These days, credit card companies are targeting teenagers to apply for credit cards aimed specifically at them. You might wonder why this is the case and how it can be possible. The reason for this is that in the USA a large portion of the population (around 11% that is estimated to grow until 2010) is made up of teenagers. These young people manage to spend large amounts of money every year, which is continually rising.
Another reason the credit card companies are looking at teens to take on credit cards is that they obviously do not have the experience of using such cards, and yes, it is a way of making money out of them. Think about, how many teenagers you know would be 100% responsible when using a credit card all the time? Wait a minute, how many adults are responsible when using their credit cards and managing their debt?
More and more teens are using the Internet everyday. In many cases if you wish to buy something via the Internet you need to use a credit card. As more young people are using the Internet, more of them would also like to buy items via the Internet. If you need a credit card to make Internet purchases and an adult with such card is not always around, how do you make the purchase? Some people would like to believe that teenagers should not be buying anything off the Internet, but in this day and age, you cannot stop technology from advancing, or choose who its users should be.
When it comes to credit cards for teenagers, not all credit card companies are offering them yet. Capital One however, is a bank that is targeting teens. With these types of credit cards, parents or guardians will have to co-sign the card and will be responsible if monthly payments are not made. The parent will be responsible for the card until the teenager turns 18, and then becomes fully responsible for his/her card.
Besides the obvious, negative possibilities of credit cards for teenagers (blowing money that they do not have) there are a number of positive aspects of these types of cards. If the card is managed responsibly, it helps to build a good credit history for the young person, which will allow for better interest rates, renting or buying a house, buying a car, applying for a loan etc, when the person is older. Another positive thing about these credit cards is that teenagers are exposed to revolving credit and can be taught early on how to manage their finances properly. There are definitely times in a person's life when a credit card is needed. For example, when booking accommodation, or for car rentals, or to make Internet purchases.
Parents don't like to talk to their children about money because these areas can be a sore point. If you have a credit card as a parent and you splurge on it all the time, then battle to pay off the outstanding amount, do you think your child will learn the correct way to use a credit card? Probably not!!
Another problem is that teenagers may use the credit card for the sole purpose of using the credit, and not for building good credit. If you have an agreement with your teenager as to what good credit card use is, and you monitor the card's usage, you may very well be helping your child manage their finances effectively in future.
The following may be seen as both positive and negative aspects of a credit card for teenagers. If your teenager spends too much money on his/her credit card and cannot pay the amount back, the onus falls on you to pay it back. However, you can have a method in place where you take money off his/her allowance until the money is paid back. This in itself would teach your child about credit and how to manage it. It would be advisable that the credit limit on the card be low, as little as $300, instead of $1000. It is much easier to pay off a smaller amount of money faster. This situation would be a great learning experience for your child, instead of when your child is an adult and makes a mistake. Who will bail your child out then?
There is a lot of controversy about credit cards for teenagers. Should you give your teen such a card or not? Remember look at your financial situation first, and each child is different too. Some people should never own a credit card, regardless of their age. The decision is yours!
Tuesday, December 30, 2008
Monday, December 29, 2008
Credit Card Skimming Scams
Credit card skimming scams is an increasing phenomenon whereby a consumer's credit card is duplicated and used elsewhere without the clients' permission or knowledge. These types of scams are generally associated with organized crime syndicates who could not commit these scams successfully without the assistance of individuals in the retail sector. Credit card skimming is one of the single largest scams responsible for losses exceeding billions of dollars annually around the world.
How these scams are committed
Fraudsters have developed devices, able to read and store the information at the back of a credit card on the magnetic strip, when the card is swiped through the device. These skimming devices comes in various sizes and shapes and have been built with the aim of extracting information from the magnetic stripe of the credit card and storing it onto the device.
Syndicates typically approach individuals employed in the retail sector, accepting payment from clients. These individuals are offered attractive remuneration for their services and are simply asked to swipe a clients' credit card through the device before or after processing the payment. These individuals are generally paid for the number of credit cards they swipe through the device on a daily basis. In general syndicates prefer to target employees of restaurants. Syndicates would, on a daily basis obtain the skimming device from the person it was given to, and provide him / her with a new device for the next days' work. After obtaining the device, the syndicate would download all the credit cards' information from the device to a computer. From here the syndicate are in a position to transfer the information to a new card's magnetic strip, now having a cloned or duplicated credit card.
The more organized syndicates would often have the equipment required to fake a specific banks' credit cards' colour and designs ensuring they can operate successfully in public presenting the card as means of payment.
The lesser organized syndicates who does not have the required equipment would need to rely on other criminals employed in the retail sector who would assist in accepting the credit card payment where a blank card is presented and swiped.
Fraudsters also recently started creating skimming devices in the shape of a card slot of an Automatic Teller Machine. This device will then replace the actual card slot of an ATM, recording all information on magnetic stripes of cards placed into an ATM.
