Credit card companies have had to find ways to make up for this lost revenue. Many issuers have increased balance transfer fees, cash advance rates and foreign transaction fees. There are not more cards with annual fees and most every fixed rate card has been changed to a variable rate card.

Based on the 1000+ cards found in the LowCards.com Complete Credit Card Index, the average APR the week before the CARD Act was signed into law (May 2009) was 11.64%. As of last week, the average interest rate had increased over two percentage points to 13.70%.

A new study from Synovate confirms that issuers have increased rates on existing cards. According to their statistics, the average APR in the second quarter of 2010 increased to 14.7% from 13.1% a year ago. Synovate reports the average interest rate is at the highest level since 2001 despite the prime rate being at an historic low. There is now an 11.45 percentage point gap between the two rates, the largest in at least 22 years.

“Higher interest payments are hard on consumers, but it will get even worse if the Federal Reserve starts to make changes that increase the prime rate. Nearly every credit card now has a variable rate and many of those cards have the prime rate as their base. Once the prime rate rises from its historic low, consumers will see a corresponding increase in the APR of those variable rate credit cards,” says Bill Hardekopf, CEO of LowCards.com and author of The Credit Card Guidebook.

There seems to be some confusion among consumers on how the CARD Act can affect your credit card interest rates. Here is some information:

• The Card Act does not cap interest rates. Issuers can still increase your interest rates. However, competition provides its own regulatory-type influence to help anchor down rates and keep them from soaring.

• Issuers have to give a 45-day notice for rate increases unless it is a variable rate card and the card’s index (usually the prime rate or LIBOR rate) increases.

• If your credit card company does raise your interest rate, the new rate will apply only to new charges you make. If you have a balance, your old interest rate will apply to that balance.

• If your credit card’s rate has been increased since January 1, 2009, the new rules require issuers to evaluate whether the reasons for the increase have changed and, if appropriate, to reduce the rate. Since the beginning of last year, millions of cardholders have seen their interest rates increase. Some issuers raised rates to as high as 29.99% for cardholders with good credit. Issuers must also perform a review every six months on accounts that receive a rate increase. The review should determine if changes in key factors (such as cardholder credit risk, payment history, and market conditions) give reasons to reduce the rate.

• If your payment is 60 days past due, the issuer can raise your APR to the penalty rate (30% for some cards). If you immediately make at least your minimum payment on-time for six straight months, then your issuers needs to reevaluate your account. However, if you make another late payment during that six month period, the higher rate could apply indefinitely to new transactions.

• Issuers can still apply your minimum payment to the balance with the lowest interest rate. Due to the CARD Act provisions that went into effect this past February, the remainder of the payment has to be applied to the balance with the highest interest rate.

• Issuers can’t raise your rate during the first year of an account unless your payment is more than 60 days late, or unless it is a variable rate card and the card’s index (usually the prime rate or LIBOR rate) increases.

Here are some tips for consumers regarding their card’s interest rates:

• Shop around for a card with a low rate. Direct mail offers are increasing again. Don’t necessarily apply for the first offer you receive. Compare your offer with others found on the internet.

• Consider transferring your balance to a card with a 0% intro rate for twelve months and a lower ongoing rate. This could be beneficial if the amount of interest you save significantly outweighs the upfront balance transfer fee you will be charged. You need to do the mathematical calculations to determine if this is a financially prudent move for you.

• Pay down as much as  you can on the balance with the highest rate. Any amount above the minimum payment will be applied to the highest rate.

“Paying off your credit card debt is the only way to be unaffected by rate increases. Higher interest rates drain away money that could be used to pay off your debt, extending the time it takes to eliminate the balance. If you have a few extra dollars, make smaller payments more often. Micropayments save on the interest you pay and will help you eliminate your debt more quickly,” says Hardekopf.

Related:

• Credit Card Changes in the First Half of 2010
• Study Analyzes Changes in Credit Card Industry Since CARD Act
• Many Credit Card Issuers Not Providing Full Disclosure on Penalty Rates
• Financially Preparing Your Child for College

According to a recent study by Synovate Mail Monitor, households in the United States received 640.3 million credit card offers during the second quarter of 2010. This was an 83% increase over the 349.1 million offers mailed during the same quarter in 2009. Several issuers showed very significant increases in volume during the April-June period: Chase quadrupled their mailings and Citi nearly tripled their solicitations.

This increase in mailings follows a 29% jump during the first quarter of the year (481.3 million offers versus 372.4 million).

For the first six months of 2010, there have been 1.12 billion credit card offers sent through the mail. During the entire year of 2009, there were 1.39 billion offers.

“This is an indication that the financial outlook for credit card issuers has improved dramatically. Defaults and delinquencies continue to decline, and they have put new policies in place, as well as some increased rates and fees. They are one again aggressively pursuing new customers, but this time around, they seem to really be focusing on those with good or excellent credit scores,” says Bill Hardekopf, CEO of LowCards.com and author of The Credit Card Guidebook.

In addition to increased mailings, issuers are using incentives to get potential cardholders to sign up for their credit card. 71% of these mail solicitations contain an introductory offer, the highest percentage in the 22 years of Synovate tracking this data. A number of these introductory offers have 0% APR for a certain number of months.

While these credit card mail solicitation figures are hefty increases over the previous year levels, they are substantially below the record 1.58 billion mailings sent during the third quarter of 2005.

Related:

• Clarifying Interest Rate Changes Allowed with the CARD Act
• Many Credit Card Issuers Not Providing Full Disclosure on Penalty Rates
• Credit Card Changes in the First Half of 2010
• Credit Card Debt and Delinquencies Fall Again

Do you know what to look for before you apply for a credit card? If you’re not prepared ahead of time, there’s a good chance you might miss some key information on your credit card agreement. A recent study from CardHub.com found that many issuers still lack transparency on their credit card applications, despite recent regulations under the new credit card law (Credit CARD Act) meant to promote clarity in the credit industry.

The Summer 2010 Credit Card Application Study evaluated how much information could be gathered on a credit card application without reading the fine print, as this is what most consumers see before they apply for a credit card. The study evaluated the 10 largest issuers on the clarity with which they disclosed essential information such as APRs, common fees, and details on rewards programs. It was determined that the ideal application would have this information clearly displayed, without the applicant having to actively search for it.

Of the issuers evaluated, Capital One and Bank of America ranked the highest, with scores of 96.4 percent and 95.0 percent, respectively. The issuer that performed the worst in the study was U.S. Bank with a score of 59.3 percent. USAA and American Express followed with scores of 77.5 percent and 78.3 percent, respectively.

The category in which issuers performed poorly across the board was clear disclosure of the balance transfer fee. It is particularly important that this fee is clearly displayed because it less likely that a consumer would know to look for it (as opposed to knowing to look for the APRs) and it can cost the applicant a significant amount of money.

Applications were also consistently lacking in information on rewards programs for non-cash-back rewards credit cards. There was often information on how to earn rewards (e.g. one rewards point for every $1 spent), but it was often difficult to find how much rewards points and miles were actually worth (i.e. is 15,000 points worth a trip to Florida or a trip to Europe?). In order to find this information, the applicant typically had to read the fine print and in some cases navigate to an entire new section of the website.

Although clarity was lacking in some areas, there were also signs of improvement. Vague language and phrases such as ‘up to’ and ‘as low as’ were found to have diminished considerably. It was also often fairly easy to find information about the annual fee and in many cases the introductory APRs.

This improvement is encouraging, but the fact remains that in order to truly know what you’re getting into when applying for a credit card, you must carefully read the terms and conditions of your credit card agreement. If nothing else, be sure to look for the introductory and regular APRs for purchases and balance transfers, the annual or monthly fees, the balance transfer fee, and details on your rewards program. This will give you a good start for being your own financial advocate.

Related:

• Credit Card Changes in the First Half of 2010
• Personal Credit Cards: Better for Your Business?
• Many Credit Card Issuers Not Providing Full Disclosure on Penalty Rates
• Study Analyzes Changes in Credit Card Industry Since CARD Act

In order to score the interview for that job you saw that you swear was made for you, you’re going to need a resume and because you have a lot of competition, being one person in a big crowd of people who all firmly believe that job was made for you, you’re going to need a resume that accurately sings the praises you know you deserve. So here are some simple things you can do to improve upon that resume you’ve been pouring over.

• Keep It Up-to-Date
  If you’re still sending out the resume you wrote three, six, or even twelve months ago, make sure to take a few minutes and think back over the course of where you have been and what you have done since you first wrote your resume. Have you acquired any new skills or become more proficient in something you didn’t feel confident including in your first draft? Be sure to add them before you change anything else. Potential employers want to know who the person applying for the job they are offering is now, not who they were a few months ago.

