CreditShout

Social Networking for Debt Collection? Protect Yourself.

Dawn Allcot — Thu, 29 Jul 2010 13:00:58 +0000

A Gadgetology study on social media conducted by Retrevo recently discovered that 32% of all respondents have posted something online that they regret. For many people, this meant posting racy photos on Facebook, airing dirty family laundry, or even letting slip about an affair.

But if you’re in debt with loans in default, social media could be dangerous even if you keep all your comments and photos clean and professional. An alarming trend has creditors taking advantage of social media to track down holders of delinquent accounts.

Facebook, LinkedIn and Twitter are just a few of the social networks creditors are using to track down delinquent debtors — who may have foiled creditors attempts by changing their address, phone number, and even their job to avoid collections.

We’re All Connected

On Facebook and LinkedIn, people need your permission to “friend” or “follow” you, but these creditors can get around anything. And besides, how many people really investigate friend requests closely? Social networks are growing so large, that if someone you don’t personally know sends you a friend request, you’re likely to assume it’s just a friend-of-a-friend with a common interest.

That’s one way creditors are reaching debtors online — they will “friend” their friends, establish relationships and, finally, “friend” or follow the debtor.

By doing this, creditors can discover valuable information, such as:

Assets you have that may be repossessed
Your job, so they can garnish your waves
Your phone number, email address and home address
Other information that may help them collect the debt

Is This Legal?

The Fair Debt Collections Practices Act (FDCPA), written and signed into law in 1968, protects debtors from being harassed, mandates that collectors must disclose their attempts to collect a debt and the fact that any information obtained with be used for those purposes, and prohibits collectors from doing or saying anything misleading in their dealings with debtors, their friends or family members.

Unfortunately, when the FDCPA was written, no one had even dreamed of social media, so there are no explicit laws stating creditors can’t use social media to attempt to collect a debt.

But hang on just a second. Isn’t there that little thing called the Fair Debt Collections Practices Act (FDCPA) that, “protects debtors from being harassed, and also prohibits collectors from doing or saying anything that’s false or misleading”?

Blogger Amanda Miller explains the situation very well in this compelling post at the website How to Get Out of Debt.

How to Protect Yourself

Obviously, the number one way to protect yourself against harassment from debt collection agencies is to pay off all your debts. But if you’ve gotten yourself into an unfortunate situation with debt you can’t afford to pay back, and your accounts are delinquent by 90 days or more, you can protect yourself from the illegal and harassing efforts of debt collectors, especially on social media.

Use a different name on social media.
Investigate anyone who wants to connect with you before adding them to your social networking list. On Twitter, make sure you can identify all your followers.
Don’t reveal personal information, such as your full name, address, phone number or place of business on social media
Do not reveal details related to purchases or income

If you feel harassed and believe your creditors are breaking the law and acting against FDCPA guidelines, call a lawyer immediately. Remember to keep records of all your creditors’ attempts to contact you, by phone, mail or on the Internet.

How To: Save on Rental Cars with Travel Sites and Credit Cards

Dawn Allcot — Wed, 28 Jul 2010 13:00:40 +0000

When you book a vacation with your credit card, it’s no secret you can save a ton of money on airline tickets and hotel reservations by using Rewards point (or gaining bonus Rewards points).

But you can also enjoy considerable savings on rental cars using travel websites when you book with your credit card.

Let’s take a look at three different ways to save or get money back on a vacation rental car when you use your rewards credit card to book your car rental.

CDW Coverage

The easiest way to save money on rental cards with credit cards is by saying “No” to the CDW (Collision Damage Waiver) insurance at the counter. CDW can cost as much as $17 per day over the cost of rental cars, but most credit cards offer this as a standard benefit when you rent a car using a credit card. We talk more about Rental Car Insurance and how you can refuse it in this article.

Bonus Rewards Points

Chase Freedom: For the months of July, August and September, Chase Freedom offers 5% cash back when you use your Chase Freedom card for rental cars, gas, hotel accommodations, and airline tickets. This is a great way to get money back from your vacation.

