If you happen to have a weak monetary history, you may think that there is no way out of the monetary abyss that you are in. But there are solutions. You may be able to acquire a credit card which will help you to upgrade your rank with the rating brokers.
Folks who have unpleasant credit scores are frequently turned down when they submit an application to make an effort to obtain a new credit card. Can you blame the lending companies for turning these people down? If these persons retain a mediocre track record for repaying their debts, it only makes common sense to believe that they will again in the future, fail to make their payments in a timely manner. As such, it can be expected that it will be tricky for people in those situations to try to get a credit card. So yes, people with a bad credit history will frequently be turned down for a loan claim from most lending institutions. However, if you are in this position, all may not be lost. You can easily be able to locate lenders who would be prepared to offer you a card, despite of your FICO score. You read that correctly. You can easily acquire a bad credit Visa card. There are a few banks who might be disposed to grant credit cards to persons who have a bad credit history.
Once the banks give you a card, this lets you to make use of cash in order to obtain goods and services or to pay off other debts. Each month, when your bill comes, and you make payments (either in its entirety or in part), you are improving your score. Banks who hand out these cards will transmit your information to the main reporting brokers. As a result just by paying your bills you can enhance your rating.
If you have a shoddy finance history, and you are able to locate a bank or other lending establishment that is ready to lend you cash, you ought to agree to it. But you have to use this financing vehicle reliably – make purchases and pay your bill each month. You will gain purchasing power and advance your score with the rating agencies at the same time. Having the buying power and improving your FICO score is an excellent combination.
As you can see, a credit card can help you to buy goods and services while improving your credit score, which will make it easier for you to borrow even more money in the future, if the need arises. Several banks will even offer a bad credit Visa card to folks with an exceedingly questionable financial history. Don’t permit your deficient economic history obstruct you from finding a new credit card, paying your bills on time, and getting your finances in order.
Shortcut to useful info about the topic of 90 junk silver – make sure to study the web site. The times have come when proper info is truly within your reach, use this possibility.
If you happen to have a weak monetary history, you may think that there is no way out of the monetary abyss that you are in. But there are solutions. You may be able to acquire a credit card which will help you to upgrade your rank with the rating brokers.
Folks who have unpleasant credit scores are frequently turned down when they submit an application to make an effort to obtain a new credit card. Can you blame the lending companies for turning these people down? If these persons retain a mediocre track record for repaying their debts, it only makes common sense to believe that they will again in the future, fail to make their payments in a timely manner. As such, it can be expected that it will be tricky for people in those situations to try to get a credit card. So yes, people with a bad credit history will frequently be turned down for a loan claim from most lending institutions. However, if you are in this position, all may not be lost. You can easily be able to locate lenders who would be prepared to offer you a card, despite of your FICO score. You read that correctly. You can easily acquire a bad credit Visa card. There are a few banks who might be disposed to grant credit cards to persons who have a bad credit history.
Once the banks give you a card, this lets you to make use of cash in order to obtain goods and services or to pay off other debts. Each month, when your bill comes, and you make payments (either in its entirety or in part), you are improving your score. Banks who hand out these cards will transmit your information to the main reporting brokers. As a result just by paying your bills you can enhance your rating.
If you have a shoddy finance history, and you are able to locate a bank or other lending establishment that is ready to lend you cash, you ought to agree to it. But you have to use this financing vehicle reliably – make purchases and pay your bill each month. You will gain purchasing power and advance your score with the rating agencies at the same time. Having the buying power and improving your FICO score is an excellent combination.
As you can see, a credit card can help you to buy goods and services while improving your credit score, which will make it easier for you to borrow even more money in the future, if the need arises. Several banks will even offer a bad credit Visa card to folks with an exceedingly questionable financial history. Don’t permit your deficient economic history obstruct you from finding a new credit card, paying your bills on time, and getting your finances in order.
Shortcut to useful info about the topic of 90 junk silver – make sure to study the web site. The times have come when proper info is truly within your reach, use this possibility.
Credit card debt
‘Credit card debt’ is a much discussed topic in the commercial and social circles. A big section of the population has been bit by this bug called ‘credit card debt’. Can’t blame them much; as such, it’s pretty easy to fall prey to this bug.
