Credit Card Debt - What Do Americans Really Owe?

PORT CHARLOTTE, Fla.--(BUSINESS WIRE)--According to a new survey released today by CardTrak.com(R), the median
amount of credit card debt carried by Americans is about $6,600 while
the mean (or average) credit card debt load is nearly $9,900.

Based on an online poll of slightly more than 55,000 consumers that
concluded in April, 61% said they carryover debt each month on their
credit cards, while 31% said they pay-off balances monthly and 7% stated
they have no credit cards.

Of cardholders carrying debt, over 64% had balances under $10,000.
However, an astonishing 13% of the same group said they carry total
credit card balances in excess of $25,000.

Robert B. McKinley, head of CardTrak.com, says, "While the average
working stiff may revolve between $6,000 and $7,000 each month, the
nation is bloated with credit card high-rollers who carry five-figure
balances."

McKinley notes there has been much debate about the definition and
calculation of U.S. credit card debt. However, the CardTrak.com poll
results confirm the latest industry data.

At the end of 2006, Americans owed $745 billion on general purpose
credit cards including $641 billion on VISA(R)/MasterCard(R) cards, and
$104 billion on American Express(R)/Discover(R) cards, according to
CardWeb.com ().
Consumers also owed an estimated $105 billion on limited purpose cards
or store/gas credit cards. In total, American cardholders owed $850
billion on all credit cards as of December 31, 2006, according to
CardWeb.com ().

Furthermore, the latest revolving credit figures released by the Federal
Reserve show Americans owed $888 billion in March, which includes lines
of credit attached to checking accounts.

Of the $850 billion in credit card debt, about 18% is paid-off each
month without incurring interest charges and about 3% is revolving
business credit card debt, according to CardData ().
Discounting interest-free and commercial debt, Americans are revolving
about $672 billion on all credit cards.

Of the nation's 111 million households, about 7% have no credit cards
and 21% do not have a general purpose or major credit card. Discounting
those who have no credit cards and those who only have a low balance
store or gas credit card, there are 88 million households using credit
cards today. Therefore, average credit card debt is $9659 per household
($850 billion/88 million).

If the universe is limited to households that carry balances forward
each month, then the assumption could be made that 61% of the 111
million households, or 68 million, revolve their credit card debt
monthly. In this calculation the average credit card debt is $9882 per
household ($672 billion/68 million).

McKinley says, "No matter how you slice or dice it Americans owe a
significant amount on their credit cards and with rising interest rates
the annual debt service cost per household is now approaching $1500."

Survey results, as well as historical data, is available to qualified
members of the news media via CardTrak.com's CardFacts service.

About CardTrak.com

CardTrak.com, ,
is the nation's most established and most trusted credit card advisory
service for consumers. Since 1986 CardTrak has educated millions of
consumers via printed publications on where to find the best credit
cards and how to get the most from their credit cards. An Internet
pioneer in 1995, CardTrak.com continues to provide the most
comprehensive, objective service for consumers to learn, search and
compare credit card offers and benefits. CardTrak follows credit cards,
debit cards, gift cards, and smart cards. CardTrak.com's free services
include daily credit card news, commentary, alerts, FAQs, tools, tips,
calculators, incentives, perks, statistics, polls, glossary, terms,
keyword search, and sweepstakes. CardTrak is a registered trademark of
CardTrak LLC. Professor Cardworthy, Professor Cardworthy's Corner and
Cardworthy are trademarks of CardTrak LLC. CardTrak LLC is a
privately-held company headquartered in Port Charlotte, Florida with
branch offices nationwide.

Koreans' Overseas Credit Card Spending Hits Record High

The amount of money that Koreans charge to their credit cards overseas is snowballing every year. That's mainly because the number of Koreans who travel overseas is surging by 20 percent every year, and they're spending more because of the stronger won.

The Bank of Korea announced Tuesday that the amount of South Korean residents' overseas credit card spending reached US$1.45 billion in the first quarter this year. That's a new record high, and an increase of 34.3 percent year-on-year.

The number of Koreans who used credit cards overseas in 2006 totaled 1.97 million, up 23.8 percent compared with the same period last year. Each person spent an average of $712 via credit card, up 8.5 percent from a year earlier.

The number of Koreans who went to foreign countries increased by 20.2 percent to 3.31 million, and Koreans are spending more since the U.S. dollar depreciated nearly four percent against the won, the central bank said. Overseas credit card spending by Koreans is increasing by 30 percent every quarter year-on-year regardless of seasonal factors such as vacations or holiday seasons.

However, credit card spending by foreign visitors in Korea is declining, since their number has decreased and prices in Korea are higher due to the strong won. In the first quarter, credit card spending in Korea by foreigners fell by 4.1 percent to W497 million (US$1=928) year-on-year. Each foreigner spent an average of $405 via credit card. That's 57 percent less than the $712 that each Korean charged overseas during the same period. Until 2000, Koreans and foreigners spent similar amounts of money in and out of Korea.

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ICBC expects Chinese credit card use to jump 40%-50%

- Industrial and Commercial Bank of China Ltd (ticker: ICK) Monday said that it expects expenditure by credit cards in China to rise by 40%-50% in the current year.The largest commercial lender in China said total credit card expenditure this year should rise to between 140 billion yuan and 150 billion yuan, from about 100 billion yuan in the previous year. The head of Industrial and Commercial Bank of China’s credit card centre, Li Weiping, said that the company had issued 15 million credit cards, representing a 27% market share. Weiping added that the company hopes to raise its market share in the upcoming years.

New law targets high credit card rates

(AP) - A bill banning "universal default clauses" that have enabled some credit card issuers to boost interest rates by 30 percent or more was signed into law Friday by Gov. Jim Gibbons.SB302 targets clauses that enable some credit card companies to boost interest rates if a customer misses a payment on a completely separate account.The bill was sponsored by Senate Minority Leader Dina Titus, D-Las Vegas, who described the interest-raising tactics as "outrageous and unbelievable." Titus said most cardholders aren't even aware of the clauses.Several large banks, including Citibank and Chase, recently rolled back or eliminated universal default clauses due to political pressure in Congress. At least five bills are pending in Congress that would further tighten regulations on credit cards.Nevada joins a handful of states that have banned universal default clauses. Many Nevada consumers still aren't protected since the U.S. Supreme Court has ruled that states can't regulate banks that are based out-of-state - and most cards are issued by such banks.Other measures signed Friday by Gibbons include:• AB217, which requires one of the at-large members of the State Environmental Commission to have expertise and experience as an advocate for conservation issues.• AB6, which allows counties to negotiate discount prescription drug contracts.• AB575, repealing an obsolete statute on county workhouses for indigents.

