*Note: This was written by a Yahoo! contributor. Do you have a personal finance story that you’d like to share? Sign up with the Yahoo! Contributor Network to start publishing your own finance articles.

When I was young, I used credit cards to survive. Today, I’m a bit better off and a lot more educated. Now I pay my balances off at the end of every month – no one gets interest from me. But, I’ve also learned how to squeeze every dime out of my cards. That’s why I track down the best offers, use them to my advantage and move on. Here’s what I look for.

Cash Back and Rewards Programs

First and foremost, I look for the largest cash back rewards I can find. To me, “Cash Is King.” Cash doesn’t expire and it’s yours once you earn it. The more cash back I can get, the happier it makes me. But, I don’t stop there. If I can get cash back and rewards from the same cards or a combination of two cards, I’m on it.

Here’s my current set up. I’m in love with U-Promise. Not because I’ve got kids going to college – that ship has already sailed. It’s because I can build up cash in a U-Promise account and I don’t need to go to college to get it out. I can request periodic withdrawals for any reason.

Before I buy anything, I check the going U-Promise rewards percentage. You’d be amazed how many companies give you money in your U-Promise account – just for buying via through U-Promise on the Internet and on a credit card. I even order whatever I need from Lowe’s online, pay for it with my U-Promise Master Card and pick it up at the store an hour later.

Depending on the current offers, I can reap 1-20% from the value of my purchases and another 1-10% from using my U-Promise credit card. For example, I can go online and buy flowers for Mother’s Day, get 10% of the purchase as cash back into my account from FTD.com and another 3% for using my U-Promise credit card or even higher cash back rewards if I find another credit card with a better offer.

Or I can just go to the grocery store and get 10% back by using my U-Promise credit card everyday. That makes me really happy when Sweetbay Supermarket gives me a “$10 for every $40 spent” coupon in the mail. That means I just purchased groceries at a 32.5% discount. Who would walk away from that?

The combinations are endless and the dollars rack up in my account really quick. I just pay attention to the current cash back and rewards bonuses and make my purchases accordingly.

Purchase Protection and Extended Warranties

I hardly ever pay cash for anything and I try not to use my debit card. Why, you might ask? Because if something goes wrong, a cash purchase doesn’t protect me. For example, if I pay for a car repair with cash or my debit card and I have a problem down the road, I can’t call anyone to come to my aid. If I pay with a credit card, I can lodge a dispute on services rendered and have a chance at a better resolution or refund.

Some companies even offer extended consumer purchase warranties as part of the credit card features. If it’s free, it’s for me.

Life Insurance

Since I travel a good bit, I purchase all of my fares on a credit card that offers $100,000 free travel and accident life insurance. I may not personally reap the benefit; but, I’ve got it documented in my estate papers as just one more potential inheritance for my heirs. Why not?

Convenience

Last, but not least, I use credit cards to my advantage by having one bill to pay at the end of the month – in addition to getting cash back. I pay my phone bill, garbage bill, water bill, cable TV bill, car insurance, club accounts and repair bills on my credit card. Then I write one check and smile as I rack up the rewards points.

I have found that when I am careful and disciplined to pay my credit cards off monthly, I have a world of possibilities available to me. I just keep my eyes open for the best deals and learn to use them all to my advantage.

More from this contributor:

Ten Tips for Decorating and Staging to Help Sell Your House

Save Money with Warm Winter Drapes for Your Windows

Article source: http://finance.yahoo.com/news/first-person-using-credit-cards-advantage-164800731.html

*Note: This was written by a Yahoo! contributor. Do you have a personal finance story that you’d like to share? Sign up with the Yahoo! Contributor Network to start publishing your own finance articles.

When I was young, I used credit cards to survive. Today, I’m a bit better off and a lot more educated. Now I pay my balances off at the end of every month – no one gets interest from me. But, I’ve also learned how to squeeze every dime out of my cards. That’s why I track down the best offers, use them to my advantage and move on. Here’s what I look for.

Cash Back and Rewards Programs

First and foremost, I look for the largest cash back rewards I can find. To me, “Cash Is King.” Cash doesn’t expire and it’s yours once you earn it. The more cash back I can get, the happier it makes me. But, I don’t stop there. If I can get cash back and rewards from the same cards or a combination of two cards, I’m on it.

Here’s my current set up. I’m in love with U-Promise. Not because I’ve got kids going to college – that ship has already sailed. It’s because I can build up cash in a U-Promise account and I don’t need to go to college to get it out. I can request periodic withdrawals for any reason.

Before I buy anything, I check the going U-Promise rewards percentage. You’d be amazed how many companies give you money in your U-Promise account – just for buying via through U-Promise on the Internet and on a credit card. I even order whatever I need from Lowe’s online, pay for it with my U-Promise Master Card and pick it up at the store an hour later.

Depending on the current offers, I can reap 1-20% from the value of my purchases and another 1-10% from using my U-Promise credit card. For example, I can go online and buy flowers for Mother’s Day, get 10% of the purchase as cash back into my account from FTD.com and another 3% for using my U-Promise credit card or even higher cash back rewards if I find another credit card with a better offer.

Or I can just go to the grocery store and get 10% back by using my U-Promise credit card everyday. That makes me really happy when Sweetbay Supermarket gives me a “$10 for every $40 spent” coupon in the mail. That means I just purchased groceries at a 32.5% discount. Who would walk away from that?

