MWC 2018 | All-in-one wallet card to spell end of individual credit card?

A single card that allows shoppers to access various payment options from multiple accounts is being displayed at the Mobile World Congress (MWC) in Barcelona. Jim Drury reports.

source: interaksyon.com

The Best Student Credit Cards of 2016

These days, if you want to be able to buy a house later or get a good deal on your insurance rates, you need good credit. One of the easiest ways to build good credit is with the help of a credit card. If you are responsible in your use of credit, making occasional purchases and paying them in full before you are charged interest, you can build a good credit history.

The best student credit cards in Canada help those who have little to no credit established themselves. You can start building a financial reputation with the right credit card. Below are the best credit cards for students.


Scotiabank SCENE VISA Card – You can build your credit and earn cool movie rewards with the SCENE VISA card. Earn one point for each dollar you spend anywhere, and redeem those points for movie admissions and concessions. You can earn extra points (five for each dollar spent) at participating Cineplex locations.

There is no annual fee with this student credit card, and you get 2,000 bonus points with your first SCENE VISA card purchase. That’s enough for up to two free movies. Buy what you normally would, pay off the balance, and then get your entertainment for free. (Full Review)


MBNA Rewards Student Awards Card – This is a very straightforward credit card that can be used to build your credit history while earning rewards. You receive one point for each dollar that you spend. The MBNA Rewards Student Awards card also provides you with 1,000 points after your first purchase, and you get 1,000 bonus points each year on your cardmember anniversary. Points are flexible, and can be redeemed for merchandise, travel, cash back, and even charitable donations.

This card comes with no annual fee. You are also not capped on how many rewards points you can earn. The interest rate is 19.99% for all transactions from purchases to balance transfers to cash advances.


Scotiabank L’earn VISA Card – Earn up to 1% back every year with the L’earn VISA Card from Scotiabank. There is a tiered rewards system, starting at 0.25% cash back and working up to 1%. If you use your card wisely, though, paying for things you would buy anyway, it’s possible for you to earn rewards quickly and get that cash back faster.

There is no annual fee with this credit card, which means that you don’t have to worry about extra costs. The interest rate is 19.99% on purchases and 21.99% on cash advances and balance transfers. You can also get special discounts with various partners. Scotia bank also offers student credit tips for free so that you can learn how to best manage your credit card. You need to apply for this card at a branch, or by calling 1-888-882-8958.

source: canadianfinanceblog.com

Banks ordered to provide more detailed info on credit card business

MANILA - The Bangko Sentral ng Pilipinas (BSP) is requiring banks and other financial institutions to submit monthly credit card business activity reports (CCBAR) containing data on credit card issuers, cardholders, complaints, and card use location.

The BSP intends to enhance its credit card database to ensure transparency and availability of information on credit card operations and complaints resolution, and afford analysis of the credit card industry for policy-making.

The new rules are contained in Circular 812.

The CCBAR, which will be submitted in monthly, aims to ensure consumer protection as well as managing risks involved in credit card transactions, banks/quasi-banks including subsidiaries and affiliates.

The BSP aims to capture more credit card data, including the number of credit card holders in the country. To date, the BSP regularly reports data on credit card receivables of banks, including that portion which is non-performing.

Credit card receivables climbed 11 percent to P131.9 billion in the first quarter, from P118.8 billion in the same three-month period last year. Universal and commercial banks held bulk of the receivables at 82.6 percent, with their subsidiaries cornering the remaining 17.3 percent.

Non-performing receivables increased to 11.2 percent of total credit card transactions, but eased to 13 percent of big banks' total amount of bad loans.

Recently, the BSP issued new rules to strengthen the security banks and non-bank financial institutions' electronic products, including credit cards.

The regulation requires BSP-supervised institutions to adopt end-to-end Triple Data Encryption Standard (3DES) for the whole ATM network by January 1 and shift from magnetic stripe technology to more secure WMV chip-enabled cards by August 1, 2017.

source: interaksyon.com

Citibank, Visa launch contactless credit card payment scheme

MANILA - Citi and Visa have introduced the first contactless credit card payment technology in the Philippines.

Called the Citibank Visa payWave, the new product is expected to widen Citi’s share of the local credit card business, which is contributing half of its revenues in the country.

Bea Tan, Citi consumer business manager, said the bank’s sales posted a good double-digit growth in the first half of the year on the back of the country’s sustained economic growth.

“It’s (sales) actually been pretty good. In the first half of the year, our growth has exceeded our expectations. The country is doing well in terms of drivers and profitability. It’s good to see that the country is growing so that we’re introducing innovation to our customers. Hopefully, this will change the payment behavior of our customers,” Tan told reporters during the payWave launch last week.

She said the innovation in the mode of payment for credit card transactions would support growth in the bank’s consumer business.

Tan said the bank’s credit card business contributes 50 percent of its total sales. Citi has 1 million credit card holders in the country, where it has a 20 percent share of credit card transactions.

 “In 2014, we foresee that given that the economy is doing very well for us, we will be able to open up more segments. We’re looking at high double-digit growth for next year in terms of customer acquisition. It will be something we can focus on next year,” Tan said.

Iain Jamieson, Visa country manager, said the credit card transactions would increase significantly, particularly the frequency of credit card use.

“Contactless payments will spur the country’s evolution towards cashless society,” he said.