Franklin Debt Relief Reveal Unfair Practices of Credit Card Companies which are Pushing Consumers Further into Debt

(PRLEAP.COM) Chicago, IL 20 May 2007 – Today Debt Relief firm Franklin Debt Relief ( ) have unveiled their opinion on the practices of credit card companies in dealing with credit card users. The credit card industry asks that consumers accept contracts that are excessively one-sided according to Franklin Debt Relief. Often contractual terms which are included by credit card companies are against federal and state law, and as such they could not be enforced in court. As part of Franklin Debt Relief’s strong stance against the credit card industry they wish to put an end to onerous contracts of this nature by imposing fines for such behavior which they claim is merely there to scare consumers. Bobby Zangrilli, of Franklin Debt Relief ( ) commented: "Changes in bankruptcy law now mean that a person’s legal right to be stripped of all assets in turn for being stripped of all liabilities is a practice that is well known to be a last resort for both consumers and businesses that find themselves in unmanageable amounts of debt. However, this legal right made it difficult for credit card companies to promote financial products that were unsecured, because consumers would have a means by which to escape if they could not pay that debt. Now thanks to changes in legislation that was heavily pushed by the credit card industry, that option has become a lot more difficult to implement for consumers. At the same time as this, credit card companies offer special deals for students and unsecured credit cards at high interest rates which is, in our opinion, unethical and an altogether altruistic way of doing business" Franklin Debt Relief also feel that charges levied by credit card companies are unfair because they grossly overvalue the expenses that they cause, and that instead of being made widely known in abbreviated overview documents, they remain buried under pages upon pages of standard terms until such time as they wish to start issuing them. Bobby Zangrilli went on to say: "It is only when a person is in financial trouble that they become aware of the charges that they have to pay. At that point they are too far involved and it becomes impossible for them to avoid these additional charges. At Franklin Debt Relief ( ) we believe that these terms should have to be made more prominent to consumers and also that legislation should be put in place to cap these charges." About Franklin Debt Relief Franklin Debt Relief ( ) is a debt relief company based in Chicago that specialized in debt relief and debt settlement, where by they reduce personal debts by negotiating, on behalf of consumers, with creditors.

Esprit Financial Group Inc. (Esprit) (EFGO.PK) Announces Strategic Marketing Alliances for the "Cash Now Card"

LAS VEGAS, May 23 /PRNewswire-FirstCall/ -- Esprit Financial Group Inc. (ESPRIT) (EFGO.PK) http://www.espritfinancialgroup.com/ is pleased to announce that it has reached an agreement in principle with several major credit card issuers through their agents for access to their data base of credit card applicants who have been refused or denied (DRC) regular credit cards. Esprit has been given permission to access and mine the data to solicit new customers for its Cash Now prepaid credit card products of its Advanced Electronic Funds Management (AEFM) division. These consumers have been denied credit and labeled DRC for various reasons, ranging from poor credit history or negative credit remarks to name a few. The size of the DRC database is literally millions of credit card applicants. Mr. Winters, Esprit's CEO has said "Simply put, the entire database would be just too overwhelming for Esprit's needs at this time. We are most definitely interested in taking on as much as we can handle, in an effort to speed up our goal of 50,000 subscribers. Traditionally the conversion rate of the DRC applications to prepaid credit cards is quite high, as the applicants credit denial notice from the issuing bank does not resolve the fact that they still need Visa or a Master Card type services." Esprit prepaid credit card solutions offer credit card applicants advanced features not usually available on traditional prepaid credit cards. A good example is our ability to offer the DRC client a micro loan through our Payday Loan division. This feature should enable Esprit to convert a higher ratio of applicant DRC prospects than industry guidelines. Prepaid credit cards generate excellent margins, and minimal credit risk, due to the fact that the credit limits of each card are based on funds deposited by the cardholder. The data mining analysis of the database of DRC clients will be optimized to search for DRC applicants that would be candidates to cross-market other financial service solutions from the AEFM portfolio. Many DRC clients may be interested in Esprit's EM2 products that would allow them to transfer funds to family and relatives abroad. Esprit's financial solutions for this market are at the very leading edge of the industry, allowing quick transit times for the funds and lower transfer fees than options such as Western union. Another important aspect of the Cash Now card prepaid credit card is the fact that these products continue to generate a recurring monthly stream of revenue over extended periods of time. This creates a compounding monthly revenue stream as Esprit builds its base of cardholders over the next few years, i.e., if the Company adds 500 new customers per month over a period of 12 months, by year-end there will be 6,000 prepaid credit cards generating monthly income. The fee for use of the DRC data mine is contingent upon the size of the order, recency of the applications and other factors and will be paid in cash from Esprit's operational funds. In closing, Esprit CEO Garr Winters added: "Our AEFM division continues to ramp up operations for our various International financial services on a fast track basis. We are ahead of schedule on a number of products and financial services, and will be endeavoring to launch sales and marketing initiatives for some of these products ahead of our initial estimates of the third quarter of this year. The obvious goal is to bring these revenue streams online as quickly as possible." Esprit management projects that the Cash Now Card division should be in a position to attract 50,000 to 100,000 customers within the next 18 to 24 months. This product should, by our estimates, be capable of generating about $1.5 to $2.0 million in revenue on an annualized basis at the end of this time frame. Esprit Financial Group, Inc. is currently featured at AudioStocks.com, StockGuru.com and Wallstreetreporter.com, where profiles and other information may be obtained. About Esprit Financial Group Inc. Esprit Financial Group Inc, is a public company engaged in a diversified number of online financial services. It is traded on the Pink Sheets and Frankfurt exchanges. PayDay Loans: The Company is a pioneer in the payday loan industry, and continues to develop the most comprehensive menu of services in the cash advance industry and will retain the Cash Now brand for many of these services. Under the Cash Now banner http://www.cashnow.org/ . The Company also operates http://www.cashnow.net/ , which generates leads of consumers looking for payday loans on behalf of our licensees. Forex: Additionally, the Company's Forex Trading division offers an innovative low-cost online Forex trading service at http://www.cashnow.com/ . The Company acts as an Introducing Broker for Advanced Markets, Inc., and is targeted to serious day traders. Advanced Electronic Funds Management: The Company's Advanced Electronic Funds Management (AEFM) division offers Cash Now Check 21 - an advanced checking clearing service that can significantly reduced holdback periods by banking institutions, particularly valuable for international markets. Its EM2 (Electronic Money Management System) product is a comprehensive e-wallet capable of managing multiple bank accounts, remitting funds worldwide and provide banking capabilities to consumers without requiring that they have a bank account. Structured Debt Resolution: This division will offer services that allow banks, financial institutions and other creditors to invite defaulted clients to negotiate a settlement online, in a neutral and non-confrontational manner, bypassing traditional collection calls and mail delivered notices of default. Safe Harbor Statement Information in this press release may contain 'forward-looking statements.' Statements describing objectives or goals or the Company's future plans are also forward-looking statements and are subject to risks and uncertainties, including the financial performance of the Company and market valuations of its stock, which could cause actual results to differ materially from those anticipated. Forward-looking statements in this news release are made pursuant to the 'Safe Harbor' provisions of the United States Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including, without limitation, risks relating to the ability to close transactions being contemplated, risks related to sales, continued acceptance of Esprit Financial Group's products, increased levels of competition, technological changes, dependence on intellectual property rights and other risks detailed from time to time in Esprit Financial Group's periodic reports filed with the regulatory authorities. Esprit Financial Group CONTACT: cashnowcorp@cashnow.com , Investor Relations: (416) 619-0397

Credit: Student Credit Cards 101

Almost all students have and use student credit cards. Some of the students use them wisely and build for them an early credit history but others accumulate lots of debts that would have to be paid off once the student life is over. Students that have a credit card should learn how to take charge and manage their own finances as soon as possible, because the time between teen years and adulthood is very short. So, the sooner a student starts managing his own financial matters the sooner he will develop useful financial skills. Student credit cards are no longer a privilege for wealthy students but now are considered a social entitlement.