• Organization is Key
  If you Google how to write a resume, you’re going to find a ton of results that look super fancy, have embellished language and design and frankly, a lot of stuff that doesn’t need to be there. To pull off a distinctly professional and clear resume, all you need to know is how to use headers to announce distinct sections of your resume and bullet points to separate your thoughts and experience.

• Don’t Marry Your Words–Self-Editing is Your Friend
  Speaking of embellished language… a resume is a list of your skills and accomplishments and it is meant to be a quick way for your potential employer to see if you possess the skills and knowledge in order to get the job done. While correct spelling and grammar are a must, you do not need to include your life story in your resume, nor do you need to write more than what is necessary. Keep your resume condensed and easy for someone to read quickly.

• Use Keywords
  Managers who are constantly receive a high volume of resumes are beginning to rely on search systems that filter through someone’s resume and places them in an automated search based on whose skills match those of the job description. Use keywords when and where they make sense, but be sure to include the keywords that you saw in the job description for the job you’re applying for without copying and pasting the full job description language.

• Include Your Name in the File Name
  Instead of just naming your resume ‘resume’ on your computer and sending it to your potential employer, be sure to get noticed and stay noticed by including your full name in the file name of your resume. For example, your file name could be “Jane Doe Resume” or you can also include the date along with your name to refresh the employer’s memory of who you are and when you first showed interest in the job.

Related:

• 5 Minutes for Mom Job Board: Helping Moms Find Real Work at Home Opportunities
• Personal Credit Cards: Better for Your Business?
• “Normal” Schedules and Mojo — One Does Not Always Follow the Other
• Book Review: Tribes by Seth Godin

Here is a look at the three major provisions of this part of the CARD Act.

Interest Rates
If your credit card’s interest rate has been increased since January 1, 2009, the new rules require issuers to evaluate whether the reasons for the increase have changed and, if appropriate, to reduce the rate. Issuers must also perform a review every six months on accounts that receive a rate increase. The review should determine if changes in key factors (such as cardholder credit risk, payment history, and market conditions) give reasons to reduce the rate.

“This is the rule that could make a real difference for cardholders. Since January 2009, millions of cardholders have seen their interest rates increase. Some issuers raised rates to as high as 29.9% for cardholders with good credit. These higher rates shocked cardholders and they want their APR restored to the original rate,” says Bill Hardekopf, CEO of LowCards.com and author of The Credit Card Guidebook. “However, the catch in this is two words, ‘if appropriate.’ The final decision is left with the card issuers. Credit card issuers need revenue and they may not be eager to review and restore the original rates.”

According to the LowCards.com Weekly Credit Card Rate Report, the average advertised credit card rate was 11.68% in January 2009. Last week, that average was 13.71%.

Fees
The new rules also protect card users from unreasonable late payment and other penalty fees. They should now be assessed in a way that is fairer and less costly for consumers.

Issuers can only charge one fee for a single event or transaction that violates the cardholder agreement. The late payment fee can’t be more than $25 or more than the cardholder’s minimum payment. However, if one of the last six payments was late, issuers can charge up to $35. The fee may also be higher if the credit card company can prove that the costs it incurred due to the late payment justifies a higher fee.

Currently, the late payment fee is typically $30-$39, and the same fee is charged whether you are late with a $20 minimum payment or a $100 minimum payment.

The rule also eliminates inactivity fees. Credit card companies can no longer charge fees for not using your card.

“Issuers are already reacting to this limitation. Instead of the inactivity fee, some issuers are adding a yearly minimum. If you charge less than this minimum amount, then they charge you an annual fee,” says Hardekopf.

Gift Cards
The new rules apply to all store and merchant gift cards, as well as cards for general use, such as Visa gift cards. These rules include:

• Limits on expiration dates. The money on your gift card will be good for at least five years from the date the card is purchased. Money added or loaded on to the card must also be good for at least five years.

• Replacement cards. If your gift card expires and there is unspent money, you can request a replacement card at no charge.

• Fees. The law bans dormancy, inactivity and service fees on gift cards unless there has not been any activity for twelve months and the issuer clearly discloses all fees on the packaging. In those cases, consumers can only be charged one fee per month. Last month, Congress passed legislation to extend the effective date for the disclosure requirement until January 31, 2011, for cards issued prior to April 1, 2010.

Some states have stronger state laws for gift cards and these will remain valid. Many states do not allow fees or expiration dates. In California, a card with cash value of $10 or less may be redeemed for cash.

Related:

• Study Analyzes Changes in Credit Card Industry Since CARD Act
• Many Credit Card Issuers Not Providing Full Disclosure on Penalty Rates
• Financially Preparing Your Child for College
• Credit Card Changes in the First Half of 2010

Before these new Federal Reserve rules took effect, most banks automatically added courtesy overdraft protection to checking accounts, providing the details and fees in the fine print. Some customers didn’t realize the high price of the fee until they incurred the charge.

An overdraft occurs when one does not have enough money in a checking account to pay for a transaction, but it is paid by the bank anyway. This service is a loan from the bank and it isn’t free. Banks charge a non-sufficient funds paid item fee (NSF) that is typically $30-$40. A fee is charged for each transaction paid in this manner.

If you did not opt in, your bank’s standard overdraft practices no longer apply to your everyday debit card and ATM transactions. These transactions typically will be declined when you don’t have enough money in your account, but you will not be charged overdraft fees.

The new rules don’t lock you to your choice forever; you can still make changes to your account. You can choose to opt in or out of overdraft protection at any time.

The rules are good for consumers, but will reduce revenue for banks. Some banks will try to persuade customers to choose the “benefits” of overdraft protection since banks are anxious to hold on to as much fee income as they can.

“This is a good time to sign up for free online alerts offered by most issuers. You can get a daily text or email that tells you the balance in your account. Knowing the amount of money in your checking account can help you avoid the embarrassment of a declined purchase,” says Bill Hardekopf, CEO of LowCards.com and author of The Credit Card Guidebook.

The new rules do not cover checks or automatic bill payments–banks can still authorize and pay overdrafts for these transactions at their discretion and charge a fee. If you do not want your bank’s standard overdraft practices in these instances, talk to your bank; they may give you the option to cancel.

Statistics on how many people have opted for overdraft protection are not yet available. A July poll conducted on the National Foundation for Credit Counseling website found that 26% of 2,089 respondents intended to opt in for overdraft protection.

If you are interested in the overdraft protection, be sure to carefully read the fine print to understand its costs and limitations. The cost of an overdraft may not end with the NSF paid-item fees. Secondly, transactions are not necessarily processed int he order they occur so banks can charge the items to your account in any order they choose. Finally, even if you choose to opt-in, the payment of an item is discretionary. Banks will choose which transactions to cover so a consumer can’t always count on having overdraft protection when you need it.

Your bank may offer less expensive alternatives to overdraft protection. Some banks allow you to create a link to your credit card, savings account or line of credit that will fund overdrawn transactions. There is a fee for each transaction, but it is typically $5-$10, much less than the overdraft protection. You must contact your bank to set up this alternative service, since it is not part of the opt in selection.

Related:

• Consumer Tips on New Overdraft Rules
• Tips for Consumers with Bad Credit Scores
• Free Online Alerts Can Help Credit Card Customers
• Financially Preparing Your Child for College

The latest Federal Reserve Consumer Credit Report showed that revolving credit, which is primarily credit card debt, decreased in June at an annual rate of 6.5%. It dropped $4.5 billion for the month, and has declined nearly $150 billion since October 2008, from $976.1 billion to $826.5 billion.

This drop in credit card debt is good for consumers and issuers. Delinquency rates are dropping, indicating that consumers are paying down debts to manageable levels and reducing their risk of default. But not all of the credit can go to consumers, since issuers have minimized their risk by maintaining stringent credit card approval rates, slashing credit limits, writing off bad loans and canceling accounts.

“Paying off debt and spending less is good for personal finances. Fewer delinquencies and smarter lending practices are good for banks. However, cutting back on spending and lending is not good for the economy if they go too far and continue for too long. Lending and spending are the oxygen and water for the economy, and our economy will grow weak without a healthy supply of oxygen and water,” says Bill Hardekopf, CEO of LowCards.com and author of The Credit Card Guidebook.

The Federal Reserve is searching for new ways to stimulate lending and revive the economy. Interest rates have remained at historic lows since December 2008, but these low rates have provided little incentive for lenders or borrowers.

On Tuesday, the Fed left its key bank lending rate at zero to 0.25%, the lowest level in decades, and appears to be in no hurry to raise it. The Fed’s announcement said rates will remain “exceptionally low” for “an extended period.” This means rates on some credit cards, home equity loans, some adjustable rate mortgages and other consumer loans will stay low.

