Posted on July - 19 - 2011
CK Asks: What is the CFPB?
This week, we took our video camera to the streets to find out what some San Franciscans know about the CFPB, which launched some of its initiatives July 21.
Check out what they had to say!
Posted on July - 19 - 2011
How to avoid holiday money fees: Best prepaid and credit cards
Holidaymakers are wasting 457million on hidden fees when using their credit card or taking money out with their debit card while abroad, according to new research.
The majority of credit, debit and prepaid cards charge customers when they’re used abroad, often without warning.
One in ten people are unaware of the fees for spending on plastic while on holiday, according to a study by uSwitch.com.
The comparison website estimates that this summer, 21 per cent of holiday makers will risk charges by using their debit card to withdraw cash while theyre away.
But these fees can be avoided.
From cash to credit, debit or prepaid cards there are many options to help avoid sneaky fees for spending abroad. We explain how.
Cash
It is essential that you do not leave organising your spending money until the last minute. If you do, youll get stung by poor rates and hefty commission fees at the airport. Read more…
Tagged Under : Credit, Credit Cards
Posted on July - 19 - 2011
Decline in delinquencies welcomed by financial services
Investors received some good news from the banking industry this week, when they updated the Fed with the improvement in delinquencies. Late payments on credit cards are on a steady decline and banks will benefit due to the declining charge off rates in the coming quarters. American Express, JP Morgan, and Discover Financial Services will see a bullish run on earnings and stock prices.
During the month of May American Express had posted the best ratio in terms of late payment. It had fallen from 1.7% during April to 1.6%. The rate had fallen to 2.66% at JP Morgan. Discover reported a rate of 2.88% which was the company’s lowest in the last four years. Despite all the troubles that Bank of America is facing, it saw the late payment rates fall from 4.52% to 4.28%.
The late payment rates had peaked at 6.61% during recession before it fell to 3.89% by the end of the first quarter. D
Tagged Under : Decline, Decline Delinquencies
Posted on July - 17 - 2011
How To Build Credit As A New U.S. Resident
You’re new to the United States. And you’ve discovered that life here can be challenging if you don’t have enough credit to generate a good credit score.
Today’s lenders, whether they’re passing out mortgage, auto or personal loans, rely on consumers’ three-digit credit scores when determining who deserves loans and who doesn’t. Lenders view those consumers with high credit scores — 740 or above on the popular FICO credit-scoring system — as being the least likely to default on their loans. Because of this, these consumers earn the lowest interest rates and qualify for the best loan products.
Those consumers with lower credit scores Borrowing money, or even qualifying for credit cards, is far from an easy task. Lenders don’t trust borrowers with scores that are in the low 600s on the FICO system. To protect themselves, these lenders will tag such low-credit borrowers with the highest interest rates. And that’s if they
Tagged Under : New, New Resident
Posted on July - 17 - 2011
Parents want to teach kids about money – but don’t know the basics themselves
More than eight in ten parents believe they should be the ones to teach their kids about money, yet half of them do not know what simple financial terms mean.
Research which highlights the alarming gap between people and the banks and financial providers that sell them products, shows 43% of parents do not hold basic financial knowledge.
The study, commissioned to raise awareness of credit card firm Capital Ones Credit Made Clearer initiative, revealed that many parents dont know what terms such as APR or PPI stand for.
That points to a cloudy outlook for the younger generation, as 81 per cent of parents believe that their children should learn about finance from them.
However, an encouraging 65 per cent of UK parents say that they intend to, or have already, had a financial education chat with their children.
Brian Cole, managing director of Capital One, says: Its encouraging to see that during difficult financial times, financial education is high on parents agenda. Ho
Tagged Under : Know, Know Basics
Posted on July - 16 - 2011
Borrowers lean on credit cards 21 days after payday
A quarter of Britons use credit cards to tide them over until payday – and it’s usually about ten days before they next get paid.
On average, people resort to using credit cards as a fall back when cash in their current account runs low – 21 days after theyve been paid.
Research by comparison site moneysupermarket.com, suggested that 11million people turn to their flexible friend for help.
One in ten (nearly 9 per cent) lean on credit cards 15 days after theyve been paid, meaning that they are funding half the month on their cards.
One in three people admitted to using their card for everyday purchases, such as food and petrol, but were confident at repaying the amount in full.
A further third say they use their credit card for big ticket items, such as holidays, which they say they may not be able to repay immediately.
The research also showed that people in Wales are most likely to turn to credit, bringing out their cards, on average, just ten days after pay day, whilst those in the East of England last the longest, holding out until 27 days after theyve been paid.
Kevin Mountford, head of banking at moneysupermarket.com said: With most of the population feeling the pinch at the moment, it’s no surprise to see so many people reliant on credit so early in the month.
However, unless you plan this properly and know you’re able to pay off your balance, this can be a dangerous trap to fall into.