Stricter Credit Card Applications
The New Credit Card Act of 2009 takes effect on February 22, 2010. To help you prepare, my blog will feature Nine Tips over the next three weeks.
Tip Number Four
Think getting a new credit card was hard to do in the past? With the new Credit Card Act of 2009, you will have to disclose your income and your ability to repay any balance.
Over Your Credit Limit? Purchase not approved
The New Credit Card Act of 2009 takes effect on February 22, 2010. To help you prepare, my blog will feature Nine Tips over the next three weeks.
Tip Number Three
You’re standing at the cash register, unsure if a purchase will put you over your credit limit. In the past, you’d really need to worry.
But that’s changed. Now, if a purchase will put you over your credit card limit, you will be declined with the new Credit Card Act of 2009. Only pre-authorized purchases will be approved.
(Remember, this doesn’t apply to your debit card. If your checking account is overdrawn on a debit card purchase, you’ll receive no warnings at the cash register.)
Will Your Bank Fail?
With banks failing at record numbers, you want to make sure that you keep you money safe. With over 100 banks failing this year alone, you want to make sure your money is safe in the bank. After all you worked hard for it and you shouldn’t lose it because your bank fails.
The FDIC (Federal Deposit Insurance Corporation) insures bank accounts and the NCSIF (National Credit Union Share Insurance Fund) insures credit unions. These two government agencies will reimburse you if you bank with one of their insured banks / credit unions up to their limits.
This is what you personally have to do. First make sure you are banking with an FDIC or NCSIF institution. You would check this out by going to www.FDIC.gov and then clicking on the Deposit Insurance tab and finally on Bank Find. Here you can look up your bank to see if they are part of the program. If not, move your accounts to a bank or credit union that is insured.
If you are at a bank that is insured, you need to make sure you accounts are covered with the limits. If you have more than $250,000 in one bank (that includes all the different bank locations), then you need to check to see if you are covered or need to move part of you money into bank. Take these steps so that your money is secure and is there when you need it.
No More Credit Card Payment Fees
The New Credit Card Act of 2009 takes effect on February 22, 2010. To help you prepare, my blog will feature Nine Tips over the next three weeks.
Tip Number Two
Have you ever gone out of town and arrived back home to find out that you have a credit card payment due tomorrow? Like most people, you probably got on the phone, or online, to make the payment because you wanted to pay right away. You also probably got charged a nice little fee for not sending a check through the postal service like a good little credit card owner.
With the new Credit Card Act of 2009, you will not be charged a fee to pay your credit card, unless you specifically ask to have your payment expedited (which means that you asked to have it rushed through).
Guard Your Social Security Card
Your social security card has been lost or stolen – what do you do? That’s a tough question. If there is no evidence that someone is actually using the number, neither Social Security nor the FTC will help you.
If you do have evidence that someone is using your number, you can contact the FTC at 1-877-IDTHEFT or FTC.Gov. If you are unsuccessful in trying to correct the situation, Social Security might give you a new social security number. You can contact them by calling 1-800-772-1213. For more information, visit SocialSecurity.Gov.
You should also report the loss to each of the three major credit reporting agencies: Experian, EquiFax and TransUnion. Ask them to put an alert on your credit report. This will send a signal to any merchants or credit companies that the person requesting a new account may be using stolen information. Actively monitor your credit by ordering free reports from AnnualCreditReport.com
If you are in a state that allows you to put a credit freeze on your credit report, I would do this as well. That way, no one can access your report unless you authorize them to do so. There is a charge: First a fee to freeze your report, then another fee to unfreeze your report when you apply for credit cards, loans, or insurance. But, it’s better to be safe than sorry.
With that thought in mind, remember to keep your card in a safe place and not in your wallet.
Give to the Victims – Not the Scammers
With the recent events in the world, you may want to make a charitable donation to help the cause. When disasters occur, they tend to go hand in hand with scammers. The best way for you to donate and help is to research the charities before you give. Some charities may want monetary donations, others may want specific items. Whatever you chose to do, make sure that your donation is being put to the best use for the cause and not lining someone pockets.
First you need to choose a charitable organization. Even if you have a specific cause in mind, there could be many organizations claiming to support the same goals you do. Second, you will want more information about a charity, and how they use their funds, go to www.give.org. Here’s what you need to know:
- Find out how much of each dollar is used for the cause, versus how much is used for administrative expenses. The higher the amount used for the cause the better.
- Find out whether they have a 501(c) (3) tax status if you are planning to deduct this donation on your IRS tax return.
Now that you have selected the charity of your choice, you will to decide whether you will be making a donation of money or specific items to the charity. Check to see what they suggest is best for what you want to accomplish. For monetary donations, you should always use a check / debit card or credit card so that there is a record of the transaction. This is the easiest way so that you have proper documentation. If you are donating specific items, you will need to have a record of what you are donating. For non-cash items, you can use the purchase receipt, itemized list along with documentation from the charity. Please check with your tax preparer, so that you have the proper documentation.
Teleseries about college for teens & parents
I’m planning a teleseries for teens and parents about college. What topics are you interested in learning more about? Let me know so I can answer your questions.
What’s up with credit card companies lately?
There was a time when our mailboxes were full of credit card offers. Now the offers have been replaced with policy change notices.
Credit card companies are racing to make changes before the new regulations hit in February 2010. They’ve have had a bad couple years. It used to be easy to make money in the credit card business, but things have changed.
The first issue is defaults. Because of unemployment, more people are defaulting on their debts. So, credit card companies have been lowering everyone’s credit limits to help reduce the risk. Their reasoning is sound. The less debt you have, the less debt they will have to cover. Expect your credit card limits to fall even if you have a good payment history.
The second issue is pay offs. More people are paying off their credit card debt because they’re anticipating layoffs. This means that the creditors are earning less from interest payments. They need risk-free revenue, so they’re looking at annual fees. Expect your credit card company to either add an annual fee or increase the fee you already pay.
Right now, under the old regulations, they can still make changes to your account with minimal notice. If you get an unpleasant policy change in the mail, you should definitely call the credit card company and try to get them to revert back to the original terms. If that doesn’t work you can always close the account.
Credit Card Shaving is Cut and Paste Fraud
Credit Card Shaving – it sounds like what you would say if you were cutting back on your credit cards, but that’s not what it means. This is the latest credit card scam and there is nothing you can do to prevent it. Isn’t that scary?
Credit Card Shaving Q & A
How do they get your credit card number? They get it through guesswork, not by theft. The thief makes a random list of 16 digit numbers. Then he tries to make purchases online with different combinations. If one works, then he knows he has a legitimate account.
Why is it called “Credit Card Shaving?” The thief literally shaves the raised numbers off of other credit cards (usually cheap gift cards) and glues them onto a new card in the correct order. The card looks legitimate. He can even use his own ID to prove the card is his.
How does he change the magnetic strip? The thief doesn’t need the magnetic strip, he just “scores” or scratches it so it can’t be used in the automated stripe reader. This forces the cashier to manually enter the numbers that are glued to the card.
What can you do about it? Always monitor your accounts. Check statements for unusual purchases. If you can access your accounts online, you can check more often.
Is it time-consuming to monitor your accounts? We treat credit cards like pre-approved micro-loans, or feel they’re safer than carrying cash because they can be canceled if stolen. In reality, the more cards you have, the more work is required to watch over them.
