3 New Credit Card Technologies are Ready to be Rolled Out

Credit card companies are constantly trying to come up with new ways to fight credit card fraud and identity theft.  Dynamics Technology has just announced 3 new credit card technologies that are ready to be rolled out, just in time for the holidays - of course. With any luck the credit card companies signing up to use this technology for their cards will be able to finally find a way to keep would be credit card thieves from being able to skim your number, duplicate your card, and steal your identity. 

According to Dynamics Inc., your credit card will remain the same size as before, offer more credit card security than previous cards, and offer more user functions.  The Dynamic Credit Card™, uses a new Card 2.0® platform technology, promising the ability to have multi-accounts on one card, hidden numbers, and new redemption abilities.  The 3 new Card 2.0 applications include:

• MultiAccount™ - This card will have 2 buttons on the face of the card allowing you to select which account you wish to use by using a light source to highlight the accounts.  By selecting which account you wish to use the account information will be written to the electronic stripe on your card.
• Hidden™ - This card will have 5 buttons allowing the card to hide account information.  The card will require a code to be turned on, reveal hidden numbers, and populate the magnetic strip.  The card automatically turns off and erases information after a period of time, rendering it useless if lost or stolen.
• Redemption™ - This card has a single account number but includes 2 buttons with associated light sources, which allows you to decide whether you wish to use credit or redeem points associated with your card.

Citibank has announced they will be one of the first credit card companies to use what they are calling the Citi 2G card, using Dynamics 2.0 technology.  This card will be a multi-account card, display most of the account number but requires a PIN to disclose the rest of the card info, and offers the option to redeem points at the point of sale, instead of use credit.  Citi is coining this card it's second generation credit card. 

With a number of developers working diligently to come up with a better more secure way than to use credit cards these credit card technology developers may have some competition to look out for.  Will credit cards ever become extinct, or non-existent?  Will your cell phone become your newest method of payment?  Who knows? Most of us never thought we would see the demise of a travel agent, a bank teller, the mail system, or retail stores but with the amazing technology available today all of these industries are struggling to stay alive.  So, who knows what the future will bring?  We know that November is going to bring us some interesting new credit card options.  Let's hope they can provide the security and opportunities they say they can.

0% Credit Card Offers??

Are 0% credit card offers back?  A couple years ago credit card companies began to pull all of their offers on 0% balance transfers, raising their interest rates, and becoming more particular about who they offered credit cards to.  Has that changed?  Many credit card companies are now starting to offer 0% credit card balance offers for 12 months, 15 months, 18 months, and some up to 21 months.  Some have even dropped the transfer fee from 5% to as little as 3%.

So, what is the catch?  These offers used to be offered to almost anyone, whether they had good credit or not, and often even mailed out in bulk without a lot of  prequalifiers.  However, now the credit card companies are screening their potential customers a lot closer.  Chances are you will not see this kind of offer in the mail, you are probably going to have to search it out yourself.  And even if you find them, you may not qualify.  Many credit companies are raising the minimum FICO score from 720 to 750, offering no breaks on the 3-5% balance transfer fees (with no cap), and once the 0% APR intro rate expires the interest rates may go up to 20% or higher. 

These 0% APR credit card offers can be very enticing, but they are not for everyone.  If you are considering seeking out one of these cards here are a few tips to keep in mind:

• Know your credit score - If your FICO score is suffering, chances are you will not be approved, and your credit will get dinged when the credit card companies start running credit checks. 
• Read the fine print - Watch for misleading advertising with lead in words like "as low as", "up to", "starting at" etc...they often end with "for qualified" and "on approved".  Find out what YOU qualify for before signing.
• Calculate savings - Factor in all aspects of the offer including amount you are borrowing, length of intro rate, transfer fees, and interest rate after intro rate.  Then compare to your current rate over same amount of time.
• Consider your level of debt - If you are over your head in credit card debt to the point you will not be able to pay off the credit card within the 0% APR introductory period you may want to reconsider. 
• Compare your current card - Speak with your current financial institution as they may have unadvertised offers, or be willing to make you a better offer if they know you are considering cancelling their card.

The greatest tip of all - PAY OFF YOUR DEBT - 0% APR intro credit card offers can be a fantastic way to get rid of your credit card debt.  If you set a goal to pay off your debt within the introductory period and manage your money wisely a 0% intro card may be a great solution to your debt.  But, if you are looking to use this time to rack up more credit card debt just because it is a 0% APR then you may want to reconsider whether these offers would be the best solution for you. 

If you know your credit score is too low, debt is too high, or if you are trying to rebuild your credit there here are a few other solutions you may wish to check in to:

• Prepaid Credit Cards - These cards help you manage your money while re-building your credit. Good alternative to revolving credit when you just must have a card, like when renting a car.
• Student Credit Cards - Many students do not have bad credit they just don't have enough good credit to qualify for certain offers.
• Rebate or Reward Cards - If you have low credit card debt and pay your card off regularly why not benefit from it, and get something in return?

