Are you taking a trip outside of the country any time soon? A credit card can be your best accessory! Credit cards provide the most convenient and safest way to pay for travel costs. But it is important to be aware of the precautions when traveling with a credit card, especially when traveling abroad.
Do you currently have a credit card that is widely accepted? If not, consider credit cards from MasterCard, Visa and American Express - they are a safe bet in most countries. Even with these accepted cards, you can expect additional fees to be involved such as higher ATM fees and currency conversion fees, usually ranging from 1-3 percent. It’s a good idea not only to call your bank to double check these fees, but also to update them on your vacation plans. Otherwise, if they track your card being used in an unusual location, it may raise a red flag and lead them to believe the card or your personal account data was stolen and they can block the credit card. If your card is blocked, you will need to call the issuer and expect a delay before you can re-access your credit.
Remember to check your credit limit and your card’s expiration date. Nothing is worse than leaving the country and finding out you have to limit your vacation expenses to the one hundred dollars in cash you happened to bring. Speaking of, do bring some cash on your trip. Some foreign restaurants and gift shops don’t accept credit cards and you don’t want to be limited or unable to bring souvenirs back, do you?
When you are able to use the credit card, watch out for double or dishonest billing. Keep all receipts and keep track of your spending. This is most easily done if you scale down to only one credit card during your vacation abroad. Using a single credit card will make it easier to budget and track your spending when you return home. Holding on to all receipts will make it easy to identify any unusual charges on your credit card statement.
While on vacation, store your credit card account numbers somewhere secure (under password protection or in a safe) in case you lose your credit card or get it stolen while away from home. This will make it easier to cancel the account when calling your card issuer. In case this happens, it is good to have a back-up credit card, also kept in a safe, for remaining expenses.
Bon voyage!
Friday, March 7, 2008
Thursday, March 6, 2008
The Good and The Bad of 0% APR Credit Cards
We've all heard of 0% APR credit cards, zero percent symbolizing the introductory rate offered by credit card companies for a period of three to twelve months. The highlight of a 0% APR credit card is the non-existent interest rate on balance transfers, new purchases or both. Credit card companies create 0% APR credit card promotions to attract new customers. If used responsibly, a 0% APR credit card could be used as a tool to reduce or even eliminate credit card debt and establish credit without paying interest.
0% APR credit cards do have some drawbacks. A 0% APR credit card only lasts for the promotional period and some don't allow balance transfers during the 0% APR period.
Default, late payment, or over credit limit charges are usually heftier than other types of credit cards and the promotional period is discontinued if any of these are abused. Interest rates are usually high when the 0% APR period ends, so before signing up for an 0% APR credit card, make sure you are aware of the rate after the promotional period ends.
0% APR credit cards do have some drawbacks. A 0% APR credit card only lasts for the promotional period and some don't allow balance transfers during the 0% APR period.
Default, late payment, or over credit limit charges are usually heftier than other types of credit cards and the promotional period is discontinued if any of these are abused. Interest rates are usually high when the 0% APR period ends, so before signing up for an 0% APR credit card, make sure you are aware of the rate after the promotional period ends.
Students Need Credit Cards!
If your teenager is begging for a credit card, it's time to listen! Student credit cards are a great way for high school and college students to establish credit worthiness. Many credit card companies offer student credit cards at no annual fee and many offer rewards, cash back, and a low or 0% introductory APR. Having a student credit credit card has many benefits for your teenager. Besides helping him/her build credit, student credit cards also provide a line of credit for necessary school items such as book, school supplies, and even groceries.
Student credit cards do have some drawbacks. These type of credit cards usually carry a higher APR due to bad or no credit usually associated with student credit card users. Thus, liberal spending without paying the card's full balance could result in hefty finance charges and / or long repayment terms. The ideal situation for a student is to use the credit card like they would cash. Paying the full balance every month establishes credit worthiness and avoids unnecessary payments on interests, defaults, and more.
If your teenager can learn to be financially responsible with a student credit card, that will be one valuable lesson they leave home with.
Student credit cards do have some drawbacks. These type of credit cards usually carry a higher APR due to bad or no credit usually associated with student credit card users. Thus, liberal spending without paying the card's full balance could result in hefty finance charges and / or long repayment terms. The ideal situation for a student is to use the credit card like they would cash. Paying the full balance every month establishes credit worthiness and avoids unnecessary payments on interests, defaults, and more.
