Credit Card Resources: January 2007

Distracted by Low-Interest Credit Cards?

As savvy credit card users know, you're not always stuck with the high-interest-rate cards that issuers send your way. With some telephone calls and a few balance transfers, you can often lower your double-digit interest rates to some much more reasonable single-digit numbers.

Many Fools who hang out on the Credit Cards and Consumer Debt discussion board have become masters of this art. If you want to try your hand, make sure to take a look at their advice. They can help you steer clear of any traps and tricks along the way.

Successfully executing this deft maneuver can lead to some questions. Once you've managed to lower the interest rates on your credit card debt, what comes next?

When you're carrying high-interest consumer debt, the pressure's on to pay it off as soon as possible. But lowering those rates drastically can relieve a lot of that pressure, causing an inquisitive Fool to wonder whether it's best to keep attacking that debt. Or, maybe they're finally in a good position to start putting some money where it might be more profitable, so they may wonder whether it's time to start investing.

Labels: Consolidate Credit Card Debt, Credit Card Debt Consolidation, Low Interest Credit Card

Understanding The Credit Score And Mortgage Relationship

If you are considering buying a home or refinancing, the subject of credit scores has undoubtedly come up. So, what is a credit score and how does it impact you?

Understanding the Credit Score and Mortgage Relationship

In the 1960s, the concept of credit scores came to fruition. A company by the name of Fair Isaac Corp developed a system whereby credit reports could be summarized as a score. This score, known as a FICO score, could be used by lenders to determine the credit worthiness of a potential borrower.

The highest FICO score you can have is 850 while the lowest is 350. Where you fall on the scale determines the type of loan you will get.

Labels: Consumer Credit, Credit Card For Poor Credit, Mortgage Refinancing

EU finds bank card issuers break antitrust law

BRUSSELS -- Banks issuing credit and debit cards are colluding to keep prices artificially high and restrict competitors, the European Commission charged Wednesday.

The commission report, while naming no specific offenders, vowed to open antitrust cases in coming months. In the meantime, it urged credit-card companies such as Visa International and MasterCard Inc. (MA) and the retail banks that issue these cards to take voluntary measures to bring down fees. But it does not demand specific reductions.

The commission already has long-running antitrust cases open against both Visa and MasterCard.

"Something is rotten in the state" of bank cards, said E.U. Competition Commissioner Neelie Kroes, promising action against offending banks "as soon as possible." She could not "wait too long" because retailers and consumers "are being ripped off."

The commission's efforts to lower credit and bank-card fees are aimed at integrating the E.U.'s banking sector, which remains fragmented despite the advent of the euro. By 2010, the commission wants to have a framework to allow businesses and customers to make cross-border electronic payments as easily, and at the same cost as within their own country.

Labels: Consumer Credit, VISA and Mastercard

Which credit card offers the best deals?

If you play the game right, your credit cards can pay you with everything from free plane tickets to home mortgage rebates. But with so many offers stuffing your mailbox, finding the best card can be overwhelming and downright frustrating.

14 News shows you an easy way to sort through the piles of sales pitches.

They never seem to stop coming; one tempting deal after another. From airline miles to discounts at home improvement stores, credit experts say lenders have more ways than ever to catch your eye.

Labels: Best Credit Card, Credit Card Deal, Credit Card Offers

IdentitySweep.com Offers Identity Theft Protection for 40 Million Victims of T.J. Maxx Security Breach

ARLINGTON, VA -- MyPublicInfo, Inc., the leading provider of identity scoring and identity theft monitoring solutions for consumers, is offering its signature IdentitySweep protection service (www.identitysweep.com) for the estimated 40 million victims of the T.J. Maxx data breach.

Dating back to 2003 at T.J. Maxx, Marshall's and other TJX stores, this breach has left millions of consumers potentially vulnerable to identity theft.

While the full extent of the breach is still uncertain, it is believed that the number of exposed cards could reach or exceed 40 million consumers across the United States and Canada, and as far away as Hong Kong and Sweden, making it the largest breach of consumer card information yet.

The exposed debit card and PIN information is particularly hazardous, as debit cards are not protected from liability for fraud charges, and debit card fraud is not detected by credit monitoring.

Labels: Credit Card Merchant Services, Secured Credit Card

Koreans Most Active Card Users in Asia

South Koreans spent $181.2 billion using credit cards in 2005, becoming the most active users of plastic for payment in the Asia-Pacific region, according to Nielson Media Research, a global research firm.

In its latest report on credit card spending patterns around the world, the firm said South Korea ranked first in transaction volume using cards in the Asia-Pacific region in 2005. Japan came next with $151.3 billion, followed by Australia with $131.5 billion.

The Credit Finance Association (CFA), which represents the interests of Korean card issuers, said the country emerged as the largest credit card market in the region in 2005 on the government’s strong encouragement of their use as a payment method.

Labels: Asian Credit Card, Consumer Credit, Credit Card Debt Consolidation

Rate hikes hit credit cards

THREE interest rate rises have bitten into the nation's love affair with the credit card, with new applications growing at their slowest rate in 18 months as people switched to personal loans to consolidate their debts.

Card applications grew just 0.4per cent in the December quarter of last year and just 5.3per cent for the year, less than a third of the 16.9 per cent growth of 2005.

The figures do not necessarily mean additional credit cards either as, according to Baycorp Advantage, many customers now change cards to take advantage of lower interest offers or interest-free balance transfers.

Read more at: Rate hikes hit credit cards

Labels: Credit Card Interest Rate

Credit card firms offer financial education

The very credit card companies that charge $35 late fees are increasingly offering financial education that they hope will reduce cardholder delinquency.