The main reason behind so many credit card casualties (rather credit card debt related casualties) is that many people don’t understand the concept of credit cards properly. They treat credit card as free money that is never to be returned. Thus all the discipline, which would otherwise have been exercised with spending hard-earned money, goes for a toss. That means people overspend and get into credit card debt. They keep spending till they reach the credit limit on their credit card. Some people go to the extent of treating that like a game and consider it a defeat (or consider their credit card under utilised) if they don’t hit the credit limit quick enough. These unnecessary spends result in a situation where they are not able to payback their credit card bills and end up paying interest on the amount they owe. This keeps building up their credit card debt and they soon find that the interest component has become a regular feature in their monthly expenses and it is there even if they spend nothing on their credit card. That is credit card debt on the prowl. Soon they find that their current credit card can no longer handle their needs and start looking to get another credit card. With the new power of credit, they let themselves loose again and follow a ‘shop till you drop’ routine. Soon the credit limit of the new credit card is reached too and they again default on payments. This is how credit card debt builds. Soon they learn about credit card debt consolidation and other credit card debt elimination techniques. They are quick to grab such credit card debt reduction techniques, but that’s not because they are serious about reducing their credit card debt but because of the attractive low APR offers. As if it were booty, they again get back to building up their credit card debt. All the while they are spoiling their credit card rating and they soon realise that no one is ready to lend them money because of their credit history. They can only get a secured credit card now (where you first deposit money into your credit account and then only you get the privilege of spending it (50-100% of it) using their credit card. Credit card debt collection agencies, auction of their goods and bankruptcy is the next thing that hits them and their dream run is blown away in a moment.
The moral of the story – “Understand the concept of credit cards and treat credit card debt with all seriousness”.
[Sponsored] Bryan Seawell is the proud owner of this article and he owns a site called: “one week marketing“. See how he can help you with his site: “one week marketing” and allow him to share with you his best known secrets here at his exclusive site, “one week marketing review“. Thank you for your trust and belief in Bryan. Hope it will benefit you and others. Have a wonderful day ahead. [Sponsored]
Credit card debt
‘Credit card debt’ is a much discussed topic in the commercial and social circles. A big section of the population has been bit by this bug called ‘credit card debt’. Can’t blame them much; as such, it’s pretty easy to fall prey to this bug.
The main reason behind so many credit card casualties (rather credit card debt related casualties) is that many people don’t understand the concept of credit cards properly. They treat credit card as free money that is never to be returned. Thus all the discipline, which would otherwise have been exercised with spending hard-earned money, goes for a toss. That means people overspend and get into credit card debt. They keep spending till they reach the credit limit on their credit card. Some people go to the extent of treating that like a game and consider it a defeat (or consider their credit card under utilised) if they don’t hit the credit limit quick enough. These unnecessary spends result in a situation where they are not able to payback their credit card bills and end up paying interest on the amount they owe. This keeps building up their credit card debt and they soon find that the interest component has become a regular feature in their monthly expenses and it is there even if they spend nothing on their credit card. That is credit card debt on the prowl. Soon they find that their current credit card can no longer handle their needs and start looking to get another credit card. With the new power of credit, they let themselves loose again and follow a ‘shop till you drop’ routine. Soon the credit limit of the new credit card is reached too and they again default on payments. This is how credit card debt builds. Soon they learn about credit card debt consolidation and other credit card debt elimination techniques. They are quick to grab such credit card debt reduction techniques, but that’s not because they are serious about reducing their credit card debt but because of the attractive low APR offers. As if it were booty, they again get back to building up their credit card debt. All the while they are spoiling their credit card rating and they soon realise that no one is ready to lend them money because of their credit history. They can only get a secured credit card now (where you first deposit money into your credit account and then only you get the privilege of spending it (50-100% of it) using their credit card. Credit card debt collection agencies, auction of their goods and bankruptcy is the next thing that hits them and their dream run is blown away in a moment.
The moral of the story – “Understand the concept of credit cards and treat credit card debt with all seriousness”.
[Sponsored] Bryan Seawell is the proud owner of this article and he owns a site called: “one week marketing“. See how he can help you with his site: “one week marketing” and allow him to share with you his best known secrets here at his exclusive site, “one week marketing review“. Thank you for your trust and belief in Bryan. Hope it will benefit you and others. Have a wonderful day ahead. [Sponsored]
In the midst of the growing costs of airfare, the having a airmiles credit card that earns airmiles with purchases appeals to several people. Both American Express and Discover own such products. Any product spoken about in this commentary has an online application form, which helps speed your way into enjoying an air miles credit card.
American Express airline rewards programs include such features as:
The ability to earn travel miles on all you buy with the Card.
