Identity Theft, Insurance Card?

When you think about identity theft most people think bank
information or credit cards but never let it cross their mind
about their medical insurance card. Like me most people always
carry their medical card in their wallet.

If your wallet gets lost or stolen the first thing you do is
cancel or report it to your credit card provider and your bank.

Now that identity theft has risen we all have to be more careful
with every piece of personal information we have about ourselves
and this includes our medical card.

You may not know that someone has used your medical information
until you get that notice from a collection agency asking for
payment in full. Just stop and think about how many have access
to that information especially your family members or even close
friends.

The medical industry is different from the financial industry.
They often limit their exposure. So find out what you’re liable
for if your medical identity is stolen. Some companies cap your
liability, but others don’t.

Survey respondents claimed that on average it took about one year
and sometimes longer to resolve the theft.

Here are some useful tips to avoid being a victim of medical
identity theft:

*When the explanation of benefits arrive from your insurance
company,read them over. Make sure that the services provided
were those you actually got.
*If you see unfamiliar ones, “that’s a big red flag,”
(Call the insurance company immediately. The quicker you take
action, the quicker you can cut it off.
*Don’t share your insurance information with anyone other than
your doctor.
*Put your insurance card in a locked drawer at home, taking it
out only on the day of a doctor visit.
Be safe, Do leave home without it!

About Your Credit Score

After receiving many queries about credit scores I decided to post some information about what they are and what they are based on. If you check
your credit score and see that none are the same it is because not everyone takes the time to report to them individually . They usually report to only one and hope the others pick it up. Some may have removed an entry and others may have added onto your score. Please remember you have the right to dispute anything you find on your report that you think doesn't belong.

-- What is a credit score? --
A credit score is a numerical ranking system that lenders use to determine how much of a credit risk you are. A credit score is a numeric indication of how likely you are to repay debts such as loans or lines of credit. Lenders use this number to determine how much of a credit risk you are.

Credit scores also are designed to indicate your creditworthiness in comparison with other consumers.

Credit scores are based on the data in your credit report and are generated by computers using artificial intelligence. Usually a credit score is between the numbers 300 to 900. The higher your score, the more "creditworthy" you are to lenders.


-- What is my credit score based on? --
Credit scoring is based on many factors that may include:

Amount of available credit
Payment history
Recent requests for credit
Amount of credit currently being used
Length of credit history

Under the Equal Credit Opportunity Act, credit scoring may not use gender, martial status, national origin, race, or religion as factors.

Fact No. 1 of 8: No cap on credit card interest

So today you got an offer for another credit card through the mail.
And you are thinking...
Wow! That low rate looks good compared to what I am paying on my other credit card, maybe it's time for me to get one with a lower rate.

STOP!!!!
Think again about this before you jump in uninformed.

Even if you sign up for a new credit card at its low interest rate, here's a scary, little-known fact: Many card issuers can raise interest rates as high as they like, whenever they like.

The top 10 banks that issue credit cards are federally chartered banks and do NOT have to follow state laws limiting interest rates, says Chi Chi Wu, staff attorney at the National Consumer Law Center.

"So they are free to set the rates as high as they want," Wu says.

Your interest rate is only protected for the card's first year (or first six months, if it's a teaser rate), under the Credit Card Accountability, Responsibility and Disclosure Act, or CARD Act. If you go 60 days late on a payment, that protection disappears. A variable rate tied to an index can also increase if the index goes up.

But if you've had the card for more than one year, the issuer can hike your rate even if you've been a model customer, says John Ulzheimer, president of consumer education for SmartCredit.com.

Two caveats, courtesy of the CARD Act: That hike applies only to new charges (your current balance will be assessed the old rate). And the issuer has to give you 45-day advance notice. This notice may come in with your bill, you know the paper you throw away without even bothering to look at... maybe it's time you actually read some of those papers to stay up to date on what's happening with your interest rate.

Bankrate.com http://www.bankrate.com/finance/credit-cards/no-cap-credit-card-interest.aspx#ixzz1v8ZD1lZL

Bank Debit Card PIN

Your bank debit card is one of the cards people fail to realize can be used by anyone.
Just think back and you will remember...you did not have to use your pin (Personal Identification Number) number when you went out to eat. They just swiped it through and that was all it took. Nor did they ask for any ID. It's true that at some restaurants you may have been asked to sign your name but anyone can see right there on the card what name to sign. Too many people depend on the pin number to keep them safe. Did you sign the back of your card with your name? I was told to always put in bold letters "Ask for ID". That will make your card safer to use at the places that do not ask for the pin. I suggest you also turn your card over to show the back when you do pay. This way the clerk will see the
request or do like I do and supply the ID before they ask. If you happen to lose your debit card report it ASAP. Whoever finds it could have a feast at some high priced restaurant and cause you some serious financial damage. Just because you have a PIN doesn't mean it's safe.

