The Platinum Card® From American Express: Is It Worth It?

May 18th, 2013 admin No Comments »

american express platinum designed for VIPsThe Platinum Card® From American Express is really designed for those seeking VIP treatment and benefits.  This card is technically a charge card, not a credit card (meaning: you’re expected to pay your outstanding balance in full each month).

The Amex Platinum charge card offers a very plain vanilla rewards program, which we discuss below.  The real question that comes attached to this card: do the rewards and benefits justify the steep $450 annual fee.  The remainder of this post is dedicated to arming you with enough information to make that call.

Earning Rewards with The American Express Platinum Card

The Amex Platinum card provides you with 1 Membership Reward point per dollar of spend, and 2 MR points per dollar spent at amextravel.com (excluding car rentals and non-prepaid hotels).  PIQ values MR points at just slightly north of $0.01 (you can read our analysis of the value of Amex MR points here).

Amex Platinum Sign Up Bonus

You’ll receive 25,000 Membership Rewards points when you spend $2,000 within the first 3 months of card membership (with just a touch over $250). However, if you’ve had the Platinum Card in the last 12 months, or any consumer Zync, Green or Gold Card within last 90 days, you won’t be eligible for the sign-up bonus.

The Power of Amex Platinum’s Benefits

Platinum’s muscle really comes from a number of unique benefits that we’ll cover below.  Quantifying these benefits can be quite challenging, making for a difficult apples-to-apples comparison with more traditional rewards cards, so in the end you’ll need to judge whether the myriad benefits justify the steep $450 annual fee.  The game here is for us to call out all the “gotchas” of each perk, and then for you to figure out how many of these benefits you can actually take advantage of.  Only then can you make a smart decision.

The Amex Platinum Card comes with a number of benefits listed below, many of which we cover in greater detail below.

  • No pre-set spending limit
  • 24-hour concierge service
  • Flying without black-out dates
  • Early notice about hot events
  • By Invitation Only: access to extraordinary events not available to the general public.
  • Airport Club Access
  • $200 airline fee credit
  • Fine hotel and resort benefits
  • Companion offer via International Airline Program
  • Fraud Protection

No Pre-Set Spending Limit

Unlike a typical credit card, which comes with a fixed credit limit, the spending limit for the American Express Platinum card adjusts as you use the card, factoring in your payment history, credit record, and any other relevant financial information that American Express has access to.

24-Hour Concierge Service

american express platinum concierge
This is an interesting benefit, and ties into the hot trend of having a “virtual assistant” at your beck-and-call.  So, the main questions you are likely to have are “What things can I use the concierge for?” and “Is the concierge actually useful?”.

Based on our own analysis of the Amex Platinum Concierge Program, I’d say that it definitely can offer value for certain types of requests, especially restaurant and event bookings.  For more complex tasks (such as trip itineraries, finding a great nanny or an honest, good contractor) it’s much less dependable.

Flying Without Black-Out Dates

You can use Membership Rewards points to pay for all or part of a flight, hotel stay, vacation or cruise booking.  Amex calls this their “pay with points” program.  Amex’s prices generally seem in line with the industry (according to my research, Amex was formerly powered by Travelocity, but now Orbitz powers their site).  There are no black-out dates simply because Amex is actually buying the ticket for you, and then debiting points from your rewards total.  The nice thing about this is that, unlike a normal award ticket, you can still earn bonus mileage.

$200 Airline Fee Credit

The devil is really in the details on this one.  And, lo and behold, here are the details:

  • You get $200 in credit each year that you can use to offset specific incidental airline charges.
  • Charges that you cannot offset (as they are not deemed “incidental”) include: wireless internet, fees incurred with airline alliance partners, airline ticket upgrades, mileage point transfer fees, gift cards, duty free purchases, and award tickets.  I guess they really want you to buy the food on the airplane, huh?
  • Another rub: you need to select a specific airline to which you can get the credit.  While you can make the selection at any time during the year, once made, you can only change it once per year, in January.  If you don’t change it, whatever you chose the prior year will be your default new selection.

I’ve also heard, though haven’t confirmed, that you can use the credit towards airport lounges (obviously, it would need to be a lounge associated with the airline you selected).


Companion offer via International Airline Program

Again, there are a lot of details here that need to be called out.  The basic premise is that anytime you purchase a qualifying business or first class international ticket on over 20 participating airlines, you can get a complimentary companion ticket.

  • Like most companion and award tickets, you’re still on the hook for taxes and fuel surcharges.  According to Amex, taxes range from $50-$250, but it’s the fuel surcharges that can really wipe you out (these charges can hit upwards of $1,300 and are especially prominent for flights to, from and within Europe).
  • There is also an additional fee of $39 per ticket charged by Amex (non-refundable).
  • Bookings must be made through Amex Travel using your Platinum Card.