You can redeem your points for savings, earning up to $100 off for every 7,500 points.
You can use the points for the buying of any airline ticket, discounted rates at any hotel, any cruise or any car rental you choose, on any day, any time of the year! It only gets better. You do not have to make any advance purchases, nor are there any hotel room or travel restrictions in order for you to gain these benefits.
You can have your credit card replaced in as little as 24 hours if it is either lost or stolen. You should report it immediately if your card is missing or stolen.
Worldwide hotline support is provided so that if you travel more than 100 miles away from home, American Express will provide you with emergency help, 24/7 – including medical help, legal aid, visa and passport assistance, easy cash access etc.
Security against fraudulent and unauthorized charges
Satisfaction guaranteed on designated items within 90 days of purchase
Round the clock online access to your account. You can pay your bills online etc.
Online account summary. Easy account reconciliation.
For people who want to amass miles to be used on only one airline, an American Express Delta Reserve airmiles credit card earns miles exchangeable through the Delta SkyMiles program. Unlike the majority of American Express cards, a balance can be carried from month to month. This product is designed for consumers with good to excellent credit.
The card’s annual fee is $450, but is lowered to $395 for those who have another qualifying American Express credit card product. The first purchase earns 10,000 Medallion Qualification Miles. There are also possible annual bonus air miles of 30,000 MQMs and 30,000 further miles. An American Express Delta Reserve card holder can also use their miles to secure Delta tickets for friends, family, and business associates. An extra benefit is Crown Club Access in Delta terminals for the customer and up to two guests. In addition, personal assistance for airmiles credit card customers includes availability of concierge consultants, who can help make dinner and other reservations as needed.
Find important knowledge about managed forex trading – please make sure to read this web page. The times have come when proper info is truly within one click, use this chance.
In the midst of the growing costs of airfare, the having a airmiles credit card that earns airmiles with purchases appeals to several people. Both American Express and Discover own such products. Any product spoken about in this commentary has an online application form, which helps speed your way into enjoying an air miles credit card.
American Express airline rewards programs include such features as:
The ability to earn travel miles on all you buy with the Card.
You can redeem your points for savings, earning up to $100 off for every 7,500 points.
You can use the points for the buying of any airline ticket, discounted rates at any hotel, any cruise or any car rental you choose, on any day, any time of the year! It only gets better. You do not have to make any advance purchases, nor are there any hotel room or travel restrictions in order for you to gain these benefits.
You can have your credit card replaced in as little as 24 hours if it is either lost or stolen. You should report it immediately if your card is missing or stolen.
Worldwide hotline support is provided so that if you travel more than 100 miles away from home, American Express will provide you with emergency help, 24/7 – including medical help, legal aid, visa and passport assistance, easy cash access etc.
Security against fraudulent and unauthorized charges
Satisfaction guaranteed on designated items within 90 days of purchase
Round the clock online access to your account. You can pay your bills online etc.
Online account summary. Easy account reconciliation.
For people who want to amass miles to be used on only one airline, an American Express Delta Reserve airmiles credit card earns miles exchangeable through the Delta SkyMiles program. Unlike the majority of American Express cards, a balance can be carried from month to month. This product is designed for consumers with good to excellent credit.
The card’s annual fee is $450, but is lowered to $395 for those who have another qualifying American Express credit card product. The first purchase earns 10,000 Medallion Qualification Miles. There are also possible annual bonus air miles of 30,000 MQMs and 30,000 further miles. An American Express Delta Reserve card holder can also use their miles to secure Delta tickets for friends, family, and business associates. An extra benefit is Crown Club Access in Delta terminals for the customer and up to two guests. In addition, personal assistance for airmiles credit card customers includes availability of concierge consultants, who can help make dinner and other reservations as needed.
Find important knowledge about managed forex trading – please make sure to read this web page. The times have come when proper info is truly within one click, use this chance.
Today, we’ll be taking a look at some essential and interesting links and articles from around the web on the topic of credit cards. With the economy in a rut and new credit card and banking legislation on the horizon, now is an especially important time to be aware of all the news and views buzzing about. Here at MYC, we read a lot of material, but only a fraction of it gets incorporated into our daily writeups. This link round up is meant to give our readers browse the bigger picture:
Wall Street Journal has a nice article on services providing more condensed versions and “free credit scores,” though they may not be the ones you will get from Experian or FICO…
There is variation among credit scores, depending on which scoring model is being used and which credit bureau the data are pulled from. Lenders can choose from FICO, the VantageScore—a score developed by the three credit bureaus—or from any one of the credit bureaus’ own scores. Adding to the confusion, lenders can choose from multiple versions of the same scoring model. FICO, for example, recently rolled out its latest version, FICO 08.