Wells Fargo, U.S. Bank and Target Financial Services developed pilot programs for at-risk or new-to-credit customers in 2003 with the Responsible Credit Roundtable, a group with members ranging from credit card executives to credit counselors.

The Roundtable, which aims to help consumers manage credit as well as to improve industry practices, was developed at the St. Paul Foundation and recently moved to the Center for Financial Services Innovation in Chicago.

Labels: Credit Card Industry

Banks reduce interest rates on credit-card transactions

The Bangko Sentral ng Pilipinas said banks had reduced interest rates on credit card transaction owing to stiff competition and low interest-rate environment.

BSP’s recent survey showed that in the aftermath of different product promotions, banks have lowered interest rates to a range of 2.25 percent to 3 percent a month from 3.5 percent.

BSP Deputy Governor Nestor Espenilla Jr. told reporters that “promotions such as balance transfer [have reducted] interest payments” such that they have encouraged competition in the industry.

“We’re beginning to see reduction in over-all rates in a range of 2.25 percent to 3 percent. Before, most were in 3 percent,” Espenilla said.

Labels: Credit Card Interest Rate

HL Bank Eyes Over 50,000 Users Of MTV Credit Card

KUALA LUMPUR -- Hong Leong Bank aims to sign up more than 50,000 users for its re-launched MTV credit card in the first year by tapping the potential 2.5 million emerging young professionals segment.

"For the first full year, we would definitely want to have a sizeable market share," said Moey Tan, Hong Leong's chief operating officer, at the re-launch of the bank's MTV credit card here Tuesday.

"We are looking to sign up more than 50,000 cardholders," she said.

Asked on the annual fees where many banks were waiving them, Moey said the bank was confident of the take-up rate by potential users because of the benefits offered by the card.

Labels: Credit Card Application

Credit Card Gouging

U.S. Sen. Christopher J. Dodd, who is campaigning for president, is using his bully pulpit as chairman of the Senate Banking Committee effectively to put banks and other credit card issuers on notice about their practices. Sen. Dodd called together academic experts and financial industry leaders at a Senate hearing the other day.

Sen. Dodd is concerned about the billing, marketing and disclosure policies and practices of the credit card industry. Too often, credit card companies virtually harass consumers by flooding them with checks they can make out to get, in effect, instant loans from the company.

These loans often are for low rates for short periods before the companies slap on very high interest rates.

Equity Loans May Be Best Option To Consolidate Credit Card Debt – Tax Advantages and Lower Payments May Apply With Mortgage Loan

Many homeowners find themselves in the dilemma of too much unsecured credit card debt. The decision to refinance is not an easy one. Most people are hesitant to secure credit card balances against their home, but there are some advantages in doing so.

There are tax advantages in taking the debt from your credit cards and placing it into a home equity loan. Currently credit card interest is non-tax deductible, but interest paid on a home loan is. Always check with your tax consultant before making that decision because he is up to date on your situation and the current laws.

Before you decide on a lender, pick up the phone and call a bank. Ask them their interest rates. These rates will be dependant on your credit record of course, but it could give you a ball park figure. Start comparing these rates with your current home loan. If the rates are lower it might be a good idea to refinance your first home loan.

Record year for credit card applications

Australians applied for a record 3.7 million new credit cards in 2006 - almost 190,000 more than in 2005, according to a study.

The Baycorp Advantage Consumer Credit Demand Index also found the growth rate for credit card applications slowed to 5.3 per cent, down from 16.9 per cent in the previous year.

Baycorp Advantage general manager for information services and solutions Erica Hughes said the three interest rate rises in 2006 had created a more cautious environment.

Labels: Apply For A Credit Card, Credit Card Application

Debt Consolidation Decisions To Improve Your Credit Rating And Pay Less In Monthly Payments – To Do Before Taking Home Loans

There are many things to consider when consolidating your debt, including the effect on your credit rating, the time period involved in clearing up the debt, the interest rate and if you own a home, the pros and cons concerning securing the unsecured debt into a home loan.

There are some things you can do before you sign on any dotted line.

First check to see if your creditors will lower your rate. This was described last year on “The Debt Diet” on the Oprah Winfrey Show.

This does not cost you anything and can potentially save you thousands of dollars. Pick up the phone and call your credit card companies and ask for a lower rate.

Labels: Consolidate Credit Card Debt, Credit Card Debt Consolidation, Debt Consolidation

Credit-card rewards programs reduced

Companies scale back cash-back awards and other features to cut costs. But, an expert says it is unlikely the incentives to use cards will disappear completely.

Consumers, if you use credit cards to earn rewards points, it's time to check the score.

You are probably charging the same amount or even more, but earning fewer rewards. That's because credit card companies have been steadily scaling back these programs to cut costs.

“We knew ... they could not keep this up forever,” said Curtis Arnold, the founder of CardRatings.com, which lets consumers rate credit card deals.

Recent changes include American Express' decision in the fall to cut rewards points in half for everyday purchases at drugstores, grocery stores, gas stations and other retailers.

Labels: Credit Card Reward

Credit card holders drowning in the dark

If you are late making a payment on one of your credit cards, what is the amount of the fee that you are assessed? Does your tardiness affect the interest rate that you are charged? If so, will the rate ever return to its earlier, lower amount?

Few people actually know the answers to these questions - unless they've seen the shocking bad news in black and white on a bill after they've been hit with the burdensome charges.