Find the Best Credit Card for You

There are a number of things to consider when you looking for the best credit card for you. Some things to consider include: age, past credit history, spending habits, and the type of purchases you make the most. You may not have thought about all those things or may not understand why they affect which credit card will be the best credit card for you. You were probably thinking, I just want a credit card with no annual fee and really low interest. Let us explain a little more about why you may want to consider these other factors as well.

If you are very young, have no real credit history, and have never had a credit card before, finding a really low interest rate card with no annual fee may not be very easy. However, if you start looking for student credit cards, you may be able to find a great deal. Student credit cards are a great way to start building a credit history and a high credit score. Just remember, paying your bill on time and not carrying a high balance are essential in helping build a high credit score as well. Most student credit cards will offer reward points that you can earn on almost anything you buy so be sure and look around for a card that has the best rewards, that are easy to claim.

Past credit history is important because the type of cards you will be approved for will depend on if you have no credit history, a bad credit history, an excellent credit history, or if you fall somewhere in between. If you have NO credit history or a BAD credit history, you may want to look at a prepaid credit card. A prepaid credit card is much like a debit card. Depending on the card, you can have you paycheck automatically loaded onto the card and then use the card just like a debit card. Most prepaid credit cards do not require any credit check. This is a great card if you are worried about spending more money than you make because you can only spend as much as you have on the card.

If you have fair to good credit you will probably have to pay a little higher interest rate and may have an annual fee. Always look around. Try to find a card that offers rewards at retailers where you shop a lot or on the type of merchandise you typically purchase with your credit card. Work hard to show your financial responsibility, i.e. don't max out all your cards and pay your bills on time every month. After a few months of maintaining a low balance and paying your bill on time, call your credit card company and ask if they will lower your interest rate. If they can see you are showing financial responsibility, most companies will reward your efforts, if you ask.

If you have excellent credit, look around for the best deal. There are a ton of reward cards out there so look for one that will reward you with things you will use: air miles, cash back, gas rewards, or whatever you will use. Check around for the best credit card deals and then apply for the ones that will best fit your needs. With an excellent credit history, you don't want to settle for the first offer that comes to you in the mail. Be pro-active and find the best deal for your needs!!

Credit Card Fees and Bank Fees

We have talked about credit card fees before, but with the Credit CARD Act of 2009 and all the changes that have taken place over the last year, we figured it is time to take another look. The CARD (Credit Card Accountability, Responsibility and Disclosure) Act was signed into law by President Barack Obama in May 2009. Here is a quick overview of some of the most important parts of the bill:

• No more random interest hikes
• No more universal default rate increases
• No more contract changes
• No more double cycle billing
• No more fees on interest only
• No more due date tricks
• No more breaking up payments

So that is a lot of "no more" and it all sounds pretty good when you put it that way. No more taking advantage of the customer that is doing their best to pay what they can as soon as possible. No more sneaky tricks that you don't find out about until you get your monthly statement, only to be told that it isn't a trick and that it is in the credit card disclosure you received when you applied for the credit card (you know that 10 page booklet in size 6 font, written in legal jargon that no one understands). The same idea is coming forth with the changes to banking regulations, most likely you have been asked, or received a notice from your bank, about overdraft protection. This is an effort to make sure that banks are telling customers, up front, what they will be charged if they account is overdrawn. They aren't necessarily lowering what they charge, they are just telling you before hand what it will be.

Hopefully what these laws will do is bring awareness to the consumer about what fees they are likely to be charged in any given number of circumstances so that they can avoid, or at the very least know ahead of time, what their financial choices are going to get them in the end. There are some credit card fees that may be worth paying:

• Balance Transfer Fees - you have probably received an offer at some point for 0% balance transfer for 12-18 months. These always come with a balance transfer fee (generally between 3-5% of the total balance you transfer) but if it keeps you from paying anywhere from 6-24% interest that you would have paid over the same amount of time, you will still save a lot of money!
• Annual Credit Card Fees - you may wonder why this is a good idea when there are so many cards offered with no annual fee. Well, it depends on how you use your credit card. Generally credit cards that have an annual fee offer some pretty lofty awards. So research the card, find out what they are offering and if you will gain more than it costs you in annual fees. If you gain more than you pay, it's a good deal

We don't really see any benefits to paying bank fees, but they may just be one of those unnecessary evils. Just make sure you are aware of what fees your bank charges. Free checking accounts are getting harder and harder to find. Shop around to different banks to see who has the least fees and then find the one that will best fit into your monthly financial situation. You can avoid most bank fees by simply maintaining a set minimum balance in your account. This may take a little planning and discipline, but the amount of money you save in fees will make it well worth the effort.

New Laws Regarding College Credit Cards

Graduating from high school and starting college? What an exciting and scary milestone to cross! For most, this is the first real experience with becoming an adult. Most new college students leave their parents home, move to a new city, live in their own apartment for the first time, and become completely responsible for all the day-to-day responsibilities that come with living on your own. But, perhaps the most important of these responsibilities is: financial responsibility. College comes with a very hefty price tag. Not only do you have tuition, books, and fees but many colleges offer room and board plans as well, which can add an additional several thousand dollars a semester to your bill.

