Credit Cards

RFID and Smart Credit Cards: Making It Easy for Electronic Pickpockets

noreply@blogger.com (Steve Brown) — Sun, 17 Jul 2011 19:50:00 +0000

I have a love/hate relationship with RFID technology.

Every time I ease through the E-ZPass lane at a toll both, and slip passed non-E-ZPass users who have to wait in line to pay their toll in cash, I'm thankful.

Love E-ZPass. But I'm not a fan of RFID chips in my credit cards.

Smart credit cards use RFID technology. They allow cardholders to checkout faster than ever, with a simple wave of the card in front of a card reader. My main debit card offers super-fast "Blink" checkout, but I never use it (at least, I don't think I have!) When I checkout at e.g. Wal-Mart, I'm perfectly happy to swipe my card then sign the electronic signature pad. It's fast enough for me, and keeps me from worry too much about becoming a target of an electronic pickpocket.

How easy for it for someone to read the payment cards in your wallet? Much easier than you probably realize. Check out these YouTube clips:

Read the comments section of the above YouTube clip and you'll find criminals brazenly posting offers to sell -- and posting requests for -- card readers and all kind of hacking equipment. Shameless and disgusting.

Here's another clip from the Wall Street Journal:

So, what to do?

One solution: call your credit-card bank and ask them to replace any smart cards they've issued you with good, old fashioned dumb cards (sans RFID chips.) Unfortunately, many credit-card banks are so committed to smart cards that your request for a de-evolved card will probably be met with resistance.

In my opinion, it's worth it to try. My thesis: If enough people make the request, banks will get the message and will probably move to improve current smart card technologies, sooner rather than later.

I could use a metal wallet, but I don't like the idea of using something that bulky. I guess I could buy a bunch of thin, protective sleeves for each card, but I'm not ready to do that yet.

Maybe I should be.

Back in 2008, my debit card info was stolen and used (or sold) by a waitress at a popular seafood restaurant. She used one of those pager-sized card readers to swipe my card. I'm pretty sure she sold the info, because the fraudulent charge was for $150-worth of flowers from a retailer in Eastern Europe. Hard to prevent this type of theft, because restaurant staff always take your card away from you and out of sight when you pay. Needless to say, I've been using cash to pay for meals more often than I used to.

And because credit card info is being stolen from websites more often these days, I've gotten into the habit of using PayPal to pay for goods online. Another decent alternative is to use Google Checkout.

The Future for Credit-Card Rates and Fees

noreply@blogger.com (Steve Brown) — Thu, 03 Mar 2011 20:43:00 +0000

BankRate's Greg McBride commented on credit-card and other interest rates in the following WSJ video clip:

I agree with Mr. McBride. For those with excellent credit, credit-card offers have been improving and will very likely continue to get better as 2011 progresses. Zero percent intro APR credit cards -- our favorite type of credit-card offer -- Keep getting more and more generous.

It's a shame that Discover's No Balance Transfer Fee 0% card is no longer with us. It was a special offer which expired at the end of February. Which bank will offer the next great 0% card? Bank of America? American Express? No one can know for sure, but I think it's a safe bet that the American consumer will be able to apply for at least one juicy, new, no balance transfer fee 0% card before the end of the year.

NB: Discover decided to keep their 24 Month Balance Transfer card alive (0% intro APR on transferred balances for a full 2 years!), so anyone can apply for it right now. This card is easily the best 0% credit card in the American market.

And what about the future for credit-card fees? Here's a clip from a great WSJ article titled "Surprise: Banks Ease Card Fees":

"...Some analysts, however, say lenders also are calculating that bad publicity from imposing fees is itself a threat to revenues. Amid persistent unemployment and a still-sluggish economy, credit-card companies want to tamp down on controversy.

'The motivation behind [easing credit-card fees] is to improve the persistent perception that card issuers are simply price-gouging,' says Sanjay Sakhrani, an analyst at Keefe, Bruyette & Woods.

That is especially important now, as the new Bureau of Consumer Financial Protection sets its enforcement priorities, say banking industry analysts. 'Banks would like to keep a low profile right now,' says Dennis Moroney, research director at advisory firm Tower Group..."

I'm totally on board with the reasoning and analysis in the above article. The folks at the nascent Consumer Financial Protection Bureau (CFPB) are very busy setting up shop, and setting up policies that are likely to influence how much profit banks can make from credit cards. So, right now, banks are highly motivated to play nice.

Here are some clips from the CFPB site:

Credit Card Rakings for January 2011

noreply@blogger.com (Steve Brown) — Wed, 02 Feb 2011 21:37:00 +0000

Here are the credit card rankings for January 2011. These rankings are based on the cards we recommend here on www.BalanceTransfer.cc. As always, these rank are based on both the volume of applications, and approvals. Here's the list:

The Discover® More No Balance Transfer Fee Card (click here)
Discover More Card - 24 Month Promotional Balance Transfer Card (click here)
The Classic Discover More Card (click here)
Slate from Chase (click here)
The Chase Freedom® MasterCard® with $100 Bonus Cash Back (click here)
The Chase Freedom® Visa® with $100 Bonus Cash Back (click here)

Not surprisingly, Discover's No Balance Transfer Fee card, and its 24 Month Promotional Balance Transfer card, were extremely popular last month, as these two cards are easily the best 0% credit cards in the United States right now. Here what these two cards are currently offering:

Discover® More No Balance Transfer Fee Card

0% Intro APR on transferred balances for 12 months.
0% Intro APR on new purchases for 12 months.
No balance transfer fee
No Annual Fee

Discover More Card - 24 Month Promotional Balance Transfer Card

0% Intro APR on transferred balances for 24 months.
0% Intro APR on new purchases for 6 months.
Balance transfer fee: 5% of each transfer made, with a minimum transfer fee of $10.
No Annual Fee

Moreover, both of the above cards come with Discover's industry leading cashback rewards program.

If you want to take advantage of the best 0% credit cards in the market right now, you have until the end of February to do so. Discover plans to shelve both cards on February 28, 2011.

The Classic Discover More card is still popular, because it's still offering a lot of value:

Classic Discover More Card

0% Intro APR on transferred balances for 12 months.
0% Intro APR on new purchases for 18 months.
Balance transfer fee: 4% of each transfer made.
No Annual Fee

And, of course, excellent cashback rewards.

The Blue from American Express® and Blue Cash® from American Express cards both generated a lot of interest from visitors to this site in January. Unfortunately, however, Amex approved a small fraction of the applications generated here at www.BalanceTransfer.cc. We're hoping Amex approvals improve over time, and they should as the economy continues to heal and the jobs picture gets better. But, for now, it's best to try one of the 3 top Discover cards from our January rankings above. Though American Express offers the best customer service around, Discover's customer service record is also very good. Bottom line: If you're attracted to the Blue from American Express or Blue Cash from American Express cards because they offer 0% intro APR on purchases for 12 months, you'd probably be better off going with one of the Discover cards discussed above, because your application has a better chance of getting that stamp of approval.

As always, your comments are very welcome.

Discover Receives Prestigious Award for Customer Satisfaction

noreply@blogger.com (Steve Brown) — Fri, 19 Nov 2010 02:47:00 +0000

If you have a Discover credit card, then perhaps today's news really isn't news to you. For those of you thinking about signing up for a Discover credit card, and you really like the idea of a credit-card bank providing first-class customer service, then read on.

Discover just got top honors from the Service Quality Measurement Group (SQM) for providing the best call-center customer service in the credit-card industry. This is no easy feat, as American Express is very well known for their excellent customer service. I guess Discover just stepped up to the plate, and belted out a grand-slam home run.

Another interesting note: with so many American companies outsourcing their call-center business to Asia, it's refreshing that most of Discover's call centers are based right here in the US of A. Kudos! This is significant, considering that the unemployment rate is the US is still painfully close to 10% (the October 2010 figure was 9.6%), and probably won't ease in the near term.