Protecting yourself against these scams
1. When presenting your credit card as means of payment it is always advisable that you accompany your card and keep your eyes on it at all times. Do not allow a waiter or other employees take your card away from your supervision.
2. When placing your card into an ATM slot, ensure that there are no signs of tampering.
3. If your bank offers a real-time electronic alert service, whereby you can be informed of all transactions on your account, you should sign up for this service. You will be in a position to identify fraudulent transactions immediately or soon after they occur.
4. Always ensure that you have your credit card in your possession. If your card is not in your direct possession, ensure that your card is locked away safely.
How these scams are committed
Fraudsters have developed devices, able to read and store the information at the back of a credit card on the magnetic strip, when the card is swiped through the device. These skimming devices comes in various sizes and shapes and have been built with the aim of extracting information from the magnetic stripe of the credit card and storing it onto the device.
Syndicates typically approach individuals employed in the retail sector, accepting payment from clients. These individuals are offered attractive remuneration for their services and are simply asked to swipe a clients' credit card through the device before or after processing the payment. These individuals are generally paid for the number of credit cards they swipe through the device on a daily basis. In general syndicates prefer to target employees of restaurants. Syndicates would, on a daily basis obtain the skimming device from the person it was given to, and provide him / her with a new device for the next days' work. After obtaining the device, the syndicate would download all the credit cards' information from the device to a computer. From here the syndicate are in a position to transfer the information to a new card's magnetic strip, now having a cloned or duplicated credit card.
The more organized syndicates would often have the equipment required to fake a specific banks' credit cards' colour and designs ensuring they can operate successfully in public presenting the card as means of payment.
The lesser organized syndicates who does not have the required equipment would need to rely on other criminals employed in the retail sector who would assist in accepting the credit card payment where a blank card is presented and swiped.
Fraudsters also recently started creating skimming devices in the shape of a card slot of an Automatic Teller Machine. This device will then replace the actual card slot of an ATM, recording all information on magnetic stripes of cards placed into an ATM.
Protecting yourself against these scams
1. When presenting your credit card as means of payment it is always advisable that you accompany your card and keep your eyes on it at all times. Do not allow a waiter or other employees take your card away from your supervision.
2. When placing your card into an ATM slot, ensure that there are no signs of tampering.
3. If your bank offers a real-time electronic alert service, whereby you can be informed of all transactions on your account, you should sign up for this service. You will be in a position to identify fraudulent transactions immediately or soon after they occur.
4. Always ensure that you have your credit card in your possession. If your card is not in your direct possession, ensure that your card is locked away safely.
Sunday, December 28, 2008
The Basics of Credit Card Use
Spending and capital is something that is inextricably a part of our culture. The world revolves and moves around through the flow and circulation of cash. And one of the best and most sure fire ways to keep the money going around, is to spend. All of modern day advertising is basically geared towards making you spend lots and lots of money. Common logic dictates that you have to have a lot of cold hard cash to do that. But technology has developed in such a way that now you don't need cash to make enormous purchases. Now all you need is a tiny piece of plastic.
The credit card is one of the most popular and widespread means of spending that can be seen anywhere. It is used by a lot of people as a system of payment. Unlike debit cards, they do not remove money from the account after a transaction. This makes the credit card a very, very convenient spending tool.
However when using a credit card, it would be best to remember the following:
You have to pay: Using a credit card is very simple, and many people take advantage of its spending power to the fullest. However when you apply for you credit cards, you are automatically agree to pay your issuer for every purchase you make with it. You will be made to sign a receipt with your purchase record and card information. Many people get into trouble because they forget this fact.
When buying: Merchants verify the validity of your card through an electronic verification system, which check if you have enough credit to cover whatever it is you want to buy. This verification can be done in just a matter of seconds using a credit card payment terminal or POS (Point of Sale) system. When it comes to online shopping, details like exact addresses are needed for verification.
The statement: Every month of using your credit card will mean you will receive a statement indicating all your purchases with the total amount you owe the issuer. It is important that you not abuse the powers of the credit card lest you fall into a bad case of debt. If you see anything inaccurate however, you have the right to contest the charges on it.
The credit card is one of the most popular and widespread means of spending that can be seen anywhere. It is used by a lot of people as a system of payment. Unlike debit cards, they do not remove money from the account after a transaction. This makes the credit card a very, very convenient spending tool.
However when using a credit card, it would be best to remember the following:
You have to pay: Using a credit card is very simple, and many people take advantage of its spending power to the fullest. However when you apply for you credit cards, you are automatically agree to pay your issuer for every purchase you make with it. You will be made to sign a receipt with your purchase record and card information. Many people get into trouble because they forget this fact.
