10 signs you're a credit card abuser

By Angela Spires

Five years ago, I was asked at the register at Victoria's Secret if I would like to apply for a Secret Angel's card. And as if my dreams of becoming a Secret Angel (never mind that it was for Victoria and not Charlie) weren't enough, the card came with a coupon book with over a hundred dollars in savings and other offers. Naturally, I applied.

Every six months to a year, my limit increased because I paid my bills on time. Soon, I had a $1,000 credit limit--maxed out--to an underwear store. Who needs $1,000 in underwear? I needed to be stopped.

High debt-to-credit limit ratios, paying credit cards late, and having too many credit cards can all have negative impacts on your credit score. If you're not paying attention to your spending, or you think using your credit limit to its full potential is as good as sticking to your budget, you're probably a credit card abuser. And you're not alone.

I was finally able to get control of my financial debt, and I cut up the card. So, how will you know if you are a credit card abuser?

You might be a credit card abuser if…

By Melissa Rudy

Consumers who haven't yet heard of the new, more secure "chip and PIN" credit cards are about to get an earful, as Visa prepares to push through readers for the improved chip credit card to merchants throughout the United States.

Although EMV microchip credit cards have become the norm in Europe and other parts of the world, American retailers have been slow to adopt the new payment processing systems, delaying the widespread use of these cards in the United States.

That's about to change with Visa's new initiative to encourage retailers to adopt the microchip card processing systems. According to their press release, Visa plans to offer incentives to retailers who implement the new payment systems and eliminate older ones that can only read magnetic stripe cards.

"Carrot and stick" approach

Visa is taking a "carrot and stick" approach to pushing EMV card readers on merchants...

By Maryalene LaPonsie

Alec Baldwin is so smooth, isn't he? With his charming smile, he makes you want to whip out your Capital One Venture rewards card and buy, buy, buy! But amusing commercials aside, I cringe a little at the thought of unsuspecting folks racking up thousands in debt for a plane ticket worth $500.

Rewards credit cards can be great if you know how to use them, so let's make sure you are using them right by going over the pros and cons of what's in your wallet.

The pitfalls of rewards credit cards

Let's start with the bad news: That rewards card in your pocket may be paying you some cash, but it's also likely leading you into debt.

At the end of 2010, the Federal Reserve Bank of Chicago completed a study on consumer habits and rewards cards. They found that, when offered a one percent cash back reward, consumers increased their credit card spending by $68 each month. Meanwhile, their payments decreased, which meant their total quarterly credit card debt increased by $115. The pay-off for the extra $115 in debt? A $25 reward.

By Richard Barrington

Were you taught the facts of life by your parents, or did you have to pick them up here and there and by experience?

No, this isn't referring to those facts of life, but to some of the basic financial skills just about everyone needs as they go out into the world. Here are five financial facts you should make sure your children understand before you help them open their first bank accounts:

1. Smart shopping makes a huge difference in banking

Your children may think of smart shopping as a way to occasionally save a few dollars, but there is a whole new world waiting for them when it comes time to find a bank account. Because a bank account is there every day, either earning interest or incurring fees, the right choices add up to big bucks over the course of a year.

For example, many banks, led by some of the biggest names in the business, have been raising fees on checking accounts. At the same time, free checking does still exist at some banks. The difference between a $12 monthly fee and no fee comes to $144 a year--a huge chunk of what the typical student is likely to have in a checking account.

Similarly, shopping for a high interest savings account means making more money each and every day. "High interest savings account" might seem like a contradiction of terms these days, but everything is relative. With average savings account rates at 0.15 percent, a Read the full article »

By Beth Orenstein

When was the last time you were in your bank? It was probably when you opened your accounts. Thanks to ATMs, online banking and your smart phone app, who needs a teller? You know the money is there when bills are due.

Because we're all so busy--with work and family and friends--it's easy to pay such little attention to our bank accounts. But you really shouldn't take a cavalier attitude about banking. Doing so could be costing you a lot of money.

Here are four of the most common mistakes when it comes to banking - and how to avoid them so that you're not losing money at a time when every penny counts.

1. Not checking your statements

Checking your accounts daily would be ideal, but since we don't live in a perfect world, the least you can do is check your monthly statements. These days, you probably get them via email--who doesn't want to help save paper and trees--but do you actually open the email and look at the statement?

It's a good idea to make sure all the deposits you made show up. Also, check that the withdrawals you made are for the correct amounts. Were you charged any fees on your savings account or checking account that you shouldn't have been? If you find a mistake, call it to your bank's attention immediately. If there's a mistake, it could be quite costly.

By law (Regulation E), banks are required to pay for any losses greater than $50 caused by Read the full article »

By Jim Sloan

With more than six companies being victimized by cyber attacks in recent months, it may seem like hackers are enjoying free access to our credit cards and bank account numbers. These security breaches, such as the one that compromised 200,000 Citigroup credit card customers and up to 100 million Sony Playstation customers, make many of us leery of doing any kind of online banking or shopping with valid credit card numbers.

But the truth is that there are many actions banks and companies are already doing to keep our valid credit card numbers safe. Consumers also have plenty of tools available to ensure that their accounts--from zero interest credit cards to 0 balance transfer credit cards--remain safe.

The size of the problem

Although the Citigroup hackers were able to get valid credit card numbers and contact information, the cyber crooks were not able to get those customers' Social Security numbers, birthdays and credit card security codes. That means the hackers won't be able to make direct charges...