What a bill collector CAN'T do! What YOU can do...

A debt collector can NOT and should NOT:

1. Phone you an unreasonable number of times

2. Phone you at an unusual time or unusual location

3. Disclose information about you, of your debts to
third parties

4. Use profane or other abusive language when
making contact

5. Contact you after you have submitted a written
notification that you do not want to be contacted
any further

6. Falsely claim to be affiliated with any
governmental organization

7. Misrepresent the amount or legal status of any
debt

8. Threaten to take any action that cannot be
taken legally

9. Blame and/or accuse you of having committed a
crime

10. Threaten to report or communicate false credit
information

11. Use forbidden and deceptive methods to collect
debts

12. Call you before 8:00 a.m. or after 9:00 p.m.

13. Call you, but not identify who he or she is

You may be able to:

Reduce or completely zero out your interest payments

Make them stop calling you

Get money damages awarded to you

Erase the item from your credit report

May be possible to negotiate to eliminate the debt

Have your attorney fees paid by the collection agency

Collect money for you from the collection agency

Avoid or reduce late payment fees

Combine several loans into one payment plan

Get errors in your credit reports rectified

Get invalid entries on your credit report removed

Get peace of mind and stop the harassing phone calls

Get a FREE case review at: http://www.makethempayyou.org/free_case_review.html

Answers to Inquiries....

After many inquiries I felt it was time to post this glossary so everyone could understand more about their credit card. If there is something you do not understand, ASK someone who does, it may keep you from getting in debt over your head and no one wants to get those annoying phone calls from debt collectors.
Don't think they have given up when the phone calls stop...they may be in the process of having your bank account frozen.

Annual Fee.....A yearly fee charged by some credit cards for use of the card. Most Discover Cards do not have an annual fee.

APR (Annual Percentage Rate)......A periodic percentage rate that determines the finance charges you pay on your account.

Balance Transfer.....Moving an unpaid balance from one open credit account to another. You will save money if you transfer balances to a credit account with a lower interest rate or for one with 0% for 6 to 12 months.

Billing Cycle.....The length of time between your statements. Discover Card billing cycles are approximately one month in length.

Card Act Agreement.....This the new rule that provides details of your agreement.
Be sure to read it carefully and ask questions about whatever you do not understand.

Cardmember Agreement.....A written document that provides details of your agreement with the credit card issuer. This is another MUST read.

Cash Advance.....Using your credit card to get cash from a bank, ATM, or by writing a convenience check. Typically, the card issuer charges a cash advance fee for the transaction and begins charging interest immediately.

Charge Card.....A specific kind of card that requires full payment of your balance with each billing cycle. Typically charge cards do not charge interest, but late fees can apply if full payment is not received by the due date.

CID (Card Identification Number).....The CID is the three-digit number at the far right on the back of your credit card and is also called a card verification (cvv) number. Merchants may ask for the CID to verify that you have the card in your possession at the time you make a transaction. When using a Secure Online Account Number, please use the three-digit CID generated for that secure account number.


Credit Line.....The maximum amount that you can charge on your credit card.

Credit Report.....A report about your credit history that lenders (credit card companies, mortgage companies, loan agents,etc.) consult to determine if and how much money they should lend to you. Your history for making timely payments, any outstanding debt and open lines of credit are all shown on your credit report. Your credit report is available from credit bureaus such as Equifax, Experian and TransUnion FREE of charge once a year.

Debit Card.....A card issued by a bank that directly accesses available funds from a bank account, typically a savings or checking account.

Default.....When a customer doesn’t make a required payment to a credit card account, or otherwise violates the terms of the agreement between the credit card company and the customer.

Interest Charges.....Certain charges that can be incurred when using a credit card. Interest charges include interest costs.

Interest Rate.....The rate at which a credit card company or other lender charges a customer for “borrowing” money. It is a percentage of the amount borrowed.

Introductory Rate.....A lower APR provided by a credit card company for a limited period of time.