But now, after years during which changes in the laws always favored credit card issuers, the consumer may be about to get a break. For starters, Congress is looking at rules that would require credit card companies to list their fees and penalties in a way that is clear and understandable to the average consumer.

Why you should pay an annual credit-card fee

NEW YORK -- In most instances today, it would be silly to pay an annual fee for a credit card simply because most cards don't have them anymore.

But in a Senate Banking Committee hearing examining credit card practices this week, one consumer advocate suggested those who pay their balances in full every month (about half of all cardholders) should pay a small annual fee to credit card companies.

Why? To pay their fair share.

Say you charge $1,000 at the beginning of every billing period and pay it off in full by its due date a month or so later. That's essentially an interest-free loan from the credit card company to you.

The affectionate term of art for those of us who do this is "deadbeat" because we're not that profitable for the credit card companies. Sure, issuers make money off of you through fees paid by merchants whenever you charge a purchase. And you're deemed a "valued customer" because you make an issuer's portfolio look better when they show it to the securities markets.

Credit card strategy falls short

Shifting debt seems clever but method may backfire later

A man phoned yesterday for my thoughts on his credit card strategy.

He is a retiree who has been carrying $45,000 in card debt for three or four years. Although he has savings enough to pay the whole amount immediately, he has been shifting the debt from card to card to take advantage of introductory offers that waive interest charges on "balance transfers" for the first few months.

This way, he has avoided paying interest on the card debt. Meanwhile, money that could be used to pay the debt has instead been earning 8 percent to 9 percent a year in a variety of investments.

Is he clever? Or crazy?

Too clever for his own good, in my view.

Read more at: Credit card strategy falls short

Credit card industry needs more oversight, critics say

WASHINGTON - It's time the federal government began protecting Americans from unsafe credit cards, just like it does from unsafe toasters and cars, consumer groups told a Senate panel Thursday.

Credit card companies routinely offer cards that have been loaded up with tricks and traps that consumers don't know about or understand, causing millions of Americans to become hopelessly mired in debt, Harvard law professor Elizabeth Warren told the Senate Banking, Housing and Urban Affairs Committee during an oversight hearing on the credit card industry.

Those tricks and traps include hiking interest rates when a cardholder falls behind in payments to other creditors, charging fees for payment by telephone and a practice called double-cycle billing. That's when a cardholder, for example, pays off $90 of a $100 charge but in the following month the bank charges interest on the entire amount rather than on the $10 balance.

8.8 million credit card holders in Malaysia

Terengganu: There are about 8.8 million credit card holders in Malaysia and most are living beyond their means, charging a total of RM19.3 billion of their spending to various financial institutions.

Credit Counselling and Management Agency Chairman Datuk L. Meyyappan who revealed this, however, said the amount was considered small as it made up only 6.2 per cent of total debts to financial institutions with the most being housing loans at RM312.2 billion.

"On the average, Malaysians have three credit cards each. But overall, they are disciplined pay masters compared to those in other countries.

"In fact, unpaid debts involving credit cards amount to only 3.4 per cent or RM670 million of the total outstanding," he told reporters after officiating the agency's office here at Bank Negara Malaysia's Terengganu branch.

Labels: Asian Credit Card

Tips to detect and avoid credit card fraud

It sometimes seems there's no safe way to go shopping anymore: carry cash and you risk getting mugged.

Use a credit card or a debit card and fraud artists can hack into retailers' records and steal your personal information. But there's hope on the horizon in the way of cryptography and security chip-encrusted credit cards.

In the meantime, here are few tips to keep your credit card safe:

Review your card statements carefully, and promptly report any unauthorized or suspicious use of your card. Even after the matter is resolved, continue to monitor your statements to ensure the problem does not reappear.

Always print a receipt when shopping online with your credit card

Rise in credit card purchases in 2006

A 9.6 percent increase was noted in credit card purchases in 2006 compared to the previous year, figures published by Central Bureau of Statistics on Thursday revealed. The increase in 2005 was 9.9 percent.

Based on the data, the biggest increase in credit-card payments was for municipal and governmental services, clothing and footwear, and hardware and software. Credit-card use for food purchases increased by 6.5 percent.

The information regarding individual consumers was received from all credit-card companies operating in Israel , and was divided into major purchase groups and sub-groups, according to categories of the businesses at the credit-card companies.

American Express Blue Card Added to the List Of New Cards Online Review Site Covers

From one of the most reliable credit card companies in the United States comes a new credit card that's loaded with all the features a consumer can possibly want in a card. American Express is once again providing consumers with a low interest and great rewards program through their Blue Card. Now consumers can compare this card to the myriad of other offers available from one simple, safe web site.

It is important for consumers to be informed and Best CreditCards.com is making sure that happens.

Here is some of the sort of information consumers used to have to work to get: Unlike other credit cards which can only offer low interest rates for your first six months, this Blue from American Express gives up to 15 months of low introductory interest rate offer. With an APR of 0%, this is the lowest an interest rate can go.

Credit card spending set to rise

Spending on credit cards is set to rise in the UK during the first three months of this year, new research undertaken by Morgan Stanley has discovered.

The total increase is forecasted to be 68 per cent above the corresponding period for last year which will equate to an average card spend of £1,228 for the first quarter of 2007.

It has also been found that repayment figures at present represent the highest amount since 1998. Reasons for the increase have been attributed to the ease in which cardholders can flash the plastic when paying for essentials such as groceries and petrol.

Read more at: Credit card spending set to rise

It's Your Credit Card Or Your Life

Americans are increasingly living in a house of cards — credit cards.

A disturbing new report shows that with health-care costs continuing their sharp rise, low- and middle-income patients are reaching for their credit cards with alarming frequency to cover treatment that they otherwise would be unable to afford.

