They're now the fastest growing payment method. Americans spent about $37 billion on prepaid debit cards last year -- double the amount from 2009, according to the Network Branded Prepaid Card Association.
Yet you may get socked with higher fees when using them, compared to traditional bank checking accounts where fees also are rising, according to a recent Consumer Reports study.
Read more:
RESOURCES:
Secured Credit cards
Prepaid Debit Cards
Wednesday, August 10, 2011
Wednesday, July 20, 2011
8 Considerations For Using Your Credit Card Abroad
Are you planning to travel abroad this summer? Which credit card you take with you on your next international trip could have a big impact on the final cost of your journey and on how smoothly your trip goes. Here are the terms and features you should look for when choosing the right credit card for travel outside the United States.
1. Foreign Transaction Fees
Many credit cards charge a foreign transaction fee of 3% per purchase. If you pay for all of your hotel stays and most of your meals and other expenses on a credit card while you’re abroad, those repeated 3% fees will add up by the time you get home.
Read full story
1. Foreign Transaction Fees
Many credit cards charge a foreign transaction fee of 3% per purchase. If you pay for all of your hotel stays and most of your meals and other expenses on a credit card while you’re abroad, those repeated 3% fees will add up by the time you get home.
Read full story
Monday, July 18, 2011
The Path to Good Credit After College
Dear Opening Credits,
I do not have a credit card because I just graduated from college. I owe on student loans that I need to repay, but in the meantime I would like to get a credit card of my own and want to get a credit history so I can get a card.What do you think I should do? Would a prepaid card help me? Thanks for your thoughts.
-Vanessa
Dear Vanessa,
Congratulations! Did you know that only about a third of Americans have four-year college degrees? And now that you do, it's time you augment it with some real life lessons about money and credit. Here's my four-part, tuition-free course:
Read more:
RESOURCES
I do not have a credit card because I just graduated from college. I owe on student loans that I need to repay, but in the meantime I would like to get a credit card of my own and want to get a credit history so I can get a card.What do you think I should do? Would a prepaid card help me? Thanks for your thoughts.
-Vanessa
Dear Vanessa,
Congratulations! Did you know that only about a third of Americans have four-year college degrees? And now that you do, it's time you augment it with some real life lessons about money and credit. Here's my four-part, tuition-free course:
Read more:
RESOURCES
Wednesday, July 13, 2011
New Bank Rules: Free Credit Scores with Loan Denials
Most of us don’t know our credit scores, but beginning next week there will be a new, free way for some of us to learn. Starting July 21, if you are denied a private student loan, small business loan, mortgage or credit card — or even given one but with a less favorable rate — the lender must provide you with a letter explaining why, and include the credit score it used to arrive at its decision.
The Federal Reserve Board and Federal Trade Commission jointly decided to enact this law to help create more transparency in the lending market. But if you don’t know your credit score ahead of applying for a loan, best not to wait for a rejection letter from the bank.
Read full story
RESOURCES:
The Federal Reserve Board and Federal Trade Commission jointly decided to enact this law to help create more transparency in the lending market. But if you don’t know your credit score ahead of applying for a loan, best not to wait for a rejection letter from the bank.
Read full story
RESOURCES:
Tuesday, July 12, 2011
Lenders now have to tell you your credit score if denied
CAPE GIRARDEAU, MO (KFVS) - If you don't know your credit score, you might find out from an unexpected source.
Starting July 21st, the government will require banks and lenders to tell you your score if they deny your request for a loan or credit card.
They're just numbers. Just three little numbers. But put those numbers together, and they can be a sign of your future. They can determine if you can buy a car, afford a new house, or open a credit card. That's right we're talking about your credit score.
Read full story
RESOURCES:
* Secured Credit Cards
* Prepaid Credit Cards
Starting July 21st, the government will require banks and lenders to tell you your score if they deny your request for a loan or credit card.
They're just numbers. Just three little numbers. But put those numbers together, and they can be a sign of your future. They can determine if you can buy a car, afford a new house, or open a credit card. That's right we're talking about your credit score.
Read full story
RESOURCES:
* Secured Credit Cards
* Prepaid Credit Cards
Monday, July 11, 2011
Prepaid Credit Card Fees May Drop Thanks to Failed Lawsuit Against Kardashians Read more: http://www.foxbusiness.com/personal-finance/2011/06/16/prep
The drama surrounding the infamous Mobile Resource Card, much better known as the Karadashian Kard, is almost over.
