More late with credit payments

WASHINGTON — Late payments on credit card bills edged up this past spring, when high energy prices were squeezing the finances of some people and making it hard to pay bills on time.

The American Bankers Association, in its quarterly survey of consumer loans, reported Wednesday that the percentage of credit card payments 30 or more days past due increased to 4.41 percent in the April-to-June quarter, up slightly from 4.40 percent during the January-March period.

"High gas prices and Federal Reserve interest-rate hikes have left consumers with less money in their pockets.

As a consequence, consumers have less money left over to meet all their expenses, including paying back their loans," said James Chessen, the association's chief economist, in explaining the increase in late payments in the second quarter.

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Persistence can yield lower credit card interest rates

Your credit card company won't tell you this, but it's easier to get a lower interest rate on your card than you might think. You just have to ask for it.

Know the rate you currently pay on your credit card balance.

Research which cards offer better rates. Look for zero percent balance transfers and no annual fees. CardWeb.com, an independent credit card databank, is a good start.

Read more at: Persistence can yield lower credit card interest rates

Get your credit card debt under control

With the use of credit cards increasing everyday and many people using credit cards to pay for smaller items on a day-to-day basis, many consumers are under threat of getting further into a debt nightmare.

The other day, while queuing in my local newsagent, I noticed someone in front of me paying for their newspaper. Even though the purchase only came to £0.95, a credit card was used.

Now even with the use of Chip and Pin at credit card terminals in place throughout the country and in turn reducing the wait times at points of sales, the time taken was considerably more than simply handing over a £1 coin.

Read more at: Get your credit card debt under control

The Perils of Credit Card Balance Transfers

For people who could not seem to manage their finances, they end up getting into debts. This is especially true to those who have accumulated too many debts that they can no longer handle the problems anymore.

In reality, 81% of the households in the U.S. today have at least one credit card. But sad to say, out of this percentage, it was reported that the average credit card balance that they accumulate is $8, 387.

The point here is that if these people will not trim down the balances that they accumulate on their credit cards, chances are, they will really get into bigger trouble.

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Beware Of These 0% Card Tricks!

When is interest-free credit not interest free? When you're forced to pay fees (and, amazingly, even interest) for the privilege of borrowing money at 0% for an extended period!

Millions of borrowers have made use of 0% balance transfers since they were introduced by online bank Egg on Christmas Day, 2000.

By transferring your existing credit-card debts to a 0% credit card, you can enjoy a break from interest lasting up to a year.

Naturally, British borrowers would much rather pay no interest than the annual rate of 16% charged by a typical credit card, so the balance-transfer market is booming.

Read more at: Beware Of These 0% Card Tricks!

Visa named World's leading credit card

VISA has been named as the "World's Leading Credit Card" for the ninth consecutive year by the World Travel Awards, which acknowledges achievements in all areas of the travel and tourism industry.

In a statement on Sept 28, Visa International executive vice president, global marketing partnerships and sponsorships, Tom Shepard, said: “Visa continues to grow with the travel industry, working with merchants by providing merchants with access to millions of Visa cardholders and providing cardholders with unsurpassed acceptance worldwide."

Read more at: Visa named World's leading credit card

Pay your credit card bill by text

Financial company Mint today launched an new service allowing customers to pay their credit card bills via text message.

The firm said its new system would offer account holders a quicker and more convenient way of paying their bills without having to log on or pick up the phone.

It is the first time in the UK that customers will be able to pay using text, although other banks offer existing services for checking balances.

A YouGov survey of 2,201 people, commissioned by Mint, revealed 27% said they were too busy to deal with bills by traditional methods.

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CIMB-MAS co-branded credit card

KUALA LUMPUR: CIMB Group and Malaysia Airlines plan to launch a co-branded credit card, CIMB Enrich, later this year.

The card is MAS' first venture into cobranded credit cards.

“The co-branded card will offer a strong customer value proposition alternative for MAS' 600,000 Enrich members in Malaysia,'' CIMB said in a statement.

