technology-driven world, the idea of credit card fraud can be downright frightening. Thieves are finding new ways to commit credit card fraud every day, often quicker than credit card companies and government entities, such as the Federal Trade Commission, can keep up.

Many consumers have fallen victim to credit card fraud through fraudulent websites and thieves looking for an easy way to obtain credit card information. The sad thruth is that many consumers unknowingly offer up their credit card information to online thieves. This is often done because consumers continue to make purchases off of sites that are either phony or unsecure.

How does this happen, and what can you to reduce the likelihood that you’ll be the next victim of online credit card fraud?

• Never, ever give out your credit card numbers online if the site isn’t secure. And don’t trust that small padlock icon, either, as thieves have found ways to simply duplicate it on unsecure websites. Instead, shop only through trusted sources, and make sure the website address begins with “https” instead of just “http.”
• Always make sure your firewall and virus software on your computer is up-to-date, and don’t make a single purchase online unless you know that you are fully protected.
• Avoid purchasing off any online retailer that has no permanent address or phone number.
• If you are still unsure about the online company in question, contact your local Better Business Bureau.
• Never respond to an unsolicited email from a company offering you a “great” deal.
• Avoid using your debit card for online purchases, as this can put your bank account in jeopardy. Instead, use your credit card to make purchases, as most credit cards have protection plans against unauthorized purchases.
• Contact your credit card company IMMEDIATELY if you suspect fraudulent activity. Contact the three, national credit reporting agencies, as well, and ask them to flag your credit report for any suspicious activity.

It is important to remain educated and diligent when it comes to your private credit card information, as this can mean the difference between convenient, online credit card transactions and a great deal of grief.

The Perks of Owning a Small Business Credit Card

Credit Card Types

If you own a small business, then you may have considered a small business credit card. You may need a small business credit card, regardless of the size of your business. In other words, if you have decided against a small business credit card simply because you don’t think your business is big enough then think again. A small business credit card can offer you and your business many advantages that personal credit cards simply can’t.

But what is a small business credit card and how can it serve you as a small business owner?

• Online Tools – Small business credit cards often comes with a wealth of money management tools. These tools, often available online, help you, the small business owner, to track and organize expenses in an effort to maintain accurate records. The online tools offered by many credit card companies for their small business credit cards also enable you to monitor the spending of your employees should they need to make business-related purchases.
• Larger credit limit – Small business credit cards often come armed with a much higher credit limit than standard, personal credit cards. If you are starting your business and need assistance from time to time, then a larger credit limit is ideal for you. In addition, if your business requires that you make large purchases, then a higher credit limit will certainly come in handy.
• Separate from your personal accounts – A small business credit card is a practical alternative to using your personal credit card to make business purchases. In order to ensure accurate bookkeeping, it is important to keep your personal accounts separate from your business accounts; therefore a small business credit card may become very useful.

When searching for a small business credit card, remember that interest rates, credit limits and reward programs differ widely from one card to the next, as do the services they offer to small business owners. It is therefore important to take your time and compare small business credit cards to be sure that you have chosen the one that is best for you and your business.

Tips for Finding the Right Credit Card

Choosing Credit Card

If you have managed to keep a sparkling clean credit history and have earned the bragging rights of a great credit score then you are one of the lucky few to have your choice of credit cards. Individuals with great credit can expect a barrage of credit card offers, mainly through direct mailings.

So, how do you find the credit card that is best for you?

1. Decide what you need – Do you need a credit card for personal use, or will you be using it for business, as well? Do you need a high credit limit, or is flexibility and a low interest rate more important to you? It may be a smart idea to make your list of credit card must-haves before you begin your credit card search.
2. Compare current interest rates, fees, terms and rewards online – A quick search of the Internet will yield many websites offering current information regarding credit cards. You may want to begin your search for current interest rates on some of the most popular credit cards, and determine which companies are offering the best deals. You may also want to check current special offers, such as 0% balance transfers or promotional interest rates to see which ones work best for your situation.

You will also want to check some of the most popular rewards programs, as well, as you may find a rewards-type credit card that best fits your needs and wants. For example, if you are a frequent traveler, then you may want to check credit cards that feature airline reward points.

1. Sort through credit card offers – After you have done your research and compiled your list of must-haves, you can begin sorting through the credit card offers you have received in the mail. Shred all offers that you don’t accept, and make a pile of credit card offers that you want to research further. You may also want to check online offers for credit cards, as well.

Once you have narrowed your choice down to one or two credit cards, carefully read the terms and conditions of the credit card and, most importantly, make sure that you understand all of the card’s small print before entering into a contract with the company.

How to Effectively Use your Credit Card (and not Let it Use You!)

Introduction

There are many consumers who have gotten themselves into a precarious position: they are slaves to their credit card. Sad, but true.

They failed to pay their bill on time, the credit card company raised their interest rates and slapped them with fees and charges, and now they are simply stuck paying a high balance on a credit card with a high interest rate. Plus, now that their credit is in the gutter, they have little chance of transferring the balance to another credit card with a more reasonable interest rate.

Unfortunately, this is not an uncommon occurrence. In fact, many consumers are stuck in this situation because of past mistakes or bad circumstances. With this in mind, it is important to understand that there are things you can do today to prevent this kind of nightmarish situation:

• Read and re-read your credit card’s terms and conditions.

Those loose little papers that come with your bill often provide important information that most consumers simply choose to discard instead of read. Your credit card’s terms and conditions – or, more importantly, changes to these terms and conditions – can have a big impact on the way you use your credit card or pay your credit card bill.

• Always, always, always pay your bill on time.

There is simply nothing more that needs to be said about this rule. All credit card holders should abide by this rule and use it as a mantra, whenever possible!

