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June 14th, 2008

Rewards Credit Cards - Are They Really a Sweet Deal?

Posted in Mathematics Portal

Rewards are everywhere! Gas stations… grocery stores… pharmacies… hotel chains… They all claim to reward you on purchases that you make. Likewise, credit card companies have their own rewards credit cards programs. Simply put, the more you spend, the more rewards you get from a rewards credit card. Sounds like a sweet deal, doesn’t it?

The Fun Factor of Rewards Programs

Unless you’re a savvy rewards credit card shopper that’s done his or her homework, then you might end up feeling like a kid again or worse yet, a fool. Remember dropping quarter after quarter into the machine trying to get that cute little stuffed animal only to end up with a little plastic finger ring and empty pockets. If lucky, you might have gotten that irresistible toy after all, but it probably cost you way more than it was really worth. With games, I guess the idea is “fun,” and if you get rewarded that’s even better. But with rewards credit cards, is the “fun factor” worth your hard earned money? Read more to find out how to keep the fun in the rewards.

Avoid High APRs

Cards with rewards often have higher interest rates than the typical card. For those who like to pay off their balances each month, rewards credit cards might be right up your alley. If you don’t pay off your balances, then you might find that the higher rates are not worth the rewards. You will need to do a little math to figure out the best deal.

Avoid Annual Fees

Like high APRs, a reward credit card may require you to pay annual fees as much as $40. Once you’ve paid the annual fee, the rewards might not be enough to justify getting the card in the first place. Consider the value of the reward versus the amount spent in annual fees and interest rates.

Cash In On Cash Back

Some rewards credit cards offer cash back rewards for your purchases. For example, you might earn 1% on all purchases. If you spend $5000, then you’ll get $50 back. This type of rewards credit card bases the cash back earned on the amount of purchases you make, and there might be a maximum limit you can claim. When evaluating these offers, be sure to read the fine print.

Accumulate and Redeem Points

Most point systems are designed to give you about one point per penny spent. Say you earn 1000 points using your reward credit card. You might get a reward worth about $10, such as a store gift certificate or credit that can be accumulated and applied to a larger gift reward. If a rewards credit card offers less, has a cap on the number of points you can earn or the points can expire before you use them, then you might find a better deal elsewhere. Take time to shop around!

Fly the Skies

Frequent flier programs are similar to the point system and cash back rewards. You might get one flier mile (or point) for every $2 that you spend using your card. Most cards require you to generate around 25,000 point before you can redeem them for free airline fare. Any cards that require you to accumulate more points might not be worth it. If you are a frequent flier and can benefit from this type of program, compare reward credit cards. The best place to do this is online.

There are numerous reward programs that are available when using rewards credit cards. Individual cards may have specialized programs that are tailored to various groups, such as small business owners, students, travelers, “shopaholics”, etc. Just like the carnival games, a girl will run straight for the games with doll prizes, whereas a boy will want to play for balls or cars. The same holds true for credit cards shoppers. But beware of the gag gifts! Take your time to read the fine print and shop around for the best rewards credit cards.

For more on rewards credit cards, Robert Alan recommends that you visit CreditCardAssist.com

May 25th, 2008

Credit Counseling What Is It?

Posted in Mathematics Portal

If you are in difficulty financially, you have in all probability heard the term “credit counseling,” however do you understand what it is? Most times this term is used in the same sentence as debt negotiation or debt settlement, however in fact, it is an entirely dissimilar procedure. With credit counseling, you will in fact work with a credit counselor to pay off your debt in smaller, monthly payments that you can manage to pay.

The people mainly likely to require credit counseling are those who are getting troubling telephone calls from bill collectors, or whose accounts have gone to collection agencies. If you feel that you may benefit from using a service like this, please read the following outline of the best approach to work with a credit counseling service.

Foremost, you’ll want to be able to identify a good credit counseling service, and not fall prey to one of the numerous scams that are out there. Start by avoiding any ads that guarantee you fast fixes for your credit report-quite basically, there is no such thing. Instead, look for a reliable company accredited by Consumer Credit Counseling Services.

Then, you’ll have to meet with your credit counselor, and supply them with all of the information of your debt. Don’t be tempted to leave anything out because he or she will require that information in order to produce a workable re-payment schedule for you.

Now, you’ll get to sit back and allow the credit counselor to work for you. They will get in touch with all of your lenders and notify them that you are trying to create a plan that will permit you pay off your debts. They will work with them all and coordinate a re-payment plan that you can live with. Oftentimes, they will be able to lower your interest rates in order to allow for lesser payments.