Needless to say, first class and business class full fare tickets can be extraordinarily expensive.  If you’re routinely flying those routes on your own dime, then the $450 annual fee on this card is probably not even on your financial radar.  However, if you are flying on business, then this could be an amazing way to bring along your significant other in style without (completely) breaking the bank!

Traveling Abroad Just Got A Little Cheaper With the American Express Platinum Card

One nice call-out, and something quite unusual for American Express, is that there’s no foreign transaction fee on the Platinum Card.  While that’s certainly nice, and used to be quite rare, it’s not that hard to find such cards anymore (basically all of Capital One’s credit cards have no foreign transaction fee, for example).

Concluding Thoughts on the Legendary Amex Platinum Card

As a pure-play rewards card, the Platinum Amex doesn’t have a leg to stand on due to very average rewards coupled with a jaw-dropping $450 annual fee.  However, if you can take good advantage of the Platinum’s wide suite of benefits, it may make more sense.  The one benefit that really jumps out at me as a game-changer (if you can truly take advantage of it) is the free international 1st/business class tickets.  If you put together just one of these deals, you’ll more than break-even on the annual fee.

The Platinum Card® From American Express

Disclaimer: This content is not provided or commissioned by American Express. Opinions expressed here are author’s alone, not those of American Express, and have not been reviewed, approved or otherwise endorsed by American Express. This site may be compensated through American Express Affiliate Program.


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How Your Annie Sez Card Is Affected By 2013 Store Bankruptcy

May 17th, 2013 admin No Comments »

Q: I just found out that the owner of Annie Sez stores filed for bankruptcy back in January. I have a credit card account with them. How does that affect me? Do I still need to keep paying?

A: These bankruptcies can take time to be sorted out but the most recent development I have read (from May 8, 2013) is that the owner, Big M Inc, will be sold to a Canadian company called YM Inc if the bankruptcy court approves.

Despite its name, the Annie Sez credit card is and always has been managed by a totally different company; Comenity Bank. They issue cards for dozens of stores and are certainly NOT in any danger of bankruptcy.

That means it will be business as usual for your credit card account with them. You can still login, pay online, and call customer service since that’s all handled by Comenity, not Annie Sez.

So sorry to be the bearer of bad news, but you still owe the money and still need to continue payments as usual.

What’s the future for their stores?

This is a chapter 11 bankruptcy, which means the goal is re-organization of the company, it’s NOT to close it down.

If things go as planned the Annie Sez stores and brand will continue to be in business after the bankruptcy is finished. However there will be fewer stores, since they’ve already closed some of the least profitable locations.

What’s sad about the situation is that they’re actually a good place to buy women’s clothing. But last year’s Hurricane Sandy is what pushed the company into dire straits financially. If that didn’t happen, they might have avoided bankruptcy.

Should you keep their card or not?

Except for the 20% off coupon you get when you apply, their card was of very little use even before. And now with there being fewer stores, there are even fewer places to use it.

My recommendation?

If you don’t have their card, don’t get one.

If you do have their card, you might want to keep it open just so you stay on their mailing list for promotions and sales. But aside from that, I would suggest getting a Visa or MasterCard from a major bank. Try out this sponsored tool and in as little as 60 seconds you can see which card(s) you pre-qualify for:

This article was written of last updated May 17, 2013

Article source: http://creditcardforum.com/blog/how-your-annie-sez-card-is-affected-by-2013-store-bankruptcy/

How to pick a bankruptcy attorney

May 17th, 2013 admin No Comments »

Filing for bankruptcy is a serious step, so make sure someone is on your side

By Erica Sandberg

That’s it, you’re done. After
struggling to pay your debts, you’re ready to consider bankruptcy. It’s time to
contact a bankruptcy lawyer, but which one?  Some
advertise on TV and radio, others on billboards and bus stops. They seem fine,
but you can’t tell for sure. Asking friends for a recommendation is rather
awkward. A discrete online search, maybe?

Filing for bankruptcy is a
serious step, requiring excellent advice and the right representation. Here’s
how to find, and then choose, the best bankruptcy attorney for you.

How to pick a bankruptcy lawyer

Signals of professionalism
To get started, check the National
Association of Consumer Bankruptcy Attorneys, says Philadelphia
lawyer Michael Duffy. Membership in this organization indicates that the firm
or lawyer is “dedicated to the practice of bankruptcy, stays up to date on
the latest developments, and provides competent representation.”

