Remember that nasty feeling of embarrassment and irritation when you discover that you have left your wallet or purse at home, standing at a cash register with a full cart? Pretty soon this feeling might become a survival of times past. Your fingers will become a payment tool.

Indivos Corp. that develops computer hardware, software, computer programs and services, has been developing an electronic payment system that allows making money transactions through scanning a customer’s fingerprints, for the last 6 years. The system is already being tested by a select group of retailers.

Biometric systems that involve fingerprint identification, facial recognition and retina scans technologies are actively being implemented in the business and retail industry. The credit card market, of course, does not stand apart from the thing. SmartMetric Inc., for instance, is one of the companies that develop biometric security systems. It works on the design of a perfectly safe from fraud credit card. Biometric payment systems are expected to make the check-out process faster, easier and safer.

Every retailer is focused on attracting more customers, enlarging their sales volume and maximizing their profits thus. Under today’s keen completion in the retail industry, it is pretty hard to entice a new customer, as well as keep the old ones loyal. Offering special terms, services or perks – this is the way to win a customer’s attention. Speed, security and convenience that biometric payment systems offer are just the case.

Processing a transaction with the help of a token-less register takes even less time than it takes to swipe a credit card. The concept of such a payment system is really fantastic. Just imagine, you won’t have to take even a wallet with you when you go shopping. You can make purchases naked. You will not need anything but your fingers, eyes and face. You can go to a local grocery store even having left your rewards credit card at home and you will still save on groceries.

Though the security issue of biometric payment system is still challenged, this method of processing transactions is safer than using a regular plastic. Credit card scammers got so sophisticated in their fraudulent activities that nearly no credit card security system is safe enough to guarantee a cardholder 100% fraud protection. As for token-less payment system, your individual biometric features will protect you from identity theft and other criminal practices performed by crooks.

All required identification and credit information will be stored at a special computer database. And until someone has an access to this sort of information, there is a chance that someone can hack it.

Indivos Corp. is negotiating partnership with Visa and American Express. So, pretty soon credit consumers might enter the new age of payments processing.

Interest rate is one of the first-to-take-into-consideration credit card features when it comes to choosing a credit card. The two basic types of interest rate you can have on your plastic are fixed rate and variable rate.

A variable rate means that your interest can vary due to the Federal Reserve’s moves, changes on the credit card market or whenever your lender finds it appropriate. Here is how variable rate is calculated. The Fed sets the prime rate, which becomes a basic component of your interest that cannot be changed by a creditor. Then a credit card issuer adds a certain percentage to it, having checked or credit score and credit history. As a result you get, say, the prime rate plus 5%. Currently, the US prime rate is 5%. So, your rate will be 10%. And it can change with fluctuations of the prime rate.

As for fixed rate, it is initially set by a credit card company, irrespective of the prime rate. And you can come across numerous credit card offers that promise fixed rate for life of the account. However, it does not mean that your APR will remain unchanged. The lender reserves the right to change it in their reasonable discretion.

What can cause a sudden jump of your fixed interest?

Say, you have a credit card – no matter if it is a low APR one or a reward credit card – with a fixed rate of about 8%. You make even more than the payment due, and you are never late with your payments. Then, bang! The next time you get your credit card statement, you find out than your interest has dramatically soared to 21% or even higher.

This is how creditors can explain it to you. This might be a result of universal default clause. Credit companies occasionally check your other credit card accounts. If lenders find at least one credit card with delinquent payments, high balances, even if it is from another issuer, they can apply a universal default clause to you. Which means that your interest will be significantly raised, no matter if it is variable or fixed. Federal law does not prohibit credit card companies to change any of a customer’s credit card terms. All they have to do is just send you a 15 days’ notice.

Late payments, credit card balances increase, opening a number of new credit card accounts, going over your credit card limit – all this can trigger universal default.

The best way out of a situation like that is suspending the account with universal default. You will have to stop using the card until the balance is paid off, but you will keep your initial interest rate.

As you see, even a low interest credit card with fixed rate can turn into a bad headache for you, in case a credit provider includes the universal default clause in credit card agreement.

Next time you browse through credit card offers looking for a good one for you, do not rush to grab a card that comes with a fixed rate. You’d better find one that does not include a universal default clause. This, at times, can save you more money than a fixed rate that, in fact, can change any minute.

J. Bryant Vincent, CEO of AgiLight, unveiled the details of a new technological breakthrough in credit card industry at the Clean Energy Venture Summit in Austin, Texas. He made a top-line declaration that AgiLight is planning to implement LED (light-emitting diodes) technologies into credit cards.