If your teenager can learn to be financially responsible with a student credit card, that will be one valuable lesson they leave home with.
Friday, February 29, 2008
Credit Cards Making Transportation on the PATH Easy
Early 2009, New York and New Jersey commuters will have an easier way to travel on the PATH trains. MasterCard and NJ Transit are planning an eight-month pilot test that allows riders to use contactless bank cards, key fobs, cell phones and other devices to pay their fares on the PATH, a train which connects Manhattan and New Jersey. According to the Port Authority, the scope of the test is to determine if customers could ultimatly use these devices to pay fares on all of the region's transit system.
MasterCard is in charge of developing, installing and testing the system before the trial begins. MasterCard was selected through a publicly advertised solicitation process because its proposal was the highest rated and lowest cost. Port Authority Executive Director Anthony E. Shorris said, “This is all about making life easier for our customers. The region’s diverse workforce relies on our extensive mass transit network to commute and we need to find a way to take a bit of the hassle out of trips that often span two or three separate systems. We are looking for simple fare payment solutions that will work everywhere. This is a step in that direction, and it’s the right direction to go.”
Only time will tell if the test will be successful or if it will have the same fate as the now outdated subway token.
MasterCard is in charge of developing, installing and testing the system before the trial begins. MasterCard was selected through a publicly advertised solicitation process because its proposal was the highest rated and lowest cost. Port Authority Executive Director Anthony E. Shorris said, “This is all about making life easier for our customers. The region’s diverse workforce relies on our extensive mass transit network to commute and we need to find a way to take a bit of the hassle out of trips that often span two or three separate systems. We are looking for simple fare payment solutions that will work everywhere. This is a step in that direction, and it’s the right direction to go.”
Only time will tell if the test will be successful or if it will have the same fate as the now outdated subway token.
Identity Theft - What to Do
Identity Theft has become an issue of major concern in past years. If you have become a victim of identity theft there are steps you can take to protect your good name and, more importantly, your credit.
Place a Fraud Alert on Your Credit Reports
The three major credit reporting agencies have a fraud victim reporting service that allows victims of identity theft to file a report (basically a police report) that blocks fraudulent information from their credit report. The credit reporting company that is alerted must then relay the information to the other two credit reporting companies and the financial institutions that sent the fraudulent information. You are also entitled to a free credit report from all of the credit reporting agencies once you have filed a fraud alert. It would be a good idea, at this point, to request a credit report from all three agencies and review it carefully for more information that might be fraudulent.
Equifax
PO Box 740241
Atlanta, GA 30374-0241
1-800-525-6285
www.equifax.com
Experian
PO Box 9532
Allen, TX 75013
1-888-Experian (397-3742)
www.experian.com
TransUnion
PO Box 6790
Fullerton, CA 92834-6790
1-800-680-7289
www.transunion.com
In addition to submitting a report to a credit reporting agency you'll need to send a report to the information providers (bank, credit card company, etc.) that relayed the fraudulent information. Be sure to include the necessary information to identify yourself (name, address, etc.) and explain, in detail, the accounts that have been activated or used fraudulently.
If the report is accepted by the credit reporting company (they must notify you if they don't) they will place a block on credit reporting information that comes from those accounts. The same goes for the information providers. In addition, information providers can not collect on the debt that is believed to be fraudulent or sell it to another company to collect once they accept the report of identity theft.
For credit fraud specific to credit cards it is necessary to exercise your rights granted under the Fair Credit Billing Act. This states that any consumer's liability is limited to $50 per credit card containing fraudulent usage. To take advantage of this you must:
Write to your credit card company's "Billing Inquiries" address (not the same address that you send payments to). Include all pertinent information like your name, address, account number and any dates and amounts that refer to fraudulent activity on your account. Your letter must reach the creditor within 60 days of the disputed charge. In most cases it's recommended to send a certified letter and obtain receipt notification so there's proof you sent the letter.
When the credit card company receives your letter they have 30 days to acknowledge it. From there they have two billing cycles (no more than 90 days) after receiving the letter to fix the billing error or fraudulent activity.
Identity theft can happen to anyone, anywhere. However, by taking the proper steps you can both prevent future identity theft and relieve responsibility for the fraudulent debt you have become victim to.
