During any economic downturn the prevalence of fraud increases, and in 2010 consumers need to be more vigilant than every about various scams to steal their money, financial identities, or both. Here are three ways to help protect yourself and your bank and credit card accounts from thieves and criminals intent on sabotaging your savings and taking advantage of your good name and credit history.
Invest in a Paper Shredder
Old bank statements, canceled checks, purchase receipts and various other financial documents may be your trash, but they are a con artist or thief’s gold mine. Buy a shredder and use it to shred up all documents related to your finances or other personal information, otherwise they may be plucked from your garbage or even from a public landfill and used against you.
Check your Credit History
Without paying for it you can order a copy of your credit report once a year and review it for discrepancies, mistakes, or evidence that someone else is tampering with it. Take advantage of this opportunity – otherwise someone with bad intentions may take advantage of you.
Guard Passwords and PINs
Once a thief has your password on personal identification number they can burrow down deep into your personal data and – if they are so inclined – wreak havoc on your finances or steal you blind while you aren’t even looking. So protect vital info like passwords by never writing them down and frequently updating them and making them harder to figure out or decode.
Beware of Phishing Schemes
One of the easiest ways to steal is to send you a notice by email that looks just like it came from your own financial institution. Cyber criminals can even use the same logo or create a fake website to convince you, but you should never reply to an email asking you to reply with any confidential info such as your social security number or account password. If you get an email and cannot tell if it is legitimate or not, just phone your bank or credit card company instead.
Shredding and guarding in 2010 could save you from a really damaging victimization by a financial fraud scheme, so be alert, follow common sense guidelines, and then enjoy a more stress-free and safe 2010.
Offshore Pro Group
Saturday, 15 May 2010
Get a Credit Card Despite Terrible Credit
Even if you were turned down for a credit card or have such bad credit that nobody will lend to you, it is still possible for you to get a valid credit card. That’s right, even if everyone has rejected your credit card applications the chances are extremely high that you can walk into your local bank and walk out with a brand new MasterCard or VISA Card that will work credit cards are accepted. Use it for groceries, to buy gas, to shop at the mall, to purchase souvenirs while on vacation, or to rent movies or pay for a fancy meal in your favorite gourmet restaurant.
The kind of card you want is a “collateralized” credit card, because it has collateral or actual cash to back it up in the event you fail to repay your balance. Ordinary credit cards, on the other hand, are not backed by anything but good faith – which is why lenders and credit card issuers will not grant you one unless they think you have a strong record of repaying your obligations. But if you get a collateralized credit card it will be tied to your checking or savings account in much the same way that an ATM card is connected to that kind of bank account.
Your bank will put a limit on how much you can spend based on how many dollars are held in your matching bank account. Put $500 in the credit card bank account, for example, and your bank will typically issue you a credit card with a $500 spending limit. As you spend money during the month, the limit shrinks – just as it does on a conventional credit card – and when you repay the card by paying off your outstanding balance then the limit goes back up. The major difference is that with money in the account to back up the credit card you are able to get a VISA or MasterCard when you would otherwise be totally refused and rejected.
The best feature of these unique credit cards, however, is that they give you a way to build up your credit rating. Once you get one and start using it responsibly, make sure your bank reports the account activity to the major credit rating services on a regular basis. Before long you will have good enough credit that you will be able to apply and get your own traditional style non-collateral credit card, even if you were rejected in the past.
Offshore Pro Group
The kind of card you want is a “collateralized” credit card, because it has collateral or actual cash to back it up in the event you fail to repay your balance. Ordinary credit cards, on the other hand, are not backed by anything but good faith – which is why lenders and credit card issuers will not grant you one unless they think you have a strong record of repaying your obligations. But if you get a collateralized credit card it will be tied to your checking or savings account in much the same way that an ATM card is connected to that kind of bank account.