Once you find members in your area, visit your
state bar’s
website
to find out if they’re certified. “Most
states have specialist certifications for bankruptcy,” says NACBA President Edward Boltz. This certification means the lawyer has
been practicing law for a minimum number of years, spends at least half his or
her time working with bankruptcy cases, is peer reviewed and has passed a
written examination in that specialty.

Such associations and
credentials provide assurance that the lawyer has practical knowledge and
will know what to do in case something goes wrong. “It’s insurance,” says
Boltz. “A lot of cases are straightforward, but no one realizes how fast they
can go south until they’re going through it.”

Prepare to meet with a few
After you’ve identified a
few lawyers or firms you’d like to explore further, view their websites.
They should contain clearly written educational information and downloadable
financial forms that you can fill out that to help you determine if you qualify
for bankruptcy.

Then, start to schedule
some appointments. “Most lawyers will give a free consultation,” says Boltz.
“It’s helpful to go to see more than one. Not to price shop, but to gauge how
comfortable you are with them.”

Before you meet, complete
the forms available on the website (if they offer them) and bring them with
you. Write down any questions you might have and bring them, too.

Qualities to look for in a bankruptcy lawyer
Personality and
professionalism matter, and — like anyone — a lawyer who appears terrific on
paper can fall short in person. It’s critical that you trust that the person you hire will be working in your
best interest.  Look for the following
three qualities during your consultation.

1. They discuss alternate resolutions. Chapter 7, a complete cancellation of eligible debts, might
not be the best or only way to deal with your financial problems. If there are
other options, an ethical lawyer will present them.

“With each case, I always weigh the
options,” says San Francisco bankruptcy lawyer Jeena Cho. “Sometimes I suggest
that a client just pay his bills. This situation comes up if the client is
making too much money or has too many assets. The other advice I give sometimes is to do nothing. This can happen for
those who are ‘collection proof,’ meaning they have nothing the creditors can
take in case of a judgment.”

Another suggestion might be a credit
counselor’s formal debt management plan, especially if most of your lenders are credit card
companies. The interest rate reduction the agency may be able to secure can
translate into lower payments.

Chapter 13
bankruptcy, a court-supervised
payment arrangement, might also be on the table. A lawyer may recommend it if
you have enough income to support at least some of your liabilities and own
property that could be taken in a Chapter 7 or a lawsuit. 

Understanding the full
menu of resolutions and then choosing from them reduces the possibility that
you will regret making the decision to file for bankruptcy.

2.  They display
a passion for the process. You wouldn’t
have a heart operation performed by a indifferent surgeon, nor would you want
the person representing you in bankruptcy court to be distant or aloof.
Therefore, the lawyer you’re considering should exude a genuine passion for the
occupation and process. Find out why he or she chose to specialize in
bankruptcy law. Listen carefully to the response. Many
lawyers find the work fascinating and
rewarding.

“I got into it over 30 years ago and
I still love it,” says Dallas lawyer Herman Lusky, “When people leave their debts behind, they can become
active members of society again.”

John Hargrave, a lawyer whose firm is located in Barrington, N.J., has a similar attitude. “By
working with people I can make their lives dramatically better. There are few
other areas, if any, where a lawyer can do so much good for someone in a short
amount of time.”

3. They hear and understand
you. For most people, declaring bankruptcy is a painful
decision. Because of the emotions involved, you’ll want your attorney to not just
to have the proper credentials, but to exhibit a desire to understand your
specific situation and goals. Your lawyer should possess empathy and a
willingness to take the time to ask probing (sometimes difficult) questions.

“Only hire someone
who wants to
know what led to your financial predicament,” says Hargrove. “Someone who will can address what your biggest
worries are.”

Not all lawyers have great bedside
(or courtside) manners, so after the meeting, ask yourself if you’re truly
comfortable with that person and if all of your concerns were addressed. If you
feel like a number rather than an individual, cross that lawyer off your list
and move on to the next until you find one who treats you with some respect. 

A
fee commensurate with service
And finally, the fee. Lawyers, even
those who help you not pay your creditors, aren’t free. The cost varies by
complexity and location, but in general is between $800 and $2,500
from start to finish.

Avoid ultra-low-rate bankruptcy
mills that advertise heavily and crank out the cases. “They usually only have a
few lawyers and a large number of legal assistants,” says Lusky. “For a simple
run-of-the-mill case, they’re probably OK , but you don’t know when
complications may arise. The first time you meet with your lawyer would be at
the creditors meeting, and if there is a problem, they won’t be prepared to
handle it properly.”

Don’t presume you get more for hiring
the most expensive lawyer on the block, however, or less if you scrape the
bottom of the price barrel. “Fees
are determined by the market,” says Lusky. “In some areas, caps are set by the
courts. This means that, for the same price, the client can usually get an
experienced, highly qualified lawyer for the same price as a novice.” Be sure
to ask what it covers, though, as some attorneys include court and other costs
in the quoted fee, others don’t.