A student can very easily obtain a student credit card. Offers for student credit cards are everywhere students are: in campuses, at social functions, in their mail boxes, in bookstores, etc. That is because credit companies consider students to be good customers. First of all they are loyal; once a student obtains a credit card, he is likely to keep this particular card for years to come and instead of getting other new cards they upgrade it every time they fill the need to do it. Nowadays, the conditions to obtain a student credit card are very weak, so more and more students have access to them even though they don’t have a steady source of income. And this is a second reason why credit card companies offer more and more credit cards to students: they usually can’t repay their debts in time. And this is what credit cards companies rely on; they make lots of money from late payment penalties, interest fees on unpaid credit card balances, annual fees and more. So, students that don’t repay their credit card balances in full each month are the best customers.

Every college freshman wants to have at least one credit card because it will help him very much during his college years; the student will be able to rent a car, buy books or concert tickets, provide himself help with medical or other emergencies and more. Apart from financial help during college years, student credit cards offer other types of help by building a credit history. Credit history is the record of all that happens in your financial situation throughout the years. Credit scoring is a system based on all that happens to your accounts: late payments, bill paying history, number and type of accounts, outstanding debts and more. If the credit history and scoring are good the student will more easily obtain a house or a car loan, certain types of financial jobs, insurance premiums and more other benefits. So, the student must pay his bills in full or in time, in order to benefit later of their first years of credit history.

The most difficult thing for a student is to choose from the large number of student credit card offers. And the best way for a student to choose a credit card for himself is to talk to other students and get advice from the ones that already have and use a credit card and compare credit card offers online. Before choosing a credit card, the student must be aware of the card’s terms of use. Most student that already have a credit card recommend for the others a card with no annual fee and the option to limit the amount to be spent. And apart from these safety measures, wise students that think of their financial future often take a personal finance course in order to learn all kinds of financial management skills that will help them throughout their entire life.

Students must be very careful when using their student credit cards; they always have to be cautious about the amount charged on the credit card and, at the end of the month, to review the amount of interest they have to pay monthly. It is also recommendable that the credit card balance to be paid as soon as received. If for some reason the balances cannot be paid in full, the student must pay at least the minimum payment required. If problems with paying the credit card balances appear, the student must ask help from a financial counselor that will always have a solution for him as student loan repayments are much more flexible than consumer loan repayments. And another thing students must be careful about is identity theft; the credit card or social security numbers should not be given to anybody over the phone. These are important information that cannot get into the hands of wrong people because will very much damage the credit history. So, we can consider that it is best for students to have a credit card starting with their freshman college years because, if used wisely, the credit card history built in this period will very much help them throughout their entire life.

Student Credit Cards: Tips To Build Credit Worthiness & A Great Credit Score!

Getting to college and keeping up with your surveys is hard adequate and let’s not forget the weekend occupations and late nighttime shift. To exceed this off you have got to worry about the edifice credit and your financial "reputation."

What is this human race coming to?

Take a deep breath and sit down back. Like most problems in life, this 1 too have a solution that is not as hard as it seems.

Let’s start with “credit worthiness.” It simply intends that you look dependable adequate for financial firms to impart you money. These are some tips to assist you construct and keep “credit worthiness.”

• Wage your student credit card on time. On clip intends before the owed date. You see, even one twenty-four hours late, is late and you don’t desire to look belated to those who desire to impart you money. They translate it to irresponsible.

• Don’t travel overboard and over your credit limit. Staying below your credit card bounds demonstrates your ability to manage your money. You come up across as reliable. Try to maintain your account balances less than 50% of your available credit.

• Less is better. Think of this as a love relationship. You happen the 1 you love and really nourish that relationship. If you have got too many relationships, they will stay on the shallow end. In life, you will need depth.

Limit the number of credit cards you get or even apply for. How would you experience if your miss friend or male child friend started asking others for dates? Just asking person else for a day of the month bespeaks some sort of a problem, doesn’t it? Excessive credit enquiries over a short clip are interpreted as you having financial problems.

• Attempt to pay your balance in full each calendar month or at least do certain you direct more than than the minimum payment required.

• Ignore the pressure levels that you may experience in societal circumstances. You dwell much longer than you believe and most people you now cognize volition not be as stopping point to you in a few years. Your debts will be with you for much longer if you are not careful. Work on some basic emotional subjects like asking yourself if you really need something before you charge it. Or, can you refund the charge and if so how long volition it take you? If it takes you longer to pay the credit card debt than it takes you to complete college, you may believe about that purchase twice.

• Compare the terms and costs when shopping for a student credit card.

• Reappraisal your student credit card statements carefully and compose to your credit card company as soon as you detect an mistake on a charge statement. Don’t just name them, compose to them and maintain a copy.

• Reappraisal your credit reports and check for inaccurate, uncomplete or obsolete information. You have got the right to difference inaccurate information.

• Support in touching with your creditors, report your card as lost or purloined immediately, allow them cognize of an computer address change immediately, inform them of telephone number change immediately. I know, that is a batch of “immediately” inch one sentence.

• Support your friendly relationships a small on the distant side and don’t unfastened joint accounts easily. As I said, most people you cognize now regardless of how close you experience to them, may be much more than distant both geographically and emotionally in a few years.

If you get into trouble, despite your best efforts, exercising courage and honesty. If you can't pay your measures on time, choice up the phone and phone call your creditor to explicate your state of affairs and inquire them for advice. Creditors will often work with you to come up up with an every other payment arrangement.

I go forth you with a quote with Jesse James Lane Allen, “You are the 1 who must take your place.” May you be happy with your choices.

CreditCards.com: Weekly Credit Card Rate Report - American Digital Networks (press release)

War of the Worlds: Student Finance Versus Life

It’s A distressing clip for current and prospective students. Figures from the Prudential, show that a 3rd of United Kingdom university students have got got considered abandoning their surveys owed to the financial strain they have encountered. It is not surprising that many prospective students are finding the need to seriously believe through the virtues of going to university. With the addition in course of study fees, alongside lessenings in authorities financial support, the current harvest of alumni can anticipate huge debts (currently averaging over £13,000) when they come in the employment market, which they trust will reward them with a highly paid job.

However, as more than students get pushed on to the higher instruction production line and set about degrees, the once elitist makings goes devalued. Suddenly employers happen themselves surrounded by alumni of equivocal quality. Esteemed highly-paid careers are rare these years and alumni happen themselves increasingly under pressure level to leap through a number of hoops, with many interviews relying on Associate in Nursing individual’s ability to sell himself, rather than the footing of the academic work.