With the prices of college tuition rising nearly two or three times the rate of inflation in recent decades, college education costs are more than most typical middle-class families can save for, even using financial aid options available. So when new college students show up on campus and there are a number of credit card companies there offering a free gift when you apply for a credit card, students are being sucked in, in masses. Without any real understanding of debt and financing charges, and without any easy way to pay for their schooling, students quickly "max out" their new credit cards by charging everything they can. Before they know it they have hundreds or thousands of dollars of debt, with little or no income to even start paying it off. Not only that, but they are being charged outrageous interest rates because they have no credit card history, or other qualifying factors to get them cheaper interest rates.

Fortunately, there are some changes on the horizon to help. Starting in February, rules for those under the age of 21 applying for a credit card will change. Let's take a look at some of the changes:

1. Getting a credit card will require a co-signer or proof of income
2. Financial classes will be required upon college entrance
3. Credit card companies will no longer be able to give "gift" incentives on campus

While this is a good start to helping new college students make better choices and decisions regarding college credit cards, it is only a beginning. Some college students argue that financial classes should start in high school to help them understand debt and give them more financial information before they are in a desperate situation. Learning about how to choose a student credit card, before they are offered, is important as well as information on how to manage their credit card balance before it becomes unmanageable.

Online Credit Report for Your Annual Credit Report

Looking at your annual credit report is one of the best ways to keep on top of your financial reputation. You have probably seen numerous commercials for your free credit report online. The online credit report is one of the best ways to keep on top of your financial reports. Why do you need to view your credit report on an annual basis? It is important to know what is on your credit report so that you are aware of any changes that may not have been authorised by you, this can be a great help in preventing identity theft. You should be very familiar with the amount of debt you have and what open credit accounts you have, however; if you have a credit card that you don't use often or that you didn't activate, you may not remember that it is still an open account. By viewing your credit report yearly you will always know exactly what credit accounts are in your name.

Most importantly your credit report details your financial responsibility to anyone that may be considering loaning you money or offering you any type of service that requires a financial obligation from you. Some of these may include, an employer, insurance agent, lender, creditors, utility companies, landlords etc. If you aren't even aware of what is on your personal credit report, you will have no idea why you are repeatedly being turned down for a loan, apartment, or other important financial accounts.

Your credit report includes a number of details including:

• Full name (and known aliases and variations)
• Social Security Number
• Spouse name and information
• Current address
• Previous addresses
• Employer
• Credit and loan accounts
• Delinquent billing accounts (utilities, medical, etc)
• Payment information on all your accounts (late payments, missed payments, etc.)
• Bankruptcies
• Tax liens
• Financial judgments against you

The good news is that any negative information on your credit report does have an expiration date so you don't have to worry that bad habits of the past are going to haunt you forever. Most negative credit history will drop off your credit report after 7 years. While this may seem like a really long time, you can also help offset the negative effects more quickly by establishing good credit and good financial habits. All of your good credit does not have an expiration date, so the more good credit you can establish, the better it will be for your financial future. The higher your credit score, the more likely it is for you to be approved for the things you have to buy on credit, and the better deals you will get on such purchases.

Best Credit Card for Bad Credit

For starters, if you already have bad credit then it's fairly safe to say you know what type of things can have a negative influence on your personal credit report. But, just in case you are not aware of what thing effect your credit score, here are a few tips:

• Avoid filling out credit applications for credit cards you do not NEED.
• DO NOT shop banks for a loan, each time you apply, your credit gets dinged.
• Do NOT fill out store credit card applications for a free gift, or to save 10% on a $100 purchase.
• Avoid having too many credit cards with open balances.
• If possible, avoid bankruptcy, foreclosures, or a short sale.
• If medical bills are an issue - see what state assistance may be available.
• If bill payments are more than you can afford, make arrangements for payments less than the minimum instead of paying nothing at all.
• Do not be late on your credit card payments.

And here are a few tips on what you should do to improve your bad credit:

• Have only one or two credit cards.
• Use credit card only for emergencies.
• Pay off credit card monthly.
• ALWAYS make more than the minimum payment.
• Unless is pays off in the long run, avoid balance transfers.

Now, if you are aware of how to avoid having further bad credit issues and ways to improve your credit score. And, are looking for the best credit card for bad credit then you should look at getting either a secured credit card or a pre-paid credit card. With these cards you may expect:

Secured Credit Cards -

• A required deposit
• Higher interest rates
• Application fees
• Annual Fees
• Over the limit fees

Pre-paid Credit Cards -

• Pre-payment of funds
• Fraud or loss protection may not apply
• No credit checks
• No age limits
• No debt
• No interest rate
• Credit card fees - enrollment fees, maintenance fees, and non-use fees
• Required minimum balance

The good news is, once you have re-established good credit by showing that you are a responsible credit card holder you will be in a better position to get much better offers from low interest credit card companies. There is no simple quick solution to bad credit issues - it takes time and patience to rebuild your credit. What may take you a very short period of time to destory may take years to fix. Just be patient and diligent in your goals to improve your credit and eventually you will get there.