This medical debt, to be paid off in many cases at sky-high interest rates, is being loaded onto consumer debt that is already at dangerously high levels. Many families have been crushed by the load, driven from their homes, forced into bankruptcy and worse.

The report, released last week, was jointly compiled by Demos, a public policy group in New York, and the Access Project, which is affiliated with a health policy institute at Brandeis University and is trying to broaden the availability of health care in the United States.

Read more at: It's Your Credit Card Or Your Life

Analyst: Banks Must Make Credit Card Accounts Useless To Data Thieves

The hack that chain retailer TJX disclosed last week demonstrates that banks must shoulder their share of responsibility and add protection to credit and debit cards, an analyst said Wednesday.

"Banks must own up to this problem and change their payment systems so that, even if data is stolen, it is useless to thieves," says Avivah Litan, an analyst with Gartner.

On Jan. 17, TJX -- which owns hundreds of T.J. Maxx and Marshalls department stores -- said that one or more hackers had broken into its computer network and made off with a still-to-be-determined number of customer records. Those records included credit and debit card account numbers, and in some cases names and driver's license numbers.

Commerce Bank Launches New No-Fee, Small Business Visa(R) Credit Card

CHERRY HILL, N.J., Jan. 24 -- Commerce Bank (NYSE: CBH - News), "America's Most Convenient Bank," and one of the nation's top small business lenders, has launched a new Visa® Platinum credit card for small business customers that carries absolutely no fees and provides a significant rewards program.

The new, no-fee credit card is the only small business credit card available that has eliminated all the membership and penalty fees typically charged by banks and credit card companies. Commerce small business Visa cardholders will pay absolutely no fees for this platinum credit card account:

-- No annual fee
-- No late payment fee
-- No over-the-limit fee
-- No cash advance fee
-- No balance transfer fee
-- No default pricing

The new Commerce Bank Visa credit card will enable small business owners to avoid paying unnecessary fees and better manage their cash flow.

Senate committee to examine credit-card industry

Banking committee hearing first about new consumer-centered agenda

WASHINGTON -- Members of the Senate Banking Committee are scheduled to convene their first consumer-oriented hearing of the new Congress on Thursday, and examine ways to tighten rules related to the credit-card industry's billing, marketing and disclosure practices.

New Banking Committee Chairman Christopher Dodd, D-Conn., has long tried to clamp down on the industry, including by requiring companies not to raise fees and interest rates on card-holders who want to cancel a card. Dodd has also sought increased disclosure about the length of time required to pay off balances when making only minimum monthly payments.

Dodd and other Democrats have also aimed to curb companies' targeting of college students.

Stop Wasting Money With Credit Cards

IRVINE, Calif., Jan. 23 -- The convenience of credit cards makes them a very attractive and sometimes necessary choice for most consumers -- but they can also be dangerous. With a few savvy strategies, even debt-riddled consumers can minimize many of the extra costs associated with credit card debt.

"If consumers must be in credit card debt, they should at least be smart about it," said Jason R. Rich, author of Smart Debt (http://www.entrepreneurpress.com/). He offers strategies to avoid wasting money on fees and interest.

* Apply for credit cards that have the lowest interest rates and fees.
Read the fine print of the cardholder's agreement carefully to
understand all associated fees: annual fees, account maintenance
charges, over-the-limit charges, late fees, cash advance fees, ATM fees,

etc.

Retirees up against debt

Across the nation, seniors are becoming the face of the indebted.

In Austin, Ronald and Carol Godwin, 65 and 63, depleted their savings years ago and have since turned to credit cards and home equity to pay medical bills. They're struggling in retirement to pay off loans they took out years ago for a grandchild's college education.

In Scott Depot, W.Va., Carl Brown, 68, has an impossible decision to make every month because his Social Security check usually doesn't cover all of his mortgage, utility, food and medical costs.

"I know there's no way for people to believe this, but there are times when I get my Social Security check and just send everybody I owe $15 to $20," says Brown, a widower who has suffered a heart attack and stroke. "There are times when I can't buy groceries or medicine."

Store Card Debt Contributing To Serious Debt Problems, Say Debt Counsellors

The Debt Counsellors Annual UK Debt Survey has revealed that store card debt is a major contributory factor towards serious debt problems in the UK.

According to the survey, more than 41% of people seeking help for their debt problems owe money on store cards. Credit cards were the largest contributor, with credit card debt stipulated as a factor in 91% of cases.

Credit Action reports that the combined value of transactions made on charge, credit, debit and store cards was £470 billion in 2005, and it is estimated that this will reach £639 billion in 2010.

Store cards can have a devastating effect on finances as they usually carry interest rates much higher than ordinary credit cards. The issue of store card debt is especially relevant in January as research from Alliance & Leicester Personal Loans reveals that 23% of people used store cards to help fund their Christmas spending.

John Porter, senior counsellor with the Debt Counsellors, believes too many consumers are mounting up store card debt by using their plastic in the wrong way.

Patients piling medical costs on credit cards

Some doctors and hospitals are teaming up with financial-services companies to market credit cards to patients, reducing healthcare providers' dependence on bill collection, and causing more low- and middle-income consumers to pay interest on their medical debts.

While hospitals in Massachusetts are not pushing such credit cards, they are attempting to get patients to pay up front for services not covered by insurance, and are routinely asking them to provide credit card information before they receive treatment.

Patients can be turned down for elective procedures if they don't pay in advance, but hospitals are required to treat emergency cases. The state doesn't keep statistics on the number of people denied elective procedures because of financial reasons.