Your bank will put a limit on how much you can spend based on how many dollars are held in your matching bank account. Put $500 in the credit card bank account, for example, and your bank will typically issue you a credit card with a $500 spending limit. As you spend money during the month, the limit shrinks – just as it does on a conventional credit card – and when you repay the card by paying off your outstanding balance then the limit goes back up. The major difference is that with money in the account to back up the credit card you are able to get a VISA or MasterCard when you would otherwise be totally refused and rejected.
The best feature of these unique credit cards, however, is that they give you a way to build up your credit rating. Once you get one and start using it responsibly, make sure your bank reports the account activity to the major credit rating services on a regular basis. Before long you will have good enough credit that you will be able to apply and get your own traditional style non-collateral credit card, even if you were rejected in the past.
Offshore Pro Group
Credit Cards for Kids: Some have way-cool parental controls
Teaching your son or daughter how to manage money is an increasingly important aspect of good parenting, and if you choose the right kind of credit card you can get some help from your card company. That’s because many credit card issuers offer special products in the form of credit cards that have built-in parental controls.
You get the peace of mind and confidence of knowing that you child will not be able to misuse or abuse the card – which could destroy your own credit rating and create havoc. You also get help teaching your kids how to use a credit card in the grown-up world of modern finance and commerce. They can learn safely and securely, because even if they accidentally slip up and make an innocent mistake – like going over their spending limit – the automatic card controls will kick in and save the day.
These cards put the son or daughter on your own credit card account as another card user or cardholder, which makes it easy for them to get a card even if they are still too young to have a credit history or good credit score. But since you are being exposed to liability by having them on your account, the credit card features also offer various types of protection. You can set the limit for how much the kid is able to withdraw at one time, for example, from an ATM machine. If they go to the ATM and your imposed limit is $25 per day and they try to withdraw more than that, the transaction will be blocked.
But you can also sign up for e-mail alerts, which are super-cool. Let’s say your child has a spending limit of $100 but they try to get access to $150. You will get an email within 24 hours telling you all about it. If they try to use the credit card in designated places that are inappropriate, you can also get notifications about that kind of behavior. Your son who is 17 tries to use the card to rent a car, a hotel room, or pay to get into a place where only adults are allowed and not only is his card usage stopped but you get notified. Your daughter tries to use the credit card in a restaurant to buy alcohol – even though she is under age – and you find out with a convenient e-mail. The features vary from card to card, and you can choose among those that offered to set your own menu of preferences.
So instead of being afraid to let your child have a credit card, take advantage of these great features to train your child to be a more responsible and savvy consumer. It is a lesson that will reward them for the rest of their lives.
Offshore Pro Group
You get the peace of mind and confidence of knowing that you child will not be able to misuse or abuse the card – which could destroy your own credit rating and create havoc. You also get help teaching your kids how to use a credit card in the grown-up world of modern finance and commerce. They can learn safely and securely, because even if they accidentally slip up and make an innocent mistake – like going over their spending limit – the automatic card controls will kick in and save the day.
These cards put the son or daughter on your own credit card account as another card user or cardholder, which makes it easy for them to get a card even if they are still too young to have a credit history or good credit score. But since you are being exposed to liability by having them on your account, the credit card features also offer various types of protection. You can set the limit for how much the kid is able to withdraw at one time, for example, from an ATM machine. If they go to the ATM and your imposed limit is $25 per day and they try to withdraw more than that, the transaction will be blocked.
But you can also sign up for e-mail alerts, which are super-cool. Let’s say your child has a spending limit of $100 but they try to get access to $150. You will get an email within 24 hours telling you all about it. If they try to use the credit card in designated places that are inappropriate, you can also get notifications about that kind of behavior. Your son who is 17 tries to use the card to rent a car, a hotel room, or pay to get into a place where only adults are allowed and not only is his card usage stopped but you get notified. Your daughter tries to use the credit card in a restaurant to buy alcohol – even though she is under age – and you find out with a convenient e-mail. The features vary from card to card, and you can choose among those that offered to set your own menu of preferences.
