PT Money » Credit Cards and Credit

Images Released: What Your New Credit Card Bill Will Look Like

PT — Mon, 15 Mar 2010 19:03:09 +0000

I’ve scoured the interwebs for images (or proposed images) of the new credit card bill designs that the credit card companies are coming out with. So, unless you’re the type to pay credit card bill online, you will see this new design.

These changes, of course, are a result of the CARD Act, the credit card reform bill, that recently went into effect. I thought it would be useful to compile all these images so you can know what to expect from your credit card company.

American Express

More information about the new American Express credit card bill. Also, check out more images of the American Express Blue credit card statement.

Discover Cards

More information about the new Discover credit card bill.

Chase Manhattan BankCredit Cards

More information about the new Chase credit card bill.

CitiCards

Although I couldn’t find picture of a new Citi credit card bill, they do have a website that contains information about the changes to the Citi credit card bill.

Bank of America

More information about the new Bank of America credit card bill.

Wells Fargo Credit Cards

More information about the new Wells Fargo credit card bill.

What do you think of the changes? Will consumers use credit cards any less?

Discover More Card – $50 Cashback Bonus

PT — Sun, 14 Mar 2010 19:02:16 +0000

A new credit card change of terms just went into effect, rocketing the Discover More Card up to the top of my favorite credit cards list. Discover is currently offering $50 cash back when you sign up for the card and spend a certain amount of money over the first 3 months. They also changed the terms of the balance transfer promotion to 12 months. This is also a solid rewards card because of the 5% reward points earned in rotating categories.

Discover More Card – $50 Cashback Bonus

5% rewards points for rotating categories: travel, home, gas, restaurants, movies, and more
No annual fee
$50 initial bonus
0% for 12 months on balance transfers
This is the best balance transfer card that I have to offer. A solid rewards card too.

Personal Finance Links

Matt from Debt Free Adventure shares his experience with re-financing a home loan. Paul from Fiscal Geek talks about the single most important financial step. Amanda from My Dollar Plan shares how to save money on a wedding. Pete from Bible Money Matters shares how to open a SEP IRA. Joel from Free From Broke discusses why health savings accounts are so great. Ron from the Wisdom Journal talks about creating a family charter. Jeff at Good Financial Cents shares how to save money when moving. Ryan from Cash Money Life gives you some info on what to do when you can’t make the mortgage. I was in carnivals about debt reduction, money hacks, and frugality.

Free Office Space Anywhere in the World

PT — Sun, 07 Mar 2010 06:15:38 +0000

Free Office Space for the World Traveler

I just received a great tip from Karol over at Ridiculously Extraordinary. In his newly released online e-book, How to Live Anywhere he shares, amongst many other tips, how you can get free access to airline lounges and free access to office space at over 1,000 Regus business lounge locations by being a Platinum Card® from American Express card holder.

While it’s not exactly “anywhere” in the world like my title suggests, they (Regus) are located in most major cities throughout the world. In their business lounges you get a quite place to work, free wifi, and even free coffee and tea.

What’s the catch? Well, the Platinum Card® from American Express comes with a pretty hefty annual fee ($450). If you plan on using an office only a few days while traveling you’ll quickly make this back though, as Regus lounges and airline lounges can be expenses at the daily rate.

Couple the free Regus business lounge with a free Skype account and you’ve got yourself a nice free office space anywhere you are. There’s your world traveler money tip for the day.

A Peek Inside the Free Office Space at Regus

Update: I recently visited my local Regus offices to confirm this deal and to see what the business lounges look like. The deal is accurate as described above, but here’s more detail. When you sign up for the Amex card above, they will send you an invite to check out the Regus offices and get their Gold Businessworld Card for free (that’s normally $49 per month). This Gold card allows you free access year round to any of the business lounges in their locations. Here are some picture of my local business lounge (click to enlarge):

Get started with this deal. Sign up with the Platinum Card® from American Express.

Plutus Awards and Other Links

In other news, 52 Ways to Make Extra Money…Revisited, was nominated for a Plutus Award under the best personal finance e-book category. Kudos to my designer, Ryan, and all the people who contributed to the book.