Late Payment Fee.....A fee charged when a payment has not been received by the specified due date. This applies even if it is just 1 hours late. It would be in your best interest to notify them if you have to make a late payment.

Minimum Payment.....The smallest payment a customer can make each statement period to keep the account in good standing.

Penalty Rate.....A higher APR the credit card company charges after the customer has made late payments, exceeded their credit line, or otherwise did not abide by the Cardmember Agreement.

PIN (Personal Identification Number).....A security code that the customer uses with debit and credit cards to authorize transactions such as cash advances. This PIN is different from the user ID and password customers use to access account information online. Never, ever should you write this number anywhere on your card.

Pre-Approved.....A potential customer who has passed an initial credit bureau evaluation.

Prime Rate.....An index rate that determines the interest rate a bank will charge customers. It is one way that a credit card company determines APRs.

Zero Balance.....When your billing statement shows no outstanding balance and no new charges have been incurred.

FREE Credit Report ?? SCAM, SCAM, SCAM

Please DO NOT try to get a "free" Credit report, it's not FREE!!!
Just stop and think a minute....if it was really free why do they need your credit or debit card number? Any time a person or company ask for your CC or debit card number you can bet they intend to charge you for their services even after you cancel. Just take a look at this video and then you decide if you want to pay a monthly charge for hummm, I would say nothing because that's what you will get. It takes more than a few phone calls or even getting your bank or credit card provide involved to get them to stop the charges. You may even get lucky and get a refund, but don't count on it!

Personal Loans and Debt

So you have gotten in debt over your head and now you are looking for a way to get out of the debt hole without filing bankruptcy. But how should you start?
You may be thinking of getting a personal loan to pay off these debts but before you do know what's good and bad before you go apply for a loan.


How Personal Loans Can Kill Debt

by Terry C


One of the most controversial areas in financial planning is the concept of debt consolidation loans. The idea behind a debt consolidation loan is that you take your high-interest debt, which is usually debt from credit cards or from retail accounts, and you put it into a single loan with better terms and a lower interest rate.

What does it do?

A debt consolidation loan might take five smaller loans or accounts, pay them all off, and give you a single larger loan. A debt consolidation loan doesn’t actually reduce your debt, it just forces it all into one optimized bucket. This kind of personal loan lets you create a debt consolidation plan that will, eventually, get you out of debt altogether.

What’s bad about it?

First of all, you need to know that a personal loan for debt consolidation, as said above, doesn’t do anything to reduce your debt it just organizes it. In addition, it takes longer to pay off debt that’s been consolidated. Yes, there may be a lower interest rate, but you may wind up paying the same or more in fees and interest because of the longer term. There’s also the danger that the person who takes out a personal loan for debt consolidation will turn right around and incur more debt, especially if the debt being paid off was in the form of credit cards or retail credit accounts.

Why it’s still a good idea

Given all of that, there are still compelling reasons to use this kind of a loan. Here are some of the reasons a debt consolidation personal loan is a good idea:

* Lower interest rate. With some credit card rates at 20 percent or higher, you’re going to save money on interest with this kind of a loan.
* Ease of use. Trying to keep track of six or seven different accounts to pay each month can be a nightmare. The simple act of organizing your debt makes it less likely you’ll make a mistake and miss a payment on one of the accounts one month.
* A fixed interest rate. Retail credit accounts and credit cards often have rates that change. With a personal loan, you lock in a rate and make it easier to plan financially.

If you do it right, pay it off on time and don’t re-incur some of the types of debt that led to the problem in the first place, a debt consolidation personal loan can be a wonderful thing.

How does BAD Credit Affect My Finances? How can I Rebuild My Credit?

How does bad credit affect my finances?

Individuals with bad credit find it much more difficult (and often impossible) to be approved for loans, credit cards, mortgages, or even accounts with utility companies. Because approval is difficult to obtain, the individual must save more cash before being able to afford things like a house, a car, phone service, or tuition.

When those with bad credit are able to gain approval for loans or other lines of credit, they can often expect higher interest rates and higher payments than those with good credit are typically afforded.

How can I rebuild my credit?

The most important step to rebuilding your credit (or avoiding bad credit to begin with) is to always pay bills on or before their due date. This includes credit cards, mortgages, car loans, personal loans, medical bills, utility bills, rent, or any other financial obligation you have that may be reported on your credit history.

