Almost all the activities carried out every day facilitate the use of credit cards. Due to the prevalent use of credit cards, the buying capacity has increased; since people have the breathing period to repay the credit availed of. The buying decisions do not wait until the salary is received. This has made the usage of credit cards in all walks of life right from dining, to stay in a hotel, purchase of an air ticket, grocery purchase, petrol refilling etc.

Getting the right credit card from a reputed company extending genuine offers has become a concern nowadays due to fraudulent practices carried out while selling credit cards over the internet. Care needs to be taken in order to avoid to falling prey to the fake companies offering bogus offers to the customers.

A few useful tips to find out bogus credit card offers:

Normally a credit card issuer wont ask for hundreds of dollars for a processing and application fee. Only nominal amount will be charged. Also they do not ask for money upfront.

The annual fee is printed on the first credit card statement. So only when you are sure, fee payment should be made.

Person having bad credit problems are targeted by the bogus credit card offers. This is not the case with reputed banks or card issuers, since the repaying capacity is what a genuine person will look for. If an offer says that they even provide credit cards to bad credit people, then one should be cautious enough to reject the offer.

If a person receives mails from unsolicited sources offering a credit card, beware of the mail and mark them as spam at once.

Do not rely on other companies or brokers to get a credit card, as it is of no help. Applying for the same with a reputed company directly will educate more on the details regarding fees charged, penalty details, by going through the policies, terms and conditions of the company on your own.

It is advised to go for counseling with the consumer credit counseling service in case of credit related issues than falling prey to the company which claims that by collecting a fee from you, it will facilitate you to correct the bad credit. When you can correct it yourself for free why pay others?

A gold or silver card offered by a company might end up only to be used for overpriced products or from the very own companys catalogue. So one should be careful to study the status of the company and its credit cards, in detail.

It is better to buy from known sources and reputed companies, than going for offers lent by unknown companies.

Debit Report – What Is It And How Does It Effect You?

Few consumers are aware that there are companies tracking all of their personal financial transactions bankruptcies, credit cards, installment loans, mortgages and judgments. On the other hand, unless you were raised in a cave you’ve heard of a credit report and most likely understand that it’s a record of all of your purchases. Credit reports are primarily assembled by three credit bureaus (Equifax, TransUnion and Experian) which is then available upon request from most lenders, mortgage brokers or credit bureaus.

Credit reports tell these businesses, in summarized form, how an individual has handled credit in the past and is the primary tool being used to decide whether or not they are worthy of being granted more credit in the form of a loan or additional credit cards. However, what people don’t realize is that there is a company that keeps track of the banking transactions of American consumers but unlike credit reports, that information is available only to banks in the form of a debit report. You may not have heard of a debit report, but it can affect you in ways you may not even realize and it can prevent you from opening a bank account.

Debit reports are compiled and maintained by a company called ChexSystems, which also maintains a database of banking transactions by consumers and creates a debit score based on whether or not an individual has ever had an account forcibly closed, their history of deposits, withdrawals and overdrafts. In a nutshell, you probably don’t have an entry in the ChexSystems database unless you have a history of writing bad checks, consistently overdrawing your account or you’ve had a bank account closed. Of course, mistakes are sometimes made that results in individuals having incorrect entries input into the database that they have no way of finding out about until their request to open a checking account is denied by their bank. Most banks currently use this system and while some provide a little latitude, most will refuse to do business with anyone who has a negative entry in the “debit report” database.

The system was originally designed to simply keep track of people who were writing bad checks, but over the past 30 years it’s evolved into something much more complex. Consumers are entitled to receive a copy of their report from ChexSystems, but few people request one; most likely because they have never heard of the company or the report. Because it’s nearly impossible to operate in today’s society without a bank account it doesn’t hurt to at least be aware of this system. The last time we checked, ChexSystems didn’t have a website but they can be reached by phone at 800-428-9623.

On a positive note, there are numerous third party websites devoted to helping people who have had problems establishing bank accounts due to problems with their debit report. Simply do a search for “ChexSystems” using your favorite search engine.