Discover: One of our most highly-rated credit card issuers here at CreditShout.com, Discover has several high-quality travel rewards cards that permit you to book airlines, hotels and rental cars through any website and use Discover rewards points. This means you can save even more money by shopping around for the lowest rates.

When you use the Miles by Discover card, you’ll earn double miles on your first $3,000 in travel and restaurant purchases each year.

Discover Open Road doesn’t offer additional bonuses for rental car purchases, but you will earn a double cash back bonus for the gas you put in that car, for the first $250 in purchases each month at gas stations or restaurants.

Credit Cards and Exclusive Travel Websites

You can also save money on travel websites with your credit card by shopping through the travel sites for your specific card. Here are a few major travel rewards cards and information about their travel websites.

American Express Travel: The American Express Travel website lets you pay with rewards points or cash, and you get bonus points when you book through the site. Choose from 14 popular rental car agencies.

World MasterCard: World MasterCard, the top-of-the-line in MasterCard’s offerings, gives cardholders membership into Virtuoso.com, a luxury travel website and network of the world’s top travel agencies. As a Virtuoso member, you’ll receive free membership in the National car rental loyalty program. Through the program, you may receive lower prices, earn free rental days, preferred service, upgrades and more.

Remember, you can also use your travel rewards card to book through popular discount travel websites. Some of our favorites include:

Kayak
Orbitz
Expedia
Travelocity

You’ll save more money if you book a flight, hotel and rental car together.

Best MasterCard Credit Cards

Dawn Allcot — Tue, 27 Jul 2010 13:00:17 +0000

Are you looking for a new MasterCard? Do you want generous rewards, a low introductory APR and, of course, no annual fee? CreditShout.com has recommendations for the best MasterCard credit cards available now.

Chase Freedom

One of the best MasterCards available today — and possibly the best MasterCard available for people with excellent credit — is the Chase Freedom(SM) card.

Rewards: Chase is offering 5% cash back in rotating categories where most people spend money. You can get 5% cash back on:

Gas
Groceries
Home improvement
Department stores
Hotels
Airlines…and more

For instance, between July 1 and September 30 you can get 5% cash back (up to $1,500) on gas, airlines, auto rentals and hotels. Notice a theme? These rewards are perfect for summer vacationers.

Fourth quarter (October 1 through December 31) gives you 5 % cash back on purchases at grocery stores, department stores and movies — ideal for holiday shopping, seasonal parties and holiday guests, not to mention the winter movie season when the kids are home from school.

There’s one catch: You have to actually sign up online for the bonus cash back program — just being a Chase Freedom CardHolder and using your card on these purchases isn’t enough to enjoy the generous rewards.

Whether you sign up or not, you’ll get 1% cash back on all your other purchases, every day.

Benefits: In addition to a generous rewards program and zero percent introductory APR, you’ll get a host of other benefits with the Chase Freedom MasterCard, including:

bonus offers when you shop through the Chase Ultimate Rewards website, including bonus rewards points, free movie tickets, and discounts on merchandiseand gift cards

Easy online bill pay through the Chase website or in-person at any Chase branch
Customizable email alerts that let you track your spending, and view your balance and your transaction history
zero liability and protection
24/7 customer support

Apply for Chase Freedom(SM)

Citi Diamond Preferred Rewards

Right up there with Chase Freedom in terms of generous rewards and a low intro APR is the Citi Diamond Preferred Rewards card.

Rewards: Citi Diamond Preferred starts new customers off right, with 6,000 bonus ThankYou Points when they spend $300 in the first three months. These points are redeemable for a $50 gift card at select national merchants.
The Rewards program gives you 5 ThankYou points for every dollar spent at grocery stores, drug stores and gas stations (but not warehouse clubs or superstores like Wal-mart — or the grocery and drug stores within) for the first year. You’ll earn one point for each dollar on all other purchases. After that, you’ll earn 1 point on all your purchases.
You can redeem ThankYou points for electronics, travel rewards, sporting events and more — but no cash back with this card.