Ryan at Cash Money Life shared a great guide on Organizing Your Small Business Finances. Debt Free Adventure shares Saving Money: An American Virtue Reborn. FiscalGeek shares Why the Gym is a Waste of Money. Jason from My Money Minute just reached 200,000 Miles on His Car. This is exactly where I want to be in the future with our 2 vehicles. Ron from The Wisdom Journal shares his Tips for Yard Sales. Mrs Money at Ultimate Money Blog lists 7 Uses for Mason Jars. Makes me think of my Grandmother’s homemade jelly. Virtual Office ServiceA Virtual Office Service provides complete virtual office services including Virtual Fax, Phone, Mail and Answering Services.

Carnivals I’ve been in lately… Financial Planning, Rich Money Habits, Debt Reduction, Money Hacks Carnival, Financial Planning, Personal Finance, Frugality, Money Stories, Taxes

How Credit Card Numbers Are Generated

Guest — Fri, 05 Mar 2010 06:20:08 +0000

If you’re looking for a credit card generator you’ve come to the wrong place. While you can’t actually generate a credit card number which will be valid and accepted for a payment, you can find out more about how our current credit card numbers are validated and test the theory on the cards in your wallet. Your credit card numbers may seem to be made up of a series of random numbers and whether you know those numbers off by heart or not, in the US they are verified according to a simple mathematical system you can learn, and use as a great party trick too.

The Luhn Algorithm

In 1954 – before the world was immersed in credit card debt – Hans Peter Luhn patented an algorithm which is now known as the Luhn Algorithm. Every credit card and debit card number in the United States follows Luhn’s Algorithm so that every US credit card provider can be sure there are no errors when they create and distribute their cards. You can use the Luhn Algorithm to verify any credit card you have in your purse right now, and here is an example credit card number to show you how it works:

5412 7534 5678 9123

Firstly, the check digit is isolated on the card and that is the last number in the sequence – in this case it is the three. Then start with the number to the left of the check digit and double that number, and every second number on the card, this is what you end up with:

(10)4(2)2 (14)5(6)4 (10)6(14)8 (18)1(4)3

Then add together the digits of any double digit number to create a single digit number and this is the result:

1422 5564 1658 9143

Now when these numbers are added up they equal 66, which means this example credit card number is not real as the result of a real credit card number would be evenly divisible by 10. Also, even though you are able to generate a credit card number which works out to be divisible by 10 according to Luhn’s theory, there are other security features which you are not able to duplicate such as the CVV2, CVC2 and the CID numbers which are those ones printed on the front or back of a credit card for additional authentication that the card is present in a transaction.

Generating Valid Credit Card Numbers

Having cracked the credit card number code, it is important to keep in mind that US banks and credit card providers don’t use the Luhn Algorithm to prevent fraud or identity theft, but for their own administrative needs. Therefore, to create a fake credit card with a valid number and valid security authentication is impossible. If you wanted to create a valid three digit CVV2 security code, you would need the primary account number, the four digit expiry date, a unique three digit service code and a set of DES keys. It is not just one piece of account information which is required to generate credit card security codes and this, coupled with the fact that there are almost endless numerical combinations, makes it impossible to create a fake credit card, and makes it impossible for someone to use your credit card number if they don’t have the additional security codes.

So while it is interesting to be able to validate your own credit card numbers, and actually quite mind-boggling to think that every single credit card being used in the US adheres to this mathematical system, that system doesn’t make it possible to generate a valid credit card number – only validate an existing credit card number. It also means you can feel more secure knowing just how hard and how impossible it is to conduct credit card fraud, and how unlikely it is someone can charge purchases to your credit card number, without your actual credit card.

Fred is a personal finance writer at Credit Card Finder. He helps people to compare credit cards online.

Credit Card Companies Playing by New Rules

PT — Thu, 25 Feb 2010 04:57:25 +0000

A couple of days ago, the new credit card rules went into effect. To be more precise, the Credit Card Accountability Responsibility and Disclosure Act of 2009 or Credit CARD Act of 2009 went into effect. This is truly a game changer for the credit industry and for people who use credit cards.

The cynic in me says the credit card companies will find another way to be “irresponsible” towards consumers, and consumers will find more ways to be dumb with their credit card use. But I try to ignore that voice most of the time, so let’s check out these changes and hope for a better tomorrow.