Here's a clip from today's press release:

"...Discover finished with top honors in the first targeted customer service evaluation of credit card industry call centers by Service Quality Measurement Group (SQM), the leading benchmarking firm for more than 450 leading North American call centers.

Discover received SQM's award for Highest Customer Satisfaction for the Credit Card Industry, which was based on 400 random telephone surveys of Discover cardmembers within two business days of their calls to the company. SQM measured whether the call was resolved, the customer's overall satisfaction with the service representative and their overall experience.

'Our commitment to the finest customer service available is a fundamental reason we have the most loyal cardmembers in our industry,' said Carlos Minetti, president of consumer banking and operations for Discover. 'We're honored by SQM's recognition and remain committed to making the necessary investments to maintain our leadership position in customer service.'

Discover employs more than 10,500 people, with the majority based in its call centers in Arizona, Delaware, Ohio and Utah. An industry leader in customer service, Discover won the 'Best Performance Leveraging Customer Service Feedback' category in the 2010 Call Center Excellence Awards from the International Quality & Productivity Center, finished first in the 2010 Brand Keys Customer Loyalty Engagement Index® for the past 13 years and was recently honored by InformationWeek magazine for creating technology that assists customer service representations during cardmember calls..."

It comes as no surprise to us that Discover has such loyal customers. The feedback we receive from Discover cardholders is invariably very positive. Discover cards offer a lot more value (great cashback rewards, long interest-free periods, etc.) than comparable credit cards offered by other reputable credit-card banks in the American market. That's why we've been recommending them for years. We're quite confident that Discover will continue to provide the kind of customer service that credit consumers want and deserve.

To review a list of the Discover cards we recommend here at www.BalanceTransfer.cc, visit this link.

Credit Card Rakings for August

noreply@blogger.com (Steve Brown) — Thu, 16 Sep 2010 21:16:00 +0000

Here are the August credit card rankings for the cards we recommend here on www.BalanceTransfer.cc. As always, these rank are based on both the volume of applications, and approvals. This list is important because it gives credit consumers a good read on which banks are approving applications, and which banks are offering the most attractive credit card offers. Bottom line: no one wants to signup for an unpopular credit card deal, and no one likes it when a credit application is denied. Popular cards are popular for a reason, as smart card shoppers always go for the best possible deal. Here's the list:

The Discover® More Black Card (click here)
Discover More Card with $75 CashBack Bonus (click here)
The Discover More Card (click here)
The Discover More Biodegradable Card (click here)
The Chase Freedom® Visa with $100 Bonus Cash Back (click here)
Blue from American Express® (click here)
Chase Freedom Credit Card (click here)
Blue Cash® from American Express (click here)
Chase Sapphire® Card (click here)
Chase Freedom Visa with $50 Bonus Cash Back (click here)

It's no surprise that the Discover More Black Card is still #1. It offers the best 0% intro APR deal (12 months), as well 0% intro APR on new purchases for 9 months. And, as always, Discover offers the most generous cashback bonus of all the cards we recommend.

We really like American Express cards, as the customer service is truly excellent and the terms are invariably consumer-friendly. However, Amex has been quite stingy with approving applications lately, and that's why only 2 Amex cards made our list this month.

The Chase Freedom® Visa with $100 Bonus Cash Back Card has been climbing the list, as savvy card shoppers have been keen to take advantage of the bonus cash.

Thanks much for stopping by and reading. Stay tuned for next month's list.

Will 0% No Balance Transfer Fee Credit Cards Return?

noreply@blogger.com (Steve Brown) — Wed, 15 Sep 2010 21:14:00 +0000

As you might have already guessed, American banks are not jumping for joy about the new the Credit Card Accountability Responsibility and Disclosure Act of 2009, also known as the Credit Card Act. The new law, together with new rules imposed on banks by the Federal Reserve in August of 2010, place limits on fees and other charges and, in general, make having a credit card in your wallet a much better financial arrangement for you.

If you think that banks have responded to the new credit card rules by coming up with creative ways to generate revenue, then you're right on the money.

For example, banks are no longer permitted to charge inactivity fees. However, some banks have figured out a clever way around this rule: charge an annual fee that's waived if the cardholder spends a certain amount on his or her card each year.

So what about 0% credit cards that don't charge a balance transfer fee? These offers were extremely popular during the pre-financial-meltdown credit boom, but they disappeared as the shockwaves from the 2008 banking crisis rippled through the American economy. "No fee balance transfer" cards still exist, but current offers from reputable banks don't feature the added benefit of a zero percent introductory annual percentage rate (APR) on transferred balances.

When will zero percent intro APR no fee balance transfer cards return to the American market? Nobody can say for sure, but it's a pretty safe bet that they will return eventually. Banks need time to figure out how to make credit cards as profitable as possible without breaking any of the new credit card rules. That might take many months, or even years. Moreover, don't expect these specific offers to return until the American economy is expanding at a decent pace, and sustainably.

Credit cards are still extremely useful financial tools that offer great benefits like purchase protection and cashback rewards. What's true now has always been true about credit cards: pay attention to the terms and conditions before signing on the dotted line, and do your best to avoid finance charges. Competition in the credit card market is still very healthy, so if you don't like the deal your current bank is offering, you can always pass and signup for a card elsewhere.

Discounts for Using Cash

noreply@blogger.com (Steve Brown) — Mon, 23 Aug 2010 13:28:00 +0000

The Wall Street Journal's Brett Arends recently produced a great article titled "The Death of The Rewards Card."

As you probably already know, when you use a credit card to pay for a purchase, a small cut goes to the bank that issued your card. An even smaller cut goes to the "middle-man" bank, the bank that handles the processing. Invariably, these fees are paid by the retailer. When dealing with volume, these small fees add up fast. In fact, many retailers complain that these fees are so burdensome that they can't afford to hire new workers, and help this limping economy get back to prosperity.

With credit card banks like American Express and Discover, the processing is not handled by another party (no middle-man.) This doesn't mean that transactions handled by these banks are cheaper for the merchant. In fact, if you ask a merchant if the fees associated with accepting American Express are higher than those associated with accepting Visa or MasterCard, the merchant is likely to tell you: yes, they are. In my own real world experience, however, I found that accepting American Express cost me about the same. That's because my transaction volume was very low, and the middle-man bank I was using for Visa and MasterCard payments was charging me a hefty fee for keeping my merchant account active.

I canceled my merchant account 2 years ago. Got too expensive for my meager volume. I now use PayPal for credit card payments, as it's very convenient, and the fees are manageable.

OK, enough with the primer. Onto this article by Mr. Arends.

Legally, all types of merchants who accept credit cards, from gas station owners to web designers, have always had the freedom to offer a discount for paying with cash instead of a credit card, thus eliminating the fees associated with accepting credit cards.

Most merchants, however, were not in the habit of pursuing this money-saving option because the payment networks used "restrictions" to discourage the practice.

The Dodd–Frank Wall Street Reform and Consumer Protection Act(1), which is now law, eliminates those "restrictions" and gives retailers true freedom to offer discounts for using cash over a credit card.

Mr. Arends contends that this could spell the end for the rewards credit card. Mr. Arends predicts that consumers will eschew using a rewards card and take the discount for using cash instead. Bottom line: credit-card rewards are great, but cash is better. Mr. Arends' thesis statement goes something like this:

"...Plastic is so over. The new cash is, er, cash...."

I totally disagree.

