Credit Card Blog

Pre-screened credit card offers account for a depressingly large amount of junk mail. We’re all familiar with those marketing ploys that congratulate us on our pre-approval, never mind the fact that we can’t be pre-approved for a card we didn’t apply for!

But don’t make the mistake of tossing out these offers like regular junk mail. Left intact, they are tempting targets for identity thieves. These offers should be shredded or otherwise destroyed before they ever hit a wastebasket, lest thieves start accumulating debt on your behalf.

Even better, use Opt Out Pre-Screen to stop receiving unwanted credit card offers. Opt Out Pre-Screen is an official service in accordance with the Fair Credit Reporting Act, which gives customers the right to decline such mailings.

By filling out the online form, you can opt out of pre-screened credit offers for five years. If you mail in a paper form, you can opt out for good. If you later change your mind, you can always opt back in. One caveat: It can take weeks or months for the offers to stop coming. But when they do, and you’ve reclaimed your mailbox space, you’ll know that the minute or so you spent filling out the form was a minute or two well spent.

You can help your college student learn responsible credit card use with a card like the Citi Dividend Platinum Select Visa (for college students).  There is no annual fee and you can set the card limit.  You will want to set it low to begin with, so perhaps $500.

How is it risk free?  You can use Citi’s online account management system to monitor the credit usage or by calling a toll free number.  The card reports to credit bureaus which means Junior is building a credit report and you are teaching responsible credit card skills that he or she can take right into their life-after-college.  Think of it as the last opportunity to help your child learn valuable money management skills.

The card comes with a cash back offer, travel accident insurance and other bonuses that can come in handy for college students- including credit education articles.

As you know, negative credit scores can have an impact on your ability to land a job. But if you’ve been the victim of identity theft, or had a freeze placed on your credit for any reason, that freeze could also keep you from getting a job.

When you place a freeze on your credit, you prevent people from gaining access to your credit history - including prospective employers. This is great for those who fear they might have been, or have reason to believe they will be, victims of identity fraud. But now that more and more employers run background checks and credit checks on potential hires, job seekers need to make sure that their credit history can be seen. It’s a competitive world out there for job seekers, and it would be a shame to lose an opportunity to another candidate whose credit history was readily available.

Luckily, the fix is simple; just lift the freeze with all three credit bureaus before you start going to job interviews. There might be a small fee involved; be sure to contact the bureaus to see what their terms and requirements are.

Some of the biggest names in credit card issuers, including Bank of America Corp, JPMorgan Chase & Co, Citigroup Inc and Washington Mutual, spent about $25 million between 2004 and 2005- working to get changes to bankruptcy laws that would help protect their profits when people filed bankruptcy.

 They got what they wanted- and it is increasingly difficult for consumers to write off their credit card debt by declaring bankruptcy.  So what’s happening? People are putting their credit card payments ahead of their mortgages- and the number of foreclosures is skyrocketing.  About 70% of individuals who are more than three months late on their mortgage are making payments on time for their credit card accounts.

The changes to the bankruptcy code makes it more difficult for consumers to qualify for a Chapter 7 bankruptcy.  Chapter 7 is the one that would wipe out non-mortgage debts (like credit cards).