New Credit CARD Act Rules

I’ve hand selected some of the changes that I think will have the biggest impact:

How Your Payments Are Applied – When you pay less than the full balance, your payment will be applied to the balance with the highest interest rate (i.e. purchases vs cash advances).
New Information Included on Your Statement – Your statement will now include the following: (1) how long it will take to pay off a balance if only the minimum is paid, (2) how much interest will be paid, and (3) full disclosure of payment due dates and late fees.
Applying for a Credit Card Under 21 Years Old – People under 21 years old will need to have their parents sign with them to apply for a card. For this reason, Amex has stated that the phone application is no longer an option for anyone under 21.

Read more about the new credit card rules.

What the CARD Act Doesn’t Do

It should be noted that the Act does not set limits on how high your interest rate can go. Rates went up as early as last fall, when the Act first passed. Also, corporate card and business card are excluded from the Act.

How the Industry Will Respond

The Credit Card Industry has made it known that the Act is going to result in higher interest rates and annual credit card fees. Keep an eye out for a 45 day notice of an annual fee. They say they will also lower the credit limit of riskier customer.

On a positive note, American Express, who does credit and charge cards, has developed a special Consumer Resources section on their website where they discuss how the CARD Act will impact Amex users.

Discover Card (currently offering a $50 cashback deal) has information about the CARD Act up on their Financial Education Resources page. And they also created a video explaining the basics of the Act:

What are your thoughts on the CARD Act? Do you care?

Earn Rewards Without a Credit Card: 2% Cash Back Using a Debit Card

PT — Tue, 23 Feb 2010 00:09:28 +0000

Scroll down to see details about the cash back rewards checking account from PerkStreet Financial.

I was hanging out with some friends the other night, playing some Texas hold’em, and we started talking about our generation’s feelings towards debt. Even though we know there is a lot of credit card debt out there, we concluded that many of people our age and younger are growing tired of the kind of lifestyle that involves credit. Many of my friends choose not to use credit cards at all. I know Dave Ramsey has been a big player in creating this shift.

While I’m not completely against using credit cards, I do see the benefits of going without one. That’s why I thought pointing this reward debit card out to you guys would prove beneficial.

Aside from the convenience factor, the only reason I currently use a credit card is to get the rewards. For those in the anti-credit card crowd, it can seem like you are being left out of this whole “rewards” system. Well, you don’t have to be anymore. There is a new checking account from PerkStreet Financial that comes with a debit card that pays you 1% cash back on your spending (and for a limited time, 2%). Here are the details:

PerkStreet Financial offers a free online checking account
The checking account has the standard ($250K) FDIC insurance
1% Cash Back Rewards on Non PIN-Based Transactions
No Limits on Cash Back
2% Cash Back for First 6 Months (offer expires April 30th)

What About ATMs? – When you need cash, use one of PerkStreet’s 37,000 ATMs within the STARsf® surcharge-free network. Outside this network you pay $2. To give you an idea of how many free ATMs PerkStreet has, they’ve put together this chart comparing their numbers to other banks. Kudos to them for doing this because with an online bank, there’s a greater need for ATM use.

What About Deposits? – Like every online only account, the downside is the ability to make quick deposits. However, PerkStreet seems to have made the best of the situation. You can deposit funds using any of these 4 methods: direct deposit, transfer from another bank, regular mail (PerkStreet provides postage paid envelopes for you), and free overnight deposit via UPS Store or Mail Boxes, etc.

What About Safety? – “Every PerkStreetSM account is FDIC insured up to $250,000 and all PerkStreet FinancialSM Visa® Debit Cards are protected by The Visa Zero Liability policy.”

Who Is PerkStreet Financial?

I encourage you to check out PerkStreet’s “Our Company” section. You’ll be impressed with their mission and see that it aligns with your own goals of financial responsibility and security. Click on the image of the video and then head to the “Our Company” section of the PerkStreet website to view the video of CEO, Dan O’Malley.