My position:

Consumers like using cards. In my opinion, most people would not be comfortable carrying around wads of cash so as to enjoy discounts offered by retailers and other merchants. Using credit cards is much safer, and convenient. Would you be comfortable carrying $1,800 in cash when you go to buy that new flat-screen TV you've always wanted? I don't think so. I know I wouldn't. What if I was in NYC visiting family and fell asleep in a super crowded subway car (I used to doze off on the subway all the time when I lived there)? I might wake up and find that my cash has been "borrowed." On the other hand, if I accidentally dropped my credit card on a subway train, all I'd have to do is make a quick, toll-free call to my credit-card bank, and all would be fine.
Has Mr. Arends forgotten about purchase protection? How much protection do you get with cash? Zero. Recently, someone tried to cheat me by selling me a broken laptop LCD backlight inverter, which was supposed to be brand new. I tried to get the problem resolved but the retailer didn't answer his phone, and didn't respond to emails. Solution was easy: let my credit-card bank deal with it. Got my money back.

However, I do agree with the author's statement, that:

"...Credit cards are bad for your wealth..."

No doubt, this is true for anyone who carries even a small balance from month-to-month, and pays interest on it. But for those who know how to use credit wisely, credit cards are...well...cool.

60% APR On A Credit Card In Mexico

noreply@blogger.com (Steve Brown) — Sat, 07 Aug 2010 21:01:00 +0000

Lots of folks like to complain about how American credit-card banks make big profits by charging high interest, fees and penalties. It's true: before the new credit card rules became law this year, some banks were charging unreasonable fees and interest, mostly to those who have bad credit or no credit history.

But imagine if you lived in Mexico, where the typical APR on a credit card is 30%! Ouch!

And get this: Banco de Wal-Mart, which operates in Mexico (a.k.a WalMex), has a credit card that has an annual percentage rate of 60%. Let me spell that out in case you think it's a typo: sixty percent annual percentage rate.

That 9.99% APR credit card in your wallet isn't looking so bad now, is it?

For the full Marketplace story, click here.

New Credit Card Rules Going Into Effect On August 22, 2010

noreply@blogger.com (Steve Brown) — Wed, 16 Jun 2010 18:28:00 +0000

If you've ever paid a really high late-payment fee, or if you've ever felt like a sucker after reading the terms and conditions associated with a new credit card and realized you accepted an unreasonable fee schedule, then you'll like today's news. On August 22, 2010, the nation's top banking regulator -- the Federal Reserve -- is set to put into place new rules that limit certain credit card fees. For example, credit card banks will no longer be able to charge more than $25 as a late payment fee, while a penalty fee can no longer exceed $20.

Here's a clip from yesterday's Federal Reserve press release:

"... Prohibits credit card issuers from charging a penalty fee of more than $25 for paying late or otherwise violating the account's terms unless the consumer has engaged in repeated violations or the issuer can show that a higher fee represents a reasonable proportion of the costs it incurs as a result of violations.
Prohibits credit card issuers from charging penalty fees that exceed the dollar amount associated with the consumer's violation. For example, card issuers will no longer be permitted to charge a $39 fee when a consumer is late making a $20 minimum payment. Instead, the fee cannot exceed $20.
Bans "inactivity" fees, such as fees based on the consumer's failure to use the account to make new purchases.
Prevents issuers from charging multiple penalty fees based on a single late payment or other violation of the account terms.
Requires issuers that have increased rates since January 1, 2009 to evaluate whether the reasons for the increase have changed and, if appropriate, to reduce the rate.

The final rule represents the third stage of the Federal Reserve's implementation of the Credit Card Accountability Responsibility and Disclosure Act of 2009, which was enacted in May 2009. The provisions of the Act addressed in this rule will generally go into effect on August 22, 2010..."

For more, visit this Federal Reserve webpage.

Chase Sapphire: Living the Good Life (A Review)

noreply@blogger.com (Steve Brown) — Mon, 05 Apr 2010 03:13:00 +0000

It seems that many rewards cards today try to restrict the way you redeem your rewards, forcing you to choose between either cash back, merchandise, or miles. The Chase Sapphire card is strikingly different. Cardholders have the flexibility to redeem their rewards points on just about anything-hotel rooms, airfare, or simply cash back. Alluring sign-up incentives and decent card terms make the Chase Sapphire card a cut above the regular plastic.

Oscar Wilde once said, “I can resist everything except temptation,” and the Chase Sapphire card certainly is not lacking in that department. With 10,000 bonus points after your first purchase and no earnings cap or rewards expiration, the Sapphire makes it hard for even the most disciplined individual to say no. The Sapphire card boasts a low 12.24% APR on purchases and balance transfers, has no annual fee, and earning one point for every dollar spent gives you the ability to rack up points to choose a reward(s) that truly suits you.

The Ultimate Rewards program is one of the most generous rewards programs out there today. With no points expiration or black-out dates, if you can dream it, Chase will make it happen. Ever wanted to swim with dolphins? Treat that special someone to a VIP concert experience? How about a five-star dining experience to spoil your family? By using the Sapphire card, you can turn an ordinary day into an extraordinary one that won‘t soon be forgotten. Many of the events offered through Ultimate Rewards are exclusive to cardholders, making each excursion truly one-of-a-kind.

Racking up rewards points is as easy as swiping your card. Earning one point for every dollar is great, but when you shop within the Chase online mall portal that has over 300 merchants, you have the potential to earn up to ten points per dollar spent. You can even earn double points when you book your airline seats through the Travel Booking Tool. But worry not. If travel rewards aren’t quite your thing, you can redeem your points for gift cards to spend at your favorite stores. Rewards start at $25 for 2500 points. Or you can even choose to “pay yourself back” by using your points for a statement credit.

In addition to the Ultimate Rewards program, the Chase Sapphire card has all the attractive features people have come to expect from Chase. The features include Trip Cancellation and Travel Accident Insurance, Auto Rental Collision Damage Waiver, Zero Liability for fraudulent purchases, and a personal concierge. One of the best features included for wielding the Sapphire card is the ability to talk directly to a customer service person. By calling the number on the back of your card, you instantly are connected to a live person instead of “Pressing 3 to…” Chase also gives its cardholders extra peace of mind if their card is lost or stolen. They will expedite a replacement card to you and even arrange emergency cash for you until your new card arrives.

For those that like to keep a close eye on their finances, the Chase Sapphire also comes standard with Blueprint. By using Blueprint, you can decide how you’d like to pay down those larger purchases and watch your balance drop. Chase also sends you a year-end report, organized by purchase type. This easily helps you track your spending for the past year as well as making filing your tax return that much easier.

Unfortunately many of us will never have the opportunity to enjoy the luxuries this card has to offer; it is designed for those in the top 15% of household earnings. Even still, it is an excellent choice for those who do qualify, giving them the chance to make their every dream come true. As for the rest of us…well, we can still browse, right?

Treasury to Sell Citigroup Common Stock

noreply@blogger.com (Steve Brown) — Wed, 31 Mar 2010 03:35:00 +0000

Yesterday, the U.S. Treasury Department announced that it plans to sell all 7+ billion shares of Citigroup common stock during the rest of 2010. Here's a clip from the press release:

"...The U.S. Department of the Treasury today announced its intention to fully dispose of its approximately 7.7 billion shares of Citigroup, Inc. common stock over the course of 2010 subject to market conditions. Treasury received these shares of common stock pursuant to the June 2009 Exchange Agreement between Treasury and Citigroup, which provided for the exchange into common shares of the preferred stock that Treasury purchased in connection with Citigroup's participation in the Capital Purchase Program. Treasury has engaged Morgan Stanley as its capital markets advisor in connection with its Citigroup position.

Treasury intends to sell its Citigroup common shares into the market through various means in an orderly and measured fashion. Treasury intends to initiate its disposition of the common shares pursuant to a pre-arranged written trading plan. The manner, amount and timing of the sales under the plan is dependent upon a number of factors.

This disposition does not affect Treasury's holdings of Citigroup trust preferred securities or warrants for its common stock..."

