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Only time will tell if the test will be successful or if it will have the same fate as the now outdated subway token.
Friday, February 29, 2008
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!
Tuesday, February 19, 2008
You Think You Don’t Need a Credit Card?
Credit- we hear the word daily and some of us cringe at the thought of being indebted to someone. Instead we spend what we have and avoid acquiring debt. But at the same time we avoid acquiring credit. Others like the convenience of credit cards but don’t see what the big deal is with credit ratings. Late bills pile up and credit score points are dropping as they make one disastrous mistake after another. Living without credit or with bad credit will hurt you in the future because credit is used in so many facets of life. Living with no credit or with bad credit is not that different so either situation may put a serious damper on more than just your finances.
Credit plays many roles in your everyday life. In Denied! we discussed how difficult it has become to be approved for a great credit card. The truth is you do need to have good existing credit to qualify for reward cards or 0% APR credit cards.
Drive around much? Good credit also comes handy when you are renting, leasing, buying, financing or insuring a car. At best, without good credit, you will have to pay higher interest rates, but in many cases if you can’t prove you are financially responsible, you don’t get the lease. Of course these rules extend to bigger ticket items too, like your home. If you want to rent an apartment, a credit check will be performed and if you have a record of delinquency, no lease for you. If you want to buy a house with zero or bad credit, your interest rates will be a lot higher than if you had good credit. Over time, this adds up to a lot of money.
But zero credit or bad credit doesn’t only prevent you from acquiring material things. It extends to career choices as well. Potential employers often run credit checks to ensure they are hiring a responsible person. Don’t limit yourself in the job market. If you plan to be in involved in finance, accounting, or banking, your credit report needs to be flawless.
If you don’t have credit or have less than perfect credit, now is the time to start raising that score. For easy tips on improving your credit quickly, please read Speedy Credit Improvement.
Credit plays many roles in your everyday life. In Denied! we discussed how difficult it has become to be approved for a great credit card. The truth is you do need to have good existing credit to qualify for reward cards or 0% APR credit cards.
Drive around much? Good credit also comes handy when you are renting, leasing, buying, financing or insuring a car. At best, without good credit, you will have to pay higher interest rates, but in many cases if you can’t prove you are financially responsible, you don’t get the lease. Of course these rules extend to bigger ticket items too, like your home. If you want to rent an apartment, a credit check will be performed and if you have a record of delinquency, no lease for you. If you want to buy a house with zero or bad credit, your interest rates will be a lot higher than if you had good credit. Over time, this adds up to a lot of money.
But zero credit or bad credit doesn’t only prevent you from acquiring material things. It extends to career choices as well. Potential employers often run credit checks to ensure they are hiring a responsible person. Don’t limit yourself in the job market. If you plan to be in involved in finance, accounting, or banking, your credit report needs to be flawless.
If you don’t have credit or have less than perfect credit, now is the time to start raising that score. For easy tips on improving your credit quickly, please read Speedy Credit Improvement.
Tuesday, February 12, 2008
Denied!
Applied for a credit card and got denied? Don't worry, you are not alone. You're one of thousands of Americans that has recently applied for a card and failed to get approved. It has gotten increasingly difficult for consumers to get approved for credit cards as banks and credit card companies use personal information to decide whether or not you're worthy of credit.
Credit card companies and banks are now using more personal data and payment records than ever before when they are deciding whether or not to approve a credit request. Things that had little or no effect on a credit rating as recent as last year are now becoming the sole reason for a denial notice. So you may want to rethink delaying that payment on your cell phone bill! Banks and credit card companies can access your cell phone payment records, mail-order payment records, bank overdrafts and other forms of credit. Some companies can even find out whether you have been paying your rent on time.
Given these recent credit card findings, it becomes increasingly important to pay all of your bills in a timely manner and remember to never pay less than the minimum. Budget all other expenses accordingly so you do not find yourself unable to get approved for a good credit card.
Having the right card makes all the difference. To find out more about credit cards and see if you qualify, visit Credit Card Details.
Credit card companies and banks are now using more personal data and payment records than ever before when they are deciding whether or not to approve a credit request. Things that had little or no effect on a credit rating as recent as last year are now becoming the sole reason for a denial notice. So you may want to rethink delaying that payment on your cell phone bill! Banks and credit card companies can access your cell phone payment records, mail-order payment records, bank overdrafts and other forms of credit. Some companies can even find out whether you have been paying your rent on time.
Given these recent credit card findings, it becomes increasingly important to pay all of your bills in a timely manner and remember to never pay less than the minimum. Budget all other expenses accordingly so you do not find yourself unable to get approved for a good credit card.
Having the right card makes all the difference. To find out more about credit cards and see if you qualify, visit Credit Card Details.