This article may be reproduced only in its entirety.

Even if you write the check while waiting in line, it will take you forever to pay by check in most stores. They have to see your drivers license, write down all of your info, circle your address and then run it through the system. It isnt the stores fault. The need for all of the double-checking is caused by check fraud and identity theft.

Many shoppers, myself included, have turned to debit cards. Debit cards arent really like credit cards, they are an electronic check. But some banks are starting to offer frequent flier miles, rebates and cash rewards to regular debit card users. The lines are blurring for some consumers.

When you shop with a debit card, you need to know how it works and the drawbacks.

There are two types of debit cards: PIN cards and signature cards. With a PIN card, the money is automatically deducted from your account. You must use your PIN number to use the card. Sometimes you can even get cash back from a merchant.

Signature cards are often called check cards. The money is deducted from your checking account within usually two or three days. You dont have to enter a PIN, you simply sign the receipt.

Most cards today will perform as both types of cards. You can use it as a PIN card and receive money back or as a signature card. Both types will work in an ATM machine. With a PIN card, the money comes out of your account immediately. With a signature card, you have to keep track of your receipts, because, like checks, the money will not come out for a few days.

Debit cards are a good alternative to credit cards. You have the convenience of a card with a limitation to the money that is in your checking account. While you cant go on a spending spree, you must keep track of when you use the card. It can be quite surprising how it all adds up.

Debit cards dont have some of the legal protections that credit cards have. Credit cards give you the right to withhold payments on an item that is defective. Debit cards dont allow this, so you would have to try to get a refund or replacement item. For large purchases, you are often advised to use a credit card. Then simply sit down and make the payment to your credit card company that same day.

Debit cards require that you report a theft of your card within two days of discovering the loss to recoup some of your stolen money. If you follow all guidelines, you will only be liable for $50. After two days, you are liable for $500. After 60 days, you are left holding the empty bag.

Credit cards often will offer more protection than the law allows. Several cards offer zero liability for unauthorized use of a debit card.

While a debit card often gives you the ability to use it in place of a credit card, say for telephone or internet shopping, there are times that you should use a credit card instead. Hotels, rental-car companies and even gas stations will place a hold on your account for a certain amount of money until you check out or return the car. The practice ensures them that you have the money to pay the bill.

If you use a card with the available credit, you probably wont have any problem. But when using a debit card, be careful. The amount they place on hold is exactly as if it has already been spent. This could prevent you from having checks go through or withdrawing money from your account.

The best advice for using a debit card is to be meticulous about keeping your receipts and writing them down in your register. It is so convenient, often we loose track of how and where we have spent the money.

The following article covers the liabilities of fraudulent activities for credit cards, ATM cards and debit cards.

Many people find it easy and convenient to use credit cards and ATM or debit cards. The Fair Credit Billing Act (FCBA) and the Electronic Fund Transfer Act (EFTA) offer procedures for you to use if your cards are lost or stolen.

Limiting Your Financial Loss

It is faster and easier to process financial transactions today than ever before. Thanks to the electronic age, check cards, debit cards, and ATM cards give us instant access to funds on deposit at the local bank or a financial institution miles away. This also provides an avenue of opportunity for thieves and scam artists to rapidly deplete our financial reserves as well.

There are laws in place that provide a measure of protection from total financial ruination, but you need to be aware of your rights and responsibilities should your cards be stolen or appropriated for mischief. The Fair Credit Billing Act (FCBA) and the Electronic Fund Transfer Act (EFTA) are two laws implemented on a federal level that can assist individuals targeted by the criminal element. For the laws to work properly, however, you need to invoke the protective measures by doing certain things if your cards are lost or stolen such as reporting the loss or theft promptly to the issuers.

Limit Your Financial Loss

As soon as you discover the loss or possible theft of your credit cards and your ATM or debit cards you must immediately notify the companies that issued the cards so they will have that fact on record and can monitor the cards for unusual activities. You can usually find toll-free numbers for the 24 hour help line on the back of the card or on your billing statement. It is a good idea to make a list of your cards, along with the account identification and the toll-free numbers, for reporting their loss. When you travel be sure to keep this information separate from the cards so you will have access to the information should you have a need to make a report while away from home.

