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Credit Cards
January 28, 2006
Credit card numbers stolen from Rhode Island state government website
4118 credit card numbers were stolen from the RI official site where consumers, among other things, can register their cars and buy permits using credit cards. The site is maintained by private third party. Chances are that the hackers whoever they are, can't do much with those numbers since the site stores normally only partial numbers, and no expiration dates. No fraudulent activity has been noticed. Still, very unsettling is the fact, that in RI Governor own words, "... individuals were not notified directly; ... public officials were not notified promptly; ... there were no safeguards or protocols in place to prompt these notifications"
Posted at 08:17 AM
January 16, 2006
Visa and MasterCard are working together to improve credit card security
In the move that deemed almost impossible before the nasty credit card fraud and industry security breaches, two biggest rivals have held several meetings on how to improve credit card security and battle fraud.
Posted at 12:46 PM
January 07, 2006
Credit card market is controlled by big three
If you carry credit card in your wallet, which you most likely do, there is a very high chance it issued by one of the three largest credit card issuers in US and entire world. With acquisition of MBNA completed, Bank of America controls staggering $140 billions in account balances, narrowly edging Chase which has $138 billions in the books. Citi is trailing with $114 billions. This is $392 billions among these three, which is almost 60% of the US total outstanding credit card balances.
Posted at 11:26 PM
December 07, 2005
Citi simplicity card, you're pre-approved
Citi Simplicity card comes with rewards, "the treatment you deserved" line, promise to help and a great low variable rate of 10.99%. At least that is the offer I got today by mail.
Since we got few people asking about this card, we are spelling few details here:
Default APR is limited at 30.74%, meaning that once you fail to make payment, you exceed the credit limit, or your check bounces, your APR starts automatically increasing up to this 30.74%. How fast is not specified.
Late fee - that was the big deal that Citi Simplicity waives it. In reality it is a bit more confusing and here I am simply citing the offer: "Late fee waived as long as you make a purchase or cash advance (balance transfers do not qualify) in the same billing period that the payment is due. Otherwise, $15 on balances up to $100; $29 on balances of $100 up to $1,000; and $39 on balances of $1,000 and over."
So it seems that the Citi Simplicity card is simply designed to get a consumer to spend more dollars in a likely vain effort to evade late fees. At some point you have to stop. And as you struggle to buy more, what will be your default APR, the one that is limited at 30.74%? After all, being late is defaulting.
Then I tried analyzing these "unwaived" late fees. If your balance is $200 and you are late, $29 is 14.5%. Too high, doesn't make sense being late with such a small balance.
$39 on $1,000 balance is only 3.9%... am I correct ... yes, .. I .. am. So what the hell, you need to carry $5,000, then your $39 comes to meager .78%, I almost feel sorry for the CitiBank ... hell, I will be always late then, such a good deal!
The fee for going over the credit is $35. Plus as I suspect again a higher APR.
That is my take on the Citi Simplicity....
Posted at 10:38 PM
December 05, 2005
Best credit card offers
We researched quite a few credit card offers from several issuers sites as well as bankrate.com, and these are the most attractive ones. The main factors, we decided, make credit card good are lack of annual fees and low fixed interest rate. If there are some perks like mileage or shopping points, it is an added bonus. We didn't care about interest charged on cash advances, that are as high as 20% in almost all cases.
Blue Ball National Bank MasterCard with fixed interest rate of 9.9%. Late fee and over the limit fee is $39. Phone is 800-441-7048*.
Malvern Federal Savings Bank MasterCard with fixed interest rate of 9.9%. Late fee and over the limit fee is $39. Phone is 610-644-9400*.
Farmers & Mechanics Bank MasterCard with fixed interest rate of 9.9%. Late fee and over the limit fee is $39. Phone is 609-386-4643*.
Pulaski Bank & Trust Co. Visa Personal Gold with fixed interest rate of 8.5%. Late fee and over the limit fee is $35 and $29 respectively. Phone is 800-980-2265*.