The combinations are endless and the dollars rack up in my account really quick. I just pay attention to the current cash back and rewards bonuses and make my purchases accordingly.

Purchase Protection and Extended Warranties

I hardly ever pay cash for anything and I try not to use my debit card. Why, you might ask? Because if something goes wrong, a cash purchase doesn’t protect me. For example, if I pay for a car repair with cash or my debit card and I have a problem down the road, I can’t call anyone to come to my aid. If I pay with a credit card, I can lodge a dispute on services rendered and have a chance at a better resolution or refund.

Some companies even offer extended consumer purchase warranties as part of the credit card features. If it’s free, it’s for me.

Life Insurance

Since I travel a good bit, I purchase all of my fares on a credit card that offers $100,000 free travel and accident life insurance. I may not personally reap the benefit; but, I’ve got it documented in my estate papers as just one more potential inheritance for my heirs. Why not?

Convenience

Last, but not least, I use credit cards to my advantage by having one bill to pay at the end of the month – in addition to getting cash back. I pay my phone bill, garbage bill, water bill, cable TV bill, car insurance, club accounts and repair bills on my credit card. Then I write one check and smile as I rack up the rewards points.

I have found that when I am careful and disciplined to pay my credit cards off monthly, I have a world of possibilities available to me. I just keep my eyes open for the best deals and learn to use them all to my advantage.

More from this contributor:

Ten Tips for Decorating and Staging to Help Sell Your House

Save Money with Warm Winter Drapes for Your Windows

Article source: http://finance.yahoo.com/news/first-person-using-credit-cards-advantage-164800731.html

Google is fighting concerns with the security of Google Wallet — an app that converts mobile phones into credit cards — by addressing known issues and pushing on with its launch partners, MasterCard and Sprint.

In a phone interview with The Daily Caller Nate Tyler, Google Global Communications personnel, said, “We feel very strongly that we’ve created a secure product.”

Tech enthusiasts at The Smartphone Champ, however, have identified at least one way in which a person can get access to Google Wallet. If the phone is stolen, the thief can enter the application settings menu, clear the data for Google Wallet and attach the app to a new account. After that, the hacker can create a new pin and log into the account in order to gain access to the funds.

Even on a non-rooted phone, which limits access and should protect the phone from inexperienced users, the app can be hacked, reports Security Watch. A thief can root the phone and steal the funds from Google Wallet.

Google responded to the security breach by temporarily disabling the use of prepaid cards making them not available to users.

Two days later, Google was re-issuing cards claiming they fixed the problem, but the “fix” was having users contact Google to reactivate their Wallet accounts. This means that the technical issue still remains.

Though hackers may be able to access the funds and make purchases, Tyler said, there is no way to retrieve credit card information because only the last four digits of the card number are shown.

A “secure element” chip that’s embedded in the software will securely store all payments, Tyler said.

With these security vulnerabilities surfacing, Verizon, who got heat from its users for “blocking” the app on its phones, may be feeling vindicated.

Verizon had already decided not to feature the app on its phones due to security concerns.

A press release sent out by Verizon in December said that in order for the application to be featured, the app would have to be integrated into a “new, secure, and proprietary hardware element in our phones.”

Security was not the only reason why Verizon chose not to feature the app on its new line of phones.

Verizon said in the statement that “Verizon does not block applications,” but Tyler said that Verizon did in fact ask Google not to include the functionality on the system.

With Verizon not wanting to feature the app on the phones, Google was set to be launch partners with Sprint.

Sprint is the first and only carrier of the application up until this point because, Tyler said, Google decided to build an app and just make it available to get it out on the market.

A Sprint rep said that though the company is proud to be the first carrier of the mobile payment app, it “does not preclude Sprint from offering other mobile payment capabilities to our customers.”

A mobile payment application wouldn’t work without a credit card company involved, so Google launched with MasterCard. After the app has been out for a while, Tyler said, Google will reach out to other banks.

Citi MasterCard is the only credit card company currently available on Google Wallet, but it also offers Google prepaid cards. Users can add money from any one of their credit cards to these prepaid cards.

The application, he said, is compatible with all major credit cards, not just MasterCard, but that option is not available at the moment.

That means that Visa credit card holders may be able to use the app in the future. A representative from Visa told The Daily Caller that the company is licensed to Google.

The press release sent out by Visa on September 19 reads, “The agreement sets the stage for Visa-issuing banks worldwide to enable Visa account holders to add their credit accounts to Google Wallet.”

Nothing has changed, the rep. said, but Google just decided to launch with MasterCard.

Google is free to deploy Visa’s payment application in their wallet and, according to the representative, has plans to do so.

Along with Google, Visa is also licensed to Verizon’s mobile payment plan, ISIS.

A Verizon representative described ISIS as, “a program that will offer mobile payment options and [is] coming in trial markets later this year.”

Visa uses what’s called “Visa payWave.” PayWave is a payment feature that allows users to wave their card in front of a card reader instead of swiping it.

The application is powered by Near Field Communication (NFC) and it, like ISIS, is simply a payment app ?“ it does not monitor the account like Google Wallet.

Visa is also planning to launch its own virtual wallet. The rep said the company wants to build something that will be a part of electronic and mobile commerce to reach out to more users.