When buying: Merchants verify the validity of your card through an electronic verification system, which check if you have enough credit to cover whatever it is you want to buy. This verification can be done in just a matter of seconds using a credit card payment terminal or POS (Point of Sale) system. When it comes to online shopping, details like exact addresses are needed for verification.
The statement: Every month of using your credit card will mean you will receive a statement indicating all your purchases with the total amount you owe the issuer. It is important that you not abuse the powers of the credit card lest you fall into a bad case of debt. If you see anything inaccurate however, you have the right to contest the charges on it.
Sunday, December 14, 2008
Create Credit Card Credibility! You Can Do It!
The recent credit crunch should not be a deterrent to your credit rating. You can increase your rating even in these times by being disciplined in your credit purchases. A few easy steps will keep you on track and in good standing with the credit reporting agencies.
Equifax, Experian and Transunion
1. Get a credit card that has the lowest APR. Shop websites, such as the at the bottom of this article, to get the best rate. Many companies offer 0% on transfer balances and low monthly rates.
2. Do not carry a monthly balance. This may be easier said than done but it is the primary goal to get the most out of your money.
3. Be aware of penalties and annual fees. Penalties most likely occur when you are late on your payments. They can be severe and costly and create the exact opposite effect on your credit. Simply pay your bill on time and problems will be avoided. Annual fees vary from card to card. Shop until you find one with no annual fee.
4. Use your credit card for essentials. Make purchases for budgeted items only. This will keep expenditures at a minimum and within your ability to pay. Gas and groceries must be purchased each month so use your card on these expenditures.
5. Another good strategy is to evaluate reward cards. There are a slew of these cards offered. Reward cards include air line miles, merchandise and cash back.
6. Keep copies of all your receipts. Retailers always give you one at the point of sale. Remember to print one off your computer if you make an on line purchase.
7. Keep a copy of your credit card information in a safe place. The average consumer has 3 to 5 cards. It is impossible to remember all the card numbers, the 1-800 numbers and customer service numbers for all these cards. Record this information and keep it in a safe and accessible place.
The recent credit crunch does not mean we must stop using our credit cards. By following wise financial planning and a reasonable budget we can continue to use our credit cards to build and increase our credit rating.
Thursday, December 4, 2008
Comparing Visa Credit Card Offers Including Chase Platinum and Discover Platinum
Visa credit cards are very popular, and there are many options including cards tailored to the needs of students, individuals, and both large and small businesses. The credit limits range from $250 on up, and you can apply for a card online. It can be a little daunting to select the card you want, but there are some tips to make it easier for you.
When you apply for a Visa card, you'll need to prove you have a job and offer copies of your credit reports and a little personal information. Of course, be sure to read the terms and conditions carefully before applying for the card. Because there are many different cards available, it can be tricky to sort out the differences. However, reading the fine print is very important in order to find the right card for your situation.
Many Visa cards have a zero percent introductory interest rate. As long as you pay your bill each month on time, you will not be charged interest. Some Visa cards offer point rewards which can be traded in for items from a catalog, or a cash back system which offers 2 percent or more, up to $500 per year.
It is very important that you make sure that the card offers a hundred percent guarantee against fraud, and no liability, so you will not be responsible for the charges if your card is used for fraudulent transactions. A few credit card lenders may charge you for items purchased after your card is stolen, so be sure to watch out for this fine print.
One popular card is the Low Interest City Platinum Select. This card has a 0% introductory APR for up to one year, which increases to 10.49%, with no annual fees. However, there is some fine print for this card. The zero percent "promotional rate" will increase if you do not pay your other creditors on the dates your bills are due. If you use your card overseas, it will cost you 3 percent on all purchases. Clearly, reading the fine print is very important when signing up for a new card.
The Chase Platinum Cards are also popular, and they offer low introductory APR rates and no annual fees. The card comes with a points reward system, but the APR skyrockets to 21.99 percent after the introductory period ends. While this particular card only has a few restrictions, it is still important to read them before applying for it.
The Discover Platinum card, another popular option, offers a 0% introductory APR, with no annual fees and cash back rewards. However, again there are some restrictions, which is why it is important to read the terms and conditions. Some cards have many restrictions on their offers, while others do not. Above all, be careful that you understand the credit card company's offer, and do not trust the ads to tell you the full truth.
Today is the perfect time to find out more about chase flexible awards. Beginners and experts turn to us as their source for information debtjerk.com.
When you apply for a Visa card, you'll need to prove you have a job and offer copies of your credit reports and a little personal information. Of course, be sure to read the terms and conditions carefully before applying for the card. Because there are many different cards available, it can be tricky to sort out the differences. However, reading the fine print is very important in order to find the right card for your situation.
Many Visa cards have a zero percent introductory interest rate. As long as you pay your bill each month on time, you will not be charged interest. Some Visa cards offer point rewards which can be traded in for items from a catalog, or a cash back system which offers 2 percent or more, up to $500 per year.
