If you do not understand consumer credit, you will be far more likely to misuse credit, and ruin your financial situation. That is why the subject of consumer credit is so important. Continue reading »
Mar 242005
Mar 132005
Travel or Cash Back Credit Cards? Continue reading »
In the new millennium plastic money or credit cards has rendered a new zing factor to your pocket. This has not only made you economically more flexible but subsequently added glamour to your financial image as well. No more bulging out hip pockets with excess of liquid cash. Instead, the slimmer your pocket; the smarter you look. But behind all these inviting attributes of credit cards there seems to be a trap laid out for people who are impulsive and careless. Continue reading »
SHAPING YOUR APPLICATION TO FIT THE RIGHT PEOPLE
Creditors approve credit to those people who most closely match the right profile. They arrive at those conclusions by assigning point values to various items of information that are included either on your credit application or in a credit report. Continue reading »
“No man’s credit is as good as his money.” E.W. Howe, American journalist, novelist (1853-1937). The American economy is based on credit. If you don’t have at least an average credit rating, you will find that getting approved for any type of loan, or credit card, will be very difficult – if not impossible. As the nation’s economy worsens, the money supply becomes tighter. A major factor looming on the horizon is the growth in the national debt. At this moment, the country’s deficit is approaching a staggering four trillion dollars! That means something like twenty cents out of every dollar spent by the Federal Government goes toward paying off interest on money borrowed! Continue reading »
Most of us get a credit card on our name when we go to college or when we are in our senior years of high school and all of us stumble into the same types of difficulties when it comes to finding an issuer and managing the credit card. Most banks ask for a prior type of credit history that most of the time lacks and for some type of warranty that we will be good payers. It is true, finding the right issuer and building a credit card history is not easy, but it can be done. Continue reading »
It’s a little known fact that late fees account for an immense proportion of credit card companies’ profits, as much as 30% in the case of some lenders! You may never have encountered a ‘late fee’ before, but if you use a credit card, you probably will! Forget to pay off the bill one month, or misplace a bill, and the next month you will see a new entry on your statement – the dreaded ‘Late Fee’. Continue reading »
Feb 172005
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. Continue reading »
Feb 012005
The Fair and Accurate Credit Transactions Act, signed into law on Dec. 4, 2003, gives every American the right to a free credit report every year from each of the three major credit bureaus — Equifax, Experian and TransUnion. Continue reading »
Jan 232005
We have all heard countless stories of people over their heads with credit card debt-maxing out every card they own, then only being able to afford the minimum monthly payment. High interest payments shackle people to their debt for years, not to mention the significant income drain the finance charges have on their families. Continue reading »
It’s an interesting question to consider how much money credit card companies makes? Have you ever wondered how much of that comes from late fees? Everyone has and if you haven’t you should because most likely you own a credit card, which means that these late fees has or could directly affect you. Continue reading »
In an attempt to describe perfect credit it is almost impossible to put into words because perfect credit is a myth. The best the majority of consumers can achieve is good credit, and this is due to the fact that we are human, and as humans we have a tendency to err. Yet, good credit is still a goal that is still unattainable by a large number of consumers because their credit is damage at a young age. The best concept devised is a report entitled “Using Credit Wisely” that discusses how to use credit, but we come into contact with credit at an early age and start the damaging process, which leads us to a lifetime of bad credit! Continue reading »
Jan 182005
In these highly commercial times, the amount of credit card choices is constantly growing. Many offer generous reward programs and low interest rates, which begs the question: perhaps I’m paying too much interest on my existing card. There are many different offers but which one is best suited to my lifestyle and shopping habits? Continue reading »
You stop at the grocery store for just a few items, but the next thing you know, you have a cart full of food and only a few bucks in you pocket. That when you notice that you left your checkbook at home, but it’s not a problem you have your debit card with you.
You slide your card, punch in a few numbers and you’re on your way. A few days later you notice that you don’t have your debit card and now instead of enjoying its convenience, you’re worried about how much in fraudulent charges you’ll be responsible for.
