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April 30, 2006
Protecting Yourself against Credit Card Fraud
Credit card security is one issue both credit card companies and their customers are concerned about. Since their introduction, credit cards have changed the way we pay for goods and services. It is estimated that three out of every four adults use at least one credit card. In fact, on average, adult Canadians have four credit or charge cards. With so many cards in existence, misuse is a significant risk, and statistics show that credit card crime is growing.
Many credit card companies offer you protection in the event your card is lost or stolen and used fraudulently. The option for "limited liability" for unauthorized use of the card must usually be requested (unless you have a really heads-up salesperson), and the protection is only valid when a lost or stolen card is reported immediately. If you follow the rules, your liability is usually limited to a maximum of only $50. Take advantage of this limited liability protection, and remember to report lost or stolen cards immediately.
Don't leave your credit cards in high-risk theft areas such as your workplace, in the glove compartment of your car, sitting out in the open while on public transportation, or in health clubs and hospitals. If your card is lost or stolen, report it immediately. Since most lost or stolen cards are fraudulently used immediately after they are stolen, prompt reporting can make a big difference. The telephone number for reporting lost or stolen cards is usually provided on the back of your credit card statement.
Don't keep your PIN (personal identification number) with your credit cards. The "limited liability" protection mentioned earlier is not extended to cash advances — even those that are fraudulent. Protect yourself. No one should have access to your PIN but you.
Be very careful about giving out your credit card number over the telephone. Phony companies calling to solicit travel business or sell products may encourage you to give them your credit card number. Later, you may find that your account has been charged for products or services you neither requested nor received. While there are many legitimate telemarketing companies and survey companies, you should only give the number out when the organization is known to you and the product or service is one you have requested.
Whenever you use your card, keep your copy of the receipt so that you have an actual record of the transaction. Tear up your carbons so someone rustling through the garbage won't find your name, number and signature. Put some sort of identifying mark on your card. Sometimes cards get mixed up by busy sales clerks. If your card has a distinctive mark (borrow a sticker from one of your kids), you'll be able to instantly recognize it.
Take a photocopy of all your credit cards so you have a record of all the details of your cards if they are lost or stolen. Remember to keep those records in a safe place.
And finally, when your card expires and you get a replacement card in the mail, cut up your old card. Don't just cut it in half; cut it along the numbers, and chop it into small pieces. The likelihood of anyone finding all the pieces is much smaller that way.
April 29, 2006
Credit Card Rewards - All the Extras
Credit cards offer you lots of rewards that make them attractive. They can offer savings on travel insurance, car rentals and travel expenses. For example, if you have a card that offers a "car rental collision and loss damage insurance waiver," you can decline to purchase the insurance offered by a car rental agency. This can save you up to $12 a day and can cover the annual cost of a card in just a few days.
Some credit cards offer medical coverage while you're travelling. This may not only save you money, but provide you with the convenience and peace of mind of knowing that coverage is automatic. However, there are usually limitations on the length of the trips covered. Check the insurance certificate carefully before you decide to buy.
Some credit cards offer insurance on the goods you buy so if they are lost, stolen or damaged, they will be fixed or replaced free. Some even offer you a rebate when your balance is paid so you can save on your overall purchases.
Some cards offer bonus points redeemable for merchandise; others have an affiliation with an airline that earns you travel points. Take advantage of these special characteristics to make your life easier and to save money. If you travel a lot, for example, then a credit card that offers special travel features may be the right one for you. These features may include:
Most credit cards offer a card registry service that sometimes includes the registration of important documents (e.g., passports, birth certificates, etc.) so you can retrieve those numbers any time with one phone call. If you've ever lost your wallet while travelling, you know what a pain it can be to contact all the proper authorities to report your missing cards. With the card registry service, it's done for you.
Some cards even offer insurance on the balance owing so that your balance will be paid off in the event of involuntary job loss or death.
Each insurance coverage package has exclusions and restrictions, and the details can be found in the individual insurance certificates. Take the time to clearly understand the terms and conditions for the insurance coverage offered before you decide on a credit card.
April 28, 2006
How Are My Credit Card Payments Applied?
When payments are received, your account is credited with the payments in the following priority:
Previously billed
To be billed (or "unbilled") - cash advances
If you look at each of these as buckets, it's easier to understand how your payments are applied. Once the first bucket, "previously billed interest," is reduced to zero (emptied), payments are applied to the second bucket, "previously billed cash advances," and so on until all your payment dollars have been applied.
On the next statement date, the credit card system checks to see if all the buckets (except "to be billed purchases") are zero and, if so, the interest accrued on the retail balance is waived.
Interest calculated on a cash advance is NEVER waived, regardless of whether a full or partial payment is made. When partial payments are made, interest accrues on the reduced principal and is charged on the next statement.
April 27, 2006
The Cost of Borrowing on a Credit Card
It's amazing how many people run balances on their credit cards when the interest rates they're charged are so high. About one in two card holders run a balance — paying interest rates from 14 to 24 percent.
Financial statistics show that most people will go out of their way to earn one-half to three-quarters percent more on a GIC. Yet we'll pay seven to 14 percent more interest than necessary, just because it's a credit card. If you have an outstanding balance of $1,000 on which you're paying 17 percent, that's costing you more than $14 a month, or almost $169 a year. And that's after tax dollars! You'd have to have a $1,000 GIC paying better than 24 percent to break even. Now, where can you find a GIC paying 24 percent in today's market?
Instead of carrying a balance on your credit card, you'd be better off taking a loan at 10 percent and paying off your credit card. If you'd go out of your way to earn one-half percent more in interest, how far out of your way would you go to save seven percent in interest costs? Fact is, you don't have to go far — just to your nearest financial institution. What are you waiting for?
April 25, 2006
Credit Cards - The Hidden Interest Charge
Interest is typically calculated on a daily basis if your account has an outstanding balance. Interest calculations begin on transactions the day the transaction is posted to your account, usually within a few days of having made the purchase. However, if you pay the total balance indicated on your statement on or before the due date, no interest will be charged.