With the new Citibank Visa payWave, cardholders can simply wave their cards in front of a Visa payWave reader to pay for their goods. The contactless payment would reduce time waiting in checkout queues for everyday purchases such as groceries, fastfood meals, coffee, and movie tickets.

The Citibank card holders don’t need to sign for purchases below P2,000 but are given the option to collect the receipt.

On average, Visa payWave transactions can be up to three times faster than cash payments, reducing queuing times for both cardholders and retailers.

“We are delighted to introduce our clients to a new way to pay with their credit cards where they simply wave, pay and go,” Citi country officer Batara Sianturi said.

Citibank has seven merchant partners so far, including Coffee Bean and Tea Leaf, Eastwood Cinemas, Lucky China Cinemas, McDonalds, Mercury Drug, Newport Cinemas and Robinsons Supermarkets.

Citi also has pioneered mobile-based payments with credit cards, real time account inquiry with SMS and account management convenience with combined credit limit for multiple Citi cardholders.

source: interaksyon.com

NBI nabs 6 Taiwanese implicated in credit card fraud

MANILA - The National Bureau of Investigation has arrested six Taiwanese nationals allegedly involved in credit card fraud and the duplication of ATM cards. One of them tried to bribe the agents with P500,000, and was promotly slapped with a separate charge of attempted bribery.

A report submitted to NBI Director Nonnatus Caesar Rojas on Thursday named those arrested by members of the NBI Cybercrime Division as: Cheng-Yen Yu, 25; Chih-Cheng Chang, 35; Chia-Hung Hung, 26; Sen-Yuan Wu, 24; Chun-Kai Tsou, 25 and Wen-Hao Wu, 26, all with address at Unit 4D, Regency Park Townhomes, J. Abad Santos Hi-Way corner E. Aguinaldo Street, Clark Special Economic Zone in Pampanga.

The six have been charged with violation of Republic Act 8484 or the Access, Devices, Regulation Act of 1998 before the Pampanga Prosecutor's Office.

Chih-Cheng Chang is also facing an additional complaint for corruption of public officials for attempting to bribe the NBI operatives.

Seized by the NBI-CCD team from the suspects were the P500,000 cash used in trying to bribe the agents, counterfeit automated teller machine cards and counterfeit credit cards, electronic gadgets used in illegal duplication of credit cards and ATM cards, and documents.

The NBI arrested the six Taiwanese nationals last June 4 after a series of surveillance operations.

Found in the suspects' possession were several electronic gadgets, devices, ATM cards, credit cards, and documents with Chinese characters which were being used and intended to be used in the illegal activities of duplication, unauthorized use/access of credit cards/ATM cards.

source: interaksyon.com

Bank of America's Newest Credit Card Pays You to Repay Them

A new credit card from Bank of America (BAC) will offer cash rewards up to $120 a year to cardholders who pay off more than the minimum balance every month.

The BankAmericard Better Balance Rewards card gives cardholders $25 per quarter as long as they always pay their bill on time and pay off more than their monthly minimum due amount. Cardholders who also have a Bank of America bank account get another $5 each quarter, bringing the total to $120 a year just for staying on top of their bills and making an effort to bringing down their debt. The rewards can be cashed out or put toward your credit card balance.




That's a very different rewards program than you see on standard rewards cards, which focus on getting cardholders to spend as much as possible to get cash back. And while those rewards cards tends to be geared toward people with excellent credit, the Los Angeles Times notes that this card is likely to be aimed at lower-income consumers with fair credit.

So is the card a good deal?

The rewards are certainly attractive. To get $120 in annual cash rewards on a standard rewards card with 1 percent cash-back, you'd need to spend $12,000 in a calendar year (though bonus categories with rewards of up to 5 percent can allow you to get there more quickly).

By contrast, you don't have to rack up a ton of spending on this card to get a comparable cash bonus. In fact, even if you have only a $15 minimum payment, you could put a measly $20 on the card every month, and as long as you're paying a little more than the minimum due amount, you'll reap the rewards. If you also have a bank account with Bank of America, that means you could wind up getting $120 in bonuses on $240 of spending, a tidy 50% cash-back rate.

But that same feature also means that the card doesn't necessarily encourage people to make a serious dent in their balances. Because the cardholder need only pay "any amount more than the monthly minimum due" to get the cash bonus, simply paying a dollar over the minimum would be sufficient to get the rewards. A better incentive to encourage responsible borrowing might be to require cardholders to pay a minimum percentage of their total balance.

Another issue is that the annual $20 perk for holding an account with Bank of America might backfire on some consumers. The card, after all, is aimed at lower-income customers, who may not be able to maintain the necessary minimum account balance to avoid Bank of America's monthly account fees. If you're considering this card and you're currently with a bank or credit union that doesn't charge a monthly maintenance fee, you should examine Bank of America's fee structure to make sure that switching banks won't cost you considerably more in the long run.

As with any other credit card, then, you'll need to examine your own personal finance habits to determine whether it's a good fit for you. Played the right way, the Better Balance Rewards card can help you make some easy money without significantly altering your spending. Just don't be fooled into thinking it's a magic bullet for eliminating your credit card debt.


source: dailyfinance.com

Keep Your Credit Card Safe While Shopping Online

I was at Home Depot at 6:07 a.m. on Black Friday. I needed new Christmas décor, and Home Depot had exactly what I wanted at low prices.

So I got up early, thinking that if I didn’t get there by 6:15 a.m., the stuff I wanted would be long gone. You can imagine how surprised I was when I got there and the store was fairly empty. The employees practically greeted me at the door and offered me coffee and donuts.