“CIMB Enrich will also seek to tap new members from frequent travelling Malaysians.''

CIMB Group chief executive officer Datuk Nazir Razak said: “The MAS and CIMB Bank co-branded card is a big leap forward in strengthening our value proposition to customers.

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Credit Card Companies Pledge to Help Fight Child Pornography

WASHINGTON — Executives from credit card companies, including Visa, MasterCard and American Express, told a Congressional panel Thursday that they were determined to eliminate the use of their services in the Internet child pornography business.

But they also said it was difficult to keep pace with those who seek to exploit children on the Web and called for broad collaboration among those in the financial services industry and law enforcement authorities around the world.

“Child pornography is a global problem in need of a coordinated response,” said Mark MacCarthy, a senior vice president for public policy for Visa U.S.A.

Mr. MacCarthy said that by working together with other financial services companies, the industry could “enhance our efforts to identify Web sites and pinpoint merchants that are trafficking in this illicit activity, cut them off from use of our network and provide assistance to law enforcement to put them in jail and shut them down for good.”

“The way forward lies in collective action,” he said.

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Banks 'oblivious' to credit card compliance mandate

Widespread confusion in Australia's banking industry about new compliance measures has led to five breaches of the Payment Card Industry (PCI) data security standard.

Visa and MasterCard led the instigation of the mandate, which is already more than a year old, but awareness of the PIC standard in Australia remains extremely low.

Version 1.1 of the standard, the rules of which are aimed at protecting credit card data via encryption, end-user access and handling procedures, was introduced on September 7, 2006.

But because it was a US-led standard, there has been confusion about local compliance requirements, although Visa confirmed last week that it has been officially mandated in Australia.

Visa Australia and New Zealand risk manager Ian McKindley said banks and merchants are largely ignorant of PCI requirements despite extensive campaigning.

"Awareness of PCI in Australia is far lower than we would have hoped [despite] a series of seminars being held in [both countries]; we also posted more than 300,000 fliers to merchants earlier this year," McKindley said.

Read more at: Banks 'oblivious' to credit card compliance mandate

Warning of credit card currency rip-off abroad

CONSUMERS are being fleeced when they use their credit cards in places like the United States or Britain, the Financial Regulator warned yesterday.

Shops, hotels and restaurants in non-euro countries like Britain are offering Irish tourists the chance to pay in euro on their cards — but are charging a premium.

Now the Financial Regulator says customers could get a better deal by paying in the local currency instead even with the 1.75% transaction fee charged by credit card companies.

Financial Regulator spokesman Jill Forde said: “Often shops and hotels will have their own currency conversion rate, which can be less favourable than the ones charged by the credit card companies.

“Consumers should always check which currency they are paying in ... [and] must do a bit of quick arithmetic ... to see if it would be cheaper to pay in local currency. It generally is.”

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10 Ways the Credit Card Firms try to Increase Your Debt

CREDIT card companies want your cash - and they're using every trick in the book to get it.

They're about to become even more inventive - not to say downright devious - now they've been forced to slash their rip-off penalty charges.

The Office of Fair Trading's decision to force them to cut default charges from £30 to £12 will cost banks around £300million a year.

And they are already looking for ways to claw that money back from you.

Free balance transfer deals, for example, are already becoming scarce. But the card sharks have a whole host of tricks and ploys to persuade us to spend more and use our cards more often.

We've rounded up 10 sneaky ways they encourage us to increase our debts...

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Credit card advice will help students cut debt

PICK a card - and that's not the opening line of a trick if you are a student looking for credit.

But it's a decision that can have a massive impact on any debt that builds up.

Student debt is becoming such a worry that a support service for those who have credit cards is being launched.

The Association for Payment and Clearing Services, which governs how credit cards are used in Britain, has responded to inquiries from undergraduates and its own research to create an online guide to student plastic and responsible borrowing.

Sandra Quinn, director of communications at Apacs, said: "Most students expect to be in debt when they graduate and while it might be impossible to avoid student loan debt, getting a handle on managing your finances can make the world of difference.

