Build Credit History With The Public Savings Bank Secured Visa

For individuals with no credit or those who have experienced a negative credit event like divorce or foreclosure, establishing credit history can be a real challenge. Without proper credit, everything from a car loan to an apartment or even a job can be denied.

When faced with problem credit, many people rely on prepaid cards to manage their daily expenses. However, prepaid cards simply provide access to your own money, not credit from a lender. These cards do not report to credit bureaus and do not help re-establish credit history. People need to demonstrate on-time monthly payments on a credit card in order to rebuild that important credit history.

So how can someone who cannot get a credit card rebuild their credit?

The Public Savings Bank Secured Visa offers people with low credit or no credit the opportunity to re-establish their credit history and work towards improving their credit score. Individuals make a deposit into an FDIC-insured account that acts as a security deposit. They can then make purchases anywhere Visa is accepted or take cash advances up to the deposited credit line amount, currently between $300-$2000. Payments are reported to all three major credit bureaus (TransUnion, Experian and Equifax) so customers can begin to establish credit immediately.

The Public Savings Bank Secured Visa does not require a credit check or even a checking account to apply. Customers can fund their account via Western Union, ACH, wire transfer, check or money order. The card has no annual or monthly fees, and offers 0% APR for 6 months. Rush shipping is available so customers can begin using their card just days after funding their account.

Building good credit is critical at a time when credit is getting harder to obtain. This card allows the customer to build good credit while enjoying all the benefits of a Visa card at very favorable terms.

National credit card rates for June 17, 2010

Credit Cards

• 13.7% (all fixed)
• 14.37% (all variable)

Here's a look at the state of credit card rates from Bankrate.com's weekly national survey of large banks and thrifts conducted June 16, 2010.

The average interest rate for variable-rate credit cards remains unchanged from last week at 14.37 percent. Also stagnant, the mean fixed rate has sat at 13.7 percent for 13 weeks.

Yesterday the Federal Reserve Board issued new rules for credit card penalty fees and charges that take effect with other Credit CARD Act protections on Aug. 22. Among the changes, the rules ban inactivity fees for not using cards, and caps penalty fees at $25 unless the cardholder demonstrates repeated offenses or if the issuer can prove that the costs resulting from the violations warrants a higher fee. Issuers must also conduct six-month reviews of interest rate hikes imposed after Jan. 1, 2009, and reduce the rates if the factors that triggered the increase have improved.

Bankrate.com makes it easier to find low-rate credit cards and credit cards with rewards. You can search by issuer, card type or credit score.

A Banker Reveals How Banks Try to Take Your Money

Greetings. I’m Dan and I’m a banker. Don’t worry, though: I quit my job at a big bank years ago.  I know how the financial system works — the details, the tricks and traps — and I’m going to let you in on some industry secrets. By the time you’re finished reading, you’ll know a lot more about the games banks play and how to beat the system — or change it.  Powerful stuff.
First up: product terms that change without notice.  You read your entire bank and credit card terms and conditions every time they’re updated? Bravo. You belong to a small group: just 3% of Americans. But even if you do, you might not realize that there are ways banks can reduce the value of what they provide without ever formally letting you know.  Here are the three most common ways banks give you the bait and switch.

Beware of Falling Interest Rates

Remember that awesome interest rate you first got with your savings account?  You’re probably not getting it now.  The practice of raising interest rates and dropping them (knowing most customers won’t notice) is so common that it has a name within the industry: pump ‘n’ dump.  Even friendly banks do it.  As the worldwide head of ING Direct was quoted in a 2002 INSEAD case study: “People are sleeping. We wake them up with very dramatic advertising, they switch their money and then they go back to sleep.”

The Onus of the Bonus

Based on my company’s research, over one quarter of Chase, American Express, and Discover customers think they’re earning 3%-5% on everything they buy with their credit cards.  How could you not be fooled when some of their marketing is so misleading.  This line is from American Express: “Earn up to 5% cash back on virtually everything you buy.”  Research shows that the phrase “virtually everything you buy” will overwrite the phrase “up to” — kind of like a mental white-out.  You’re left thinking you’re earning 5% almost all the time even though the base earning rate is a mere 0.5%.  Don’t get me wrong — “up to” rates and earning 3-5% bonuses can really boost your earning power.  But it falls to you determine exactly how much the bonuses are worth based on how you spend.

Anyone know what a mile will be worth next year?

Once upon a time, 25,000 airline miles used to get you a round trip ticket, a bag of peanuts, and space on the plane for your bags (for free).  How the world has changed.  Every year, as part of the annual budgeting process, big banks and travel companies review the costs of their rewards programs.  And every year, the goal is explicit: reduce costs without changing how customers earn rewards, so the program still feels the same.  The result?  You might still be earning the same number of miles but the majority of rewards tickets now cost twice as many miles and include a booking fee.  Over time, almost all rewards programs change.  Make sure you know if you should make a change, too.
The moral of this story?  Take a few minutes every year to see how good of a deal you’re getting from your financial services providers.  If you don’t like what you see, make a change.  Fire your bank.  Unfriend your credit card company.  They’re changing the terms of your relationship and not letting you know.  Let them know you noticed.

How to Negotiate a Lower APR

Ask and you shall receive. That used to be the case with lowering your credit-card interest rates not too long ago. Back in 2002, a survey by consumer advocacy group U.S. PIRG found that 56% of credit-card holders who had called their issuers to request a lower APR had gotten it done with a single phone call.
That’s hardly the case these days. Hit hard by the mortgage crisis and resulting credit crunch in the past few years, banks have been much more reluctant to cave into such requests.
That doesn’t mean it can’t be done. It simply means that you’ve got a lot more work to do before you make that call – and be aware of the risks associated with doing so.