Once you’ve found the
person who possesses the ideal combination of experience, character and cost,
you’re set. If you choose to move forward with
filing, you can do so with assurance that you’re working with a lawyer you can
trust.

See related: Protect your home if bankruptcy is coming, When bankruptcy makes sense, After bankruptcy, will banks ever lend to you again?

Published: May 17, 2013




Three most recent Legal, regulatory, privacy issues stories:

  • Proposed rule could help kids replace stolen Social Security numbers – The Social Security Administration is considering easing the process for replacing stolen SSNs for children 13 and younger, who are increasingly targeted by identity thieves …
  • California blasts Chase for robo-signing – California’s attorney general accused Chase Bank of using false documents in court cases to collect credit card debts …
  • Fed holds line on interest rates – The Federal Reserve’s rate-setting committee voted to continue its low-rate policy in the face of stubborn unemployment …








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2013 Honda Credit Card: It’s Not What You Think

May 17th, 2013 admin No Comments »

Q: When my father-in-law paid for dinner he accidentally pulled out a Honda rewards credit card from his wallet, which he then quickly put back in. I didn’t say anything at the time but the next day I tried to look it up and can’t find any evidence of this card even existing! Can you still apply for this in 2013 or has it been discontinued?

A: There are 3 Honda cards that exist today so what you saw must have been one of these…

(1) Honda FCU credit card

The Honda Federal Credit Union is for employees of the company. They offer a “Visa Classic” and “Visa Gold” but they’re hardly exciting. Even if you are a Honda employee, I would not recommend either of them!

(2) Honda Power Equipment Visa card

This can only be used to buy their “power equipment” which includes the following items: lawnmowers, generators, pumps, snowblowers, tillers, and trimmers (or at least that’s what they show on their power equip website).

This Honda credit card is issued by Wells Fargo and the financing promotion on it when I checked was 18 months deferred interest.

Honda financing promotion details

Keep in mind that is NOT the same as 0% for 18 months. Read the small print on the application and you will see that it’s possible to be charged interest retroactively with this offer. With an APR of 27.99% that would definitely hurt if it happened.

(3) Honda Rewards Visa

This is not a credit card! You may have seen someone use this and at first glance, it may look like a credit card. But this is actually a prepaid card that the manufacturer gives out for certain incentives (i.e. Buy a new car and get a prepaid Visa worth $X).

Honda even says this on the FAQ section of their website. Here’s a copy/paste of it:

“Is the Honda Reward Card a credit card?
No. The Honda Reward Card is a stored-value Visa card that carries an award-dollar amount based on participant achievement in Honda-sponsored incentive programs. Each time the recipient uses the card, the purchase amount is deducted from the available balance.”

Conclusion: They don’t have a “real” credit card in 2013

Honda VisaIf you want an everyday credit card to go along with your Civic or Accord, sorry but there’s not one that exists in 2013.

While some other manufacturer’s like Subaru and BMW offer credit cards, Honda doesn’t. Back around ’07 they used to have one thru Chase (pictured right) but that was discontinued years ago.

If you are looking for a credit card that has no annual fee and good rewards, here is a sponsored signup offer that I recommend:

Article source: http://creditcardforum.com/blog/honda-credit-card-its-not-what-you-think/

How to Be a Young Entrepreneur: 4 Tips for Kids

May 17th, 2013 admin No Comments »

Attention kids (and teens)! Do you have an amazing small business idea? Maybe it’s time to think about starting a home-based business. Contrary to what some people may tell you, anyone can be a young businessman or businesswoman. However, running your own business is a challenge at any age, and not everyone enjoys it. Owning a business is a lifestyle choice, and if you decide to do it, you need to be prepared for everything. If you’re determined and willing to work, you can do it! Grab a parent and keep reading to learn NerdWallet’s top four tips to help make your business a success.

1. Create a business plan

A great idea is only the beginning. To make money, you’ll need a solid business plan. For example, if you’re starting a knitting business, you have to write out a plan describing how you plan to sell your scarves and hats. You need a plan for finding new customers. You should also know what other knitting businesses are doing so you can make sure your business is the best. And, finally, you should know how you’re going to pay for all the yarn you need to make those hats and scarves in the first place, without losing money. There’s a lot to think about, so take your time and ask everyone you know for advice. When you’re ready to write your business plan, visit the Small Business Administration’s business plan website for more information.