In case you haven't heard, Revenue Resource Group, the Clovis, Calif. company that produced the well-known reloadable credit card, attempted to sue the reality television stars and sisters Kim, Khloe and Kourtney Kardashian, as well as their mother, Kris Jenner, for $75 million. But the case was thrown out this week by a judge in Fresno's California Superior Court.
Revenue Resource Group claimed that the reason the Kardashian Kard tanked as a product was because its celebrity spokespersons disparaged it to the press. Ergo, it was also their fault that other celebrity endorsement deals fell through.
Read full story
In case you haven't heard, Revenue Resource Group, the Clovis, Calif. company that produced the well-known reloadable credit card, attempted to sue the reality television stars and sisters Kim, Khloe and Kourtney Kardashian, as well as their mother, Kris Jenner, for $75 million. But the case was thrown out this week by a judge in Fresno's California Superior Court.
Revenue Resource Group claimed that the reason the Kardashian Kard tanked as a product was because its celebrity spokespersons disparaged it to the press. Ergo, it was also their fault that other celebrity endorsement deals fell through.
Read full story
Tuesday, July 5, 2011
Debt Adviser: Credit card bill requires discipline to fix
Dear Debt Adviser: I am considering refinancing my mortgage. My plan is to take out cash to pay off my $80,000 credit card debt, which is more than the $63,000 I owe on the house. I can easily handle the new monthly payment. With the savings from not making credit card payments, I can make additional payments on the mortgage principal. My current mortgage has 11 years remaining, and the new mortgage would be for 15 years. So in other words, I'd be paying my house off in about the same time frame, anyway. Would this be a well-advised move? -- Robert
Dear Robert: Eighty thousand dollars on your credit cards? That is a huge amount of debt. Before you do anything, I want you to seriously analyze how you acquired so much debt. You must be sure that you can live day to day without racking up another $80,000 in new debt after any refinancing.
Read full story
Dear Robert: Eighty thousand dollars on your credit cards? That is a huge amount of debt. Before you do anything, I want you to seriously analyze how you acquired so much debt. You must be sure that you can live day to day without racking up another $80,000 in new debt after any refinancing.
Read full story
Monday, July 4, 2011
Prepaid Credit Cards: Stay within Budget this Summer
The cost of living is causing many Brits to worry about their finances this summer, so this article takes a look at how the consumer can take the stress out of budgeting.
A prepaid credit card can be used in a similar way as a normal credit or debit card, in that users can make purchases with it in retail shops, online, and to retrieve cash.
Even if a consumer has a bad credit rating, they will be able to receive a prepaid credit card as a person’s credit history is not even analysed.
Read full story
A prepaid credit card can be used in a similar way as a normal credit or debit card, in that users can make purchases with it in retail shops, online, and to retrieve cash.
Even if a consumer has a bad credit rating, they will be able to receive a prepaid credit card as a person’s credit history is not even analysed.
Read full story
Wednesday, June 15, 2011
Credit Cards Becoming Harder To Get
New research by Credit Confidential shows that it is becoming more difficult for consumers to obtain unsecured credit from lenders.
By comparison, secured loans such as mortgages are now 13% more likely to be rejected, meaning one in three people will fail in their secured loan application. This is the highest failure rate since the height of the financial crisis in 2009.
Failed applicants also face an additional challenge: ‘footprints’ in their credit history.
Each time an application is filed, it is noted on your credit history, which is shared among credit card companies. If they see you’ve been turned down elsewhere, especially more than once, they are less likely to approve your application.
Read full story
By comparison, secured loans such as mortgages are now 13% more likely to be rejected, meaning one in three people will fail in their secured loan application. This is the highest failure rate since the height of the financial crisis in 2009.
Failed applicants also face an additional challenge: ‘footprints’ in their credit history.
Each time an application is filed, it is noted on your credit history, which is shared among credit card companies. If they see you’ve been turned down elsewhere, especially more than once, they are less likely to approve your application.
Read full story
Tuesday, June 14, 2011
5 Money 'Rules' Meant to be Broken
There are many money "truisms" that can keep you in the poorhouse.