Follow Alexandra on Twitter
Join the conversation on The Daily Caller

Read more stories from The Daily Caller

Google explains relationship with MasterCard, Sprint and the future of Google Wallet

The Devil and Rick Santorum

Big Swinging Swingers

Congressional investigations sought over IRS ‘assault’ on tea party groups

White House to pitch business tax ‘framework’ to compete with Romney’s reform announcement

Article source: http://news.yahoo.com/google-explains-relationship-mastercard-sprint-future-google-wallet-135342346.html

Google is fighting concerns with the security of Google Wallet — an app that converts mobile phones into credit cards — by addressing known issues and pushing on with its launch partners, MasterCard and Sprint.

In a phone interview with The Daily Caller Nate Tyler, Google Global Communications personnel, said, “We feel very strongly that we’ve created a secure product.”

Tech enthusiasts at The Smartphone Champ, however, have identified at least one way in which a person can get access to Google Wallet. If the phone is stolen, the thief can enter the application settings menu, clear the data for Google Wallet and attach the app to a new account. After that, the hacker can create a new pin and log into the account in order to gain access to the funds.

Even on a non-rooted phone, which limits access and should protect the phone from inexperienced users, the app can be hacked, reports Security Watch. A thief can root the phone and steal the funds from Google Wallet.

Google responded to the security breach by temporarily disabling the use of prepaid cards making them not available to users.

Two days later, Google was re-issuing cards claiming they fixed the problem, but the “fix” was having users contact Google to reactivate their Wallet accounts. This means that the technical issue still remains.

Though hackers may be able to access the funds and make purchases, Tyler said, there is no way to retrieve credit card information because only the last four digits of the card number are shown.

A “secure element” chip that’s embedded in the software will securely store all payments, Tyler said.

With these security vulnerabilities surfacing, Verizon, who got heat from its users for “blocking” the app on its phones, may be feeling vindicated.

Verizon had already decided not to feature the app on its phones due to security concerns.

A press release sent out by Verizon in December said that in order for the application to be featured, the app would have to be integrated into a “new, secure, and proprietary hardware element in our phones.”

Security was not the only reason why Verizon chose not to feature the app on its new line of phones.

Verizon said in the statement that “Verizon does not block applications,” but Tyler said that Verizon did in fact ask Google not to include the functionality on the system.

With Verizon not wanting to feature the app on the phones, Google was set to be launch partners with Sprint.

Sprint is the first and only carrier of the application up until this point because, Tyler said, Google decided to build an app and just make it available to get it out on the market.

A Sprint rep said that though the company is proud to be the first carrier of the mobile payment app, it “does not preclude Sprint from offering other mobile payment capabilities to our customers.”

A mobile payment application wouldn’t work without a credit card company involved, so Google launched with MasterCard. After the app has been out for a while, Tyler said, Google will reach out to other banks.

Citi MasterCard is the only credit card company currently available on Google Wallet, but it also offers Google prepaid cards. Users can add money from any one of their credit cards to these prepaid cards.

The application, he said, is compatible with all major credit cards, not just MasterCard, but that option is not available at the moment.

That means that Visa credit card holders may be able to use the app in the future. A representative from Visa told The Daily Caller that the company is licensed to Google.

The press release sent out by Visa on September 19 reads, “The agreement sets the stage for Visa-issuing banks worldwide to enable Visa account holders to add their credit accounts to Google Wallet.”

Nothing has changed, the rep. said, but Google just decided to launch with MasterCard.

Google is free to deploy Visa’s payment application in their wallet and, according to the representative, has plans to do so.

Along with Google, Visa is also licensed to Verizon’s mobile payment plan, ISIS.

A Verizon representative described ISIS as, “a program that will offer mobile payment options and [is] coming in trial markets later this year.”

Visa uses what’s called “Visa payWave.” PayWave is a payment feature that allows users to wave their card in front of a card reader instead of swiping it.

The application is powered by Near Field Communication (NFC) and it, like ISIS, is simply a payment app ?“ it does not monitor the account like Google Wallet.

Visa is also planning to launch its own virtual wallet. The rep said the company wants to build something that will be a part of electronic and mobile commerce to reach out to more users.

Follow Alexandra on Twitter
Join the conversation on The Daily Caller

Read more stories from The Daily Caller

Google explains relationship with MasterCard, Sprint and the future of Google Wallet

The Devil and Rick Santorum

Big Swinging Swingers

Congressional investigations sought over IRS ‘assault’ on tea party groups

White House to pitch business tax ‘framework’ to compete with Romney’s reform announcement

Article source: http://news.yahoo.com/google-explains-relationship-mastercard-sprint-future-google-wallet-135342346.html

Chip ahoy! Are RFID credit cards secure?

Ask any of the estimated 9 million Americans who become victims of identity theft each year: Getting billed for someone else’s credit card charges stinks.

Enter the “radio frequency identification” credit card. Designed to provide extra layers of security against identity theft, an RFID card transmits credit card information through radio waves from a chip embedded in the card. (The cards also have a magnetic stripe on the back so you can swipe it in the traditional way.)

If you’re using a card with an RFID chip and your merchant has a compatible card reader, you don’t have to swipe your card when making a transaction. You merely hold your card within one to four inches of the card scanner. This practice raises questions as to how safe the technology is and whether you should protect your RFID card with a special wallet or card sleeve. Here’s the skinny on RFID credit cards.

Credit card safety on the Internet

Benefits of the RFID card

Available through credit card companies such as Visa, MasterCard and American Express, RFID cards eliminate certain security hazards posed by traditional cards but could make you vulnerable to others. According to Denis G. Kelly, the author of “The Official Identity Theft Prevention Handbook” and the chairman of the Identity Ambassador Commission in Seattle, the security benefits of the RFID cards are threefold: limited card exposure, data encryption and new authentication codes.