Benefits: When it comes to benefits, the Citi Diamond Preferred Rewards MasterCard rivals some of American Express’ best offerings. Citi’s Private Pass service gives you access to exciting events and unique experiences, while Concierge service can help you with everything from personal shopping to dinner reservations or securing tickets to sold out shows. Other benefits include:

Extended warranty on purchases made with your Citi MasterCard
Retail purchase protection for up to 90 days
Price Protection for up to 60 days after you make a purchase with your Citi card
Set your own payment due date in the beginning, middle or end of the month

Apply for Citi Diamond Preferred Rewards

Best Visa Credit Cards

Dawn Allcot — Mon, 26 Jul 2010 13:00:36 +0000

Looking for a new Visa card? As credit card companies compete heavily for your business, rewards offers, interest rates and benefits get better and better. Whatever your credit history and your FICO score, CreditShout.com has scoured the Web to find the best Visa credit cards for you.

Chase Freedom(SM) Visa

Our favorite Visa card, and one of the best credit cards out there for excellent credit — is the Chase Freedom(SM) Visa card.

Rewards: The Chase Freedom Visa gives you 5% cash back in rotating categories where most people spend money. You can get 5% cash back on:

Gas
Groceries
Home improvement
Department stores
Hotels
Airlines…and more

From July 1 and September 30 you can get 5% cash back (up to $1,500) on gas, airlines, auto rentals and hotels. Notice a theme? These rewards are perfect for summer vacationers, and these rewards change throughout the year to compliment the seasons.

There is one catch with this whole thing: You have to actually sign up online for the bonus cash back program — just being a Chase Freedom CardHolder and using your card on these purchases isn’t enough to enjoy the generous rewards.

It’s worth mentioning that you also get 1% cash back on all your other purchases, 365 days a year.

Benefits: In addition to a generous rewards program and zero percent introductory APR, you’ll get a host of other benefits with the Chase Freedom MasterCard, including:

bonus offers when you shop through the Chase Ultimate Rewards website, including bonus rewards points, free movie tickets, and discounts on merchandiseand gift cards

Easy online bill pay through the Chase website or in-person at any Chase branch
Customizable email alerts that let you track your spending, and view your balance and your transaction history
zero liability and protection
24/7 customer support

Apply for Chase Freedom(SM) Visa

Chase Sapphire(SM) Card Visa

Chase recently revamped its Sapphire card and is heavily marketing the card as one of the top reward cards in the Chase stable. With no annual fee, generous rewards, and the unique Blueprint program that lets you customize how you pay off purchases, this card definitely ranks in our top three Visa cards.

By the numbers: There’s a variable APR of 12.24% on purchases and balance transfers.

Benefits:This card offers many of the same benefits as other top travel rewards cards, including trip cancellation insurance, lost baggage insurance and rental car CDW. With this credit card, you’ll also gain access into the Ultimate Rewards online mall, where your purchases earn you up to 10X bonus points.

Rewards: Every dollar you spend equals one UltimateRewards point, which can be redeemed for cash back, statement credit, airline miles or more, including purchases in the Ultimate Rewards Online Mall. Chase gets you started with 10,000 bonus rewards points after your first purchase.

Summary: We like this card — and especially the fact that there’s no annual fee — but, again, if you’re looking for a good rewards card, Discover More offers, well, more for your money. You can read our complete Chase Sapphire Visa Review here.

Apply for Chase Sapphire(SM) Visa

Orchard Bank Visa

If you’re working on rebuilding your credit, or are just starting to create a credit history, the Orchard Bank Secured Visa is the card to get. Orchard Bank offers two different versions of its Visa card, a secured version and an unsecured version. The secured card will get you a low 7.9% APR, while the unsecured card carries a variable APR between 14.90% and 28.90%, depending on your credit history. Orchard Bank reports your payments to all three credit bureaus, and offers a number of features that help you pay your bill on time, including online bill pay and the option to receive email or text message alerts that remind you of upcoming payments due.