Keep a record of the companies you notified. Follow up the phone call with a letter that includes all of the pertinent information such as account number, when you noticed your card was missing, and the date you first reported the loss.

As a side note, you might want to check your homeowners insurance policy to see if it covers the liability amount you are responsible for in the case of theft. If you do not currently have such coverage, you might want to contact your insurer to include this protection in your policy.

Under the Credit Card Loss or Fraudulent Charges (FCBA) act, the maximum liability for illegal use of your credit card is $50 per card. If you report the loss before any unauthorized charges are posted you cannot be held liable for any of the charges. If the charges are made using your account number, but not the card itself, you will not be held responsible for any of the charges. The FCBA specifically says the card issuer cannot hold you responsible for any unauthorized charges and limits your loss to $50 of the charges made on the cards prior to you reporting them lost or stolen.

You should always review your card billing statements for errors, but following the loss or theft of the cards you should be even more diligent. If you notice anything amiss in the statement, send a letter to the card issuer along with a description of the questionable charge. Remind them of the phone call you made and the letter you previously sent notifying them of the loss or theft of the cards. There is usually a separate address on the statement to which you will direct billing errors. Do not send the letter along with your payment unless you are directed to do so by the card company.

The Electronic Fraudulent Transfer Act (EFTA) also protects you from fraudulent use of your bankcards. Federal protection from loss due to unauthorized use of your ATM or debit card depends on how quickly you report the loss. For example, if you report the loss before the card is used, the EFTA protects you from any loss. If the report is made within two business days after noticing the loss you will not be responsible for more than $50 on each card.

If you fail to make a report within two business days after you discover the loss, you could be held responsible for up to $500. If you wait more than 60 days after you receive a billing statement reflecting fraudulent activity to make a report, you risk unlimited loss. For example, if you do not file a timely report on the theft of the cards, you could lose not only all of the money in the account, but also be held liable for the amount of overdraft protection you are granted. You must report unauthorized use, loss, or theft of the cards within 60 days of the mailing of your card statement or face unlimited loss. You are liable for charges made between the date of loss and the date the loss was reported. If the thief only uses your account number and not the card itself, however, you will not be held accountable for those charges.

Protecting Your Cards

To protect yourself against fraudulent use of your cards, you should know where they are at all times and keep them safe and secure. If your card requires a password or personal identification number (PIN), dont write the number down so the thieves will get the code along with your cards. Do not use your address, birth date, phone or Social Security number as the PIN. Commit the pass code to memory and dont share the information with anyone.

In addition, the following suggestions may help you protect your credit card and ATM or debit card accounts.

For Credit and ATM or Debit Cards:

* Do not reveal your account number over the phone unless you know you’re dealing with a reputable company.
* Never put your account number on the outside of an envelope or on a postcard.
* Draw a line through blank spaces on charge or debit slips above the total so the amount cannot be changed.
* Don’t sign a blank charge or debit slip.
* Tear up carbons and save your receipts to check against your monthly statements.
* Cut up old cards – cutting through the account number – before disposing of them.
* Open monthly statements promptly and compare them with your receipts. Report mistakes or discrepancies as soon as possible to the special address listed on your statement for inquiries. (For more information on the federal laws regarding FCBA and EFTA, click here)
* Keep a record – in a safe place separate from your cards – of your account numbers, expiration dates, and the telephone numbers of each card issuer so you can report a loss quickly.
* Carry with you only those cards that you anticipate you’ll need.

For ATM or debit cards:

* Don’t carry your PIN in your wallet or purse or write it on your ATM or debit card.
* Never write your PIN on the outside of a deposit slip, an envelope, or other papers that could be easily lost or seen.
* Carefully check ATM or debit card transactions before you enter the PIN or before you sign the receipt; the funds for this item will be fairly quickly transferred out of your checking or other deposit account.
* Periodically check your account activity. This is particularly important if you bank online. Compare the current balance and recent withdrawals or transfers to those you’ve recorded, including your current ATM and debit card withdrawals and purchases and your recent checks. If you notice transactions you didn’t make, or if your balance has dropped suddenly without activity by you, immediately report the problem to your card issuer. Someone may have co-opted your account information to commit fraud.

