Archive for the ‘Credit card’ Category

Credit Card – Things you should know – Final Part

December 7th, 2008 Vijaianand

I been talking about one of my favorite topic for the past 4-5 weeks or so with some deviation to other topic as and when needed. We covered IDENTITY THEFT in a large extent from top to bottom starting out from, what to do when your cheque book is lost, what are the way scammers can steal your identity over the Internet, how can you protect your identity and finally moved on to Credit card arena. In Credit card, I mentioned why credit card rules and how to get your first credit card taking different people into perspective in my last post.

This post, I am going to talk about how to manage your credit card, how to handle it safely, what are the ways identity can be stolen in real world and What to do when credit card is stolen.


I got the credit card, now what?



Wait a sec, not so fast!! I am might sound too PRO to Credit cards but only if you have taken these safety steps. As I mentioned earlier, Credit card is a real tricky instrument. If you know how to handle or use it, it helps you a lot but if you don’t it has tendency to put you in debt.

1. Whether you are a student or smart adult, you better make up your mind and plan before start using your first ever credit card. You should plan on how to spend and how are you going to make payment to your charges. It is as simple as it.

2. If you are already an experienced credit card user, I don’t have to tell you anything except be cautious at this credit crisis time. Many banks these days are changing their agreement and how they operate their credit card business. They are jacking up on their ATM charges, so try not to take money out using your credit card. Just use for purchases.

3. Be wary and very careful not to go beyond your credit limits. You might end up paying hefty charges which is the norm but it might be more expensive these hard days as many banks have increased their charges.

4. Check the fine prints which comes to your mail box from credit companies all the time. Don’t throw it out or tear them off. Read them careful if you are really using the credit cards.

Precautionary Measures

Precaution is always better than cure. You can avoid all your worries if you can just take a little of precautionary measure before something bad happens.

1. Don’t carry too many credit cards in your wallet to show off. If you end up losing your wallet, your identity is at the mercy of beholder(thief).

2.Take a Wallet Blueprint – Write down all the credit card numbers and its corresponding 1-800 numbers to call when its lost. Try to write down all other things you carry in the wallet to help out in rare situation when it is lost.

3. Always keep upto date on your credit card statements by signing in online as many banks offer it as free service. You never know bad times hit, these thieves are very smart. So checking often helps you to be act fast instead of waiting for a monthly statement to arrive.

4. Don’t use every card for online purchase. Analyst suggest to keep one card designated for online purchase, that way you don’t have to deal with too many problems at the same time.

5. Check your credit report regularly using credit report services or from the free credit report website http://www.annualcreditreports.com/

6. Opt-out of any credit card offers which is a pain in the first place but it also helps to see whether you are getting a good balance transfer offer. So its upto you whether you want to go thru the pain or not.

7. Shred your mails instead of just throwing them. If you don’t have a shredder, try to atleast tear them tiny bits and pieces.

Thieves Tricky ways

Identity theft is the number one crime in American and even in entire world. It is mainly caused by credit cards. Bad days never knock your door asking for your permission to show up in your life. It just comes and you won’t know when and which avatar it shocks to wet your pants off. These are some common ways thieves steal your identity,

1. Stealing your Wallet with SSN Card and Credit card from your car
2. Cheque books from Mails or Mail box
3. Bills and documents from Trash
4. Scam emails
5. Emails from Classified website which you posted to sell or buy
6. Emails from Phisher pretending like a Bank or mortgage company
7. Calling Kids and offering freebies to gather information
8. Phone call from Banks for SSN info
9. ATM Machines
10. Film Rental Machines
11. Online shopping stores
12. Changing rooms in Mall
13. Parking lots – Underneath your car
14. Pickpocket in Malls by distracting you and so much more.

My Credit Card is Stolen, What to do now?

If it just your credit card stolen, don’t panic. Call your credit card company and report the lost or stolen credit.

