What Is Phishing and Why Does It Target Online Bank Account Holders

Phishing is scamming method used by internet intruders to steal personal information from you mainly through emails. Whereas some of the emails intended to steal information from you may be easily detected as spam, nowadays, these hackers have become smart and you cannot easily detect some of the emails they send. The reason why online bank account holders or credit card holders are targeted is because once your personal information is stolen, the scammers can use it to log into your online bank account and steal money from it.
 

One thing that banks will not do is to tell you to activate your account through emails. In addition, banks don’t request for personal information through emails. If you already have a bank account and an online banking access, then you are always advised to log into the secure website of the online account and log in from there. You should never click on email links that are mainly provided by these scammers.

What these scammers do is that they send you information purporting to originate from a bank or credit card issuer where you have an account and then ask you to activate or provide your details. They may claim that your account has been suspended and you need to log in and confirm your personal details in order to uplift the suspension. NEVER click on any links you suspect that they are from hackers.

One thing that makes the email phishing difficult to detect is that it may bear the logo and address of the bank or credit card issuer. In addition, the emails may resemble other genuine emails you have received from your bank. The best way you can protect yourself from these intruders is to learn how to identify phishing emails.

You need to check where the email was sent from or the e-mailer. You need to check the section “mailed by”. The email may be from the bank or credit card web email address but not sent by the bank or credit card company. If the message is not mailed by the bank or card issuer, and it appears to have originated from another address, then you should ignore it and delete it immediately.

Another way you may detect a phishing attempt from an email is to check on forged links. The scammers will try to use a link that is very similar to that of the bank account or credit card issuer. You need to roll over your mouse on the link and see if it identical to the one on the email without clicking on it. In most cases, if the link does not begin with “https” it means that it is not secure. If when you roll the mouse over the link and you cannot get the address, you may “copy link location” and paste it on the web search tab. This way, you will determine whether it is genuine link or not. NEVER click on the link. Almost all bank websites will begin with “https”.

Moreover, if you get an email that requires you to provide your personal information, you should ignore. Once you have provided your personal information during your account registration, your bank will never ask you to provide the same again through an email. This is because that information can be intercepted online and stolen.

In addition, when you see that you are required to follow a link and log in to provide your details, then it means that the “phishers” want to steal your log in details. Even when you click on the link, you may be directed to a page that looks the same as the bank account log in website page. Another way you may detect a phishing email is the urgency of the message.  The email may be sent twice or thrice meaning that there is a pressing request to provide your information. You need to ignore that email and filter it from your address.

What Are Credit Card Skimmers and How do They Work?

Credit card skimmers are devices used to extract credit card information for intended purpose of theft. The victims of credit card skimming are blindfolded by the theft and many come to realize that their accounts have been swindled money thereafter following the theft of information. Of late, these devices have been used in ATMs, gasoline stations and also in public areas like restaurants and consumer goods stores or supermarkets.

The skimming devices are placed in ATM machines or they are held by hand by the person stealing the information. When the card is run through the devices, information is extracted and stored in the device. The thieves then use the information to device counterfeit card or carry out online withdrawals or payments from your account. 

  

Why it is difficult to detect card skimming devices
What makes this kind of thieving difficult to detect is that the devices resemble the “card insert” or the “keypad” part of an ATM and are attached or plugged just next to or over the exiting parts of an ATM’s “card insert” or keypad components. If you are not keen, you will enter your card in that device and the moment you key in your password, all the information is derived from the card and stored to the device.

Victims of card skimming are not aware of the theft and begin to notice that there is a problem when they get billing statement or even notices of overdrafts through their emails. Another thing which makes credit cards skimming difficulty to detect is that you never lose your card so you are not suspicious at that time until later after your bank account is intruded. 

 

How can you protect yourself from credit card skimmers?
One way you can prevent this theft is by keeping watch of your accounts. You need to monitor your checking account activities on daily basis and report any transaction that seems suspicious. In addition, you also need to be very careful where you shop. Skimmers are used in bars, gas stations, restaurants and other places when people visit to buy goods and services.

Always, you should not let any gas station attendant or bartender leave with your card. All the transaction should be done in your vicinity because if you cannot see you card; it could be probably be getting skimmed at that moment. Never trust anyone you give your card in these public areas.