By the numbers: There is a processing fee of zero to $39 to open an Orchard Bank Visa card account, and an annual fee of zero to $74 the first year, and $35 to $79 after that.

Benefits: As a card designed for people with poor credit or no credit history, there are no rewards with the Orchard Bank Visa. But you will enjoy 100% Fraud Liability Protection. The most important benefit for a card at this tier is that Orchard Bank reports to all three major credit bureaus, so you can build your credit quickly.

Also, the unique Orchard Bank application process pre-qualifies you with a soft credit inquiry, recommends the cards you are most likely to be approved for, and then you can choose the card you want and apply. This limits the number of hard credit inquiries — which can drive down your credit score — and increases the odds you will be approved for the card of your choice. Limiting credit card denials if you are working to increase your FICO score is important, which is another reason this card is our top choice for a Visa card for people with poor credit or no credit history.

Haven’t found a card you like yet? Browse our best credit cards for 2010 and take a look at some of our other top picks.

How to Increase Your Credit Limit Without Asking

Dawn Allcot — Fri, 23 Jul 2010 13:00:46 +0000

Last week I was planning a major purchase (new living room furniture) that I wanted to put on my rewards credit card in order to earn cash back. The problem? Putting the purchase on my card would place me above that 50% debt-to-available-credit ratio that negatively impacts your FICO score. I was about to call the credit card company and ask them to increase my credit limit when I received a notice in the mail that my credit card company had increased my limit — without my asking! Am I just that lucky? Not at all.

I began thinking about the steps anyone can take to get your credit card company to increase your limit without asking.

This information is especially useful since it’s harder to get companies to increase your limit at your request. Instead, they offer periodic, routine reviews of your account and then decide whether or not to increase your limit. (Be careful — they can also decrease your limit during these reviews if you haven’t used your card in a few months!) These routine reviews are a “soft inquiry,” which won’t affect your credit score. But if they result in a credit limit increase, they will positively affect your FICO score. Best of all, you won’t show a new account on your credit report.

1. Pay your bills on time, all the time.

Yes, the number one thing that will keep your FICO score high will also result in your earning more credit from your existing creditors. Credit card companies want to keep good customers. Pay your bills on time and you’ll be rewarded.

2. Use your card.

The credit crunch has brought a frustrating trend of credit card companies cutting your limit if you don’t use your credit card. But the opposite is also true — if you use your card, your creditor may reward you with a credit limit increase.

3. Pay off your balance.

I can’t find any proof that credit card companies look at this, but every time I have paid off a large balance on my credit card, I’ve gotten a credit limit increase within a few months. Besides, paying off large balances is good financial sense, so I feel comfortable sharing this tidbit with you. Other sources say that paying off your balance each month makes
you a good credit risk and, therefore, likely to receive a credit limit increase without asking.

4. Stay within your credit limit.

Credit card companies won’t increase your credit limit just because you’ve gone over your existing limit! After all, they make money on over-the-limit fees until you pay down your balance. Stay within your credit limit (ideally, you should have 50 to 70% available credit on your card) and you’ll be rewarded during a routine review of your account.

Once you’ve successfully received a credit limit increase after a routine review of your account, what should you do with that new available credit you have? Don’t use it! Let it sit on your card, giving you peace of mind that you have it in the event of an emergency, and let it raise your credit score by increasing your debt-to-available credit ratio. Of course, if you have other, higher-interest credit cards and it makes sense to use the new available credit to consolidate your balance onto one, low-interest card, that’s good money management, too.

The wrong thing to do? Go on a shopping spree using your credit card when you don’t have the money in the bank to cover it. But you knew that already, right?