If you lost your wallet which had SSN card and everything,
1. Call the local sherrif department or police station and file a compliant.
2. Call all the credit card companies to intimate that your card is stolen and ask them to deactivate it.
3. Call the credit card bureaus and put a freeze on your credit report
4. Put a fraud alert with Credit Bureau as well. Please do everything in writing and send mails via certified mail.

To make your life easier, there are lot of Identity Protection services like Lifelock.com which can help you to stop your identity theft and act on your behalf to stop the leak.

That concludes the series of blogs about IDENTITY THEFT and CREDIT CARDS. I hope it enlightened you all with some useful information and ways you can start using to protect your identity. Please don’t hesitate to add comments and send me an email if you have any questions.

Happy Holidays to all of you!!!

Posted in Credit card, Finance, Financial Literacy, Saving Tags: , No Comments »
Read More »

Credit Card – Things you should know

December 2nd, 2008 Vijaianand

Last week was a busy week at my work as I was working extra hours to get things done. Obviously, work takes priority as pays the bills. For that reason, I had to miss my last week post.



Before that, I posted a blog about CITIBANK which was needed to shed some light on the issue. Let me switch gears to get back to my favorite which is left over topic, IDENTIFY THEFT&CREDIT CARDS. I talked about why credit is preferred by many people and talked about self searching yourself to see whether you need one or not. This post I am going to cover some things on how to get a credit card taking different individuals role from different walks of life.



Getting your first Credit Card



First of all, once you decid to get a card after finding its ease of use and to avoid the burden of carrying cash all around. To tell you frankly, it is not that easy to get one these days. It was easy a year ago but not now as companies are going back to basics looking out for credit history to offer a card. You would have to have good credit history to get a credit card with good limits. But Credit history only gets built once you start borrowing and paying back your debts from the lender whether its credit card company and bank. Its Catch 22!!



Normally, you are eligible to carry a credit card after 18 years. So College students are very attractive customers for the credit card companies.


If you are a student, you are sure to be haunted by credit card companies as they are so willing to offer your student loans. That’s one way to start out credit history and many people do that way. Many kids have good bank history even before they start their college because of their well planned parents who open accounts and educated their kids on money and saving ideas. I strongly recommend parents to educate their kids early and give a kick start to their financial life.



Let say you didn’t go to college and your parents didn’t help you out, then it gets tough. You have to start it all out from scratch. Luckily you found a job and earning reasonable income. You can open a bank account and get your earning flow through the bank. This way you would have accomplished a good bank history. Once you have the bank history, you can apply for a credit card with low credit limit as many banks offer these days and start building your credit history.



Another section of consumer are the Immigrants(like me when I came first) who are here to work and your situation is similar to the above. They don’t have any history of any type as they don’t even have SSN. They have to start it all out and it is tough so most of the time they dependent on their company offerings until they accomplish some history.



Without credit history, it makes living in America a tough ordeal. I been there and learnt lot of lessons. You cannot buy a car, you cannot get a good place to live and list goes endless. You end up depending on their big brothers/co workers who came before them for everything. Once they good bank history, try banks low credit limit cards many banks offer binding to your savings/checking account. You can start with those credit cards to get your history and slowly you will get into to good books of credit card companies.

Once you got into the good books of credit card companies with good credit history and credit score, then you will start getting offers at your door steps and they won’t stop until you die.


Things to know in advance


1. If you have a good credit history, attractive offers will sure to show up for you even in bad times like this one. Credit card companies/banks need borrowers to borrow money so they can do business and make money in interests. But be wary of their offers. Its not all the same.


Every credit card is different and they have similar rules but different mechanism to attract you to getting the card. So read the offer carefuly before signing up.

2. I strongly recommend you to check whether your credit card issuing bank offer Fraud Alerts for free or might be able to sign for little cost. This alert system come in handy to give signals when peculiar activity happens in your card that may be a hacker who got your card number or thief stole your card.

3. Check all the fine prints like fees or charges on withdrawals, Interest rates for Balance Transfer/Purchases, fees on Balance transfers. Some card offers 0% interest on purchases which is not the same as Balance transfers to your card. Both are entirely different. Also check whether they have transaction fees for Balance transfers. Many credit card companies charge 3% – $10 min fees but very rarely you get free balance transfer fee offers.