First-Citizens Bank & Trust Company Visa Personal Gold with fixed interest rate of 9.9%. Late fee and over the limit fee is $29. Phone is 800-763-0356*.
Wachovia Bank Visa Personal Platinum with fixed interest rate of 7.9%. Late fee and over the limit fee is $39. Phone is 800-922-4684*.
Citibank (South Dakota), NA MasterCard Personal Platinum with fixed interest rate of 7.99%. Late fee and over the limit fee is $39 and $35 respectively. Phone is 800-456-4277*.
Simmons First Natl Bank Visa Personal Platinum with fixed interest rate of 8.95%. Late fee and over the limit fee is $29. Phone is 800-636-5151*.
SunTrust Bank Visa Personal Platinum with fixed interest rate of 8.99%. Late fee and over the limit fee is $39. Phone is 305-591-6000*.
* Bad Credit Advisor provides the above for your information only. Always research any credit card offer and, please, read the fine print carefully.
Posted at 02:33 PM
October 28, 2005
Credit card fraud is growing concern in New Zealand
Credit card owners and retailers are warned against growing fraud in New Zealand. Visa, the world largest credit card company has issued the warning. While credit card fraud is relatively minor problem in New Zealand, it wise to remember about large credit card fraud occurred in US when about 40 million accounts were compromised due to security breach in CardSystems, credit card processing company several months ago.
Posted at 12:46 PM
October 22, 2005
Citibank's Simplicity new card waives late fees or does it?
City bank introduced new credit card called Citi Simplicity Card. What is so simple about it? Well, there are no annual fee and no late fees. The late fee that normally runs up to $39, is no longer applied. The only caveat, you must continue using the credit card, that simple. Does that mean that you can be late and stay that way? Only if you don't mind paying interest rates as high as 29 percent. That I guess is another form of late fees.
More on the Citibank's not that simple Simplicity credit card
Posted at 02:50 PM
October 04, 2005
Credit card debt increases
Credit card debt has increased significantly in the second quarter. Gasoline prices surge and card issuers boosting minimum payments are two main reasons. According to the American Bankers Association, the share of delinquent credit-card accounts rose to 4.81 percent during April to June from 4.76 percent in the prior three months.
Gas prices hit particularly hard those who literally live from paycheck to paycheck. Unable to cope more people become delinquent on their credit card payments.
Posted at 01:55 PM
September 27, 2005
How to Opt Out of Credit Card Offers
Do you constantly receive unsolicited pre-approved credit card offers? If you're tired of these card offers and want to stop them than you can try to use a service called "Opt-Out". It was set up by the three major credit bureaus, Experian, TransUnion, Equifax and Innovis, to stop the pre-approved credit card offers.
Do the following:
- Call 1-888-5-OPT-OUT (888-567-8688)
- Or visit www.optoutprescreen.com
- Provide some personal information
- The information will be used only to process your request
- It takes 5 days for your request to become effective
- You may choose between Opting-Out for 5 Years and Permanent Opting-Out
- Your name will be removed from credit card offer lists for five years or permanently
Opting-out basically means that the major credit bureaus will remove your name from the lists they generate for pre-approved credit offers. And so the credit card companies won't get your credit file from the bureaus.
Keep in mind though, that you may still receive offers directly from the credit card companies.
The Opt-Out Options Screen:
The Opt-Out Personal Information Screen:
Posted at 11:43 AM
September 25, 2005
Credit card companies don't have to disclose data security breaches
I bet, you are going to love this one. You own a credit card and you think that your privacy and personal information are protected. At the very least, if someone breaks into databases where credit card issuers and banks store pretty much everything about you, you would get immediately notified. Not so, according to a certain judge.
"Credit card companies don't have to notify customers their personal information has been stolen, a California Judge ruled today."
San Francisco Superior Court Judge, Mr. Richard Kramer doesn't think that a theft of the personal financial data, like the one that happened in CardSystems credit card security breach, "is an immediate threat of irreparable injury" to you or me or other consumers.
Read the entire credit card ruling story ...