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Avoid Credit Card Late Fees!

Late payments can turn an otherwise normal credit card balance into an unbearable burden. Some credit cards charge incredibly high amounts as punitive fees when you fail to pay on time.

Thus, you should avoid such situations as the road to bankruptcy is a one way path and late payments are the first steps.

You may think it somewhat overstated but the truth is that most people who end up defaulting and ruining their credit score for many years start by missing payments and paying late.

Fees pill up, interest rates grow and before you know you can’t even pay the minimum. Believe me when I say, if action is not taken, that’s the beginning of the end.

The advice would be then: Avoid paying late and NEVER miss a payment. If your financial situation is complicated you may find the following guidelines useful to avoid penalties and bad notes on your credit report that may compromise your ability to get finance in the future:

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Credit Card Finance Charges Defined

Finance charges are what consumers must pay in order to carry a balance between billing cycles. The exact amount will be a function of your interest rate and other mitigating factors, such as the methods in which the card is used.

Remember interest rates vary depending on if you are making a purchase, taking a cash advance, making a balance transfer, and so on.

There is no doubt that credit cards are confusing. There can be fees within fees, several ways to calculate interest, and grace periods for purchases that many are unable to understand.

Regardless, it is the responsibility of the consumer to make sure their statement is accurate each month, or it is possible that they could be paying too much.

One important aspect of any credit card agreement that needs to be understood is how interest charges are calculated.

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The world's most dangerous credit card - flexible foe or friend in time of need?

Beware the credit cards that charge outrageous interest rates, that charge you interest on interest, offer no interest-free periods, dangle expensive credit card cheques in front of you, require minimal (2%?) monthly repayments and extend your credit limit every time you get close to busting it - they may be flexible but they're not your friends!

How about a credit card with an interest rate of 49.9% APR, no interest-free period and a credit limit of as little as £250? It gets worse: default charges of £20 for missed or late payments, even after the Office of Fair Trading (OFT) has declared that there needs to be a good reason for charging anything over £12? Could this be the worst credit card in the country?

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New Card From Chase Offers Rewards Without Penalties

BOSTON -- Chase Bank on Monday launched its new Chase Freedom credit card. The card lets holders change how they would like to receive their rewards, whether as cash or as points that can be used to purchase special offers, without penalties.

The card also has no annual fee and an introductory 0% interest rate for the first 12 months.

The new card is being supported with an integrated marketing and advertising campaign, including print ads in major publications, and an ad by McGarry Bowen, New York that can be seen both in broadcast and online and features a remix of The Rolling Stones’ song “I’m Free.”

Read more at: New Card From Chase Offers Rewards Without Penalties

6 Steps to Begin Digging Out of Credit Card Debt

Imagine this hypothetical tale of financial folly: A woman gets to the checkout at the grocery store and realizes her checking account doesn't have enough money to cover that month's bill. She then pulls out her charge card and tells herself she'll pay it off next month.

But not only is she unable to pay off the groceries, an unexpected medical issue leads her to charge another month's groceries, plus the emergency room fee not covered by her insurance.

With higher rent payments and utility costs climbing, her "standard of living" raise does not cover costs of living. The credit card finance charges begin to mount.

The next month, she scrapes together her payment - but it's late, and her credit card company raises her interest rates to the delinquent limit of more than 25 percent annually.

Her minimum payment goes up again, and after a car repair, she's accumulated a balance of several thousand dollars - and can't pay more than the minimum payment.

Like many American consumers, our heroine is in debt over her head. Worst of all, it piled up without her making a conscious decision about it. She feels helpless and trapped.

Read more at: 6 Steps to Begin Digging Out of Credit Card Debt

Debit or credit? It depends on what you're doing

The debit card that also acts as a credit card can sometimes be a bit confusing to the consumer, who may wonder which feature to use.

A family economics expert with the University of Idaho Extension office suggests using a debit card only for small items or for routine items, like gasoline or groceries, that you know you won't be returning.