You've probably heard them all, from ancient admonishments against any borrowing, to modern urban legends such as "you have to carry a balance to build credit."
So while some money rules should be taken with a grain of salt, others just need to be thrown out with the trash.
"A lot of times there's that kernel of truth in there," says Bill Druliner, financial counselor and group manager for GreenPath Debt Solutions. "Or it's true in some situations and not in all in others."
Read full story
Resources:
You've probably heard them all, from ancient admonishments against any borrowing, to modern urban legends such as "you have to carry a balance to build credit."
So while some money rules should be taken with a grain of salt, others just need to be thrown out with the trash.
"A lot of times there's that kernel of truth in there," says Bill Druliner, financial counselor and group manager for GreenPath Debt Solutions. "Or it's true in some situations and not in all in others."
Read full story
Resources:
Monday, June 13, 2011
Beware prepaid card scams and the Bluetooth Bandit
One nice, unexpected bonus about researching credit card crime has been the lessons one picks up. In fact, both would-be victims and criminals can learn a thing or two by what's been going on in the news lately. Not sure what I mean? Well, here's what all people--both the good guys and the bad--can learn from the latest in credit card thievery.
The lesson for would-be crooks: If you're annoyed at your ex, don't steal her credit card. And certainly don't tell her you're stealing it.
The crime: In Bracebridge, Ont., James Hynes, 49, was apparently irked because his ex-partner had hidden the keys to his truck. So Hynes took her credit card from her purse, showed it to her through the window and then left. Even more stupid, Hynes then proceeded to take out a cash advance of $2,000 with the card and spent $960 of it before the police found him.
Read more:
The lesson for would-be crooks: If you're annoyed at your ex, don't steal her credit card. And certainly don't tell her you're stealing it.
The crime: In Bracebridge, Ont., James Hynes, 49, was apparently irked because his ex-partner had hidden the keys to his truck. So Hynes took her credit card from her purse, showed it to her through the window and then left. Even more stupid, Hynes then proceeded to take out a cash advance of $2,000 with the card and spent $960 of it before the police found him.
Read more:
Thursday, June 9, 2011
Wise To Prioritize Credit Cards Over Mortgage Payments?
The U.S. Census Bureau expects 188 million active credit card holders this year. Credit reporting agency Transunion says there is a growing number of Americans who are paying their mortgages late so they can pay their credit card bills on time. Host Michel Martin and personal finance expert Alvin Hall discuss whether or not logic exists behind this balancing act. They also review other important news in the credit world.
Read full story
RESOURCES:
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RESOURCES:
Tuesday, June 7, 2011
10 ways to improve your credit score
With tougher credit standards post-housing boom, it's more important than ever that would-be home buyers have good credit.
But what do you do if you don't?
Advice and tips on improving your credit score are all over the Internet, in variations of five or 10 or seven. Many of the lists are pretty obvious and tend to repeat each other -- telling you to do simple things like pay your bills on time, don't max out your credit cards and know what your credit score is.
But there's one list I think is a little better at About.com, called "10 Things You Can Do Today To Improve Your Credit Score."
Read full story
RESOURCES:
But what do you do if you don't?
Advice and tips on improving your credit score are all over the Internet, in variations of five or 10 or seven. Many of the lists are pretty obvious and tend to repeat each other -- telling you to do simple things like pay your bills on time, don't max out your credit cards and know what your credit score is.
But there's one list I think is a little better at About.com, called "10 Things You Can Do Today To Improve Your Credit Score."
Read full story
RESOURCES:
Monday, June 6, 2011
Mortgage Q&A: Wiser after credit score hassle
In March 2009 I shared my personal story of discovering an incorrect identity on my credit report. While applying for an equity loan, I discovered Transunion, one of the three national credit reporting agencies, was reporting a different name under my Social Security number.
Unfortunately, this fellow had terrible credit, resulting in Transunion reporting my credit score as an appalling 533. Equifax and Experian, the other two agencies, scored me in the 790s.
Read full story
Resources:
Unfortunately, this fellow had terrible credit, resulting in Transunion reporting my credit score as an appalling 533. Equifax and Experian, the other two agencies, scored me in the 790s.