This is certainly good news for the American taxpayer, as the government will reap a tidy profit as a result of its emergency investment in the bank.

Treasury is going take its sweet time selling these assets, so it'll be some time before we can know how Citi will fare without the government crutch.

Are we ready to start recommending Citi credit cards as a result of this news? Nah. Once the government has divested itself from Citigroup, we'll be engaging in at least another 12 months of watching before we make a decision on Citi cards.

For now, we are still very keen on the Discover More card, or any card issued by American Express.

A Clean Slate with Chase: Slate

noreply@blogger.com (Steve Brown) — Sun, 28 Mar 2010 00:12:00 +0000

Summary: The Chase Slate card is a no-frills card that, combined with Blueprint, can help users pay down their balances faster. With great introductory and balance transfer rates it is easy to go from large balances to no balance in the blink of an eye.

Life seems to have a way of creeping up on us when we least expect it. Unforeseen expenses pop up, emergencies happen, and sometimes the only way to pay for them is by credit card. But when you have the Chase Slate card at your side, you will be able to manage those unforeseen expenses with ease, helping to make your financial life a bit easier. Its simple, no fuss design makes it the perfect go-to card in case of emergency.

Chase has designed the Slate card for those with a good to excellent credit rating, and uses a tiered pricing structure to determine the applicant’s APR. The main factors in determining which tier the applicant falls under are their credit history and credit score. Chase currently has three pricing tiers; Elite, Premium, and Standard, and the APR’s for each tier are as follows: 13.24% variable for Elite; 17.24% variable for Premium, and 22.24% variable for Standard.

The Chase Slate card features a zero percent introductory rate for both purchases and balance transfers for twelve months for those that qualify for Elite or Premium pricing. Standard pricing cardholders will qualify for zero percent interest on balance transfers for six months. Chase Slate has no annual fee, so that all your payments go toward paying your balance down instead of paying to use the card.

The Slate card also come standard with Blueprint by Chase. This amazing set of tools allows you to stay on top of your debt and learn how to pay it off. One of the best features of Blueprint is Full Pay. When using Full Pay, you can select the categories of purchases, like gas or groceries, that you want to pay in full every month. As long as you make your Blueprint payment before your payment is due, no interest will be paid on those purchases. Even if you carry a balance, interest will only be applied to the purchases that are not a part of Full Pay.

The other features of Blueprint are Split, Finish It, and Track It. Split is designed to help you set up a payment plan for specific, larger purchases while Finish It applies the payment plan to your entire balance. Track It categorizes your purchases, whether it be gas, groceries, or dining out, and separates them so that you can see where your money is being spent. The nice thing about your enrollment in Blueprint is that it isn’t set in stone. You can change your settings to meet your financial needs from month to month without penalty. And as long as you pay at least your minimum due before your due date, your account will stay in good standing.

The Slate card also has great additional benefits provided to you at no extra cost, just for being a Chase cardholder, like:

24/7 Fraud Monitoring - Your account is monitored for suspicious activity and reported to you as necessary.

Zero Liability for Unauthorized Purchases - Find a charge on your statement you didn’t make? You won’t have to pay for it, though certain restrictions do apply. Be sure to check the details.

Email and Text Alerts - Not sure when your payment is due? Can’t remember if a payment was made? By using email and text alerts, you will always be on top of your account. While this service is free through Chase, standard text messaging and/or data rates may apply.

Global Acceptance - The Chase Slate card is co-branded with Visa, so it's accepted in 26 million locations worldwide in over 150 countries, easily covering you in the event of an emergency.

The biggest drawback to this card is the lack of a rewards program. This card was designed for the credit card user who either uses credit sparingly or who wants to pay down a higher balance from elsewhere. There are also other cards out there that have a lower APR; while Slate cards do have a lower rate than some, they certainly are not the lowest. Knowing what you want and need in a credit card will help you determine whether the Chase Slate card is right for you.

The Chase Freedom Credit Card, A Review

noreply@blogger.com (Steve Brown) — Wed, 24 Mar 2010 18:50:00 +0000

Summary: If you are looking for a no-hassle rewards card, look no further than Chase Freedom. With its simple rewards platform and easy reward redemption process, earning and using your rewards has never been simpler.

Finding that perfect rewards card can be likened to finding a needle in a haystack. With so many options from so many different credit card companies, it is easy to become overwhelmed. If you are looking for a simple, easy-to-use rewards card look no further than the Chase Freedom card. Chase has designed a simple rewards platform that makes it easy to earn and redeem your rewards. Coupled with no annual fee, unlimited rewards, and rewards that never expire, how can you go wrong?

The Nitty-Gritty

With the Chase Freedom card, you can enjoy a zero-percent APR (annual percentage rate) for the first six months your account is open. Your creditworthiness will determine your APR, which starts as low as 12.99%. The Freedom card also gives you the ability to transfer balances to your card at zero percent interest for the first twelve months your account is open, but it must be done when you initially apply for the card. Otherwise a minimum 12.99% rate applies for any balance transfer, again, depending on your credit history. You’ll want to stay on top of your payments; any account over 60 days past due reverts to the default 29.99% APR, potentially reducing any rewards you might accrue if you carry a balance. It should be noted that to even be considered for this credit card, you must have a good credit history. In addition, employment status and annual income are also important factors when determining your creditworthiness.

Chase Blueprint

Once you are approved for the Chase Freedom card, be sure to enroll in Chase Blueprint to begin managing your account. Blueprint allows you to take control of your finances, providing you with the necessary tools to pay down/pay off your account balance. This service is free to all Chase Freedom cardholders, and can be altered as needed to meet your needs. You can specify which purchases you’d like to pay in full to avoid interest charges as well as which purchases you’d like to pay for over time, called Split. You can split the payments up over however many months you’ll need, and Blueprint will track your progress on each statement until it is paid off. Their Finish It tool shows you how long it will take to pay off a large balance, showing you the amount in interest you will save as well as how many fewer payments you’ll have to make.

Rewards

At the core of the rewards program, you earn a full 1% cash back on every purchase with no earnings cap. Chase has also taken a leaf from Discover’s page and added rotating rewards and a shopping portal to earn additional rewards on purchases. The rotating rewards program allows you to earn 5% back on purchases made in various categories that change every three months. Quarterly enrollment is required to ensure that your purchases are properly tracked, and earnings are capped at $600 per month. Using the Chase shopping portal allows the participating merchants to track your purchases and issue your rewards. Merchants like Bath & Body Works, Best Buy, Home Depot, iTunes, and Wal-Mart all allow you to earn percentages from each purchase ranging from 1% to as high as 20%. There are a few merchants that give you a preset dollar amount per purchase rather than a percentage, so be sure to check before you buy.

Rewards Redemption

Redeeming your hard-earned rewards is always the best part, and Chase offers several redemption options to choose from. You can opt to redeem your points for travel by booking online through Chase travel, which is powered by Orbitz. You can also redeem your rewards for gift cards from merchants like Best Buy, Dunkin Donuts, Lowes, or Target. Of course, you can also choose to receive the good ‘ole greenback to do whatever your heart desires. With the Chase Freedom card, the sky is the limit and the choice is yours.

Bottom Line

The Chase Freedom card is an excellent rewards card for those who want either cash back or gift cards to their favorite stores. This card is easy-to-use, has a simple reward calculation formula, and has an easy rewards redemption process. However, in order to enjoy the benefits this card offers you must have a good credit rating. Chase Freedom also has higher interest rates than some of the other rewards cards out there which do not translate well for those who will carry a balance. If you are a frequent flier, you may want to find a card that allows you to amass airline miles coupled with the other frequent traveler perks other cards offer.

American Express or Discover: Which One is Right for You?

noreply@blogger.com (Steve Brown) — Mon, 22 Mar 2010 15:12:00 +0000

Summary: American Express and Discover have some of the best consumer cards out there now, but choosing which company to go with can be difficult. By gathering information about each company, it will help you make the right choice for you and your family.