Ideally, the low rate encourages businesses and individuals to finance major purchases, generating momentum in the economy. However, interest rates have been at the historic low for a couple years and have not created the spark.

A low prime rate does not guarantee a low interest rate for credit cards. In August 2008, before the recession, the prime rate was 5.0% and the average credit card APR was 12.03%. Today, the prime rate is 3.25% and the average credit card APR is 13.67% according to the LowCards.com Weekly Credit Card Rate Report.

Related:

• Credit Card Debt and Delinquencies Fall Again
• Tips for Consumers with Bad Credit Scores
• Credit Card Changes in the First Half of 2010
• Clarifying Interest Rate Changes Allowed with the CARD Act

“We have busy lives and do not have time to closely monitor our accounts all of the time. These online banking alerts can be a tremendous help in letting you know some important account information about your credit card. They can certainly help you avoid some painful late fees or over-the-limit fees, as well as notifying you of possible fraudulent activity. These alerts give you more control over your account and help you take immediately action,” says Bill Hardekopf, CEO of LowCards.com and author of The Credit Card Guidebook.

Online alerts can let you know your daily account balance, when your payment is due, and when the payment has been posted to your account.

In addition, these alerts can:

• Notify you when your credit card balance reaches a certain level you set. Or when your available credit is less than a predetermined percentage of your total credit limit.

• Make you aware of irregular credit card activity.

• Inform you when a purchase above a set amount is charged to your account.

• Let you know when changes have taken place with your account’s information such as the address, phone number, or email. This may indicate fraudulent activity.

• Some cards allow you to keep track of your monthly point balance.

The alerts are free, but your phone carrier may charge for the text messages. The issuers point out that they can’t guarantee the accuracy or delivery of an alert and they are not liable for the delays or errors in the content of any alert.

Related:

• New Checking Account Overdraft Rules Now in Effect
• Consumer Tips on New Overdraft Rules
• Clarifying Interest Rate Changes Allowed with the CARD Act
• Another Sign of Recovery: Credit Card Mail Solicitations Increase 83%

“Credit cards represent freedom and independence for college students, especially that first year when living away from home is new and exciting. The more they understand about the correct use of credit and its consequences, the more responsibly they can handle it,” says Bill Hardekopf, CEO of LowCards.com and author of The Credit Card Guidebook. “Money management is not a skill they should learn from their friends or by making mistakes.”

What Has Changed
As of February 22, the CARD Act began limiting credit options for students under the age of 21. While the regulations protect students from aggressive credit card marketing on campus, the law also restricts credit availability for students. If you are under 21 and want to open a credit card account, you will need to show you are financially able to make payments, or you will need a co-signer.

There are many benefits but also some potentially harmful side effects to these regulations. Parents can have more control and more influence over their students’ finances. These strict application requirements will reduce the number of college students with credit cards and credit card debt. But the law also eliminates the opportunity for responsible students to begin building a good credit score at a young age.

Before the CARD Act, it was very easy for college students to get a credit card. Issuers wanted to build brand loyalty early and if students got into debt, the parents typically bailed them out. This also gave responsible students a chance to build a good credit score while they were in college. Today, if college students can’t get a credit card while in school, it limits their ability to start building their credit score. While the credit score may not matter in college, it will matter immediately after graduation. Lenders, employers, and even apartment managers use credit scores to help make judgments about the applicant. A low or non-existent credit score could mean higher rates for loans or even a missed job opportunity.

Payment Options for Students Under 21
* Credit cards. Students under the age of 21 can get a credit card if he or she has a co-signer or has proof of the ability to make payments.

Co-signing should only be an option if your student can use a credit card responsibly. If the student makes a late payment, it also shows up on the co-signer’s credit report. If the student can’t pay off the debt, the co-signer is responsible for all the debt.

As a co-signer, you will also receive a monthly statement. Credit limits can’t be increased without your approval. It is advisable to “opt-out” for over-the-limit coverage; then, any charge that puts your account over the limit will not be accepted. This avoids costly over-the-limit fees.

Sign up for online account alerts. You can receive a text or email when a payment is due, and if there is irregular activity in the account.

“Students can also get a credit card if they have a job or can afford the payments. Credit card issuers give very little guidance in their terms and conditions about minimum income requirements or how they verify income,” says Hardekopf. “The definition of income also varies by issuer. Some include stipends, grants, and scholarships as income.”

* Debit cards. These cards are tied to checking accounts. Opt-out of overdraft coverage to avoid overdraft fees. Online account alerts can notify you when the account falls below a specified balance. Debit cards do not help build credit scores and they may not be a sufficient balance during an emergency.

* Prepaid cards. These can be purchased anywhere, even grocery stores. However, they also have fees, so read the fine print before you purchase.

* Secured cards. These cards have more fees and the interest rate in high, so pay it off each month. But secured cards are relatively easy for anyone to get before it is secured by a prepaid deposit. Make sure that the card reports to a credit agency. Secured cards from Orchard Bank and Public Savings Bank both report to credit agencies.

Credit Card Stats for College Students
According to a Sallie Mae study, 84% of college students had at least one credit card in 2009, up from 76% in 2004. The average amount of debt carried by college cardholders is $3,173 which represents a 46% increase over the 2004 figure of $2,169. The average number of cards per student is 4.6. Only 17% pay off their entire balance each month and 22% make just the minimum payment.

Even though these numbers should drop because of the CARD Act, they still show the importance of talking with your students before they get into debt. The CARD Act does not remove this responsibility from parents.

Talk With Your Student About Credit Card Debt
Parents should teach their student how to budget, spend wisely, and use credit. Start with your own credit card bill and use it to explain interest rates, grace periods, and minimum payments. Explain the high rates of cash advances and how to avoid these loans. Show them examples of how much they will pay in interest by only making the minimum payments. Tell them about the fees and penalty rates. Use online payment with reminders to help avoid late payment. Teach them to monitor their credit limit and if you must carry a balance, keep it under 30% of your credit limit.

Make it clear that credit cards are loans that have to be repaid in full each month. If you can’t afford to pay for the item with cash, then you can’t afford the item. Tell them what is a good time to use a credit card for payment (textbooks, emergencies) and what isn’t (clothing, food, entertainment).

Teach them that credit scores will be nearly as important as test scores. Show them a copy of your own credit report and use that as an example of building a good (or bad) payment history with credit cards. They can even review their credit report for free each year to check their progress at annualcreditreport.com.

Give advice on how to avoid credit card theft and what to do if your card or identity is stolen. Don’t let anyone else use your card.

Related:

• Study Analyzes Changes in Credit Card Industry Since CARD Act
• Many Credit Card Issuers Not Providing Full Disclosure on Penalty Rates
• Credit Card Changes in the First Half of 2010
• Recent Graduates Need Financial Advice

The study showed that consumers with scores below 650 (subprime) use debit cards an average of 28 times per month and spending averages $860. Consumers with scores above 720 (superprime) use debit cards an average of only 11 times per month and spending averages $324 per month.

Subprime consumers use debit cards for 73% of card spending. Superprime consumers only use debit cards for 28% of card spending.

Consumers with lower credit scores have difficulty getting credit cards. According to a recent FICO study, over one-fourth (25.5%) of Americans have poor credit. Nearly 43.4 million people now have a credit score of 599 or below.

The MasterCard study says that debit usage peaks in the middle income bands ($40,000 – $70,000 in household income). It is lower among consumers with both lower and higher income. However, it shows the average number of monthly debit transactions is growing among prime users as they use debit cards instead of cash and checks.

The overall use of debit cards is increasing. According to their annual reports, MasterCard’s debit card usage in this country increased 10.5% in the fourth quarter of 2009 versus year ago levels, while Visa reported a 17% increase.

Related:

• Financially Preparing Your Child for College
• Tips for Consumers with Bad Credit Scores
• Clarifying Interest Rate Changes Allowed with the CARD Act
• Another Sign of Recovery: Credit Card Mail Solicitations Increase 83%

A sweet coupon is tough to resist, but offers that appear too good to be true can be fraudulent. Coupons are easy to find and have become so popular that scammers regularly reared their ugly heads with sophisticated cons.

With a little experience and the following nine tips, you can spot these con artists and avoid being taken for a ride.

1. Never pay for coupons. If you have to pay for coupons, you’re not really getting a deal. And there’s a high likelihood you’re simply being scammed or the deal is available elsewhere online for free.

2. Watch for “bait and switch” tactics. This scam offers you online coupon codes and, once you agree, requires you fill in a form with personal information, including your credit-card details, passwords and other financial data. These “phishing” sites can result in your receiving a ton of email spam and a possibly having to deal with identity theft.

3. Look for legal lingo and expiration dates. Online coupons will have the same usage copy as those found in your newspaper. Make sure your coupon includes legal lingo reading: “Not to be altered, copied, transferred, purchased or sold.” Coupons lacking this line of copy are often altered copies of old, expired coupons.