Students need to take duty for their ain finances, while the authorities seeks our acknowledgment of its actions (educating the unemployed is good for the books … and votes), without the state taking on duty (“it’s an investing in your ain future”). Too many privation to bury their caputs in the sand and wait for a lottery win to do it all better. With over one trillion lbs of personal debt in the UK, students need to realise that the, "it could be you!" they pray for, is actually an "it is you … in debt" … with at bay wind more likely than wind-fall.

Part of the problem is hopeful outlook (alias denial), portion is a fearfulness of controlling your ain personal finances (alias apathy), and portion is a deficiency of knowledge (alias ignorance). The first 1 is difficult, and needs to be defeat by the individual. The other two however can both be defeat by looking for help. Sources of information need to be made available, actively promoted and sought out by consumers. It’s not like the information isn’t there… there are plenty of financial merchandise comparison land sites loaded with information (and pictures): www.moneynet.co.uk for a start, or www.moneysavingsexpert.com The Financial Services Authority have its ain finance aid information for consumers. As the expression goes, "Seek and you shall find". It may be a hard lesson, but it is one that we must all currently embrace.

Grow Your Business With Visa Business Credit Cards

You finally have your own business. You invest both time and money in it. But does it end there? It shouldn't. Your business will not grow on its own. It takes determination, a lot of hard work, and ready spending power to turn your business from good to great. If you're running high on dreams but low on cash, the Visa business credit cards program is the solution to your money woes.

Benefits of Visa Business Credit Cards


Your company's financial health can be supplemented with Visa business credit cards. Visa business credit cards can provide your company with immediate cash flow. The good thing about Visa business credit cards is that they come with other benefits, such as:

Visa Business Auto Rental Collision Damage Waiver


This benefit allows reimbursement for damage to rental vehicles due to theft or collision at no extra cost, as long as certain terms and conditions are met.

Travel and Emergency Assistance


Visa business credit cards provide help when you need it. Moreover, as a cardholder, you are just a phone call away from assistance. Should the need arise, Travel and Emergency Assistance will put you in touch with emergency services. There is no extra charge for cardholders. Immediate family members, colleagues, and employees may also take advantage of this service.

Purchase Security and Extended Protection


This benefit provides automatic protection to your retail purchases, at no additional charge. Purchase Security can replace, repair, or reimburse selected items charged to your Visa business credit cards at the provider's discretion for up to 90 days, in the event of theft or damage. Extended Protection doubles the original warranty period of up to one full year.

Emergency Cash Disbursement and Card Replacement


If your Visa business credit cards are ever lost or stolen, assistance is just a phone call away. What's more, cardholders can get emergency cash advance delivered 24/7, as well as card replacement.

Earn Points and Rewards


Visa business credit cards offer several rewards and rebates programs. Choose the card with the program that is most beneficial to you.

How Do Visa Business Credit Cards Help You?


Visa Business Credit Cards can help your business in a variety of ways. Visa provides you with tools for record-keeping and reporting, provides bills payment facilities for easier tracking, and helps you manage your money through a simplified accounting approach, with Visa Information Source Select. With the Visa Business Partner Advantage, you are entitled to discounts on certain products and services suitable for your business. Visa also gives you updates, conference and event information, and even online workshops to help your company succeed.

Providers


Visa teams up with reputable financial institutions to come up with the Visa business credit cards best suited to your needs.

Alaska Airlines Visa Business Card, for example, gives you control of your business expenses. You will also receive travel rewards from Alaska Airlines and its affiliates at the same time. There is a 0% introductory APR for purchases and balance transfers during the first 9 months. When that expires, rates on purchases and balance transfer range from only 6.99% to 9.99. Bonus miles are earned with every purchase and can be redeemed for travel on 11 airlines with over 700 destinations.

Offering the same rates and introductory APR is the Power Rewards Platinum Visa Business Card from the Bank of America. The Power Rewards Platinum Visa Business Card also offers a variety of other rewards, aside from travel. You can opt for gift certificates, brand-name merchandise, and even cash rewards.

The Chase Platinum Visa Business Card offers a 0% introductory APR for 12 months. After the 12-month introductory period, the Chase Platinum Visa Business Card offers a reasonable APR of 12.24%. Eligible purchases can earn you a 3% cash back reward. Other purchases entitle you to a cash back rate of 1%.

There are several other Visa business credit cards tailored to fit your needs. Visa is committed in helping you grow your business. So, if you are an entrepreneur and you choose Visa, be rest assured you made the right choice.

Credit Card Entrapment - The Secrets are Out

Have you ever wondered why your credit card measure is so high and you can't look to pay off the balance? Well you are not alone in this. You should be aware of a couple of fast one that they utilize and you probably don't even pay attention to it, but you definitely pay for it and BIG!

The adjacent clip you open up up your credit card statement, take a existent stopping point expression to all the "junk" inside particularly the very hard to read insert Call "changes to you credit card agreement". That's right the 1 you always throw away or state that I'll read it later and never really do. Since you neglected to read all that mulct black and white you just threw away you should recognize what you just did. In kernel you just agreed to all the changes the credit card company made IF (and that's A large "IF") you utilize your credit card again. Most people make and don't even read all "that stuff" in the envelope with their statement. Since these were automatic changes effectual immediately or on a specific day of the month that they put in the new terms and conditions.

Some of the 1s the credit card companies utilize most often include, but not limited to, changing your APR (annual percentage rates) you thought that 0% would endure forever? Changes to your existent fees and/or adding new fees. Let us not forget that they also like to change your saving grace period, the clip that you can pay it off and not have a finance charge.

If you don't cognize or you don't maintain path of your credit limit...stop using it! If not you will get yourself into this adjacent small fix. When ever you do travel over the bounds (they make certain and give you a small slump so they have got an extra fee to charge) they hit you with an "over the bounds fee" making you more than than over the bounds and making you pay down your balance even more or you will confront yet another over the bounds fee the following month. There is nil like a small $35 or more than fees to hearten you up when you have got to pay your bills.

If you really like higher rates on your credit card then just do certain the payment is late, that is a certain fire manner of getting an addition in you APR. Some credit card companies travel as far as saying your payment is late if not received by twelve noon or 1 p.m. on the payment owed date. Thanks for another $29 or more than fees are the likely response from the credit card company. If you are a postponer and wait until the last minute to set money in the bank for your check to the credit card company to unclutter then you need to be very careful. With all these new high technical school devices we have got these old age they are a batch more efficient at processing their money taking years shorter than they did even 5-10 years ago.

For the ultimate postponer who will wait until the last minute and pay online. Once again the credit card companies will most likely brand you pay for that convince. I have got seen anywhere from $1 to $15 just to do your payment online.

This 1 is my favourite 1 and it took me awhile to calculate this 1 out, because like you I really just didn't pay attention. And adult male did they do me pay for it too. Some credit card companies offer cash advances. You really have got to believe to yourself "How good of a deal is it really going to be?" after all they already charge 15%-18% Oregon higher!

Why is it such as a bad deal?

I'm glad you asked.