Making the decision to get a credit card should not be taken lightly. You need to be sure that you are in a place financially to meet the obligations of the card should you be approved. In addition, you also need to decide the type of borrower you are to determine which card will work best for you. Both American Express (also known as AmEx) and Discover offer rewards cards, but if you are not able to pay your balances in full each month your cash back rewards could be negated. Once you determine the type of borrower you’ll be and what you are looking for in a credit card/company, the fun part begins-applying for the card, (hopefully) being approved, and using it to reap the rewards.

American Express: All in Favor?

American Express is different from most credit card companies in that it actually issues, authorizes, and settles all the accounts themselves. They introduced the plastic credit card in the late 1950’s as a charge card whose balance had to be paid in full each month. It wasn’t until 1987 that AmEx gave their customers the option to pay over time. There are many excellent reasons to choose AmEx:

Great cash back rewards. On some AmEx cards you can earn up to five percent cash back on your purchases. You should read the fine print of the card(s) you are interested in to be sure of its terms.

No preset spending limit. As an AmEx cardholder, you will be able to breathe easier knowing your card will not be declined in the event you go over your limit. In addition, your superior credit rating coupled with the length of time you are an AmEx customer will give your account even more flexibility in the future.

Exceptional customer service and complimentary concierge services. Ranked best in customer service for three years running, you’ll have the peace of mind knowing that if a problem does arise it will be taken care of swiftly. Moreover, the added bonus of having a complimentary concierge to help make important arrangements will help make anything you need to plan a breeze.

American Express: All Opposed?

Even with all the great benefits to being an AmEx card holder, there is always another side to the coin. Some factors to consider:

Higher annual fees. Although it can be said that AmEx has many great cards out there with no annual fees, the fees on the cards that carry them can be substantial. It is important to look at the benefits of each card versus any fees that come with them. That way any potential rewards will not be negated by the annual fee to be paid.
Not widely accepted. AmEx, although it has generally been viewed as an exclusive card, is still not as widely accepted as other credit cards. This comes from the higher fee they charge merchants who accept the cards. Having an AmEx card may make you feel good, but you may need to have a back-up card for when AmEx is not accepted.

Know Your Repayment terms. When looking for an AmEx card, you should take careful note of the repayment plans for the specific cards you are interested in. In the past, AmEx only issued charge cards in which the balances had to be paid in full each month. Nowadays, many of their cards still require the balance to be paid in full monthly, but they do offer cards that allow payments to be spread out over time. Knowing how you plan to use the card before applying will help avoid any surprises after your approval.

Discover Cards: All in Favor?

Discover Financial Services came about from an unsuccessful attempt by Sears to become a player in the financial services industry in the late 1980’s. Growing from a small spin-off company to now being one of the largest credit card issuers in the world, they have since become a force to be reckoned with. Some of the positive attributes of Discover cards are:

Fantastic cardholder perks. Being a Discover card holder gives you extra leverage when the unforeseen happens. Coming standard with the card are things like zero liability for fraudulent transactions, supplementary auto rental insurance, and travelers insurance. The terms for each of these varies, so be sure to check the fine print.

ShopDiscover shopping portal. Being a Discover cardholder has its advantages, one of which is the ShopDiscover shopping portal. By shopping through this portal you can earn between 5%-20% cash back on purchases from your favorite stores, racking up your rewards very quickly.

Lower interest rates. Some of the most popular Discover cards have a 0% APR for the first six months with as low as 11.9% APR thereafter based on your credit report. Most other card companies have a base rate of at least 14.9% which can really add up, especially if you carry a balance. Couple this with no annual fee and your rewards can add up fast.

Discover Cards: All Opposed?

With all these great attributes, it’s hard to believe that there could be any downsides to Discover. Here are a few things to consider:

Not widely accepted. Like AmEx, Discover cards are still not accepted like Visa or Mastercards are. You should have a back-up card on you in the event Discover is not accepted.

High cash advance rates. Pretty much all credit card companies charge insanely high rates for cash advances, and Discover is no exception. With a 19.99% fixed rate on all cash advances and a 3% transaction fee with a minimum $5 fee, this is a surefire way to lose money fast.

Knowing the pros and cons for both card issuers is only half the battle. Knowing the type of borrower you’ll be as well as what type of card you are looking for (rewards card, etc) will help you make the right decision. In addition, you should be sure you understand the terms and conditions set for each card to avoid any “surprises.” Recognizing your wants and needs and comparing them to what each company has to offer will help you determine which card is right for you.

Is the Discover More Card Still the Best Cash Back Rewards Card in the American Market

noreply@blogger.com (Steve Brown) — Thu, 18 Mar 2010 02:01:00 +0000

Summary: The Discover More card boasts discounts of up to 20% off through participating partners while earning unlimited rewards. Combined with their stellar customer service and built-in perks for being a Discover cardholder, it has never been easier to make your money work for you.

It seems that rewards cards are a dime a dozen these days, but all rewards cards are not created equal. The Discover More card blasts the competition with features like no annual fees, unlimited cash back reward earnings, and rewards that do not expire. Combined with the many different ways to earn and redeem rewards, the Discover More card is continually hailed as the best rewards card out there.

Discover More Card Basics

The fundamentals of the Discover More card look like this: there is absolutely no annual fee. Ever. Which means the money you earn stays in your pocket. In addition, you also get zero percent interest on all purchases for the first six months, and balance transfers for the first year. After the six month period and one year period, respectively, the rate jumps to as low as 11.9% for all purchases which is still below the average 14.9% of other cards. Discover cardholders also get to enjoy a 25-day grace period, five days more than any other card. You can also opt to have an additional card number for all of your online shopping; protecting your real card number in the event someone would get hold of it.

Reward Tiers

Rewards. Everyone loves them. And when you can earn unlimited rewards that do not expire, what could be better? With the Discover More card, you can do this and so much more. This card has a “tiered rebate system;” spend up to $1500 and get 0.25% back. Spending $1500-$3000 will get you 0.50% back, and once your annual expenditures are over $3000 you get a full 1% back on your purchases. There is also a program called “Get More Purchase” that gives you a 5% rebate on any purchase within the categories that rotate quarterly. You must sign up for each quarter’s program, but once you do simply use your card to start earning. This program does have a cap for the 5% reward, but anything over the cap will count toward the up to 1% reward you earn everyday by using your card.

Shop Discover

Built-in to the Discover More card is a shopping portal that can earn you up to a 20% rebate on your purchases with participating partners. Simply sign in and browse through their huge list of partners, such as Best Buy (5% rebate), Foot Locker (10% rebate), PetCo (15% rebate), and Restaurant.com (20% rebate) to earn your rewards. The amount of rewards that you can earn is unlimited, and you can even take the rebates earned and double their value by redeeming them for a gift certificate to over 100 partner stores.

Reward Redemption

Racking up the rewards is nice, but the real fun comes when you redeem them. The Discover More card gives you many different options for getting your rewards. You can redeem them for Discover gift cards or merchandise, or even make a charity donation in $20 increments. Or you can choose cash back via direct deposit or a Discover More account credit in $50 increments. You can always combine the different ways to redeem as long as each redemption type is above the minimum amount (either $20 or $50). It is important to note that although your rewards will never expire, if your account is inactive for 18 months or closed for any reason; your accumulated rewards will forever be lost. The same is true if you are late making two consecutive months payments; your rewards will be lost and reset to zero.

Subprime Credit Cards Are Still Profitable, So They Aren't Going Away

noreply@blogger.com (Steve Brown) — Fri, 14 Aug 2009 14:37:00 +0000

With the country in a deep recession, and a new law that has many banks concerned about the profitability of their credit card products, you might be thinking that subprime credit cards are on their way out. To the contrary: it seems that subprime cards are performing relatively well for certain banks, thank you very much.