2. Love what you do

The most successful business people really, really love their businesses. And it’s a good thing too, because businesses are a lot of work. Owning your own business is much harder than working for someone else. That doesn’t mean you shouldn’t do it, but it does mean that you should do it for the right reasons. Think about why you want to start a business before you jump in and make the commitment. If you just want to make money, maybe you should just get a job or open a short-term business like a roadside stand. However, if you have an awesome idea to share with the world and are willing to work hard every day, you’ve got the right mindset for an entrepreneur.

3. Be prepared for big changes

When you’re paddling a canoe down a river, you never know when you’ll encounter fast rapids, slow eddies, rocks or even waterfalls! When you’re running a business, you’ll probably encounter obstacles like new fads, a changing economy, supply problems, and who knows what else. Your business is like a canoe, and the business world is like a river. It’s up to you to figure out how to paddle forward and keep your business afloat. You may make some mistakes, and that’s okay. It’s important to keep going and think of ways to do better next time.

4. Keep learning

Besides marketing and strategizing, the best way to build your business is to keep learning everything you possibly can about running a business. You may have grown-up friends who run a local company, or you might be able to learn about businesses through your school or church. You can also learn a lot by doing research with a parent’s guidance. Here are three of our favorite youth-friendly business resources:

Biz Kid$

As the name suggests, Biz Kid$ is an awesome TV show about money and entrepreneurship, just for kids. Through a fun mix of comedy sketches, animation and stories that just might remind you of Star Wars or The Wizard of Oz, Biz Kid$ has a lot to teach you about money management and smart business decisions. Visit their website to see how you can watch episodes on TV, or just browse their blog and free video collection.

Young Americans Bank

Young Americans Bank in Denver, Colorado, is a real bank just for kids and teens. In addition to basic bank products like checking and savings accounts, this super-cool kids’ bank also offers business classes and workshops. Even if you don’t live in Denver, you can still purchase their Owning a Business Tool Kit. This eight-part, kid-friendly manual will help you write a business plan, and operate and promote your business. You can also read the Young Americans blog for free money advice from the experts.

Kidpreneurs

If you’re a kid and an entrepreneur, you’re a Kidpreneur! The Kidpreneurs book will take you beyond basic strategies for making money and also teach you about networking, making your business earth-friendly, donating to charity, thinking about your future and more. Even if you don’t buy the book, you should definitely check out the Kidpreneurs blog for business tips and interviews with successful kid business owners. In a few years, the Kidpreneurs team might even want to interview you!

On behalf of business nerds everywhere, NerdWallet wishes you good luck. Being a business owner is a challenge, but it’s also very exciting. Remember: work hard, keep learning, be prepared, and love what you do.

Article source: http://www.nerdwallet.com/blog/2013/young-entrepreneur-4-tips-forkids/

2013 Review: Carnival MasterCard vs. Chase Sapphire

May 16th, 2013 admin No Comments »

Surprisingly, fans of Carnival Cruises may not be getting the best deal with their branded card.

Just about every travel-related company has their own branded card. The Carnival Fun Points MasterCard is one such example, but how does it really stack up against an unbranded travel card such as the Sapphire?

Barclays Carnival MasterCardBarclays Carnival MasterCardSapphireChase Sapphire
(standard version)
Annual FeeNoneNone
Rewards ProgramCarnival FunPoints, which are redeemable for cruises and on-board amenitiesChase Ultimate Rewards points, which are redeemable for any travel purchase, cash back, gift cards, and merchandise.
Rewards on Regular Purchases1 point per dollar 1 point per dollar
Rewards on Categories2 point per dollar on Carnival Cruise Lines 2 points per dollar on restaurants and fast food. Air and hotel booked online through Ultimate Rewards will also earn two points per dollar.
Point value1 point = $0.008 (based on 12,500 pts = $100 onboard credit) 1 point = $0.01 towards travel rewards and cash back
Signup Bonus5,000 pointsEarn 10,000 bonus points
(after spending $500 in first 3 months)

I wish I could say this is unusual, but it’s not. A lot of these co-branded credit cards (which includes store cards) are not in your best interest. With the Carnival MasterCard you are getting 2x points on their ships, but given the lousy point value that’s hardly worth it.

In fact if you do the math, those double points on Carnival purchases is like getting as little as 1.6% cash back. And if you apply that same point value to the signup bonus, it’s like getting $40. I think most of us would agree that is about the most boring bonus offer ever!

