Credit Card Blog

Archive for March, 2009

Credit Card Details Found on Old Computers, Gaming Consoles

March 31, 2009 at 1:06 pm · Filed under Card Security

If you’ve decided to sell your computer or gaming console, don’t throw in your credit card information to sweeten the deal! Some sellers have learned the hard way that your personal information can fall into the wrong hands when you sell your computer. Additionally, dealers who bought pre-owned consoles (including the X-Box 360 and Playstation 3) from Circuit City were shocked to find the hard drives, profiles, and credit card information still intact. Circuit City did not wipe the information before shipping the consoles to other dealers.

If you’re selling a computer, merely deleting the information isn’t enough. Even formatting your hard drive leaves your data vulnerable. Instead, look for a data shredding program to keep your deleted data gone for good. These programs work by overwriting your data numerous times, making it impossible for standard data recovery programs to retrieve.

Removing your credit card information from a console like the X-Box 360 takes a little more effort. The credit card details aren’t actually stored on the machine’s hard drive, but are instead linked to your profile at Microsoft. To keep the console’s new owner from making purchases with your card, you’ll need to call customer service and have them delete the credit card from your profile.

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It’s Still Possible to Get Credit – Even for First-Timers

March 30, 2009 at 9:22 am · Filed under Credit Score

You may feel a little put off by the financial headlines that have been floating around. It seems that you can’t go anywhere without hearing the terms ‘credit crisis’, ‘credit crunch’, and ‘credit freeze’. That can be intimidating for people who want to start building their credit history right now. How will they build up their credit when nobody’s offering any?

The experts have some advice for consumers in this situation. First, consider applying for a credit card through your bank. You’ll have a better chance of getting credit if you apply at a place where they know you’re capable of managing your money.

If that doesn’t work, get a secured credit card. These cards use your own money as collateral, so there’s no risk to the card issuer. Anyone can obtain a secured credit card. Best of all, your timely payments will be reported to credit agencies, improving your credit score and opening the doors to more credit in the future.

Finally, consider taking a credit card even if the terms aren’t what you’d hoped for. Nobody is getting a great deal right now, though this will change when the economy starts to recover and credit card legislation goes into effect. For now, count yourself lucky if you get approved for any unsecured card.

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Investigators Traced E. Coli Outbreak With Credit Card Receipts

March 30, 2009 at 9:21 am · Filed under News

We all know that it’s helpful to save credit card receipts, but investigators in Denmark took things to a whole new level in 2007 when they tracked down the origins of an E. coli outbreak that had made many children ill.

When the earliest cases were reported, Danish investigators questioned the parents of the sick children. This strategy produced no leads, so officials started looking at the families’ credit card receipts. Others scrutinized the receipts from food purchases made by the children’s school. It didn’t take long to isolate the culprit: organic beef sausage purchased by the families and the school.

Fortunately, none of the children was severely ill, and all of them ultimately recovered from the incident. But Danish authorities note that they never would have pinpointed the outbreak’s origin without the paper trail of credit card receipts. The whole incident will be reported in an upcoming journal publication, Clinical Infectious Diseases, due out on April 15th.

In addition to thwarting E. coli, it pays to save your credit card receipts for spending analysis, checking for unauthorized charges, and tax purposes.

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When Should You Carry a Credit Card Balance?

March 30, 2009 at 9:20 am · Filed under Credit Card Debt

Most people think the answer is ‘never’. For the most part, that’s true; carrying a credit card balance from month to month tacks on interest charges and periodic finance fees. But there are some situations, particularly in the current economy, when carrying a card balance isn’t such a bad idea.

Experts advise cardholders to pay with plastic rather than with paper if they know they’re facing bankruptcy. That way, they’ll still have their cash if they need it. Short-term unemployment is another situation where credit cards can help. Also, small business start-ups are increasingly using credit cards to finance their ventures, since bank loans are hard to come by these days.

Major purchases that you can pay off within a year can be financed with credit cards, especially 0% interest cards. Paying with credit will keep you from tapping your savings account, which you might need to draw on if an emergency arises. Of course, true emergency situations can warrant credit card use as well.

If you find yourself facing any of these situations, go ahead and use your card without guilt. It will cost more than paying with cash, but paying with credit is sometimes the lesser evil.

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Small Business Owners: Accept Credit Card Payments With iPhone

March 28, 2009 at 10:49 am · Filed under Card Technology, Credit Card Processing

Recently, an app was developed for the iPhone that allows business owners to accept credit card payments with their iPhones – called iSwipe. This is ideal for businesses that travel to trade shows and expo events as it allows them to accept credit card payments from their customers even when out of the office.

iSwipe is also useful for people who run party-plan businesses (Tastefully Simple, Tupperware, Creative Memories, etc) because when you are out giving parties in your customer’s homes, you can easily accept and verify credit card payments before you get home. Rather than having your customers write their card information down on an order form, you process their payment immediately (avoiding potential problems with illegible writing or nonsufficient funds), and save yourself the extra step when entering customer orders at a later date.

The iPhone app works with the three most commonly used payment gateways for small business owners, including Paypal, Authorize.net and Cybersource.

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Introducing the Credit Card in a Watch: LAKS Smart Transaction Watch 2

March 27, 2009 at 1:01 pm · Filed under News

Now you can do more than just tell time, watch movies, and listen to the radio via your wristwatch. Meet the LAKS Smart Transaction Watch 2, a watch with an embedded MasterCard PayPass device. Wearers simply swipe their wrist at card reading terminals to make purchases.

