This credit card might be too secure for you

I've been checking out a new high-tech credit card that reminds me of a security lesson I learned years ago.

Soon after I started a tech reporting job at the San Jose Mercury News in 1999, I was lucky enough to land a cubicle next to a guy named David L. Wilson.

Dave, who covered the Microsoft anti-trust trial, was a geek's geek and a treasure trove of information.

One of the things he explained to me early on was a basic concept in security — something called three-factor authentication.

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The Credit Card Trap

A perennial topic in personal finance circles is the inability of American consumers to manage their credit cards.

Too many of us assume that we're doing just fine as long as we're making that minimum payment each month. In fact, we are doing just fine -- fine for the credit card companies.

Have you ever stopped to examine what paying the minimum each month does to your total repayment? Let's start with a few assumptions.

Some studies place the average American credit card debt at approximately $5,000. A nice round number, so let's use it for our example.

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In Credit Card Rates, Trust but Verify

ONE thing I take pride in — actually I cling to desperately as proof that I can manage our finances — is that we pay our credit card bill in full every month.

That’s why I was shocked last month to discover that I had put the bill away in its little “to pay later” place, and then forgot it.

I was even more shocked when I saw the $39 late fee and $70.88 finance charge on our October bill.

Our card issuer, Citibank, agreed to waive the late fee (always a good idea to call and ask), but I was still on the hook for the finance charge.

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Credit card companies target students

University of Pittsburgh sophomore Ryan Kavcsak was annoyed by the repeated phone calls during his freshman year from companies urging him to apply for a credit card.

"They would call and ask for personal information, how old I was, stuff about my parents, where I live. My friends would get calls. I ended up hanging up on them," Kavcsak, 19, said.

Kavcsak is not alone. Credit card companies are increasingly making their pitches on college campuses, targeting a group some say is inexperienced on credit management and debt, according to a recent USA Today survey.

While some states and schools have moved to limit companies' access to campuses, many schools, including the University of Pittsburgh, are working with credit card firms and some are making money from the arrangements.

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Credit cards should carry 'cigarette pack-style warnings'

Credit cards should carry cigarette pack-style warnings about their high repayment costs, a former banking chief said today.

Jim Spowart, who set up the internet bank Intelligent Finance, has argued all cards which have interest rates higher than 10% above the Bank of England's base lending rate should come with advice labels.

He has written to Chancellor Gordon Brown about his proposal, saying shoppers deserve better protection from credit firms' "greed".

Mr Spowart said that while the cost of personal loans has come down significantly and some are available at 5.8%, credit cards have remained an easy "cash cow" for banks and lenders with the average being 15.9%.

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'Sir, do you need a new credit card?'

How many times have you heard that and wished you could put this incessant mobile spamming to end?

It is 11 in the morning and your phone is ringing incessantly. When it rings for the third time, you excuse yourself from the meeting, get a raised eyebrow from your senior, only to hear, "Sir, I am calling from XYZ Bank. Do you need a personal loan?"

Sunday afternoon and after finishing all the work that had piled up during the week, you are enjoying your well-earned afternoon siesta. But the bliss cannot last. The phone rings and, "Your car's insurance is due, would you want to avail the services of our insurance company?"

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Bills.com Offers Crash Course in Credit Scores

Six ways to understand and improve your money’s most important number.

San Mateo, CA (PRWEB) October 4, 2006 -- Late-night TV and Internet ad banners feature a confused customer trying to understand his or her credit score, intended to rouse viewers’ curiosity about their own credit.

Most of these advertisers make money by charging people to provide their credit score -- but any consumer can obtain and understand the scores for free, said Andrew Housser, co-CEO of Bills.com.

“The terms ‘credit score,’ ‘credit rating’ and ‘FICO score’ are often used interchangeably,” said Housser. “This is basically correct. FICO simply refers to Fair Isaac Corporation, the company that originally developed a ‘score’ method of rating consumers’ credit histories.”

The three major credit reporting agencies -- Equifax, Experian and TransUnion -- each report their own credit scores, based on running information they have collected through the Fair Isaac scoring formula, Housser said.

He explained that credit scores are calculated using mathematical methods. They incorporate credit history, amount of credit available and used, number of late and on-time payments, and whether any payments due are in default.

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Malaysians worry over ID fraud

KUALA LUMPUR: Malaysians are most concerned about identity and credit card fraud, the recent Unisys Security Index revealed.

The survey reported that 77% of Malaysians worried about having their personal information stolen or misused while 76% were afraid that their credit or debit card details might fall into the wrong hands.

Other top concerns include the outbreak of serious epidemics in Malaysia (73%) and the country’s national security in relation to war and terrorism (70%).

Malaysians, however, are less concerned about their ability to meet financial obligations (48%), e-mail security and viruses (44%) and online banking and shopping (40%).

Conducted by Synovate on behalf of Unisys, the survey is meant to provide a snapshot of the nation’s sense of security in four areas – national, financial, Internet and personal.