A side benefit: RFID cards also help speed the checkout process. “RFID technology tends to cut the overall transaction time (of a credit card purchase) in half,” says Kelly.

Because the technology doesn’t require a cardholder to physically remove the card from a wallet, RFID can eliminate the need for waiters, retail clerks and other salespeople to handle your card, Kelly points out. That creepy guy lurking behind you at the grocery store? He won’t get a chance to see your credit card info because you’ll never have to take your card out.

Does RFID make it easier to steal?

The new technology causes some to worry that it’s now easier to steal RFID credit card information. Because your RFID card allows you to complete transactions without pulling out the card itself, critics argue that identity thieves could swipe your credit information simply by placing an RFID scanner nearby.

Jay Foley, the executive director of the Identity Theft Resource Center in San Diego, admits that thieves could get your card information remotely through a scanner, but adds that they probably wouldn’t be able to use it. Unlike magnetic stripe cards, RFID credit cards encrypt a cardholder’s information. To access a consumer’s account, thieves not only have to scan the card but must also break the card issuer’s encryption.

Authentication code

RFID cards also create a new authentication code for each transaction. If identity thieves nab info by physically skimming a traditional credit card, they can use that information as many times as they like, racking up purchase after purchase until the card gets reported. If all they have is the information from your RFID chip, they can make only one purchase with that authentication code.

“If someone captures your (RFID) card (electronically), the most they can use it is one transaction,” Foley explains.

But of course the encryption and authentication code helps you only if your card information is swiped remotely from an unauthorized scanner. If thieves physically nab your RFID card, they can still use the magnetic stripe all over town until you alert the authorities.

Reports of RFID hacking

There’s no doubt that limiting who handles your credit card and the number of purchases thieves can make on stolen accounts will significantly increase card security, but questions remain as to the reliability of RFID credit card encryption.

According to a University of Massachusetts, Amherst, study published in 2007, researchers purchased a commercial RFID scanner over the Internet and accessed sensitive information on 20 different first-generation RFID cards issued in 2006.

One year later, a University of Virginia graduate student successfully hacked RFID encryption found in rechargeable bus and subway cards issued by the Massachusetts Bay Transportation Authority.

It’s worth noting that, to date, there’s never been a major RFID credit card breach outside of a lab, but that’s not stopping retailers from selling aluminum-lined wallets and card sleeves designed to disrupt unwanted radio waves from reaching your cards.

Protecting your RFID credit card

The first step to protecting yourself from RFID identity theft is simply knowing if you have an RFID-enabled credit card. You can find out by calling your credit card company, reading your card agreement or checking your card for the presence of an RFID chip or RFID logo, which looks like a series of expanding ripples or waves.

Consumers concerned about the security of their RFID card can purchase an RFID-blocking wallet or credit card shield, although both Kelly and Foley insist that such protection products aren’t absolutely necessary at this point.

“If it’s that big a concern to you,” says Kelly, “I probably recommend not using an RFID card.”

More from IndexCreditCards.com:

• Time to fix the arbitration system?
• Who’s to blame for credit card debt?
• Credit card technology: 2012 and beyond

Article source: http://money.msn.com/credit-cards/risks-of-swipe-and-go-credit-cards-indexcreditcards.aspx

ATLANTA, Feb. 21, 2012 /PRNewswire/ – Equifax (NYSE: EFX – News) reported today that nearly 60 of the top 100 metropolitan statistical areas (MSAs) hardest hit by credit card debt realized double-digit declines in the percentage of income owed to credit card companies—nearly 24 percent in some areas*.

(Logo: http://photos.prnewswire.com/prnh/20060224/CLF037LOGO )

The cities with the most sizable reductions are clustered in four states across the country: Florida, Louisiana, Washington and California.  Florida tops the list as the state with the most cities—five— realizing the largest declines.

“It is interesting that MSAs from some of the states hardest hit by the recession showed some of the biggest reductions in credit card debt,” said Trey Loughran, President of Equifax’s Personal Solutions business. “This suggests that consumers from these hardest hit areas have been especially cautious in their spending and diligent in paying down their credit card debt.”

Comparing percentage of income owed to credit card companies between Q4 2010 and Q4 2011, the following MSAs realized the largest year-over-year declines for the country. 

• FL:  Port St. Lucie – 23.59%
• FL:  Ocala, FL – 20.97%
• WA:  Bremerton-Silverdale – 20.62% 
• LA:  Shreveport-Bossier City – 20.10%
• CA:  Bakersfield-Delano – 19.05%
• FL:  Northport-Bradenton-Sarasota – 18.44%
• FL:  Tampa-St. Petersburg-Clearwater – 18.43%
• FL:  Lakeland-Winter Haven – 18.32%
• CA: Salinas, CA – 17.85%

The reduction in U.S. consumer credit card debt began a steady decline in the fourth quarter of 2010 that continued through the end of 2011, as consumers remained cautious of their spending and focused on deleveraging debt.  Consumers owed up to 17 percent of their income to credit card companies in 2010, according to Equifax’s analysis.

Equifax reports that while total consumer debt (mortgage, auto, credit card, etc.) has declined nearly 11 percent from its peak of $12.4 trillion in October of 2008, American households still owe more than $800 billion in debt to credit card companies alone – irrespective of other debts such as mortgages or student loans**.