Understanding Hard and Soft Credit Inquiries and How They Affect Your Credit Score

Dawn Allcot — Thu, 22 Jul 2010 13:00:42 +0000

When you are building your credit, what seem like simple acts can impact your credit score. Each time a prospective lender checks into your credit history a ‘mark’ is left. While the FICO site does not list these terms- the common way to refer to these credit checks are as hard or soft pulls. Hard pulls affect your credit, dropping your score slightly. Soft pulls do not affect your score.

What are soft pulls?

Everyone has received pre-approved offers for credit in the mail. Pre-approvals are “soft” checks. They do not appear to other lenders that may check your credit. Other soft pulls are:

Credit reports that you request from one or all three of the credit reporting agencies
Credit checks by some employers
Credit checks by your current credit card company during the life of your account
Credit checks by your insurance company

These soft pulls are not always authorized by you. There are times when you may not have any knowledge of the checks. Soft pulls do not affect your credit score in any way and are “safe” for your credit. The only person that is able to view the soft pulls on your credit report is yourself. Even a hard pull will not reveal these soft checks.

What are hard credit pulls?

Hard pulls or hard credit inquiries are different in the way that they affect your credit. Where soft pulls are only available for viewing by you, hard pulls appear to anyone that is checking your credit. This means that a lender can see how many times in the past few months that you have shopped for lines of credit.

Hard credit checks have a negative impact on your credit score. Each time a lender performs a hard pull, your credit score can drop by as much as 5 points. Many hard checks over a short period of time can add up to a much lower credit score. Here are a few examples of hard pulls:

Credit card applications
Opening a new cell phone account
Checks performed by some banks when you open an account
Activation of pre-approved credit offers. The lenders perform a deeper check upon activation

Good news! Hard credit pulls require your permission. Hard checks are not on your credit history forever, either. Most disappear in about six months. These type of credit checks do not permanently mar your credit score.

If a lender (such as someone processing a car loan for you) asks if they may run a credit check on you, this is a hard pull. If you are shopping for a car or mortgage, you may have several hard pulls in a short period of time. According to MyFico.com, these are not assessed as individual hard pulls, where each inquiry would lower your credit by 5 points. Instead, several credit inquiries of the same type (a mortgage, car loan or student loan) typically count as a single inquiry.

This is not the case with credit cards, however, so select your new card carefully to avoid multiple hard pulls.

You should avoid any hard credit pulls or checks for about six months before applying for a mortgage or car loan.

If a hard pull appears on your credit report that you have no knowledge of, make a note of it on your report. Ask the reporting agency for clarification and removal if the check was not initiated with your knowledge or without your application for a service. You can also find out how to repair your credit for free.

Soft and hard credit checks will always be a part of your financial life. Hard checks can be managed to have little impact on your credit. Horror stories from some websites may cause you to panic, but there is no need. You now have the knowledge to avoid unnecessary hard checks and keep your credit score firmly in your control.

Best Student Visa Cards

Dawn Allcot — Wed, 21 Jul 2010 13:00:25 +0000

College offers students new opportunities every day. New friendships are forged, careers are chosen and independence blossoms. This is the perfect time to begin building your credit and learn money management skills that will serve you for life, too. Every purchase from books to pizza can help establish the type of credit score needed to purchase your future car or home.

Creating great credit is easy with these Visa cards designed just for students:

Citi mtvU Card

CitiBank’s mtvU Card has students firmly in mind with their rewards system. Twice a year Citi will award up to 2,000 reward points based on your good grade point average (GPA). Every month you are rewarded 25 points each month if your outstanding bill is paid on time. On top of all of those points, Citi awards you five reward points for every dollar spent on things college students enjoy most: books, movies, and even fast food!

Reward points accumulate quickly and can be spent on electronics, dining out, music, movies, games, gift cards, and mtvU Exclusives. These exclusives from mtv include the mtvU Woodie Awards and VIP Spring Break Passes.

No cosigner is required for students applying for the mtvU Visa. Introductory APR is 0% for the first seven months and rises to 12.99% – 21.99% based on your credit. mtvU’s APR will fluctuate with the Prime Rate. There is no annual fee for this card.