What would you say if your credit card had a screen and you could store photos and music in your plastic? It can be hard to imagine, however living in the century of nanotechnologies you just stop get astonished at such innovations. But can a credit card with such options be really useful?

Nanotechnologies shrink electronic devices and materials that used to be large or even enormous to unbelievably small sizes. Minifying chips and imparting them a better packaging ability will make it possible to implement those chips into regular credit cards. J.B. Vincent has recently come up with a new idea of inserting light-emitting diodes into really thin films. This technology will allow engineers embed such films with chips into credit cards.

The same chips are planned to be inserted into mirrors or just pieces of glass. This type of gadget will enable its users to read the scrolled news headlines and stock quotes. This was also declared at the Clean Energy Venture Summit. And the company sticks to the “sky is the limit” principle. So they have numerous projects on accommodating their NanoFlex packaging technologies to other types of chips.

A strip of the NanoFlex packaging with lights on, reminds a sheet of paper by flexibility and thickness. If you turn the lights off, you will see a usual piece of correction ribbon.

AgiLight CEO said, they are planning to make this breakthrough in the credit card industry by the end of the year.

So, why would you want to have an LED display in your credit card? Fancy? Up-to-date? A new toy? Not just this. Actually, this innovation can become a new method of credit card fraud protection. This device would be able to flash up an individual dynamic security code, assigned to every single credit card with a nano-chip. Credit card details, such as credit card number, owner’s name and some others will no longer be of any use to credit card scammers. In order to complete any transaction the fraudsters will need the physical card.

The best thing about these new technologies is that they are not going to be positioned as a special privilege for excellent and good credit card holders. People whose credit allows them to qualify for only poor credit card offers will also have a chance to enjoy the technical innovation.

How does it feel to have fair credit? Is it a premonition of dropping down to demonic bad credit or an anticipation of becoming a rightful owner of angelic good credit? To tell you the truth, I am an experienced possessor of fair credit in the past. And to me it was like riding a rollercoaster. One moment you slowly crawl up and score the cherished points and good credit seems to be within your reach. Then bang! You make a little financial misstep and your credit roller coaster carriage rushes down in a free fall.
Actually, it is not even about how it feels to be a fair credit owner. What really matters is whether this type of credit score satisfies you, or you want more.
Fair credit is much better than bad credit, that is clear. You can find a fair credit card with pretty favorable terms and tempting options that will be quite competitive and will help you to gradually improve your credit rating. But if you are an aggressive go-getter, boosting your credit score and entering the breeding strain of good credit owners, nothing is impossible. It is all in your hands.
I turned out to be the second type and now I qualify for good credit cards with really beneficial features and terms, and I’m happy about that. I will tell you about how I managed to raise my credit, you can try following my advice and see what happens.
First of all, let’s specify what exactly bad, fair and good credit is. According to the FICO credit scoring system, bad credit starts with 350 and turns into a fair credit as soon as you reach 620. 40 more points and you can get approved for good credit cards. You see, scoring 40 points is actually much easier than score 270.
So, here is what I did in order to make my credit rating go up. Just 3 steps.
• First I removed old negative items and errors from my credit report. For that I just wrote letters to the three credit bureaus, provided all the necessary documentation, like credit account numbers, account activation and closing date, and other information. This improved my score by nearly 60 points.
• After that I opened two new credit accounts with high credit limits and tried to keep my balances as low as possible. I used something between 10% and 30% of the available credit limit and made all my payments strictly on time. This increased my rating dramatically.
• The final step on my way up to good credit was asking my cousin with excellent credit to co-sign me. Attaching perfect payment history to your credit report works just like Viagra for your credit score. This move added another 90 points to my credit rating.
So, this is how I raised my fair credit. You can do the same with yours. It is really within your powers. After your first even a small 20 points victory nothing will be able to stop you. I didn’t stop. Now I am working on my good credit to make it excellent. And I have no doubts that I can do it. I managed to overcome my demons. And so can you.

