Posts Tagged ‘Credit’
Credit Card Expiration
Last Updated on Sunday, 15 April 2012 11:18 Written by Celframe Security Team Thursday, 26 July 2012 08:51
Some may consider credit card expiration to cause problems mainly because if a credit card is expired, our credit card transactions may be rejected at public places and in front of other people including our clients, friends and family members causing embarrassment. We also may receive multiple notifications from various online vendors where we have used our credit cards to make online purchases to update the stored credit card information because the credit cards have expired. As we will soon find out, the expiration of credit cards is a feature which was created to add additional security and reduce credit card fraud although it may at first seem to cause problems and extra work to constantly update our information.
As we use our credit cards to make purchases online, our credit card information is sometimes stored on the vendors’ website or payment processor server for future use. In most cases, when we complete our transactions, the system usually asks us if we want to save our credit card information for future use. Depending on the credibility of the merchant and the frequency by which we use our credit cards to make purchases, we can accept to store the credit cards on the website. If we store our credit cards on the website, the next time we visit the website again we will be asked to update our credit card information if they have expired. Even if we stop visiting the website where we have stored our payment information, we will be notified by email to update our information because of the credit card expiration. And if we ignore these merchant notifications and fail to update the card expiration date, we will continue to receive more notifications and finally a notice that our credit cards will be removed from their system.
From a credit card security standpoint, the first best thing we could do is to never store a credit card on a merchant web server or be very selective when it comes to sharing and storing credit cards on third party websites. The second best thing we could do is to ignore merchant notifications to update our credit card information and let the merchant remove the credit cards from their systems until we are ready to shop again at which point we can use our new credit card to make payments.
Now why is credit card expiration a good thing? Because if your online accounts are accessed by unauthorized individuals, the stored credit cards can not be used to make purchases. Also, if you lose your credit cards or if your credit card information is stolen to create counterfeit credit cards, the information can not be used to commit credit card fraud. Hopefully, this article will help you deal with constant merchant notifications about expired credit cards and the steps you need to take after you receive the credit card expiration notification which is to do nothing and let the merchant remove your credit cards unless of course you have signed up for automatic payments for subscriptions or bills in which case you need to update your information before the cards expire if you wish to continue receiving your services and paying your bills on time.
Select another credit card article after reading about the benefits of credit card expiration.
Buy Credit and Every One Loses
Last Updated on Sunday, 15 April 2012 11:19 Written by Celframe Security Team Friday, 20 July 2012 05:44
While some people with low credit score buy credit to quickly improve their credit worthiness before applying for loans, others establish their good credit score the long, conservative and traditional way. To establish good credit, most people start with one credit card and low credit limit, use it once in a while and at make at least the minimum payments on time. With this conservative approach, they expand their credit worthiness over time while others prefer the quick and easy way to establish their good credit. For a fast boost in credit, some may ask their relatives or friends to include their names on their existing accounts or buy credit from people with good to excellent credit history and credit score through credit boosters or credit brokers.
There are many brokers who help consumers improve their credit score by bringing together people with good credit and those willing to pay to boost their credit score. Once they are matched, the credit seller places the buyer’s name on the seller’s credit card as an authorized user. This practice is nothing new and for a long time, family members and close friends have done so to jump start the credit scores of their loved ones. Parents have also been doing this for the longest time since the credit scoring process was developed to jump start their kids’ credit.
The cost to buy credit and improve one’s credit score depends largely on the number of credit card accounts the buyer wants to be placed on and credit score points they want to improve. For example, to obtain a mortgage at a certain interest rate, the banks may require a credit score within a certain range. Depending on which range the applicant’s credit score resides, the bank decides whether to approve a mortgage application and determines the interest rate based on credit risk. Therefore, once a borrower determines his or her credit score and bank’s credit score requirements for the desired mortgage program, the borrower may plan to approach a credit broker and negotiate the cost to buy credit for the additional shortfall in the credit score. The smartest borrowers do their credit score analysis and plan their credit improvement strategy before applying for the mortgage and being rejected for new or increased credit.
The entire concept of buying credit is a very dangerous for every one in the credit establishment process and the credit scoring systems are changing to address this loophole. First, lenders are the biggest losers because they make credit decision based on inaccurate data, which ultimately leads to higher payment defaults and loss of financial investment. This type of credit piggybacking has resulted in greater default risks to borrowers who have falsely built a perception of great credit worthiness and obtained excessive credit by buying someone else’s good credit.
Although some lenders use their own scoring systems to obtain a more reliable credit data, most lenders still use the Fair Isaac Corporation’s FICO score which is always making changes to its credit scoring system to resolve similar issue.
The sellers of good credit scores also place themselves at risk by sharing their good name and account standing with strangers. It is amazing to see that people who have worked so hard and for so long to establish their good credit history and credit score would risk it all for extra cash. Once a person is listed as an authorized user of an account, there is no limit to what damage that person can inflict on the established account.
And lastly, the buyers are forced to share their personal information such as a social security number with the sellers to place their names on their account. Once personal information is shared with others, there is an increased risk of abuse of the information to commit identity theft and identity fraud.
In conclusion, a true credit score is a measure of a person’s ability to pay the debt back and when it’s manipulated in such manner, every one loses except maybe the credit score broker.
Return to home page after you learn why you should not buy credit.
Banks vs Credit Unions | Pros and Cons and Which is Better Infographic
Last Updated on Saturday, 14 July 2012 04:46 Written by Celframe Web Team Friday, 20 July 2012 01:01
Bank or Credit Union? Which is right for you, considering you have money to save, isn’t the simple decision you might think. This financial infographic helps put the choice in a easy visual presentation.
Infographic Design: A-
Okay, the subject matter may not be sexy, but that doesn’t mean your graphic design has to boring. While the black and orange Halloween color scheme is a bit puzzling, it doesn’t distract from the entirety of the design. Someone paid attention in design class and kept the colors, images and fonts nicely packaged to form a very presentable infographic. The imagery and graphics appear to be custom or at least from the same collection of clip art. Coloring them in the same format as the rest of the infographic is a no-brainer and helps retain a nice cohesion. Fonts are solid and slab serif, which lends itself to the hopeful stability of these financial institutions. Creative, well-designed and even fun, this infographic is worth investing in.
Infographic Information: A
With the glut of infographics out there today, I’m surprised when one actually provides helpful guidance rather than useless or fun facts. This infographic about banks and credit unions provides solid advice about choosing between the two financial institutions for holding your finances (aka money). It gets into the details about owning a car, home and how you wish to manage your money. This infographic delivers on your investment of time.
IBM Southeast Employees’ Federal Credit Union, established in 1969, is one of the nation’s largest Credit Unions. A Credit Union is a not-for-profit financial institution that is owned by its Members. IBM Southeast EFCU offers a complete range of products and services including: Checking and Savings accounts, Money Market accounts, Certificates, IRAs, First and Second Mortgages, Car Loans, VISA Credit Cards, Business Services, and much more.
To learn more about IBM Southeast Employees’ Federal Credit Union visit www.ibmsecu.org.