Posted at 04:16 PM
September 24, 2005
Credit card payment processing company is a takeover target
Remember CardSystems Solutions Inc, the credit card transaction processing company that stunned consumers several weeks ago with the news that their names and accounts numbers but not addresses or Social Security numbers were likely compromised.
CyberSource Corp. of Mountain View, California, gave an unbinding offer to buy CardSystems. The big question mark is if Visa and American Express that ditched CardsSystems will resume dealing with it as part of CyberSource Corp.
Posted at 10:33 AM
September 07, 2005
Congressman Bernie Sanders introduces consumer protection legislation
The legislation is going after some of the worst anti consumer credit card practices, namely bait and switch tactics, "that raise consumers’ interest rates for events wholly unrelated to the consumer’s credit card account".
Mr. Sanders, a Vermont's Independent also stated that "his bill would also require credit card companies to provide real notice to consumers before raising interest rates or charging fees and would prohibit credit card issuers from raising interest rates on pre-existing balances for “fixed rate” cards."
Posted at 09:05 PM
Credit card companies ripping consumers off?
Good old England or rather Scotland thinks that credit card issuing banks charge too much in various fees. The rough amount of excessive billing is at least £100 million. That is close to $183,500,000 in today's exchange rates. The high end is about twice as much. The credit cards in question are those of MasterCard. Office of Fair Trading, which is British government consumer watch dog group, has found that MasterCard's transactions from March of 2000 to November of 2004 overcharged consumers to the point that it looked like an extra taxation.
More in Scotsman.com
Posted at 07:47 PM
August 22, 2005
Great credit card deals
There are many credit card deals around the world today. Competition among credit card issuers create many opportunities for consumers. You have to shop around and negotiate, yes, negotiate with the banks, no less. If you get a call or letter with an offer to switch, or transfer a balance, try to squeeze from credit card company as much as you can.
One client transferred $12,000 from his car loan to Citibank credit card. Initial offer of 6 months with 3.9 percent interest was extended to 9 months at 0.9 percent. Citibank likely checked credit report and salary, calculated debt ratio and decided that this person would have to stay with them well beyond 9 months. Then the interest rate is going to be around 15%. It is up to consumer of course, to prove Citibank wrong. See more in debt reduction.
You can go for award points, miles, cash rebates, whatever. As competition expands, more opportunities for consumers will be available. Check for example how some clever Aussies are exploiting the war among credit card rivals.
Posted at 08:11 PM
August 13, 2005
Credit card issuers hike interest rates when they sense bad credit
According to Billings Gazette, big brother is constantly watching you. More precisely, credit card issuers are monitoring your credit report looking for every reason to raise your interest rate.
Basically, banks and credit card companies love to see you at the point, when even 20 - 25% interest rate won't force you to leave them. Why? Because at that point you wouldn't be able to get credit at a lower rate or at any rate. So if they see you missed your car payment or you carry high balance or even better, few high balances, they can take you with bare hands.
The annual rates can supposedly go to 35%. And because they are retroactive, meaning new rates can be applied to past balances, even if you have $10,000 at 6% today, you may be paying 15% tomorrow.
Here are two quotes from consumer groups:
"One seemingly small mistake - that most people don't think of as anything - can have ramifications far beyond what seems legal to most people," said Linda Sherry, Consumer Action's national priorities director. "But it is legal."
Notes Ed Mierzwinski, consumer director for the U.S. Public Interest Research Group, "The law allows credit card companies to change your rates and terms at any time, for any reason."
Posted at 04:50 PM
New dangerous credit card fraud
This is really bad. The scam artists call your home posing as fraud investigators from Visa, Discover or MasterCard. They tell you that you are entitled to a refund for being overcharged or whatever. They already have your credit card number. Likely, they picked thru your garbage one day just before GROOT or Waste Management folks. They may even be working for a legitimate garbage removal business ... though we aren't implying that they are. The bottom line is once they have your credit card statement with the account number and all the stuff your bought last month, it's easy to convince you that they are legit.
They find your phone in the White Pages and ... the rest is easy. Read the whole article at Komo News, buy a shredder and don't talk to a stranger.