Marnie Worldman charged $1,000 on her credit card last month. She paid her balance in full by her payment due date, so she was not charged any interest. Her sister Deborah also charged $1,000 last month. However, Deborah made a partial payment of $400 on the due date so:
Even through Deborah paid off $400 by the due date, she was still charged interest on the total $1,000 up until the date the $400 payment was made. That's because when you make only a partial payment, you are charged interest on the total balance. The only way to avoid paying any interest is to pay off your balance in full every month.
April 22, 2006
Using Credit Cards Wisely
Credit cards are a great way to begin establishing a credit rating. If you find you are a nonentity in the world of credit, get yourself a credit card, start charging, and pay off your balance every month. After about six months, see if you can get your limit raised. Remember, though, not paying off your balance on time will cost you significantly in interest. Failing to make even the minimum monthly payment will cost you on your credit rating.
Credit cards are extremely convenient. They're safer than carrying scads of cash, and they are easier to use than personal cheques. If you pay them off on time, they can be even cheaper than using cheques. There's no question that cards have a place in your credit closet, but you have to be disciplined in managing them, or they can turn ugly.
Choose your credit cards carefully. Some charge higher interest than others. Store cards are notorious for charging the highest interest. Besides which, what do you need a store card for if you have a financial institution's card? It's just a temptation to spend more than you have. And it's hard to keep track when you have zillions of credit cards at your disposal. Get rid of them. Keep only those you can manage effectively.
April 21, 2006
Getting a Loan With Bad Credit
Here is a question I recently received regarding getting a loan for $15000 with less than perfect credit. I have left the persons name out of this post to protect identity.
Question:
Do you know of anyone that will give me a $15,000 loan. My credit is not so good. I've been applying everywhere. They all say I will get approved and when I go ahead with the application, I am always turned dow. Can you help?
My Response:
Can you let me know where you have applied then I will go find others for you.
In the meantime, avoid applying for other loans. One problem that creeps up is applying multiple times and being turned down.
Creditors have a “heard mentality” – “Oh, they turned her down so we should too” – It isn’t fair but that’s the way many of the banks think.
Applicant's Response:
I have applied for at least 10-15 loans. Ive been turned down for all of them. I dont think anyone will help me at this point. I even paid one company $99 to find me a "guaranteed" loan.
My Response:
have gone “outside the box” on getting loans myself.
I used to work as a computer support tech and then left to start a business online – I wanted a mortgage but with a new business the bank was very hesitant to give me the loan.
What I did was focused on establishing a relationship with my bank. It took some time and lots of talking but I got the loan.
I am surprised that a site would charge you to find a loan. They appear to be in the same business as me. Building websites and getting paid a commission for referrals. Seems they are “double dipping” – Avoid paying for somebody to find you a loan
I am in the process of putting training material together to help people make money online.
In the meantime, stop applying for loans. It might take about 3-4 months to get a loan after applying for 10-15 companies. Each application shows up on your credit report and each subsequent company says “hmmm…everybody else turned her down, we should too”.
I would also contact the company that you paid to find a loan and demand your money back and if they don’t consider filing a complaint with the Federal Trade Commission www.ftc.gov
I think this is the right form to fill out (I could be wrong on this but it is a good starting point):
https://rn.ftc.gov/pls/dod/wsolcq$.startup?Z_ORG_CODE=PU01
Hope this helps a bit and I will take a look around for you - and won’t charge you a penny ;)
The Moral of This Story:
If you have bad credit avoid excess loan applications - Each rejected loan results in your chances of getting a loan decreased.
When you have bad credit you need to take some extra time to assess your chances of getting a loan with them. E-mail the company prior to making your application. Fully and honestly explain your situation - Tell them that you don't want to apply until you are quite certain that you will get the loan.
If they pressure you to apply, refuse to do so. They are eager to get your application rolling but if you don't quality, as already mentioned, it will harm your chances of getting a loan elsewhere.
Be strong, because the lendor will pressure you to make the application. Taking your time will lead to better chances of acquiring the loan.
Posted by Colin at 08:46 PM | Permalink | Comments (0) | TrackBacks (0)The Hidden Interest Charge
Interest is typically calculated on a daily basis if your account has an outstanding balance. Interest calculations begin on transactions the day the transaction is posted to your account, usually within a few days of having made the purchase. However, if you pay the total balance indicated on your statement on or before the due date, no interest will be charged.
Marnie Worldman charged $1,000 on her credit card last month. She paid her balance in full by her payment due date, so she was not charged any interest. Her sister Deborah also charged $1,000 last month. However, Deborah made a partial payment of $400 on the due date so:
She was still charged interest on the full $1,000 up to the day the $400 was credited, since she had not completely paid off her balance
The remaining balance of $600 became the "retail revolving balance," which would continue to accrue interest until it was repaid.
Even through Deborah paid off $400 by the due date, she was still charged interest on the total $1,000 up until the date the $400 payment was made. That's because when you make only a partial payment, you are charged interest on the total balance. The only way to avoid paying any interest is to pay off your balance in full every month.
April 18, 2006
I've Never Had a Credit Card in My Own Name. What Do I Do?
Some people have difficulty establishing that they even exist when it comes to getting credit. If you are a married woman and all the cards are in your husband's name, even if you make the payments on the card, you're contributing to his credit rating, not your own. The card company doesn't care who signed the cheques. They base their reporting to the credit bureau on whose name the card is held in.
Women who are recently divorced or widowed often face the shock that they don't exist simply because all the credit reporting was done in their husbands' names. If you are a married woman, make sure you have at least one credit card in your own name. You'll have to apply for it and qualify for it on your own. Initially, you may have to use a secured credit card (see page 16). However you get your card, make sure you use it wisely so that the reputation you develop is a good one.
The other way to become known is to open up a chequing account with your local financial institution and get to know the branch manager. You'd be surprised at how far a personal relationship with a banker can take you. After all, the more familiar she is with you, the more likely you are to get the service you want, when you want it — including getting credit.
If you're new to the workforce or a recent immigrant, the same advice applies. Establish a relationship with a financial institution, borrow some money (using a guarantor, if necessary) and start building your credit reputation.