Monday, February 4, 2008
Silly Mistakes That Will Ruin Your Credit Score
Having a bad credit score can affect your interest rates, loan approvals and even rental applications. Avoid the following mistakes or else you will find that financial irresponsibility can cost a pretty penny.
Co-signing loans for family and friends who are not reliable with bill paying-
If the person whom you signed for misses payments or stops making them all together, it can ruin your credit. Additionally, if the person fails to give you fair warning, you may only discover the mishap when it's too late and the damage has already been done.
Questions? Want to find out more about your credit options? Visit us at Credit Card Details and find the perfect credit card for you!
Co-signing loans for family and friends who are not reliable with bill paying-
If the person whom you signed for misses payments or stops making them all together, it can ruin your credit. Additionally, if the person fails to give you fair warning, you may only discover the mishap when it's too late and the damage has already been done.
Ignoring your bills- Even if you think they are incorrect, they should never be ignored. Call the entity to avoid them sending the bill to a collections agency. Ignoring bills will cause your mortgage company, utilities company, phone company, credit card companies, etc. to inform the three major credit reporting bureaus that you’re not paying your bills. Your credit score will tank. If you are backed in a corner and cannot afford to pay the bills on time, it is worth making a phone call and being honest. Sometimes they are understanding and will strike a deal with you.
Applying for multiple credit cards and lines of credit at once- Having too many new accounts, all opened around the same time, will lower your average account age. This will have a large effect on your score if you don't have a lot of other credit established. Also, rapid account buildup can look risky if you are a new credit user.
Avoiding Credit Cards altogether- Credit cards help you build and establish credit, if you are responsible by paying your bills on time. Someone with no credit cards, tends to be higher risk than someone who has managed credit cards responsibly.
Maxing out your credit cards- Generally, it is a good idea to keep credit cards away from their limit to avoid the risk of late payments. High balances lower credit scores so do not get yourself backed into a corner with bills higher than you can pay on time. FICO, the most widely used credit score system agrees. FICO's model is heavily influenced by your credit utilization ratio. This is the portion of your available credit limit you're actually using. The formula likes to see a wide gap between your balances and your limits.
Questions? Want to find out more about your credit options? Visit us at Credit Card Details and find the perfect credit card for you!
Friday, February 1, 2008
The Store Credit Card- To Get or Not To Get- That is the Question
Folks often ask me about store credit cards. Are they a good deal? Are they the same as a bank credit card? In today's entry I just want to give some insight into this mystery card and let you decide if it fits your lifestyle and your wallet.
The Store Credit Card
So you are at the check out counter at a swanky clothing store and the clerk asks you if you'd like to save 15% of your purchase today. "Sure," you are quick to answer. After all 15% off those ridiculously priced jeans is almost enough to feed a small country. Huh, finding the perfect fit jeans AND having money left over to donate to charity- that's what I call successful shopping! "All you have to do is sign up for our exclusive credit card," the clerk chimes in, ruining your perfect humanitarian daydream.
Every time you hear the store credit card pitch, it's pretty tempting, but consider the following before rushing to sign up. Store credit cards often charge interest rates that are substantially higher than those of a regular credit card so if you are not the type to pay bills in whole as they come, a store credit card may not be for you. Additionally, keep in mind that having too many credit cards or frequently closing accounts can damage your credit score. So if you are working to build or improve credit, you may want to visit Credit Card Details to find a low interest credit card instead.
On the other hand, if you have a good credit score, pay bills on time, and there is a store you find yourself shopping at all the time, it may be worth it to get the store credit card. Many store credit cards are beneficial because they offer deals such as a discounts and continuing perks for exclusive card holders.
Questions? Want to find out more about your credit options? Visit us at Credit Card Details and find the perfect credit card for you!
The Store Credit Card
So you are at the check out counter at a swanky clothing store and the clerk asks you if you'd like to save 15% of your purchase today. "Sure," you are quick to answer. After all 15% off those ridiculously priced jeans is almost enough to feed a small country. Huh, finding the perfect fit jeans AND having money left over to donate to charity- that's what I call successful shopping! "All you have to do is sign up for our exclusive credit card," the clerk chimes in, ruining your perfect humanitarian daydream.
Every time you hear the store credit card pitch, it's pretty tempting, but consider the following before rushing to sign up. Store credit cards often charge interest rates that are substantially higher than those of a regular credit card so if you are not the type to pay bills in whole as they come, a store credit card may not be for you. Additionally, keep in mind that having too many credit cards or frequently closing accounts can damage your credit score. So if you are working to build or improve credit, you may want to visit Credit Card Details to find a low interest credit card instead.
On the other hand, if you have a good credit score, pay bills on time, and there is a store you find yourself shopping at all the time, it may be worth it to get the store credit card. Many store credit cards are beneficial because they offer deals such as a discounts and continuing perks for exclusive card holders.
Questions? Want to find out more about your credit options? Visit us at Credit Card Details and find the perfect credit card for you!
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