4. Avoid online membership clubs or services. Many offer savings you could find elsewhere and require exorbitant fees. There’s something very wrong with paying $9.95 to register with a club then paying 10 percent of each coupon’s face value and a 75-cent shipping fee.

5. If a store refuses to accept an Internet coupon, send a letter or email to the company customer service department and provide the name of the store, the name of the person with whom you spoke, a copy or link to the coupon and where you got it.

Most retailers are familiar with online coupons by now, so you shouldn’t have a problem. Just in case, however, it helps to know many online coupon sources have agreements with grocery store chains. The failure of local store management to accept online coupons may only mean a break-down in training. Alerting the company customer service department should ensure you’re able to use your Internet coupons on your next trip to the store.

6. Keep an eye on the cash register. Make sure the printable coupon is applied to your total before you make the purchase. A discount will NEVER appear after you have purchased an item.

7. Use a reputable online coupon site like Coupon Sherpa.

8. Go straight to the source. Sign up for emails from the retailers you shop with to get coupons directly from the retailer.

9. Report fraudulent activities to the FTC. To file a complaint, visit www.ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261.

Related:

• Is your debit card safer than your credit card?
• Clarifying Interest Rate Changes Allowed with the CARD Act
• Another Sign of Recovery: Credit Card Mail Solicitations Increase 83%
• Is Your Credit Card Company Upfront with its Customers?

The study released last week–”Two Steps Forward: After the Card Act, Credit Cards are Safer and More Transparent–But Challenges Remain”–analyzed and compared the credit card marketplace before and after the CARD Act. The study reviewed credit cards offered inline by the twelve largest banks and twelve largest credit unions–nearly 450 credit card offers.

Here are some of the major findings from the Pew Study:

• Rated continued to increase. Overall, purchase interest rates have increased 30% between December 2008 and March 2010. In December 2008, the median purchase APR was between 9.99% and 15.99%. In March 2010, the range was 12.99% to 20.99%.

• Penalty interest rates received the most attention and criticism in the report. The Federal Reserve rules “permit a creditor to apply an increased rate to an existing balance when an account becomes more than 60 days delinquent.” But the report said that the implementation of the changes has led the emergence of a “troubling new trend.” Some issuers such as Bank of America no longer list the amount and terms of the penalty rate in the terms and conditions. They only include a sentence in the fine print that states they reserve the right to impose a penalty fee. The report argues that this goes against regulations; cardholders are entitled to know the pricing of their account, the penalty rates that could apply, and how high those rates could be. Altogether, one in five penalty disclosures mentioned the right way to “cure” (return to the original, non-penalty interest rate). Only three of ten banks that use penalty rates mentioned the legally mandated cure periods.

• 78% of banks offered an introductory rate for purchases and/or balance transfers. The median introductory period is seven months.

• No surveyed banks offered a fixed rate on any credit card.

• Rewards are not used to penalize cardholders for late or overlimit payments. 23% of surveyed bankcards put limitations on cardholders, preventing them from collecting rewards if there is a late payment or penalty on their account. Some issuers require a reinstated fee for lost points, but this is not described in the terms and conditions.

  For example, American Express will cancel points in Delta, Jet Blue, Hilton Hotels and Starwood Hotels accounts earned for that cycle if you have a late payment fee. They can be reinstated for $29 for each month.

• As of yet, legislation did not generate an increase in new annual fees. The number of cards that charge an annual fee actually dropped 1% from July 2009 to March 2010. However, during that time, the median annual fee increased from $50 to $59 for bank cards.

• Cash advance and balance transfer fees increased on average by one-third between July 2009 and March 2010–from 3% of each transaction to 4%. At the same time, cardholders are reducing their cash advances. In 2009, cash advances dropped by more than 40%.

• Only 5% of issuers disclosed the minimum payment formula as part of the application process. Those that did require 1% of principal balance.

There were also several recommendations from the Pew Study:

• Full disclosure of penalty fees. The issuer should clearly list actions that can trigger the fee, what the fee will be, and how/when the rate will return to a non-penalty fee.

• Monitor transaction surcharges to protect against deceptive hidden costs. Rising balance transfer fees equate to higher effective rates.

• Apply total monthly payment to the balance with the highest rate.

• Penalty rate should be no more than seven percentage points above the non-penalty rate.

• Consolidate all maintenance fees, including annual access membership fees, into a single annual fee so that pricing is clear and easy to understand and compare.

• Remove mandatory binding arbitration clause.

Related:

• Many Credit Card Issuers Not Providing Full Disclosure on Penalty Rates
• Credit Card Changes in the First Half of 2010
• Federal Reserve Announces New Credit Card Protections
• Clarifying Interest Rate Changes Allowed with the CARD Act

Running your own business takes energy, organization – and a whole lot of money. Using a credit card for funding a small business can provide you with the resources you need when you don’t have the cash. However, due to small business credit cards’ exclusion from protection under the Credit CARD Act, you should think twice before carrying a balance on your small business credit card.

Even though it’s called a business credit card, the business owner is still personally responsible for the debt incurred at the end of the day. Since the owner is assuming this risk already, it makes sense to use a personal credit card for purposes such as funding or any other expense that you can’t pay back right away. This way the Credit CARD Act will provide the protection you need when carrying a balance.

A personal credit card offers much more predictability and stability for someone managing a business. For instance, the credit card company cannot increase the interest rate on existing balances and cannot apply the penalty APR until you are 60 days delinquent. The Credit CARD Act also enforces a payment allocation system for personal cards that is more advantageous for the cardholder. Credit card companies such as Capital One, Chase, Bank of America, and Citibank do not have to adhere to such restrictions when it comes to business credit cards.

Don’t get me wrong, a business credit card offers its own advantages and can play an important role in financing your expenses. For example, a business owner can set individual credit limits for each employee, which makes managing and tracking expenses much more efficient. Business credit cards also often offer higher credit lines, making it a more effective spending tool when multiple people are using the same account.

These factors make business credit cards an excellent choice – even better than personal credit cards – when used as a charge card. In other words, it is my recommendation that you use a business credit card for making company purchases, but only those purchases that you plan to pay back in full at the end of each month.

When making decisions around financing your business, you should take advantage of what both business and personal credit cards have to offer. The combination of the two will give you the most purchasing power while allowing you to fund your business without being subjected to the whim of credit card companies.

Related:

• Many Credit Card Issuers Not Providing Full Disclosure on Penalty Rates
• Credit Card Changes in the First Half of 2010
• Study Analyzes Changes in Credit Card Industry Since CARD Act
• Is Your Credit Card Company Upfront with its Customers?

The Pew Health Group Study (entitled “Two Steps Forward: After the Card Act, Credit Cards are Safer and More Transparent–But Challenges Remain”) released last week analyzed and compared the credit card marketplace before and after the CARD Act. The study reviewed credit cards offered online by the twelve largest banks and twelve largest credit unions–nearly 450 credit card offers.

The study shows that issuers have taken two steps forward in most areas, but also taken a step back with penalty rates. Some issuers no longer provide full disclosure of the terms of the penalty rate, or fail to correctly follow disclosure requirements required by the new Federal Reserve rules.

Before the CARD Act, credit card issuers clearly disclosed the penalty rate and the terms in the application process because this gave t hem the legal right to raise rates immediately and without notice as soon as the accounts became past due or cardholders went over their credit limit. This full disclosure was in their best interest because increasing rates generated more revenue.

After the CARD Act, the Federal Reserve added new rules for the penalty rate. While these rules benefit cardholders, they have also allowed issuers to withhold important pricing information which can leave cardholders uninformed about the complete conditions of their credit card.

Here are the new rules for applying penalty rates:

• Issuers are permitted to apply an increased rate to an existing balance when an account becomes more than 60 days delinquent. Issuers can also increase rates to the penalty rate on new transactions any time after the account has been open for one year.

• The cardholder must be given at least a 45-day notice before the rate is increased.

• According to the Federal Reserve Board rules, “the credit card issuers must disclose if the rate increase is due to the consumer’s failure to make a minimum periodic payment within 60 days from the due date for that payment. In those circumstances, the notice must state the reason for the increase and disclose that the increase will cease to apply if the creditor receives six consecutive required minimum periodic payments on or before the payment due date, beginning with the first payment due following the effective date of the increase.”

• The rules also say that “the notice also must state the circumstances under which the increased rate will cease to apply to the consumer’s account or, if applicable, that the increased rate will remain in effect for a potentially indefinite time period. In addition, the notice must include a statement indicating to which balances the delinquency or default rate or penalty rate will be applied, and, if applicable, a description of any balances to which the current rate will continue to apply as of the effective date of the rate increase, unless a consumer fails to make a minimum periodic payment within 60 days from the due date for that payment.”