April 17, 2006
Review Of Capital One Platinum Credit Card
The Platinum card from Capitol One offers a very low annual percentage rate of only 5.9% which is simply phenominally competitive. While the Capital One Platinum does not offer an interest free introductory period like many other credit cards do it makes up for that by offering one of the lowest ongoing interest rates in the business. If you carry a balance on your card and are tempted by the introductory 0% rates, you need to look closely at the ongoing rate as in the long run you might just end up paying more in fees than if you take advantage of the Platinum offer from Capitol One.
If you are considering a balance transfer Capitol One provides you with a no fee balance transfer. They want you as a customer and will not charge you to do business with them as many other banks do. Not only is there no BT fee there is no annual fee as well as a $0 fraud liability! There are several other perks to this card such as:
My overall opinion of the Platinum credit card from Capitol One is that it is a straight-forward offer providing you with a low ongoing interest rate without any complicated bonuses or frills. If you tend to carry a balance on your card and all you want to do is save money on interest charges then the Capital One Platinum would be an excellent choice.
Editor's Review Of Capital One No Hassle Cash Rewards Credit Card
The Capital One No Hassle Cash credit card is exactly what the name of the card says - plain and simple you get 1% cash back on all purchases - unlike many other cash rewards credit cards that have several limitations on how your cashback is earned, Capital One's cash back offer provides you with 1% on all purchases.
Like all other offers by Capital One there are simple terms & conditions without the confusion and clutter that you will find with most other banks and lending institutions. This straight forward simple approach is what keeps Capital One a leader in the credit card finance business. There are no annual membership or balance transfer fees. There is also a competitive APR of 9.9% which at the time of publishing this review is in line with most other lenders. No, it's not the cheapest rate nor is it the most expensive interest rate - it is a rate that all top lenders are offering for similar credit cards. Again, what differentiates Capital One No Hassle Cash is the fact that there are no limitations on how your cash back is earned - you earn on all purchases.
If you are the type of person who pays their credit card balance in full each billing cycle then this is an awesome card to have. The No Hassle Cash card will be like having an additional savings plan on your side. For all purchases you get 1% cash back. What I recommend with cash back cards is that you take your cash back and put it in your retirement savings account.
Now, for those of you who don't pay your balance in full and want a Capital One card I recommend applying for the Capital One Platinum as you will enjoy a lower interest rate. If you don't pay your full balance each billing cycle the 1% rewards are wiped out by the 3% higher interest rate on the No Hassle Cash card - you will be further ahead by using the lower interest Platinum card.
Posted by Colin at 11:49 AM | Permalink | Comments (2) | TrackBacks (0)April 16, 2006
Capital One Miles Visa Signature Credit Card Offer
The Capital One No Hassle Miles Visa Signature credit card is a rewards card that offers flexibility with the points you earn. You can redeem your points for travel, cash back, merchandise or even for charitable donations.
Key Features of Miles Visa Signature Credit Card From Capital One:
Requirements to qualify for the Miles Visa Signature:
Qualification for this card requires you to have excellent credit. Capital One defines excellent credit as:
If you meet the above criteria your application will be accepted.
The Capital One No Hassle Miles Visa Signature credit card provides you with competitive interest rates - about the same as all competing card offers - As well offers competitive rewards - again, about the same as you will find with most rewards cards.
The biggest differences that make this card stand out above others is the fact that there is no annual fee and there is no limitation on what airline you fly. Overall the No Hassle Miles Visa from Capital One lives up to it's name - it truly is a no hassle rewards card!
Posted by Colin at 06:24 PM | Permalink | Comments (0) | TrackBacks (0)April 15, 2006
Review Of Platinum Business Credit Card from American Express
The American Express business platinum card is best suited for those businesses who currently are carrying a huge debt load on other high interest credit cards. The Platinum Business card provides a 12 month 0 APR introductory rate on balance transfers. This is perfect for those who are simply looking to cut a few expenses from their business and are not concerned with a reward points program. As with all American Express offers your credit must be top notch otherwise your application will not be accepted.
After the expiration of the 0 APR intro rate the rate goes up to 9.49%,11.49%,13.49% or 16.49% depending on various factors such as your business credit rating and the size of the credit line. The rates provided by American Express are in line with most other credit cards so you will not be getting ripped off.
If your goal is to cut costs in your business by shaving off some credit card interest payments this card will be perfect for you. My recommendation would be to apply for this card if this is your situation and then apply for another American Express rewards card such as the Gold Delta SkyMiles Business Credit Card after you pay down the balance on the Platinum card. There usually is no cost to switch from one product offered by Amex to another. The only extra cost might be an annual fee so read the terms and conditions on the application before you apply to ensure you are comfortable with them.
Platinum Business Credit Card from OPENSM The Small Business Team - Click Here to Apply Now
Posted by Colin at 09:52 PM | Permalink | Comments (0) | TrackBacks (0)April 14, 2006
Capital One Visa Business Platinum Credit Card for Small Businesses
The small business platinum Visa card from Capital One provides small businesses with some great incentives and rewards such as:
You will enjoy earning No Hassle Miles on all your business expenses while enabling you to keep your business and personal expenses separate (very important when it comes to tax season).
The really great feature about Capital One credit cards is the airline rewards are not restricted - as long as the airline is a U.S. based airline you can redeem your points with the airline of your choice - there are no blackout dates either which makes redeeming your points much more convenient.
To give your business a more professional look you can also have your card customized to include your company logo or include an image of yourself - note that including an image of yourself also provides an added security feature
Besides the travel rewards that you will earn, there are many more business savings for you too through the Visa Business Partner Advantage program offered through Capital One. This program will entitle you to discounts with companies that you will probably make business purchases with.
Here is a list of some of the discounts you will enjoy:
As you can see there are many great rewards offered by the Capital One Visa Business Platinum small business credit card. Points towards travel and savings with stores that you probably already make business purchases with - what more reason do you need? This is a great card to support your business!
Posted by Colin at 01:00 AM | Permalink | Comments (0) | TrackBacks (0)Discover Student Clear - Editor's Review
This card is the perfect choice for students to establish their credit early, while enjoying the conveniences of a credit card. It will be easy to build your credit history with the unbeatable 0% introductory rate that comes with this card for six months. Also, you will enjoy the convenience of the online accessibility to your account they offer that allows you to pay your bills, view your last twelve statements and most recent transactions to keep you up-to-date and informed on your individual account. You can even choose to sign-up for an email reminder that will let you know of minimum payment that is due.