Book links high cost of college, credit card debt, low-wage jobs

"Generation Debt" expands on a series that freelance columnist Anya Kamenetz wrote for New York City's Village Voice newspaper. The title is a bit misleading, because it conjurers up visions of credit card and mortgage debt.

While these things figure peripherally, the twin demons of Kamenetz's story are crushing student loans and low-wage, no-benefit temporary jobs (reasonably described as "crap jobs").

College tuition and fees have grown significantly faster than inflation. State-funded institutions like Western Carolina University offer a refuge from this spiraling cost, and Kamenetz particularly champions community colleges as dollar-wise providers of the first two years of college.Taken at face value, college costs should be expected to absorb more of average household income than ever before.

This is likely the case, but it obscures reasons why colleges raise tuition. Those reasons include the fact that colleges have to cover their own rising costs and they want to create leeway to tailor financial aid packages to attract the most desirable students.

Credit card use faster, easier

No signatures are required in some inexpensive transactions; and some cards make swiping pass. If cash is king, then credit cards are the emperor.

Plastic's worldwide reign makes it a favorite among people who count on fast, easy transactions.

And it's becoming even faster and easier to use credit cards, especially in places where merchants don't require signatures for small purchases.

Additionally, credit card companies such as Visa and MasterCard have been introducing cards that don't even require swiping.

For at least a couple of years, QuikTrip Corp. has not required credit card signatures on purchases that cost less than $25, said Mike Thornbrugh, manager of public and government affairs at the Tulsa-based convenience store chain.

"We embrace it," Thornbrugh said. "Anything that helps us to speed up the transaction for our customers, we love it."

Read more at: Credit card use faster, easier

Bill attacks credit card fine print

State Rep. Teddy Edmonds prides himself on being a smart credit consumer.

"I've got a Visa card that I've had since 1969," the Jackson Democrat said last week. "In 37 years I've never paid one penny of interest or late fee or penalty."

But in what he calls "a weak moment" during a trip to Louisville two years ago, Edmonds signed up for a department store credit card to get $10 off on two pairs of Levi's and a tie.

Instead, he said, he got a bill six weeks later with a $25 late charge. He swears he never saw an earlier bill.

Dazed and in debt in the credit card maze

"I owe about $12,000 in unsecured debt, and my payments just keep going up," a troubled citizen signing himself T.P. recently informed a personal-finance columnist. He always paid more than the minimum amount due on his credit card bill, but "still the balance never goes down," T.P. wrote. "Is there any way to get the interest rate down?"

The interest rate that so oppressed T.P.? A towering 29.99 percent. At this rate, the columnist said, if T.P. continued to pay little more than the monthly minimum, it could take him more than 30 years to pay off his balance — even if he never went shopping again.

Trying to fight off a collection agency while paying little or nothing on his credit card debt, another desperate borrower, R.Z., appealed to this same columnist. How could he prevent interest charges and late fees from mounting? He couldn't, replied the columnist, as long as he legally owed the money.

Consumers like T.P. and R.Z. find themselves caught in the complexities of today's bankruptcy laws. And their predicament is increasingly common.

Irate card users left in dark

Consumers say they're frustrated and angry about a major computer security breach at a leading retailer this week because they can't get the information they need to protect themselves from fraud or identity theft.

The U.S. parent company of Winners and HomeSense said it has passed on the credit and debit card numbers that might have been exposed when hackers got into its computer system to the credit card companies or the banks that issue the cards.

But in Canada only some banks are passing that information directly on to their customers. Others say they're monitoring the accounts for signs of suspicious activity.

"I'm flipping out over this," said Jennifer Lee Jones, a 41-year-old Newmarket-area resident who shops at Winners. "I've been on the phone for an hour and a half with Winners' customer service trying to find out if my ID was stolen. They're not telling me anything."

Read more at: Irate card users left in dark

Credit card spending down for first time in 14 years

Consumers borrowed less on credit cards for the first time in at least 14 years, figures for 2006 revealed today.

Credit card lending fell by £1.8 billion last year - the first annual fall since the body began compiling lending data in 1993, the British Bankers' Association (BBA) said.

The figures suggest consumers are paying off their credit card debt and putting less money on plastic.

Raw deal with credit card rewards

MANY Australians are getting a raw deal on credit card rewards programs, with a new study showing some schemes require a person to spend 10 times more than others to get the same benefit.

A study of 66 cards by independent financial services firm Cannex found on average a consumer receives a benefit of just 62 cents for every $100 they spend.

But with some programs the rewards can be worth $6 for every $100.

The research showed two thirds of people preferred points-style rewards system, while 15 per cent were attracted to instant benefits.

Among points programs, frequent flyer schemes had the most variation, according to the study.

It costs $20,000, on average, to earn a domestic flight, but with some cards the same trip would cost about $10,000.

Read more at: Raw deal with credit card rewards

Don't let a dispute damage your credit

Gina Akers of Joshua had just about had it with her 10-year-old computer in October 2004, when she saw a television commercial advertising a new Dell for only $499.

Akers said she thought it sounded like a great deal, so she called Dell and placed her order, upgrading to a flat-panel monitor and adding some software.

She said the Dell operator told her that after rebates, her new computer would cost $800.

"It all sounded so great," said Akers, 54. "But I never got the rebates. I never got the forms."

Two months later, however, she did get a bill from Dell on the credit account she opened with them to finance her purchase.

Akers said that the bill was more than $1,500 and that Dell was charging 29.9 percent interest.