Apply for Citi® mtvU(TM) Platinum Select® Visa® Card

Capital One Student Rewards

This credit card from Capital One offers you a chance to earn cash back on all purchases. Textbooks, dining out, clothing, or whatever you need to buy – this card will reward you. The percentage of cash back depends on the type of purchase. Dining out, text books, and paying your cell phone bill nets 2% cash back. All other purchases gain 1% cash back.

Like the mtvU Visa card, the Capital One Student Rewards Visa requires no cosigner. The APR for this card is 24.9% variable and there are no annual fees. Capital One offers a variety of rewards perfect for students such as: $0 Fraud Liability, 24 hour travel/emergency/roadside assistance, travel accident insurance and more.

Capital One offers a special learning course for cardholders: MoneyWise. The site includes tools to help college students make good choices to increase their credit.

State Farm Student Visa

State Farm isn’t just insurance! In fact, one of the most attractive APR rates for student visa cards comes from State Farm Bank. There are no rewards points for purchases with this credit card, but there are other benefits that are becoming standard with most student visa cards. No annual fee, online access to your account, zero fraud liability, and lost or stolen card protection.

The State Farm Student Visa’s APR is 10.24% to 18.24% based on your creditworthiness. As with most APRs today, the rate will vary according to the Prime Rate. There are other applicable APRs with this card. Cash advances carry a 20.24% APR and if you have a late payment, a 24.24% APR will be applied to your account.

Bank of America Student Platinum Plus Visa

Bank of America offers student banking packages and one of the benefits to Bank of America student customers is the Student Platinum Plus Visa. The card does not offer a rewards system for purchases or on time payments. The card also does not offer a 0% introductory APR. Your standard APR from activation of the account is 14.24%, variable. Other APRs may apply to activities other than purchases and balance transfers.

This card does offer you the ability to build your credit for the future, and was listed as one of the great credit cards for teenagers by CreditShout. The APR is very competitive and attractive. There are no annual fees for this card, either.

Like all of Bank of America’s Platinum cards, this card protects your from fraudulent activity, lost or stolen cards, online access, and even overdraft protect on your Bank of America checking account. You also are offered the Bank of America Student Identity Theft Protection Program free for the duration of your college term (4 years).

PerkStreet Financial Cash Back Debit Card Review

Dawn Allcot — Tue, 20 Jul 2010 13:00:26 +0000

Verdict:

PerkStreet.com is an online-only bank, with a good cash back debit card rewards program. You can earn a variety of rewards, including coffee, music downloads, gift cards to popular retailers or cash back. You can use PerkStreet.com as your primary bank, or as a secondary bank for online transactions. You can even earn up to 5% cash back at certain retailers. One major drawback? To enjoy 2% cash back (or the equivalent) on any non-pin purchase, you must have a current account balance of $5,000 or more.

Overview:

Competition is getting heavy in the debit card rewards arena, and another contender steps up to the plate in the form of PerkStreet.com, a new online-only bank garnering acclaim for its generous rewards, friendly service and ATM machines on nearly every corner. (If you have a CVS, 7-11, Hess Gas Station or any STAR ATM near you, you can access money using your debit card free of surcharges from the ATM machine or the bank.)

How this card works:

The Perk Street Financial Cash Back Debit Card — and the bank’s online-only checking account — works essentially the same as a debit card from your brick-and-mortar bank.

To make a deposit, you can transfer funds electronically from Paypal, Google checkout or another online payment program, or from your brick-and-mortar bank, or even from an online savings account. You can also mail in a check or money order to PerkStreet to make a deposit.

Once the money’s in your account, it’s even easier to access. PerkStreet has partnered with STAR, one of the oldest and most reputable ATM networks. If you use a STAR ATM, you can withdraw money with no surcharges from the ATM machine or from your bank.

Rewards:

When you use your Perk Street Financial Cash Back Debit Card for non-pin transactions, though, you’ll really begin to rack up the rewards points.