“The cardholder must make six on-time monthly payments that start at the time of the penalty, or the issuer can charge the penalty rate indefinitely,” says Bill Hardekopf, CEO of LowCards.com and author of The Credit Card Guidebook.

Starting on August 22, 2010, issuers must perform a review of accounts that receive a rate increase. The review should determine if changes in key factors (such as cardholder credit risk and market conditions) give reasons to reduce the rate.

The application of these rules varies widely by credit card company. Here is the terminology used by the six major issuers when describing this penalty rate:

• Chase: If an APR is increased for any of these reasons (late payment, exceed credit limit, payment returned) the Penalty APR will apply indefinitely to future transactions. If we do not receive any Minimum Payment within 60 days of the date and time due, the Penalty APR will apply to all outstanding balances and future transactions on your Account; but if we receive six consecutive Minimum Payments when due, beginning immediately after the increase, the Penalty APR will stop being applied to transactions that occurred prior to or within 14 days after we provided you notice about the APR increase. (Penalty APR is 29.99%)

• American Express: If the Penalty APR is applied for any of these reasons (late payments, returned payments), it will apply for at least 12 billing periods in a row. It will continue to apply until after you have made timely payments, with no returned payments, for 12 billing periods in a row. (Penalty APR is 27.24%)

• Citi: If your APR is increased for either of these reasions (late payment, returned payment), the Penalty APR will no longer apply to existing balances on your account if you make the next six consecutive minimum payments when due. However, the Penalty APR may apply to new transactions indefinitely. (Penalty APR is up to 29.99%)

• Discover: If your APRs for new transactions are increased for a late payment, the Penalty APRs may apply indefinitely.

  (Editor’s Note: Discover seems to have the most reasonable penalty rate; it is five percentage points above the non-penalty rate. The Penalty APR is between 16.99% and 25.99% based on your creditworthiness and other factors.)

• Capital One: If APRs are increased for a payment that is more than 60 days late, the Penalty APR will apply indefinitely unless you make the next six consecutive minimum payments on time following the rate increase. (Penalty APR is 29.4%)

• Bank of America: If this account becomes 60 days or more past due, we may amend the terms of the Agreement to increase all interest rates, including interest rates on existing promotional rate balances.

According to the Pew report, altogether one in five penalty disclosures mentioned the right way to “cure” (return to the original, non-penalty interest rate). Only three of ten banks that use penalty rates mentioned the legally mandated cure periods.

The Pew report points out that some issuers (Bank of America) no longer provide the rate or terms for the penalty fee, only including a sentence in the fine print that states they reserve the right to impose a penalty fee. The report argues that this undermines regulations. Cardholders are entitled to know the pricing of their account, the penalty rates that could apply, and how high those rates could be.

The Pew Health Group recommends that the Federal Reserve bank regulators should ensure full and reliable disclosure of credit card penalty rates because “full disclosure is critical to the success of this policy.” Regulators should also enforce the existing rules in Regulation Z to make sure the penalty rate and the terms are disclosed in advance.

It also suggests that he penalty rate should be no higher than 7% of the regular rate.

Related:

• Study Analyzes Changes in Credit Card Industry Since CARD Act
• Credit Card Changes in the First Half of 2010
• Personal Credit Cards: Better for Your Business?
• Credit Card Debt and Delinquencies Fall Again

You can tell when someone goes to the grocery store while they’re starving; their shopping cart is loaded up with things they would love to be eating right that moment and if they’re hungry enough, that means pretty much everything. It has always simply been known that you don’t go to the grocery store hungry, but now there’s some scientific evidence to back that theory up.

Researchers at the University College London recently conducted a study where they put participants on different diets that influenced their metabolism. They then gave the participants options of playing various lotteries, some riskier than others. The researchers found that study participants were more likely to choose riskier options when they were hungry than when they weren’t. As soon as the researchers fed the participants, they began making more conscious and money-saving decisions.

Simply put, eat before you head out to the grocery store. Being hungry and trying to do pretty much anything doesn’t work as well as it would if you were operating on a full stomach; when you’re hungry you are irritable and when your stomach is full, you are a lot more level-headed. You could end up saving quite a bit at the grocery store, or when running any other errands you have, just by heading out of the house right after you eat breakfast or lunch.

Related:

• Get Money-Saving Offers for Items You’re Already Buying with Offermatic
• Simple Tips on Saving Money
• Recent Graduates Need Financial Advice
• Clarifying Interest Rate Changes Allowed with the CARD Act

Expect that number to grow as households continue to struggle through unemployment, credit card debt and foreclosures.

How Did We Get Here?

People don’t get into financial problems overnight. It took years of overspending, overlending, and poor regulating to create these problems. Lenders, and even the government, share some of the blame.

The government helped open the door for higher rates and fees in 1978. At that time, a majority of states had usury laws that capped interest rates on credit cards, usually at about 18%. That year, a ruling in Marquette National Bank vs. First of Omaha Service Corp held that national banks could charge credit card customers the highest interest rate allowed in the bank’s home state, instead of the customer’s home state. Taking advantage of this new ruling, many major banks moved to states such as South Dakota and Delaware since those states had no usury limits on interest rates and they could even export these rates to the other states.

In the early 1990′s, credit card issuers advanced beyond one-rate-fits-all offers and used credit scores and financial data to develop pricing and credit strategies. They set rates and limits based on computer assessments of an individual’s risk of default–the higher the risk, the higher the interest rate. This new data led to innovations such as increased credit limits and decreased minimum payments.

“These new, advanced risk assessments created new opportunities to lend to people who were a higher risk including people who should not have had credit. The new loans and higher credit limits were profitable for banks, but made the problem worse for the borrowers,” says Bill Hardekopf, CEO of LowCards.com and author of The Credit Card Guidebook.

In 1996, a Supreme Court ruling (Smiley vs. Citibank) ruled that fees should be included with the balance, and could determined by what the bank’s home state would allow. This ruling allowed issuers to charge more for fees as well as create new fees, such as over-the-limit fees. This ruling also opened the door for punitive practices like the Universal Default clause.

The days of loose lending for mortgages and credit cards, high rates and fees, second mortgages and borrowing beyond more than you could repay couldn’t last forever. The crash occurred in 2008 and caused tremendous losses for borrowers and lenders.

Banks and credit card issuers responded by slamming the brakes on lending. They cut credit lines and increased interest rates. Reduced credit limits hurt borrowers’ credit scores, and higher interest rates made it harder for them to pay down their balance.

Credit card issuers reacted strongly and quickly to protect themselves, but 25% of Americans are practically banned from inexpensive credit at the time they need it. The tightened lending policies shuts off these consumers from many financial options.

Actions Causing Lower Credit Scores

• Debt-to-payment ratio increases. This happens when you add to your outstanding balance, moving you closer to the credit limit; or when the issuer reduces your credit limit. A higher debt-to-credit ratio is considered a higher risk and can result in a drop of about 20 points

• Late payment. Some credit experts believe a few late payments on a credit card or other loans can lower your score by as much as 100 points if you have a great score, or 80 points for someone with an average score. Making payments on time is a big step toward improving your credit score.

• Defaulting on a loan or a foreclosure may lower a score by as much as 200 points.

Here’s the basic breakdown of how long different types of negative information will remain on your credit report:

Late payments: seven years.

Bankruptcies: seven years (Chapter 13) or ten years (Chapter 7).

Foreclosures: seven years.

Collections: Approximately seven years, depending on the age of the debt being collected.

Public Record: Generally seven years, although unpaid tax liens can remain indefinitely.

The good news is that the older the negative item, the less impact it will have on your FICO score. A collection that is five years old will hurt much less than a collection that is five months old.

The Pain

A subprime credit score is just a number. It doesn’t tell the individual story or reasons that a person gets into financial trouble. It doesn’t tell of the stress caused by higher loan rates or increased insurance premiums because your credit score says you are a high risk. But lenders, insurers and even employers will make judgments and decisions about you based on that number.

Car loans, mortgages, credit card loans–all of these cost more when you have a subprime credit score. This puts additional strain on a budget that is already breaking.

“When consumers have made poor financial choices and have damaged their credit score, they are on their own to fix it. There is no federal bailout or TARP fund that will rescue them,” says Hardekopf.

Ways to Raise Your Credit Score

It’s important to note that raising your FICO credit score is a bit like losing weight: it takes time and there is no quick fix. Here are a few tips for raising your credit score:

• Get a copy of your credit report from all three credit agencies. U.S. residents are entitled to one free copy of their credit report from each credit reporting agency once every 12 months. This information is found by calling 1-877-322-8228 or at AnnualCreditReport.com. If any of the information on a report is incorrect, contact the agency to correct it. Incorrect information should be corrected or removed within ten to thirty days, and doing so may give your score a quick boost. Your credit score is usually not shown on the free annual credit report. There are paid options that will allow you to see your credit score.