On Personal Finance - Clever credit card strategy? Not so much

What would you tell this man, who phoned yesterday for my thoughts on his credit card strategy?

He is a retiree who has been carrying $45,000 in card debt for three or four years. Although he has savings enough to pay the whole amount immediately, he has been shifting the debt from card to card to take advantage of introductory offers that waive interest charges on "balance transfers" for the first few months.

This way, he has avoided paying interest on the card debt. Meanwhile, money that could be used to pay the debt has instead been earning 8 percent to 9 percent a year in a variety of investments.

Is he clever?

Or crazy?

Too clever for his own good, in my view.

The first warning sign is the size of the debt. No person of modest means, as this reader is, should rack up $45,000 in credit card debt - ever, under any circumstances.

Don't add to credit card debt in January, consumers warned

Consumers should not run up more debts on credit cards and store cards this month, a credit reference agency suggests.

Additionally, people should "do their sums" and consider using money from their savings accounts to pay off existing credit card balances, according to MyCallcredit.

Australian credit card bills rise in November

Australians now owe $38 billion on credit cards with higher interest rates prompting consumers to lean on their plastic to cover shortfalls during the run up to the holiday season.

Higher rates slowed the increase in spending on cards in November and made it harder for consumers to repay debts.

Credit card debt rose to $38.028 billion in November from $37.343 billion a month earlier, according to the latest figures from the Reserve Bank of Australia (RBA).

The average credit card balance rose to a record $2,868, up from $2,821 in October, CommSec said.

Read more at: Australian credit card bills rise in November

Credit Card Debt After Divorce

It is true that marriages are made in heaven. But everything falls flat on their butt once a marriage hits the rocks. Every bit of reconciliation fails and divorce seems to be the only way out.

If everything – both financial and other aspects - is settled before parting ways, then we can say - all is well that ends well. But if the separation is not so amicable and there is some sourness left somewhere in terms of an unsettled financial debt, things can turn both ugly and complex.

One such difficult situation arises when one of the partners incur a credit card debt, and the credit card debt after divorce assumes the form of a Damocles sword in the form of collection people, constantly nagging either of the ex-spouses to settle the due.

Read more at: Credit Card Debt After Divorce

Labels: Consolidate Credit Card Debt, Credit Card Debt Consolidation, Debt Consolidation

Higher overdraft and card rates make banks millions

LONDON - Banks raked in more than 600 million pounds from consumers last year by hiking overdraft and credit card rates, according to price comparison service uSwitch.com

It said five banks, including Lloyds TSB and NatWest, had increased their agreed overdraft rates by an average 1.3 percent -- netting themselves an extra 56 million pounds.

At the same time, the industry made 567 million pounds by increasing the interest charged on credit card purchases by a typical 1.2 percent.

Read more at: Higher overdraft and card rates make banks millions

Illness can bring credit card pain

Peggie Sherry has health insurance, but since being diagnosed with breast cancer in 2003, her uninsured costs have soared to $40,000.

About $15,000 of that went on three credit cards.

"We did not want to put those bills on credit cards, but we didn't have a choice," said Sherry, 50, who runs the Faces of Courage Foundation, a Tampa organization that provides camps for cancer patients. "It was either that or not get treatment for a disease that was trying to kill me."

Sherry puts a face on a growing national issue: credit card debt incurred to pay medical bills.

Read more at: Illness can bring credit card pain

Card users 'stung through ignorance'

Credit card users could be paying effective rates of more than 20 per cent because they don't understand how interest is applied, consumer advocates have warned.

A high level of consumer ignorance about credit card charges and rates has been revealed in a new survey by banking giant Citibank.

Almost half of all respondents (48 per cent) were unsure of the interest rate they were paying on their credit card.

And about one-third (31 per cent) were unsure how many interest free days they were entitled to after making a purchase.

Read more at: Card users 'stung through ignorance'

THE COLOR OF MONEY: The challengers are changing -- but not without some pain

There was a moment of silence when I told Carlesa A. Washington, a 24-year-old recent college graduate, to drop the Internet service she gets on her cell phone.

Her bill is about $75 a month. She pays an extra $20 to access the Internet. "You don't need e-mail on your cell phone if you're in debt," I said. "What do you want more, a home or to e-mail your friends?"

"A home," she replied.

Washington is putting up with my demands because she has volunteered to take part in the Color of Money Challenge. This is the second in a series of columns in which I've promised for the next year to help four people -- two single women and one couple -- achieve their financial New Year's resolutions.

Money coach explains how to control credit-card

VANCOUVER — She calls it a credit-card condom, and Vancouver money coach Sheila Walkington uses it to help her clients take control of their finances.

“It’s for safe spending,” Walkington jokes. But she is serious about the way her little credit-card-sized sleeve can help people focus on their goals rather than pulling out the plastic without considering the consequences.

And since January is often the time people set goals — coinciding neatly with the arrival of the December credit-card statements — it’s a good time to think about some financial resolutions for 2007.

Put a 'condom' on that card

She calls it a credit-card condom, and Vancouver money coach Sheila Walkington uses it to help her clients take control of their finances.

"It's for safe spending," Walkington jokes. But she is serious about the way her little credit card-sized sleeve can help people focus on their goals rather than pulling out the plastic without considering the consequences.

And since January is often the time people set goals -- coinciding neatly with the arrival of the December credit-card statements -- it's a good time to think about some financial resolutions for 2007.

"It gets busy this time of year," says Walkington, a certified financial planner and owner of Money Really Matters.

