A few weeks ago, the news of the $5 debit card fee seemed to be an everyday occurrence. Most felt it was an unjust fee that should be absorbed by the banks. The banks maintained that they were simply testing it and that it had not been decided as of yet. The verdict is in- the fees are not going to happen now. (more…)

More than 30 million people in the United States have credit scores that make obtaining loans and credit cards with reasonable terms difficult. A bad credit score means you will pay more for loans. The better your credit the lower the interest rate you can secure on mortgages, loans and credit cards. Here are some guidelines to help fix your credit score:

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Your credit score plays an important role in determining if you and how much money you qualify for on loans. Your credit report is information that has been accumulated from your creditors and will determine your actual credit score.

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They are those little pieces of plastic that we all love so much. Convenient and fast, credit cards are a staple of American finances. With all the ease of credit cards come a few problems like overspending and fraud. Luckily, there are a few simple things you can do to make sure you use your credit cards smartly and safely.

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On a typical day you may write a check at the grocery store, apply for a new credit card, make a charge purchase at the mall and receive your bank statement in the mail. For each of these transactions, personal information is shared. These transaction include your bank or credit card account numbers, your income, your name, address and phone number and your social security number. This information can get into the wrong hands and can be used without your knowledge.

It can take up twelve months for you to realize you have been a victim of identity theft. It can cost hundreds of dollars and countless hours repairing the damage done to your credit record. You may even miss out on job opportunities or be denied loans because of the negative effects this had on your credit report.

Here are some of the most common ways thieves steal your identity:

• Skimming – Credit/debit card numbers are stolen by using a special storage device when processing your card.
• Phishing – Thieves pretend to be financial institutions or companies and send messages to victims to attempt to secure personal information. When this is done via the phone it is referred to as pretexting.
• Dumpster Diving – Trash is searched. Looking for bills or other personal information.
• Stealing – Stolen wallets and purses or mail which may include bank statements, new checks or tax information. Personnel records can be taken from an employer.

Once your personal information is obtained thieves open new credit accounts in your name or run up charges on your existing accounts. The billing address is changed so it will take you some time before you realize there is a problem. Thieves may also use your name to open a cell phone account or take out a bank loan. They can create counterfeit checks using your name and account number or open a new account and write bad checks. In extreme cases they can apply for a drivers license with your name and their picture.

Identity theft is a growing crime. Last year more than 9.9 million Americans were victims of identity theft and it cost them roughly 5 billion dollars. You need to know how to protect yourself. Some simple steps include:

• Shred all your personal information before you throw it in the garbage- this should include charge receipts, credit card offers and bank statements.
• Do not carry many credit cards with you. Also do not carry your checkbook, social security card, birth certificate or passport.
• Be aware when using an ATM as to who is nearby. Do not throw your receipt in the trash nearby.
• Never give out personal information like your credit card or bank account number over the phone or through the mail unless you initiated the contact or you are dealing with a legitimate business. Also secure such personal information in your home.
• Review your credit reports at least once year.
• Deposit all mail in U.S. Postal Service collection boxes. Do not leave mail in your mailbox overnight or over the weekend. If you will be away, request a vacation hold from the post office.
• Monitor your bank and credit card statements monthly.
• When ordering new checks, pick them up at your bank rather than having them mailed to you.
• Update your computer’s virus protection software regularly Do not open emails from strangers sent to you. Use a firewall and a strong password.

You should also be on the lookout for signs that identity theft may be taking place. These can include:

• Receiving credit cards you did not apply for
• Not receiving your bills or other mail
• Receiving calls from debt collectors for merchandise or services you did not buy
• Denial of credit for no reason

If you are a victim of identity theft, take these steps as soon as possible:

• Place a fraud alert on your credit reports and review them.
• Close all the accounts you know or think were tampered with by calling the security department of each company. Then follow up in writing via certified mail. Keep copies of your letters got your records.
• File a police report and get a copy for your records.
• File a complaint with the Federal Trade Commission.

If you use this knowledge to protect yourself you can make a thieves’ job more difficult. You can also educate your family and friends. Awareness and managing your personal information carefully can minimize your risk.

While many are simply hanging on to their jobs for dear life, some are also having trouble paying their credit card bills on time without the use of payday loans or other short term financing. September was a bad month with many credit card companies noting that delinquencies were up more than usual, something they have not seen for over two years.

Balances went down in August, meaning that consumers were focusing on paying down debt, but increased spending seems to have caused the small increases in delinquencies. The amount of total revolving credit is down to $790 billion from a high of almost one trillion dollars toward the end of 2008 when the economy was booming and before things started to spiral out of control. (more…)

If you have good credit and your family’s current salaries are up to snuff, you may be able to get a zero percent interest credit card if you look around hard enough. A couple of years back, these offers were few and far between, but credit is loosening up, which is good for consumers as they have been stuck with high interest cards for far too long. A zero percent interest card can save you quite a bit of money over a short period of time. If you have good credit that you built up during the downturn, you may be able to transfer your high interest balances to a low interest card right away.

Large banks such as Chase and Bank of America are starting to get into the low interest credit card business again now that credit is getting easier to come by and the flow of money is better that it was during the credit freeze a few years back. Fees are higher now and the credit score you need to have to get such a rate is much higher, but they are out there and that spells savings for many. (more…)

Credit card use is one of the many ways people get by these days. They assume paying the interest on a credit card is less expensive than payday loans, so they do what they have to in times of need. This year alone, credit card use is expected to be around $54 billion, so although many are saving, many are also amassing large amounts of debt as well.

Overspending can be a problem for many. Even if we budget, the lure of a high available balance can cause us to loosen the reins and spend. What if there was a card that could cut us off, one that can make sure that we don’t spend too much and one that will automatically keep us on budget? MasterCard is hoping that someone will want to use such a card. (more…)

A couple of years ago, you couldn’t find any credit. The credit freeze extended to mortgage lenders as well as to credit card companies. Although things aren’t all peachy keen now, Citigroup is apparently interested in extending credit to just about anyone. They have sent out more than 340 million offers, which is more than the entire population of the U.S.

That may be considered a good effort, but not many are interested as revolving credit use was down in July to record lows. People are saving and trying their hardest to avoid getting themselves into more debt. Even though this much saving and conservative amounts of spending will not help the economy, it is good to see people spend responsibly and save whatever they can for the future. (more…)

The credit crunch has caused serious problems with consumers as credit card companies were finding ways to charge much more than they should have for basic services. The government has been working with them to help the consumer escape some of the high fees, which in many cases, resulted in the use of a cash advance to pay the credit card bill, and harsh rules that were difficult not to break. (more…)