4. Check on their billing period and when do they start so you can plan on paying back the money borrowed. Also try to check on their grace period which is either 20 or 25 days depending on their bank offering the card.

5. Finally, just make sure the offers are right when you apply for your card over the phone which is better than applying over mail. That way you can confirm the offers sent to you and you can always use that conversation in future when things go wrong.

I covered some basic as well as important points on how to get a credit card and how to start your credit history according to my experience. I will cover some more facts and pointers in my next post on what are the ways your card or card number can be stolen so you can watch out and what you can do when it happens.

Posted in Credit card, Saving Tags: , No Comments »
Read More »

IDENTITY THEFT 3 – Credit Cards, A Bitter and Sweet deal

November 18th, 2008 Vijaianand

In the Part-1 post, we saw how I was so close in losing the identity by losing the check book through my true story. In the second part, I shared some very famous Internet scams which rocks the web community written by a well known writer to keep you all abrust of the happenings. In this post, I am going to talk about my favorite topic – Credit Cards, how to be nice and play safe with it.


Nowadays, nobody likes to carry even a dollar in their wallet. It is all plastic money that dominates the wallet space. Recently the trend is changing due to credit card debt problems which surmounts to 978 million this year, second to mortgage debt. Many are turning back to greenback cash to safeguard themselves getting lured into their own credit card crisis. But still credit cards are an attractive item around the world among people who can manage and manuver around the loop holes without getting trapped because of its unbeaten promises.


Why Credit card rules?



Credit card is one among the most wanted item by broad range people starting from teens to age old adults. A funny thing about credit card is, you should have a better experience in borrowering money and paying it back (which is translated a good credit history) to borrow even more money. Credit Companies loves to lend you money if you are one of that kind who has good history by sending attractive offers but they except you to fail in a way so they can make money out of you by keeping you in debt. They need a good borrower to lend money and expect a chance to make you bad to make money out of you via interest payments. Isn’t a really tricky business model or what?


Credit card is one of a kind invention by mankind but it can’t escape the ravage of consumer critisim. It has two sides like any other consumer product with both bad and good.



I have many of good points to say listing few below,



1.Avoids carrying cash around

2.Free access to money when in need but comes with fees and charges

3.Usability everywhere in any stores, theatres, theme parks, online stores, online advance bookings etc.,

4.Buy anything from anywhere around the world without local currency

5.Free Auto&Travel Insurance Protection by many cards

6.Help to build good credit history inturns helps to get big things

7.Money back in dollars and gift cards8. Airline miles, Merchandise/Gift points and so much more.

In the bad side though, I don’t have many to complain which are 1.Indulge in shopping spree without any penny in hand,

2.Free access to Money which can drag you into debt

3.Charges and High Interest rates can eat your savings

4.Opportunity to lose identity easily by losing the card


Looks like the number of pros beat the hell out of cons. Most of the disadvantages can be easily overcome by proper money management and cautious credit card handling methods.



Do you really need Credit card?


It depends on each of us unique lifestyle. Everyone needs to evaluate their own situation keeping the good and bad aspects into context and take a decision.


According to my view,

1. a very well managed and organized person can handle credit cards without any trouble and even make money by investing the free money from credit cards.



2. If you are starting out in your career, start out slow but apply one card at time and building your credit history slowly. If the foundation is strong, you can build a very good house on top of and realize your dreams with a good history.



3. If you are kinda of person who never can save or hold the money tight and always go shopping spree, it would be hard one you. You might endup in debt if you cannot pay back your expenses.
 

So it is a really tricky tool which works wonders when it with a person who knows how to handle using knowledge and experience. Otherwise it can get you in trouble and even make your life a disaster.


I have lot more to talk about credit cards like what you need to know before getting one, what are the ways thieves can hijack your identity and what you need to know when your card is stolen. Pretty good stuff coming, so watch out.

Posted in Credit card, Education Tags: , No Comments »
Read More »
« Older Entries
Newer Entries »