If you want to withdraw money from an ATM machine, you need to check around and ensure that there is no device attached to the machine. Sometimes, the skimmers place a camera in a strategic point where it can view the ATM keypad in order to steal your PIN. They may also place a fake keypad fittingly on top of the ATM’s keypad in order to extra the information you enter when using your card.

Because the camera can be so tiny and placed in a hidden location where you cannot notice unless you are very keen, the best thing to do is to always try to cover your hand when you are keying in your PIN numbers on the keypad. If you notice that the keys are hard to push, you would rather stop using the machine immediately and eject your card and look for another ATM machine.

If you become suspicious of your account activity or notice a device that looks like a card skimmer you need to report to the bank as well as your credit card issuer so that actions can be taken to prevent any loss of money. If already there has occurred theft, you should report to your bank and also place a fraud alert in your credit report.

How The CARD Act is Helping Credit Card Holders Save Cash

Following the implementation of the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act on 22nd February 2010, there have been effects on the consumers and the cardholders. Whereas critics argue that the CARD Act may have cost the consumer a lot of money, in some way, there seems to be some relief to the same consumer. In regard to cost implication, there appears to be a notable increase in interest rates.

According to Cardratings.com study, there has been an increase in the annual percentage rates by averagely 2.1% from the end of 2008 to 2011 on new credit cards. Another cost element that has been witnessed is the ballooning of balance transfer fees. There is an increased trend in balance transfer as cardholders servicing credit card debts seek for lower APRs on their balance.

However, there seems to be an increase in the fees charged by card issuers on balance transfer. Card issuers have shifted from putting a cap on the maximum credit card balance transfer fee to charging a fee based on the balance being transferred. At the end of 2008, it was estimated that about 31% credit card offers were putting a cap on the card transfer fees but as at 2013, this percentage has significantly gone down and it is at 4 percent.

On the other hand, the percentages charged as fees on the amount being transferred has risen by 1.2 percent to settle at 3.3% compared to 2.1% in late 2008. What this means is that if you were transferring a credit card balance of 20,000 in 2008, it would have averagely cost you about $420. However, if you are transferring the same amount today, it would cost you a fee of about $660.

Despite these cost effects to the card holders, there are some benefits which these consumers are enjoying. One, there are fewer late fees and this is contributed to by the fact that the CARD Act made it a requirement by the card issuers to standardize billing cycles. Consumers are given not less than 21 days to settle their credit card bill.

From the effect of the standardization of billing cycles, the Consumer Financial Protection Bureau established out that there was a drop in monthly late fees by $474 million in the period between Jan and Nov 2010. What this means is that consumers could be paying less in late fees attached to their credit cards in the tune of $5 billion. This is certainly a big reduction in the amount of money that was being lost by the card holders in form of late fees.

Another benefit which has been noted is existence of lower over-the-limit-fees. Card issuers charge a fee when you clock and exceed the limit set for your credit card spending. Credit card issuers have made it an optional choice for you to exceed your set credit limit. This means that you willingly agree that you will be charged a certain amount of fee when you exceed the set credit limit.

Nonetheless, the fees have become quite competitive and are at lower levels compared to the period before the CARD Act was brought to the floor. According to observations made by Cardratings.com, the over-the-limit fees have now dropped to averagely about $14 compared to $33 in the period before the Act i.e. late 2008.

Last but not least, the CARD Act has led to fewer over-the-limit fees. Since the enactment and implementation of the CARD Act, many credit card companies stopped charging the over-the-limit fees because it was banned unless a cardholder willingly opts to such a program. This resulted to about 40% of credit cards with the opt-in program compared to about 95% of credit cards which were featuring the over-the-limit fees.

Missing Credit Card Payment may be the Worst Mistake You Make

Credit cards come with many benefits but all these gains can be overshadowed by a few missed payments. With your credit card, you can use it to make purchases and spend up to the credit limits you have been offered. Today, people are using these cards in areas like home improvements, travelling, purchases of groceries and other home stuffs as well as general shopping. But did you know that missing a few payments could plunge you into the most difficult financial problem you have ever encountered in your life?

There are numerous consequences of missing credit card balance payment and none of these penalties is either good. It is important that you pay credit card bills and balances in time. Even when you have money to pay your bills, you may accidentally fail to make the payment because you forget or you were too busy. This is never an excuse as to why you may make a late payment.

Paying your credit card bills must be a priority and not an option. Credit card bills can affect and taint your credit score for many years. When a person misses a payment, a late fee is placed on the account. This late payment fee becomes bad if it increases the balance of the card beyond the credit limit and this is because such as situation leads to additional fees.