Following is the list  of the MSAs with the most sizable changes in the percentage of income owed to credit card companies, comparing year-over-year fourth quarter data:

 

 

 

Top MSAs: Percentage Decline in Credit Card Debt (Percent of

Income Owed to Credit Card Companies): Q4 2010 to Q4 2011

YOY % Reduction

(Q4 2010 to 2011):

Percent of Income

Owed to Credit

Card Companies

MPSL

Port St. Lucie, FL Metropolitan Statistical Area

-23.59%

MOCA

Ocala, FL Metropolitan Statistical Area

-20.97%

MBRE

Bremerton-Silverdale, WA Metropolitan Statistical Area

-20.62%

MSHR

Shreveport-Bossier City, LA Metropolitan Statistical Area

-20.10%

MBAK

Bakersfield-Delano, CA Metropolitan Statistical Area

-19.05%

MNPT

North Port-Bradenton-Sarasota, FL Metropolitan Statistical Area

-18.44%

MTAM

Tampa-St. Petersburg-Clearwater, FL Metropolitan Statistical Area

-18.43%

MLAE

Lakeland-Winter Haven, FL Metropolitan Statistical Area

-18.32%

MSAL

Salinas, CA Metropolitan Statistical Area

-17.85%

MFRE

Fresno, CA Metropolitan Statistical Area

-17.79%

MLAS

Las Vegas-Paradise, NV Metropolitan Statistical Area

-17.73%

MWOR

Worcester, MA Metropolitan Statistical Area

-17.27%

MLAA

Lafayette, LA Metropolitan Statistical Area

-16.59%

MORL

Orlando-Kissimmee-Sanford, FL Metropolitan Statistical Area

-16.43%

MCAN

Canton-Massillon, OH Metropolitan Statistical Area

-16.22%

MDEL

Deltona-Daytona Beach-Ormond Beach, FL Metropolitan Statistical Area

-16.19%

MREN

Reno-Sparks, NV Metropolitan Statistical Area

-16.06%

MBOI

Boise City-Nampa, ID Metropolitan Statistical Area

-16.06%

MMOD

Modesto, CA Metropolitan Statistical Area

-15.86%

MTUL

Tulsa, OK Metropolitan Statistical Area

-15.69%

MNEH

New Haven-Milford, CT Metropolitan Statistical Area

-15.59%

MSTO

Stockton, CA Metropolitan Statistical Area

-15.33%

MSAA

Santa Rosa-Petaluma, CA Metropolitan Statistical Area

-15.19%

MYOU

Youngstown-Warren-Boardman, OH-PA Metropolitan Statistical Area

-15.18%

MMNC

Manchester-Nashua, NH Metropolitan Statistical Area

-15.18%

MJAC

Jacksonville, FL Metropolitan Statistical Area

-15.10%

MPEN

Pensacola-Ferry Pass-Brent, FL Metropolitan Statistical Area

-15.05%

MYAK

Yakima, WA Metropolitan Statistical Area

-14.85%

MBAT

Baton Rouge, LA Metropolitan Statistical Area

-14.69%

MVAL

Vallejo-Fairfield, CA Metropolitan Statistical Area

-14.63%

MTOL

Toledo, OH Metropolitan Statistical Area

-14.63%

MHAR

Hartford-West Hartford-East Hartford, CT Metropolitan Statistical Area

-14.27%

MPHO

Phoenix-Mesa-Glendale, AZ Metropolitan Statistical Area

-14.26%

MHUT

Huntington-Ashland, WV-KY-OH Metropolitan Statistical Area

-14.24%

MPAL

Palm Bay-Melbourne-Titusville, FL Metropolitan Statistical Area

-14.11%

MAKR

Akron, OH Metropolitan Statistical Area

-14.10%

MATA

Atlantic City-Hammonton, NJ Metropolitan Statistical Area

-13.17%

MRIV

Riverside-San Bernardino-Ontario, CA Metropolitan Statistical Area

-12.95%

MCHW

Charleston, WV Metropolitan Statistical Area

-12.93%

MDAY

Dayton, OH Metropolitan Statistical Area

-12.26%

MCIN

Cincinnati-Middletown, OH-KY-IN Metropolitan Statistical Area

-12.23%

MNOW

Norwich-New London, CT Metropolitan Statistical Area

-12.20%

MOKL

Oklahoma City, OK Metropolitan Statistical Area

-12.11%

MSAT

Santa Barbara-Santa Maria-Goleta, CA Metropolitan Statistical Area

-12.09%

MCCF

Cape Coral-Fort Myers, FL Metropolitan Statistical Area

-11.84%

MCLE

Cleveland-Elyria-Mentor, OH Metropolitan Statistical Area

-11.80%

MALB

Albuquerque, NM Metropolitan Statistical Area

-11.79%

MGAI

Gainesville, FL Metropolitan Statistical Area

-11.37%

MLEX

Lexington-Fayette, KY Metropolitan Statistical Area

-11.27%

MTAL

Tallahassee, FL Metropolitan Statistical Area

-11.23%

MLOU

Louisville-Jefferson County, KY-IN Metropolitan Statistical Area

-11.20%

MNEO

New Orleans-Metairie-Kenner, LA Metropolitan Statistical Area

-11.15%

MWIS

Winston-Salem, NC Metropolitan Statistical Area

-11.13%

MDAV

Davenport-Moline-Rock Island, IA-IL Metropolitan Statistical Area

-10.92%

MPOT

Portland-Vancouver-Hillsboro, OR-WA Metropolitan Statistical Area

-10.56%

MBRP

Bridgeport-Stamford-Norwalk, CT Metropolitan Statistical Area

-10.52%

MSPI

Springfield, MA Metropolitan Statistical Area

-10.47%

MFOR

Fort Smith, AR-OK Metropolitan Statistical Area

-10.20%

MSYR

Syracuse, NY Metropolitan Statistical Area

-10.01%

 