Well, of course I said yes to the coffee and donuts. I had the sales flyer with me, so I pointed to what I wanted and the employees collected it all for me in a cart. I was back at my car at precisely 6:17 a.m., happy and on an exquisite sugar high.

I went from Home Depot to Target and had a similar experience, but without the donuts (get with the program, Target!). It was clear to me that folks had decided to shop online. My suspicions were confirmed when I saw the recent numbers from comScore, a company that analyzes the digital world.

Their research showed that consumers have already spent $10.1 billion online, which is a 16% increase over last year. They predict, for the entire season, that consumers will spend $43.4 billion online, which is up 17% from last year.

But enough with boring stats. The fact is, if you shop online, you need to protect yourself. It might be the season of holiday cheer, but it’s also the season of credit card scams.

Here are some things you should keep in mind while clicking your way through the holidays. (See also: The 50 Best Deals and Coupon Sites)

Check the URL

Make sure you see "https" instead of just "http" in the web address. The "s" means it’s a secure site.

Now, according to the FTC, having the “s” isn’t a fool-proof method for identifying a fake website because some scammers try to create a fake “s". Good grief! But at least checking for an “s” is a step you can take to make sure you don’t enter delicate information onto a site without the “s” in the address.

Use a Credit Card

Don’t use a debit card for online shopping. A debit card is linked to your bank account, and if the website gets hacked, the thief will have access to your cash.

Sure, you can probably get most of the cash back over time, but you don’t need such trauma during the holidays. With a credit card, you have much better consumer protections, plus your cash accounts aren’t in jeopardy.

Don’t Fall for Phishing

If you get an email asking you to send your credit card account number and password, don’t take the bait (sorry, I had to get in at least one lousy pun related to fishing).

The email might say you need to update or validate your account due to a variety of issues, including suspected fraud. The email might even look like it came from your bank. No legitimate company will ever ask for this type of sensitive financial information via email.

You have to be alert because scammers get more sophisticated all the time. I got an email that appeared to come from my daughter, who is at college. There was a link in the email, and I caught myself just in time. The scammer was clever to know that I might open the link quickly since it came from my kid. That was a close one!

Check Your Accounts Online for Fraud

This an oldie, but a goodie. I know you’re tired of hearing it, but think about how often you use your credit card at a restaurant and your card leaves your sight. Even if you’re shopping mostly online on a secure, well-known site, you’re still exposed in other areas of your life. And what if the reputable, well-known site gets hacked? It happens.

Avoid Public Wi-Fi

It might be tempting to kick back with a latte in your favorite coffee shop while making purchases online, but it’s not a good idea. Hackers are capable of breaking into Wi-Fi connections at hot spots. Better to get the latte to go and shop at home than take the risk.

Use Virtual Credit Card Numbers

These are also sometimes referred to as “disposable” or “one-time use” numbers. Some issuers offer this service and it allows you to use a temporary number that's tied to your actual credit card account. When you buy an item, you use the temporary number assigned to your account.

So if the site you shopped on gets hacked, the thief can't access your real number. They get a bogus one. This keeps your real account number safe. Now, the details for this service vary by issuer. Visa offers this service, and they call it “Verified by Visa.”

It might sound a little tricky to use virtual numbers, but trust me — the steps are usually pretty simple, and best of all, it’s free.

source: wisebread.com

5 Reasons to Use Your Credit Card for Holiday Purchases

Credit cards tend to get a bad rap. Many people focus on the interest charged, but forget about the perks and the protections that come with credit card use. When used with savvy and intelligence, a credit card can be a valuable financial tool.

As the holiday shopping season ramps up, consider using your credit card to make seasonal purchases. You have the opportunity to earn rewards, and you often receive a number of protections that may not be available with debit cards — and that certainly aren’t available when you pay with cash.

1. Extended Warranty

Many credit cards offer extended warranties among their perks. The extended warranty applies on top of the manufacturer’s warranty. If the item breaks after the standard warranty, but before the credit card’s warranty expires, you can still have the item repaired or replaced.

Consider electronics, which are popular holiday purchases. Many electronics come with a one-year warranty. Many credit cards will provide an extended warranty that covers an additional six months to one year. Instead of paying for the extended warranty at check out, you get the coverage free when you pay with credit card.

Make sure, though, that you understand how to use the warranty. You usually need the receipt (so save it), along with other information. There may also be a time limit for making a claim.

2. Price Protection

Some credit cards, especially the premier cards that charge annual fees, include price protection. If you find a lower price on an item you have already purchased, you can be refunded the difference.

This can be very useful when shopping holiday sales and buying gifts for others. However, price protection usually comes with a time restriction. Normally, the lower price has to appear within 30, 60, or 90 days. Check the policy so that you have an idea of the time limit.

You will need proof of the lower price. Save your receipts, and be sure that you document the lower-priced item. A sales ad promoting the lower price is one of your best options, or a screenshot or printout of an online price on the item.

3. Returns

Some credit cards will reimburse you if you want to make a return but the store won’t allow it. So, for example, if you purchase something, then decide later that you don’t want it, your credit card might refund you the purchase price.

Before you can use this perk, however, you have to try to return it to the store. If you can’t return it, you might receive a refund for the item if you show a copy of your receipt. Often, as long as you apply for the refund within the time limit (usually 30 or 60 days), it doesn’t matter why you wanted the return.