Nearly all US credit card holders have a credit card debt. And sometimes this debt becomes a bad headache for credit consumers. All those interest rates, fees, due dates make it really difficult to pay off your outstanding balance in full. Getting a balance transfer card with favorable terms and 0% intro APR rate is a good way to eliminate your debt faster and easier. That is the most widespread financial experts’ advice when it comes to paying off your credit card debt.
But the thing is that all balance transfer cards with good terms are available for customers with good or excellent credit. And what if your credit rating is not high enough to qualify for a balance transfer card? Are there any alternatives for fair or bad credit owners to handle their debts? There definitely is.
If you own a house you are eligible to apply for a home equity loan. But you will not have to spend the money you borrowed on home improvement. You can use this money to pay off your credit card debts. It is possible and legal.
Let me explain to you why you would want to take another loan when you are drowning in debts and how it can help you. You see, home equity loan is issued at a lower interest rate than credit cards’ APRs. Having taken a home equity loan you will pay it off at a rate of about 7-8%. You will barely find even a low rate card with most favorable terms with 7% APR.
So, here is what you can do with your home equity loan. As soon as you have the money on hand, allocate the funds and pay off as much credit card debt as possible. If you want to pay down several credit card balances and you realize that your home equity loan will not cover your total debt, think what plastics you should better pay off in the first place. It is better to get rid of debt on cards with highest APR first.
Even if you do not manage to eliminate your overall credit card debt, you can pay off some part of the money borrowed. This way you will reduce not just the actual amount of money you owe, you will also cut down your interest.
Besides, with home equity loan you can easily keep your records, get variable interest rate and tax benefits.
However, there is a fly in every ointment. Say, you got a home equity loan, spend it on a part of your credit card debts. And what’s then? You need to keep on living, paying new bills, buying food, clothes, etc. But you have no money left from your loan and still have your credit card balances to pay off. If you keep actively using your plastics, even if they are reward credit cards, you are most likely to accrue even a larger debt.
So, once you decide to do away with your credit card debs though taking a home equity loan, hold back your credit card spending. Then you will get maximum benefit from this debt elimination trick. After you are through with your plastic balances, you have just your loan to pay off at a more than reasonable interest rate.

The Credit Card Fair Fee Act of 2008 has come into legal force, promising financial relief for both retailers and their cards using customers. The new legislation is expected to curb credit card interchange fees or at least make them fairer.What is a credit card interchange, also called transaction, fee, when is it applied and who pays it? While you, as an ordinary credit card holder looking for payment convenience and credit rewards, may not even guess what this fee is designed for, a merchant suffers from the bitter truth.Interchange fee is a fee set by major card processing companies, Visa and MasterCard, and imposed on retailers accepting credit cards as a form of payment.Companies explain the necessity to charge transaction fees by the need to cover credit card processing expenses. How is a common credit consumer affected? As every credit card transaction at a store costs the retailer a transaction fee, the retailer shifts part of this fee to the customer in the form of a higher price. Thus, the merchant preserves a decent level of the daily revenues.

This is generally acknowledged as an unfair, predatory policy on the part of credit companies and an affective solution had been brewing for quite a time already. So, what will change under the Credit Card Fair Fee Act of 2008?The bill will enable small and big businesses to negotiate the transaction fee rate directly with the companies establishing it or with banks that represent these companies.

Collective negotiations will be allowed to make it possible for merchants to bargain a fairer rate.As to Congress, armed with the new legislation, they have sent a letter to Visa Card Company, requesting its representatives to provide exhaustive explanation of the guidelines used for setting the transaction fee rates. As of today, the rate is established on a non-negotiable basis and the establishment method as well as data used to do it is still unknown.

Some experts warn that once credit card interchange fees are cut, cardholders’ ability to enjoy credit perks  and earn rewards will get a hit. Though card companies maintain that they use the transaction fee revenues to cover the card processing costs, research shows that major part of the revenues goes to support the generous rewards programs so loved by cardholders. Who do you think will pay for your cash back bonus or free airline ticket? Who makes all those enhanced points redemption options possible? Your card company does.

And a poll shows that most cardholders are so eager and happy to be enrolled into a profitable rewards program that they even do not mind or simply do not guess they actually pay for this enrollment.Ok, let it be so. If you pay your balances in full and no interest is charged on your rewards plastic, those air miles, hotel rewards cash back are really profitable. But do admit that if you were to pay fewer dollars per item at a store, you would be much better off and your consumer right would not be abused.The Credit Card Fair Fee Act of 2008 is designed to protect merchants’ interests and customers’ wallets