Posted at 04:30 PM
August 05, 2005
Credit card minimum payment is about to rise
According to the WTLX, five major credit card issuers have already complied with the latest requirement from the Office of Comptroller of Currency which asked them to raise the minimum monthly payment.
It is good and bad. Good is that it may curb some outrageous spending habits and make people think twice before pulling their credit cards with the ease that has so many sinking in debt. In few more cases the higher payment hopefully will be high enough to make a little dent in the principal of credit card debt. The current minimum payment of 2% is often not enough to pay the monthly interest charges.
Bad is that for most people, it will likely only mean higher minimum monthly payments, that's it. Combine it with higher penalties for being late or going over the balance, and some folks can be in for harsher times.
Posted at 12:22 PM
August 02, 2005
Credit card companies raise penalty fees
If you are about to be late on your credit card payment or go over the limit, prepare to pay higher fines.
Advocacy group Consumer Action reports that being late with monthly payment, exceeding your credit limit and having payment check bounced are becoming more costly. Penalties increased by around 3%, from 22% a year ago to nearly 25%.
Continue reading at All Headline News.
Posted at 12:14 AM
July 26, 2005
Credit card processor might be forced to shutdown
Fourty million credit card related records containing personal information were stolen when CardSystems got hacked in June.
MasterCard reported that 13.9 million credit cards were compromised. Visa USA Inc. confirmed 22 million credit cards.
Last week Visa and American Express decided to find another credit card processing company.
As Vnunet reports, testifying before US Congress, CardSystems chief executive John Perry said last week that the firm may have to close for good unless the two credit card companies reconsider.
MasterCard meanwhile gave CardSystems until August 31st to show compliance with its security requirements.
Posted at 03:56 PM
Credit card meters introduced in Sacramento
Credit card technology is utilized in new parking meters in downtown Sacramento. So reports KCRA. New devices are solar-powered and installed close to Cesar Chavez Park and City Hall. Sacramento is hoping for a 25 percent increase in profits from the new parking meters.
Posted at 03:29 PM
July 13, 2005
Can credit cards lead to a bankruptcy?
Credit cards often are the culprits but also can be the last resort for the folks who lost their jobs or ran unexpected medical bills too high. This credit card article is an interesting one.
We see unfortunately too many people who simply spend all their credit on things other than the simple necessities. Which is fine as long as you can handle the bill 30 days later.
Posted at 12:37 AM
July 12, 2005
Good news for credit card balance carriers
If you are one of those who carry balances on your credit cards, last 7 days were decent enough for you since the credit card average annual percentage rate hasn't gone up. It has been flat for at least platinum credit cards.
Posted at 11:20 PM
July 08, 2005
Credit Cards may hike minimum payment
There are some not so good news that may be coming from the Office of the Comptroller of the Currency (OCC).
That is according to Freedom Financial Network as published by Emedia Wire
The Comptroller Office doesn't want banks and credit card issuers to carry too much of a bad debt. That is perfectly understandable. We know what happened with Japanese banks and consequently with economy stagnation there because, not in small part, of the bad loans these banks wrote, mostly to corporations though.
So minimum payments may increase from 2 percent of the balance to 3 percent or 4 percent. The payment can go up as much as 2 times according to Bradford Stroh, founder and co-CEO of Freedom Financial Network, LLC - “The payments on a $20,000 balance could jump from $400 a month to $600 or $800 a month,” Mr. Stroh reports.
Mr. Stroh also adds that with no Bankruptcy protection because of the recent law change, consumers will have to "... seek other alternatives, they’ll find that debt resolution offers a much better option than bankruptcy, with similar (or better) outcomes and no bankruptcy judgment on their records.”
We agree with this assessment and encourage you reading the following Debt Relief and Become Debt Free pages.
Posted at 12:37 PM
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Bad Credit Advisor online magazine provides daily news about credit, debt and mortgage. We aren't paid to mention specific deals or products. We cover what we think is interesting as industry professionals ourselves.
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