In most cases when you utilize your credit card to retreat cash more fee boot in:

- A cash advance fee is normally an up front fee any where from 2%-4% of the cash you take out

- The cash advance on the credit card ALWAYS have a higher interest rate than your normal purchases

- The interest starts as soon as you get the money out of the ATM

- Many of the credit card companies also necessitate that you pay off all the balance from your purchase before you can pay off your cash advance.

Here's a small illustration on how they get you with those extra fees:

Let's state you regularly charge $200 dollars a calendar month with purchases on your credit card and you maintain a running play balance on your credit card of $1000. If you went out and needed cash right away and took out a $100 cash advance you would have got to pay off the $1000 dollars before you would be able to get to paying off the cash advance. Now let’s not forget the $200 you set on every calendar month that you would have got to pay off before they would pay off the cash advance. I was going around in circles on this 1 for old age before I figured it out.

Free advice don't utilize a cash advance unless you absolutely have got to.

Taking the clip to read the small "junk" the credit card companies direct you in the mail and knowing where all these fees travel will salvage you a batch of money in the long run.

Credit Card Refund

Many people avail credit cards and utilize them for their daily requirements. Some are happy with the services provided by the credit card companies but there are also some people who are totally dissatisfied by the services provided by these companies.

These companies try to give many offers to allure a new customer but offer disappoint them when it comes to customers care service once they actually avail these cards. There are many complaints regarding the quality, products not up to standards or not what you would have expected. In this case, you generally dispute the credit card company/bank. But it might not have been the best decision. Let us know why.

The “ money back guarantee” conditions only applies if you had just bought some thing and had a change of heart, you may decide to given the product back to where you bought if from. But in this case, from where you request the money back now decides to dispute the case. Now, if you decide to go to court with that company, your bank and company will present their arguments before a charge back Committee, which will decide on whose side the truth, lies.

If in case, the decision of the Court is in your favor, you are entitled to get all your money back and even a charge back fee. But if the decision is in the favor of the company, not only you will not get the money back, but you will also pay a charge back fee. This entire thing might end up cursing you more than expected.

How to avoid all this? Our sincere piece of advice in this case is to decide wisely. Don’t just go and dispute just about any charges you don’t like any more. There are people who get in to all this to get whatever they have paid and even keep whatever product they have purchased. But this is not an easy task.

You might end up getting into trouble. So prevention is better than cure. Whenever, you buy something, especially over the interest, read carefully the terms and conditions of the website. It might seem to be a tedious task, but is worth taking the pain in the long run. There may be lot of legal stuff you don’t really want to know, but it could prove important should you not be satisfied with your purchases, you can get in touch up with an email, phone or regular mail.

Who knows, you may end up setting for a better deal.

Credit Cards Make Your Life Easier! Find Out How!

Credit cards make more than than supply you with extra buying power. Actually, credit cards can do quite a spot to make your life easier. Credit cards add convenience to your life by helping you set up credit and simplify your measure payments. In fact, credit cards can even protect you in the event that you are a victim of theft! Finally, credit cards are first-class to have got when you run into one of life's many emergency situations!

If you are getting credit cards for the first clip ever, one of the obvious benefits of owning such as cards is that you will be able to set up a credit rating. Further, by establishing a good credit evaluation over time, you will later be able to do larger purchases with your well-earned credit, like automobiles and homes. Finally, a well-established credit evaluation can assist you lease cars and apartments, and sometimes assist you get employment that may necessitate a credit check.

Alternatively, paying measures or even making purchases on the Internet necessitate the usage of a credit card. Unlike bank debit entry cards where you must have got money in your checking account to pay your bills, credit cards allow you to pay your measures with your predetermined credit limit. Therefore, if you are a small short on cash during the month, you can still successfully do online charge transactions with the usage of your credit cards.

Did you cognize that credit cards can assist you afford the larger purchases that you might not necessarily expect? Perhaps you are a college student and you need to purchase your books for your approaching semester. Imagine going to the book shop and determination out that your book measure is far more than than you had planned for. Nevertheless, you necessitate the textual matters for the approaching social classes you are enrolled in. With a credit card, you can successfully pay for your books all at once and pay off the balance later in the calendar month or in respective monthly increments.

Did you cognize that having a credit card can actually salvage you money? For example, if you were supplied with a credit card with a $500.00 bounds and you made $500.00 worth of purchases, as long as you paid off the full measure before interest is applied, you have got basically afforded yourself an interest free loan! Conversely, if you borrow money from a bank, interest is applied immediately and you are required to pay the interest first, then the principle.

Another benefit derived from having credit cards is that you can carry less cash with you. Thus, if you are ever the victim of theft, you will not lose as much cash as an individual that makes not carry credit cards. What's more, if your credit cards are stolen, unlike cash, you can immediately put a phone call to the issuing company of your cards and have got them issue new ones.

Finally, credit cards can maintain you prepared for life's small emergencies. Imagine that you are on your manner home from vacationing out-of-state. While drive home your car interruptions down and you have got got to name a towage motortruck to have it brought to the nighest garage and repaired. Now conceive of not having adequate cash to have got a towage motortruck come up and recover your car; what would you do? By having one or more than credit cards handy, you can do your life easier because you will be prepared for anything, including the towage motortruck fees!

In short, the many benefits derived from owning credit cards only do your life easier. Credit cards can give you the extra purchasing powerfulness that you necessitate and can assist you set up a credit evaluation that volition addition your purchasing powerfulness in the future. Further, credit cards can assist you take a proactive function in protecting your money by allowing you to have got less cash-on-hand. Finally, credit cards can assist you afford unexpected outgoes with relative easiness and thereby give you peace of mind!

How to Choose the Right College Credit Card for You

Credit cards are a huge industry. Everybody who can get one or two or 10, utilizes them because they are a great convenience. But there are so many credit cards being offered to students these years that it might look nearly impossible to take the right college credit card for you. But it is very of import to look into and to take carefully to do certain you stop up with the best deal you can find.

It's also of import not to travel overboard and get a one-half twelve cards or more. It is very easy to get yourself into serious financial problem before you recognize it. It is so easy to utilize the cards when you desire something - but then the measures begin coming and getting bigger and bigger.

The interest rate that a college credit card charges is a critical factor in your considerations. Let's human face it, when you do a purchase on a college credit card you are actually borrowing money from the credit card issuer. They will desire it back - with interest. So you must pay a monthly interest rate on this loan unless you pay your balance off in full every month.

Naturally, the best option is to pay off the credit card every month, but sometimes that just isn't going to happen, so you desire to get a college credit card with the lowest annual percentage rate and the longest 0% interest introductory period. The bulk of college credit cards will be very similar in these two sees so the adjacent point to see is what sort of rewards you have got for using the credit card.

For many students, college credit cards are the first 'real' credit cards that they have gotten and they may not cognize what types of reward would be the best to look for. Generally, the three chief reward types that volition be most valuable for students are:

* Cash Back

* Frequent circular miles

* Free gas

Cash back on a college credit card is actually a sort of points system. As you pass money these points collect on your college credit card account. Then they can be exchanged for cash, gift certifications or particular price reductions at popular mercantile establishments and stores. While the amount of 'cash back' that you get as a college credit card reward might look small, retrieve that every small spot assists and you will soon be racking it up.