People should use credit cards for large-ticket purchases and for merchandise bought on the Internet or by phone.

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BofA may expand card unit in Europe

Bank of America Corp. could open credit-card businesses in Portugal and Italy next year, expanding its European credit-card division from the United Kingdom, Ireland and Spain.

In a recent interview with the Observer, division President Lance Weaver said the company is exploring operations in the two countries, though no final decision has been made.

Weaver also said the division will continue as MBNA Europe, rather than converting to the Bank of America brand.

The Charlotte company's symbol is a stylized version of the American flag, colored red, white and blue. In Europe, the bank will use only a single color -- leaving a symbol that more resembles a square of parquet flooring.

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Downpayment on a Credit Card? Hey, Why Not?

Can you imagine charging the entire downpayment on your new home to a credit card -- even if it’s hundreds of thousands of dollars?

As of last week, the answer became yes for condominium unit buyers at the 46-story, 478-unit Atelier condominium development on Manhattan’s West Side -- as long as they charged the full amounts to their American Express cards.

The Atelier, developed by The Moinian Group, a major commercial and residential real estate firm, is the first project in the country to allow purchasers to put their downpayments on a credit card. But American Express told Realty Times last week that "plastic" downpayments may become a lot more commonplace for high-end condo buyers. The company confirms that it is in active discussions with realty developers in several other cities to offer similar Amex downpayment programs.

Continue reading at: Downpayment on a Credit Card?

Bank of America bets on 2007 China card venture

SINGAPORE - Bank of America (BAC.N: Quote, Profile, Research) plans to issue a joint Chinese credit card with partner China Construction Bank (0939.HK: Quote, Profile, Research) next year, part of an Asian expansion plan that will increase its regional staff by up to 20 percent in the next two years.

The No. 2 U.S. lender, which is planning a slow but steady entry to the region's roaring equity underwriting and M&A businesses, will join rivals Citigroup (C.N: Quote, Profile, Research) and HSBC (HSBA.L: Quote, Profile, Research) in the fast-growing but highly competitive Chinese cards market.

"I'd be disappointed if we didn't have something up and running sometime next year," Chief Executive Ken Lewis told Reuters on Sunday in an interview at its regional headquarters in Singapore.

Continue reading at: Bank of America bets on 2007 China card venture

Credit-card `protection' plans not worth it

NEW YORK - It seems as if you can't talk to the folks at your credit-card company lately without fielding an offer to enroll in ``credit card protection insurance'' or something similar.

If you say on the phone you're not interested, you're likely to continue receiving offers in the mail for this service, which is also dubbed a ``credit shield,'' ``payment protection'' or credit ``safeguard.''

Such services offer you supposed peace of mind in case you are laid off or become hospitalized or disabled and can't make your monthly payments.

Continue reading at: Credit-card `protection' plans not worth it

Student Debt Consolidation

There's been a lot of talk lately about increasing levels of student debt. With the pressure coming from all angles, only a student knows how hard the life of a student is.

Money is an integral part of everybody and the students are no exception. There can be times when the pocket is a little tight.

In these circumstances, students may have to borrow money from various sources and eventually land up in such a situation where they find themselves in pressure of paying interests for their loans.

In such a situation, the best option is to opt for a student debt consolidation loan.

Read more at: Student Debt Consolidation

How To Get Your Credit Card Payments Under Control

Credit cards can be a nice convenience but they can also get you into a lot of trouble. If you have charged your cards up to the limit and are now having a hard time paying the bills you are not alone.

Statistics show that the average credit card debt for each household in the U.S. is $4,800 per month. Also, there were 1.3 million credit card holders declaring bankruptcy in the year 2003.

There are a couple of things you can do to help yourself get out of debt. The first thing, of course, is to stop using your credit cards! If you can't control your spending, then cut them up or put them away somewhere where they are not easy to get to.

Of course, it is a good idea to carry one with you in case of emergency, but if that means you will use it to ruin your credit it may not be worth it!