• Pay your bills on time. This is the single most important factor in your credit score. Even if you only pay the minimum, pay your bills on time. Late and missed payments can quickly lower your credit score.

• Pay off your debt. High balances and high debt ratios drag down credit scores. Your debt balance should be less than 35% of your available credit. If you have a good payment history, contact your creditors and ask for lower interest rates. Then use what you saved in interest to pay down your balances.

• Build a long-term relationship with the accounts you have. A long history of good payments on a car loan, a mortgage, or a credit card increases your credit score. Keep older credit card accounts open, even if you are not using them, because you are rewarded for a long, positive credit history. If you review your credit report and discover that you have many accounts that you no longer use, close the newest ones first.

• Limit your credit applications. Too many new accounts can lower your credit score. Each time you apply for a loan, the application shows up on your credit report. A significant increase in inquiries signals that you are desperate for money and are a credit risk. The exception is shopping for a mortgage or a car loan, as multiple inquiries for the same purpose in a reasonable period are considered a single inquiry.

• Get a checking and a savings account.

• Do not co-sign for a loan for someone else. This shows up on your credit report, and a missed payment or a maxed out credit card by the other person will affect your credit score.

• If you can’t pay your bills, contact your creditor or see a legitimate credit counselor. The National Foundation for Credit Counselors, a not-for-profit organization, can give counseling and help you put together a debt management plan.

New Legal Protections

Under the financial reform bill passed last week, there is now a law dictating that a lender is legally responsible for assessing a borrower’s ability to pay. Lenders will have to verify borrower income to make a loan.

Additional consumer protections and regulations include: free credit scores for those denied credit or offered only higher rates because of negatives on their credit report; brokers can not receive incentives to steer homebuyers into pricier loans; institutions that lend irresponsibly will be penalized

Related:

• Credit Card Debt and Delinquencies Fall Again
• Recent Graduates Need Financial Advice
• Credit Card Debt Continues to Fall
• Financially Preparing Your Child for College

Via DailyWorth I discovered Offermatic, a website that tracks your purchases through your credit or debit cards and then gives you money-saving offers that are based on your purchasing history. The offers that you will receive through Offermatic are usually between 40% and 90% off. In addition to the offers, if you use your card at least 20 times a month with at least $1,000 in total charges, you will receive $1.25. If you register four cards and keep all cards up to this pace, you have the ability to earn $15 per year just by having Offermatic track your purchases.

When I first saw Offermatic’s website, I was honestly a little skeptical about the idea of putting my debit and credit card numbers into it. While the site claims that everything is safe and secure (not to mention free!), it takes a pretty impressive website design-wise to make me feel more secure. That could be the web designer and developer inside me, and I’ve been told on more than one occasion that I’m a snob when it comes to wanting to see clean, minimal websites rather than dull colors that don’t work together, or even worse, crazy vibrant colors that make my eyes want to bulge out of my head. Offermatic’s website is pretty… well, generic. It’s green, but not a particularly aesthetically-pleasing green and it could stand to be a bit cleaned up.

TechCrunch comes in to save Offermatic’s reputation, however. Turns out you can really trust Offermatic with your private information, TechCrunch tells those curious about the financial service that the back end of Offermatic is run by Yodlee, a service for core banking solutions and financial applications. Yodlee also helps those who are looking to monetize online banking by lowering costs, helping banks acquire, integrate and retain customers and they also increase revenue opportunities. So rest assured, your financial information, when entered into Offermatic, is in the secure hands of Yodlee.

Offermatic is very similar to the money tracker service Mint, some even say that they have downright copied from Mint, but people are still getting pretty excited over the ability to obtain some pretty awesome offers based on their daily purchase history. All things considered, it couldn’t hurt to give Offermatic a whirl.

Related:

• Simple Tips on Saving Money
• Spend Less at the Grocery Store — Eat Before You Shop
• Recent Graduates Need Financial Advice
• Study Analyzes Changes in Credit Card Industry Since CARD Act

Everyone has different reasons for deciding to work from home, but when you decide to work from home as a freelancer, getting started could end up being what makes you decide to retreat to the formal workforce again.

When I first started working from home, I know that I would not have been able to stay afloat for more than two months, never mind four years, without the help of some truly amazing friends. I was lucky, but a lot of women aren’t so lucky when it comes to getting up and started as a home-based entrepreneur.

So where do you go to get your first opportunities? When you finish your first job, what’s next, where do you go from there and where do you get more freelance gigs?

5 Minutes for Mom, a tremendously popular community for moms, recently added a job board to the website. The job board pulls in project listings from all of the top job board and websites for freelancers to find opportunities to help moms find real work at home opportunities. The opportunities the job board pulls up are from sites including Elance, Freelancer.com, ScriptLance.com, among others.

After looking through the job board I found that most of the opportunities look legitimate and could very well end up being worthwhile opportunities to keep your work day full and exciting. There are a few of them that look more than a little suspicious, but not too many and I think they’re pretty easy to spot so you won’t be wasting your time. What I really like about this site is that instead of going to all of the freelance sites you can find individually and searching through countless categories, this job board pulls in all of the relevant job opportunities and makes them easy to find in one place.

If you’re looking for legitimate work at home opportunities, you should definitely check out the 5 Minutes for Mom Job Board.

Related:

• Personal Credit Cards: Better for Your Business?
• “Normal” Schedules and Mojo — One Does Not Always Follow the Other
• Book Review: Tribes by Seth Godin
• Simple Things You Can Do to Improve Your Resume

The figures proving these new statistics came from FICO, Inc. whose recent analysis is based on consumer credit reports from April up to recently. What is deeply troubling about FICO’s findings is that historically, 25.5 million people fell below the 599 credit score and more are likely to join those in their lowest credit score categories.

On a mildly positive note, the number of people who have a top credit score of 800 or above has increased recently. This can only be attributed to people who have cut spending and paid down debt after consolidating and adjusting to the waves of the recession. There are currently 17.9& of Americans with a credit score of 800 or above.

Now is the best time to begin paying off debt, saving money and doing whatever you can to raise your credit score. Because of the new lending standards being applied by banks, you may not be getting much wiggle room in the world of credit for quite a while.

Related:

• Tips for Consumers with Bad Credit Scores
• Financially Preparing Your Child for College
• Credit Card Changes in the First Half of 2010
• Recent Graduates Need Financial Advice

Hello, mistake! A small amount of money here, another small amount there and repeat a few times does add up to a substantial amount of money. It’s always good to keep that in mind. When you have a small amount of money that isn’t spent and doesn’t absolutely need to be spent, put that money away and the next time you have that money again, put it away. After a little while, it will add up.

The first step to saving money however, is to make saving a priority. Do not view saving money as an elective, as something you can do or not do and it won’t really matter either way. You should begin budgeting accordingly to be able to put something away every month. If you’re working towards having the money to go on a vacation or to move into a new apartment or put a deposit down on a house, you can even set up a separate savings account and add to it as you can every month.

Managing your money is something that can be very difficult. It’s very easy for money to disappear. I cannot tell you the amount of times I’ve went into my checking account only to find it a lot lower than I had expected it to be and wondering “But where did it go!?” Money management software like Mint.com lets you see all of your accounts in one place, it automatically downloads and categorizes your transactions and it allows you to set a budget and create a plan to reach your goals.

If you go out to eat a lot, stop going out so much. Splurging is the one thing that will off-set all of your goals. Don’t swear off splurging of all kinds, just give yourself one or two things that always make you happy and you don’t classify as frivolous or that you didn’t need to spend money on it.

Have you been trying to save money for what seems like an eternity? Don’t be afraid to give yourself a deadline. Set an amount of money you will save every month and make a realistic deadline for yourself to reach your goal.

Related:

• Get Money-Saving Offers for Items You’re Already Buying with Offermatic
• Spend Less at the Grocery Store — Eat Before You Shop
• Recent Graduates Need Financial Advice
• Tips for Consumers with Bad Credit Scores

“Despite regulations, credit card issuers are still increasing rates and fees in 2010, but less dramatically than last year,” says Bill Hardekopf, CEO of LowCards.com and author of The Credit Card Guidebook.

Here are some of the changes that banks and credit card issuers have made during the first half of 2010.

Rate Increases
Compared to 2009, this has been a slow year for rate increases. Issuers increased rates dramatically in 2009 while it was still easy to raise rates, and most issuers have not made wide-ranging rate increases since then. But rates have continued to increase during 2010. Here are some recent changes:

• Capital One increased the rate on its Classic Platinum credit card from 16.9% to 19.8% and on the No Hassle Cash Rewards card from 17.9% to 19.8%.

