With the holidays just around the corner, many people are making their lists and checking them twice. One list that should not be neglected this shopping season is a list of the best credit cards for you, depending on what type of shopper you happen to be. The image below will help you decide how to get the most out of your budget and save money just by selecting the right way to pay for your purchases.
Statistics show that men and women handle money differently. While there are exceptions to every rule, men generally are better prepared for retirement, are more willing to put money into savings, pay off credit card balances in full and are more educated about investing. Men are also more prepared for unemployment, which is fortunate because there are more unemployed men than women in the U.S. and the growth of the unemployment rate for men is currently outpacing the unemployment rate for women.
Most have heard the saying that no one takes care of a rental car like they take care of their own. Why not floor the gas pedal or track sand into the car - the reasoning goes - if you’ll never see it again after this week? In many ways, this is a perfect analogy to government waste. No matter which party is in power, spending other people’s money rarely compels one to be as prudent as if they were spending their own. Combine this with the typical politician’s time horizon (the next election) and it’s easy to see why so many government projects and initiatives have been swallowed by waste over the years. Here are 12 of the most outrageous examples.
This is a guest post from Mark Brown, a personal finance blogger who writes The Credit Letter for CreditCardCompare.com.au.
It’s everyone’s worst nightmare. You come back from a wonderful holiday and get your first credit card bill. Lo and behold there are charges worth hundreds or thousands of pounds that you never made on your statement. What’s gone wrong? Chances are you’ve fallen victim to a particular type of fraud called credit card skimming.
What is credit card skimming? It’s a growing form of credit card fraud, and it goes like this. You use your credit card to make a purchase in a shop or pay for a restaurant meal, your card disappears out of sight for a moment, where it is passed through a small portable reader which copies the data off the magnetic strip on your card. One swipe is all it takes for your account number, name and other relevant details to be copied. Either this data is used to make online purchases or the thieves create a clone of your card which can then be used like any normal credit card.
The other common way that cards are skimmed is with a small dummy facing installed over an ATM machine slot (which is usually indistinguishable from the real thing) which reads your card details as you insert your card. Often this is used in conjunction with a tiny hidden camera to capture your PIN. Scary, huh?
Popular tourist destinations have attracted these fraudsters in droves, but the following 7 cities have proved to be hotbeds of credit card skimming activity.
No one can argue that current economic times are tough. But recent survey result shows that times can be tougher for fresh college graduates. According to a recent survey from the National Association of Colleges and Employers, just about 20 percent of 2009 graduates who applied for a job actually have one; accompany this with the report from Sallie Mae that an average student is graduating with over $3,000 in credit card debt — and you’ll have the perfect recipe for financial disaster.
With an exciting and attention grabbing name as titled above, how can you ignore the Senate’s Credit Card Accountability Responsibility and Disclosure Act of 2009? (Also known as The Credit C.A.R.D Act of 2009. I know, super original).
“But wait, BillShrink Guy,” you ask, “Didn’t the Fed just pass new credit card regulation last year? And didn’t the House just pass a credit card Bill of Rights last month? What’s with all these different laws and regulations? My head hurts, and I just want my credit card to be nice to me.”
I’m glad you asked that question, and like you, I just want my credit card to play nice too.
The Credit CARD Act of 2009 brings stronger protection to the table for all of us. Here’s a clear-cut list of additional changes the just-passed Senate bill provides:
Interest rate increase protection. A card’s Interest rate can no longer be raised on a cardholder unless the account is 60 days late. The increased rate will have to be restored to the previous level if a cardholder pays on time for six months. An interest rate cannot be increased within the first 12 months, and promotional rates must be a minimum of 6 months.
Advance notice of term changes. Credit card companies will now have to notify customers with a 45 days advance notice of any significant changes to the terms of their credit card, this now includes changes to benefits such as reward structures.
Limiting credit cards to younger adults. The legislation bans credit cards for people under the age of 21 unless they have an adult co-signer or show proof that they have the means to repay the debt. College students will be required to receive permission from parents or guardians to increase credit limit on joint accounts they hold with those adults.
Reduction on gift card hidden fees. Gift cards are now required to remain active for at least five years from the day of activation. Dormancy or inactivity fees on gift cards can no longer be imposed unless there has been no activity in a 12-month period. The dormancy fee has to be disclosed clearly to gift card buyers.