Aside from paying bills on time, reducing your debt is also an important step in rebuilding your credit. If you owe a lot of money on credit cards, for instance, paying down those balances can help improve your credit profile.

Suprise for Credit Card Users

Creative new fees escape CARD Act rules...

New report highlights ways Credit Card issuers have gotten around the new law!
By Tamara E. Holmes

While the Credit CARD Act of 2009 puts an end to abusive tactics card issuers have long used to boost their profits, consumers need only to look at their card statements to know there's no reason to celebrate.

New credit card traps

In the past year, card issuers have rolled out or expanded their use of other ways to collect millions more in fees each year, many of which are hidden to consumers, according to the Durham, N.C.-based Center for Responsible Lending's Dec. 10 report,

"Dodging Reform: As Some Credit Card Abuses Are Outlawed, New Ones Proliferate."

"Credit card issuers are going to more than ever try to find ways to make extra profits," says Joshua M. Frank, a senior researcher with the Center and author of the report. New charges and changes to the way fees are calculated are adding to the balances of a growing number of cardholders. While some of the practices were instituted after the Credit CARD Act was approved in May, others were quietly being put in place earlier as a result of the recession. The one thing they have in common, says Frank, is that "none of them are explicitly prohibited by the Credit CARD Act."

Hidden rate changes
Consumers with fixed rate credit cards won't have to worry about interest rate changes to current balances if they pay on time, under the Credit CARD Act. The vast majority of cardholders, however, carry variable rate cards, in which the interest rate is determined by adding a fixed percentage to the rate of an index such as the prime rate. For them, things get a little murkier.

In the past, issuers would generally use the highest prime rate in a cardholders current billing cycle as the starting point for determining a credit cards rate for the month. However, a number of issuers have amended their terms this year so that they now can select the highest prime rate in the previous 90-day cycle, a move that costs consumers $720 million a year, the Center for Responsible Lending estimates. As a result, the interest rate paid by cardholders may not go down in a given month even if the prime rate goes down. "It's so hidden and obscure that it can't be interpreted as anything other than a way to extract money from people in ways they don't understand," says Frank.

Credit card issuers are going to more than ever try to find ways to make extra profits.
-- Joshua Franks
Center for Responsible Lending

Variable rate cardholders are also impacted by another pricing strategy, as many issuers have begun setting "floors" -- limits to how low a cardholders variable rate can go. While the rate will rise with the prime rate, it won't go any lower than the floor even if the prime rate goes beneath that point. As of December 2009, the prime rate is at the historically low level of 3.25 percent. But "if you get a card in the future and the prime rate is, say 6 percent, then you wouldn't get the benefits of a decrease in the rate that would likely occur," Frank says.

New and expanded fees
Changes to interest rate calculations aren't the only ways issuers are mounting charges on consumers. A number of fees have become more prevalent this year, according to the center's study.

* Minimum finance charges can be greater than the amount of interest owed. As a result, if a consumer owes only $0.50 in interest, he may have to pay $2 because that's the minimum interest fee.

* Card issuers charge late fees that vary according to the card balance, so those who owe the most pay the highest fees. "But right now almost nine out of 10 people are in the top late fee category," says Frank. Though issuers often tout the lowest late fees, "the average fee that people pay has gotten higher and higher."

* Cardholders who don't incur regular charges risk being hit with inactivity fees. This strategy is even applied to cardholders who've opted out of a change of terms to the account and can no longer charge new items. Although their inactivity is forced, they may end up paying an additional $36 per year.

* Foreign transaction fees, which cardholders pay when a currency exchange takes place, are nothing new. But this year, more card issuers redefined "foreign" more broadly to include any transaction that at any point touched a foreign bank, even if the exchange took place in U.S. dollars. Likewise, the fee has inched upward with a majority of issuers charging 3 percent in 2009, compared with 2 percent in 2004.

* Card issuers are also cashing in on cardholders' use of balance transfer offers and cash advances. Not only are the fees for these transactions rising, but many card issuers are implementing minimum charges and removing caps they once had in place to keep the costs from surpassing a certain level. For example, a card issuer may implement a 4 percent transaction fee on cash advances with a $20 minimum. If a cardholder borrows $100, the 4 percent transaction fee would be $4. However, because of the minimum rule, the cardholder would pay an additional $16.