So instead of being afraid to let your child have a credit card, take advantage of these great features to train your child to be a more responsible and savvy consumer. It is a lesson that will reward them for the rest of their lives.
Offshore Pro Group
Thursday, 13 May 2010
How are Debit Cards Different from Credit Cards?
People often ask what exactly are debit cards and how have they managed to grow in popularity so much since the credit crisis began. Also commonly known as ATM cards – since they can be used in these automatic teller machines to gain access to bank checking or savings accounts – debit cards are a versatile and handy type of plastic and they share many characteristics with ordinary credit cards.
But while a credit card can be used to carry a balance as a revolving line of credit, a debit card can only be used to take money directly from a deposit account – like a savings or checking account – that has money in it already. In other words it can debit an existing source of cash, but cannot be used in place of cash as a means to borrow money you do not already have in the bank.
That feature limits the ways that debit cards can be used, of course, but it also puts limits on how much they can be misused or abused. You can only buy what you can already afford to pay for, in other words, whereas with a credit card you may get into trouble by spending money one month that you are unable to repay when the bill arrives the following month. For that reason debit cards have actually grown in popularity since the start of the recession and credit crisis, because people can use them to make purchases instead of carrying cash, but they cannot use them to take out loans or buy things with money they do not actually have in the bank.
When they were first created, most people used their bank debit cards only at ATM machines, like when the bank lobby was closed or they were traveling out of town. But because a debit card can also be used in place of a Visa card or other credit card, they have now become much more popular as a less risky alternative to the traditional credit card. They offer the convenience of plastic carried in the wallet, in other words, without the option to use them irresponsibly and wind up going way over your realistic budget.
And for those whose credit has been damaged by the credit crisis – and who now find it impossible to get a credit card application approved – the debit card is simpler to acquire. You do not have to have a great credit score to carry an ATM card and you don’t have to fill out complicated applications forms. All you really need to do is open a bank account, which is something that even people with bad credit are often able to do with no problem.
Offshore Pro Group
But while a credit card can be used to carry a balance as a revolving line of credit, a debit card can only be used to take money directly from a deposit account – like a savings or checking account – that has money in it already. In other words it can debit an existing source of cash, but cannot be used in place of cash as a means to borrow money you do not already have in the bank.
That feature limits the ways that debit cards can be used, of course, but it also puts limits on how much they can be misused or abused. You can only buy what you can already afford to pay for, in other words, whereas with a credit card you may get into trouble by spending money one month that you are unable to repay when the bill arrives the following month. For that reason debit cards have actually grown in popularity since the start of the recession and credit crisis, because people can use them to make purchases instead of carrying cash, but they cannot use them to take out loans or buy things with money they do not actually have in the bank.
When they were first created, most people used their bank debit cards only at ATM machines, like when the bank lobby was closed or they were traveling out of town. But because a debit card can also be used in place of a Visa card or other credit card, they have now become much more popular as a less risky alternative to the traditional credit card. They offer the convenience of plastic carried in the wallet, in other words, without the option to use them irresponsibly and wind up going way over your realistic budget.
And for those whose credit has been damaged by the credit crisis – and who now find it impossible to get a credit card application approved – the debit card is simpler to acquire. You do not have to have a great credit score to carry an ATM card and you don’t have to fill out complicated applications forms. All you really need to do is open a bank account, which is something that even people with bad credit are often able to do with no problem.
Offshore Pro Group
Wednesday, 12 May 2010
Using Prepaid Credit Cards to Manage a Tight Budget
Prepaid credit cards – those that don’t have a line of credit or credit limit established by a card company but are instead based on how much cash the cardholder keeps on deposit in the card account – are gaining in popularity faster than any other kind of credit card. That’s mostly because they can be easily gotten even by people who get turned down for other more traditional types of credit cards. Even with bad credit, a bankruptcy, a foreclosure, or little or no income and assets it is still possible to succeed at getting your own prepaid credit card, and it works anywhere that major cards like Visa and Mastercard are accepted. But what many people do not realize is that the prepaid credit card is also one of the best tools you can use to help you manage your budget and personal expenses.