With your student clear card you also have the benefit of receiving up to 2% Cashback Bonus and get up to 1% cash bonus on all your purchases, with unlimited earnings. If you spend up to $1500, you will receive a .25% rebate and $3000 spent will give you a .5% rebate - spend over $3000 and you will receive a 1% rebate. You then have the options of doubling your reward with gift cards or certificates from Discover Card Partners such as Blockbuster, Carnival Cruise Lines, The Sharper Image and much more.
Like any credit card however, you must be careful when taking out a cash advance. Make sure you think it over carefully because it comes with a high interest rate of 20.99% that starts as soon as you receive your cash. Be sure to pay your bill on time because if you are late, your introductory or special rate will be terminated and the purchase APR will apply to any purchases or balance transfers you have made. You don't want to be stuck with another payment you really can't afford. I do however think this card is a good choice with the overall benefits and service it has to offer such as - Cashback bonus, no annual fee, online service and the free Discover 2Go card that can be conveniently attached to any key chain.
April 13, 2006
Discover Wildlife Credit Card Review
For those of you who love wildlife and everything about it, you will surely enjoy the look of the Discover Wildlife credit card. Choose from five choices that include designs such as an eagle, wolf, tiger, dolphin or butterfly. You will enjoy an unbeatable low rate of 0% for eight months on your purchases and balance transfers. This is a great opportunity to pay off those high interest loans or credit cards and you will be amazed at the amount of money you will be actually saving. You must remember though that if any payment is late or missed, this exceptional rate will be defaulted and will immediately end. After the last day of this special rate however, the standard APR will change to an estimated rate of between 7.99% and 16.99%. At this time, it is advisable to pay off the balance every month to avoid costly finance charges.
This card also comes with a cashback bonus of up to 2% on purchases made. The amount of money that is spent on the card reflects the cash rebate earned, so therefore, the more you charge to your card the better the reward. If you spend up to $1500, you will receive a .25% rebate and $3000 spent will give you a .5% rebate - spend over $3000 and you will receive a 1% rebate. Rebates that are earned are worth double their value at participating retailers through the Cashback Bonus award program and you can have your bonus doubled into gift certificates at places such as The Olive Garden, Blockbuster and Carnival Cruise Lines.
I think this card is a good choice for those who pay off their balances every month, who are looking for a cashback deal and who want to take advantage of the exceptional 0% interest rate to pay off existing high interest loans. The downside to this card is it's two Cycle Average Daily Balance method, which is a more costly way in applying finance charges for those who occasionally carry a balance as compared to the other methods used by most card issuers.
Review Of The Discover Titanium Card
Here is a card that conveniently comes with an excellent unbeatable 0% introductory rate that is available for eight months. After this time period, you will be able to still enjoy a standard low rate of just 9.99%. Enjoy the benefits that come with this card such as no annual fee, travel insurance, various fraud and security services along with online access and free additional cards. Also receive a free Discover 2Go card - a convenient and compact way of paying for your purchases.
This card is designed for those with excellent credit who plan to pay off their balance in full each month. It uses a costlier two-cycle method of calculating interest charges every month differently than the standard way that other companies calculate, a feature that I don't think is very good. Late fees are $15 on balances up to $100 all the way to $39 on balances of $1000 or greater so it is important to make your payment on time. This card does not offer you the cash rebate program that is available with other Discovery Cards so if you are looking to earn valuable points or rebates, this isn't the card for you.
Overall I think this card is a great choice for those who want to take advantage of the exceptional 0% rate and continue using a good rate after the expired bonus time. If you rarely carry and balance and want a credit card with good value, then Discover Titanium is the choice for you.
Posted by Colin at 03:46 PM | Permalink | Comments (0) | TrackBacks (0)Discover Student Classic Credit Card Review
The Discover Student Classic is a great card to help students build a credit history on. With this card they will receive an unbeatable rate of 0% on purchases for 6 months, but after the introductory period ends the rate will be increased to 15.49%. At this time, it is very important to make sure all outstanding balances are paid in full each month to avoid costly finance charges and take note that cash advances are at a high interest rate of 22.99%.
There are more great benefits that go with this card that include no annual fee, up to 2% Cashback Bonus and a free Discover 2GO card that can conveniently be attached to your key chain. You will receive your cash bonus on all your purchases made with unlimited earnings and you will have the option to even double your rewards with gift cards or certificates from such partners as Blockbuster, Carnival Cruise Lines, FTD.com and The Sharper Image. If you spend up to $1500, you will receive a .25% rebate and $3000 spent will give you a .5% rebate - spend over $3000 and you will receive a 1% rebate.
By reviewing the above mentioned benefits, I think this card is a good choice for those with an average or limited credit history who are looking for a cash reward credit card. Students who plan to carry a large balance should however consider a lower interest rate card that applies the Average Daily Balance method only once and not the more costly two-cycle method that this card offers.
Posted by Colin at 12:51 PM | Permalink | Comments (0) | TrackBacks (0)April 12, 2006
Discover Miles Reward Card Reviewed
The Discover Miles card helps you travel where you want to go simply by charging your everyday purchases. You will earn one mile for every $1.00 spent and there are no blackout dates with your air travel so you have the convenience of going anywhere and anytime that you desire. Take a trip to an exotic island, enjoy a relaxing weekend at your favorite spa or get gift cards from your favorite shopping places. You can conveniently use your miles for everything from airline tickets to cash or hotel to car rental certificates - it's your choice.
Upon being approved for your Discover Miles card, you will begin enjoy the unbeatable introductory rate of 0% on balance transfers for a full 12 months. With a rate as low as this, you will be able to save hundreds of dollars and enjoy a very low monthly payment compared to before. You must be aware however, that after the special rate period ends, the APR will be between 13.99% or 15.99% depending on your credit history. Therefore it is important to try to pay off any existing balance to maintain a low monthly payment. If you are late or default on any payment made before the 12-month period is up, you will lose the 0% rate and begin the higher interest rate.