Credit card deals with cash back are usually referred to as the most applied-for plastics in the US. No big surprise. They are pretty aggressively advertised. Besides, a desire to be rewarded is a quite natural trait of human nature. You do not have to do anything but make purchases with your cash back card and some time later you will get a part of your money spent back, as if by magic.
According to statistics, about 60% of card holders who can qualify for reward credit cards choose cash rebate programs. No wonder. Cash back cards benefits do not leave any space to doubts. 0% introductory interest rates, no annual fee (with few exceptions), extra bonus cash rebates for the first purchase, double rebates on selected eligible categories and other perks.
But are there any downsides to cash back credit cards? Or it is a perfect credit product with no flows?
The first outrageously screaming drawback rewards credit card applicants can notice when checking the cash back offer’s terms is pretty high ongoing APR. With rare exceptions. Actually, most reward credit cards come with considerable interest rate. So, you’d better think twice and do some math on your cash back card-to-be, will the cash rebate make it up for the money you will lose on the interest.
Redemption minimums on such offers are the second disadvantage of cash back credit cards. Nearly all cash rebate offers have these minimums. This means that first you are to spend a certain amount of money on your card, and after that the cash back option will be available to you. In other words, you will not get your cash rebate before you spend a settled sum.
For instance, you spend $2,500 and get $25 back. Not that much, huh? But, taking into account that you do not just waste your $2,500, you shop for some necessary items (hopefully), a $25 cash back bonus is not so bad. But 10% cash rebate is something next to impossible. Most cash back deals offer 5-6% cash back.
Another shortcoming of such credit cards is caps on rewards. The caps constrain the amount of cash rewards you can collect per year, or even per month. And all your attempts and determination to accrue as much cash back bonuses as possible will be in vain. So, if you want to apply for a cash back card, check the cap limits. You should better devote some time to finding a deal with no caps on rebates.
So, it turns out to be that even this worshiped by numerous card holders credit product has flaws. Nothing is perfect. Especially in the world of credit.

A financially stable, two-parent family can afford raising children. But what if you are a single mother with low income? You can still make it through. But if being a stay-at-home mother is your full-time job? At least for some period, during the first year, when your baby needs you around 24/7?

Ok. Child social support payments and unemployment benefits can help you. But this money will barely be enough to cover all your bills and credit card payments. So, what do you do with your credit card balances? You just set your priorities and try to provide your baby with all the necessary. And credit cards can wait.

So, your baby already walks and makes attempts to say his or her first words. Things got much easier now. You can go to work again and make some money for living. And there they are. Your old plastic ex-friends, the ghosts from the past that you abandoned a couple years ago. You decide it is high time to do away with your old debts. But you just don’t know where to start. You have no idea what has been going on with your cards during those two years.

Here are three steps that can help you to eliminate your old credit card debts.

Step #1.
First of all, find out your status quo. Make a list of all your balances with interest rates and minimum payments, and credit card bills, of course. Count your total debt and estimate your financial abilities. Make up a scheme of paying down your debts.

Step #2.
If you your income is pretty low, do not expect it will be a piece of cake to eliminate your old debt and handle your current credit cards. If you are determined to pay off your debt, you will have to reduce your spending to the minimum. Try to use every opportunity to make some extra money. Think about selling something you can do without and about how you can save on gas, utility charges, etc.

Step #3.
You can resort to credit counseling services. Such organizations promise to reduce your credit card debt for a fixed price. However, you can manage your debt on your own better. No one but you knows your financial standing and possibilities. But you can find a nonprofit organization with a good reputation.

Now let’s move on to your debt.

Most probably, a large portion of what you owe to creditors is more the result of the snowballing effect of credit card late fees, default rates and overdraft fees, than the actual amount of your purchase charges. There is a chance that lenders will agree to waive some of the fees.

After you negotiate the best conditions for eliminating your debt, start paying off the card with the highest interest. This can be some of your reward credit cards. As for other plastics, keep making just minimum credit card payments on them. Pay off card after card sticking to the principle of cards with the highest APR are first. If you have two cards with equal interests, pay down the plastic with the smallest balance. This way you will reduce the total amount of money you are to pay that month.

If you think that you can mess up all those indebted credit cards of yours, you can consider getting a balance transfer card and consolidate all your debts on it. Interest-free period will be of great help in your debt-relief process.

You can also think about taking a personal loan to get rid of your debts. Perhaps one of your friends or family members will help you. You can agree on paying some nominal interest to him or her. This will make paying down your credit card debts easier and faster.

What else to add?.. Well, I will quote the words of Richard Gere’s character from “Runaway Bride”: “I guarantee there’ll be tough times. I guarantee that at some point you are gonna want to get out of this. But I also guarantee…” that when you are though with paying down all your debts, you will feel a great relief.

When people decide to start their own family, especially if they are young, most tend to think that they are tying the knot with the tongue not to be undone with the teeth. Standing at the altar exchanging wedding vows very few couples think about marital agreement. Husband-and-wife-to-be hope their marriage will last till death do them apart.