Washington Post has an article on credit being replaced by debit cards. Excerpt:
Nine months ago, Alyson Chadwick, a public relations representative for a nonprofit organization on Capitol Hill, got a debit card with a MasterCard logo so she could use it anywhere for purchases. Carrying cash was unsafe, she thought, and a debit card would help her manage her spending better.
“I use my credit cards hardly at all,” she said. “I don’t even carry them with me.”
Trish Preston, head of U.S. debit for MasterCard, said the changing fortunes of debit and credit tell the story of how the recession has transformed consumer spending.
“Think about what’s happening in the economy,” she said. “Appliances, furniture, jewelry: Those are very sensitive to the economy, and those have generally been credit spending categories.”
Debit cards, meanwhile, tend to be used for routine necessities such as groceries and gasoline. “Those kinds of expenditures are happening,” she said.
New York Times has an interesting video explaining overdrafts as part of its ongoing (and excellent) The Card Game series.
Local Oklahoma news station KFOR has this warning about drug traffickers using gift cards to steal credit card information.
Even though you still have your actual credit card, people steal your card info and use it to open a new account in their name. And even when it’s canceled, they still have buying power through gift cards. Thieves are cloning credit cards and spending to the limit and buying gift cards before the victims can catch them.
Detective Scott Stephens said, “By the time you find out your account has been compromised, they’ve already bought these gift cards, flat screen TVs or whatever.”
Then the credit card holder is out of luck and sometimes thousands of dollars.
Readers speak out on frustrations over international credit card use over at the NYTimes blog:
Amar, from Lansdale, Pa., wrote about trying to call India from a payphone in Paris’ Charles de Gaulle airport. But his card was rejected, so he had to make an operator-assisted call. “The 2-min call cost,” he said, “$37.”
Mcooper from Canada had to wait 45 minutes at a toll booth in France because an attendant had to manually swipe the card. “The chip and pin card holders zipped through the automated kiosks,” mcooper wrote. “In restaurants, the younger servers did not know how to swipe our card. It was new to them.”
Jeremy Simon at CreditCards.com predicts that holiday sales will be off this year thanks to less credit card clout in consumer wallets:
Holiday sales will be down 1 percent this year, according to the leading retail trade association, with lackluster spending by consumers unlikely to get a boost from Christmas presents put on credit cards.
According to the National Retail Federation, frugal-minded consumers are likely to shift away from credit cards and instead put holiday buys on debit cards and cash.
“Many consumers don’t like to rely on credit cards,” says National Retail Federation spokeswoman Ellen Davis, in a conference call accompanying the release of its holiday sales forecast. Davis blamed consumers’ reluctance to use plastic on the ongoing credit crunch and the fact that consumers don’t appreciate being surprised by card statements received in December and January.
The Seeking Alpha blog summarizes Jim Cramer of Mad Money who says that Visa has “great earnings visibility” in spite of the recent turmoil. Why? Because they’ve got a big chunk of the debit card market:
More cash-conscious consumers are using debit cards because they fear relying on credit, and Visa has double the market share of Mastercard in the debit card space. It’s strong credit card business is also a good way to trade an economic recovery.
According to The Frederick News, MasterCard has drafted a response to 7-Eleven’s petition regarding their grievances over swipe fees for merchants. MasterCard’s view: 7-Eleven was deceptive in appealing to consumers and should suck it up and pay the fee as part of the cost of doing business. Take it with a grain of salt:
“It’s undeniable that electronic payments drive value for all merchants,” McWilton said. “It’s surprising that 7-Eleven, a company that prides itself on convenience, would mount such an aggressive campaign against the most convenient form of payment.”
Caufman said credit card use far outweighs cash transactions at her store.
MasterCard Worldwide said lowering or eliminating such merchant transaction fees could result in higher charges to use the cards and less benefits.
“In my view 7-Eleven’s campaign was willfully deceptive,” said Eric Grover, a principal at Intrepid Ventures, a leading payments industry consultancy, in a prepared statement. “It invited unsuspecting consumers to petition for government regulation that will cause higher card fees and a reduction of the benefits they take for granted.”