You can earn a maximum reward of 60,000 miles each year and air travel reservations and tickets require a Saturday night stay and 21 days advance notice. There are a few other important points you will want to know so read the rules and regulations carefully when applying for your card. Overall I think this card is a great choice for those who enjoy and want to take advantage of all it's available benefits it has to offer.
Savings And Rewards with Discover Gold Card
The Discover Gold card comes with many beneficial features such as various card designs to choose from, convenient online service, emergency card replacement, auto rental insurance and no liability for unauthorized transactions. Along with all of these benefits, this card comes with an attractive 0% introductory rate that can be used for 12 months on balance transfers. This is a fantastic feature to have when you want to pay off high interest bills or loans. Think of all the money you will save in a full year.
Discover Gold also comes with a reward program where cardholders can earn up to 2% in cash rebates for purchases that are made with their card. The amount of money that is spent on the card reflects the cash rebate earned, so therefore, the more you charge to your card the better the reward. Spend up to $1500 on purchases and you will receive a .25% rebate and $3000 spent will give you a .5% rebate - spend over $3000 and you will receive a 1% rebate. So as you can see, this card is also great for those who would like to get some cash back and even double their rewards for gift certificates at popular retailers and restaurants.
Like any credit card however, you must be careful when taking out a cash advance. Make sure you think it over carefully because it comes with a hefty interest rate of 20.99% that starts as soon as you receive your cash. Be sure to pay your bill on time because if you are late, your introductory or special rate will be terminated and the purchase APR will apply to any purchases or balance transfers you have made. Overall, I think this card is a good one to have because of its many features, however keep in mind that they only offer their low rate on just transfers and not on purchases. So if you are always making everyday purchases, you should look to get a card that offers a low rate on purchases as well.
Posted by Colin at 12:49 PM | Permalink | Comments (0) | TrackBacks (0)April 11, 2006
Editors Review Of The Discover Gas Reward Card
With today's high fuel prices, it pays to have a Discover Gas card. This card can be used to purchase gas at any gas station and offers up to a 10% cashback bonus on all your gas purchases and up to 1% on all other purchases. You also have the option to double your cashback bonus with many Discover Gas Partners such as Blockbuster, The Sharper Image and Sunglass Hut. You will also get an unbeatable 0% introductory rate on purchases and balance transfers for 6 months. At this rate, you will save hundreds of dollars and will have the opportunity to pay off any existing high interest loans.
Discover Gas cardholders can enjoy a 25-day grace period to make a payment and there is no annual fee charged. You must realize that if a payment is missed or late, you will lose all introductory specials or benefits and the interest rate will immediately go to the APR in effect at that time. This card has a minimum credit line of $5000 and additional cards are free. Other benefits include travel insurance, auto rental insurance plus fraud and security protection.
This card is great for those who wish to save on gas prices or receive valuable gift certificates or gift cards. I think you should always remember however, that after the introductory interest rate time is up, the interest rate is switched to the standard rate of between 7.99% and 16.99%. You'll want to make sure you pay off your monthly balance every month so that you aren't left with high payments. Other than that, this is a good choice because you can fill your tank and save at the same time.
Posted by Colin at 09:24 PM | Permalink | Comments (0) | TrackBacks (0)Discover Flag Card - Exceptional Rates And Cool Design
Here is a card that gives you an exceptional rate of 0% on both purchases and balance transfers for 6 months plus the Discover Flag Card still offers a rate as low as 7.99% after this time period, based on your account history. Also if you are want a card that offers cash back and bonuses, this card is the one for you. Receive up to 2% Cashback Bonus on your purchases, with unlimited earnings. Easily double your reward with gift cards or certificates from Discover Partners such as Blockbuster, Carnival Cruise Lines and The Sharper Image. This sure is an excellent feature to have that will give you some free enjoyable entertainment in return for all your spending. Another great feature that comes with this credit card is their new Discover 2GO card. This small card conveniently attaches to your key chain in a protective case to keep your card safe and secure.
Keep in mind that the APR for this card is low, although it is important to note that only higher qualifying applicants will receive the lowest rate available. The two Cycles Average Daily Balance method is a more costly way in applying finance charges for those who occasionally carry a balance as compared to the other methods used by most card issuers. I think this card is great for those who want to enjoy no interest for 6 months or who want to transfer balances and pay off a high interest loan. Just make sure you pay your balance in full each month after the introductory rate expires to avoid costly finance charges and payments that you cannot afford.
Posted by Colin at 07:58 PM | Permalink | Comments (0) | TrackBacks (0)April 10, 2006
Still Hope In Breaking GMAC Lease
I am the type of guy that when I want something to happen, it happens. I am persistent and tenacious - I love my Chevy Avalanche but regret the decision to lease it because the total cost of operation is truly a mortgage payment.
Rather than driving a really cool vehicle, I could be growing my net worth. At this point I was going to sit back with the "live and learn" attitiude but not me. I was told by a representative at GM that if I broke the lease via a voluntary repossession that GMAC would seek seizing my retirement savings (I live in Canada and the equivalent of a 401k is an RRSP). I called my banker to find out if this is true. Her answer was that RRSP's are protected and can not be seized in this type of situation, I guess the only entity that can go after that is the government ;)
I checked with the banker again that all will still be will with me acquiring a mortgage for an investment property even if I take a hit on my credit rating. She says it's a go. I will make sure the paper work is in progress on the investment property before finalizing a voluntary repossession on the truck. If any readers are considering taking such measures I highly recommend that you keep checking the status of things with your bank and making sure that the end result is desirable. My actions are completely against the norm so it is critical that I keep checking with the bank and explaining the situation.
Tomorrow I will further research what assets GMAC can potentially go after if I terminate the lease - or if they truly will proceed with any action.
Next steps:
1. Call GMAC to tell them I am bringing the truck back (yes, I am proceeding with the pest approach in hopes they get sick of me and voluntarily take the truck back)
2. Research the legal issues again
3. Prepare list of questions for a consultation with a lawyer.
I will post again on this topic as things unfold.