If you have got cash available to pay for points like books and other necessities, you can utilize your card instead and then pay off the measure as soon as it comes. This makes two of import things for you. First, it assists construct your credit history in a very positive way. Second, it accelerates your rewards. BUT, you must pay it off, don't pass that cash on something else and end up paying interest. You have got got to maintain your finances under hard-and-fast control.

Frequent circular miles could be the best rewards to have with a college credit card if you attend a college a long distance from your home. As you utilize your college credit card you collect frequent circular miles that you can later exchange for flights back home - or wherever you desire to go. Unlike the airline reward schemes, normally credit card frequent circular miles can be used on any participating airline, worldwide.

Free gas when you utilize your college credit card could be your best option if you have got your ain car. Gas terms maintain getting higher and some college credit cards offer rewards that tin aid with the rise costs of operating a car by providing discounts for gas station purchases. These free gas college credit cards may also offer price reductions and points towards other motoring related to points so it can be well deserving your clip to compare the different programs available.

With careful research, a small good sense, and careful attention to your finances, your college credit card can definitely assist do your college old age easier and give you a great caput start on an first-class credit rating.

Copyright 2005 Richard Keir

Aiken man pleads guilty to stealing credit card numbers

By T&D StaffTuesday, May 08, 2007

An Aiken man was ordered to repay thousands of dollars after he pleaded guilty last week to using his position at a retail store to gain access to customers’ credit card numbers.Kyle David Baldwin, 28, of 405 Independent Boulevard, pleaded guilty to breach of trust in General Sessions court in Orangeburg. Circuit Court Judge Diane Goodstein sentenced Baldwin to 30 days in prison, suspended to five years of probation.Baldwin was also ordered to perform 40 hours of public service and repay $4,942.54 to several customers of Belk in the Prince of Orange Mall. The man swiped the credit card information from three customers to make purchases between November 2001 and January 2002.Unfortunately for him, there was a paper trial left that led back to him.According to statistics kept by the Federal Trade Commission, more than 2,400 people became victims of identity theft in South Carolina last year.In an unrelated case, Lamand R. Russell, 27, of 725 Hesseman St., Holly Hill, pleaded guilty to failure to stop for a blue light and was sentenced to one year, suspended to six months of probation.Russell must also perform 10 hours of public service.

Credit Cards: Top 7 Mistakes that Card Holders Make

You need to manage your credit cards wisely. Otherwise, you may stop up in financial trouble. Unfortunately, there are many who don’t realise that they may be making huge errors with the usage of their credit cards. Here are top 7 credit card errors that card holders make:

1. Paying Just the Minimum Sum.
The minimum sum of money is just an amount that you must pay back each calendar month to avoid defaulting on the debt. If you pay just the minimum sum, the remainder of your outstanding is subject to interest computations. Always wage back more than than the minimum sum of money or do full payments to avoid credit card debt.

2. Making Late Payments.

If you don’t set up any sort of automatic debit entry payment from your bank account, then it can be alluring to just set your credit card measure aside and get to it when you have got time. Before you cognize it, a few hebdomads have got gone by and you’re late. If you go forth it to the deadline, you may happen that the payment won’t get there quickly enough.

Paying late is a large error for an atrocious batch of reasons. You will almost certainly be charged a late payment fee, and your late payment will travel on your credit report. You may also happen that you lose any good rate you had or any discriminatory rates that you may in the hereafter receive.

To avoid late payment, you should always post your payment a long clip before the owed day of the month (at least a week). If you’ve left it to the last minute, phone up and seek to pay that way.

3.Being deceived by Offers from Credit Card Companies.

It is never, ever deserving getting a higher-interest card simply because it offers some sort of loyalty points, flight miles or whatever. Even if it offers a cash reward, it is improbable to be more than than you would pay in extra interest – after all, why would they give you free money?

4. Collecting Cards.

Some think it looks good on them to have got a wallet choked full of credit cards. Especially if the wallet is packed with gold and platinum ones. But enviousness not! These card holders may well in a state of affairs of having to maintain path of all the different cards, balances and interest rates.

In fact, you should restrict yourself to a upper limit of three cards at a time. Any more than starts to do you look over-committed in your credit report, and could get you turned down for a bigger loan.

5. Charging More to Earn More Points.

The credit card companies are adroit in rewarding you with more than than fillip and loyalty points if you charge more during a publicity time period or a holiday season. You may stop up with shopping that you don’t need just so as to earn more than points. If you can well afford all your purchases, fine! But if not, you may be in for a monolithic concern when your measure comes!

6. Using Your Credit Limits to the Max.

Your bounds is a upper bounds limit; not a minimum one! Whatever you do, don’t get a card and immediately pass your whole limit. This expressions very bad. It is better to pass about halfway regularly and pay it back.

7. Not Reading the Terms and Conditions.

Finally, as ever, don’t mark anything you haven’t read! I cognize it can be tough to read all the mulct black and white but if you make not cognize what you are getting into, then you shouldn’t get the card. Wage particular attention to any hereafter additions in rates, and what sort of fees you can be charged.

Student Credit Cards: Benefits and Dangers

Every year, college fresher are bombared with offers for student credit cards. Parents need to speak about in talking about the duties that spell with having a credit card, before their boy or girl travels off to college.

I'm not suggesting that it's a bad thought for college students to have got their ain credit card. Actually, it have many benefits, but it is indispensable that they get the right card and usage it carefully and prudently.

The benefits of a student credit card are clear. Parents won't need to be continually sending money and students will be able to do normal purchases more easily. They will also be prepared for unforseen "emergencies." Moreover, since most credit cards have got a predetermined disbursement limit, parents can be certain that disbursement will stay within a pretermined amount. Parents should retrieve to bespeak a relatively low disbursement limit, since credit card companies are often too broad in the disbursement bounds they delegate to student credit cards.

Parents may wish to have got the student credit card used only for emergencies. In that case, this must be made quite clear to the student.

Some credit card companies offer very low "teaser" rates in the beginning for a limited clip period of time and then jack up up the interest rate to an exhorbitant degree afterward. Always check out the interest rate that volition apply after the introductory period.

Another pitfall to avoid is paying only the minimum payment each month. Often, the minimum payment only covers the interest for that month, and small or no money travels toward paying the principal. In that case, it may take decennaries to pay off the balance. In fact, if no money travels toward the principal, the balance will never be paid off!

Many credit card companies offer the ability to manage the account online. This is a very convenient feature. Students can check their balance or do payments from their checking account 24/7.

This characteristic also allows parents to supervise the account, even from thousands of miles away. This degree of accountability adds an extra border of safety and reduces the opportunities that the student will get into problem by over-using the credit card.

Credit Card Debt Consolidation: Top 3 Factors to Consider

If you’ve got a number of credit cards and insurmountable credit card debt, then perhaps it’s clip to see a debt consolidation loan. A consolidation loan is a loan that you can utilize to pay off all your debts, meaning that you can pay them off for less money without having to worry about tons of different bills.