 

About Equifax

Equifax Personal Solutions empowers consumers with the confidence and control to be their financial best. Find out more about Equifax’s innovative suite of credit monitoring and identity theft products designed to enable consumers to maximize their financial well-being at www.equifax.com. Get smart information on everything from credit to retirement, all in one place at the Equifax Finance Blog, blog.equifax.com.

Equifax is a global leader in consumer, commercial and workforce information solutions, providing businesses of all sizes and consumers with information they can trust. We organize and assimilate data on more than 500 million consumers and 81 million businesses worldwide, and use advanced analytics and proprietary technology to create and deliver customized insights that enrich both the performance of businesses and the lives of consumers.

Headquartered in Atlanta, Equifax operates or has investments in 17 countries and is a member of Standard Poor’s (SP) 500® Index. Its common stock is traded on the New York Stock Exchange (NYSE) under the symbol EFX. For more information, please visit www.equifax.com.

*The Equifax National Credit Trends Report is the source of the research highlighted above. Distributed to customers, this monthly report provides aggregated credit trend data for bankcard, consumer finance/retail, auto finance, auto bank, home equity revolving and first mortgage loans, among other metrics.

For this research, Equifax analyzed quarterly anonymized data on consumers with more than one tradeline (installment loan or revolving account) on their credit file. The information is sourced from a sample of the Equifax credit database and applied to predict trends across the overall population.

For more than a decade, Equifax Analytical Services has provided analytic solutions to businesses. Using a wide range of statistical techniques, our consultants design, develop and implement custom analysis and credit scores and generic analytical models for target marketing and portfolio management programs. With Equifax Analytical Services, customers can gain access to economic, demographic and general credit trend data through creditforecast.com, a forecasting tool built by Equifax and Moody’s Analytics.

**Statistical reference based on consumer credit data from the Federal Reserve Board’s G.19 release which can be found at http://www.federalreserve.gov/releases/g19/current.

 

Article source: http://finance.yahoo.com/news/americans-owe-less-credit-cards-130000123.html

Shawnee County is going to take a tough look at its policies regarding how, to whom and when credit cards are issued.

The concern is three-fold. First, the policy for issuing credit cards hasn’t been followed. Second, there have been multiple instances of fraud as a result of the number of county credit cards. And third, the county ends up paying several hundred dollars in sales tax because most store cashiers don’t know or won’t recognize the county as a tax-exempt entity.

“There is a need, at times, for a credit card, but individual employees carrying them on their person at all times is what I question,” Stacey Woolington, county audit/finance/purchasing director, told commissioners Monday. “I think at some point we need to look at how many credit cards we have. The more people that have credit cards, the more we are opening ourselves up to fraud.”

The county currently has 131 credit cards — 124 of which are issued to individuals. Woolington said she didn’t have an exact breakdown of cards by department.

She said she didn’t know how much money the county had spent in sales tax through credit card use, but said it was in the thousands, rather than hundreds of thousands, of dollars.

“Unless the entity we’re doing business with knows we are tax-exempt, we pay sales tax,” Woolington said. “When we use credit cards, we end up paying more for items because we pay that sales tax.”

She also said there had been three or four instances of credit card numbers being stolen by non-county employees and used to make fraudulent purchases since she began in July 2010.

Commissioners on Monday directed Woolington to spearhead a multi-departmental committee to review the county’s credit card policies and make recommendations that would help reduce current problems.

“We need to be consistent with how we issue credit cards,” Commissioner Ted Ensley said after the meeting. “And we need to get our arms around the sales tax issue. That’s more than just pocket change.”

The county’s credit card issuance policy requires employees first to apply for cards through purchasing procedures. An application is forwarded and reviewed by the purchasing director, who makes a recommendation to the audit/finance director — both roles currently are filled by Woolington. Woolington then is supposed to review the application and make a recommendation to the commission.

In recent months, departments simply have sent Woolington a memo requesting the cards, she said. She said she wasn’t made aware of the county’s formal policy.

The discussion Monday was precipitated by a request for six credit cards for solid waste employees. A later item on Monday’s agenda would have provided three credit cards to employees within the emergency management department. Both were deferred to give department heads a chance to craft a new policy — a conversation Woolington said she would be happy to lead.

“I am not a proponent of credit card use by employees,” she said. “It is an accounting nightmare.”

Woolington said she knew her statements wouldn’t make her popular among department heads, most of whom rely on credit cards for convenience.

That is because vendor accounts — which allow for monthly invoices rather than payments for individual purchases — are becoming more challenging to establish. Vendors now have to get approval from their corporate office and make entities “jump through several hoops” to set up an account, said parks and recreation director John Knight.

“Accounts are becoming almost impossible to set up,” he said.

Solid waste director Steve Bolton said it used to be common practice in the county to use other departments’ accounts with vendors because it took two or three days to process account paperwork. He said he would never do that now but the challenge remains. Purchases without a vendor account or credit card, he said, can take a day or more to process.