Posted by Colin at 09:10 PM | Permalink | Comments (0) | TrackBacks (0)April 09, 2006
Discover Clear Card Review
There are many excellent features and benefits that come with a Discover Clear card. It's incredible 0% introductory rate on purchases and balance transfers for 6 months is a great way to pay off high interest loans, repair your car or even fulfill those travel plans that you have always been dreaming of. Just make sure that after the last day of the billing period on your 0% rate, you pay your balance in full each month to avoid costly monthly payments on the higher interest rate that will incur.
Your new Discover Clear card also comes in a choice of 5 designs plus a Discover 2GO card to conveniently attach to your key-chain. Other benefits include travel accident insurance and auto rental insurance along with various fraud and security protection services. Also enjoy no annual fee, up to 2% cashback bonus, online account access, 100% fraud protection and up to $50,000 credit line. In addition to the cash payout, earned rebates are worth double their value at participating retailers through the Cashback Bonus Reward program.
I think this card is great because it gives you valuable credit options that allow you to transfer an existing high-interest balance to a much lower rate, plus take advantage of buying those purchases that are so hard to save for.
Posted by Colin at 02:18 AM | Permalink | Comments (0) | TrackBacks (0)April 08, 2006
Bad Feeling Lurking About Dropping Lease
I woke this morning with some very bad feelings about doing a voluntary repossession on my lease. While I can afford the lease, the vehicle payment could be funneled into a revenue producing investment.
Last night I was certain that I would be off to the GM optimum dealership to buy a car that was 2 years old and drop the truck off under a voluntary respossession. However, that gut feeling of "something bad is going to happen if I do this" kick in. I called the salesperson who sold me the truck to go over (again) what I was doing.
His advice this morning was "don't do it, GMAC will come after you" - Kenny (the salesperson) mentioned that something similar had just happened where a lease holder passed away and GMAC came after the estate to recover the costs on the remainder of the lease. Kenny mentioned that since I do have savings and equity in my house that GMAC would come knockin' on my door to recover any costs on returning the truck early.
Certainly makes a lot of sense that this would happen so the "dump the lease" plans are on hold until Monday.
If anybody wants to take over payments for the next 1.5 years let me know - I have a beautiful Chevy Avalanche LT and willing to cut a deal - How about your first months lease is free ;)
Posted by Colin at 02:34 PM | Permalink | Comments (0) | TrackBacks (0)April 07, 2006
Tommorrow - The Truck Lease is Gone!
Here I go - Is it a foolish move - Sure is going to be a relief - These are just some of the thoughts rolling through my head right now.
The wheels are in motion, a final call to my banker about breaking my lease via a voluntary repossession - I am told this will put an R8 on my credit file which means it is a voluntary repo, I spoke with Trans Union about this. The rep that I spoke with has seen this a few times in his job.
Again, I must mention that if you are going to consider an action such as this that you make sure your banker is keeping detailed notes of all transactions and moves that you are making. Be sure everything is captured on file at your bank as a repo will leave a blackmark on your credit rating.
Here are my next steps:
1. Purchase a fuel effecient car
2. Finance the car - Mainly to keep my credit in some kind of good standing
3. Drop off truck
I may contact my banker one last time for to secure a mortgage for an investment property prior to dropping off the truck. The goal is to keep spending the money that I was spending on the Avalanche only spend it wisely on an investment property - Something that will generate positive cash flow and increase in value.
Posted by Colin at 10:36 PM | Permalink | Comments (0) | TrackBacks (0)April 06, 2006
Dumping the Lease
Here I go again - Last week-end I contacted the dealership where I leased my Avalanche and the response from them was more like a lack of response. The buiness manager was a bit boisterous and mentioned that I would never get credit again. What he doesn't realize though is the excellent relationship I have with my bank.
My bank understands that I am finally growing up (I am 36 years old) and want to do smart things with my money. I have set a goal of retirement by the age of 40 and to do that I need to start seriously growing my savings. An $830/month lease on a truck does not work to the goal of super-early retirement. What I want to do as mentioned in previous posts is take the money that the truck is sucking from my bank account every month and start investing in real estate. At about $1400/month total cost of operation on my vehicle that would easily cover the payments on an investment property. Buy a house - Rent the upper portion for $900/month and the basement suite for $650/month makes for an income of $1550/month - Since I already spend $1400 every month with lease, fuel and insurance on the truck, it is very clear that I can afford to have the mortgage on my residence and have a mortgage on an investment property so what I am aiming to do is find a property where the payments will be about $1200
So it would look like this:
Rental property income: $1550/month
Mortgage payment: $1200/month
Property Taxes: Approximately $150/month
Maintenance/Insurance: Approximately $150/month
Total cost on property: $1500/month
Rental income - Total cost on property:
$1550 - $1500 = $50
A $50/month positive cash flow on a property that is building equity for me and I will repeat this every time.
So then I will be in a position of being free from the lease and operation costs of the truck. That money goes into floating a mortgage until I get renters at the point when I get renters in that money is once again freed for me to go buy another property.
If I had purchased a home in the area I currently live rather than the truck - The payments would have been on par yet had I bought a second home as an investment that home would have increased by close to $100000 since the time when I took the lease on the truck.
Anyhow, getting back to the lease dumping - I have received a call from the GM Optimum lot tonight (I went to see them last week-end) and they are considering taking the truck into their inventory and will need to know the buyout on the Avalance.
I will be calling GM tomorrow to get the exact buyout price of the Avalanche and will take things from there with the dealer after that. I will be purchasing a fuel efficient vehicle this time!
Continuation of the "Dump the GMAC Lease Saga"
Today, I called my banker again to go over things regarding my GMAC lease and terminating the lease prior to the expiration of the term. I have also called the business manager at the dealership where I got the lease.
Here is the run down:
- Banker says it will be fine. I have had no missed payments on anything and a voluntary repossession will show on my credit report. She also says this will have no impact on getting a mortgage on an investment property as my credit has been spotless to date.
If you are going to try something like this the greatest piece of advice I can offer is to make sure that your banker is documenting everything. This is what Sharron (my banker) is doing. With every call she makes notes on my file at the bank.
- The bank suggested that I call Trans Union (the reporting bereau they use) to speak with them. I have just got off the phone with Trans Union.