Most credit cards limit the dollar amounts you can be refunded. There is usually a per-item limit of up to between $200 and $500, and often an annual limit of between $1,000 and $3,000. Check your credit card terms for policy details.

4. Dispute Charges on Damaged Online Purchases

I do a lot of my holiday shopping online. Using a credit card provides peace of mind, since I know that if an item is damaged in transit, or if it never arrives, I can dispute the charge. If you are doing a lot of your shopping online, consider using a credit card to pay.

The Fair Credit Billing Act provides this protection to consumers when a purchase arrives damaged — or just isn’t delivered. You can dispute the charge fairly easily, and prevent the retailer from being paid.

Realize that the item has to cost at least $50. The law requires that the seller be within 100 miles of your home address, so this can apply to items purchased at local retailers and have delivered to your home (as in the case of a large appliance or piece of furniture). Many credit cards will still let you easily dispute charges even on items shipped from other parts of the country.

However, you do have to try to resolve issues with the seller before turning to your credit card issuer for resolution.

5. Fraudulent Purchases Don’t Come Out of Your Funds

If someone steals your card information and makes fraudulent purchases, you are often better off if you have paid with a credit card rather than a debit card.

Some debit cards also feature $0 fraud liability, but often with restrictions, such as requiring you to point out out fraudulent charges within two days, rather than the 60 you have with credit card purchases. Additionally, a PIN entered at the time of purchase may negate your claim to receive the same level of protection. If someone has stolen your card and knows your PIN, you could liable for some of those fraudulent purchases.

And even if your debit card provides all of the protections of a credit card, the fact remains that the money disappears from your account almost instantly. You don’t get the money back until after the issuer is satisfied that the case truly involves fraud. During that time, you won’t have access to those funds.

When your credit card is stolen and used fraudulently, the money used isn’t actually yours — it’s the bank’s money. Your money is still sitting in your checking account, safe and sound. You can dispute the charges and have them removed from your credit statement without ever putting your money at risk.

Smart Credit Card Use

Use your credit card for holiday shopping, but make sure that what you spend fits into your budget. You want to earn the rewards and gain the protections, but you don’t want to pay interest. Pay off the balance immediately, and you will receive the benefits without having to pay the costs.

source: wisebread.com

4 Ways Credit Cards Manipulate You Into More Debt

Credit cards are engineered to make sure you become a long-term, loyal, and indebted customer. Since many of the decisions that consumers make are not rational, card issuers work on those irrational impulses to make sure you spend money with their card without thinking logically about your actions.

Here are four methods that card issuers use to get you to sign up for their cards and keep you in debt. (See also: Which Type of Rewards Credit Card is Right for You?)

1. Appealing to Your Individuality and Creativity

Once upon a time, credit cards all came in the same boring colors. But sometime in the past 20 or so years, banks started allowing cardholders to express their individuality through their credit cards. Suddenly, you could show off anything from your adorable nephews to your commitment to the Humane Society with every purchase you made.

Part of what is going on here is something behavioral economists refer to as the IKEA effect. This effect causes individuals to value something more if they worked to create it. Not only does that mean you’re more likely to keep the inexpensive IKEA bookcase you put together with your own hands for years after you don’t need it anymore, it also means that you are going to overvalue the credit card whose cover image you chose.

In addition, your pleasure at seeing the chosen image will make you want to show it off — that is, use it more often.

2. Encouraging Instant Gratification

The very essence of credit — putting off payment — is something that appeals to a nearly universal cognitive bias called the present bias. (A cognitive bias is an error in logical thinking that is very difficult for an individual to recognize in himself.) Basically, this cognitive bias makes an individual value an immediate experience over future experiences.

The present bias is why it’s so easy to stay up late to watch the "Doctor Who" marathon even when you know you have to get up early the next day for an important meeting at work. Now is so much more important than later in our irrational minds, it can very difficult to make the responsible decision.

This, of course, is why it is so very easy to get into credit card debt and so difficult to dig out of it. Yes, your future self might need to work overtime every week to be able to make the payments on your credit card, but your now self really wants the big screen TV. Card issuers understand this quirk of human irrationality very well, and they do everything they can to appeal to our “I want it NOW!” tendencies.

3. Triggering Your Restraint Bias

Most people tend to overestimate their own impulse control; they believe that they will be able to show more restraint in the face of temptation than is realistic. This cognitive bias is why your grand plans to lose 20 pounds are often derailed by the first box of doughnuts you see. You have overestimated your ability to be virtuous in the face of temptation.

One way that credit cards use this cognitive bias is by offering to raise credit limits. While some consumers are capable of ignoring that temptation, there are others who will run up their balance to the new limit, even after they have convinced themselves that they can easily handle that much credit.

Another common strategy that triggers the restraint bias is the 0% balance transfer. In these cases, cardholders convince themselves that they can pay off the balance before the end of introductory period. However, many of those who take advantage of these offers are unable to show the restraint necessary to pay off their balance before the interest starts accruing.

4. Making You Fear a Loss of Perks

Many credit cards offer perks, from cash back to travel miles to money for college. The problem with these perks is that in many cases, cardholders are spending much more in interest than they are earning through the perks. Why would they do something so clearly irrational? Because of loss aversion.

Behavioral economists have discovered that human beings tend to irrationally overvalue something they already own or have. For example, plenty of investors have held onto tanking stocks for far too long because they are afraid of losing their original stake. They irrationally hope that the clearly dead investment will recover.