Paying For A Registration Service

There are service providers who, for an annual fee, will contact all of your credit card and ATM bank card issuers in the case of theft or loss of your cards. This service will notify the issuers and request new cards for you, but other than allowing you to make one phone call and saving you from making numerous phone calls yourself, you do not need this service.

The FCBA and the EFTA allows you to contact your card issuers customer service department directly to notify them of the theft, loss or unauthorized use of your cards. If however, you would enjoy the convenience of a notification service to make the calls for you, be sure to compare the companies offer versus the fees they charge. Be sure your card issuer will work with such a service and find out if the service pays any fees if they fail to notify the card company in a timely manner and you incur charges on your card.

If you decide to purchase service from a registration company, compare offers. Carefully read the contract to determine the company’s obligations and your liability. For example, will the company reimburse you if it fails to notify card issuers promptly once you’ve called in the loss to the service? If not, you could be liable for unauthorized charges or transfers.

Two minus four equals trouble when you are talking your budget. If you spend more money than you make, you will have money problems.

The problem is that you usually don’t realize what you’ve done until it is too late. It’s hard enough to keep track of checking account spending, but add credit cards, and spending can get out of hand. How many times have you used your credit cards to buy clothes, impulse items or even groceries, and said you’ll pay it back? But at the end of the month, you have nothing to pay it back with.

It’s easy to say you will pay it back next month, or when you get that bonus at work, or when you get your tax returns. Before you know it, it’s added up to a mountain of debt.

While credit cards aren’t the only way to spend more than you make, they are a number one enabler. Other ways to spend more than you make is by taking out cash advance loans or having an interest only mortgage. In the long run, they rarely work for your benefit.

It’s not easy to stop spending more than you make. But it is possible. Start by creating a budget. List all of your bills and all of your expenses and see what you have left over. Do this every paycheck. You have to know exactly how much money you have if you want to avoid spending too much. If you need to, sit and look at your bank account register for three minutes every morning. Write down what you’ve spent the day before.

Personally, my husband and I have found that the longer we go between looking at the checking account ledger, the more we spend. When we know every day how much we have left, we are able to spend more frugally. But if we both just assume that we still have x amount left, we get into trouble.

If you are a shopaholic, then there are ways to cut your need to spend. The number one way is to never step foot in the store. If you know that you will buy too much other stuff at Walmart, don’t go there for groceries. If you want to go in Hobby Lobby just to look, but know that every time you look, you spend $200 — don’t go in.

Another way to reduce that need is to go through what you already have. When you see how many things you already have, the need for more is lessened.

You know, everyone has lapses. If you have lived on a $5,000 a month spending habit on a $3,000 income for a while, you may be used to juggling things. And even when it starts falling in, you want to spend that $5,000. You may go out and spend too much every once in a while — you just have to deal with yourself when you do. Then get back on track.

There are people out there that live comfortably on $500 a month. There are others that make $5,000 a month that can’t make ends meet. It doesn’t matter how much money you make, it’s how you use that money. By keeping close daily track of your income and purchases each month, you can make it on almost anything.

Credit cards for bad credit are certainly not going to be the best credit deals, but credit cards for people with bad credit might be your only option available. The interest on credit cards for people with bad credit are usually much higher than on a regular credit card. These types of credit cards are especially designed for people with a bad credit history and don’t qualify for a regular credit card. If you are a young person just starting to build credit, or if you’ve had circumstances that has damaged your credit history, you usually can qualify for credit cards for bad credit.