Here is what Trans Union said about the situation:
1. It will show up as an R8 on my credit file (meaning a repossession)
2. Trans Union's recommendation if I proceed with this is to send them a Consumer Statement of around 200 words (or less) the reason I am doing the voluntary repossession. The consumer statement will accompany my "credit black mark" so that any future creditors will be able to see the reason for breaking the lease.
Sharron also suggested before taking the step of voluntary repossession that I contact the Law Society for a referral to a lawyer who might know of GMAC lease agreement loopholes so that the whole situation of a voluntary repo can be avoided. So I am off to do that know. I will report back with how this goes.
Posted by Colin at 03:41 PM | Permalink | Comments (0) | TrackBacks (0)Returning a GMAC Lease
I mentioned in this posting http://www.crediteria.com/CreditChat/2006/04/gmac_lease_return.htm that I was going to take my Leased Chevy Avalanche back to the dealership before the expiration of the lease agreement to free up some cash flow for an investment property.
I spoke with a dealership last night and it seems that with rising fuel prices the demand for a large fuel guzzling vehicle is not that high so there is much hestitation on the part of every dealership I have spoken to about trading it in. I was talking to the sales representative last night about my plans to do a voluntary repossession to offload the truck.
They highly recommended that I talk to my banker again to ensure that there will be little to no impact on my ability to get a loan for an investment property. While I do have a verbal OK from my banker on returning the truck through a voluntary repo and taking out a mortgage on an investment property, the conversation I had with the sales rep at the dealership got me thinking and I will be calling my banker again immediately after posting this entry.
If you are in a similar situation, I highly recommend that you check, double check and triple check that all the financing you are after will actually work out - I will be going over scenarios with my banker such as:
Get mortgage for investment property
Then return the truck via a voluntary repossession.
Always remember nobody cares more about your money and finances than you do and all choices ultimately reside on your shoulders.
Posted by Colin at 01:33 PM | Permalink | Comments (0) | TrackBacks (0)Continental Airlines World MasterCard from Chase
The Continental Airlines World MasterCard is a good choice for those who have good credit and who frequently travel with Continental Airlines. Through their Airline Rewards Program, you will receive one mile for every dollar spent on your card with no yearly limit and the miles do not expire. This is a great feature because with other reward programs there generally is a limit incurred. Another advantage is that the accumulated miles can be combined with Continental's Frequent Flyer Program plus a cardholder can receive up to 11 miles per dollar at participating restaurants. See their website for full details.
Apply for your card and upon approval you will instantly receive 10,000 bonus miles after your first purchase and the annual fee payment of $85.00. It comes with a low introductory interest rate of 7.9% for six months that can be used for purchases and balance transfers to pay off high existing loans or cards. Be sure to make all payments on time during this period or this deal will immediately be forfeited and you will pay a much higher interest rate. Also, be aware that any cash advances you take out will come at a very high rate of 19.99% so you especially want to be sure to pay the amount back as soon as possible to avoid the high interest charge.
I think this card is a great choice for those who can pay their balance in full each month after the introductory rate expires to avoid costly payments and interest charges. This MasterCard is ideal for those who fly with Continental airlines so they can redeem a free ticket or the other great services it has to offer.
Posted by Colin at 01:09 PM | Permalink | Comments (0) | TrackBacks (0)Continental Airlines Platinum Card from Chase
The Continental Airlines Platinum Card from Chase is designed for those who fly frequently with Continental Airlines. Their reward program offers one mile for every dollar spent on the card with no yearly limit. Earned miles do not expire and they also can be combined with Continental's frequent flyer program for even quicker savings. Another great feature you will have with this card is the double miles that are awarded when you use your card at participating retailers, when you order airline tickets online or at the ticket booth. Also earn up to eleven additional miles per dollar spent at certain participating restaurants.
New applicants will be awarded 10,000 bonus miles when the annual fee of $65 is paid and other benefits include $500,000 in travel accident insurance, auto rental insurance plus travel and emergency assistance services plus more. Upon acceptance of your card, you will enjoy a low introductory rate of 7.99% for up to 6 months but thereafter a rate of 15.74% will apply, so at this time it is important to pay your balance in full to avoid any high interest payment. Two more important features you should be aware of is the high interest rate of 21.74% on cash advances you plus if you are late on any payment during the introductory time period, you rate will be raised immediately.
This card is a good choice if you can afford to pay in full each month after the introductory rate expires and it is especially great for Continental Airline passengers who want to take advantage of their great rewards program.
Posted by Colin at 12:54 AM | Permalink | Comments (0) | TrackBacks (0)Bank of America MilesEdge Card
The main feature of the MilesEdge card from Bank of America is the low number of points required to earn a flights. You can start traveling with only 10000 points. Which is lower than many competing credit cards. While travel rewards are the main feature of the credit card it is not the only reward. You can also enjoy the flexibility of how you can use you reward points. Your points can be used on passes to Disneyland, Disney World, Sea World, Universal Studios as well as CityPass tickets to most major cities. CityPass tickets are essentially tickets that grant you access to several major attractions in various cities.
You will earn 1000 bonus points upon your first purchase and you will earn 1 point for every dollar you spend. Points are capped at 75000 points per year. In order to earn free trips you will need to spend just over $9000 as you earn 1 point per dollar spent and your first purchase earns you 1000 points. At first this may seem as though you will never earn enough points for your free flight however there is a good chance that you will spend more than $9000 and in order to earn your points you might want to consider makeing as many purchases as possible on your card - but please do make sure you are in a financial position to pay off your bill at the end of the month for two reasons:
1. You want to avoid the burden of credit card debt that you can't pay off.
2. The interest charges may offset the benefit of the points.
While earning rewards points with your credit card is an excellent way to get something extra it is important to always check the terms and conditions page which is usually near the bottom of the application page. It can be very enticing to jump in and start earning rewards however many people overlook the fees associated with the credit card. Almost all rewards credit cards have an annual fee, at the time of publishing this the annual fee for the Bank of America MilesEdge card is $19, which is very low for a rewards card. Most rewards cards have fees closer to $100 or more.