To use a prepaid card as a budget tool, first create your budget. Figure out how much money you have to spend, what your main expenses are each month, and how many dollars you have to spend in each category such as gasoline, rent, groceries, and so forth. Then get a prepaid card and deposit your monthly budget amount into that account. You then can use the card for those expenses, and you’ll be forced to manage the card in such a way that it does not run out before the end of the month.
You can even have more than one card – like one for groceries and another for car expenses. You can even get a prepaid card that lets you make payments online for things like your mortgage payment or rent, and once all of your big ticket budget items are designated and tied to a card, all you have to do in order to keep within your predetermined budget is to not totally max out the card until the month is over.
Offshore Pro Group
To use a prepaid card as a budget tool, first create your budget. Figure out how much money you have to spend, what your main expenses are each month, and how many dollars you have to spend in each category such as gasoline, rent, groceries, and so forth. Then get a prepaid card and deposit your monthly budget amount into that account. You then can use the card for those expenses, and you’ll be forced to manage the card in such a way that it does not run out before the end of the month.
You can even have more than one card – like one for groceries and another for car expenses. You can even get a prepaid card that lets you make payments online for things like your mortgage payment or rent, and once all of your big ticket budget items are designated and tied to a card, all you have to do in order to keep within your predetermined budget is to not totally max out the card until the month is over.
Offshore Pro Group
A Totally New Kind of Gold Card
Everyone has seen the infomercials and newspaper ads about selling gold because gold prices are historically high. But while you may not be ready to trade in your high school ring or grandmother’s necklace quite yet, you can start investing in gold by applying for a new kind of credit card that has a credit limit determined by current gold prices.
A company by the name of Gold Solutions Marketing in Florida is the brainchild behind the gold card. But unlike the American Express gold card or other VIP cardholder cards that are gold, this one is backed by gold that is held in a special vault in Delaware. Your credit card is tied to that gold so that the precious metal acts like collateral, and then as a cardholder you are given a credit limit that is equal to about 75 percent of the value of that gold bullion.
Credit card activity will be reported to the credit bureaus just like with a normal credit card, and because gold prices continually fluctuate the card limit will be reviewed at least once a year and adjusted accordingly to keep up with the value of gold. That means that if there is a sudden spike in gold prices you could automatically get a much higher credit limit, but by the same token your spending limit could be curtailed if the price of gold plummets.
The gold that is deposited belongs to you, which means you have to buy it up front to set up the card. But if you later decide to close the account you are entitled to receive either a cash payment based on your gold’s price on that day or you can get paid in gold coins and will be given the same amount of gold you started off with in the account.
The gold card is a bit of a gimmick that is probably not ideal for every cardholder. But those who will benefit from it the most are people who own some gold bullion and also need a secured credit card because they have bad credit. They can put their gold to good use to get a card, start rebuilding their credit, and eventually qualify for a traditional non-secured card. Meantime their gold is in a safe place and will be returned to them if they decide to close the gold card account.
Offshore Pro Group
A company by the name of Gold Solutions Marketing in Florida is the brainchild behind the gold card. But unlike the American Express gold card or other VIP cardholder cards that are gold, this one is backed by gold that is held in a special vault in Delaware. Your credit card is tied to that gold so that the precious metal acts like collateral, and then as a cardholder you are given a credit limit that is equal to about 75 percent of the value of that gold bullion.
Credit card activity will be reported to the credit bureaus just like with a normal credit card, and because gold prices continually fluctuate the card limit will be reviewed at least once a year and adjusted accordingly to keep up with the value of gold. That means that if there is a sudden spike in gold prices you could automatically get a much higher credit limit, but by the same token your spending limit could be curtailed if the price of gold plummets.