Debit cards have become extremely popular as the plastic of choice for paying for many types of purchases. According to consumer experts more than 2/3rd of Americans have a debit card in their wallet and, in 2003, debit card purchases topped $1.48 trillion, outpacing credit card purchases by nearly $300 million.
The convince of sliding a card instead of writing a check has been a boon for retailers, but its also been a boon for debit card fraudsters and identity thieves. Last year the American Bankers Association (ABA) reported that fraud involving debit cards cost banks nearly $51 million and many bankers believe that this is just the tip of the iceberg.
If you’re one of those people who prefer using your debit card instead of writing a check, then you need to know that you’re at risk of losing money every time you slide your card or present it to pay a bill. How much you can lose depends on the type of card you carry and when you report the loss or theft.
What’s your responsible for fraudulent charges on your card?
Since your debit card is tied to your checking or savings account, if it’s lost or stolen and someone else uses it, the consequences could be financially devastating. The amount of fraudulent charges you could be responsible for depends on how quickly you report the card lost or stolen to the issuing bank.
* If you determine that your card has been lost or stolen and report it to the issuing bank within 2 days, of discovering the loss, you’ll only be held responsible for up to $50 of fraudulent charges made on your card.
* If you report the card lost or stolen in 2 to 60 days, you can be responsible for up to $500 in fraudulent charges.
* If you wait more than 60 days after receiving a bank statement that includes an unauthorized transfer, you can be held responsible for an unlimited amount of fraudulent charges on your card, but you will not be held responsible for any funds withdrawn after you notify your bank that the card was lost or stolen.
Debit cards with the Master Card or Visa logo offer a higher level of protection for some consumers. Visa and Master Card have both placed a voluntary limit of $50 on debit cards bearing their logo where the transactions are signature based.
Steps to take if your debit card is lost or stolen
In the event that your debit card is lost or stolen, there are certain steps you need to take immediately to limit your responsibility for fraudulent charges.
First, call the issuing bank and cancel the card immediately! If you contact the bank and cancel the card before any charges are made on the card you won’t be held responsible for any charges. Even if you think you lost the card and that you may find it, it’s safer to cancel the card and limit your liability. Make sure that you keep a written record of the date, time and who you spoke to at the issuing bank.
Second, file a police report. Whether or not your bank requires it, you should file a police report with your local police department. In the event that a negative entry is made on your credit report about charges that were fraudulent, you’ll need the report to prove that you didn’t make the charges.
The best way to prevent fraudulent charges on your card is to keep your card and account numbers out of the hands of thieves. Identity thieves are extremely sophisticated and they don’t need to have the physical card to drain your account, all they need certain information from the card. Here are some steps that you should take to protect yourself from card thieves.
Be aware of your surroundings. If you use your debit card at an ATM machine, make sure that you’re aware of who is around you and shield the keyboard with your body when entering your personal identification number (PIN).
When using a drive up ATM, make sure that the area is well lit and is in view of passing traffic. Don’t use an ATM in a neighborhood you feel uncomfortable in.
Check out the ATM machine. If there is a transparent overlay on the ATM keyboard don’t use the machine. ATM thieves use keyboard overlays to capture PINs. Also, if there is a detached card reader next to the machine, take your business elsewhere: these devices are used to capture debit card data.
Don’t use your debit card for online purchases, use your credit card. If online thieves get your debit card information they can drain your bank account; if they get your credit card information they can only make charges up to the credit limit of the card. It’s much easier and less costly to dispute credit card charges than charges than withdrawals from your bank account.
Commit your PIN to memory, don’t write it down. Don’t give your PIN to anyone, not even someone at the issuing bank.
Using your debit card to pay for purchases is convenient and fast, but it also exposes you to numerous risks. Be card smart: keep track of your debit card, monitor your bank account on a regular basis, take precautions when using your debit card, and, if your card is lost or stolen, report it immediately.
Article by Drahcir Semaj who is a freelance writer.
Maybe these ten items may answer some questions you have about using credit cards. Continue reading »