Wondering what to do with all those credit cards you paid off and canceled after the rates got jacked? Make your old credit card into an iPhone stand with these instructions from instructables.com:
I travel quite a bit and have always been searching for stands for whatever PMP (personal media player) / iPod / PSP / iPhone or whatever gadget I’m currently using to watch movies while flying. the catch is the stands have to be small and easy to transport and still work well.I tried the business card one, some origami ones and some other mediums (I had cut one from plastic) but they all were either too involved to recreate midair or not sturdy enough to hold the thing at the right angle.I happened to have a hotel room key in my shirt pocket and mangled it into something that I now find myself dependent upon for my iphone holding needs. I like the fact that I can reuse something for another purpose and hey, they’re free! It works well in coach as well as first class and haven’t hit any turbulence rough enough to unsettle it.
Key to Eden points to this eye-opening chart from Mint.com that breaks down the costs of rewards programs:
Ever wonder how much you’re really getting back from credit card and retail reward programs? Personal finance site Mint.com breaks down the fees, catches, and mentality behind some major retailers’ cards and shopper programs in a big ol’ chart.
Mint and WallStats.com do a pretty great job of making their chart flow sensibly and read well, taking you through what major credit card issuers, grocery chains, and big box stores want you to think when signing up for a reward/points program, then breaking down each program on a cents-back-per-dollar basis. There’s also a guide to being a “Reward Points Ninja,” and the read through the whole thing should make you reconsider whether retail allegiance is really worth the hassle.
NY Times blog has a piece from Steven M. Davidoff discussing the “Inevitability of Finance.” Good food for thought about a world that relies on credit:
Remember when you (or your mother) raced to the bank to cash a check before it closed at 3 p.m.? Remember a world without credit cards and cash machines?
Finance and technology have pushed us beyond those days. This is now a world of structured products, where the income stream from toll roads can be securitized and the proceeds used to build more transport; private equity can act to discipline companies and help them operate more efficiently; the securitization process can permit widespread mortgage financing; and venture capital can fund the companies of tomorrow.
This is a world that Main Street does not see, but is the core of today’s finance. For example, according to the International Swaps and Derivatives Association, currency swaps, which allow companies to hedge currency risk when trading abroad, recently had a notional value of $414 trillion.
How about you, readers? See anything good around the web? Are you still angry about overdrafts? Do you think Bank of America are sleezeballs? Are you using debit more than credit? Sound off in the comments.
Photo by WoodleyWonderWorks
Related posts:
- Carnival Love and Link Roundup!
- Top 6 Ways To Get Gift Cards For Less
- PF Bloggers Link round-up: Check it out!
Today, we’ll be taking a look at some essential and interesting links and articles from around the web on the topic of credit cards. With the economy in a rut and new credit card and banking legislation on the horizon, now is an especially important time to be aware of all the news and views buzzing about. Here at MYC, we read a lot of material, but only a fraction of it gets incorporated into our daily writeups. This link round up is meant to give our readers browse the bigger picture:
Wall Street Journal has a nice article on services providing more condensed versions and “free credit scores,” though they may not be the ones you will get from Experian or FICO…
There is variation among credit scores, depending on which scoring model is being used and which credit bureau the data are pulled from. Lenders can choose from FICO, the VantageScore—a score developed by the three credit bureaus—or from any one of the credit bureaus’ own scores. Adding to the confusion, lenders can choose from multiple versions of the same scoring model. FICO, for example, recently rolled out its latest version, FICO 08.
Washington Post has an article on credit being replaced by debit cards. Excerpt:
Nine months ago, Alyson Chadwick, a public relations representative for a nonprofit organization on Capitol Hill, got a debit card with a MasterCard logo so she could use it anywhere for purchases. Carrying cash was unsafe, she thought, and a debit card would help her manage her spending better.
“I use my credit cards hardly at all,” she said. “I don’t even carry them with me.”
Trish Preston, head of U.S. debit for MasterCard, said the changing fortunes of debit and credit tell the story of how the recession has transformed consumer spending.
“Think about what’s happening in the economy,” she said. “Appliances, furniture, jewelry: Those are very sensitive to the economy, and those have generally been credit spending categories.”
Debit cards, meanwhile, tend to be used for routine necessities such as groceries and gasoline. “Those kinds of expenditures are happening,” she said.
New York Times has an interesting video explaining overdrafts as part of its ongoing (and excellent) The Card Game series.
Local Oklahoma news station KFOR has this warning about drug traffickers using gift cards to steal credit card information.