Read more at: How To Get Your Credit Card Payments Under Control

It's Your Money: Debt Consolidation

At first glance, debt consolidation looks like a great quick fix for people who owe a lot of money.

They get their outstanding bills bundled into one, making it easier to pay... often with a lower monthly payment.

"Debt consolidation can allow someone to pay all of their bills on time by reducing the amount of cash flow to bills, even though, in the long run, it'll usually mean repaying more debt, it still may help a family avoid numerous problems in the short run," says UW Extension Financial Specialist Michael Gutter.

But, Gutter is quick to point out the long-term repercussions of consolidation loans. He mentioned that you usually end up paying more money; lower monthly payments, but for a longer period of time. What's more, the only way debt consolidation will get you out of debt is if you stop buying on credit while you pay off the balance.

Read more at: It's Your Money: Debt Consolidation

Credit Card A Weapon For Terrorists?

Have you checked your credit card statement lately? What if you found charges for five commercial flights -- even though you never booked them?

That's what happened to Australian businessman Arman Hicks, who says if it can happen to him, it can happen to anybody. Hicks tells the Australian Broadcasting Corporation (ABC for this story) that whoever charged the flights to his card used the tickets before he got his statement and realized he'd been defrauded.

Hicks told ABC, "They traveled between all sorts of places - between Albury and Melbourne, and Melbourne and Cairns, and some Sydney-Melbourne flights as well. They traveled within hours of purchasing the tickets"

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Your credit card number could show up in cyberspace

Likelihood of personal data theft grows with use of Internet

Ever try Googling your name just to see what comes up?

The sister of a Post-Gazette reporter recently plugged her name into the ubiquitous search engine and was stunned when up popped a file with her credit card number.

No hacking involved. Just a simple Google search and there it was -- her 16-digit Visa number. The file also contained the names, addresses and credit card numbers of about 140 other people.

"There is no doubt in my mind that somebody either stole these numbers or bought them from someone who stole them, and intends to use them in an illicit way," Pittsburgh cyber-security expert Jason Thomas said after reviewing the file.

Read more at: Your credit card number could show up in cyberspace

You Too Can Owe $100,000 on Credit Cards

According to CardWeb.com, the average household with credit card debt owes in the neighborhood of $9,000.

That can seem pretty high -- unless you're among the many people who owe much more than that. (Remember that $9,000 is an average. There are gobs of people who owe nothing and gobs who owe much more.)

On our Credit Card Debt discussion board, I recently ran into a reminder of just how deep in debt some of us are. Fool Community member Ccharlan shared his recent credit card debt balances:

* January, 2002: Lowest, $67,500
* December, 2005: Highest, $100,821
* August, 2006: Current, $93,400

Read more at: You Too Can Owe $100,000 on Credit Cards

Barclays to issue Travelocity credit card

Travelocity, the Texas-based online travel service, has picked Barclays Bank Delaware, of Wilmington, to issue a new MasterCard offering discount points on "any airline, hotel, car rental or flight and hotel package on Travelocity."

The Travelocity Rewards MasterCard is an attempt by the bank and the travel service to break into a national credit card market dominated by a handful of frequent-flier cards run by partnerships such as those between JPMorgan Chase and US Airways or American Express and Delta Air Lines.

Read more at: Barclays to issue Travelocity credit card

Top Credit Card Pitfalls to Avoid

Forget the stock market! Your best investment is to lower your credit card interest rate and pay off the balance

By Suze Orman

It sure isn't easy making a buck these days. The stock market isn't delivering returns to brag about.

And in today's tight job market I don't see too many bosses who look like they're about to back up the armored truck and start handing out raises.

But I have a surefire way for many of you to make a guaranteed 18 percent.

If you are one of the millions of Americans who carry a balance on your credit card, you can give yourself a great investment return by paying off that balance.

Read more at: Top Credit Card Pitfalls to Avoid

Seniors can avoid getting into credit-card debt

As if seniors didn’t have enough to worry about, the average credit-card debt for consumers ages 65 to 69 skyrocketed more than 200 percent from 1992 to 2001.