Read more at: Put a 'condom' on that card

Competition a good thing for credit-card holders

If you’re annoyed by rising interest rates on your credit cards, you may have more leverage to fight back than you think. Heightened competition in the credit-card industry is giving card holders greater muscle to negotiate lower rates.

While most credit-card companies say little publicly about their willingness to negotiate sweeter deals, some are agreeing to cut interest rates by several percentage points for their best customers. That can add up to thousands of dollars in savings over a year.

Gay Watson, a spokeswoman for the Consumer Credit Counseling Service in Atlanta, Ga., called her local bank about six months ago after receiving notification that the interest rate on her MasterCard would climb to 14 percent from 12 percent.

She typically pays her monthly balance in full but was mulling the purchase of a new computer and wanted the option of spreading her payments over a few months. The bank buckled, keeping the interest rate at 12 percent.

Economic Report Summary: Rising Credit Card Debt, Robust December Retail

Rising credit card debt and robust retail sales for December highlighted the data - this will likely stoke new inflation fears in the weeks ahead.

For the week, the S&P 500 Index fell rose 1.6 percent to 1,431 and the yield of the 10-year U.S. Treasury note rose 13 basis points to 4.77 percent.

Consumer Credit: Credit card debt soared in November contributing to the $8.7 billion rise in revolving credit. After falling $1.3 billion in October, overall consumer credit rose $12.4 billion in November, likely an indication that consumers were feeling confident enough during the early holiday season to continue spending, using credit cards to fund purchases as home equity withdrawal wanes. Nonrevolving credit for purposes such as auto loans rose $3.7 billion.

Traveler find credit card miles really can be used for a trip to Hawaii, but it's not easy

So, the big day has finally arrived.

"I have accumulated enough Sky Miles on my credit card for two round-trip tickets to Hawaii," my wife, Ta, announces in December. She plans on traveling to paradise in July and I'm invited. She looks pleased.

"Great," I reply.

Six weeks roll by and I suddenly blurt out the obvious question.

"Do you think we can really get two free tickets to Hawaii for this summer?" I ask. My wife gives me that deer in the headlights look and goes for the telephone.

Three hours later, after talking to various customer service agents, I hear her ask "Well, how about Europe?"

Holiday shoppers' remorse sets in as credit card bills come due

Now that the holidays are over, lots of folks are assessing the damage they did with their credit cards and are trying to get back financially on their feet. NewsChannel 3 spoke with consumers and credit counselors for some helpful hints.

It's that time of year when the bills start pouring in from your December holiday shopping spree. Springboard Consumer Credit Counselor Manuel Perez says it's common for shoppers to think "buy now, max out and pay later."

Only, when the bills come in, there's not enough money to pay them off.

Citigroup agrees to extend AT&T-branded credit card programs

AT&T Knowledge Ventures, the licensing arm of San Antonio-based AT&T (NYSE: T), will continue licensing the AT&T brand to Citigroup (NYSE: C) to issue the AT&T Universal Platinum Card and AT&T Universal Rewards Card.

The two credit cards already offer calling benefits, loyalty programs and special rates on cell phone insurance to cardholders.

Raja Rajamannar, executive vice president of Citi Cards, says Citigroup and AT&T have provided benefits to cardholders since 1998.

U.S. Shoppers Suffer Holiday Spending Hangover

Are you a big spender? If so, you are not alone. A new survey published by Consumer Reports indicates that Christmas “holiday debt hangover” will be especially heavy again this year. Among shoppers who used a credit card, holiday debt is predicted to average $626. Yet for some, the bills will be much higher. Seventeen percent of credit card users will have racked up $1,000 or more (DailyLocal.com, Dec. 26, 2006).

Although the extra debt is bad news for gift-givers, it is great news for credit card companies, who will soon be making billions of dollars in missed payment penalties and interest charges from people who do not pay off their balances at the end of the month.

In fact, almost one in four credit card users will not pay off Christmas bills until March or later. Talk about “holiday debt hangover”—that’s one quarter of the year!

Read more at: U.S. Shoppers Suffer Holiday Spending Hangover

Doha Bank offers ‘Dream’ credit card

DOHA Bank has launched, for the first time in Qatar, a two-in-one ‘Dream’ card that offers credit as well as loyalty.

The card, which complies with the globally standardised EMV-payment system that claims to have significantly cut frauds, will be issued in both VISA and MasterCard variants, a bank statement said.

EMV stands for EuroPay, MasterCard and VISA – the companies that formed EMVCo, an entity that implements the global standardisation of improved card payment systems.

Read more at: Doha Bank offers ‘Dream’ credit card

Millions still at risk of credit card fraud

Millions of Britons are still putting themselves at risk of credit card fraud despite repeated warnings, a new report reveals.

Data from Morgan Stanley shows 40 per cent of UK residents are still throwing away bank and credit card statements without shredding them, with this number rising to 59 per cent of under-30s.

This practice simply hands information to any potential fraudster, who can pick up and go through the details on the statements after they have been thrown out and impersonate the credit card holder to take out new cards or loans in their name.

Read more at: Millions still at risk of credit card fraud

Credit Card Delinquency Rate Highest In A Year

WASHINGTON -- Late payments on credit card bills climbed in the summer to their highest point in a year, suggesting that some consumers are feeling financially squeezed.

The American Bankers Association, in its quarterly survey of consumer loans, reported Tuesday that the percentage of credit card payments 30 or more days past due increased to 4.57 percent in the July-to-September quarter of last year.

That was up from 4.41 percent in the second quarter and was the highest since the third quarter of 2005, when the delinquency rate stood at 4.74 percent.

