Credit Card Quick

RevolutionCard Brings Change to Credit Card Industry

Identity Theft

RevolutionMoney has finally launched its highly anticipated RevolutionCard, which is a secure alternative to standard credit cards.

Why the RevolutionCard is Different

Examples include the fact that the RevolutionCard has no account number, name, or signature line on it. The payments are therefore authorized by entering a PIN number, similar to that of a debit card. To make purchases online or by phone, customers can simply use their PIN number.  In other words, the cardholder does not have to provide an online retailer with a credit card number, thereby making the transaction more secure.

The RevolutionCard may act like a debit card, but customers receive the same rewards offered by standard credit cards. In fact, customers of the RevolutionCard are afforded plenty of loyalty programs, which include exclusive offers and discounts on many types of purchases.

Benefits of the RevolutionCard

The RevolutionCard was designed to combat identity theft that has plagued so many millions of Americans. Many consumers are looking for alternatives to traditional credit cards out of fear of credit card theft, and the RevolutionCard fits the bill nicely.

The RevolutionCard is offered by RevolutionMoney, which is a part of Revolution LLC, a company founded by Steve Chase, the founder of America Online.

The RevolutionCard is the first of its kind in the industry, and is the first new credit card brand since the introduction of the Discover card in 1985. It is the first card that is activated and used by entering a four-digit PIN code.

Because there are no credit card numbers on the RevolutionCard, the chances of the card being stolen and used by credit card thieves is greatly reduced. The card also encrypts all transactions and activities, thereby providing an added level of security.

The processing involved with the RevolutionCard is also reduced, thereby offering retailers reduced fees and merchant incentives.

The RevolutionCard is currently accepted at over 650,000 retailers across the United States. In addition, 85 percent of ATMs now accept the RevolutionCard.

The RevolutionCard may become a growing trend in the credit card industry, as many traditional credit card companies hike up interest charges and related fees for their cards. As a result, many customers are looking for other options in an effort to avoid the skyrocketing charges associated with traditional credit cards.

Credit Card Changes we can Expect in 2010

News

This year’s been a rough one for credit cards. From credit card restrictions, credit card legislation and more credit card changes to make our heads spin, the credit card industry has been a difficult one.

Many individuals have lost their ability to obtain credit, while others who never had a difficult time securing credit found themselves unable to obtain credit, as well. Credit card companies put the brakes on gimmicks and high credit limits and credit card consumers found themselves drowning in credit card debt because of outrageous fees and skyrocketing interest rates.

However, as we look to 2010, we can expect things to calm down significantly. In particular, after the remaining credit card laws have been enacted in December, the uncertainty felt on both sides of the equation – the credit card companies and the consumers – should begin to settle and, in general, the credit card industry will adjust to its rules and regulations.

Some of the changes we can expect to see next year include:

Fewer Gimmicks – All of those credit card gimmicks that we have gotten used to receiving over the years will likely not be there anymore. Credit card companies, under the new laws, are simply not allowed to offer hard-to-understand gimmicks, and they really cannot afford to anyway. Because of the tighter restrictions on credit card companies, creditors will target only those with good credit, thereby eliminating the need to offer gimmicks.

Looser credit restrictions – Individuals with poor credit will have been weeded out by this time, thereby leaving only those with good credit. Because of this, creditors may soon be offering more competitive deals to those with great credit. Looser credit restrictions may mean credit will begin flowing a bit more freely next year, including personal loans and credit card offers.

More responsible credit card users – As we said before, the individuals with poor credit will simply not be able to secure credit, which leaves more responsible credit card users. Because of this, credit card companies may be offering better credit card offers to those responsible credit card users.

Is it Time to Break up with your Credit Card?

Choosing Credit Card

The credit card news, as of late, has been anything but positive. The government is tightening the reigns the credit card industry who, in turn, is scrambling to switch up the rules of their credit cards before the new credit card bill takes place. And who is left in the middle of this mess? That’s right: you, the consumer.

All of this mess can make any consumer think twice about even having credit cards anymore. But is the solution to simply cut up your credit cards and live without them?

Although it would make sense that credit cards sometimes hurt credit, most of the time they help credit. In other words, cutting up your credit cards and ending your relationship may not be the best idea, in terms of your credit score.

A Cash-Only Life?

If you plan on living on cash alone for the rest of your life then perhaps ending your relationship with credit cards can work. However, if you plan on financing a vehicle, purchasing a home or refinancing your current mortgage, your credit card relationship is crucial.

This is because credit cards help you establish a strong credit history which, in turn, helps to boost your credit score. Without credit cards, your credit history can be brief, thereby hurting your credit score and your chances of securing any type of financing.

And, given, the state of the current economy and credit sector, a strong credit score is king. Without it, you can all but forget about securing a home loan, vehicle loan or personal loan.

With that said, there are a few things you can do to make your relationship with your credit card company run a bit more smoothly, even in these uncertain economical times:

• If you received notice from your credit card company that your interest rate has been raised, immediately contact your credit card company and request that they cancel the card. They will undoubtedly ask why, thereby giving you a chance to ask if they can lower your interest rate.
• If your creditor refuses to lower your interest rate, you may want to look for another card with a lower interest rate onto which you can transfer your balance. Beware, though, of the balance transfer fees and promotional interest rates, both of which can end up costing you in the long run.
• If you don’t have the option of transferring your balance, the new credit card law allows you to “opt out” of your higher interest rate credit card. If you cancel the card, the creditor must allow you pay off the balance at your current interest rate.