Even though you still have your actual credit card, people steal your card info and use it to open a new account in their name. And even when it’s canceled, they still have buying power through gift cards. Thieves are cloning credit cards and spending to the limit and buying gift cards before the victims can catch them.
Detective Scott Stephens said, “By the time you find out your account has been compromised, they’ve already bought these gift cards, flat screen TVs or whatever.”
Then the credit card holder is out of luck and sometimes thousands of dollars.
Readers speak out on frustrations over international credit card use over at the NYTimes blog:
Amar, from Lansdale, Pa., wrote about trying to call India from a payphone in Paris’ Charles de Gaulle airport. But his card was rejected, so he had to make an operator-assisted call. “The 2-min call cost,” he said, “$37.”
Mcooper from Canada had to wait 45 minutes at a toll booth in France because an attendant had to manually swipe the card. “The chip and pin card holders zipped through the automated kiosks,” mcooper wrote. “In restaurants, the younger servers did not know how to swipe our card. It was new to them.”
Jeremy Simon at CreditCards.com predicts that holiday sales will be off this year thanks to less credit card clout in consumer wallets:
Holiday sales will be down 1 percent this year, according to the leading retail trade association, with lackluster spending by consumers unlikely to get a boost from Christmas presents put on credit cards.
According to the National Retail Federation, frugal-minded consumers are likely to shift away from credit cards and instead put holiday buys on debit cards and cash.
“Many consumers don’t like to rely on credit cards,” says National Retail Federation spokeswoman Ellen Davis, in a conference call accompanying the release of its holiday sales forecast. Davis blamed consumers’ reluctance to use plastic on the ongoing credit crunch and the fact that consumers don’t appreciate being surprised by card statements received in December and January.
The Seeking Alpha blog summarizes Jim Cramer of Mad Money who says that Visa has “great earnings visibility” in spite of the recent turmoil. Why? Because they’ve got a big chunk of the debit card market:
More cash-conscious consumers are using debit cards because they fear relying on credit, and Visa has double the market share of Mastercard in the debit card space. It’s strong credit card business is also a good way to trade an economic recovery.
According to The Frederick News, MasterCard has drafted a response to 7-Eleven’s petition regarding their grievances over swipe fees for merchants. MasterCard’s view: 7-Eleven was deceptive in appealing to consumers and should suck it up and pay the fee as part of the cost of doing business. Take it with a grain of salt:
“It’s undeniable that electronic payments drive value for all merchants,” McWilton said. “It’s surprising that 7-Eleven, a company that prides itself on convenience, would mount such an aggressive campaign against the most convenient form of payment.”
Caufman said credit card use far outweighs cash transactions at her store.
MasterCard Worldwide said lowering or eliminating such merchant transaction fees could result in higher charges to use the cards and less benefits.
“In my view 7-Eleven’s campaign was willfully deceptive,” said Eric Grover, a principal at Intrepid Ventures, a leading payments industry consultancy, in a prepared statement. “It invited unsuspecting consumers to petition for government regulation that will cause higher card fees and a reduction of the benefits they take for granted.”
Wondering what to do with all those credit cards you paid off and canceled after the rates got jacked? Make your old credit card into an iPhone stand with these instructions from instructables.com:
I travel quite a bit and have always been searching for stands for whatever PMP (personal media player) / iPod / PSP / iPhone or whatever gadget I’m currently using to watch movies while flying. the catch is the stands have to be small and easy to transport and still work well.I tried the business card one, some origami ones and some other mediums (I had cut one from plastic) but they all were either too involved to recreate midair or not sturdy enough to hold the thing at the right angle.I happened to have a hotel room key in my shirt pocket and mangled it into something that I now find myself dependent upon for my iphone holding needs. I like the fact that I can reuse something for another purpose and hey, they’re free! It works well in coach as well as first class and haven’t hit any turbulence rough enough to unsettle it.
Key to Eden points to this eye-opening chart from Mint.com that breaks down the costs of rewards programs:
Ever wonder how much you’re really getting back from credit card and retail reward programs? Personal finance site Mint.com breaks down the fees, catches, and mentality behind some major retailers’ cards and shopper programs in a big ol’ chart.
Mint and WallStats.com do a pretty great job of making their chart flow sensibly and read well, taking you through what major credit card issuers, grocery chains, and big box stores want you to think when signing up for a reward/points program, then breaking down each program on a cents-back-per-dollar basis. There’s also a guide to being a “Reward Points Ninja,” and the read through the whole thing should make you reconsider whether retail allegiance is really worth the hassle.