Place a Fraud Alert on Your Credit Reports
The three major credit reporting agencies have a fraud victim reporting service that allows victims of identity theft to file a report (basically a police report) that blocks fraudulent information from their credit report. The credit reporting company that is alerted must then relay the information to the other two credit reporting companies and the financial institutions that sent the fraudulent information. You are also entitled to a free credit report from all of the credit reporting agencies once you have filed a fraud alert. It would be a good idea, at this point, to request a credit report from all three agencies and review it carefully for more information that might be fraudulent.
Equifax
PO Box 740241
Atlanta, GA 30374-0241
1-800-525-6285
www.equifax.com
Experian
PO Box 9532
Allen, TX 75013
1-888-Experian (397-3742)
www.experian.com
TransUnion
PO Box 6790
Fullerton, CA 92834-6790
1-800-680-7289
www.transunion.com
In addition to submitting a report to a credit reporting agency you'll need to send a report to the information providers (bank, credit card company, etc.) that relayed the fraudulent information. Be sure to include the necessary information to identify yourself (name, address, etc.) and explain, in detail, the accounts that have been activated or used fraudulently.
If the report is accepted by the credit reporting company (they must notify you if they don't) they will place a block on credit reporting information that comes from those accounts. The same goes for the information providers. In addition, information providers can not collect on the debt that is believed to be fraudulent or sell it to another company to collect once they accept the report of identity theft.
For credit fraud specific to credit cards it is necessary to exercise your rights granted under the Fair Credit Billing Act. This states that any consumer's liability is limited to $50 per credit card containing fraudulent usage. To take advantage of this you must:
Write to your credit card company's "Billing Inquiries" address (not the same address that you send payments to). Include all pertinent information like your name, address, account number and any dates and amounts that refer to fraudulent activity on your account. Your letter must reach the creditor within 60 days of the disputed charge. In most cases it's recommended to send a certified letter and obtain receipt notification so there's proof you sent the letter.
When the credit card company receives your letter they have 30 days to acknowledge it. From there they have two billing cycles (no more than 90 days) after receiving the letter to fix the billing error or fraudulent activity.
Identity theft can happen to anyone, anywhere. However, by taking the proper steps you can both prevent future identity theft and relieve responsibility for the fraudulent debt you have become victim to.
Tuesday, February 26, 2008
What Does One Have to Do for a Better Credit Card Around Here?
Many of you have been asking the same question and it's probably on all of our minds: If interest rates are going down, why are my credit card rates going up? I got several notices in the mail from my credit card issuers with some very bad news. Their credit card rates are about to rise and in some case the rates are doubling, tripling, and then some!
Much of our audience has shared similar stories. But for every negative story, I receive a positive- a story of persistence with a happy ending, a lower rate. So, I decided to try some of the methods and report back to you with what worked and what didn't work. Perhaps with this information we can all lock in low rates, at least until the next billing cycle.
Out of the bunch of notices, I picked one at random- this card’s (we won’t name names) interest rate will climb to 15%, so much for my low APR card. I was curious how the company would justify this absurd change so I just called them. I spoke to a nice representative who kindly told me this was the lowest rate available at the time. I pulled out every trick in the book, telling them competitors were offering lower rates and explaining that it was low rates that attracted me to their company in the first place. No luck- she just repeated the same sentence as before. I thought of telling her she will hear from my lawyer but a) they haven’t done anything illegal and b) that line never works. So, as a last resort, I told her I’d like to close my account. Boy that got her attention. After a few moments on hold, she came back to say she can knock the rate down in half and even offered a six month extension to my current low interest rate.
So go ahead, give it a try, what have you got to lose except a high interest rate?
Much of our audience has shared similar stories. But for every negative story, I receive a positive- a story of persistence with a happy ending, a lower rate. So, I decided to try some of the methods and report back to you with what worked and what didn't work. Perhaps with this information we can all lock in low rates, at least until the next billing cycle.
Out of the bunch of notices, I picked one at random- this card’s (we won’t name names) interest rate will climb to 15%, so much for my low APR card. I was curious how the company would justify this absurd change so I just called them. I spoke to a nice representative who kindly told me this was the lowest rate available at the time. I pulled out every trick in the book, telling them competitors were offering lower rates and explaining that it was low rates that attracted me to their company in the first place. No luck- she just repeated the same sentence as before. I thought of telling her she will hear from my lawyer but a) they haven’t done anything illegal and b) that line never works. So, as a last resort, I told her I’d like to close my account. Boy that got her attention. After a few moments on hold, she came back to say she can knock the rate down in half and even offered a six month extension to my current low interest rate.