And of course, an overwhelming majority of the just-marrieds do not even think about how divorce can affect their credits. However, if we take a closer look at the financial problems caused by divorce, credit score drop will definitely be in the top 5.

So, how come former spouses can face bad credit just for the reason they have split?

Joint credit card accounts and loans are the stumbling block. When you file for divorce, no matter what decision concerning your finances the court announces, it will make no difference to your credit issuers. They will keep charging you the same fees and rates.

There can be two possible scenarios after divorce. And it is hard to say which one is the best-case and which one is the worst. It is either you or your ex-spouse become responsible for your former loan or credit cards. Generally, the total amount of the money borrowed is split between the divorcing spouses, depending on the individual income of every spouse.

On the one hand, if you are obliged to pay off the outstanding balance on your joint credit cards, it implies extra payments to make. If your ex-better half is awarded this “pleasure” of paying down your joint debt, this might seem much more acceptable and convenient to you. But here is where the root of all your credit score evils hides. Once your ex-wife or ex-husband fails to pay on time or misses a payment, it will affect your both credit histories. Both of the credit reports will indicate the missed or overdue payment. That is how your good credit can go bad. And if your ex never had a reputation of a diligent credit card holder, say hello to bad credit cards.

What can be done about that?

Well, most of the divorces do not come out of the blue. So, before all the divorce proceedings you should better first settle all financial issues with your spouse. Actually, it is better for both of you to have your individual credit histories and keep them fresh, as well as have separate bank accounts, cell phones, credit cards, etc. in your own name. But it is quite natural that when it comes to some big purchases or loans, you apply jointly. A car loan or a mortgage can require both incomes to qualify.

If you realize that your marriage stands no chances to be saved and you consider divorce as the only option, you should establish credit history in your own names before you file for a divorce. Though you will have to start afresh by applying for a secured or a prepaid card, it will be better for your financial standing.

Convert all joint accounts into individual account. This will make the matrimonial suit in the divorce court pass without serious complications associated with dividing financial responsibilities. Concentrate on splitting credit card accounts first, as credit consumers tend to miss their monthly payments on plastics more often than on secured loans.

With separate credit histories and credit card accounts you can undo the teeth, cast off the marriage chains and start writing a new page of your life.

You know that people with good and excellent credit are eligible for the best credit card deals with low interests and great rewards. While customers with a credit that needs some improvement or those with no credit sometimes have to bend over backwards to qualify for a credit card with a decent interest rate and a moderate annual fee.

This is fair to some extent. No doubt that people with good credit history didn’t get it like manna from heaven. They have worked hard to build a strong credit. And the banks’ policy is also quite clear. They prefer to deal with loyal, prosperous and creditworthy customers with good credit. Such clients roll in lenders’ good graces.

As for bad or no credit owners, credit card issuers are not so merciful and generous. People who can qualify for poor credit cards only are a bad risk for creditors. And credit issuers need to make up for this risk somehow. High fees and rates are a good compensation. It is just one of the credit card market’s laws. Creditors make profit from their customers. But why then the unbeneficial for lenders 0% APR credit cards exist? Where is the profit?

I’ll start with a short flashback. In 2002, 2003 when the Fed rates were the lowest, many credit card issuers offered 0% interest cards to different customers. The qualifying standards were not that stern as they are now. But even back then the question “How do creditors profit from this type of deals?” lingered on card holders’ minds. The scheme is pretty simple, in fact.

Creditors have enough of other sources of revenue to compensate for the side effects of issuing low interest credit cards.

Annual Fees
Five years ago most 0% APR credit card owners had to pay an annual fee for the privilege of using such a plastic. The fee ranged from $15 to $20, as a rule. These days, however, most 0% intro interest deals are not applied an annual fee.

Late Fees
You can benefit of your credit card with 0% APR till you are accurate with your monthly credit card payments. Once you are late with your payment, a creditor imposes a late payment fee, usually from $19 to $39.

Default Rate
It is not even the late payment fee itself that can shake your financial standing, but it is the default rate that can be triggered by being late with paying your monthly bills. Learn punctuality with your credit card payments, otherwise, kiss a good-bye to your 0% rate and welcome new doubled interests on both, existing balances and new charges.

So, annual and penalty fees, as well as default rates – that is how credit card companies make up for the unprofitability of the 0% APR credit card deals. But now that the Fed rates went up, as compared to those of 2002 rates, it became more difficult to find a good low interest offer with favorable terms. But once you find one and get approved, hold it, don’t drop it, for low interest deals are really great and can actually save you money.