For instance, if you had borrowed $3000 five old age ago, you may now owe $5000 (principle plus interest). A debt consolidation programme may affect eliminating some amount of interest so that you pay less than $5000.

Also, your former outstanding balances may be on five different credit cards. You need to pay 5 measures every month. Once you take part in a debt consolidation program, all your accounts will be consolidated into one account. You now pay only one measure each month.

In a credit card debt consolidation, your average interest rate may be reduced. All your loans can also be transferred to one single card that have a lower interest rate than the 1s you are currently paying.

Here are top three factors to see for Credit card debt consolidation:

1. Interest Rate

Get the best interest rate you can if you choose for debt consolidation. This interest rate is almost as of import as the 1 on your mortgage, but much harder to change after you’ve signed on the dotted line. Don’t be fooled by any offers that give you a good rate for a limited clip – you’re going to have got this loan for quite a while.

Interest rates for credit card debt consolidation loans through traditional lenders may be based on your credit score. If high, you are likely to get a credit card debt consolidation loan at a lower interest rate. If the credit score is low, credit card debt aid companies may be able to assist offer methods for raising your credit score.

2. The loan tenor voice or length of the loan

The most overlooked facet about debt consolidation loans is that the 1s with lower payments generally last a very long clip – you may stop up paying it off for twenty years, or even longer. You should seek to happen a loan that doesn’t last as long, and inquires for payments that are as much as you can afford.

3. A payment sum of money that you can manage.

Almost without exception, the loan will be secured on your home. That agency that if you begin missing payments, the finance company will kick you out, take (‘repossess’) your house, sell it, and pay back the debt with that money.

There’s A whole industry around property developers buying repossessed houses and merchandising them on for a profit. The opportunities are that you’ll come up out of it with nowhere near adequate money left to purchase even the smallest home, and nowhere to live. So be sure, to travel for a program that you can safely accede to, without losing your home!

If you make take a debt consolidation loan, you need to read all the mulct print. Good luck!

5 Killer Steps to avoid Credit Card SCAMS!

In August, 2004, the Federal Trade Commission issued their findings of a recent study, which showed that nearly 25 million adults were victims of fraud.

Now, most importantly, If you are a victim of fraud, please do not feel like you did anything wrong. It happens to all of us at one point or another, as the FTC’s study clearly shows. Everyone likes a magic trick, and none of us are fully capable of noticing the con-artists’ slight of hand. So, if you’re a victim, take a deep breath. You’re normal.

But, there’s an old saying that goes something like this: Fool me once, shame on you…Fool me twice, shame on me!”

Here are 5 KILLER STEPS to protect yourself from Credit Card SCAMS!

NATIONAL NO-CALL REGISTRY.

TELEPHONE SOLICITATION

1-900 NUMBERS.

ANNUAL FEES, INTEREST RATES, ETC.

THE UNITED STATES FEDERAL TRADE COMMISSION

1. NATIONAL NO-CALL REGISTRY:

There’s nothing more annoying then those credit card offers that you get over the phone. I don’t know about you, but the last thing I want to be doing, while having dinner with my 1 year old daughter and my beautiful wife, is to be annoyed by phone calls from solicitors that just want to make money off me. Legitimate or not, these calls are a nuisance. If you’re like me, and you would rather live without dealing with these calls, then go do this:

The FTC has created the National Do-NOT-CALL registry. Go find out more information about it. The website is: http://www.donotcall.gov

If it makes sense, complete the online form.

Take a deep breath, and relax. Within 30 days, the list will start working for you. I can personally attest that, while the solicitations have not stopped completely, they have significantly, significantly decreased.

Join the FTC No-CALL-Registry, and enjoy a reduction in telephone solicitation phone calls.

2. TELEPHONE SOLICITATION:

Believe it or not, the vast majority of lenders out there are legitimate. Also, believe it or not, a lot of these lenders utilize telemarketing as a method of reaching out to potential customers.

But beware of a wolf in sheep’s clothing. Legitimate Lenders never ask for a processing fee in order to complete your application (this does not include appraisals during a real estate transaction in Escrow…We are discussing credit cards here).

Keep your personal information to yourself! Don’t give out bank information, credit card numbers, social security numbers, etc., to someone you don’t know, on a telephone call. Use your common sense.

If you don’t have the offer in hand, or confirmed in writing, then don’t pay. This is fraud. Who is this person on the phone anyway? Get their phone number, their address, their federal tax ID number, and then tell them you’ll call back. If they’re legitimate, they’ll give it to you. If you question them, then I say trust your instincts. You’re probably right on target.

Who is this on the phone? Don’t trust people you haven’t had a chance to get to know. Don’t let one enticing offer on a phone call, be your guide...

3. 1-900 NUMBERS:

A 1-900 number is, of course, a phone number that charges the caller per minute for making the call. Whether it’s a 1-900 number, or a future manifestation of the same type of telephone service, be wary of doing business this way.

The most common Credit Card SCAM, in all of its different forms, is called an “ADVANCE FEE LOAD SCAM”. Typically, you will find these in the classified section of your local newspapers and trade magazines, and unfortunately, you’ll also see them floating around the internet.

In a nutshell, the perpetrator will guarantee you a loan, but you have to pay them an upfront fee first. The fee can range from $100 to several hundred dollars. The charges can be extracted using telephone services like 1-900 numbers. Beware of courier services, and transactions that avoid the US Postal service, often conducted so as to avoid detection. The scam is that once the fake company has your money, they disappear from the planet, leaving you a victim of their con. You are out money, and no credit card.

Now lets’ not confuse Advance Fee Load Scam artists with legitimate lenders and institutions. I can attest that there are real companies out there, trying to help you to get the credit, loans, and consumer debt services that you need. I believe in many of these services, and I believe in the convenience and power of the internet. However, use your common sense in all your business transactions in life, and that includes credit. Never give someone money without getting anything back in return. Never trust someone that you don’t know. Never get enticed into a deal that’s too good to be true.

Use your common sense, and don’t fall prey to the con artists slight of hand, such as the Advance Fee Load Scam...

4. ANNUAL FEES, INTEREST RATES, ETC.:

Credit Card Scams come in all different shapes and sizes. Many of them are, arguably, not scams at all, but let’s just call them credit card offers involving consumer unfriendly terms.

Read the fine-line. Every Credit Card Offer must provide the Consumer with written documentation on the terms of the offer.

Check the Annual Fee, the Interest Rates, the Cash Advance Fees, the Late Fees, and all other terms of the offer.

c) Make sure you know what you are getting. Some offers are for secured cards, some are for unsecured cards, and some offers are for shopping portals online and offline (Like a department store card). So, while none of these are scams, by definition, it is important that you fully understand the terms of the credit card offer that you are agreeing to.

Be a responsible consumer, and read the terms and conditions of your credit card offer...

5. THE UNITED STATES FEDERAL TRADE COMMISSION::

The best place to go for direct consumer information, protection, and remedy, is the United States Federal Trade Commission...