• Pay more than the minimum. Or better yet, pay it off each month, if possible.

Don’t squeak by each month by simply paying the minimum balance on your credit card. Make yourself a budget and find extra money to put towards your credit card bill. Even as little as $10 or $20 a month can make a huge difference in your balance over the long run!

• Call your credit card company and negotiate a better deal.

If you have been a loyal customer and have always maintained a good standing with the credit card company then you may be in the position to negotiate a better interest rate. If not, then it may be time to look for a better credit card.

Benefits of Using your Credit Card on Vacation

Credit Card Rewards

Now is the time of year many of us head to our vacation destination with our families in tow. If you are preparing your finances for vacation then you’ll certainly want to bring your credit card along.

There are loads of things to remember: clothes, travel supplies, medications and sunscreen, just to name a few! The last thing you need to worry about is cash on your vacation. Luckily, your credit card can home in quite handy for your next trip.

There are several benefits of using your credit for your next vacation:

• Safety – There is no better way to travel than with a credit card. Cash may catch the attention of a thief, or it may make you more susceptible to a mugging. In addition, cash can’t be replaced if you lose it. Once it’s gone, it’s gone. A credit card, on the other hand, can be easily replaced if you lose your purse or have your wallet stolen.

Credit cards are also a good choice, as you are protected from unauthorized expenditures on your account should a thief steal it.

• Convenience – With your credit card in your wallet, there is no need to withdraw large sums of cash from the bank, and no need to fumble around with cash every time you make a purchase. And there is certainly no need for cumbersome traveler’s checks, which may be both inconvenient and difficult to use, as retail establishments may not accept them.
• Practicality – It’s easy to track your expenditures from your vacation with a credit card. In addition to keeping you on budget, your credit card may also come in handy if your costs unexpectedly exceed your budget while on vacation. There is nothing more impractical than being away from home and over-budget!
• Rewards – Many consumers use reward-type credit cards for vacation purposes because the numerous purchases quickly earn rewards.

Don’t Forget!

It is important to remember to call your credit card company before embarking on your vacation to let them know that you will be traveling and incurring considerable charges (many credit card companies may flag your account to be sure that there is no fraudulent activity going on with your card, so it is best to let them know your plans).

In addition, it is best to know how much credit you have left on your account and, if needed, ask the credit card in advance for a credit line increase.

The Five Best Tips for Managing your Credit Card Balance

Credit Card Debt

In an ideal world, we would all have a zero balance on our credit cards. Although this is certainly something most consumers would like to aim for, the reality is that most individuals carry a credit card balance. In fact, recent statistics show that the average credit card balance for an American household is $8,000.

Instead of simply listening to financial advisers tell you that you should pay off your credit card balance, it may be best to start with strategies for managing the balance you currently have. The truth is that most of us would prefer not to have a credit card balance, but because this may simply not be reasonable for some individuals at this time, arming them with the tools necessary to handle their credit card balances may be a more logical step in the credit card process.

1. Check the due date – every time.

It is important to remember that the credit card company can change the due date at any time. The credit card company may also shorten the length of time in which you have to pay your credit card bill, so always check this due date every time you receive your monthly credit card statement.

2. Pay far enough in advance to account for processing and mail delivery.

Don’t get caught with late payment charges because your payment didn’t make it in time. Instead, always allow at least a week for your payment to arrive to your credit card company when sending it through the US Postal Service. Add a day or two if a holiday is approaching, as well.

3. Consider online bill payment services.

If sending your credit card payment through the postal service makes you nervous, then consider online bill payment services. Many credit card companies have this service on their website and you may also pay your bill through your bank’s online bill payment service.

4. Always pay at least the minimum.

Regardless of your budget or financial position, it is imperative that you always, at the very least, pay the minimum balance on the credit card. It is simply not worth a damaged credit score and credit card fees.

5. Pay more than the minimum, when possible.

First, the bad news: you will get nowhere fast paying just the minimum balance every month. Now the good news: if you pay just a small amount more towards your credit card bill each month, you could enjoy saving hundreds, if not thousands, of dollars in interest payments over the years.

Retail Credit Cards: Should you Take the Bait?

Choosing Credit Card

We’ve all been there before: we walk through a store, spot an item that we feel we absolutely “must have,” then get lured in by a sales associate promising us a retail credit card in an instant, complete with an incentive. The question is: should we take the bait, or should we remain hesitant when it comes to retail credit cards?

Retail credit cards certainly have their share of advantages and disadvantages, so what might be right for one consumer may not be right for another.

Let’s compare the two:

Advantages of Retail Credit Cards

• Instant approval – There is nothing like being able to purchase items from your favorite retailer when they are able to approve you in just minutes.
• Instant discount – Many retailers offer customers additional incentives for applying for instant store credit by discounting the day’s purchases.
• Future coupons/discounts – Many retailers, in an attempt to lure their customers back into the store send them coupons in the mail, usually along with their statement.
• Special promotions/events for card holders – Another ploy of retailers to get their credit card holders back into the store is to offer card holder-only promotions and events.

Disadvantages of Retail Credit Cards

• High interest rates – It is important to realize that, along with the convenience, comes high interest rates. Over-the-limit fees and late-payment fees for retail credit cards can be quite high, as well.
• More credit – do you need it? – The real question when deciding upon a retail credit card is, “Do I really need another credit card?” For many consumers, a standard credit card with a low interest rate may be a much better option than opening yet another credit account.
• Impulse buys/overspending – Perhaps the biggest reason that many consumers avoid retail credit cards is that they often encourage impulse buying and overspending, Sometimes it is all a bit too tempting to walk into a retailer and buy more than we need, simply because we come armed with our store credit card. Consider whether you can make responsible purchases with a retail credit card before applying for one.