Bad Credit Deals

Bad credit, credit card deals are readily available online with easy, secure applications. Bad credit deals are often divided into secured credit cards for bad credit that need a deposit and bad credit unsecured credit cards, a bad credit card with much higher fees. These types of bad credit offers people with a poor credit score or no previous credit history a quick and easy way to re-gain a good credit history with bad credit cards. If you keep your credit balance under the limit and make your payments on time, you’ll become eligible for much better deals on your credit card rates and improve your credit score.

Interest

There are many temptations by having credit cards and while using bad credit cards to hold you over in tight situations, remember it is only temporary relief as the interest rates on credit cards for bad credit are extremely high. Shop around and look for credit cards for bad credit with an interest rate that you are absolutely sure you will be able to pay. Probably the single most important part of picking credit cards is the interest rate, especially for people who will be rolling over balances from month to month.

Tips

A person must always keep in mind that credit cards for bad credit are very easy to use so don’t go overboard or you might find yourself in a much worse situation. Check out the interest rates and fees before you start applying for credit cards for bad credit. Don’t apply for every bad credit card there is as this will effect your credit score, only choose two of the best bad credit deals you can find.

Credit cards for bad credit are certainly not going to be the best credit deals, but credit cards for people with bad credit might be your only option available. The interest on credit cards for people with bad credit are usually much higher than on a regular credit card. These types of credit cards are especially designed for people with a bad credit history and don’t qualify for a regular credit card. If you are a young person just starting to build credit, or if you’ve had circumstances that has damaged your credit history, you usually can qualify for credit cards for bad credit.

Bad Credit Deals

Bad credit, credit card deals are readily available online with easy, secure applications. Bad credit deals are often divided into secured credit cards for bad credit that need a deposit and bad credit unsecured credit cards, a bad credit card with much higher fees. These types of bad credit offers people with a poor credit score or no previous credit history a quick and easy way to re-gain a good credit history with bad credit cards. If you keep your credit balance under the limit and make your payments on time, you’ll become eligible for much better deals on your credit card rates and improve your credit score.

Interest

There are many temptations by having credit cards and while using bad credit cards to hold you over in tight situations, remember it is only temporary relief as the interest rates on credit cards for bad credit are extremely high. Shop around and look for credit cards for bad credit with an interest rate that you are absolutely sure you will be able to pay. Probably the single most important part of picking credit cards is the interest rate, especially for people who will be rolling over balances from month to month.

Tips

A person must always keep in mind that credit cards for bad credit are very easy to use so don’t go overboard or you might find yourself in a much worse situation. Check out the interest rates and fees before you start applying for credit cards for bad credit. Don’t apply for every bad credit card there is as this will effect your credit score, only choose two of the best bad credit deals you can find.

Applying for and getting credit cards for bad credit can actually end up being quite helpful to consumers if they are used correctly. The following are a couple of great reasons why getting a credit card especially for those with bad credit can be a wise idea.

Credit cards for bad credit can help people keep track of their spending habits. Most credit cards designed for consumers with not so healthy credit send detailed reports of what is being purchased with the credit card. This is really a fantastic way to find out exactly what you are spending your money on each month and then decide what can be cut out. More responsible spending habits are a great practice for consumers no matter what their credit history may be.

Credit cards for bad credit generally fall into two categories. The first is a credit card that has a maximum limit to the amount you can charge. For example a consumer with bad credit may be able to apply for a credit card with a $1000 limit. This can help the consumer from over spending and getting into a financial bind that they cannot get out of.

The second of the credit cards for bad credit is the secured credit card. These credit cards involve the consumer making a small deposit onto the credit card in order to use it. Some cards will increase your spending limit if good spending practices occur while others you can simply only spend what you put onto the card. Either way it is a great way to be responsible with your money and start rebuilding your credit.

These are just two of the great reasons as to why it is not a bad idea to look for a credit card tailored to those with bad credit. Credit cards for bad credit can be the first step in taking the needed steps to restore your credit to good health.

Needing credit cards for bad credit can be a real pain. It can really take a toll on your life and make you feel like you will never rise above it, that will always be a part of your life and gone are the days of loans, credit cards, and other forms of credit. This does not have to be true. Many companies in the world today understand that sometimes things beyond our control happen and we all need a second chance at rebuilding our lives. This is why some companies are now offering credit cards for bad credit.