The FTC website is: http://www.ftc.gov

The FTC can provide you with TONS of free information about Credit Cards, and other consumer related concerns. They can help you learn more about what to avoid, how to be a smarter consumer, and what to do if you believe that you are a victim of fraud, and what your remedies may be.

The FTC is there to help...

SUMMARY:

Use the No-Call Registry to cut down telephone solicitations in your home and places of business. While many legitimate lenders utilize telemarketing, be careful. Don’t give out personal information to people you don’t know, don’t pay up-front processing fees over the phone, and get everything in writing. Consider yourself an advised consumer on “Advanced Fee Load” Scams, and look out for the signs, when these scams regrettably make their way to you. Read the terms of the offers that you are considering, and utilize the FTC website for trusted information, resources, and all related materials on consumer credit card issues.

We’ve enjoyed providing this information to you, and we wish you the best of luck in your pursuits. Remember to always seek out good advice from those you trust, and never turn your back on your own common sense.

Publisher’s Directions: This article may be freely distributed so long as the copyright, author’s information, disclaimer, and an active link (where possible) are included.

Disclaimer: Statements and opinions expressed in the articles, reviews and other materials herein are those of the authors. While every care has been taken in the compilation of this information and every attempt made to present up-to-date and accurate information, we cannot guarantee that inaccuracies will not occur. The author will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within these pages or any information accessed through this site.

Ellison’s first bill would end controversial credit card practice

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WASHINGTON — Rep. Keith Ellison’s first bill would ban credit card companies from raising interest rates on customers because they’re behind on payments to other creditors, the first in a series of bills he says will focus on consumer justice.The practice, known as “universal default,” has come under attack by consumer groups and some members of Congress. Ellison, a freshman Minnesota Democrat, plans to introduce the bill on Thursday.“If you are late on a credit card, then it might be fair to address your credit worthiness for that credit card,” Ellison said in an interview. “But if you’re on time for somebody else’s credit card, it’s not fair to jack you up if you’re not late on that card. It’s just a basic issue of fairness.”The bill appears to have decent prospects in the House. The chairman of the House Financial Services Committee, Rep. Barney Frank, supports the bill, said committee spokesman Steve Adamske.He added that the committee will be looking into credit card practices, which could lead to legislation, and that Frank “expects Mr. Ellison’s bill to be a part of that mix.”Ellison, who serves on the committee, said he chose this as his first bill because he believes it’s important to bring back balance between corporations and consumers.“I’m pro-business — businesses help supply jobs — but the government does have a role to make sure that there’s some fairness for consumers,” he said. “We’re going to spend a lot of time doing that.”Citigroup Inc., the nation’s largest financial institution, and some others have already eliminated the practice.The American Bankers Association, a Washington-based trade group for banks, including those that issue credit cards, has concerns about the legislation.“It’s very important that banks be able to price for risk,” said Ken Clayton, a lobbyist for the group. “The risk profile of individual borrowers can change at any point. So what was a $1,000 borrowing without any other outstanding credit that’s not risky at one point, may be a lot more risky where there’s $50,000 of credit outstanding somewhere else.”He said that banks need to have the ability to make risk-based judgments.“Unfortunately, the bill would take that away,” Clayton said.Ellison said that just because someone is late on a credit card payment doesn’t mean that person is necessarily a bad credit risk.“I don’t think it should harm their ability to obtain credit,” he said. “And I also think it’s unfair to raise their rate on a card that they’re not late on. People already have enough trouble as it is if they’re behind on a credit card.”Minnesota Sen. Norm Coleman helped look into credit card practices in March as the top Republican on the Permanent Subcommittee on Investigations. In a statement, Coleman said he’s been pressuring the credit card issuers to re-evaluate their practices, and is currently reviewing universal default, which he called “fundamentally unfair to the consumer.”“We should give the issuers a chance to develop more consumer-friendly policies before we add even more layers of federal regulation,” Coleman said. “If the credit card issuers don’t take the initiative and clean up their act, legislation might be the next step.”Ellison said he also wants to pursue other areas aimed at helping consumers, such as limiting high-interest rates on credit cards and making it easier for people who have legitimate needs to file for bankruptcy.“I’m concerned about issues that are wrapped up in a family’s ability to put food on the table, shelter over their heads, heath care,” he said. “This is the beginning of a whole credit reform effort we’re going to be pursuing.”
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Top 7 Factors to Consider While Reviewing Credit Card Offers

Credit cards have got got migrated from being hip or convenience merchandise into a must have physical thing for everybody. Shopping Online you need a credit card. Wanna book a weekend rental you need a valid card to pick one. In order to register as a valid marketer in many online land sites you need a card. Like this the credit cards have got got evolved from being just convenience points into something you got to have or you will be denied many services. There is a batch of money being made by the credit card industry. Everything you purchase have a credit card fee attached to it. If you pay by cash you still paying those fees since the merchants don’t offer a price reduction for cash or check payments. They are willing to pay the 2-3% charge to the credit card companies than give it back to you. If you are not using a credit card as your chief payment method and enjoying the convenience it offers you are paying for nothing.

The cards come up up now-a-days not just loaded with a assortment of characteristics but they also come in many forms and colors. Rich Person you seen the new discover cards? Well let’s take a expression at the of import characteristics you should measure the credit cards against.

1. The credit limit: This is the amount you are allowed to pass using the card. Be careful while choosing the right amount. This is of import in two angles; the first is how much buying powerfulness you are willing to vouch to pay back. The other is what your disbursement style is. Many folks don’t cognize that reaching stopping point to your credit bounds is not good for your credit history. Are you a responsible individual and wanted to maintain the bounds low but you utilize up 90% and constantly pay every month? You may desire to increase your bounds so that your credit score is not affected by this usage pattern.

2. APR: This is the interest rate you have got to pay for the amount you owe in the credit card. Obviously look for the best rate you can get. Regularly reach the client service to convey down the APR. These companies addition it regularly; you should reach to maintain it at the same rate.

3. Annual fees: This should be zero.

4. Online payment option and activity checking: You should take the bank that offers a good and comprehensive online tool to check and measure your use. They should give you have like auto payment options. This is a batch utile as you will have got a manner to check the account usage. If you are planning on a shared card it is a must have got to monitor.

5. Late Fee and further charges: Although being late is bad, you will stop up atleast once a twelvemonth being late to pay the dues. You may desire to do certain they don’t add it to your credit history even for one late payment. And the fees! yeah check out the agreement.

6. Rewards and further benefits: The current tendency is offering cash back on purchases or points for buying with preferable vendors. This is free money as well it is a better manner to salvage on the purchases you are anyway going to make. The further benefits include insurance coverage, miles and more. Measure these carefully as they may be worthwhile.

7. Read about the reviews: Although you can measure the card by yourself, you may desire to read about what others have got to state about the card. It is these reappraisal land sites that cast some visible light on the crappy client service or the concealed charges. You should and must use the many reappraisal websites to take the best card that tantrums your need and lifestyle.

Don’t forget those fraud protection capablenesses that come up with the card. You don’t desire to be stranded because person misused your card and you are stuck in nowhere land without any money.