So go ahead, give it a try, what have you got to lose except a high interest rate?
Wednesday, February 20, 2008
Teach Your Teen Financial Responsibility
One of the most important things you can do for your teenager before he/she leaves home is to teach them basic financial responsibility. If your child can manage their own money, they will build good credit, have a better standard of living, won’t bother you for cash, and will have the freedom to choose their own path upon graduating college without worrying about sinking into the world of credit card debt.
Avoiding Credit Card Debt
Credit card debt is like a financial leg shackle; it follows you wherever you go. Help your teen avoid credit card debt troubles by teaching smart budgeting techniques. Once your child is away from home, they should be able to break down their monthly bills like this:
• cell phone bill ($50)
• car payment ($220)
• insurance ($100)
• rent ($475)
In this example, the student knows they need to set aside $845 each month for necessities. Realizing how much money goes into the basics will help them cut down on the “wants” like video games, trendy clothing, cable, etc. When I was in college, my parents paid the “needs,” and I had to get a job if I was to afford the “wants”. Prioritizing and budgeting the “wants” is important as well. Teach your teen to be realistic about what he/she can afford at the moment. Many companies, such as furniture stores and car dealerships, offer deceiving deals “Pay nothing for 12 months” or “Zero down financing,” which tempt buyers with the ease of credit and instant gratification of purchasing without taking money out of the wallet today. Often times, this leads to high interest rates and payments down the road which the student may have lacked to take into account.
Encourage Credit Building
Staying away from credit card debt and staying away from credit cards are two different things. Do educate your teen about the importance of building good credit. If you need a few pointers, refer to You Think You Don’t Need a Credit Card?, because shying away from credit cards is not the answer. Credit cards provide an unmatched level of convenience. They also help build good credit when used responsibly. And if your child is moving away from home, there is no easier way to wire them money in case of an emergency. Together with your teen, check out our student credit cards and view the options.
Many of our student credit cards feature no annual fees and many offer rewards, cash back, and a low or 0% introductory APR. However, student credit cards usually carry a higher than normal APR due to bad or no credit usually associated with student credit card users. This is where learning to budget becomes important. The ideal situation for a student is to use the credit card like they would cash. Paying the full balance every month establishes credit worthiness and avoids unnecessary payments on interests and defaults.
Teaching your teen financial responsibility is one of life's most important lessons so don't delay it another day!
Avoiding Credit Card Debt
Credit card debt is like a financial leg shackle; it follows you wherever you go. Help your teen avoid credit card debt troubles by teaching smart budgeting techniques. Once your child is away from home, they should be able to break down their monthly bills like this:
• cell phone bill ($50)
• car payment ($220)
• insurance ($100)
• rent ($475)
In this example, the student knows they need to set aside $845 each month for necessities. Realizing how much money goes into the basics will help them cut down on the “wants” like video games, trendy clothing, cable, etc. When I was in college, my parents paid the “needs,” and I had to get a job if I was to afford the “wants”. Prioritizing and budgeting the “wants” is important as well. Teach your teen to be realistic about what he/she can afford at the moment. Many companies, such as furniture stores and car dealerships, offer deceiving deals “Pay nothing for 12 months” or “Zero down financing,” which tempt buyers with the ease of credit and instant gratification of purchasing without taking money out of the wallet today. Often times, this leads to high interest rates and payments down the road which the student may have lacked to take into account.
Encourage Credit Building
Staying away from credit card debt and staying away from credit cards are two different things. Do educate your teen about the importance of building good credit. If you need a few pointers, refer to You Think You Don’t Need a Credit Card?, because shying away from credit cards is not the answer. Credit cards provide an unmatched level of convenience. They also help build good credit when used responsibly. And if your child is moving away from home, there is no easier way to wire them money in case of an emergency. Together with your teen, check out our student credit cards and view the options.
Many of our student credit cards feature no annual fees and many offer rewards, cash back, and a low or 0% introductory APR. However, student credit cards usually carry a higher than normal APR due to bad or no credit usually associated with student credit card users. This is where learning to budget becomes important. The ideal situation for a student is to use the credit card like they would cash. Paying the full balance every month establishes credit worthiness and avoids unnecessary payments on interests and defaults.
Teaching your teen financial responsibility is one of life's most important lessons so don't delay it another day!
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