The gold that is deposited belongs to you, which means you have to buy it up front to set up the card. But if you later decide to close the account you are entitled to receive either a cash payment based on your gold’s price on that day or you can get paid in gold coins and will be given the same amount of gold you started off with in the account.
The gold card is a bit of a gimmick that is probably not ideal for every cardholder. But those who will benefit from it the most are people who own some gold bullion and also need a secured credit card because they have bad credit. They can put their gold to good use to get a card, start rebuilding their credit, and eventually qualify for a traditional non-secured card. Meantime their gold is in a safe place and will be returned to them if they decide to close the gold card account.
Offshore Pro Group
Frequently Asked Questions on Pre-paid Credit Cards
Frequently Asked Questions on Pre-paid Credit Cards
What is a prepaid credit card?
A prepaid card looks like a credit card, but works differently. You can use it everywhere MasterCard is accepted, but you can only spend up to the available balance on your card. With a prepaid card, you load funds onto your Card and use that money to make purchases and get cash - you are not borrowing money from a bank or other financial institution.
How does a prepaid card work?
Your prepaid credit card can be used anywhere MasterCard is accepted, including ATM's. The cardholder signs for purchases and gets a receipt. Unlike a credit card, though, each purchase is deducted from the pre-paid balance on the card.
Where can I use my prepaid credit card?
You may use your prepaid card to make purchases at over 21 million locations worldwide, get cash back at over 600,000 ATMs nationwide, make online purchases, buy airline tickets, make hotel or rental car reservations, pay for gasoline at the pump and more!
How is a prepaid credit card different from a credit card?
The prepaid credit card looks like a credit card - it has the Visa or MasterCard logo and hologram -and allows the convenience of cashless purchases like a signature-based credit card, with no PIN input required at the point-of-sale. However, your card accesses pre-loaded money from an account you fund with your funding source(s).
As a prepaid card, there is no "line of credit" extended. This means that your spending limit is determined by the amount of money that you have loaded to the card. Best of all, because it's not a credit card, there are no finance charges, no late fees, and no accumulation of debt.
What are the advantages of the prepaid card over cash?
The safety of carrying a piece of plastic with access to your cash, versus carrying a fold of bills in your pocket, is pretty straightforward. If you lose the cash or leave it somewhere where it is stolen, it is gone forever. If you lose your card or leave it somewhere, unless you put your PIN code on your Card (which you should NEVER do), your money is still safe.
What happens if the card is lost or stolen?
You should call the customer service to report it missing immediately and you won't be responsible for any unauthorized transactions. Remember to keep your card in a safe place and never lend it to anyone.
How is a prepaid credit card different from a debit card?
It is actually a pre-paid, reloadable card and completely separate from the checking or savings account, or credit or debit funding source account(s) that you use to load money to the card. Spending ability is limited to the amount of money that you separately load onto the card and store in the card account. When you purchase an item with your card, the purchase amount is withdrawn from your card spending balance, and never directly drawn from a funding source account that you use to load money onto the card.
With a debit card, overdraft protection may mask the actual account balance, resulting in over-spending. You won't be able to use a debit card for making a reservation on hotels and rental cars.
Can the prepaid credit card be used at ATMs?
Yes, your card will work at ATMs. You can receive cash with your card and a PIN (Personal Identification Number). There is usually some withdrawal fee at most ATMs.
How can I load money to the Citi Cash Card account?
Depending on which prepaid card you have, there are several ways to add value to your card using the followings:
* Check, Cashier's Check or Money Order
* Wire Transfer
* Regular Credit Card
* Online Card Load
* Western Union and other fund transfer services
Are there spending limits?
The beauty of the pre-paid credit card is that you set your own limits. Your spending power is limited only by how much money is loaded onto the card, up to the card issuer assigned value. When the money is gone, you ust need to load more money to it.
Is a security deposit required to open a prepaid card?
No.
Will my prepaid credit card have interest or finance charges?
Because you are not borrowing money, you will not be required to pay interest or finance charges on your Card.