I recommend the MilesEdge card to those who might not travel frequently but live in one of the cities that offer the "CityPass" tickets. You can take your family out to see the attractions in your city that you might not otherwise go to visit. The CityPass tickets can be redeemed at the time of publishing for 5000 points.
Posted by Colin at 12:42 AM | Permalink | Comments (0) | TrackBacks (0)April 05, 2006
Review Of US Airways Visa Signature Card from Bank of America
The US Airways Signature Visa card offers several benefits to cardholders such as:
One mile per dollar spent in net purchases
Double miles on US Airways purchases
Unlimited Space Available Upgrades for Purchase
Preferred check-in
Preferred boarding
Annual $99 companion tickets
Complimentary US Airways Club® pass
No preset spending limit on purchases
Free 24/7 personal concierge service
Visa Dining Privileges - visit the Visa Dining Privileges Web site
Preferred Travel Program offers special services and automatic upgrades at select Hotels
While the above features are of great benefit the terms and conditions for the credit card state that there is a maximum of 50000 dividend points that can be accumulated so if you are making several large purchases in the hopes of earning unlimited airmiles, your points will be capped at 50000. The is not a huge issue for most people but do keep that in mind when you apply for the card.
Other factors to take into account with the Bank of America US Airways Signature Visa card are:
Annual Fee of $90
Minimum finance charge of $1.50 on purchase
Annual Percentage Rate Information:
Purchases & Balance Transfers: 1.9% for first six months and a variable rate of 16.24% thereafter.
Cash Advances: Variable rate of 22.24%
Penalty Rate: 30.24% What are the variable rates? The rates are variable as they are calculated based on the prime lending rate. The rates are determined as follows - prime rate plus 9.99% for Purchases - prime rate plus 15.99% for Cash Advances - prime rate plus 23.99% for penalty APR's.
Overall this is a good credit card however my preference goes to the Alaska Airlines card. This is more due to the fact that I have always an had excellent travel experience aboard Alaska flights. This is something you should take into account when applying for your travel rewards credit card is which airline do you prefer. You might have had great experiences flying with US Airways so if that's the case this credit card might be perfect for you.
Posted by Colin at 05:14 PM | Permalink | Comments (0) | TrackBacks (0)Review Of The Alaska Airlines Visa Signature From Bank of America
The Alaska Airlines Visa Signature is obviously a travel rewards credit card. Other than what you instictively know about this card, the fact that you earn points on Alaska Airlines, you also will receive VIP treatment with the Visa Dining Priveleges.
The Dining Priveleges allows you to make reservations at fully-booked restaurants during prime hours as well offers you discounts of 15% to 20% off your meals during non-peak hours.
Other key benefits to the Alaska Airlines Visa Signature5,000 Bonus Miles
- 1 mile for every dollar spent
- No mileage cap
- 2,000 anniversary Bonus Miles - Receive 2000 bonus miles each year that you renew your card
- Earn up to 6 miles per dollar at participating restaurants
- 2 miles for every dollar in purchases of Alaska Airlines/Horizon Air tickets and vacation packages
- $50 round-trip companion ticket
- 2 Board Room Passes
Along with the financial perks listed above you also get zero liabality protection on internet purchases, lost luggage reimbursement, legal, medical, and travellers assistance and much more.
Who should apply for this card?
You should apply for this card if you travel frequently and enjoy dining out frequently. The Alaska Airlines Visa® Signature From Bank of America is intended for those with good credit and enjoy the finer things in life.
Capital One Visa Business Platinum Credit Card for Small Businesses Review
The small business platinum Visa card from Capital One provides small businesses with some great incentives and rewards such as:
- 0% Introductory Purchase APR
- No Annual Fee
- Earn miles for business purchases
You will enjoy earning No Hassle Miles on all your business expenses while enabling you to keep your business and personal expenses separate (very important when it comes to tax season).
The really great feature about Capital One credit cards is the airline rewards are not restricted - as long as the airline is a U.S. based airline you can redeem your points with the airline of your choice - there are no blackout dates either which makes redeeming your points much more convenient.
To give your business a more professional look you can also have your card customized to include your company logo or include an image of yourself - note that including an image of yourself also provides an added security feature
Besides the travel rewards that you will earn, there are many more business savings for you too through the Visa Business Partner Advantage program offered through Capital One. This program will entitle you to discounts with companies that you will probably make business purchases with.
Here is a list of some of the discounts you will enjoy:
- Choice Hotels Save 15%
- DHL - Up to 15% savings
- Expedia Business Advantage - Free enrollment and $20 gift card
- IBM - 5% to 20% savings on products and services
- OfficeMax - $15 off your purchase of $75 or more
- Pitney Bowes - 90-day risk-free trial plus $50 in free postage
- Thrifty Car Rental - One car class upgrade or 20% off
- Cingular Wireless - Save 5% off your monthly access fee.
- H&R Block - Tax fee rebate
- Ace Hardware - Save $10 at acehardware.com on $55 or more
- AT&T Business - Order DSL online and receive $120!
- Bally Total Fitness - Save $50 on a new membership
- CareerBuilder.com - Save 35% when you hire
- Carrot Ink - Save 15% and get free shipping
- eBags.com - Save 20% on your entire purchase
- Save on NetZero Internet services
- Omaha Steaks - Save over 45% on 6 Sirloin Steaks
- Save $10 on your purchase of $35 or more from Penny Wise Office Products
- Save $20 on your purchase of $100 or more at Samsonite Company Stores or samsonitecompanystores.com when you pay with your Visa
- Sprint - Receive 15% more minutes FREE
- Stamps.com - Get a $35 FREE Postage Offer
- T-Mobile - FREE phone offer for Visa cardholders
- Things Remembered - Save 20% on any purchase!
- NEXTEL - Get a FREE Motorola phone and more
- Jos A Bank - Save 20% off the regular price
- OfficeMax - $10 off your purchase of $75 or more
As you can see there are many great rewards offered by the Capital One Visa Business Platinum small business credit card. Points towards travel and savings with stores that you probably already make business purchases with - what more reason do you need? This is a great card to support your business!
Posted by Colin at 03:15 AM | Permalink | Comments (1) | TrackBacks (0)