• Citi increased its Cash Advance APR from 21.99% to 25.24%. (February 2010)

Overall, rates are still rising. Based on the 1000+ cards in the LowCards.com Complete Credit Card Index, the average advertised APR for credit cards this week is 13.64%. Six months ago, the average was 13.25%. One year ago, the average was 12.10%.

Higher Fees

• Discover increased the cash advance fee from 3% with a $5 minimum to 5% with a $10 minimum. (January 2010)

• Bank of America added an annual fee for a limited group of cardholders that started in February. The fee ranges from $29 to $99 and is applied to the selected accounts based on risk and profitability.

• Citi increased its balance transfer fee from 3% to 4%. (June 2010) It also increased the cash advance fee increased from 3% to 5% with a minimum fee of $10.

• Citi added a $60 annual fee to some credit card accounts, effective April 1, 2010. Make $2,400 in purchases each year and the annual fee will be credited back to your account.

Banks are already preparing new fees on basic banking services as they try to replace revenue lost to recent regulatory rules. HSBC and Wells Fargo ended their free checking accounts. Bank of America is testing account fees and options that will be added later this year. Other banks could join in.

Some Niche Cards and Popular Offers are Discontinued

• Credit card issuers have discontinued some of the specialized cards that were targeted to consumers during a time of free-flowing credit. Chase closed the Starbucks Duetto Visa and credit card deals with Avon Products, Inc., The Detroit Pistons, The Orlando Magic and the New Jersey Devils.

• Bank of America also reduced the number of niche cards. The Wall Street Journal reported that Bank of America currently has about 4,400 affinity cards, down from 5,000. These are typically offered through college alumni associations and charities.

• The Wall Street Journal also reported that Chase now has about 110 co-branded credit cards, down from more than 200. Issuers seem to be eliminating these cards to cut costs and reduce their risk of delinquencies by card holders.

• Charles Schwab no longer accepts new applications for its acclaimed cash rebate credit card that was recommended by many consumer advocates and financial writers. The rebate was 2%, one of the most generous cash rebates available, and it was deposited into a brokerage account.

• The National Football League is moving its branded credit card business from Bank of America to British banker Barclays. This is forcing customers to scramble to spend reward points before they expire next month. They will have to apply for the new card to continue earning NFL rewards.

Expanding Introductory Offers
Some credit card issuers are increasing intro offers back to 12 and even 18 months. This is a sign that issuers are competing again for new customers. Until recently, issuers had slashed some intro rates periods to only three or six months, depending on the credit score.

• For some applicants, Discover increased the intro period for balance transfer increases from 12 months to 15 months for Discover More. (July 2010)

• Citi expanded the intro period to 18 months for all balance transfers to Citi Platinum Select. It was previously a tier of 18, 12, or 7 months.

• Iberia Bank Visa Select Card expanded the intro rate on purchases to 0% for 12 months (formerly 7.5% for 12 months). It lowered the intro rate to 1.99% for balance transfers during the first 12 billing cycles (formerly 7.5% for 12 months).

New Offers and Targeted Incentives to Encourage Spending

• Chase and Continental Airlines launched the new Continental Airlines OnePass Plus Card and added new features and benefits to the existing Continental Airlines Presidential Plus Card.

• Chase revised Freedom Rewards. It now offers a 5% cash-back rotating rewards promotion on its Chase Freedom card. However, it requires cardholders to register every three months in order to continue earning that level of cash back on spending categories that change every three months.

• Delta and Continental now waive checked bag fees for at least one bag if the ticket is purchased with their affiliated credit card.

• American Express offers selected cardholders a $30 statement credit for shopping at six of the designated retailers by August 30, 2010.

More Credit Card Offers in the Mail

During the first quarter of 2010, US households received 481.3 million credit card offers, a 29% increase from the 372.4 million offers mailed during the same period a year ago, according to the latest study by Synovate Mail Monitor. Some credit card issuers, such as Capital One and HSBC, more than doubled their mail offers during this quarter versus the prior quarter.

The study also showed direct mail offers are also becoming more widespread for soliciting new debt as more issuers offer attractive introductory interest rates. 65% of the total offers mailed in the first quarter had an introductory purchase APR compared to just 58% in the final quarter of 2009.

Consumers with good or excellent credit scores seem to be receiving the majority of these direct mail pieces.

“The consumers with above average credit scores are the ones that most every issuer wants,” says Hardekopf. “They pose less risk.”

Related:

• Many Credit Card Issuers Not Providing Full Disclosure on Penalty Rates
• Clarifying Interest Rate Changes Allowed with the CARD Act
• Credit Card Debt and Delinquencies Fall Again
• Study Analyzes Changes in Credit Card Industry Since CARD Act

In addition, the latest Consumer Credit report released today from the Federal Reserve showed that revolving credit, which is primarily credit card debt, fell in May for the 20th consecutive month. It declined at an annual rate of 10.5%, and has decreased an impressive $145 billion since October of 2008, from $976.1 billion to $830.8 billion.

A drop in credit card delinquencies should be a good sign of a healthy recovery, indicating that more people are employed and have money to pay down their debt. Employment numbers have historically been a gauge for credit card delinquencies. But that doesn’t seem to be the case now. The economy lost jobs in June for the first time this year. Unemployment remains high at 9.5%.

What could be causing this drop in delinquencies and overall credit card debt? It appears that both issuers and consumers have taken steps to help decrease both these figures.

Issuer Changes
Credit card issuers have taken a number of steps to decrease their financial risk:

• Lowered the credit limits on millions of credit card accounts, cutting the amount of consumers can charge on their accounts.
• Closed credit card accounts due to inactivity.
• Written off a number of their uncollectible accounts.
• Approved fewer risky credit card applications. If consumers have fair or poor credit scores, it is now very tough for them to get approved on a new credit card account.

“Banks reacted strongly to the credit crisis and slammed the door on subprime loans. Wells Fargo just announced that it is shutting its subprime lending unit including mortgages, credit cards and auto loans,” says Bill Hardekopf, CEO of LowCards.com and author of The Credit Card Guidebook. “This is bad news for households that are struggling to pay the bills. Subprime loan options are shrinking and an average or low credit score now receives interest rates and fees that no one can afford.”

Consumer Changes
Consumers are also reducing their credit card debt. Higher APRs and fees may have pushed some cardholders to switch to debit card and cash transactions.

Nearly 42% of consumers are using more cash than they were a year ago, according to a survey by the consulting firm Market Strategies International. A study by BIG Research in January showed that 20.5% of the respondents said they would pay with cash more often, up from 23.0% a year earlier.

Debit card usage is increasing. According to their annual reports, MasterCard’s debit card usage in this country increased 10.5% in the fourth quarter of 2009 versus year ago levels, while Visa reported a 17% increase.

Delinquencies Lower for All Issuers in 2010
The lower delinquencies in May represent the fifth straight month of improvement for nearly every major credit card issuer. Here is a look at the monthly delinquencies for the top credit card issuers:

Capital One delinquencies by month:
Jan   5.80%
Feb   5.51
Mar   5.30
Apr   5.07
May   4.80

Discover delinquencies by month:
Jan   5.55%
Feb   5.50
Mar   5.39
Apr   5.20
May   4.95

Chase delinquencies by month:
Jan   4.75%
Feb   4.67
Mar   4.51
Apr   4.40
May   4.22

Bank of America delinquencies by month:
Jan   7.35%
Feb   7.23
Mar   7.07
Apr   6.73
May   6.39

American Express delinquencies by month:
Jan   3.60%
Feb   3.60
Mar   3.30
Apr   3.10
May   2.90

Citi delinquencies by month:
Jan   5.75%
Feb   5.94
Mar   6.06
Apr   5.85
May   5.59

Related:

• Many Credit Card Issuers Not Providing Full Disclosure on Penalty Rates
• Credit Card Changes in the First Half of 2010
• Credit Card Debt Continues to Fall
• Tips for Consumers with Bad Credit Scores

You might not be making as much progress as you think when you send in your credit card payment each month. While every payment helps, what you don’t know about payment allocation could be costing you money.

The Credit CARD Act, effective February of this year, addressed many of the issues that allowed credit card companies to take advantage of their customers. However, it left a loophole in payment allocation – the way your payments are applied to your credit card balance each month – that still leaves some wiggle room for the credit card companies.

Unfair payment allocation affects you if you carry balances with different APRs on the same credit card (e.g. a balance from new purchases and a balance from a balance transfer). Before the CARD Act, credit card companies used your payments to pay down your balance with the lowest APR first. Paying off the lowest APR balance first is advantageous for the credit card companies because it allows them to ‘trap’ the balance with the highest APR and continue to charge you the most interest for the longest period of time.