Loss aversion is also the reason why cable companies are happy to offer customers a free trial period of premium channels; viewers are much more likely to pay money to keep from losing something than they are to buy it in the first place.

And of course, loss aversion is a major reason banks offer credit card perks. While cardholders who pay off their balance each month are certainly making money on the perks, the majority of cardholders are not able to do that. If they were, banks would stop offering the perks because they would be the ones losing money.

For most consumers with perks credit cards, the fear of losing the airline miles will keep them charging on a card that they probably should have cut up long ago. They are afraid of losing that “free” flight, even though they are clearly paying for it.

Beware Your Irrational Brain

It can be difficult to responsibly use credit because our irrational brains and the manipulations of the credit industry are working against us. The best way to handle credit is to make sure you are conscious of your decisions and your irrational quirks before you whip out the plastic.

source: wisebread.com

Using a Secured Card to Rebuild Your Credit

Sometimes, things happen and your credit takes a hit. Whether you have made some serious mistakes, or whether you have weathered a financial emergency like a job loss or a medical problem, you might need to repair your credit.

Indeed, your credit situation has a great deal of influence on the rest of your financial situation. Loans cost you more when you have poor credit, and even your insurance rates and other costs can be influenced by your credit situation.


One of the fastest ways to rebuild your credit is with the help of a credit card. Because credit card information is regularly reported to the credit bureaus, you can speed up the rate at which you see solid improvement to your score. Unfortunately, if your credit situation is especially poor, you may not be able to qualify for a “regular” credit card.

In those cases, you might need to turn to a secured credit card in order to help rebuild your credit.

What is a Secured Credit Card?

A secured credit card, or a guaranteed credit card, is one that requires you to provide collateral in order to gain approval. Nearly anyone can be approved for a secured credit card, but you have to guarantee your line of credit with cash. Most of the time, you are required to deposit a certain amount of money into an account connected to your guaranteed credit card. If you miss payments, the credit card issuer can take money from your account, and use it to pay what you owe.

Most of the time, a secured credit card requires that you put in an amount of money that corresponds to your credit limit. Some guaranteed cards, though, don’t require you to put in as much. You might only have to guarantee the card with a percentage of your credit line. In any case, it’s a good idea to find out what is required of you before you sign up for a secured credit card.

You should also be aware that using a secured credit card will come with relatively high costs. You will pay a higher interest rate if you carry a balance, and you might be subject to a battery of fees, including activation fees, annual fees, and other fees. You need to be on your guard when it comes to secured credit cards. They can be useful tools when you have no other option for building your credit, but you need to use them carefully.

How to Use a Secured Card to Rebuild Your Credit

Using your secured credit card to rebuild your credit requires planning and patience. First of all, make sure that you are actually getting a secured credit card. A prepaid debit card is not the same thing. At first glance, they might appear to be the same thing, but they really aren’t. A prepaid debit card won’t report your payments to the credit bureaus, so you won’t see improvement. Verify that you are actually using a guaranteed credit card, and that the issuer will report your history to the credit bureaus.

Once you have your secured card, you need to use it. Realize that the money in the savings account is only collateral. You should make your regular payments with other funds, and not rely on the money being held as a guarantee. Make one or two small purchases each month with your secured credit card. Then, pay off the purchases. Make sure you only buy what you already have money for. You don’t want to carry a balance.

After a few months (usually between nine and 12), you can ask if you can convert your secured card to a “regular” unsecured credit card. Many secured cards offer this option to consumers who make regular payments and show themselves responsible. Even if you can’t convert, as long as you make all your payments on time, and you are up to date on your other bills as well, you should be able to try to apply for — and qualify for — an unsecured card.

Responsible financial habits are vital to the process of rebuilding your credit. If you are careful, you can use a secured credit card to demonstrate your level of financial responsibility, and improve your situation.

source: financialhighway.com

Best Credit Cards for Holiday Spending

Figuring out how you will pay for holiday purchases is as important as selecting the right gifts. For example, if you prefer to spread out payments, a no-annual-fee card with a 0% introductory interest rate could be just the thing.

Citibank offers three no-fee cards with a 0% rate on purchases and balance transfers lasting from 15 to 18 months. (You pay a 3% balance-transfer fee.) The Citi Diamond Preferred card (full rate: 11.99% after 18 months) provides access to person­alized concierge services that can help you book hotel rooms and flights. The Citi ThankYou card (full rate: 12.99% after 15 months) awards one ThankYou point for every $1 spent. Points may be redeemed for gift cards, travel rewards or cash. The interest rate on the Citi Simplicity card (full rate: 12.99% after 18 months) won’t increase even if you pay late.

If you pay off your entire balance each month, you may prefer a rewards card that offers a 0% intro rate plus a 5% rebate on varying categories of purchases. The new no-fee U.S. Bank Cash+ Visa Signature card (0% for six months, then 13.99%) allows cardholders to select two purchase categories each quarter for which they will earn 5%. You may also choose a category that will earn you 2%. All other purchases earn 1%. The no-fee Discover More card (0% for 15 months, then 10.99%) offers a 5% cash-back bonus on purchases in categories that rotate quarterly. With the no-fee Chase Freedom card (0% for 15 months, then 12.99%), you earn 5% on up to $1,500 spent on airline fares and hotels -- and at Best Buy and Kohl’s through the end of December.

source: kiplinger.com

7 Tips for First-Time Credit Card Users

It’s almost a rite of passage for finances: You get a credit card. Many of us look forward to the first credit card. It seems like a big step, and it really is — if you want the credit score it takes to buy a house or a car at a good interest rate later on down the road.