Proper notification of bill and processing of payments. Credit card companies must send your bill out no later than 21 days before the due date. Payment must be credited as on-time if payment is received by 5 P.M. on the due date.
The Senate’s Credit CARD Act of 2009 will now most likely be consolidated along with the House’s Credit Cardholder’s Bill of Rights Act of 2009 and be signed into law by President Obama before the Memorial Day congressional recess. If there’s any major changes to the credit card reform in the near future, you can be sure a detailed update will appear on your friendly neighorhood money blog, Shrinkage is Good!
Left: Credit Card Companies. Right: You.
Is your credit card still giving you the occasional surprising right-hook?
A couple of months ago, the Federal Reserve Board, the Office of Thrift Supervision and the National Credit Union passed a credit cardholders “Bill of Rights” that’s aimed to further protect you from unfair practices by credit card companies. These rules are expected to come into full effect in 2010, and although credit card companies haven’t been in a rush to hop on the early adoption bandwagon, some of the new regulations are slowly being implemented.
The Federal Reserve Board, the Office of Thrift Supervision and the National Credit Union Administration will vote tomorrow on a set of new credit card regulation reform, which will dramatically change the relationship between you, the cardholder, and your credit card issuers. These new credit card regulation reforms are expected to take effect by 2010, and many of these new changes will substantially benefit you.
If you’re not keen on reading an entire legislative bill to learn how the changes affect you, have no fear, Shrinkage is Good has broken down some of the most important changes for you so that you can understand your new rights and how they affect you.
1. No more universal default
Universal default allows card issuers to raise interest rates on customers’ base on the customer’s behavior on another unrelated account. For example, if you’ve missed a payment on your utility bill or have your credit score lowered, a card issuer may increase the interest rates on your account. This policy and practice would no longer be permitted.
2. Sufficient time to pay bill
Credit card holders will be provided with reasonable time to pay their bills. Card companies are now required to mail billing statements 25 calendar days before due dates, eliminating the current minimum notification of 14 calendar days.
3. Protection against arbitrary rate increases
Credit card companies can no longer arbitrarily change the terms of their contracts with a credit card holder, thus banning the practice of “any-time, any-reason re-pricing.” If a card holder is subjected to interest rate hikes due to legitimate reasons, card holders now have the right to cancel their card and pay off the remaining balance with existing interest rates and terms.
4. Proper and timely notification of rate increases
Credit card companies are now required to provide cardholders with 45 day notice of any interest rate increase, and card holders will now have 3 billing cycles after the rate increase to say no to these new terms.
5. Fair allocation of payments
Credit card companies will now fairly allocate payments on balances with different interest rates. For example, you may have a low balance transfer rate on your account with a higher interest rate for purchases. Current practice has credit card companies applying your payment to the lowest interest rate transaction first, thereby extending the time for you to pay off higher interest rate balances.
6. Right to set limits on credit
Credit card companies will have to provide consumers the option to have a fixed credit limit that cannot be exceeded. This also prevents card companies from charging over-the-limit fees on a cardholder with a fixed credit limit.
7. No more double-cycle billing
Double-cycle billing allows for credit card companies to compute finance charges base on purchases made in current billing cycle rather than previous billing cycle. This policy hurts consumers who pay off their balances in full in one statement period but not the next. Credit card companies will now be prohibited from using this double-cycle billing practice.
8. Protection from due date gimmicks
Payments made by a cardholder before 5 P.M. EST on the due dates are now considered timely. Credit card companies are also required to provide on every statement, a phone and interest address that a card holder can easily access to pay off balances. Consumers will now also have the ability to present proof of bill payment within 7 days of due date to waive any late fees imposed by a credit card company.
So which current credit cards are already compliant with these new rules? Check out BillShrink’s Credit Cards Bill of Rights to see which card issuers are already complying with which set of rules. Plus, use our tool to easily find out if your current credit card is compliant with these new rules.
Keep yourself updated on the latest money news and tips. Subscribe to Shrinkage is Good today and we’ll be sure to keep you well stocked on money saving advices.
top photo credit: Joe Hatfield
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