NY Times blog has a piece from Steven M. Davidoff discussing the “Inevitability of Finance.” Good food for thought about a world that relies on credit:
Remember when you (or your mother) raced to the bank to cash a check before it closed at 3 p.m.? Remember a world without credit cards and cash machines?
Finance and technology have pushed us beyond those days. This is now a world of structured products, where the income stream from toll roads can be securitized and the proceeds used to build more transport; private equity can act to discipline companies and help them operate more efficiently; the securitization process can permit widespread mortgage financing; and venture capital can fund the companies of tomorrow.
This is a world that Main Street does not see, but is the core of today’s finance. For example, according to the International Swaps and Derivatives Association, currency swaps, which allow companies to hedge currency risk when trading abroad, recently had a notional value of $414 trillion.
How about you, readers? See anything good around the web? Are you still angry about overdrafts? Do you think Bank of America are sleezeballs? Are you using debit more than credit? Sound off in the comments.
Photo by WoodleyWonderWorks
Related posts:
- Carnival Love and Link Roundup!
- Top 6 Ways To Get Gift Cards For Less
- PF Bloggers Link round-up: Check it out!
The results are in, and according to numerous studies, we’re pissed about our credit cards. We’ve had our credit limits slashed, our rewards cut back, our interest rates hiked and our coffers raided by fees, fees and more fees. Some vindication came in the form of the Credit CARD Act, but for the most part, we’ve just seen old dogs learning new tricks and still making a buck off consumers. And we’ve all been plenty vocal about our disgruntlement. According to a recent Consumer Reports poll:
- 21% of cardholders claim they were treated unfairly by lenders
- 45% reported that they were using their credit cards less
- 33% of those polled have closed an account since January 2008
In addition, 54% of customers reported that they now pay their balances off in full, likely to avoid being charged ever increasing fees. So, what’s the result of all this ire? Surprisingly, and perhaps smartly, Bank of America has been equally as forthcoming about the issues surrounding customer satisfaction. In fact, on Monday, Bank of America wrote a letter to Barney Frank, chairman of the U.S. House Financial Services, promising that they’ll play fair with customers in the years to come. Here’s what the letter says:
In light of the concerns expressed to us by our customers, Bank of America will not implement any change in terms (risk or economic based) re-pricing of consumer credit card accounts between now and the effective date of the CARD Act. We believe that this is the responsive to the concerns we have heard and is consistent with other consumer oriented policy changes we have made recently, like giving customers much more control over the risk of incurring overdraft fees and substantially limiting the application of those fees.
Those “changes in terms” and “re-pricing of consumer credit accounts” that Bank of America claims they won’t be partaking in refer to the backlash from the first wave of CARD Act. To compensate for the upcoming restrictions, many card companies began switching cardholders to variable rates, adding new fees (foreign transaction fees, inactivity fees, etc.) and otherwise altering credit card terms. We also saw debit cards step up their game by ruthlessly levying overdraft fees and allegedly rearranging transactions so consumers would incur more penalties. All of this put a sheen of mistrust on relations between consumers and their banks.
Give it to Me Straight
In addition to the letter of good faith sent to U.S. lawmakers, Bank of America also earlier made an effort to show their dedication towards transparency. This October, Bank of America plans to roll out the Basic Visa, a card that is marketed as a no-nonsense, straightforward card with no tricks or traps. Again citing the will of the people, Bank of America said this in their press release:
In response to consumer demand for a card that offers the convenience of credit with simplified rates and terms, Bank of America is introducing the BankAmericard® Basic™ Visa® card. The new card features one basic rate for all types of transactions, including balance transfers and cash advances. That rate, which is tied to the U.S. Prime Rate, will not change over the life of the account.
Of course, a variable rate tied to the prime rate will actually end up being mighty lofty when (or if) the economy gets back on its feet. But at least they are being up front about how your interest rate gets figured.
The odd thing, though, is that the Fairness in Lending Act already requires credit card companies to disclose interest rates, though this is also done in asterisk form, in tiny print a page and a half below the prominently displayed introductory rate.
Overdraft Overhaul
As mentioned in the more recent letter, BofA also took measures to redress its overdraft policies, again, citing the bad PR that all banks have gotten lately. Starting October 19, Bank of America:
- Will not charge for overdrafts less than $10 per day (as opposed to charging for overdrafts above $5)
- Will not charge more than 4 overdrafts per day (formerly 10)
- Will allow customers to opt out of overdraft protection
All of these measures are very nice of Bank of America. But it seems a bit dubious to remove a dastardly practice and spin it as a brand new benefit for customers (”Blankets – now without small pox!”). It almost feels like too little too late.