Read full story
Resources:
Friday, June 3, 2011
Aging Card Technology Drives Rise In Credit Fraud
U.S. credit and debit card fraud is on the rise. According to one survey, nearly a third of American consumers have reported credit card fraud in the past five years.
And part of the problem, as Andrea Rock of Consumer Reports tells NPR's Mary Louise Kelly, is that U.S. card issuers rely on security systems that lag behind measures taken in other countries.
"The credit and debit cards that most Americans use are really surprisingly vulnerable to fraud," Rock says. "Because, unlike cards in most of the rest of the world, they rely on outdated technology."
Read full story
And part of the problem, as Andrea Rock of Consumer Reports tells NPR's Mary Louise Kelly, is that U.S. card issuers rely on security systems that lag behind measures taken in other countries.
"The credit and debit cards that most Americans use are really surprisingly vulnerable to fraud," Rock says. "Because, unlike cards in most of the rest of the world, they rely on outdated technology."
Read full story
Wednesday, June 1, 2011
Banks' New Money Machine: Prepaid Cards
Gus Artiles used to wait anxiously for the mail carrier on Friday afternoons, hoping his California state disability insurance check would arrive before his bank closed for the day. Now Artiles, 54, doesn't worry about the the mail. By Friday morning, Bank of America (BAC) automatically loads his funds onto a prepaid card, which Artiles uses to buy groceries and gas like a regular debit card. "It's a beautiful thing," he says. "It's more convenient, and you get your money a lot faster."
Read full story
Read full story
Thursday, May 26, 2011
Prepaid Debit Cards Attracting Drug Couriers
Drug couriers have turned to an unlikely source that allows them to remain mostly anonymous while moving drugs across the border—prepaid credit and debit cards.
According to National Drug Intelligence Center estimates, between $18 billion and $39 billion in U.S. currency from drug sales travels across the border to Mexico each year. And a Government Accountability Office (GAO) report released last October found that one way the cartels are moving the money across the border is through a new way of money laundering: using pre-paid debit cards. Prepaid cards can hardly be distinguished from other credit or debit cards, and can also process up to tens of thousands of dollars a month.
Read more:
According to National Drug Intelligence Center estimates, between $18 billion and $39 billion in U.S. currency from drug sales travels across the border to Mexico each year. And a Government Accountability Office (GAO) report released last October found that one way the cartels are moving the money across the border is through a new way of money laundering: using pre-paid debit cards. Prepaid cards can hardly be distinguished from other credit or debit cards, and can also process up to tens of thousands of dollars a month.
Read more:
Tuesday, May 24, 2011
New study on credit report accuracy raises eyebrows
99% of Credit Reports Are Void of Material Errors!
No, that’s not a fictitious headline designed to infuriate you into reading this piece. It’s actually part of the findings of a recently published study on the accuracy of credit reports by an organization called the Policy and Economic Research Council, or “PERC.” In fact, according to their research .93% of credit reports had an error that, when corrected, resulted in an increase of greater than 25 credit score points, which is what they considered as a “material error.”
No, that’s not a fictitious headline designed to infuriate you into reading this piece. It’s actually part of the findings of a recently published study on the accuracy of credit reports by an organization called the Policy and Economic Research Council, or “PERC.” In fact, according to their research .93% of credit reports had an error that, when corrected, resulted in an increase of greater than 25 credit score points, which is what they considered as a “material error.”
The PERC study, which I encourage you to download from their website here, is one of those studies that gives pause because, frankly, the results are almost completely unbelievable. I mean, who honestly believes that 0.93% of credit reports contain material errors? Can that really be true?
Read full story
Read full story
Monday, May 23, 2011
Travel tech: best prepaid SIM cards for travel to New Zealand
If you're travelling to New Zealand, the last thing you should do is leave your phone in global roaming mode. As we've covered recently, both phone calls and data are extortionately expensive when roaming with your Australian telco.
Optus customers travelling to New Zealand are particularly hard hit, with the worst data roaming rates of all the Australian mobile networks -- a minimum of $9.09 per megabyte, and $20/MB if you forget to pre-arrange a roaming plan with Optus.
Read full story
Optus customers travelling to New Zealand are particularly hard hit, with the worst data roaming rates of all the Australian mobile networks -- a minimum of $9.09 per megabyte, and $20/MB if you forget to pre-arrange a roaming plan with Optus.