How PerkStreet Compares with Other Online Checking Accounts

Bank	Rate	Review	ATMs	Rewards
FNBO Direct Online BillPay Account	1.25%	FNBO Direct Review	840,000 PLUS locations - 4 Free Withdrawals Per Month	None
PerkStreet Financial	0%	PerkStreet Review	37,000+ free ATMs through STARsf®	2% Cash Back
ING DIRECT Electric Orange	0.24%	Electric Orange Review	35,000+ free ATMs through Allpoint™	None
Ally Interest Checking	View	Ally Bank Review	All Fees Refunded	None
EverBank FreeNet Checking	2.25%	EverBank Review	All Fees Refunded if Balance >$5,000	None
E*Trade Checking	0.15%	Pending	All Fees Refunded	None

If you are currently using PerkStreet’s checking account, I’d love to hear your thoughts on the product. Leave your comments below…

Orchard Bank Credit Card: 4 Options for Building Credit

PT — Tue, 09 Feb 2010 14:08:28 +0000

This is an updated review of the Orchard Bank Credit Card. Use the links below to apply for a credit card with bad credit.

The Orchard Bank Credit Card is actually a product of HSBC, the well known international bank, who also owns HSBC Advance, the online savings account product. The Orchard Bank series of credit cards are perfect for someone who’s credit situation is not the best and needs to work on rebuilding their credit.

Whether you have no credit history, poor credit history, or if you’re recovering from a bankruptcy, this card can help you get your credit back. Building credit history takes time though, and a credit card, whether secure or standard, should be used wisely and seen as a long-term solution as a part of a larger plan to improve things.

When you apply with Orchard Bank for a credit card, you’ll have a chance at getting one or more of the four credit cards that they offer. You are screened and then shown your options. Here are the four cards:

Orchard Bank Secured MasterCard – Waived annual fee the first year. Low APR. Reports to 3 credit bureaus.

Orchard Bank MasterCard – Low annual fee and intro rate. Low APR.

Orchard Bank Gold MasterCard – Low annual fee and intro rate. Low APR. Increased benefits with Gold program.

Orchard Bank Platinum MasterCard – No intro fees. Low Annual fee and APR. Platinum level benefits.

Low Annual Fees and Decent Rates

The bad thing about this card, in general, is that it comes with an annual fee, and as you see above, some versions come with an application fee. The fees aren’t huge, like an American Express annual fee, but they are there. I would normally never recommend a card with an annual fee, but most cards of this type (no credit/poor credit) typically do have an annual fee. So at least these fees aren’t that high.

On the flip side, these cards have pretty decent APR rates. And anyone with poor credit history or no credit history can apply and have a shot at one of these cards.

Other Features Include

Acceptance at millions of locations worldwide, including website purchases and reservations
Your account information is updated and at your fingertips 24/7 so you can manage it your way
Email and text messages to remind you of your upcoming payment due date with online enrollment
On-call customer service representatives to assist you with questions or concerns

Bottom Line: Thanks to the Orchard Bank credit card, you can apply for a credit card with bad credit. It’s one of the best cards on the market for those building credit. Low intro and annual fees. Better rate than most.

Your next step is to fill out the pre-qualifying application, find out what card you qualify for, and sign up…

Exposed: The Risk of Making the Minimum Payment

Guest — Tue, 26 Jan 2010 11:00:29 +0000

New Credit Card Industry Rules

Earlier this month, the Federal Reserve issued new rules that set out the practical procedures to enforce the Credit Card Accountability and Responsibility Act of 2009, a sweeping round of new credit card reform laws that will change the way that the credit card system operates.

The long-range effects of these rules will not be known for some time to come. How many of these changes will prove a benefit and how many of them will prove a disaster remains to be seen. However, there appears to be one thing that seems like an instant winner for the consumer – the new disclosure rules for minimum payments on a credit cards.

Minimum Payment Disclosures

The minimum payment has long been a tool that credit card companies have been able to use to rack up large sums of interest on some accounts. By giving some cardholders the opportunity to pay a very low minimum on a very large bill, the companies have been able to charge interest on significant amounts of money.

If done bill after bill over time, paying the minimums can throw consumers deeply in debt. For this reason the minimum payment has gained scrutiny from both academia and legislatures. A law was passed several years ago that required companies to raise the dollar figure on the minimum payment, in order to try to limit the amount of interest being charged to cardholders buried in debt. An English University also found that a minimum payment has a psychological “anchoring effect,” getting consumers to write checks for less money than if no minimum payment appeared on the bill.

