Free Credit Report

Posted on Friday, 19th February 2010 by admin

The Equal Credit Opportunity Act or most commonly called as the ECOA was formulated to give account holders a leveled field in getting high credit worthiness ratings. This law was passed as a counter measure to the possible biases and inclinations that lenders may have to certain group of people. This law is responsible for the incentive points in the credit scores of individuals at certain age brackets. This law attempts to make every part of the credit worthiness evaluation system more fair and leveled to those who wish to participate.

In line with the aims of this law, ECOA started the segregation of accounts based on the statuses of account holders.

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Posted on Wednesday, 17th February 2010 by admin

I was watching the Winter Olympics this evening when a Visa commercial popped up, claiming it was the only payment card accepted at the Vancouver games.

This seemed a bit strange, as it would make life difficult for those holding MasterCard and American Express credit cards, not to mention out-of-towners and their random assortment of credit and debit cards.

But low and behold, it really is true, not just a marketing gimmick.

Visa has an exclusivity agreement with the Olympic Games to be the sole payment card provider accepted.

That means only Visa credit, debit, and prepaid cards or cash can be used to purchase Olympic tickets, official merchandise, and/or food and beverages in the Olympic venues.

The same goes for the official Vancouver Olympics store, which states, “In recognition of Visa’s long-standing support of the Olympic and Paralympic Games, we proudly accept only Visa cards on vancouver2010.com.”

Visa also created and manages the entire payment system infrastructure and network throughout the Olympic venues, so looks like they’re the boss.

It’s a bit surprising for Visa to shut out the other card issuers like this, but that’s competition for you.

Just unfortunate for the many visitors that will need to travel around with wads of cash, which could prove to be a boon for area pickpockets.

Oh, and the merchants that will lose out on all those would-be sales…

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Posted on Wednesday, 10th February 2010 by admin

When the new credit card rules go into effect on February 22 (Credit Card Bill of Rights), perhaps one of the most exciting changes will be the way payments are allocated.

In the past, credit card issuers applied payments over the minimum payment to balances with the lowest APR because it worked in their favor.

Let’s look at an example:

Total credit card balance: $5,000
Purchase balance: $3,000 @ 18% APR
Balance transfer balance: $1,500 @ 0% APR
Cash advance balance: $500 @ 20% APR

In the scenario above, credit card issuers would apply any extra payments to the balance transfer balance set at 0% APR.

That would leave the balances subject to the highest APR and associated finance charges intact, costing you more money.

It wouldn’t be until that $1,500 balance transfer balance was paid off before the purchase balance and finally the cash advance balance would be paid down.

The practice meant big money for credit card issuers, and never-ending debt for struggling card holders.

Fortunately, lawmakers said enough was enough, and stamped out the negative payment hierarchy.

Going forward, the reverse will be true when you make more than the minimum payment.

So in the above example, any extra payment(s) will attack the cash advance balance first because it has the highest APR, and thus the most finance charges.

The last balance to be paid down will be the balance transfer set at 0% APR, which benefits card holders because it’s not accruing any interest (at least during the promotional period).

The rule change is good news for card holders looking to pay down debt; of course, it should have always been this way, but better late than never.

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Posted on Saturday, 6th February 2010 by admin

A majority of credit account holders are having a hard time of time of getting low interests rates for their accounts. The recent crunch caused by the recent global recession has forced many account holders to exert extra efforts in getting and maintaining a good credit worthiness rating. Before the recession crediting and financing companies are settling for a loan applicant with a good credit score rating. But after the recession the crediting and financing companies that used to settle for a good credit worthiness rated loan applicant are now searching for the best credit worthy rated individuals.

The recession made most of crediting and financing companies more paranoid to overexposure to credits.

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Posted on Friday, 5th February 2010 by admin

The so-called “American Express Zync credit card” was released recently, aimed at younger consumers who wish to pay their balance off in full each month (whether they like it or not).

Like many other American Express credit cards, it’s an installment card (also referred to as a charge card) because the full balance must be paid each month; no minimum payment option with this one.

That means there’s no interest or finance charges tied to the Zync card, which is clearly a plus for young consumers who are notorious for getting into debt.

Of course, it diminishes the value of the credit card to some degree, as it’s really a form of convenience, and not so much a revolving credit line.

It’s similar to many of the American Express credit cards already kicking around for older consumers, like the Gold Card, which must be paid in full each month.

The big difference is the annual fee, which at $25, is much cheaper than the credit cards for the big boys.

Zync from American Express is also customizable, with four different packs available for an additional $20 each annually (the Eco Pack is free).

They include the Go Pack, Social Pack, Connect Pack, and Eco Pack, each offering special deals and discounts for the associated lifestyle.

Zync offers standard American Express membership awards, purchase protection, extended warranty, return protection, excellent dispute resolution, and more.

While Zync may be a good choice for parents who want their kids to carry a credit card without the risk of being hit with finance charges, the annual fee can be a bit of a setback.

There are also a number of revolving American Express credit cards with no annual fee out there that offer the same benefits, though there is the risk of getting into more trouble.

It seems the Zync was released with the credit crisis in mind, as revolving credit cards dominated those boom years, and may be getting phased out as card issuers look for profit without taking on as much risk.

Apply here if the card interests you…

(photo: debaird)

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