Consumers who have a limited credit history or no credit profile at all, and those who have bad credit, may be glad to know that subprime cards are still profitable for banks, so they aren't going to die out any time soon.

Here's a clip from a recent Wall Street Journal article:

"...British bank HSBC Holdings PLC, which has a large portfolio of U.S. credit-card customers, now generates better results with its subprime credit-card businesses than the portfolio that includes more-creditworthy customers, North America Chief Executive Brendan McDonagh said in a conference call Monday.

HSBC's subprime credit-card customers generally have lower credit limits than prime customers, averaging less than $500, and are defaulting at a lower-than-expected rate. The reason: For many of those borrowers, a credit card is their only form of noncash payment.

About a quarter of HSBC's $41 billion credit-card portfolio is considered subprime, and the delinquency rate on that is 10%, a 21% increase over last year. But because of higher interest rates charged to these borrowers, HSBC says that business is profitable.

One reason prime delinquencies are up is rising unemployment. When these borrowers lose their jobs they typically focus on making their mortgage payments and, because they tend to have multiple credit cards, they are more likely to let some of them default..."

The Credit Card Accountability Responsibility and Disclosure Act of 2009

noreply@blogger.com (Steve Brown) — Thu, 06 Aug 2009 17:48:00 +0000

Perhaps you've noticed that you are not receiving loads of credit card offers in the mail anymore. Remember how many you used to get during the credit boom years? Tons. Back then, you may have asked yourself, "how are banks able to make money with credit cards by offering credit to just about anybody? Aren't the bad apples who pay late or default going to cost the banks millions, if not billions?" Good question.

American banks were able to make massive profits from all types of consumers -- including the subprime borrowers -- because they were free to reprice cards whenever they wanted. Even so called fixed-rate cards could be repriced, with little warning. That new credit card customer who turned out to be irresponsible with his finance, as evidenced by late or missing payments, did not phase the banks. As soon as Joe Spendthrift started paying late, or not at all, the banks were free to simply jack up his interest rates to usurious levels, and charge him late fees, over-the-limit fees, telephone payments fees, etc. It was a good time for the banks. They made billions.

Enter the newly enacted Credit Card Accountability Responsibility and Disclosure Act of 2009 (also known as the Credit CARD Act of 2009.)

Because banks can no longer reprice credit cards the way they used to, they've had to ditch those tried and profitable models that worked just fine during the boom years, and figure out how to make money within the limits of the new law. Fees and fee traps have been reigned in. Disclosures and terms will have to be easy to access and understand. No more retroactive rate increases.

The credit card banks are also working within the context of the worst recession since the Great Depression. Moreover, since the market for credit card receivables dried up during the early part of the credit crisis, banks won't be able to sell credit-card debt to investors as easily as they used to; not even close.

What can you expect? Most items in the Card Act will go into effect in February 2010. Here's what consumers can expect between now and February, and beyond:

Lower credit limits.
Tighter lending standards (i.e. harder to get an application approved)
More expensive pricing (i.e. higher APRs)
Less generous rewards programs, with some programs charging a fee for participation
More manual reviewing of credit card applications, and fewer instant-approval cards
Documentation requirements: you may have to provide copies of recent paystubs to prove that you are really earning what you declare on your credit card application.

Are we returning to the days when everyone paid a 19.99% annual percentage rate with an annual fee to boot? I doubt it. But terms and conditions won't be favorable until the economy returns to prosperity and banks have had time to figure out how to make strong profits while conforming to the new credit card regulations.

For more on the Credit CARD Act of 2009, visit this page and this page.

One More Reason to Read Those Credit Card Terms and Conditions Carefully

noreply@blogger.com (Amanda A.) — Wed, 25 Feb 2009 04:56:00 +0000

We've all heard horror stories about it, and we all dread it. I'm talking about fine print. Many of us fail to read it, or even give it a cursory glance before we sign, or agree to something. I'll tell a story of how fine print can trip a person up, and end up costing them more than they expected.

A little over a year ago, my husband opened a credit account with Bank of America. He received the card in the mail, activated it, and began to use it. I advised him to read the terms and conditions carefully, but with the bravado that's so typical of him, he said that "he didn't have time for fine print". I shrugged, and went about my business, hoping that he wouldn't go too crazy with the credit card, and that we'd be able to pay the balance each month.

Oh, how wrong I was.

We managed to pay the balance for about six months, then he bit off more than he could chew by requesting a cash advance on the card. He found an incredible deal on a classic car that needed restoring, and the owner wanted $2500 for the vehicle. He got the cash, but not before I again told him that he should review the terms on the credit card agreement that referred to the interest rate charged on cash advances (If I recall correctly, the rate was 32%. Steep!). He was in such a rush to get the car that technicalities like that weren't important to him. They soon would become important, however.

The next month we couldn't afford to pay the entire balance, of course. The total owed on the card was $3,100, and after we paid all the necessary bills like rent, car insurance, water, phone, and utilities, we could barely manage to pay the minimum of $150. As times got rougher, we couldn't even bear to pay the minimum. After about five more months of not paying at all, the account went into default and collection efforts were started. My husband received several "courtesy notices" reminding him of the money he owed, and he foolishly continued to disregard them. Then, the efforts got decidedly less friendly.

My husband checked his online banking statement one morning, and he was more than $1,000 overdrawn. He'd written five other checks the week previously, but they didn't add up to what he'd had in the account, which was almost $4,000. Here's a breakdown of what the bounced checks were supposed to pay for.

Car insurance. He lost coverage that month, and had to borrow money from his parents to get it reinstated.-The phone bill. Our house was without phone and internet service for a week, until he was able to pay the bill, plus the returned check fee, in cash.
Our electricity bill. Luckily I was able to call and get an extension, to avoid having the lights cut off.
The water bill. As with the electric company, I was able to negotiate a payment arrangement to avoid losing the water service.
The trash collection bill. As that was the smallest bill of the lot, my husband was able to go to the hauling company's local office and pay in cash.

He called the customer service number for Bank of America, and after waiting ten minutes to speak to a representative, he found out why the account was so seriously in the red. Since he hadn't read the fine print on the credit card agreement, he hadn't known that his Bank of America card was linked to his Bank of America checking account- and that after the account went into default, the credit card company could go in and drain his bank account to pay the bill. He was angry and shocked, but it was really his mistake because he didn't bother to read the terms and conditions that went with the card.

After alternately pleading, feigning ignorance, and arguing with the Bank of America credit card customer service rep, he finally negotiated a deal where he'd be partially reimbursed for the money taken out of his checking account. He ended up losing $2,500- the amount of the cash advance he'd gotten. He was still irritated about that, but as I quite rightly pointed out, losing $2,500 is a lot better than losing nearly $4,000. I told him to let that whole experience serve as a lesson and a warning, which, thankfully, he has. He's much more diligent now about reading the fine print on everything.

Always, always read the terms and conditions on any credit card you're about to sign up for. The credit card companies LOVE it when people don't read the fine print, because that means they can slap them with all kinds of late fees, higher interest rates, and other miscellaneous charges. It may not be exactly fair, but it's perfectly legal.

Free Money from American Express & Costco

noreply@blogger.com (Steve Brown) — Tue, 16 Sep 2008 21:44:00 +0000

Yes, that's right: American Express and Costco have decided to give you $25 for free. So, what's the catch you ask? Here it is: all you have to do is signup for the True Earnings® Card from Costco and American Express and, once your account is established, you will get a statement credit of $25 after you make your first purchase.