The risks

The biggest risk of requesting a lower-APR request these days is that the bank may not only deny it – you could walk off that phone call with a lower credit limit. That’s been happening to quite a few consumers these days, says Gerri Detweiler, a consumer credit expert at Credit.com.
When you call your bank to discuss your credit card terms, you will trigger a deeper look into your account and credit history. Some issuers may even require you to submit additional paperwork like proof of income or tax returns in order to make a decision.
If they don’t like what they see, nothing’s to stop them from taking adverse action, such as lowering your credit limit. That move will in most cases have a negative effect on your credit score, because a lower credit limit automatically increases your utilization ratio.
Unfair? Yes. But the fact is that the bank is in its full right to lower your credit limit – a move that is not prohibited by the new credit card law. (They are not allowed to hike your APR for no reason during the first 12 months after opening an account, though. After that, any interest-rate increases will only apply to future card charges and not to your existing balance.)

Doing your homework

Before you call your bank, you’ve got to be absolutely sure your credit and financials are in pristine condition. This way, even if the bank declines your request, you could actually fight back.
1. Check your credit.
How’s your credit doing these days? Is your credit score at least 740? Is your credit history in pristine condition: no late payments, no maxed-out accounts, no recent credit applications?
Before you call your credit-card company, pull your credit report to make sure it’s clean and has no erroneous information. You can order one free copy a year from each of the three credit bureaus through http://www.annualcreditreport.com/. Some people go as far as asking the credit issuer which bureau it uses so that they can pull their report from the bureau in question.
If you find errors on your report, dispute them with the credit bureau. (Each report contains information on the steps you need to take and you can dispute errors online or via regular mail.) Keep copies of all emails, calls or other communication for your records.
2. Gather up your paperwork
The card issuer may request that you supply additional paperwork in order to consider your request for a lower interest rate. Most likely, that will be information that isn’t included on a credit report, such as proof of employment and income. Be armed with copies of paystubs or even your latest tax return.
You may not have to use these, but if requested, you can only benefit from being able to provide them at a moment’s notice. If you are in a tough financial situation (you’ve recently lost your job, for example, or have taken a cut in pay), your issuer will likely not agree to reduce your APR. You may qualify for a so-called “hardship program,” but the trade-off is you’d have to close your account while you pay it off.
3. Have a back-up plan
Even if your credit is in pristine condition, the issuer may decline your request. In that case, it pays to be prepared: have at least one other credit card with enough available credit for you to make a balance transfer without maxing it out (remember, using as little of your available credit limits as possible helps your credit score). Faced with the threat of losing your business, the customer service rep may change his or her mind.

Best small business credit card deals and offers today – June 3, 2010 top business credit cards with no annual fee

 When many small businesses need to come up with fast funding, they often turn to small business credit cards. These small business credit cards offer many of the same benefits of a personal credit card, but have several other advantages. Small business credit cards are so popular, nearly 66% of all small business use them and 40% use these cards exclusively. Using a credit card exclusively for your business is a great way to keep your personal funds separate from your business funds. This is especially helpful when preparing your taxes.
If you are going to spend money (which you will with a small business) why not get rewarded for it? Many of these cards offer benefits such as frequent flyer miles or even office supplies. Get something back for using a credit card. In addition to receiving rewards, you are able to start building credit for your business.
When searching for a business credit card, you should look for a few things. Find a card that is widely accepted and has no annual fee. In addition, try to find one that has a promotional period such as 6 or 12 months no interest on purchases. One of the most important considerations is the interest rate. Signing up for a high interest credit card can really cause trouble for you later down the line. Keep a close watch on your interest rate after you receive your card.
Here are today’s top picks for small business credit cards:
Chase is offering the Ink card with no annual fee and a 0% introductory period of six months. In addition, you can enjoy a reasonable 11.24% variable interest rate after the intro rate expires. This card also offers a rewards system.
Capital one has ha business Platinum with preferred No hassle miles. This card has 0% on purchases for six months, no annual fee, and a variable interest rate of 14.99% after the intro period.

How to Make Sure You Get the Best Credit Card Possible

Summary: In this economic situation, it's more important than ever that you choose the best credit card possible!

We all want to pick the best credit card. Who ever says, 'yeah, I want a pretty good credit card, but not the best one I can get.' And now that it's so hard to get credit cards and maintain your economic status, that type of decision is more important than ever.

Tips on choosing the best credit card

If you want to choose the best credit card, there are some absolutely essential steps you can follow:

1. Stay informed. The credit card world is changing, and if you're not up to date, you can't make the best decision possible. Find a reliable source of information, such as Credit Card Whiz Kid, and stick with it.

2. Go for a mainstream credit card. You want a Visa, a Mastercard, an American Express -- one of the cards accepted and known throughout the world. Choosing a department store credit card, for example, can in some cases instantly lower your credit score. In this climate, you don't want to mess around with the possibility of lowering your credit score.

3. Watch the regulars above the bonuses. The best credit card is the one with a high credit limit, a low interest rate, and no annual fee. If it doesn't offer 1% cash back or something, who really cares? The bonuses aren't nearly as important as the basics. Of course, if you can find a card that offers both, more power to you -- but the basics have to be there first.

4. Only apply for a few credit cards. The very best cards require a high credit score to obtain, and if you know you can't get them, don't bother applying. If that sounds defeatist, keep in mind that every credit check makes a black mark on your credit score.

It's not a big mark, and most people won't even notice it. But if your score is already on the low side, you don't want more credit checks than necessary. And even a high credit score can suffer if you have dozens of credit checks in a short time. Only apply for a few cards, and make sure you have a good chance of getting them.

Remember, in this day and age, you have to make all decisions wisely. Find the best credit card available and do your best to make it yours!