An exercise of choice
Consumers have more control over some charges than others, such as the ability to use a card to avoid an inactivity fee, but they need to keep a close eye on credit card statements. "We are seeing a lot of changes in the agreements so it's something for people to be really aware of in the next three to six months," says Sarah Fouquart, a group manager with Troy, Mich.-based GreenPath Debt Solutions. Those who don't understand the changes should ask their issuers about them, Fouquart adds.

While many of the top credit card issuers are embracing these new fees, consumers might also look to smaller regional banks or credit unions to avoid paying some of these additional costs, suggests Frank. "Usually you'll find that these organizations care more about the relationship with the customer than making a quick profit on one product," Frank says.

New fees and charges are unlikely to disappear anytime soon, but consumers still have options. "There's no harm in shopping around a little bit," says Fouquart.

How to Improve your credit , the easy way...

While talking to a friend of mine about our credit score I found that even though she and her husband had always tried to keep their credit score in a higher bracket, they had dropped below what is considered "good" because of a late payment on some bills. It wasn't because they didn't have the money but because she was hospitalized and during this time the bills were forgotten. Even though they explained why the bills were late it still caused their credit score to drop. The credit score companies don't accept excuses.

So I suggested that they take out a small loan at their bank.
She cocked her head to one side, gave me a strange look, then asked, "Now why would we want to do that? We don't need a loan."

Okay I guess you are wondering why I said that too. Well let me explain...
When you borrow money from a bank and pay off the loan before it is due, they report your prompt payment and it raises your credit score.

But what if you don't have any money to spare and your bank wont give you a loan? Here is what you can do...

Borrow, beg or sell something worth at least $50, $100 if at all possible.
Open up a savings account with this money then use it as collateral to secure a loan from the bank. Either the same amount you have in the account or less. Never ask for a loan that is more than what you have in the account. Just before the payment on the loan is due you use the money in the savings account to pay it off. Do this at another bank, and another until your credit score reaches the excellent mark. No doubt you will now be able to secure a loan with almost any bank without any collateral, as long as it is a reasonable amount. Never take out a loan of any size if you can't make the payments on time.

Bail Out for Moms

New laws allow moms with over $9100 in credit card debt to remove up to 75% of it.
No hidden costs or fees!


LOWER YOUR MONTHLY PAYMENTS
UP TO 60% OF YOUR DEBT GONE

RELIEF FOR UNSECURED DEBT
NO HOME OWNERSHIP REQUIRED

GET DEBT FREE IN 12-36 MONTHS
AVOID BANKRUPTCY! ACT NOW!

http://debtbailouts.org/

House votes to accelerate credit card reform rules

As a credit card holder and user I think this should have been done at the time this bill was signed. The interest rate should have been frozen at the time lenders were notified of the passing of this bill. It seems it would be illegal to raise the interest on any paying customer, as it is much like "price gouging". These credit card lenders have been changing to higher interest rates even on the people who have never made a late payment. Is this the way to treat your paying customers? I think not! More people will be declaring bankruptcy to get out of paying their credit card debts. After all who wants to pay $400 or more for an item that sells for $80. Don't they realize there are other lenders who charge less interest on a loan? Seems as if these credit card lenders have become "Loan Sharks".

"Lawmakers say that many credit card companies have used the grace period to increase rates. According to a recent Pew study, even the lowest interest rates offered on most bank cards have jumped by more than 20% since last year.

"The same companies that were in my office that claimed they needed months at least to make changes to their systems, apparently only needed, in some cases, days to find ways to raise interest rates and decrease credit limits on customers across the country," said Rep. Dan Maffei, a New York Democrat.

Read more here: House Credit Card Reform Rules

Pre-Paid Credit Card

Before you think about getting and using a pre-paid credit card you should know what it may cost you. Check out the money you may lose when you use this type of credit card.

Student Credit Cards, Establishing Good Credit

How Can a College Student Establish Good Credit?

Establishing credit is usually easier than you think. First, we are assuming that you're a fresh college student looking for your first credit card. This is a great step to establishing credit But you should learn more about how they can work against you as well as how they can help you establish good credit.

Once you finally find that card you want and they approve you, make sure you don't rack up too much debt too quickly. This will raise a red flag and your credit may suffer. Sometimes students get in over their head and they're not able to make a payment. It's best if you keep a low balance and you will want to make your minimum payments on time each month, there's no exceptions to this. It's even better if you can make the full payment. This will prevent you from having to pay the interest credit card issuers charge. If you miss one payment, it can kill your FICO score!
And may even raise your interest rate.