Your New Credit Card Bill

Now, according to a Federal Reserve website, the look and substance of your credit card bill are about to change to help consumers understand this issue. These new Fed rules will require credit card companies to give consumers more information about how their payment choices affect their ability to pay and the length of their debt.

For those stuck making minimum payments, the new information could be eye-opening. For instance, the new bill will reveal the time needed to pay off your current balance if the consumer consistently makes only the minimum payment from month to month. This number could surprise some credit card users, unaware of the sometimes lengthy time frames – and the resulting high interest payments – that minimum payments invite. The new bill also will show the dollar figure that the cardholder would need to send in each month in order to pay off the balance in three years worth of time.

More Disclosure

The bill will also have two warnings. The first is a late payment warning that explains that a late fee and an interest rate hike are possible effects of making a late payment (but they don’t have to mention the effects on your credit score). A minimum payment warning tells consumers that they will have interest added and a longer payoff time frame if they only make the minimum payment. While these things might seem obvious to a seasoned credit card user, less experienced users might not be familiar completely or at all, with how things work.

In the past, credit card companies have been able to prey on the ignorance of some of its more vulnerable cardholders. The new rules rightfully make it more difficult for a credit card issuer to take advantage of inexperienced or unwitting cardholders, who might make that payment without understanding that it could sink them further into debt. With the new payment information cardholders will be warned about the dangers of missing minimum payments; if they choose to make that payment, they will do so in an informed fashion. That seems only good for the consumer and fair for all parties involved.

This post is by Kevin Bowen, a writer with Greenshield Financial Services, a Dallas-area Financial Health Management company that helps its clients resolve their outstanding debt.

Find the Perfect Credit Card for You

PT — Wed, 20 Jan 2010 17:25:47 +0000

How do you find a credit card? How do you find one that will fit your needs and match up well with your habits? Choosing a credit card can be tough with all the options available to you. One thing is for sure though. You don’t want the credit card companies telling which card to use. Being intentional about your choice will end up producing the best result for you.

I’m currently researching credit cards. I need to find a credit card for Mrs. PT and I to use for daily spending. We’re hoping to find a rewards card that will allow us to build up points at above the 1% level for groceries, dining out, and gasoline. I’m also looking for a new credit card for my business. I recently formed an LLC and plan to treat my business and personal income separate for tax purposes. Having a separate card will help me to draw that distinction a bit easier.

So how do you go about finding the best card for you and your situation? Here’s what I do:

Stick to My Principles
Know My Needs: Short and Long-Term
Weigh the Various Factors

Let’s dig into those a little bit deeper.

Your Personal Credit Card Principles

When you’re dealing with credit cards, or any financial product for that matter, it’s good to have a set of principles to fall back on. I sometimes call it my “philosophy on credit cards”. Your principles will help you establish a bare minimum for accepting a credit card. Some principles I have when it comes to cards are: use cards with no annual fees (unless there is strong evidence to get a fee card), interest rates don’t matter because I pay them off each month, and avoid all retail store cards.

If you don’t trust yourself with credit, then by all means skip credit cards and keep using your cash, debit cards, or a charge card. Some people like to keep it simple and have just one card. They value simplicity versus optimization. Others find it valuable to have multiple cards. One for different types of situations. Only you know your credit card principles. Use those to help guide your choice.

Know Your Credit Cards Needs

The next step is to take a quick inventory of your needs for this new credit card (cards). Where will you use the card? How often? Will your situation change from year to year?

For us, we see the long term value in a “daily spending” type card. One that will give us reward points for regular purchases (fuel, groceries, etc.) on a consistent basis for many years to come.

If you travel a lot and plan to use your credit card for travel needs, you probably have a different set of needs than that of someone who’s looking to use a card for daily spending.

If you simply need a credit card in the short term to do a 0% balance transfer, your needs are going to be completely different.

It’s also valuable to think about your long-term needs for a card. You can always cancel a card after your short-term goals are met. But if you can combine a card’s value in both the short and long-terms, then you’ve really got a great card. A good example of this is a balance transfer card that has a nice reward system. Once you’re done with the transfer then you can use it as a reward building card.