It is very important that you make sure that the card offers a hundred percent guarantee against fraud, and no liability, so you will not be responsible for the charges if your card is used for fraudulent transactions. A few credit card lenders may charge you for items purchased after your card is stolen, so be sure to watch out for this fine print.
One popular card is the Low Interest City Platinum Select. This card has a 0% introductory APR for up to one year, which increases to 10.49%, with no annual fees. However, there is some fine print for this card. The zero percent "promotional rate" will increase if you do not pay your other creditors on the dates your bills are due. If you use your card overseas, it will cost you 3 percent on all purchases. Clearly, reading the fine print is very important when signing up for a new card.
The Chase Platinum Cards are also popular, and they offer low introductory APR rates and no annual fees. The card comes with a points reward system, but the APR skyrockets to 21.99 percent after the introductory period ends. While this particular card only has a few restrictions, it is still important to read them before applying for it.
The Discover Platinum card, another popular option, offers a 0% introductory APR, with no annual fees and cash back rewards. However, again there are some restrictions, which is why it is important to read the terms and conditions. Some cards have many restrictions on their offers, while others do not. Above all, be careful that you understand the credit card company's offer, and do not trust the ads to tell you the full truth.
Today is the perfect time to find out more about chase flexible awards. Beginners and experts turn to us as their source for information debtjerk.com.
When Disputing Your Credit What Should You Never Say?
The Federal Trade Commission has an example of a good letter on their website and it may be a good idea to follow that form if you need to write a dispute letter. Writing a bad dispute letter will not stop the world from turning. It may even get you some results. But if you handle things the right way you will get results much quicker.
No Need to Go Into Detail
A credit dispute letter should be short and simple. You don't need to include a lot of personal, irrelevant information. Simply explain the error the error that you found and include a copy of your credit report with the error highlighted.
A Business Letter
Your dispute letter should be a one page business letter. It is fine to write the letter, in ink of course. However, it is always best to type a business letter so that there is no problem with legibility. The letter should be signed in ink. Never use all caps when typing a dispute letter. This is like yelling at a person in print and that is never appropriate in a business letter.
Follow The Instructions Given
The credit reporting agencies to not leave any guesswork in how to properly dispute errors on your credit report. Some errors can be disputed over the phone. For other errors you must dispute them in writing and there is a specific office that your disputes should be sent to. Credit reporting agencies provide all this information for you so that you do not have to try to figure out how to dispute an error.
If you do not follow the instructions given by the reporting agencies they will not be able to correct the error. For example if Equifax makes an error with your social security number on your report they will need a copy of your social security card or copies of your W-2 to correct that error. If you send them a dispute letter and fail to send a copy of your social security card or W-2 they will not be able to correct the error. They will send you a letter asking you to please comply with the instructions given. This is a waste of your time and theirs. It is better to follow the directions from the beginning. Also, remember that if they request documentation of any kind you should always send copies. Never send your original documents.
Looking for credit card debt assistance? Stop by the Debt Reduction Academy website, where you can sign up to receive your free 5 day e-course "Operation Money-Find: How To Find Money To Start Paying Off Your Debt This Month". Grab your copy now at http://www.debtreductionacademy.com/minicourse.php
No Need to Go Into Detail
A credit dispute letter should be short and simple. You don't need to include a lot of personal, irrelevant information. Simply explain the error the error that you found and include a copy of your credit report with the error highlighted.
A Business Letter
Your dispute letter should be a one page business letter. It is fine to write the letter, in ink of course. However, it is always best to type a business letter so that there is no problem with legibility. The letter should be signed in ink. Never use all caps when typing a dispute letter. This is like yelling at a person in print and that is never appropriate in a business letter.
Follow The Instructions Given
The credit reporting agencies to not leave any guesswork in how to properly dispute errors on your credit report. Some errors can be disputed over the phone. For other errors you must dispute them in writing and there is a specific office that your disputes should be sent to. Credit reporting agencies provide all this information for you so that you do not have to try to figure out how to dispute an error.
If you do not follow the instructions given by the reporting agencies they will not be able to correct the error. For example if Equifax makes an error with your social security number on your report they will need a copy of your social security card or copies of your W-2 to correct that error. If you send them a dispute letter and fail to send a copy of your social security card or W-2 they will not be able to correct the error. They will send you a letter asking you to please comply with the instructions given. This is a waste of your time and theirs. It is better to follow the directions from the beginning. Also, remember that if they request documentation of any kind you should always send copies. Never send your original documents.
Looking for credit card debt assistance? Stop by the Debt Reduction Academy website, where you can sign up to receive your free 5 day e-course "Operation Money-Find: How To Find Money To Start Paying Off Your Debt This Month". Grab your copy now at http://www.debtreductionacademy.com/minicourse.php
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