Typically, the charges for late payments and over-the-balance charges will vary from one card issuer to another but generally they range between $25 and $35. If you miss payment, your interest rates could skyrocket to higher APRs. Card issuers will increase the APR due to a late payment and this can plunge you into difficulties. Whether it was caused by lack of funds or you forgot, you may end up paying 15 percent more on your initial APR.

If your APR was 16%, it means that with only one late payment, you may end up paying 31% on your credit balance. These charges continue to increase every time you make a late payment. Similarly, if you have a card with 0% APR intro rate, this privilege could be wiped out if you make a late payment. Your 0 percent APR could hike to 20.99% or higher because of that mistake.

Another impact you suffer when you make late payments is that they show up on your credit report. Usually a single late payment may not be a problem but a second or third late payment could raise a red flag. Late payments can make it more difficult for you to acquire loan facilities like mortgages, personal loans, and car loans. They also make it quite challenging to get new credit cards. Landlords also consider your credit report and may turn down your application because of the score.

If you do not make payment towards your credit card debt for several months, you risk your account being closed. This still damages your credit history and could have far reaching implications on your future borrowing ability. The more the payments you miss, the more you lower your FICO score and this means that you begin experiencing troubles with lending institutions. One of the reasons why people are going for the extremely high-interest rate payday loans is because they tainted their score with late payments and cannot now access loan facilities from banks or credit unions.

Why you are not Really Safe with Minimum Credit Card Payments?

If you have a balance in your credit card, you would better settle it before you find yourself in the most difficult situation. In one case, a 62 year old Francine Bostick who is a custodial manager living in Manhattan, Kansas, was faced with a tormenting experience with credit card debt. Francine Bostick and her husband James aged 74, together found themselves in a more than $120,000 credit card debt.

It took them more than 5 years to come out of their indebtedness situation. Because of the cheap credit available through these cards, Francine did not make certain considerations in her spending habits. She did not think twice about aspects like buying home appliances or even helping her children who have now grown to adults to meet their expenses. However, one time, things changed so fast and from one sweet moment of life, it became the turning point to a life full of desperation, fear, and discontent.

Francine said that they thought as long as they paid the minimum amount on their credit, everything was fine. When her husband developed dementia, this is when things turned haywire. As she was dealing with this serious health condition of her husband, on the other side, the card lenders began raising the required minimum payment.

Ms. Bostick points out some of the things she did which she thought were okay but they were not. She reckons that one mistake she might have made is being too supportive to her children even in situations where it was not necessary. By showing love through giving materials things, she used her credit card to help her adult children and overcompensated them in financial needs.

She tells of one instance in which her daughter was in college and she did not have insurance to cover her medical bills. She went on to help her meet the medical insurance needs. Ms. Bostick also laments that she sometimes bought stuff for her kids even when they did not ask for them. Whereas there is nothing bad about helping your children, the main point is; did she have the resources to keep supporting them even at the adult age?

Certainly, she overinvested in her children something that led to draining off of her credit card money. According to Eleanor Blayney, a certified financial planner and a consumer advocate at CFP Board (a nonprofit organization advocating for professional planning) she articulated the situation Ms. Bostick was facing as a confluence of events in her life.

In an effort to help in educating their children, parents are adding their indebtedness in the more than $1 trillion student loan debt. In a report presented by the New York Federal Reserve in 2012, it established that out of the student loan borrowers, about 5.3 percent were persons aged about 60 and above. This means that parents were taking the responsibility to borrow for their children’s education thus putting themselves into risks of being accountable for those credit card loans in future.

Top 5 Home Improvement Credit Cards to Pay Attention

With the spending on home improvements expected to go up reaching $110 billion in 2013, this means that businesses in the construction and building industry will expect increased returns. Credit cards are not taking these market projections for granted and they have devised reward card programs aimed at helping the consumers save money and enjoy other perks. With the home improvement cards, cardholders can get discounts, airline miles, points, cashrebates and other perks whenever they make purchases on building and construction materials and supplies.

Credit cards are ideal for those homeowners or real estate owners who spend occasionally on home improvements and remodelling. If you have long term home renovation projects, you may need one or more of these cards. Some of the cards you get in the market include;
1.    Sears Gold MasterCard
Sear is major supplier of home improvement materials. Consumers can get many of the materials and supplies they need from Sears store. In order to help its customers benefit from the purchases they make, the Store offers Sears Gold MasterCard. This is a reward credit card that enables the holders to earn points which can be redeemed for Sears gift cards.
 