“That’s my reason for credit cards,” Bolton said. “If that’s not good enough, I’ll accept that, and we’ll trudge along.”

Knight said he felt somewhat responsible for the issue because of a Jan. 19 commission vote that granted credit cards to 47 of his employees. Only five cards were issued to new employees to the department as a result of the Jan. 1 merger with the city.

The parks and recreation department keeps many of its cards locked up throughout the county, so employees can check them out on a log when they need to, rather than carrying them in their wallets. Knight said Woolington helped him establish the procedure.

He said he hopes the parks department can keep its current credit card policy because it works. But whatever happens with the credit card policy, he said, it should be the result of a collaborative effort among department heads, because one policy won’t fit every department.

Dave Sterbenz, emergency management director, agreed.

“I’m against shotgun policies, where you scatter and hit everyone,” he said.

Sterbenz said he was confident he and his two employees would get the cards issued individually because of the nature of their job — responding to emergencies.

“We can’t predict when emergencies will happen, and when they do, we don’t have time to check them out of a desk,” he said of credit cards.

Article source: http://cjonline.com/news/2012-02-20/county-reconsider-credit-card-policies

Credit cards are changing in a bid to make them more secure, while at the same time making them more convenient. We all carry cards that have chips embedded in them, and soon every new card issued will be capable of contactless payments through RFID or NFC.

Being able to pay just by holding your card near a reader is very convenient. It also adds security as you never have to let go of your card or hide the PIN you are entering from those around you in a store. However, in order for it to work your card has to be capable of transmitting information all the time, on demand.

Such a situation opens up the possibility of someone using their own reader to grab your card information without your knowledge. Your card might not even be out of your wallet, but the data is still vulnerable because it is always accessible. You also have no way of knowing your card has been tampered with, because the information is stolen without touching it.

That’s a difficult problem to overcome without removing the convenience factor of contactless payments, but researchers at the Pittsburgh Swanson School of Engineering have come up with a very simple solution. They’ve managed to add an on/off switch to a credit card.

This prototype system renders a credit card unable to transmit information to a reader in its default state. The off state. In order to turn it on, the card owner has to place his finger or thumb within a designated area on the card. The card is then active and can perform contactless data transfers.

As the card is only switched on when the user is touching it, the threat of having your card read when in a pocket or wallet disappears. The thief would have to be present when your card is being used, and then somehow get his reader near your card without you noticing. That’s just not going to happen. He could alternatively steal your card, but then you’d notice it was gone and cancel it.

This type of credit card theft is not common yet. That’s because the readers are still relatively expensive and contactless payments are limited in value. However, as the payment method becomes more commonplace the price of the readers will plummet and the limits on cards raised. So solving this issue now makes a lot of sense.

Read more at the Swanson School of Engineering, via VentureBeat

Article source: http://www.geek.com/articles/news/researchers-give-credit-cards-an-onoff-switch-20120220/

The sooner your child learns to manage credit responsibly, the better. (Shutterstock)

Should you give your child a credit card? Maybe. Credit cards are an increasingly common payment method in today’s world, so the sooner your child learns to manage credit responsibly, the better. Can you teach your child to manage credit responsibly, and can your child be trusted to put those lessons into action? By understanding the pros and cons of handing over the plastic, you can decide when and how to take this step.

SEE: What Kids Should Know About Money

Teach Credit Management

Some parents give their kids credit cards to help them learn to manage credit while they can still be supervised, says Brette Sember, author of “The Complete Credit Repair Kit.”

“You can help your child learn how to use credit and teach them to use it only as a convenience, not as a license to spend. You’re there to help them do all this in a controlled environment,” she says. “The negatives are that if you don’t do this in the right way, you can set your child down a long path of misusing credit and thinking you can just swipe and buy anything you want,” she adds.

Sember says it makes sense to give teenagers a credit card once they are driving independently so they will always have money for gas. By adding the child as an authorized user, parents will be able to monitor all spending. She also suggests that children be required to provide receipts for all of their purchases and repay parents for items that are to come out of their own budgets at the end of each month.

If you want to exercise greater control over how much your child can spend, consider a no-fee prepaid card. “Prepaid cards are another great way to give kids a credit experience, but in a controlled manner. This is just like giving an allowance, with the card having a certain amount available each month to use,” Sember says.

Consider the Potential Drawbacks

Retired financial adviser Mike Arman of Florida thinks credit cards for kids are a horrible idea. If the child misuses credit, the parents can be held responsible. The parents’ credit can be damaged and they can be forced to pay the credit card bills.

“Handing a child a credit card is like handing a child a loaded pistol – one without a safety,” Arman says. “Giving kids credit cards teaches them that using plastic is OK. In fact, using plastic is not OK for multiple reasons,” he adds.

He says that because people spend more when they use plastic than when they use cash, giving a child a credit card teaches them to splurge, buy on impulse and achieve instant gratification.

“Personally, I think that before anyone of any age gets a credit card, they should have to take a course on fiscal responsibility and pass a test to show they’ve learned it,” he says.

Help Your Child Build Credit

What about establishing a credit history? Without one, your adult child will have trouble renting an apartment or getting a loan unless you cosign, which is always a dangerous decision.

“The main reason to give a credit card to a child is to help them begin to establish credit history early, teach fiscal responsibly and set positive patterns for future use of credit cards,” says Kimberly Foss, a Certified Financial Planner and founder of Empyrion Wealth Management in Roseville, Calif.