Weight the Credit Card Factors

Now that you’ve considered your principles and understand your needs, both short and long-term, you are free to compare credit card offers based on various credit card factors.

The factors to include in your analysis could be some combination of these:

Where the card will be accepted (American Express vs Visa/Mastercard vs Discover)
Annual Fee
Interest Rate
Reward Points Percentage
Type of Rewards
Sign Up Bonuses
Reward Points Thresholds
Balance Transfer Period
Balance Transfer Fee
Promotional Interest Rate
Promotional Interest Rate Period
Foreign Currency Exchange Rates

I’m sure I’ve left out a few, but those should get you started. Slap the relevant factors down on a spreadsheet or notepad and evaluate the cards available to you. Once you’ve performed the 3 steps above you should be in a comfortable spot to make a decision on a specific credit card.

What credit cards do you use and why?

Photo by Brooks Elliott

American Express Charge Card – 10 Flip Ultra Cameras to Giveaway!

PT — Thu, 17 Dec 2009 05:55:28 +0000

This giveaway has ended. See the list of winners.

American Express Charge Card Services has offered up 10 Black Flip Ultra Video Cameras for me to give away here on the blog. Yes. 10! Skip to the bottom to find out how to enter yourself into the giveaway.

American Express Charge Cards

What’s a charge card? Charge Cards are different from credit cards. The debt is not revolving credit, it’s a small loan. And you have to pay off the card in full each month. There are some definite advantages to using one of these cards in the way of services. To see more about American Express Charge Cards see my previous post on charge cards.

Card	Initial Bonus	Annual Fee	Notes
ZYNC from American Express	None	$25	Earn 2 Points Per Dollar in Select "Go Pack" Categories
American Express Preferred Rewards Green Card	None	$95	Annual Fee Waived 1st Year
American Express Preferred Rewards Gold Card	$100 - Spend $500 in 3 Months	$125	Annual Fee Waived 1st Year
American Express Premier Rewards Gold Card	$150 - Spend $30K in Calendar Year	$175	Annual Fee Waived 1st Year
American Express Platinum Card	$250 - After $1,000 Spent in 1st 3 Months	$450	Gives you free office space anywhere in the world.

Flip Ultra Video Cameras

I already have my own Flip Ultra video camera. I love it. It’s perfect for capturing those spontaneous moments. We leave ours lying around the house or in Mrs. PT’s purse. We’ve got a ton of 30 second little moments of little Miss PT’s life captured on that thing. The cameras hold about an hour of footage and they quickly link up with your computer for uploading. It makes sharing your videos really easy.

To give PT Money readers a taste of the types of rewards available through the Membership Rewards program, American Express gave me the opportunity to host my own American Express Charge Card holiday giveaway on PT Money in which 10 of my readers can win one Flip video camera each! Here is how it works:

10 Flip Ultra Giveaway

I’m giving away 10 Black Flip Ultra video cameras. Here’s how to enter the giveaway… there are 2 ways to enter:

#1 - Simply answer this question in the comments section below:

What is the savviest way you have made your money work harder for you this holiday season?

I’ll choose the 5 comments that I think are the best answer and American Express will provide the Flip video camera prizes.

#2 - Via Twitter:

Step 1. If you like what I tweet, follow @ptmoney on Twitter (optional).
Step 2. Simply tweet the following:

Just entered to win 1 of 5 Flip cameras from @ptmoney. Retweet to enter. Rules: http://tinyurl.com/AmexFlipPT

I’ll randomly choose 5 from the tweets and American Express will provide the Flip video camera prizes.

The Giveaway Rules:

No purchase necessary; void where prohibited
One entry per person/household; US residents only
All prizes are provided by American Express.
Contest ends Thursday, December 31, 2009.
Flips will be shipped shortly after.

How I’ve Made My Money Work Harder

I’d say the savviest thing we’ve done this season is to buy some things on Craigslist and pay a portion of full price. We purchased a barely used pre-lit Christmas tree for a 3rd of the new price. It looks great in our living room. We also found some nice, clean toys for little Miss PT’s Christmas presents.

That’s all. Good luck to ya!