And when these points are redeemed, I found these caveats about them in the fine print:

  • To redeem rewards for onboard amenities, you have to order 15+ days in advance – Per their own wording: “Orders for onboard amenities will be accepted up to 15 days prior to the passenger’s cruise departure date.”  Examples of onboard rewards are things like Robert Mondavi wine (3,700 pts), a terry cloth robe (7,200 pts), and chocolate + champagne (6,100 pts). Booking those things in advance is fine for most, but if you’re like me sometimes you just like to play it by ear on your vacations so you won’t know in advance the exact day and time you want these things.
  • Rewards are subject to availability – Oh this is super… the whole reason we get frustrated with airline frequent flyer programs is because of their blackout dates and restrictions. The Carnival application is vague as to what “subject to availability” actually means, but they do say on the website the following: “Certain rewards are available only during the time periods described in the Program communications. Merchants participating in the Program are subject to change. Some rewards have limited availability.”

Benefits? What benefits?

Now sometimes these types of cards make sense if you are getting extra benefits with the company. Much to my surprise, when I pull up the application for their MasterCard I see NOTHING listed specific to Carnival.

It’s almost as if the only thing they have to do with it is slapping their logo on the card. Aside from that, there is practically nothing that differentiates this from any other ol’ card.

The one good thing is that at least it’s a World MasterCard, which includes perks like concierge and a free emergency assistance hotline. But in my opinion the similar Visa Signature tier of cards is better because you get more benefits with less restrictive rules attached to them.

Is it worth it for the zero percent?

Now this is interesting. When I looked at the card on Barclaycard’s website, there was no 0% offer mentioned. However when I go to Carnival.com and click on the application from there, it loads with this zero interest promo on purchases:

Carnival's signup offer

12 months is hardly anything special. And it’s only applicable to purchases, NOT on balance transfers. You can find 0% offers a lot longer elsewhere.

Winner: Use a non-branded travel rewards card

Don’t be fooled… no matter how much you love their cruises, the Carnival MasterCard is not in your best interest. This is one of the few cards on the market where I honestly can’t think of one logical reason to apply for.

Even some store cards which are equally terrible I can recommend to people with bad credit because they’re easy to get approved for. But with Carnival, BarclayCard says you need good credit to qualify. Well if you have good credit that means you will be able to score something a lot better elsewhere!

My favorite travel card of 2013

When it comes to non-branded travel cards with no annual fee, this sponsored offer has an excellent program:

This review was written or last updated May 2013

Article source: http://creditcardforum.com/blog/carnival-mastercard-vs-chase-sapphire/

Proposed rule could help kids replace stolen Social Security numbers

May 16th, 2013 admin No Comments »

Change would ease process for young victims of identity theft

By Tony Mecia

With identity theft rising, the federal government is
considering making it easier for young victims to receive new Social Security
numbers.

Such a move could help tens of thousands of children whose
numbers have been stolen by thieves to obtain credit cards, legally hold a job
and collect fraudulent tax refunds — sometimes for years without detection. 

child-identity-theftChildren represent particularly alluring prey for
fraudsters, because typically nobody checks credit reports associated with
their Social Security numbers until the child is a teenager. A 2011
study by Carnegie Mellon University CyLab estimated that 10 percent of children have had their Social Security
numbers used by someone else — a rate 51 times higher than that of adults.

“Children are a much more lucrative target,” says Robert
Chappell, a Virginia State Police lieutenant and author of the book, “Child
Identity Theft: What Every Parent Needs to Know.” “You could victimize
them at birth and misuse their credit for 18 years before they find out about
it.”

Rule change considered
Adults and children seeking new Social Security
numbers today must show they were “recently disadvantaged” by an unauthorized person
using their identity. The Social Security Administration signaled early in 2013 it was considering lowering that bar and might change its policy to allow
new numbers for children 13 and under in certain circumstances. The comment
period ended in April. The Social Security Administration says it has no timetable for a decision.

Under the proposal,
the agency would issue a new number when parents could show that the old one
was stolen from the mail, publicly disclosed in error by the Social Security
Administration or misused by a third party — but they wouldn’t have to show
they suffered harm.

So, for instance, if somebody fraudulently provided a
child’s Social Security number for employment, the child could receive a new
Social Security number before any fraudulent activity showed up on a credit
report.

In a letter
to the Social Security Administration, a mother from California said the
proposal would help her 5-year-old daughter, whose number was used to file a
fraudulent tax return.

“The regulation would make a difference in that we wouldn’t
have to wait until there was actual damage to her credit to request a new
number,” she wrote. “We already know that there has been a theft, it’s already
been used fraudulently, and without the ability to start fresh, there is no way
to prevent fraud from occurring.”

Few oppose
Many
responses to the Social Security Administration supported the change. The
Federal Trade Commission and the Justice Department said they support the idea,
though they suggested raising the age of those eligible for new numbers to 18
and under, since many identity-theft victims might not realize they’ve been
victimized until they start their first jobs.

Other supporters included child-welfare agencies and foster
care advocates.