It’s important understand, though, that a credit card isn’t your money. It’s money you borrow from the credit card issuer. This means that you have to repay the money. While credit cards can be great tools for your finances, including helping you manage your cash flow, you do have to be careful, since it’s easy to fall into the debt trap.

If you are preparing to use your first credit card, here are 7 tips to keep in mind — and they aren’t bad reminders for those who have credit cards for a long time:


1. Create a Budget and Stick With It
 
The most important tip for first-time credit card users (and for anyone) is to have a plan for your money. Create a spending plan, or a budget, and stick with it. Your credit card should be part of this budget. If you stick to your spending plan, you will be less likely to find yourself over-leveraged with debt. If you can’t afford it in your budget, don’t use your credit card to buy it.

2. Pay Off the Balance Each Month

If you are using your credit card within the confines of your budget, it shouldn’t be a problem to pay off the balance each month. You should pay off your balance every month in order to avoid interest fees. Carrying a balance results in interest, and that can start to add up and eat away at your wealth. Make sure that you can pay off what you put on your card.

3. Don’t Get too Excited about a Credit Limit Increase

A credit limit increase can seem like an exciting reward. For many first-time credit card users, the initial credit limit is often between $500 and $900. However, after a few months of responsible behavior, you might receive a higher limit. I remember how excited I was when the credit limit on my first card was bumped to $1,200 from the initial $800. I forgot that this wasn’t my money. I didn’t magically have a higher income to pay off the larger amount. While a credit limit increase can help your credit score due to a better-looking credit utilization, you shouldn’t spend up to your new limit.

4. Avoid Cash Advances

The interest rate on cash advances is often higher than your purchase APR. On top of that, you might be charged a fee for the cash advance. Plus, if you get the cash advance at an ATM, you’ll have those fees to pay as well. A cash advance can quickly become an expensive proposition. Live within your means so that your bank account can be the source of needed cash.

5. Pay Your Bill On Time

One of the most important things you can do is to pay your bill on time and pay at least the minimum. Late fees can add up quickly, and last payments don’t look good on your credit report. In fact, your payment history is the most important influencer of your credit score.

6. Pay Attention to What Your Credit Issuer Sends You

If you want to keep up with the changes to the terms and conditions of your credit card, you need to pay attention the materials your credit issuer sends you. Don’t ignore the new credit agreements. Issuers have been providing notice to add annual fees, and increase other fees. If you want to know what’s happening with your card, you need to pay attention.

7. Don’t Casually Share Your Credit Card Information

Remember to keep your credit card information private. Don’t give out your account number — or other information — to people who ask for it online via email or chat, or who call you and ask for it over the phone. Only provide information to those you actually contact for a specific purpose. When using your credit card online, verify that you are on a secure site before entering your credit card information.

source: financialhighway.com

 

Reduce Your Credit Card Interest Rate

Is your credit card interest rate 18% or higher? Call the number on the back of your card, tell them you have seen lower rates and chances are that you can get them to lower it.

Your best leverage during the call could be if you have a recent offer in the mail with a low introductory rate of 0%-5%. If you don’t have a recent offer, you could mention that you are considering the No-Fee Scotiabank Value VISA Card for 14.99%, the lowest rate I found with no annual fee.

If you have been paying your minimum payment on time and they consider you a good customer, they will likely be willing to work with you to negotiate a lower rate. If you are told that there is nothing they can do, politely ask to speak to a supervisor as they may be able to make the change.

source: canadianfinanceblog.com

Purging taint of eve of bankruptcy car purchase

LET’S say you have 2 old cars, a 1995 Camry, and a 1990 Taurus. You have $100,000 of credit card debt. You and your wife are both registered nurses and your combined household income with both of you working 2 jobs each is $250,000. You lost two investment properties in Las Vegas resulting in one 2nd trust deed of $80,000 on collection and threatening to garnish your wages. Both the Camry and the Taurus need constant repairs. The last repair was $3,000. You decide to trade in both cars for a brand new MB E 350, and a Lexus 400. The payment for the M-Benz is $950 monthly and $900 for the Lexus. Because of the two car payments, you cannot pay the $3,000 monthly for interest on the credit cards. So, after 4 months, you decide to seek bankruptcy relief. Will the fact that you traded in your old cars for new cars which require almost $2,000 of monthly payments 4 months before bankruptcy affect your ability to get a discharge?

The general rule is there is nothing wrong with pre-bankruptcy planning. Debtor can convert non exempt assets into exempt, trade in assets and assume new debt to buy a new car if that is justified, right before bankruptcy. However, the circumstances are relevant. In this example, debtor should keep evidence of the $3,000 car repair bills because that is evidence that the cars needed to be replaced. But note that debtor in this example bought two luxury cars requiring $2,000 of monthly payments. In some cases, the kind of car purchased pre-bankruptcy does not raise a red flag. But I have heard a judge opining that if debtor bought a civic, that’s a normal car, but M-Benz is a luxury car. It all depends on what type of bankruptcy is being sought. In a Chapter 13, the trustee may raise a good faith issue if debtor attempts to deduct the new car payments in calculating the plan payment.