If you have less than $5000 in your checking account at the start of the day, you’ll get 1% cash back on every purchase. You’ll get 2 % cash back if your account balance is more than $5,000.

If you choose “perks” instead, you can earn free coffee from a number of popular coffee chains, free music downloads or gift cards.

Perk Street translates this into terms you can easily understand:

If your account has more than $5,000, you’ll earn 2 song downloads or 2 cups of coffee for every $100 in purchases.
If your account balance is less than $5,000, you’ll earn 1 song or 1 cup of coffee for every $100 in purchases.
Shop at selected retailers and earn 5 songs, 5 cups of coffee (you’ll need more energy for all that shopping!) or 5% cash back for every $100 spent (if your account balance is more than $5,000).
For the first 90 days after you open your account, you’ll get 2% cash back or 2X Perks regardless of your account balance. You need a minimum of $25 to open an account.

Pros:

Easy, secure online banking
A network of 37,000 surcharge-free ATMs to withdraw money
No expiration date on perks
Change perks at any time with no penalty
Earn up to 5% cash back

Cons:

Other debit cards, like Chase, have more generous rewards programs, like 2% cash back on every day purchases
Other debit cards have a wider range of rewards you can enjoy
Minimum balance of $5,000 to enjoy the maximum level of rewards

Should You “Opt-In” to Overdraft Checking?

Dawn Allcot — Mon, 19 Jul 2010 13:00:14 +0000

As of August 13, banking rules are changing due to the Credit CARD Act of 2010. Specifically, the rules and regulations for overdraft checking will change. These rules went into effect on July 1 for new customers. Will this new policy affect you? And should you opt-in to your bank’s overdraft checking options?

How Overdraft Checking Works

In the past, many banks extended overdraft checking to customers as a courtesy. If you attempted to make a purchase with your debit card (either as a debit or a credit transaction) but did not have the money in your account to cover the purchase, the bank would extend you a loan to cover the transaction. This was done without your permission, and resulted in NSF (non-sufficient funds) fees of $30 to $40 or more, depending on your bank.

This may have saved embarrassing moments out to dinner with a crowd, or permitted you to make a purchase you really needed even if you didn’t have money in your account. But it cost customers millions of dollars a year (and made banks equal amounts of money!)

New Regulations

Now, banks cannot offer overdraft checking as the default option for a new checking account customer and, as of August 13, if you have overdraft checking “privileges,” they will be revoked unless you “opt-in.”

Banks are pushing the service, sending multiple notices to customers and using scare tactics to get customers to opt-in to overdraft checking.

But what you’re really losing is the chance that you’ll have to pay $30 to $40 or more in fees on a $5 purchase if you lose track of the money in your checking account and come up short of funds.

It’s important to note that new overdraft checking rules apply only to debit and credit transactions drawn from your bank account. The bank can still authorize automatic bill pay transaction and cash checks if you have insufficient funds. The normal NSF fees and any additional fees will apply.

Benefits of Opting-In

The only benefit to consumers that opt-in to overdraft checking is access to money, at a high price. Whatever your financial situation, it’s probably best to stay opted-out of overdraft checking. If you decide you want to opt-in at a later date, you can change your options at any time with a quick trip to your bank, a letter or a phone call.

If You Opt Out…

When you opt out, you’re taking back control of your financial life, rather than letting the bank determine your financial destiny. You may need to apply better money management to avoid embarrassing situations of having your credit card declined, but, in the end, you could save hundreds of dollars.

If you decide to stay “opted out” of overdraft checking, you’ll want to:

Track your checking account purchases and withdrawals, either through an online bookkeeping program like Mint.com, Quicken, or by old-fashioned methods of a checkbook register
Check your balance frequently online or through your smartphone to make sure your calculations agree with the bank
Keep in mind that your available balance may not reflect funds coming into, or leaving, your account
Remember that withdrawals and payments may not post in the order you submit them

Additionally, it’s a good idea to keep an emergency credit card on hand for those times when you do need a little bit of extra money to get your through to next pay day.