When I use my prepaid card, is the money taken from my card right away?
Yes.
What happens if I return something I purchased with a prepaid card for a store refund?
Just like a regular credit card, the amount refunded will appear as a credit on your card account.
What if there isn't enough money on my card to cover a purchase?
The transaction will be declined if you do not have enough money loaded on your card.
Offshore Pro Group
What is a prepaid credit card?
A prepaid card looks like a credit card, but works differently. You can use it everywhere MasterCard is accepted, but you can only spend up to the available balance on your card. With a prepaid card, you load funds onto your Card and use that money to make purchases and get cash - you are not borrowing money from a bank or other financial institution.
How does a prepaid card work?
Your prepaid credit card can be used anywhere MasterCard is accepted, including ATM's. The cardholder signs for purchases and gets a receipt. Unlike a credit card, though, each purchase is deducted from the pre-paid balance on the card.
Where can I use my prepaid credit card?
You may use your prepaid card to make purchases at over 21 million locations worldwide, get cash back at over 600,000 ATMs nationwide, make online purchases, buy airline tickets, make hotel or rental car reservations, pay for gasoline at the pump and more!
How is a prepaid credit card different from a credit card?
The prepaid credit card looks like a credit card - it has the Visa or MasterCard logo and hologram -and allows the convenience of cashless purchases like a signature-based credit card, with no PIN input required at the point-of-sale. However, your card accesses pre-loaded money from an account you fund with your funding source(s).
As a prepaid card, there is no "line of credit" extended. This means that your spending limit is determined by the amount of money that you have loaded to the card. Best of all, because it's not a credit card, there are no finance charges, no late fees, and no accumulation of debt.
What are the advantages of the prepaid card over cash?
The safety of carrying a piece of plastic with access to your cash, versus carrying a fold of bills in your pocket, is pretty straightforward. If you lose the cash or leave it somewhere where it is stolen, it is gone forever. If you lose your card or leave it somewhere, unless you put your PIN code on your Card (which you should NEVER do), your money is still safe.
What happens if the card is lost or stolen?
You should call the customer service to report it missing immediately and you won't be responsible for any unauthorized transactions. Remember to keep your card in a safe place and never lend it to anyone.
How is a prepaid credit card different from a debit card?
It is actually a pre-paid, reloadable card and completely separate from the checking or savings account, or credit or debit funding source account(s) that you use to load money to the card. Spending ability is limited to the amount of money that you separately load onto the card and store in the card account. When you purchase an item with your card, the purchase amount is withdrawn from your card spending balance, and never directly drawn from a funding source account that you use to load money onto the card.
With a debit card, overdraft protection may mask the actual account balance, resulting in over-spending. You won't be able to use a debit card for making a reservation on hotels and rental cars.
Can the prepaid credit card be used at ATMs?
Yes, your card will work at ATMs. You can receive cash with your card and a PIN (Personal Identification Number). There is usually some withdrawal fee at most ATMs.
How can I load money to the Citi Cash Card account?
Depending on which prepaid card you have, there are several ways to add value to your card using the followings:
* Check, Cashier's Check or Money Order
* Wire Transfer
* Regular Credit Card
* Online Card Load
* Western Union and other fund transfer services
Are there spending limits?
The beauty of the pre-paid credit card is that you set your own limits. Your spending power is limited only by how much money is loaded onto the card, up to the card issuer assigned value. When the money is gone, you ust need to load more money to it.
Is a security deposit required to open a prepaid card?
No.
Will my prepaid credit card have interest or finance charges?
Because you are not borrowing money, you will not be required to pay interest or finance charges on your Card.
When I use my prepaid card, is the money taken from my card right away?
Yes.
What happens if I return something I purchased with a prepaid card for a store refund?
Just like a regular credit card, the amount refunded will appear as a credit on your card account.
What if there isn't enough money on my card to cover a purchase?
The transaction will be declined if you do not have enough money loaded on your card.
Offshore Pro Group
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