In Re Williams, six days before they filed for Chapter 13 relief, the above-median income debtors owned three cars: 1996 Buick Skylark, 2007 Lexus RX-400H, and a 2007 Lexus ES-350. The Buick was fully paid. They bought a new 2011 Lexus RX-350 SUV on August 5, 2011, for $47,000. They traded in the 2007 Lexus RX-400H and the 2007 Lexus ES-350 as part of the same transaction for which they received a net credit of $14,111. They borrowed $35,000 to pay for the new car, payable over 75 months at $565 monthly whereas the monthly payment on the 2007 Lexus RX-400H was $484 and $866 for the 2007 Lexus. There were 12 payments left on the former and 24 payments left on the latter. They filed for bankruptcy on August 11, 2011. The trustee objected to confirmation of their plan partially on the ground that it was filed in bad faith.

The court sustained the trustee’s objection and told the debtors they could confirm a plan only if they treated their creditors as if they had sold the ES-350 and kept the other two cars. The plan they proposed, which treated their car payments as if they had not purchased the new card, did not “purge the taint of the improper car purchase on the eve of bankruptcy.” The debtors argued that by replacing their current vehicle ownership expense deduction with what they payment would have been if they re-amortized the two car loans that existed before they purchased their new car placed their creditors in the same position that they would have been in had they not improvidently purchased the new car. “While this approach has some appeal, the court cannot accept it…” Perhaps the fact that the judge drove a Ford Focus, and the trustee, a Yugo, had something to do with this decision?

Would there be a difference in Chapter 7, or if the cars were purchased 4 months pre-bankruptcy, probably?

source: asianjournal.com

Filipinos High In Financial Quotient — Citi Survey

MANILA, Philippines — Filipinos scored an all-time high of 52.6 out of a possible 100 points in the latest Citi Financial Quotient (Fin-Q) Survey, passing the 50-point mark for the first time since the survey was launched in 2007.

The Citi Fin-Q Survey is an annual survey designed to measure the Financial Quotient or financial well-being of consumers. All respondents were over 18 years of age with either a bank account or a major credit card.

The Filipinos’ high Fin-Q score can be credited to a better understanding of money management, according to the survey. Fifty-nine percent feel they have a “good” or “very good” understanding about money management and personal finances. This also explains why 94% reported attempting a monthly budget, the highest number across all countries participating in the research.

In this latest survey, respondents were scored on 11 different questions closely related to financial well-being for a maximum possible score of 100. The questionnaire consisted of over 50 questions and covered a range of topics closely related to financial decision-making and smart financial habits.

Citi conducted the survey through research firm Big Picture Qual and Quant Research in late 2011, and results were released this year. The survey covered 4,000 people across 8 countries including the Philippines. Five hundred interviews were held in each of the participating countries that include Australia, India, Indonesia, Korea, Singapore, Taiwan, and Thailand.

According to Citi Country Officer Sanjiv Vohra, the results of the survey reaffirm Citi’s commitment to financial education. “As Citi celebrates its 200th anniversary this year, we remain focused on our efforts to help consumers understand the importance of planning their financial future, and guide them in achieving their financial goals. Citi has been reaching out to a wide range of audiences, looking beyond our clients, to promote financial literacy. We constantly look for opportunities to engage them in discussions on saving and budgeting, understanding investment options and preparing for retirement.”

More than 60% surveyed said they were “better off” compared to 2010, the highest reported level since 2007. Optimism on one’s financial future is also up, with four out of five respondents saying they are “very optimistic” or “optimistic” about their financial future. On savings, 42% reported they save money from every pay.

With better access to financial education, Filipinos are able to manage their current finances, and have become even more conscious about saving for the future.

For the fourth consecutive year, the Citi-sponsored research revealed a year-over-year increase in the Citi Fin-Q Score or financial well-being of Asian consumers. The Citi Fin-Q for the region currently stands at 54.5 out of a possible 100 points, up from 53.2 in 2010, 50.9 in 2009 and 49.5 in 2008.

Majority of respondents (74%) in the Asia Pacific region showed increased satisfaction in their current quality of life, while 70% were “very optimistic/optimistic” about their financial future.

Almost two-thirds (63%) of Asia Pacific respondents expressed confidence that their savings will lead to a comfortable life in retirement. Not a surprising fact, since almost half (46%) reported that they set aside some savings from every pay.

More than two in five Asia Pacific respondents also suggest their personal financial situation is “much better off” or “somewhat better off” compared to one year ago.

“The survey numbers in the Philippines are indeed very encouraging. The results show that Filipinos are becoming more determined to take charge of their finances and are responsible users of credit,” pointed out Vohra.

Sixty percent indicated that they pay off their full outstanding credit card balance on a monthly basis, up 12% from 2010. Filipinos are also looking at investments in the form of cash, real estate and insurance to ensure a comfortable retirement.

Average retirement savings is pegged at P1.56 million, marking an 11% increase from 2010. On the average, Filipinos reported having 10.4 weeks of savings in reserve.

Filipinos have embraced digital banking with fully 70% saying they use the Internet or mobile phone for banking transactions. Given a choice, a majority (52%) expressed a preference for banking online from a home or office computer – the highest number registered among the participating countries.

“What the numbers tell us is that Filipinos are taking a more active role in planning their finances and choosing the financial products and services according to their needs,” added Vohra. “Citi will continue to do its part in promoting financial literacy, working with the right partners around the country to engage more Filipinos from all walks of life.”

source: mb.com.ph

'Build The Country On Cash' — Suze Orman

MANILA, Philippines — As part of its mission to usher its customers and employees toward the road to financial progress, the Bank of the Philippine Islands (BPI) recently flew in globally renowned Personal Finance expert Susan “Suze” Orman for a series of inspiring talks on financial wellness and responsibility.