Unfortunately, not much has changed in this area. The CARD Act addressed the problems with payment allocation by stating that credit card companies have to apply your credit card payments above the minimum to the highest APR balance first.

While this is an improvement, the phrase “above the minimum” ensures that a portion of everyone’s credit card payment is applied in an unfair manner. In addition, 29 percent of Americans have only been able to pay the minimum in the past 12 months, according to a FINRA national survey. For this segment of consumers – the people who need the most help in paying down their debt – there is absolutely no benefit.

Unless you pay well above the minimum payment each month, you essentially have to treat the rules regarding payment allocation as though nothing has changed. Therefore, in order to pay down your most expensive debt as fast as possible, it is important to avoid mixing and matching your balances on one credit card. This is the only way to ensure that you have full control over how you pay down your debt.

Take this example: let’s say you open a credit card account and decide to transfer a balance of $10,000 onto that card because it offers a zero percent APR on balance transfers. Then let’s say you use that same card to make $1,000 worth of new purchases. The interest rate for new purchases on your credit card is 15 percent.

If you are only paying the minimum each month, the credit card company will apply your payments to the balance with the lowest APR first – in this case the $10,000 in balance transfer debt. You will not be able to pay down the $1,000 of debt charging you 15 percent interest until you have paid off the $10,000 of balance transfer debt in its entirety. In order to control how your payments are applied, in this example, you should have one credit card for the $10,000 of balance transfer debt and a separate credit card to make new purchases.

The new rules from the CARD Act have made big strides regarding credit card companies’ openness with their customers and provided guards against unfair interest rate hikes and fees. These changes are good for you, but have undoubtedly taken a bite out of credit card companies’ profits. Taking advantage of the payment allocation loophole is a way in which credit card companies can try to make up for lost revenue, so you should be aware of it and take steps to avoid this pitfall.

Related:

• Is Your Credit Card Company Upfront with its Customers?
• Personal Credit Cards: Better for Your Business?
• Clarifying Interest Rate Changes Allowed with the CARD Act
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The change started July 1 for new customers and takes effect on August 13 for existing customers. The rules do not cover checks or automatic bill payments–banks can still authorize and pay overdrafts for these transactions at their discretion and charge a fee.

An overdraft occurs when one does not have enough money in a checking account to pay for a transaction, but it is paid by the bank anyway. This service is a loan from the bank and it isn’t free. Banks charge a non-sufficient funds paid item fee (NSF) that is typically $30-$40. A fee is charged for each transaction paid in this manner.

Before the new rules, most banks automatically added courtesy overdraft protection to checking accounts with details and fees in the fine print. Some customers didn’t realize the high price of the fee until they incurred the charge.

Now that the rules are in effect, banks are aggressively encouraging their customers to opt-in and marketing the benefits of overdraft protection. This is revenue banks do not want to lose. In 2009, banks collected almost $38.5 billion in insufficient funds and overdraft fees, Moebs Services estimates.

“Banks have made a lot of money by allowing customers to spend or withdraw money that was not in their account. An overdrawn account can happen quickly with multiple transactions, even if they are small amounts,” says Bill Hardekopf of LowCards.com and author of The Credit Card Guidebook. “Sometimes, overdrafts can be caused by a number of things that are not in the customer’s control: the timing of cash flow or payments, the delayed posting of a deposit, or the banks paying the biggest withdrawals first. A $5 purchase can trigger a $30-$40 fee. Since the cashier doesn’t tell you it’s an overdraft, you don’t know there is a problem until it is too late.”

In response to new regulations, Bank of America and Citi no longer allow debit card overdrafts. Bank of America customers can still sign up for a formal program to cover debit card overdrafts.

How to Opt Out of Overdraft Protection (or Opt In)
Many banks are currently sending out informational letters to customers that explain overdraft protection and how to enroll in the service. A consumer can mail in the enrollment form (the letter may include a postage-paid envelope), or sign up by phone, in person at your local branch or online. If you do not choose an option by August 13, you will automatically be opted out.

Opting out means that you do not want your bank to authorize and pay for debit card and ATM transactions when it appears there is not enough money in your account to cover the transaction. This may create a situation where your purchase is declined.

Opting in means that you do want your bank to cover debit and ATM transactions where they may not be enough money in your account to cover the transaction. As a result, you will be charged a NSF paid item fee.

Read the Fine Print
Carefully read the notice that you receive from your bank. It should reveal the true costs and limits of overdraft protection.

• The cost of overdraft may not end with the NSF paid-item fee. If your account remains overdrawn, you can receive additional fees. For example, if your account is overdrawn and continues with a negative balance for ten consecutive days, BBVA Compass charges a $25 extended overdraft fee. If the ending daily balance remains negative for 20 calendar days, another $25 extended overdraft fee will be charged. The BBVA Compass limits NSF fees to six per calendar day. The total of the negative balances and all fees and charges is due immediately.

• Transactions aren’t processed in the order they occur. Banks can charge the items to your account in any order. They admit in the fine print that this can cause the available balance to be insufficient to pay one of more other items that otherwise could have been paid. This means the order the charges are paid can affect the total amount of overdraft and non-sufficient funds fees.

• Even if you choose to opt-in, the payment of an item is discretionary. Banks will choose which transactions to cover. You can’t count on having overdraft protection when you need it.

If you opt in, you can cancel at any time. If you do not opt in, you can do so later.

Alternatives to a Standard Overdraft
Most banks offer cheaper alternatives to standard overdraft protection. These include a link to your savings account, a credit card, or a line of credit that will cover overdrawn transactions. There is still a fee each time you overdraw your account and your bank performs a transfer but it is typically $5-$10, much less than the standard overdraft fee. You must contact your bank to set up this alternative service, since it is not part of the opt in selection.

“This is a good time to assess how you monitor your checking account. Set up a low balance alert that will notify you when your account is low. Online banking can help avoid overdraft situations and help keep up with your account in real time,” says Hardekopf.

Related:

• New Checking Account Overdraft Rules Now in Effect
• Credit Card Debt and Delinquencies Fall Again
• Study Analyzes Changes in Credit Card Industry Since CARD Act
• Many Credit Card Issuers Not Providing Full Disclosure on Penalty Rates

For a little over a month now I have been making a conscious effort to be up during the day and to sleep during the night. You know, attempting to keep the same schedule as all of you normal people out there who work real jobs and keep real schedules. It has been difficult. You would think that if I just slept during the night then obviously I would be up during the day and able to work and get everything that I set out to do every day accomplished. I thought the same thing and I was wrong.

Sure, I’m up during the day, but I am not able to work. I end up sitting here all zombie-like, trying to force words to come to my brain and get my fingers to type the words into the computer and then suddenly I’d have some awesome stuff written. And you know what else? All of you people out there whose day job it is to develop Facebook games, I am not happy with you. Well, in a way I’m extremely happy with you, but my productivity is not happy with you. So while I am here during the day, sitting here trying to force the productivity to take place, I don’t manage to get much done and for the most part, I have come to the conclusion that I’m just insane. That has to be it! It is the only logical conclusion I can come to and I’m sure it’s the only logical conclusion that all of you out there reading this can come to. Anything else just doesn’t make sense, right? RIGHT.

When you work from home, as I do and have done for the past five years, it’s important to keep track of trends; especially when you work from home primarily as a blogger and freelance writer. I’m not talking about boyfriend jeans or mom jeans or whatever type of jeans people are making fun of this week. It’s important to keep track of what is being read and most importantly, when. Turns out that everything happens throughout the daylight hours. Imagine that! Emails get sent during the day, people expect replies to emails during the day, people write during the day making all of the important news and information spread like wildfire throughout the day, and even the majority of people read websites throughout the day. Everything happens during the day, so it would make sense to do business during the day.

Except for when your brain doesn’t function during the day, even with copious amounts of coffee. But I do get a great deal of work done, it’s just during the night time hours. Like right now. Right now at around 4am and all of my writerly mojo is flowing and everything is just great. The words come, the fingers type and before you know it, I have over 600 words typed into this little box.

But that right there–this, the entire point of this post, is where the writer and the professional blogger with the professional presence clash. A great deal of people find that they can only truly get great work done when the mood is right. For me, it has always been when everything is dark, quiet, and there is a stillness that cannot be mistaken with anything the daylight has to offer. But when the business world operates during the day and you operate at night, it’s easy to always feel like you are playing catch-up. Not just when it comes to returning emails and phone calls in a timely manner, but even when you’re working with strict deadlines or just deadlines you’ve placed on yourself.

So what do you do? Well, I’ll let you know when I’ve got it figured out. I do know one thing for certain though, and that is that just because you make the conscious effort to accomplish your to-do list every day does not necessarily you can make it happen–especially if your to-do list heavily relies on you being creative in any way whatsoever.

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