A number of credit counseling services offer a debt management system. What is it? Instead of having to keep up with all of the payments yourself, you will have the choice of submitting one lump sum payment to the credit counseling service and they will do it for you. One note of warning here: there have been instances of a credit counseling services missing their client’s payments, and if that happens, your credit report will suffer for it. Knowing that be certain to check out the company carefully before signing up for their debt management program.

What will you pay for all of these services? A reputable company will only charge you a small fee, somewhere in the region of fourteen dollars per month. That’s an additional means to recognize if you are dealing with a scam operationif they want a lot of money up front, it’s almost a guarantee that they don’t have your best welfare at heart.

You must be aware that working with a credit counseling service can do some harm to your credit report. On the other hand, for the most part people who are at the stage in their financial lives who would even consider such a move, would most probable gain from it. After all, it’s a great deal easier to explain away a sincere endeavor to get your finances in order than it is to explain a bankruptcy or a report full of charge-offs.

©Copyright 2005 Author Gail Gorman

Gail Gorman Is the Owner of http://debtassistence.com/
which gives advice and tips on managing your Debt Consolidation

April 18th, 2008

Credit Scoring Is About To Change But How And When?

Posted in Mathematics Portal

In a nice change of pace, all three credit reporting agencies, Experian, Equifax and TransUnion have joined together in developing a new way to score your credit. The three say that this new scoring system, called VantageScore, was developed to make the loan process simpler and easier for both consumers and credit providers.

If you’ve applied for a credit card or mortgage or applied for credit for some other major purchase, you will know about credit scoring. Probably the most popular scoring system is called FICO for Fair Isaac Company, the company that developed it. But there are a variety of other credit-scoring systems available to lenders. The results of this can be a confusing array of credit scores with wide discrepancies. For example, depending on which score your lender used, you might have been turned down or approved for credit or assessed a higher or lower interest rate.

The new VantageScore system will have scores from 501 to 990 with the higher the score, the better. Because the new system uses information about a large group of customers from all three credit bureaus, it will create a more standardized scoring formula. The joint scoring should eliminate the discrepancies in current credit scoring that can be as wide as 30 percent. However, all three credit bureaus have admitted that some discrepancies may continue to exist as the they do not always receive exactly the same information about consumers.

As good as this may sound, don’t hold your breath about a new AdvantageScore any time soon. The challenge is to get businesses to use this new score rather than whichever score they use now. Also, at least one score provider, Equifax, says it will wait until lenders accept the new score before offering it to consumers - and this could take as long as six months. Even then, each of the three bureaus will market the AdvantageScore its own way and will set its own price. However, you will still be able to get one free credit report, or AdvantageScore, a year as this is Federal law.

Watch your local newspaper for information on AdvantageScore as it becomes more of a reality in the months to come.

Douglas Hanna - EzineArticles Expert Author

Here’s another good tip. Plan to vacation this year in Denver. A Denver vacation offers the best of both worlds– there are the fun things to see and do you find only in a big, bustling city and the spectacular scenary and vistas offered by our nearby Rocky Mountains. For more information on a great Denver vacation, ust go to http://www.best-denver-vacation.com.

Douglas Hanna has lived in the Denver metro area for more than 30 years and is an expert on both Denver and Colorado. He is also the author of more than 100 ezine articles on a variety of subjects.

April 7th, 2008

Why Americans Find Predatory Lending Offensive

Posted in Mathematics Portal

“Menis - the author translates as “indignant rage” - It is the kind of rage arising from social betrayal that impairs a person’s dignity through violation of “what’s right.” (p21), Achilles In Viet Nam - Combat Trauma and the Undoing of Character, Jonathan Shay, M.D., Ph D.

“The vulnerable relationship between child and parent is a metaphor for the relationship between a soldier and his army. It is also more than a metaphor when we consider the formation and maintenance of good character. The parents betrayal themis - (the ability to feel good about oneself , self esteem, self image) - through incest, abuse, or neglect puts the child in mortal danger. Despite intellectual limitations, the small child usually grasps the danger, although the child’s mental representation of the danger differs from adults. The child’s inner sense of safety in the world emerges from the trustworthiness, reliability, and simple competence of the family.

“Similarly, the child’s acquisition of self-control, self esteem, and consideration of others depends upon the family. Absent inherited mental disorders, good parenting will produce good character and all the other adult resources of dignity and maturity, including ideals, respect for others, self respect, ambitions, self-care, pro-social rather than anti-social activity, reliable capacity to distinguish reality from fantasy, and so forth.