Orman, a two-time Emmy Award winner and touted by USA Today as a “one-woman financial advice powerhouse and a force in the world of personal finance,” has spoken throughout the United States, South Africa and Asia to audiences of over a hundred thousand. Her recent talks to BPI audiences mark her first appearance in the country—a high point in the bank’s financial literacy campaign.

“BPI’s core values have earned our bank the reputation in this country as a beacon of financial responsibility, and in many ways Ms. Orman mirrors BPI’s core values in that we are aligned with her in our advocacy of financial empowerment,” shares Maria Teresa Javier, senior vice president and head of BPI Asset Management.

Talking Credit

Popular for dishing out financial advice in one of CNBC’s top-drawing segments, “The Suze Orman Show,” the TV host’s visit to the Philippines couldn’t have come at a better time. With the country’s mushrooming BPO industry, and the BSP forecasting OFW remittances to further grow by 5 percent to P21 billion in 2012, consumer spending is likewise increasing.

The Philippines is entering an age of economic empowerment, says Orman, and the country would do well to learn from the current financial crisis in the United States. “I have watched the United States go from being one of the greatest economic powers in the world to being a power that has absolutely no electricity behind it whatsoever. I have watched a country that had a vibrant middle class and I’ve watched that middle class totally disappear. There is now a highway into poverty and there’s absolutely not even a sidewalk out,” Orman shares, citing that 50 million people in the U.S., out of 300 million, are now officially in poverty. “One out of every two people in the U.S. are essentially in poverty or close to being so,” she adds.

The culprit? Credit card debt and amortization debt that people could not afford, says Orman. “The United States allowed its economy to grow on debt and borrowing money. The banks were making wonderful interest and income on the interest and overcharges and late fees and all these things. I watched them lend money to people to buy homes when they couldn’t afford to buy the homes, and now one out of four people in the USA are underwater in their homes. What this means,” she explains, “is I know people who bought homes for $150,000—not so much for a home in the U.S.—and those homes are now selling for $5,000.”

Upon seeing how debt crippled her country, Orman urges the BPI executives in attendance to take care of the country and its people. As much as money can be made in a bank on credit cards and interest on amortization loans, Orman says that “there are other ways to make money other than on the back of things people cannot afford. Build the country on cash, on a solid foundation so that it can never collapse. Then you will have built a future that nobody can ever take away from you.”

Aurelio Montinola III, president of BPI, agrees. “We’re fortunate here to have learned our lessons from the financial crises of the ’80s and ’90s,” he says, “which was that bank leverage, corporate leverage and even consumer leverage was too high. And what we’re trying to do now with BPI is what we call ‘Purposeful and Responsible Lending’ so hopefully we can stay on the right side of Suze’s statements.”

Achieving Balance

Orman’s statements caused quite the stir, as most of the people in attendance belonged to the bank’s credit card group. One employee asked, “How do you propose we sell credit card loans wherein we can merit our business objectives and the social responsibility of financial freedom?”

There are enough people in the country that can afford and use credit cards responsibly, Orman answers. “But I would say that once you see somebody being irresponsible with a BPI credit card, help them. Help them and close it down,” she says.

In the United States, the common practice among credit card companies in terms of handling credit card trouble was actually extending their cardholders’ credit limit. “This was the mistake made in the States,” shares Orman, urging the group to “stop the limit” once someone maxes out their credit card. “Don’t let them charge anymore,” she says, “and as they pay off debt, you can decrease their credit limit so they could never get into credit card trouble…at least with your bank.”

There will always be people who are irresponsible with money, says Orman. “But there are also all these people who are responsible with money and can use your products in a responsible way so that your bank can continue to make money while your consumers can continue as well to live a life where they could be financially free,” she says.

Addressing a credit card division is difficult, admits Orman. “Because I can see the bad that happens with it,” she says, “but I can also see the good, the potential of it if you help others be responsible because they can’t help themselves.”

The bottom line, Orman tells the group: “Just don’t be an aide to somebody’s financial destruction. The number one thing that will render a person powerless when it comes to money is debt. Credit card debt is bondage.”

source: mb.com.ph

My Financial debt story - England

The government are planning many different possibilities to solve the problem of debt in England. One idea that they have would be to compel credit card firms to double the amount that their customers have to pay back. Minimum repayments that are now at 2% may be increased to 5% according to an announcement recently made by the Consumer Minister on behalf of the Government.

An example given was based on a customer borrowing only £1400 - paying this back at a rate of 2% would take about 40 years to repay, the customer would also be paying a huge amount of interest which would increase the total amount repayable to £4800 - about 3 times the amount originally borrowed.

In addition the government want businesses to use customer repayments to clear higher rates of debt before those at 0%. Also it is planned to stop the large credit card companies from raising credit limits without permission, which at the moment they are at liberty to do. Some companies re-price existing credit limits as well and the government want to act so that they can no longer do that.

Finally it has been seen that the marketing plans and procedures of some companies are designed so that they can attract customers into borrowing more money than they can afford. At present it is estimated that people in England owe £56 billion on credit and store cards.

A representative from the organization 'Moneyset' has said that these new proposed plans by the government will be a great help to customers who are borrowing, or are thinking about borrowing money, because at the moment many are having serious financial problems as they struggle to keep up the current repayments.