What do you think? Does Bank of America deserve to be seen as the good guys who have changed their ways? Or is this all just a bunch of PR and baloney?
Photo by Joe Nangle
Related posts:
- Trick or Treat?: Bank of America Rolls out Basic Visa Just in Time for Halloween
- Bank of America Review
- Survey Says: Amex is Great – but the Other Guys Ain’t What They Used to Be
The results are in, and according to numerous studies, we’re pissed about our credit cards. We’ve had our credit limits slashed, our rewards cut back, our interest rates hiked and our coffers raided by fees, fees and more fees. Some vindication came in the form of the Credit CARD Act, but for the most part, we’ve just seen old dogs learning new tricks and still making a buck off consumers. And we’ve all been plenty vocal about our disgruntlement. According to a recent Consumer Reports poll:
- 21% of cardholders claim they were treated unfairly by lenders
- 45% reported that they were using their credit cards less
- 33% of those polled have closed an account since January 2008
In addition, 54% of customers reported that they now pay their balances off in full, likely to avoid being charged ever increasing fees. So, what’s the result of all this ire? Surprisingly, and perhaps smartly, Bank of America has been equally as forthcoming about the issues surrounding customer satisfaction. In fact, on Monday, Bank of America wrote a letter to Barney Frank, chairman of the U.S. House Financial Services, promising that they’ll play fair with customers in the years to come. Here’s what the letter says:
In light of the concerns expressed to us by our customers, Bank of America will not implement any change in terms (risk or economic based) re-pricing of consumer credit card accounts between now and the effective date of the CARD Act. We believe that this is the responsive to the concerns we have heard and is consistent with other consumer oriented policy changes we have made recently, like giving customers much more control over the risk of incurring overdraft fees and substantially limiting the application of those fees.
Those “changes in terms” and “re-pricing of consumer credit accounts” that Bank of America claims they won’t be partaking in refer to the backlash from the first wave of CARD Act. To compensate for the upcoming restrictions, many card companies began switching cardholders to variable rates, adding new fees (foreign transaction fees, inactivity fees, etc.) and otherwise altering credit card terms. We also saw debit cards step up their game by ruthlessly levying overdraft fees and allegedly rearranging transactions so consumers would incur more penalties. All of this put a sheen of mistrust on relations between consumers and their banks.
Give it to Me Straight
In addition to the letter of good faith sent to U.S. lawmakers, Bank of America also earlier made an effort to show their dedication towards transparency. This October, Bank of America plans to roll out the Basic Visa, a card that is marketed as a no-nonsense, straightforward card with no tricks or traps. Again citing the will of the people, Bank of America said this in their press release:
In response to consumer demand for a card that offers the convenience of credit with simplified rates and terms, Bank of America is introducing the BankAmericard® Basic™ Visa® card. The new card features one basic rate for all types of transactions, including balance transfers and cash advances. That rate, which is tied to the U.S. Prime Rate, will not change over the life of the account.
Of course, a variable rate tied to the prime rate will actually end up being mighty lofty when (or if) the economy gets back on its feet. But at least they are being up front about how your interest rate gets figured.
The odd thing, though, is that the Fairness in Lending Act already requires credit card companies to disclose interest rates, though this is also done in asterisk form, in tiny print a page and a half below the prominently displayed introductory rate.
Overdraft Overhaul
As mentioned in the more recent letter, BofA also took measures to redress its overdraft policies, again, citing the bad PR that all banks have gotten lately. Starting October 19, Bank of America:
- Will not charge for overdrafts less than $10 per day (as opposed to charging for overdrafts above $5)
- Will not charge more than 4 overdrafts per day (formerly 10)
- Will allow customers to opt out of overdraft protection
All of these measures are very nice of Bank of America. But it seems a bit dubious to remove a dastardly practice and spin it as a brand new benefit for customers (”Blankets – now without small pox!”). It almost feels like too little too late.
What do you think? Does Bank of America deserve to be seen as the good guys who have changed their ways? Or is this all just a bunch of PR and baloney?
Photo by Joe Nangle
Related posts:
- Trick or Treat?: Bank of America Rolls out Basic Visa Just in Time for Halloween
- Bank of America Review
- Survey Says: Amex is Great – but the Other Guys Ain’t What They Used to Be