Credit cards for bad credit are specific to those who have a tarnished credit history for one reason or another. Your credit score might be low because of bad decisions, loss of employment, reduction in wages, injury, or a host of many other things. However, everyone deserves a second change to prove themselves credit worthy once again. This is where credit cards for bad credit come in handy.

With these credit cards, even though you will have to pay an extremely high rate of interest on the card, are perfect for those looking to rebuild their credit and improve their credit ratings. While you will likely not have many of the same benefits as traditional credit cards such as, rewards, long grace periods, or even long introductory periods, you will still have the opportunity get your financial affairs back on the right track.

Credit cards for bad credit can be found on the internet. It is important that you do your homework and find the right credit cards for bad credit that suits your needs and situation. Using the internet for research is a great place to start. Check out the interest rates and benefits before you start applying for any credit cards for bad credit. Ideally, you will want to find a credit card that periodically checks your credit report. This way, if you are improving your credit rating, making your payments on time, and showing credit worthiness, they may consider lowering your interest rates or raising your credit line.

In 2007, having a credit card is no longer a luxury or even a convenience – it’s a necessity. You can’t rent a car, check into a motel, or order online without a credit card. If you want a cell phone, you’ll probably have to purchase prepaid minutes – at a premium – unless you have some plastic with your name on it. And without a credit card, you either have to carry around a lot of cash, make frequent trips to the bank, or hope that the stores you patronize will accept your personal checks.

Credit Cards Can Be Lifesavers in the Case of an Emergency

Worst of all, people who lack sufficient access to credit are the most likely to use payday loan services. Later in this series we will explore this subject in depth, but for now, just consider this: If a single mother is hit with a sudden, unexpected expense – say a car repair for $600 – what can she do if she doesn’t have the money? She needs the car to get to work, and she doesn’t know anyone who can afford to lend her the money out of friendship. So she decides to use the local payday loan shop and ends up paying a 530 percent APR (annual percentage rate) interest. If, instead, she had a credit card with at least $600 of available credit, she wouldn’t have had to use the payday charlatans, and would have paid a much, much lower interest rate. Many people who use payday loan services, even once, fall into an inescapable spiral of debt, where they work all week to pay back their payday loans, and then have to take out new payday loans to meet their weekly expenses. People who use their credit cards responsibly never fall victim to this scenario.

Credit Cards Can Help With Budgeting

Credit cards help spendthrifts easily track their expenditures. One simple technique is to use one credit card to automatically pay your recurring monthly expenses (phone, cable, utilities, etc.), another to buy your groceries and gas, and a third for all other expenses (entertainment, eating out, etc.). When you get your bills each month you can compare how much you spent on your wants versus your needs and make adjustments as necessary.

Protections Offered by Credit Cards

Although the media likes to focus on the “epidemic” of identity theft, the truth is that using a credit card is much safer than using cash, a check, or virtually any other means of exchange. If you’re carrying cash and your wallet is stolen, you’ll never see a dime of your money. If a merchant cashes your check and refuses to grant you a refund, chances are, you’re out of luck. But in either scenario, using a credit card would have offered you protection.

If, for example, your wallet full of credit cards is stolen, you will not be liable for any more than $50 of fraudulent charges, per card. This is the legal limit, but in reality, most card issuers don’t even hold you liable for the first $50 – they just stick the merchants with the bill. And if a merchant refuses to give you a refund that you deserve, you can file a “chargeback,” in which the credit card company will side with you 99 percent of the time. Paying in cash or with a check offers no such protections.

Your Credit Card – Don’t Leave Home Without It

Credit cards are ideal for traveling abroad because they automatically convert to the local currency. This means you won’t have to waste time with the money changer or carry around several foreign currencies, and of course, not carrying cash makes you much less susceptible to pick-pocketing.

The main thing to understand is that credit cards can be wonderful tools that greatly enhance our lives. All that we need to do is be informed, active, and responsible users of these powerful little pieces of plastic.