Know how much you can pay each month before even applying for a card then stick with that amount. Being a responsible and sensible spender will help raise your credit score and your credit limit. Some students start with a pre paid card then switch to the "loan" card after they have worked out a budget to include a credit card payment. Try to never go over your allotted amount.

Don't fret if you get turned down on your first application, even people with established credit face rejection sometimes. Just apply again. There is more than one credit card issuer out there.

Don't know what credit card is best for you?
You can find the credit card that best fits your needs here...

Help Me choose the right Credit Card

What credit card can you get?

Before you apply for a Credit Card you should know your credit score.
This will help you in knowing which card you can get with the best APR.
Even if you do have to pay an annual fee it may be better than having to pay a high
interest rate. Knowing which card you can apply for will be a great help in your
decision.
What Credit Card can you get today?
Find out by clicking on your credit score.

*Excellent (750+)
*Good Credit (700-749)
*Fair Credit (650-699)
*Poor Credit (600-649)
*Bad Credit (Below 599)
*No Credit

Credit Cards and Credit Score

Tips to give your credit score an extra boost.

1. Keep the balances balanced
Maintaining a balance that's close to your limit could weigh down your credit score.
If you carry a balance on your credit card, you need to make sure the difference between your credit limit and your balance is 50 percent or less, so if your limit is $1,000, you need to keep your balance at $500 or less. Not using all of your credit is a signal to card companies that you're managing your credit properly. Keeping an even lower balance - 30 percent or less - will boost your score even more. Should your balance go over the 50 percent mark on one card, you need to focus any available financial resources on cutting the balance down, even if it means sacrificing a few daily luxuries until the credit's in check.

2. Eliminate the mistakes
One of the fastest ways to up your score is to make sure it's yours. According to a 2005 study by the Federal Trade Commission, an estimated 8.3 million Americans are victims of identity theft each year. Of those victims, 1.8 million have new credit cards, loans, or financial accounts opened in their name without their knowledge.

An easy way to prevent paying off debts you didn't incur is to keep tabs on your credit score through agencies like FreeCreditReport.com, which gives consumers one free credit report from each of the three major credit scoring agencies each year.

3. Diversify your credit
People don't realize that 10 percent of their credit score is determined by what types of credit you use.
That's determined not only by how you manage revolving debt like Visa, MasterCard, and store credit cards, but also how you handle fixed payments like your car payments or your mortgage payments over time.

Instead of putting long-term purchases on them try taking out short-term one to two-year loans in order to build a diversified credit portfolio. In addition to receiving lower interest rates and more flexible payment terms, consumers who use loans over cards also build positive credit and gain better credit terms in the future.

4. Nip it in the bud!
If you see trouble on the horizon, nip it in the bud! Making a late payment could affect you interest rate, not just on the card you're paying late on, but on all your credit cards. If you know you're going to have trouble making payments, get in touch with your lender and have a discussion about it. We are hearing more and more from our counselors that lenders are willing to look at whether you can put together a different payment plan. Since even one late payment could lower your credit score, preventing disaster before it happens can protect your credit for years to come.

Recent changes in credit card rates, fees and terms

Here are some of the recent changes in credit card rates and fees:

Straight rate increase
* CapitalOne increased interest rates to new customers on 15 cards in February. For example: the Platinum Prestige card increased from an APR of 7.15% to 11.9%; the No Hassle Miles Rewards card from 8.15% to 13.9%


Rate increases for segments of customers
* In June, Bank of America will increase interest rates up to the "low to mid-teens" for cardholders who carry a large balance with a current APR that is less than 10%.

* Discover has also notified a segment of customers of a rate increase in June.


Foreign transaction fees
* Starting May 1, Discover will charge a 2% foreign transaction fee.

* Several issuers (Bank of America, Citi, Simmons) will begin charging a 3% fee for all transactions made outside the US in US dollars. Previously, the fee was not added when foreign transactions were made in US dollars.


Fee increase for balance transfers
* In June, Bank of America will increase the fee for balance transfers from 3% to 4%. This increase will also apply to cash advances and ATM advances.

* Discover will also increase the balance transfer rate from 3% to 4%.


Change in terms
* In January, Chase added a $10 monthly fee and increased the minimum payment from 2% to 5% for those who have carried a large balance for over two years and have made little impact in what they paid off. The monthly fee was rescinded in March after substantial outcry from Chase customers.