“Secured cards are a great way to get credit in a child’s name and establish credit with boundaries,” she says.

A secured card requires the account holder to deposit cash as collateral for the amount of the credit line. Secured cards generally have low credit limits of a few hundred dollars. The low limits combined with the collateral limit the damage the cardholder can do, but can help establish credit. When your child needs to rent an apartment or, further down the line, buy a car or a house, he or she will have a credit history and, hopefully, a high credit score that will make it easy to qualify for a rental or a loan. Make sure the card has minimal fees and that it will report your child’s payment history to all three major credit bureaus.

The Bottom Line

“Having your child take accountability for their own finances is a great way to help them prepare for their future,” says Howard Dvorkin, CPA and founder of Consolidated Credit Counseling Services. “However, you need to make sure they understand how the card works, starting with the connection between charging one month and paying the next. Emphasize that it’s not free money unless the balance is paid in full before the grace period expires. Explain interest and how it adds up if the debt continues to grow. Look at the fine print and review other key terms such as late fees,” he says.

Only you know how your child is likely to handle a credit card. However, if you use credit responsibly yourself, getting a credit card for your child can be an excellent opportunity to teach him or her sound financial management skills that can help him or her take advantage of the conveniences and other benefits of credit cards while leading a life free of consumer debt.

Article source: http://lifewise.canoe.ca/Investopedia/2012/02/16/19389451.html?cid=rsslifestyle

The sooner your child learns to manage credit responsibly, the better. (Shutterstock)

Should you give your child a credit card? Maybe. Credit cards are an increasingly common payment method in today’s world, so the sooner your child learns to manage credit responsibly, the better. Can you teach your child to manage credit responsibly, and can your child be trusted to put those lessons into action? By understanding the pros and cons of handing over the plastic, you can decide when and how to take this step.

SEE: What Kids Should Know About Money

Teach Credit Management

Some parents give their kids credit cards to help them learn to manage credit while they can still be supervised, says Brette Sember, author of “The Complete Credit Repair Kit.”

“You can help your child learn how to use credit and teach them to use it only as a convenience, not as a license to spend. You’re there to help them do all this in a controlled environment,” she says. “The negatives are that if you don’t do this in the right way, you can set your child down a long path of misusing credit and thinking you can just swipe and buy anything you want,” she adds.

Sember says it makes sense to give teenagers a credit card once they are driving independently so they will always have money for gas. By adding the child as an authorized user, parents will be able to monitor all spending. She also suggests that children be required to provide receipts for all of their purchases and repay parents for items that are to come out of their own budgets at the end of each month.

If you want to exercise greater control over how much your child can spend, consider a no-fee prepaid card. “Prepaid cards are another great way to give kids a credit experience, but in a controlled manner. This is just like giving an allowance, with the card having a certain amount available each month to use,” Sember says.

Consider the Potential Drawbacks

Retired financial adviser Mike Arman of Florida thinks credit cards for kids are a horrible idea. If the child misuses credit, the parents can be held responsible. The parents’ credit can be damaged and they can be forced to pay the credit card bills.

“Handing a child a credit card is like handing a child a loaded pistol – one without a safety,” Arman says. “Giving kids credit cards teaches them that using plastic is OK. In fact, using plastic is not OK for multiple reasons,” he adds.

He says that because people spend more when they use plastic than when they use cash, giving a child a credit card teaches them to splurge, buy on impulse and achieve instant gratification.

“Personally, I think that before anyone of any age gets a credit card, they should have to take a course on fiscal responsibility and pass a test to show they’ve learned it,” he says.

Help Your Child Build Credit

What about establishing a credit history? Without one, your adult child will have trouble renting an apartment or getting a loan unless you cosign, which is always a dangerous decision.

“The main reason to give a credit card to a child is to help them begin to establish credit history early, teach fiscal responsibly and set positive patterns for future use of credit cards,” says Kimberly Foss, a Certified Financial Planner and founder of Empyrion Wealth Management in Roseville, Calif.

“Secured cards are a great way to get credit in a child’s name and establish credit with boundaries,” she says.

A secured card requires the account holder to deposit cash as collateral for the amount of the credit line. Secured cards generally have low credit limits of a few hundred dollars. The low limits combined with the collateral limit the damage the cardholder can do, but can help establish credit. When your child needs to rent an apartment or, further down the line, buy a car or a house, he or she will have a credit history and, hopefully, a high credit score that will make it easy to qualify for a rental or a loan. Make sure the card has minimal fees and that it will report your child’s payment history to all three major credit bureaus.

The Bottom Line

“Having your child take accountability for their own finances is a great way to help them prepare for their future,” says Howard Dvorkin, CPA and founder of Consolidated Credit Counseling Services. “However, you need to make sure they understand how the card works, starting with the connection between charging one month and paying the next. Emphasize that it’s not free money unless the balance is paid in full before the grace period expires. Explain interest and how it adds up if the debt continues to grow. Look at the fine print and review other key terms such as late fees,” he says.

Only you know how your child is likely to handle a credit card. However, if you use credit responsibly yourself, getting a credit card for your child can be an excellent opportunity to teach him or her sound financial management skills that can help him or her take advantage of the conveniences and other benefits of credit cards while leading a life free of consumer debt.

Article source: http://lifewise.canoe.ca/Investopedia/2012/02/16/19389451.html?cid=rsslifestyle