Read more at: Credit Card Delinquency Rate Highest In A Year

Doing Away With Your Budget Blues

Have you heard of a personal budget? Most people would either dismiss it or say they have no time or are just too busy to maintain one.

These must be the two main excuses for those without a personal budget.

So, it is not surprising that the number of personal bankruptcies has increased significantly in recent years.

Putting together a personal budget is crucial if you don't want to spend your way into serious debts.

By planning a personal budget, you're committing to manage your money instead of letting your money manage you. Many people do not realise that financial planning is important for business and personal wealth. The earlier you start, the better it is.

Read more at: Doing Away With Your Budget Blues

Debt Elimination Starts With Credit Cards

Houston, TX -- ChristiaNet.com (http://www.christianet.com), the world's largest Christian portal with twelve million monthly page loads, offers valuable information to readers about the best ways to get started with debt elimination. Now that the holidays are over many consumers find their mailboxes filled with bills from purchases made with credit cards.

Creditors send out numerous offers to consumers during the holidays for the purpose of enticing them to buy now and pay later. Unfortunately most of these offers involve high interest and various other fees that make it hard to pay off balances. President Bill Cooper, with ChristiaNet.com, offers some advice to consumers, "The best way to tackle debt elimination is to start by making more than the minimum monthly payment on charge accounts." (http://www.christianet.com/debtelimination/)

Various ideas towards debt elimination have been provided by readers from ChristiaNet. One person suggests, "Refrain from some non-essential activities for a short period of time and use that money to make debt payments." Non-essential activities might include anything that is not a necessity. Make a list of activities or expenses that can be eliminated until credit cards are paid off. Consider canceling cable services and other entertainment related activities.

Read more at: Debt Elimination Starts With Credit Cards

Capital One criticised over credit card charges

Concerns around the profitability of credit card charges are rising as ten of the leading bank cards have increased rates over the last 12 months.

Recent rate hike culprits include Barclaycard, HSBC, MBNA, M&S Money and Virgin Money.

But many commentators have zoned in on Capital One, which now charges 34.9 per cent interest on its Classic Visa card after hiking its rate on purchases by five per cent in 2006.

Read more at: Capital One criticised over credit card charges

Beware Too-Good-to-Be-True Credit-Card Offers

This is a tale of two solicitations for credit cards with no annual fee. The lesson to be learned: Surprises may lurk in all. One credit card offer, from Bank of America, is riddled with fees and catches. Our other credit-card solicitation, from Capital One, appears to be a "no-hassle" deal.

A chief drawback to the Bank of America offer: You don't even know whether your interest rate will be 7.9%, 13.99% or 19.99% before you apply. It's "based on your creditworthiness."

There's up to a 29.99% rate if you pay late or exceed the credit limit. That's on top of the late-payment fee, which can range from $15 to $39, based on your outstanding balance. There's even a minimum $10 fee for balance transfers and if you use the credit card to purchase lottery tickets, casino gaming chips, money orders and foreign currency or travelers checks "from a non-financial institution." In addition it charges a 3% transaction fee for any transaction made in foreign currency.

Read more at: Beware Too-Good-to-Be-True Credit-Card Offers

Don't Let Debt Haunt Your Financial Future

Many Americans want to get out of debt and better manage their money. Currently, consumer debt is at an all-time high and many people are still paying off their credit cards from years ago.

According to the experts at Consolidated Credit Counseling Services, the first step is to take a look at your credit situation and figure out your debt-to-income ratio.

As a rule of thumb, your total installment debt (e.g., credit cards, auto loans, student loans) shouldn't exceed 15 percent of your annual take-home pay.

Read more at: Don't Let Debt Haunt Your Financial Future

Make sure you have a cheap credit card abroad

The average holidaymaker is spending up to £81 more than they need to when abroad by using the wrong credit card, Nationwide reveals.

The vast majority of credit cards levy fees on for foreign use of up to £1.50 as well as 2.75 per cent of the purchase value every time people use their cards overseas.

Over the course of a typical holiday this can see Britons spend £81 on fees levied by their own credit card.

Read more at: Make sure you have a cheap credit card abroad

Lowering your credit-card rate

If you're annoyed by rising interest rates on your credit cards, you may have more leverage to fight back than you think.

Heightened competition in the credit-card industry is giving card holders greater muscle to negotiate lower rates. While most credit-card companies say little publicly about their willingness to negotiate sweeter deals, some are agreeing to cut interest rates by several percentage points for their best customers. That can add up to thousands of dollars in savings over a year.

Gay Watson, a spokeswoman for the Consumer Credit Counseling Service in Atlanta, called her local bank about six months ago after receiving notification that the interest rate on her MasterCard would climb to 14 percent from 12 percent. She typically pays her monthly balance in full but was mulling the purchase of a new computer and wanted the option of spreading her payments over a few months. The bank buckled, keeping the interest rate at 12 percent.

Read more at: Lowering your credit-card rate

Hospitals hope credit card plans ease bad debt

U.S. hospitals and health insurers are hoping to boost collection of unpaid medical bills, a major drag on hospital profit margins, by expanding offerings that let patients use credit cards to pay for care.

Hospitals have been struggling to collect unpaid medical bills as rising numbers of Americans go without health insurance and those with coverage face steeper costs. Unpaid bills, also known as "bad debt," have been rising for several years and are seen worsening in 2007.

The new credit programs, offered through deals among hospitals, insurers and financial services companies, seek to lure patients to use credit cards by offering a discount on medical services or easier access to the tax-free medical spending accounts set up by their employers.

Read more at: Hospitals hope credit card plans ease bad debt

Credit Card Resources

January 31, 2007