The LAKS Smart Transaction 2 isn’t the first of its kind; LAKS first introduced the concept in 2006, when it released a limited edition FIFA World Cup Soccer watch in cooperation with Chinatrust Commercial Bank. The Smart Transaction 2 improves on the original design with a convenient “slide-in system”. A tiny slot located beneath the 9 on the watch face lets wearers insert their M/chip to turn the watch into a credit card, then remove it whenever they please.

The LAKS Smart Transaction 2 is a cooperative product from Austria Card and Viennese LAKS Watches. Pricing information wasn’t included in the official press release, but Emirates Bank in Dubai and Turkish Vakif Bank were the first to order the product for their customers. Austria Bank is a leading supplier of smart card technology in Eastern Europe.

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Maryland Trying to Make Retroactive Credit Card Rate Increases Illegal

March 26, 2009 at 10:57 am · Filed under Announcements, Credit Card Debt, News

According to a report on WBALTV in Baltimore, Maryland, “Maryland could become the first state in the nation to make it illegal for credit card companies to retroactively jack up rates.The measure has already passed the House and is in the hands of the Senate Finance Committee.”

As it currently stands, and as many people are well aware based on first-hand experience – credit card companies can change the interest rate on your accounts for any reason, at any time. Maybe it happens as a result of the Universal Default – if you’re late on one payment and the credit card company finds out, they raise your rate. Often, it happens just because – since they are not prevented from changing the rates, a credit card company can change your terms whenever they feel it necessary whether you’ve made a late payment or not.

Delegate William Frick, D-Montgomery County, is heading up the bill that will make it illegal for credit card companies to retroactively change their interest rates. The agreement that the card companies enter into with the consumer states what the interest rates are – and they will have to stick to those terms. It doesn’t mean the rate couldn’t be increased for NEW PURCHASES made on that card; but it will at least prevent card companies from increasing the interest rate and applying it to the outstanding balance on the card already.

This is part of the federal regulations for all credit cards that will go into effect in July of 2010, but Frick hopes to get the bill passed for preventing retroactive credit card rate increases within Maryland much sooner to give consumers some much needed credit card relief.

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4 Reasons a Credit Card is Better Than Cash (if used correctly)

March 25, 2009 at 11:07 am · Filed under Choosing a Credit Card

We all know why credit cards are harmful to our financial situation when they’re used irresponsibly. When they are used and paid off when the statement arrives (like any other invoice that is due upon receipt!) you can actually benefit more from a credit card than if you made all purchases with cash. Here are 4 reasons a credit card is better than cash:

Easily have a record of all payments and purchases you make each month. If you stick to one or two credit cards for all expenses and purchases, you will have an itemized statement each month to show you exactly where your money is going, making it easier to stick to a budget.
Earn rewards and cash back. Why pay full price for anything? When you use a credit card with cash back, you get a portion of everything you pay for on your card back – which is the same as paying less than full price for your purchase. On cards that give rewards for your purchases, you can redeem for flights, gasoline, hotel stays, car rental, merchandise, etc. Using rewards cards leverages your expenses and helps you get more out of every dollar you spend.
Purchase protection. When you pay for things using a credit card that offers purchase protection, you give yourself another layer of protection on every purchase. If the item is not as described, you can let the card company know and they will handle the situation – ensuring you get another item to replace it or your money back. Many cards also offer warranty protection that goes above and beyond the store warranties. Your cash purchases only come with the standard warranty provided by the retailer.
Credit cards build up your credit score. When you use credit cards monthly and pay them off monthly, you are reported to the credit bureaus as being responsible with your money. When you need a loan or financing for a car or mortgage – chances are you’ll be able to get it with a good credit score. If you buy everything with cash, you won’t have a credit history and will be a riskier consumer in the minds of lenders.

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Online Credit Card Safety

March 24, 2009 at 11:16 am · Filed under Card Security, Card Technology

Using a credit card online presents a few risks that paying with cash in person doesn’t have. It’s important to realize that while using your credit card online does have a few risks – it’s not much different from the risks you face when handing your card to a cashier in any retail establishment.

Here are a few tips for using your credit card online, to help keep your personal information safe:

Make sure the website URL starts with “https”. The “S” shows that the website you are buying from is using a secure server.
Use a Visa card and sign up for Verified By Visa. When shopping online, Visa cardholders can require that they enter a password whenever they use their credit card on the internet. Even if someone got a hold of their card or the numbers -they wouldn’t be able to make an online purchase without also knowing the password.
Use a Mastercard and sign up for SecureCode. Just like Visa’s program, whenever you use your Mastercard online, you will be required to enter an additional password when processing your card for payment.

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3 Things You Should Know about Your Credit Score

March 18, 2009 at 1:00 pm · Filed under Credit Score

What you don’t know about your credit score can hurt you. That’s according to Liz Pulliam Weston, author of “Your Credit Score, Your Money & What’s at Stake”. Weston recently shared some tips with card holders who want to raise their credit scores and keep them high.

Tip 1: Missing a payment is the kiss of death to your credit score. One missed payment can drop your score 100 points, and the higher your score, the bigger the fall. Make your payments on time, every time.

Tip 2: You must distribute your purchases. A single large purchase that nearly maxes out one credit card is worse for your credit score than several smaller purchases spread out over many cards. Try never to charge more than 30% of your total availble credit on any one card.

Tip 3: It’s easier than ever to clean up your credit report. Order the FICO credit score, which is most likely the one your lenders are using to evaluate you. You can dispute the incorrect items online with the click of a mouse!

By following these simple tips, you can make the most of your credit score, even during the credit crunch. Good luck!

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