In conclusion

If you “opt-in” to overdraft checking, your debit and credit card transactions may clear even if you don’t have money in your account for the purchase. The bank will then charge you an NSF fee, along with other possible fees. Even with overdraft checking, the bank can decline a transaction for insufficient funds at their discretion.

If you “opt-out” to overdraft checking, your purchase will be declined if you don’t have money in your checking account to cover it. You won’t pay any fees, but will need to present a different method of payment for your purchase.

How to: Find the Best Frequent Flier Credit Card

Dawn Allcot — Fri, 16 Jul 2010 13:00:46 +0000

Like anything related to finance (or shopping, or, well, practically anything!), the best frequent flier credit card for one person may not work well for another.

For instance, you wouldn’t want a Delta SkyMiles card if the airline lost your bags three times in the space of four trips. (Hypothetically speaking, of course). On the other hand, if you are a corporate executive with offices in New York and L.A. and take Delta’s red eye once a week, that might be the card for you.

If you fly a lot and know you’ll redeem the miles — but also want the option to get a statement credit instead — any number of frequent flier credit cards, including Discover’s or CapitalOne Venture Rewards, might be the best card for you.

Factors to Consider When You Select the Best Frequent Flier Credit Card

Of course, when you select a frequent flier credit card, you’ll want to select an airline carrier that you use frequently — it flies to places you go, the prices are good, (yes, this matters even when you’re cashing in miles) and you’ve enjoyed the service on flights.

If you’re loyal to a particular airline, you can really rack up the points, benefits and even upgrades. If you don’t have any specific airline loyalty, your best choice is a general travel rewards card, like:

Miles by Discover
Escape by Discover, ranked CreditShout’s number one travel rewards credit card for 2010
Blue Sky from American Express
Capital One No Hassle Miles Rewards

You’ll also need to consider your credit history and see what cards you can qualify for and, of course, the interest rate (the intro APR and what it will be after that) and the annual fee, if any. Here are some other things to think about.

Travel insurance – You’ll need to read the fine print in terms and conditions to find out the limits on travel insurance. You may also want to do some research or ask friends how easy it is to make a claim. Some types of travel insurance you want to look for include:

Lost or Damaged Luggage Insurance
Trip Cancellation Insurance
Travel Accident Insurance
Rental Car Insurance (Collision Damage Waiver or CDW)

You can read more about credit card travel insurance in this post: “How does credit card travel insurance work?”

Benefits

Benefits are nice when you’re on the road. You want:

Fraud liability protection in case your credit card (or your whole wallet!) is stolen on the road.
Warranty protection on all your purchases

You may also want:

Emergency road service
Emergency service when you travel, including the ability to have cash wired to you if your card is lost or stolen
Concierge service to book restaurant reservations, special experiences, and sporting events while you’re on the road
Waived baggage fees when you fly

Rewards

Let’s get down to what really matters with a frequent flier credit card or any travel rewards credit card: How do the rewards work and how easy is it to book a flight?

You may want to look for a card with:

No blackout dates
Companion airline tickets
First- or business-class upgrades when available
No restrictions on which airline carrier you fly
No expiration date on miles
No limits on miles you can earn
Ability to redeem miles for merchandise, gift cards, cash and more

Finally, look at the rewards structure:

How many bonus miles do you get when you sign up? Is a minimum purchase required on the card to earn those miles? How long do you have to make that initial purchase for your bonus?
How many miles do you earn for regular purchases?
How many bonus miles do you earn when you book a flight with your card?
Can you earn bonus miles in any other way?
How do miles translate into dollars? How many miles will it realistically take to purchase a flight?

With the answers to these questions in hand and a clear idea of what you need in a credit card, you can browse the websites of major credit card issuers like American Express, Discover, Citi, and CapitalOne to find the best frequent flier credit card with a low APR and no annual fee.

Or stay here at CreditShout and browse our credit card reviews to find the best frequent flier card for you.