2.    Chase Home Improvement Rewards Credit Card
This card is designed for home renovations and for the first 6 months, the card offers 0% APR. This means that you can pay your balance at zero interest in the first six months. With this card, every dollar you spent on materials and supplies earns you 3 points. You can redeem your points for cashrebates or rewards. This means that you can get 3% cash back on all your purchases towards home improvement.

3.    Home Depot Consumer Credit Card
This card offers no payment and interest within the first 6 months but this is subject to opening an account and spending at least $299. The card is ideal if you want to purchase all your materials and supplies from one store. After the intro period, the interest rates shoot to 17.99% and 26.99% depending on your credit score.

4.    Home Advantage MasterCard
Issued by Bank of America, Home Advantage MasterCard has a unique way of assisting consumers who are doing their home improvements and renovations. The card helps you pay down your mortgage loan. With this card, for event dollar you spend, you earn one point. When you earn $5,000 points, you can redeem them for cash but this amount goes directly to repayment of your mortgage. This is a good card for those with mortgage loans and excellent credit score.

5.    Discover More
You can save money on home renovations by using cashback cards. Discover More is a card designed to help homeowners and real estate owners to save money on home renovations. This card starts with a 0 percent interest rate. It also offers 5 percent cashrebate on spending towards home improvements, department stores, restaurants and gas stations. Other purchases will earn you 1 percent cashrebate.

Other cards you may consider are Home Projects Visa, Lowes Project Card, and the Menards Big Credit Card. Because of the increasing number of home improvement cards, you need to select wisely the right card for you. Check on the different perks offered by each card and your spending pattern. Do not be enticed to spend more in order to gain rewards.

Why Homeowners Are Using Credit Cards To Finance Home Improvement?

There is a growing trend in financing home improvements with credit card funds. Credit cards are used to provide credit to users but the balances these cards carry can attract high interest rates. Credit card debt seems to be the most prevalent debt problems within consumers in U.S. surpassing the mortgage debts and student loan debts. However, with these credit card debt problems, there seems to one group of consumers that is determined to spend hundreds of thousands of dollars through their credit cards to carry out home improvements.

According to numbers released in a study by Harvard University Joint Center for Housing, it showed that homeowners spent more on home improvements in the year 2012 by 9 percent. Home improvement budget estimates are set to reach $110 billion in the year 2013 and this shows that there is a huge market for money to be spend out there.

Card issuers are targeting this market and they have come up with reward programs that help homeowners save money on their home improvement projects. Homeowners need to determine the right funding means to use to finance their home improvement projects.  They may use cash, personal loans, equity line of credit (HELOC), FHA Title I remodeling loan, contractor refinancing, or credit cards.

Whether you are doing an occasional home repair or a long term home remodeling project, the home improvement credit cards may be an ideal choice to fund your project. These cards are essential for those people who have regular purchases in their home improvements and building materials. This means that purchases of products like hardware, lumber, paint, wallpapers, cements, plumbing fixtures, and the like will get cash rebates or other forms of perks.

Credit cards are a good option in these kinds of projects because they have no closing costs, loan fees, home appraisal, credit check, and no need to use your house as collateral for the credit. Depending on the card you are using, you could earn discounts on building and construction materials and supplies, cashback, points, and airline miles.

However, not all persons may need to use these cards. There are the negative aspects of using credit cards to finance home remodeling and they include the possibility of increasing your debt load, high APRs which are as twice the interest rates offered on mortgages and home equity. The interest on these cards is not tax deductable and this is another disadvantage. Another problem is that running the card could lead to low credit score especially when you begin to experience late payment of the credit card balances.

You may also risk being subjected to spending limit cuts. However, the home renovation credit cards provides you with a credit amount that you can comfortably pay off fast especially the small projects or ongoing projects that will need regular spending on materials and supplies.

Many people are most likely to underestimate how long they will take to carry a loan and this can result to problems when using credit cards. As a senior researcher with the Center for Responsible Lending, Josh Frank points out, most people underestimate how long they will take to settle their loans and when the worst happens and they miss a few payments, the penalties can plunge them into financial pitfalls. Credit card late payments can attract interest rates of up to 35 percent.