One of the few opponents was a representative of LifeLock, an
identity-theft protection company, who said placing more numbers into
circulation would be confusing and could exacerbate fraud, since roughly
two-thirds of people who misuse children’s Social Security number are the
child’s parents.

The proposal is unlikely to end the practice of stealing and
using children’s Social Security numbers, says Jamie May, vice president of
customer service with AllClearID, a company that monitors customer credit
reports for fraud.

She says she sees dramatic consequences of stolen numbers,
such as one teen who found out upon applying to college that her credit report
showed she owed $750,000. The girl had to delay entering college until she
straightened out the mess.

“The harm is really in the missed opportunities — waiting a
semester to enroll in college, or not being able to move out of their parents’
house or get a job,” she says.

Some states have passed laws that make it easier to freeze
kids’ credit files, says May. She would like to see credit agencies use some other
way to verify identity besides just checking that a person used a valid Social
Security number. The number was never intended to be used to establish credit.

Still, receiving a new number would be a “valuable tool for
kids who have serious problems,” she says.

See related: Child identity theft rising quickly, report says, Protecting your children from identity theft, Step-by-step guide to checking your minor child’s credit

Published: May 16, 2013




Three most recent Legal, regulatory, privacy issues stories:

  • California blasts Chase for robo-signing – California’s attorney general accused Chase Bank of using false documents in court cases to collect credit card debts …
  • Fed holds line on interest rates – The Federal Reserve’s rate-setting committee voted to continue its low-rate policy in the face of stubborn unemployment …
  • CFPB changes stay-at-home spouse rule – The federal government’s consumer agency has finalized a rule change to make it easier for nonworking, stay-at-home spouses to get their own credit cards …








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Credit label seductiveness rates for May 16, 2013

May 16th, 2013 admin No Comments »

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Article source: http://www.bankrate.com/finance/credit-cards/rate-roundup.aspx

Q&A: What’s the Best Credit Card for a New Small Business?

May 15th, 2013 admin No Comments »

NerdWallet, I just started my business and I need a credit card that will earn rewards. I will be buying supplies for the new office and will be doing some travel. What’s the best card for me?

Contrary to popular belief, a new business can get the same credit cards as a more established business. You don’t need to be turning a profit, you don’t need to have employees; you can be a sole proprietorship, an LLC or a seller on Etsy and you’re still eligible for a business credit card.

However, a new business has two considerations:

  1. Qualifying for the card: Without years of records and a history of strong financial health, you may need to use your own personal credit history and FICO score to qualify for the card. Please note that this means you’re liable for the debts put on the card, and that the accounts will appear in your personal credit report as well as your business credit report.
  2. Maximizing rewards: A new business might be purchasing office supplies or spending a lot of money on gas. Look for a card that rewards such purchases, and one that has a 0% introductory APR period that will let you make big purchases and pay them down over time without paying finance charges.

Best business credit cards for new businesses:

Chase+ Ink+Cash+Business Credit Card
Chase Ink Cash: With no annual fee, 5% cash back on office supplies and utilities (up to $25k spent per year), 2% on gas and dining (also up to $25k) and an unlimited 1% elsewhere, the Ink Cash is perfect for furnishing your first office and shuttling supplies back and forth. Plus, to kickstart your business, you’ll get a signup bonus of $200 and 6 months of 0% interest on purchase and balance transfers. This no-fee card is great for a business that’s just starting out.

Chase Ink+Plus+with+Ultimate+Rewards Credit Card
Chase Ink Plus: If your new business will easily exceed the $25,000 threshold mentioned above, consider the souped-up version of the Ink Cash. The Chase Ink Plus offers the same rewards program as the Cash (though it earns 2% rewards on gas and hotels, not gas and dining), but it caps bonus rewards at $50,000 a year instead of $25k. There is a $95 annual fee (waived the first year), but that’s offset by a killer signup bonus: 50,000 Chase Ultimate Rewards. The bonus is worth 25% more when redeemed for travel. If stocking the new office will rack up a large bill, the Plus offers a better value than the Cash.

Capital+One Spark+Miles Credit Card
Capital One® Spark℠ Miles for Business: If you’re traveling with business, this card offers a one-two punch of no foreign transaction fees and a cold 2 miles earned on every dollar you spend, on top of a 10,000 Capital One No Hassle Miles℠ signup bonus. Currency conversion fees can easily run 3% of all the funds you spend abroad, and an international business traveler would easily recoup the annual fee ($59, waived the first year) if she spent just $2,000. Plus, the miles can be redeemed against any travel expense – you aren’t tied to a specific airline or hotel.

For more information on choosing a business credit card, check out NerdWallet’s top small business credit cards or get customized credit card comparisons.