It now tips the scales at nearly $6,000, according to stats compiled for a recent National Consumer Law Center report. The debt is taking a toll, with almost one-third of retirees describing it as a “hardship,” notes the report.

“Older consumers still have less credit card debt than younger consumers,” says Deanne Loonin, the report’s principal author and a NCLC staff attorney. But they are catching up, and the consequences are greater.

Read More At: Seniors can avoid getting into credit-card debt

The UK's £9bn credit card holiday hangover

UK residents spent some £9 billion on credit cards while overseas this summer, new figures reveal.

But without prompt action this spending can rapidly turn into an expensive problem.

Data from comparison site Moneysupermarket.com shows that before the end of the year, this holiday spending will have earned £550 million in interest.

Most UK residents (57 per cent) used a credit card to fund at least part of their time overseas this summer, running up an average bill of £799. However, one Briton in 11 spent more than £1,000 and another one in 20 spent in excess of £2,000.

Read More At: Credit Card Holiday Hangover

Red alert over London on credit card fraud map

London is the UK capital of credit card fraud, according to a study by online fraud prevention firm Early Warning.

Early Warning's latest figures for Cardholder Not Present (CNP) fraud show that Greater London clocked up largest number of fraudulent transactions in the past year, followed by Manchester and Kilmarnock.

Early Warning has produced a map that identifies the postcode areas from which the fraudsters operate, put together by tracking the delivery addresses for fraudulently obtained goods – typically accommodation addresses and "dead letter boxes".

Read more at: Credit Card Fraud

UK Credit Card - Choosing the Right Credit Card if you live in the United Kingdom

Credit card companies are all over the world and so are credit cards.

Some of the credit card companies only offer cards to a specific country or region that they are in.

If you live in the United Kingdom, then you might need some information about UK credit cards that are available for you.

Credit cards that you get in the UK are not any different from any other credit cards.

The credit card companies offer special incentives to get customers like 0% APR for a specific time period, no annual fees, and you may even be able to apply for the credit cards online.

Read more at: UK Credit Card

Consolidate Credit Card Debt - The Worst Debt To Have Hanging Over Your Head

Credit card debt is a major cause of over one million bankruptcies each year. The reason is that many people get a credit card without researching and reading the fine print.

By the time annual fees are added on, along with spending indiscriminately, payments are missed, which causes their balance to skyrocket.

Although we all like to place the blame on the credit cards and the credit card companies, you need to keep in mind that the real cause of your financial mess is you.

Read more at: Consolidate Credit Card Debt

Credit Card Application - Apply For A Credit Card Tips

Filling out a credit card application is similar to filling out a job application. Most people needs some tips to ensure that their chances of getting approved is higher.

Below are several useful tips for you before you apply for a credit card.

If you have bad credit, then it may be a little bit more difficult to obtain a credit card compared to if you have good credit.

Do not give up though, because there are hundreds of companies out there that offer credit cards for people with bad credit.

If you take the time to research and shop around, you will find the credit card that is just right for you.

Read more at: Credit Card Application

Usage of Credit Card

Credit cards can be used as a form of identification when applying for a major purchase, or when renting a car; and they can be used for convenient purchases that you won’t have to pay for until a month after you buy them.

Except, that’s not how it usually happens. Typically, people who have an abundance of credit cards use them frequently, and have to carry a balance from one month to the next because they are unable to pay each card off in full when the bills come in.

So what happens then? Credit card holders are being charged high interest rates for each of their purchases, sometimes up to 24%! Credit cards are habit forming. It is very easy to pull out a piece of plastic, swipe it through the register and buy something you couldn’t afford otherwise.

It’s tempting to think that the money will come later, and you’ll pay for it then. More often than not, the bills are more than the money you have later to pay them with. A study in 1999 showed that consumers in America used credit cards to charge over $1.2 trillion.

Read more at: Credit Card Usage Explained