Read full story
Thursday, May 19, 2011
UPDATE 2-Florida AG says investigating 5 prepaid debit card cos
* Subpoenas also issued for possible hidden fees on prepaid debit cards
* Cos issues subpoenas must provide requested information by June 20
* NetSpend, Green Dot shares close in the red (Adds details in para 4, 5, background in para 6-7, 9-12; analyst comment in para 8)
By Brenton Cordeiro
May 19 (Reuters) - The Florida Attorney General's office said it was investigating prepaid debit card companies -- First Data Corp, Green Dot Corp , Account Now Inc, NetSpend Corp and Unirush Financial Services LLC -- for possible deceptive and unfair practices.
Read full story
Prepaid Credit Cards
Secured Credit Cards
* Cos issues subpoenas must provide requested information by June 20
* NetSpend, Green Dot shares close in the red (Adds details in para 4, 5, background in para 6-7, 9-12; analyst comment in para 8)
By Brenton Cordeiro
May 19 (Reuters) - The Florida Attorney General's office said it was investigating prepaid debit card companies -- First Data Corp, Green Dot Corp , Account Now Inc, NetSpend Corp and Unirush Financial Services LLC -- for possible deceptive and unfair practices.
Read full story
Prepaid Credit Cards
Secured Credit Cards
Monday, May 16, 2011
What are prepaid forex cards?
Prepaid cards are used for making payments while you are travelling abroad. These are pre-loaded and enable you to access money in the required regional currency. You can also top it up depending on your requirement. The card allows you to withdraw cash in foreign currency, check your balance and shop. Banks such as ICICI Bank, HDFC Bank, State Bank of India, Standard Chartered and Axis Bank offer prepaid forex cards.
How do you apply and what is the limit?
You need to submit FormA2 and any other required forex document (as mandated under Foreign Exchange Management Act regulations), proof of passport and required funds. Once the funds get cleared or are paid to bank, the card gets activated. For leisure trips, you can load the card for a maximum of $10,000 (Rs 4.5 lakh) and $25,000 (Rs 11.25 lakh) for business trips. Banks charge between Rs 100-300 per card.
Read full story
How do you apply and what is the limit?
You need to submit FormA2 and any other required forex document (as mandated under Foreign Exchange Management Act regulations), proof of passport and required funds. Once the funds get cleared or are paid to bank, the card gets activated. For leisure trips, you can load the card for a maximum of $10,000 (Rs 4.5 lakh) and $25,000 (Rs 11.25 lakh) for business trips. Banks charge between Rs 100-300 per card.
Read full story
Are Prepaid Debit Cards Worth Buying Into?
If you're thinking about getting a prepaid debit card like the one the Kardashian sisters launched a while ago you should know the whole deal behind it. While the reality stars' venture ultimately failed, there are plenty of other cards out there that are targeting teens. However, MyBankTracker.com CEO Alex Matjanec says they may not be the best way to go.
"I have always been intrigued as to why consumers would go the prepaid card direction versus a traditional credit or debit card," he says. "For the teen demographic that these cards mainly target, products such as a savings or checking account should not be an issue and opening a kids or student checking out is definitely a more appropriate option."
Read full story
Secured Credit Cards
Prepaid Credit Cards
"I have always been intrigued as to why consumers would go the prepaid card direction versus a traditional credit or debit card," he says. "For the teen demographic that these cards mainly target, products such as a savings or checking account should not be an issue and opening a kids or student checking out is definitely a more appropriate option."
Read full story
Secured Credit Cards
Prepaid Credit Cards
Sunday, May 15, 2011
8 Reasons Why You Should Use a Credit Card
1. Credit building
Having a solid credit history is necessary to garner approval for a loan, get a mortgage, buy or lease a car, or be seriously considered for some jobs. Use of a credit card is unquestionably the easiest, least expensive, and most efficient way to build credit. Why? Well, because credit card usage information gets sent to your major credit reports each month, thereby allowing a lot of information about your fiscal responsibility to compile quickly. Interestingly, since this information reflects both what you do and don’t do with a credit card, actually making purchases isn’t even necessary to build credit. Simply by maintaining a card in good standing and at zero balance, you’ll be viewed as a responsible consumer.
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