You might also be interested in:

Got a question for the nerds? Drop us a line at cards@nerdwallet.com. Remember, there’s no question too obvious or too silly – if you’re wondering about it, you can bet that everyone else is, too.

Article source: http://www.nerdwallet.com/blog/2013/qa-credit-card-small-business/

How To Buy Gold and Silver Below Spot Price

May 15th, 2013 admin No Comments »

Thanks to credit card incentives, it might be possible to buy precious metals for less than their spot price.

While there is a recent weakness in gold prices, its felt most in the paper-backed ETF outflows (GLD, IAU, SGOL). At least some of that outflow is due to higher demand for the real stuff. The central banks of Germany, Japan, Switzerland and others are repatriating a sizable chunk of their physical gold holdings from storage in NY and Paris.

When it comes to individual investors, demand for physical metals is still relatively strong, judging by the increasing premiums which are being charged over silver and gold spot prices.

But why pay spot? Here’s how it might be possible to buy gold for less, or at least below the wholesale market price.

Step 1. Signup for the biggest credit card bonuses available

I recently signed up for a card that gave 50,000 bonus points after spending $5,000 within the first 3 months.

Since 1 point = 1 cent cash back in the form of a statement credit, I’m basically receiving $500 back for spending $5,000. That’s a 10% return on spend.

But it gets even better because those bonus points are in addition to the points earned normally (1 point per dollar on purchases). That means the end result is that I’m getting an 11% return on that $5,000 in purchases.

Step 2. Use your new card to buy physical gold/silver coins and bullion

I’m not going to endorse or recommend one dealer over another, but all of the big brokers who sell direct to consumers (you know, the ones advertising on the TV and radio) will accept credit card payments.

Of course they do charge a small premium on card payments to cover their processing costs, but that’s typically 2.5 to 3.0%. Here’s an example with Silver Eagles from a major dealer’s website:

pricing for silver American Eagles

Do the math… $72.32 divided by $70.20 equals exactly a 3% surcharge for paying with a card.

Even if you pay that 3% premium, if you are getting an 11% rebate the net difference is still an 8% discount in your favor. Is that buying silver below spot price? No, but it is below wholesale and market price.

Since coins typically sell for more per ounce than bullion, if you want a discount over spot price you should stick with bullion bars.

Even if you’re buying pre-1933 gold coins… many of them sell for only 5-10% above melt value. When you factor in those 11% rewards, it’s like buying them AT melt value!

Step 3. Redeem your points after meeting the spend requirement

With the card offer I signed up for, I was awarded the 50,000 points after making the $5k in purchases. I’ve already redeemed most, but this screenshot at least shows you how I’m getting 1 cent value per point:

redeeming points for cash back

Even if the card’s spend requirement for the bonus is more than you want to spend on metals right now, remember you can always go to drugstores and office supply stores and buy retailer gift cards at face value with your credit card. In order to fulfill the spend requirement, you can stock up on gift cards for sensible things like gas stations, grocery stores etc. that you can use yourself at a later date.

Which cards have the best offers in 2013?

#1. Chase Ink Plus Bold

I have the Ink Plus. These are business cards but you can apply as an individual (sole proprietorship) using your Social Security instead of a business tax ID number. If you’re in the business of buying precious metals for investments, this is a great choice.

Go here and see my review of these cards and their best current signup offers.

#2. Cash back card offers

These will typically have lower bonuses amounts than what you will find on business cards. Most cash back cards give only a $100 to $200 spend bonus on new accounts. However at the same time, their spend requirements are usually lower; typically around $1,000 to $3,000. These are the best choice if you’re only looking to buy a couple thousand dollars worth of gold coins.

#3. Travel and airline offers

Airline cards usually offer the best value. Why? Because after meeting the spend requirement, with many of them you will receive 25,000 or 30,000 bonus miles. Depending on the airline, that’s usually enough for a roundtrip flight. If the cash value of that flight was $400 to $500, you end up getting more than 1 cent value per mile.

If you do this with a few travel credit cards, you could end up with enough rewards to largely cover the expense of a vacation for you and your significant other. Signup for a couple airline card bonuses and then a hotel card bonus and voila, you will have some of the biggest travel expenses covered.

Conclusion? Use card offers to buy coins

The legendary investor Benjamin Graham once said:

“If you were to distill the secret of sound investment into three words, we venture the motto, MARGIN OF SAFETY.”

The credit card bonus strategy is basically how to buy gold/silver coins and bullion below spot. Or if not below spot, at least below wholesale market price (assuming you are buying from low cost dealers). It’s one of the simplest ways to gain a margin of safety on your investment of precious metals.

This article was written or last updated May 14, 2013

Article source: http://creditcardforum.com/blog/how-to-buy-gold-and-silver-below-spot-price/

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