"These published changes do not take into account the tremendous number of customers who have had their individual interest rate increased. In today's environment, if customers do anything that show they are a greater risk, they are extremely likely to see their interest rate increased and/or their credit limit decreased very quickly, maybe the next month," says Hardekopf. "This increased risk could come from missing a payment, being late on a payment, exceeding your credit limit or perhaps using too much of your credit limit. To minimize the chances of getting hit with a credit card rate increase, consumers need to make sure they pay all their bills on time, pay more than the minimum amount and not use more than one-third of their
available credit."

New Fee Added on Some Credit Cards

As we approach the enactment of the first phase of the Credit CARD Act next week, credit card issuers continue to make changes that could have a significant effect on consumers.

In September and October, some cardholders can expect more fee increases, some may lose reward points because of a late payment, and more cards will be introduced with high annual fees.

Be sure to check all correspondence that comes with your credit card bill to see what changes you can expect.

Credit Card Terms You should know.

Annual Fee
A yearly fee charged by some credit cards for use of their card.
Yes, sad as it may seem some credit cards charge an annual(yearly) fee. Each may be a different fee or in terms of 6 months, but most charge by the year. Fees can range from $25 and up. Try looking for a credit card that charges NO yearly fee.

APR (Annual Percentage Rate)
A periodic percentage rate that determines the finance charges you pay on your account. Not all credit cards charge an APR. The finance charge or interest on your credit card billing statement is conveyed two ways – as a periodic rate (monthly or daily) and as the annual percentage rate. To calculate your monthly rate you simply divide your annual percentage rate by 12. For example:

18% divided by 12 equals 1.5%.

To calculate the monthly finance charge using a monthly periodic rate, multiply the Average Daily Balance x Monthly Periodic Rate = Monthly Finance Charge.

For example, if $200 is your account balance then: $200 x 1.5% = $3.00.

Some cards have a daily periodic rate. To get the daily periodic rate, you divide the APR by the number of days in the year (365).

For example, 18% divided by 365 days in the year equals .05%.
Look for a credit card that does NOT charge an APR.


Balance Transfer
Moving an unpaid balance from one open credit account to another.
You will save money if you transfer balances to a credit account with a lower interest rate. You may want to take advantage of the NO FEE transfer, NO INTEREST for X amount of months to pay off your high interest cards. See this post Stop Paying Credit Card Interest

Billing Cycle
The length of time between your statements.
Most billing cycles are approximately one month in length, or 28 to 30 days

Card-member Agreement
A written document that provides details of your agreement with the credit card issuer.
This should be read and understood before you use any credit card. If you do not agree with their terms, send the credit card back and explain why you do not want to use their services.

Cash Advance
Using your credit card to get cash from a bank, ATM, or by writing a convenience check.
Typically, the card issuer charges a cash advance fee for the transaction and begins charging interest immediately.
Avoid this if at all possible. Check to see if you can borrow needed money from your bank or a friend at a lower interest rate.

Charge Card
A specific kind of card that requires full payment of your balance with each billing cycle.
Typically charge cards do not charge interest, but late fees can apply if full payment is not received by the due date.

CID (Card Identification Number)
The CID is the three-digit number at the far right on the back of your credit card, it is also called a card verification code number.
Merchants may ask for the CID to verify that you have the card in your possession at the time you make a transaction. When using a Secure Online Account Number, please use the three-digit CID generated for that secure account number.




Credit Limit
The maximum amount that you can charge on your credit card.

Credit Report
A report about your credit history that lenders (credit card companies, mortgage companies, loan agents,etc.) consult to determine if and how much money they should lend to you.
This is your history of making timely payments, any outstanding debt and open lines of credit which are all shown on your credit report.
Your credit report is available from credit bureaus such as Equifax, Experian and TransUnion. You can get 1 free report yearly. You will get points deducted from your credit score for each inquiry made into your report. So when looking to purchase any high priced item such as a car take your report with you and tell them you are only looking and ask them to NOT make an inquiry until you have decided on which car you want. If they refuse to take your report go somewhere else...There is always another dealership just down the road who will deal on your terms.

Debit Card
A card issued by a bank that directly accesses available funds from a bank account, typically a savings or checking account.
But remember there is a charge if you spend more than what is in your account or you may get turned down on your purchase right then and there. To avoid an overdraft check to see how much you have in your account. Remember it takes 3 to 5 days for a check that is deposited into your account to clear so that money wont be spendable until then.