This is a pretty exciting offer, especially considering that this credit card is already one of the best rewards cards we've ever encountered. Here are some other great benefits:

Earn cash back virtually everywhere you go - 3% for gasoline, 3% for restaurants, 2% for travel, 1% everywhere else, including Costco
No Annual Fee with your paid Costco Membership
The TrueEarnings Card serves as both your American Express Credit Card and your Costco Membership Card
No Limit on the Cash Back earned

This card is tied with the Discover Open Road card as the best consumer gas rewards credit card.

This offer special statement credit offer won't last forever, so if you are planning on getting this card, try not to procrastinate.

Twice The Victim of Fraud, In As Many Weeks

noreply@blogger.com (Steve Brown) — Tue, 26 Aug 2008 15:43:00 +0000

When it comes to my credit and debit cards, I'm very paranoid. I check my accounts daily; I scan for any charges I didn't make (I love Internet banking.) I've never been a victim of credit card fraud, until recently.

Last month, I noticed a charge on my Chase debit card for flowers which I never ordered. The charge was over $100 and the purchase was made at an online florist in Europe. As soon as I noticed the charge, I got on the phone with Chase to report it. I assumed that this type of claim was routine for a big bank like Chase; I also assumed that the process would be efficient and hassle-free. I was disappointed to learn that Chase would need to email me a claim form which I would have to fill out and fax back to Chase. Thankfully, the claim form was one page and it only took me a minute to complete, but I was still disappointed. Why was I being forced to use an inefficient technology that was hot back in the 1980's to make this claim? Why didn't Chase have a secure webpage I could visit to file my claim online?

Chase needed my signature on the form and that's why I needed to fax it. OK, I can understand that. Form completed, I scanned the document then fired up my fax software (Symantec's Winfax 10.0) and initiated the send. At the end of the send, Winfax indicated that the fax was successful, but it also returned an "unable to communicate with modem" error. I'd seen this error many times before and it never caused any problems, so I ignored it.

According to the instructions on the claim form, Chase would credit me the full amount of the disputed charge as soon as they received my signed claim form. Two business days passed and I still did not see a credit for the disputed amount in my account. I called Chase to ask them why they hadn't credited my account. They told me that they hadn't received my fax. I became irate at this point and demanded to speak to a supervisor. After waiting a few minutes, a supervisor came onto the line and told me that he had investigated my situation. He said that Chase had received my fax, but the portion of the document that contained the signature line was not transmitted, so the claim was not processed. Assuming that the error was their fault, I gave this guy a bit of a hard time, demanding that they process my claim immediately. He assured me that the problem was at my end and asked me to resend the fax. After taking a deep breath, I acquiesced.

I sent the fax two more times, and Winfax returned the same communication error despite simultaneously indicating that the fax was sent successfully. OK, so the problem could be my good old reliable Winfax 10.0. I really like Winfax, and you know how it is when you're in love: the object of your affection can't do wrong.

I conducted a quick Yahoo! search for "send fax free" and found FaxZero.com. Never used it before; never heard of it. FaxZero is free, intuitive and fast. The site is supported by ads. You can use the site to send and receive, though there are some restrictions if you choose not to pay anything. A few hours after I used FaxZero to send my claim form, I saw a credit in my Chase account for the disputed amount.

OK, so Chase wasn't at fault. It was stupid Winfax. The software had all the latest updates installed. Symantec wanted me to pay money to upgrade to a newer version of Winfax to get rid of this problem. No way, José. The software should not be telling me that a fax was sent successfully when in fact it wasn't. I deserved a free upgrade, but I wasn't going to get one. Bye-bye Winfax.

How was my account compromised? I have no idea. I use my debit card in both the online and offline worlds. Needless to say, I've modified the way I use my cards. Chase mailed me a new debit card within 3 business days of my initial phone call about the crime.

Two Weeks Later, My Chase Credit Card Is Compromised!

OK, so a little less than two weeks later, I get a call from Chase. They are calling to let me know that they detected a suspicious authorization on my Chase credit card. The charge was for less than $4, and the transaction was never captured.

Authorizing is when a merchant uses a credit card machine or software to tell your bank to set aside a certain amount against your account for a purchase. The merchant can then "capture" the charge later in the day in a batch process. Capturing is when the merchant tells the bank to process the authorized amount and complete the transaction. A merchant can authorize first then capture later, or the merchant can opt to do both at the same time. The merchant gets paid in step 3 of the credit card purchase process, when the transaction is "settled."

The 3 step process is all about security.

The folks at Chase have software that calculates the likelihood that a charge is legit, based on a cardholder's location, spending habits and other criteria. Red flags went up for this particular charge so Chase called me to ask if the charge was made by me. It was not. The Chase rep explained that criminals will often authorize a small amount first before attempting to rip off an account for a much larger amount.

The Chase rep told me that my credit card account number was no longer valid, and that I should destroy my credit card right away. A new card would be shipped to me within 5 business days. I explained to the rep that I had some important payments to make and I really wanted to use this particular Chase credit card (I'm in the middle of a 0% intro APR deal with this card, but I didn't tell that to the Chase rep.) She understood and offered to rush my replacement card to me; I would receive it within 2 days. I asked if I would be charged for the rush delivery and she said no, so -- a real no-brainer here -- I accepted the offer. Replacement card was delivered 2 days later, as promised.

Banks tend to be very frugal about things, so I was impressed that I was able to get my card in a hurry without being charged extra for the shipping upgrade. Kudos to Chase. I would expect the same from American Express, as they tend to go the extra mile to make sure that their customers are satisfied. I've read and heard good things about Discover as well, though I can't comment on the company since I've never had a Discover credit card account.

So, Which Is The Best Gas Rewards Card Anyway?

noreply@blogger.com (Steve Brown) — Sat, 16 Aug 2008 22:53:00 +0000

If you look at our pages listing the best consumer gas rewards credit card and the best business gas rewards card, you will notice that we list a Chase and an American Express card for business, while on the consumer side we list a Discover card together with an American Express card. We do this because, for each category, these cards are tied for first place.

Reason for the tie on the business card side: American Express is a highly reputable bank which offers truly excellent customer service. The TrueEarnings® Business Card from Costco and American Express offers a generous 5% cash back on automobile gas purchases. However, with the Amex TrueEarnings card, you claim your earned rewards annually, which some cardholders find restrictive. Here's a snippet from the TrueEarnings terms and conditions:

"...Rebate is awarded annually in the form of an in-store coupon redeemable for cash or merchandise at any U.S. Costco Warehouse..."

With the Chase Business Rebate Card, you get 3% cash back on gas purchases, which is great. As a bonus, you can claim your rebate whenever you want. Once you've accumulated enough points, you can log onto Chase's rebate center website and browse their catalog. Among the items you can get with your rebate dollars is a statement credit, and a statement credit is as good as cash.

On the consumer side: The Discover® Open Road Card offers a 5% Cashback Bonus on gas and auto maintenance purchases. But there's a catch. From the terms and conditions:

"...Earn unlimited cash rewards on all purchases. Earn a full 5% Cashback Bonus on your first $100 in combined gas and auto maintenance purchases each billing period - up to $1,200 annually. In addition, earn a full 1% unlimited Cashback Bonus on all other purchases after your total annual purchases exceed $3,000; other purchases that are part of your first $1,500 earn .25% and other purchases that are part of your second $1,500 earn .50%. Combined gas and auto maintenance purchases in excess of $100 each billing period earn Cashback Bonus at the same rate as other purchases..."

We all know how pricey gas is these days. Getting 5% cashback on the first $100 in gas purchases each month is nice, but for folks who do a lot of driving, this may be a significant buzzkill.

With The TrueEarnings® Credit Card from Costco and American Express, which is a "personal" or "consumer" credit card, you get 3% cash back on gasoline purchases. You can also transfer a credit card balance at 1.99% intro APR for 6 months, and pay no balance transfer transaction fee.

With all other credit card categories in this site, there's a clear winner, and that' why we list only one card on these pages. As for the best consumer and business gas rewards credit card, we'll let you decide between the finalists.