“Lurking behind these supposedly settled truths is the platonic assertion that good character is a firm wall between a good person and evil acts, regardless of the betrayals of “what’s right” and other blows, such as bereavement that may simply happen to an adult. Often there is the invisible unstated assumption that those that hold power in society exhibit loyalty and care in fulfillment of themis. (p 32)

“If military practice tells soldiers that their emotions of love and grief - which are inseparable from their humanity - do not matter, then the civilian society that has sent them to fight on their behalf should not be shocked by their “inhumanity” when they return to civilian life. (p 67)

“Viet Nam narratives reveal that the events that drive soldiers berserk are betrayal, insult, or humiliation by a leader; death of a friend-in-arms; being wounded; being overrun, surrounded, or trapped; seeing dead comrades who have been mutilated by the enemy; and unexpected deliverance from certain death.” (p 80)

Even in families without children the parents are leaders. Parents make financial decisions that impact the future of their children, their stature in the community, self worth, and dignity. There is nothing dignified about the effects of predatory financing. Yet there is an initial assumption that those who impact the credit scores of Americans are exhibiting loyalty and care in fulfillment of their chosen occupation. Americans believe our laws and regulations such as Regulation “Z” protect their rights. There is a strong belief that the system will work.

The economic downturn of 2000 through 2002 is firmly grounded in consumer spending and consumer debt. The real estate boom infused more disposable income into the economy. Exportation of manufacturing and services sector jobs to foreign countries, plus the huge trade deficit add to our woes. In early 2003 the federal budget deficit and the threat of war add to troubled economic times. Bankruptcies achieved record high levels. However, as with history and military battles, we must learn from the past to see the future and prevent future mistakes.

William F. Aldinger started his career with CitiGroup, learning quickly that sub-prime financing in the CitiFinancial subsidiary was a lucrative business. After leaving Citi, Aldinger went to Wells Fargo, and then to Household International as CEO. All three companies are now classified as predatory financing companies, and all three have been forced to settle with the states, government, and consumers. Household restated earnings for the entire time that Aldinger was with the company. HSBC has a four year agreement with Aldinger to continue as Chairman and CEO of Household under HSBC, and then he will become chairman and CEO of HSBC North America, Inc and director of HSBC Holdings. The past tells us the future. HSBC contends that there will be no changes to their business model. Therefore it is safe to predict that HSBC will become the largest global predatory lender ever witnessed by a civilized orderly society.

Those that managed to delude themselves into thinking they are financiers providing a service to society, while masquerading as predators, argue that they are servicing a sector of society that would otherwise not receive adequate attention. Countering that argument, the Community Reinvestment Act perhaps should be revisited and strengthened. Perhaps federal and state governments should remove predatory abilities from the private sector while providing structure and funding. Americans should not be abused by a system that is failing.

Historically, if we use the actions of predators to show us what areas need reform we can reverse the economic downturn we see today. Just like gangs, organized crime, and similar activities, the government should look for the cause of the problem while instituting prevention and removal of the opportunity for predators.

Credit cards are responsible for a huge portion of American debt. Easy credit and the need for credit is expected in today’s society. Again predators have an opportunity. Household International provides financing for, and ongoing compensation to merchants under their existing contracts. Again, there is an initial assumption that those who impact the credit scores of Americans are exhibiting loyalty and care in fulfillment of their duties, that they will follow Fair Credit Reporting and Fair Credit Billing, etc. With over twenty million transactions a day, and over sixty participating merchants, Household International impacts the lives and family values of many taxpaying Americans every day.

Consumer watchdog organization Household Watch receives consumer complaints daily. Based on their web site log statistics Household Watch only receives complaints from 5% of those who visit. Many others get the information they need from their web site data. Over 400 people per day use the Household Watch web site to find links which enable them to pay their bill online.

The Federal Trade Commission, therefore, recognizes Household Watch and sister site BestBuyCard as a source of consumer help. Where predators see an opportunity the government should step in to stop them. When the government does not step in, consumer organizations step in to fill the gap. We sincerely hope, therefore, that the consumer organizations will be heard a loudly as the predators and the government when decisions are made. They speak for the public, with emphasis on the public that experiences violations of regulation “Z” and other areas where they expected special trust and confidence.

About The Author

Timothy Blake has a Bachelor’s Degree in Business with a specialty in Management of Technology. He is an investigator for Consumer Advocacy organization Household Watch at www.householdwatch.com