Default
When a customer doesn’t make a required payment to a credit card account, or otherwise violates the terms of the agreement between the credit card company and the customer.
This will cause another fee to be added to your card along with interest. Call your Credit Card supplier(or bank) if you can not make your minimum payment. Most suppliers or banks will try to work something out that will be better for you and your budget.

Finance Charges
Certain charges that can be incurred when using a credit card.
Finance charges include interest costs.

Grace Period
A period of days between the transaction date and the billing date when a transaction can be paid off without incurring an interest charge.

Interest Rate
The rate at which a credit card company or other lender charges a customer for “borrowing” money.
It is a percentage of the amount borrowed.
Your credit card is like a loan company they lend you the money to purchase an item then charge you a monthly interest on the unpaid balance. So paying it off as fast as you can saves you money, otherwise that $100 item may end up costing you $400 or more. It may be time to do a NO FEE, INTREST FREE transfer. See post at How to Stop Paying Credit Card Interest

Introductory Rate
A lower APR provided by a credit card company for a limited period of time.
Be sure to read the terms of agreement. This may sound great today but have dire consequences tomorrow.

Late Payment Fee
A fee charged when a payment has not been received by the specified due date.

Minimum Payment
The smallest payment a customer can make each statement period to keep the account in good standing.
This amount is how the credit card issuers keep you in debt.
If at all possible pay more than the minimum payment to get the balance paid off faster. Less interest paid means more money saved to you.

Penalty Rate
A higher APR the credit card company charges after the customer has made late payments, exceeded their credit limit, or otherwise did not abide by the Card-member Agreement. Eventually your interest, plus your penalty, plus your monthly payment will get so high you will owe more than what your payments can cover and instead of going down, more will be added and your balance will increase every month. Avoid having a penalty rate added to your account even if you have to sell something or get a small loan to avoid this penalty rate. This will go on your credit report.

PIN (Personal Identification Number)
A security code that the customer uses with debit and credit cards to authorize transactions such as cash advances. This PIN is different from the user ID and password customers use to access account information online.

Pre-Approved
A potential customer who has passed an initial credit bureau evaluation.

Prime Rate
An index rate that determines the interest rate a bank will charge customers. It is one way that a credit card company determines APRs.

Zero Balance
When your billing statement shows no outstanding balance and no new charges have been incurred.
Just because you no longer owe a balance, don't close the account.
This will help raise your credit score. You should keep any open account active by making a few charges each month. The secret to getting and keeping a high credit score is to make sure you pay the balance before they can add any interest. So use your credit cards responsibly and learn how to make money when you use them. Isn't it time you got paid for using their services? Read the article below to find out how.

Make money when using your credit cards

Most people see credit cards as a debt to be paid every month while some of us view them as a means to make money.

The Benefits of Cash Back Credit Cards

Cash back credit cards pay you a percentage rebate on the money you spend on the card.

Many cash back cards offer as high as a 5% cash back on purchases at supermarkets, drug stores, and gas stations, and 1% on all others. Other credit cards with cash back offers give 5% rebates on expenditures for auto repair, apparel, home improvement stores, and more. You decide which one would be the best for you by looking at your past bills. Then pick one that is best suited for making you the most money. I reccommend the first listed here because we tend to spend more on food, gas and drugs than on car repairs or home improvement.

A 5% cash back is equivalent to a 5% discount on your purchases. If you use a cash back credit card for most of your purchases and routine expenditures, that can turn into significant savings over the course of the year. To maximize earnings, many people like to get additional cards for family members, so that they receive cash back on all household expenditures.

In some cases, you wont earn the full cash back on your charges until after a certain amount of expenditures. Other cards put a limit on the maximum earnings you can accumulate in a year. The rewards on your cash back credit card may also expire after a certain number of months, or if you don't use your card for a period of time. Keep your Credit Card active even if your purchase is in a small amount. The way your earnings are redeemed also varies from card to card. Read the terms of the card you apply for and make a note of the most important points, so you can follow up as needed.

Cash back credit cards are most profitable if you pay your card balance in full every month. If you intend to keep a balance on your card, you might prefer instead to find one that offers a low interest rate.

The secret is to only use your credit card for purchas you would normally pay cash for or for purchases you would use your bank debit card for. Be sure to put this money aside so you will have it to make your monthly payment. This will add up to quite a bit over a period of 12 months.