H.R. 5244: The Credit Cardholders' Bill of Rights Act of 2008

noreply@blogger.com (Steve Brown) — Mon, 04 Aug 2008 22:29:00 +0000

I had just about given up on Congress when they enacted the Bankruptcy Abuse Prevention and Consumer Protection Act back in the spring of 2005 [1][2][3]. The bill gave the banks what they wanted, and made it harder for those in financial dire straits to declare bankruptcy, even poor folks who got into trouble due to high medical bills. The new law makes it more difficult for deadbeats to get away with not paying their bills -- and I have no problem with that -- but it also punishes those who deserve the kind of help that only bankruptcy can provide.

Now it seems that Congress is on its way back to representing the people instead of focusing on doing whatever the Corporate America-controlled lobbyists want.

Last week, the House Financial Services Committee passed by a vote of 39-27 the "Credit Cardholders' Bill of Rights Act" (H.R. 5244.) If this bill is passed into law, things like double-cycle billing and universal default will become illegal. This bill still has a long way to go before becoming law, but it's a very good start. The bill was introduced by Democrat Representative Carolyn Maloney of New York on February 7^TH, 2008, and still must go through debate, a vote in the House, a vote in the Senate and finally a signature by the President. Godspeed.

Don't get me wrong. I love credit cards, especially 0% cards that also feature generous cash back rewards. If this bill becomes law, much needed checks would be put into place to keep the credit-card banks from abusing their considerable power, and consumers would be able to spend with their plastic, secure in the knowledge that the credit-card playing field is reasonable and fair. Nothing wrong with that. That's the American way.

I wouldn't be surprised if passing H.R. 5244 into law boosted consumer spending; more spending is something the U.S. economy needs right now and for many months ahead[1][2]. In my humble opinion, I don't think the recent stimulus payments will do much to ward of a recession. I think most folks used the bulk of that money to pay down debt and/or shore up their savings. If we must endure a recession, let's hope that it's short and shallow. Amen.

U.S. Prime Rate Likely To Remain at 5.00%

noreply@blogger.com (Steve Brown) — Mon, 04 Aug 2008 02:28:00 +0000

If you have a variable-rate credit card in your wallet or purse, chances are the annual percentage rate (APR) is indexed to the U.S. Prime Rate. The Fed will be meeting on interest rates on Tuesday, and, thankfully, it's likely that they will leave the Prime Rate where it is.

If you have a lot of credit card debt, and you're paying interest on it, then be careful. With inflation on the minds of just about everyone in America, it's quite possible the Fed will raise the Prime Rate at some point later this year. Stay tuned to Prime Rate forecasts here.

When the Fed cuts Prime, credit-card banks usually respond by lowering your Prime-indexed APR, but they tend take their time. On the other hand, when the Fed raises Prime, banks usually respond by raising Prime-indexed APR's quickly. Something to keep in mind as you make money-related plans and decisions now and during the rest of 2008.

Credit Card Debt: State Rankings

noreply@blogger.com (Steve Brown) — Sat, 02 Aug 2008 20:05:00 +0000

If you've ever wondered how your state ranks in terms median credit card debt per borrower, then check out this page, brought to you by the good folks at Americans for Fairness in Lending.

Scroll down the same page at the www.affil.org website and you'll find a form that anyone can use to quickly and easily contact the Federal Reserve and share with them experiences dealing with credit-card banks. There are literally tens of thousands of letters. I think it's a safe bet that reform is on the way.

It's good to see that the Fed is on the credit card reform bandwagon.

FYI: If you decide to submit your story, it may be made public here, so don't send anything too sensitive or too personal, like your credit card number or social security number.

Credit Card Consumers Are Fed Up with Abusive Terms

noreply@blogger.com (Steve Brown) — Wed, 30 Jul 2008 01:37:00 +0000

Credit cards are great. They allow us to quickly and easily buy the things we want and need in life. They offer excellent protection from fraudulent merchants, Internet scammers and other credit card criminals. Moreover, most credit cards in the American market offer very generous rewards programs, and all you have to do to take advantage is keep your credit score high so as to maximize the odds that your credit card application will be approved.

Besides, who wants to carry huge wads of cash around every day?

Of course, there's a dark side to the credit card industry. Certain banks try to take advantage of both credit worthy and not-so-credit worthy consumers with abusive terms and conditions. Policies like Universal Default, out-of-the-blue credit line decreases and interest rate increases, double-cycle billing and, with regard to balance transfer offers, applying payments to low interest credit card-debt first.

According to a recent CommonDreams.org press release, American credit card consumers are sick of unfair terms and conditions, and they're pushing the Fed to implement new rules sooner rather than later.

Since the Federal Reserve proposed rules to prohibit unfair practices regarding credit cards, the central bank has been flooded with consumer complaints related to the terms and conditions associated with their credit card accounts. Here's a clip from the release:

"Over 30,000 Consumers Flood the Federal Reserve Board With Complaints About Abusive Credit Card Practices...Huge Public Response Shows Need for Board to Adopt Strong Protections Quickly...

...Angry consumers have deluged the Federal Reserve Board’s public comment system with more than 12,000 personal pleas for reform since banking regulators invited comments on a proposed new rule to curb unfair and deceptive credit card charges. In addition, about 19,000 more Americans have sent form letters urging action since banking regulators proposed the rules on May 2, 2008. The deadline for public comments on the proposal is August 4, 2008.

'The massive response in favor of these reforms shows that Americans are fed up with the many traps and tricks that card companies use to drive up the amount of debt consumers owe,' said Travis B. Plunkett, legislative director of the Consumer Federation of America. 'We urge the Federal Reserve Board to take heed of this overwhelming public reaction by finalizing strong rules to curb credit card abuses by the end of the year.'

The proposed rules will curb a number of unfair practices, including:

• Costly and Unjustified Interest Rate Increases. Credit card companies could no longer charge higher interest rates on balances incurred before a rate increase went into effect, unless the cardholder is more than 30 days late in paying his or her credit card bill.

• Hidden Payment Allocation Methods that Cause Debt to Escalate. Card issuers would be required to more fairly apply the payments that cardholders make to balances with different interest rates. When consumers transfer balances with low, short-term 'teaser' rates (that have higher rates for new purchases), issuers would be required to apply payments first to higher rate debt.

• Interest Charges on Paid Debt. Companies could not use 'double cycle billing,' which requires cardholders to pay interest on debts paid off the previous month during the grace period. 'The time for Americans to act is now if they want their credit card company to treat them better,' said Plunkett. 'Consumers have about two weeks to make their voices heard.' Americans can write the Federal Reserve Board about the proposal by e-mailing directly to regs.comments@federalreserve.gov and mentioning Docket No. R-1314 in the subject line.

Some examples of recent comments to the Federal Reserve Board include:

'I support reform of credit card rules and regulations…The average consumer cannot afford to have their financial welfare in the hands of the credit card businesses.'
Mary, Borden, IN

'Credit card fees are out of control and the total of all of the penalty fees, plus interest rate increases, does nothing to support the recovery of the economy or of the individual consumers who are struggling in today's economic hard times.'
Kathleen, San Jose, CA

'[They] raised my rate from 6.99% to 15.99% in August 07, for no apparent reason other than they could. In my opinion that's legalized loan sharking. I was fortunate enough to be able to pay it off. Others, I'm sure, aren't so lucky.'
Pryor, Roswell GA

'I think it is abhorrent that I make timely, substantial payments to my credit cards and NOTHING gets put towards my higher interest rate.'
Elissa, Great Neck, NY

'...charging interest on amounts which have been paid during the month should be curtailed. It's ridiculous that paying off the majority of the bill, but leaving a few dollars owed, can cause full interest on the previous month's balance to be levied.'
Ingrid, Loma, CA..."