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Credit Card Basics – Understanding Five Main Credit Card Terms

Credit cards are easy, right? You have a credit limit. As long as your balance isn't as high as your credit limit, you can pay for things with your credit card.

When you pay for something with your credit card, you don't have to pay for it until later. You pay interest on your credit card balance and as long as you don't go over your credit limit, everything's fine.

Well, not quite. Here are some of the most frequently asked questions about credit cards - and their answers, of course.

What's interest?

In a nutshell, interest is money that you pay a lender for the privilege of using HIS money to buy something.

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College students are a 'prime target' for credit-card companies

Each fall, concerns about young adults falling prey to aggressive credit-card marketing resurface as 17 million college students flock to campuses across the United States.

Nearly a dozen states have made it more difficult for card companies to market on public campuses, and a growing number of colleges, on their own, have begun to impose restrictions.

But these steps belie a stark reality: Credit-card marketers are as aggressive as ever about reaching students. Some solicit students, by phone or e-mail, and flood their mailboxes with credit-card applications.

Other marketers set up tables around heavily trafficked campus areas, hawking free sandwiches or pizzas to hungry students to get them to sign up for a credit card.

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American Visa credit card holders, you may be innocent fraudsters!

American holders of Visa credit cards, are being subject to intense security protocol in order to eliminate fraud in Southeast Asia, even in Hong Kong, confirms a Chase Manhattan credit card customer service rep.

I tried my best. I confess that after living in Asia for four years, I have kept my American credit cards working, in order to keep my credit ratings intact and in order to maintain some flexibility in my payment options. But today I finally found my tipping point. I have given up using my American credit card.

From now on, if I want to use my Chase Manhattan Visa card, I have to first call the company, tell them what I am going to buy, tell them how much it may cost, and get their assurances that I am not a reckless criminal bent on defrauding Visa of thousands of Hong Kong dollars, millions of rupiah or thousands of yen. Because I'm a fraudster? Yes, by association.

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Why You May Need Credit Card Debt Consolidation

You find yourself in a situation of mounting credit card debt. You have 5 credit cards in your wallet and have been shopping more than you earn.

Initially you had no problems managing your funds but it has started to snowball not too long ago. Your spending has been steadily increasing as you find it hard to curb your shopping habits.

From being able to pay the full outstanding balances on your credit cards, you are paying the minimum sum each month. Your salary can barely cover your required minimum payments.

This is when you start to realize that you are just unable to cope. You face stress and worry each month when you receive the dreaded statements from your credit card companies and your banks.

Then, you begin to panic when you receive calls from the loan recovery department of your banks. Increasingly, you find it hard to keep secret your debt situation from your family members.

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Credit Card Debt Consolidation: Top 3 Factors to Consider

If you’ve got a number of credit cards and insurmountable credit card debt, then perhaps it’s time to consider a debt consolidation loan.

A consolidation loan is a loan that you can use to pay off all your debts, meaning that you can pay them off for less money without having to worry about lots of different bills.

For instance, if you had borrowed $3000 five years ago, you may now owe $5000 (principle plus interest).

A debt consolidation program may involve eliminating some amount of interest so that you pay less than $5000.

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Pay Less Interest On Your Credit Card

Surprisingly, many people don't know how to use their credit cards.

I know what you're all thinking: "That's easy. I'll buy something big and expensive right now to prove that Fool wrong." Please don't!

The thing is, we all know how to buy things with credit cards and transferring a balance is a cinch.

But, when buying or transferring, we do things that cost us more money than it should, because we don't take full account of the dastardly small print.

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Barclaycard increases credit card rate by 12.1% apr

In the last three months Moneyfacts researchers have seen 19 card providers increase interest rates, some by as much as 12.1%.

Lisa Taylor, analyst at moneyfacts.co.uk comments: "While it may be argued that the 0.25% increase to base rate in August resulted in some of these increases, with rises of up to 12.1% it is clear other forces are at play.

"Rising bad debts and the lost fee revenue has left many providers with no choice but to look for alternative avenues for income. And it seems, raising interest rates is a popular option.

For many consumers this rise may go unnoticed - but should they take the time to look at the long term consequences, they could be in for a nasty surprise.

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Tips for navigating the complex world of credit-card rewards programs

SAN FRANCISCO (MarketWatch) -- Airline miles? Cash back? Hotel points? These days, choosing among rewards cards is not for the faint of heart. Not only is there a plethora of cards from which to choose -- how about money contributed to your IRA every time you make a purchase? -- but they offer perks in a variety of ways.

And they all come with the inevitable fine print detailing myriad restrictions, making it difficult to figure out which is the best deal.

There's some evidence rewards programs stymie cardholders. About one-third of mothers in a recent survey said they're unsure what rewards their credit card offers, according to a survey of 223 mothers with rewards cards, conducted by Harris Interactive for Disney Rewards Visa Card from Chase.

Forty-one percent of the moms said they're dissatisfied with their rewards-card program, 34% said their credit card does not offer the types of rewards their family wants and 32% are frustrated by the restrictions their card carries. (Disney Rewards Visa says its card comes with no black-out dates or other common restrictions.)

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