Credit Card Telephone Marketing

Telephone Sales for Credit Card Rewards Programs

Often credit card companies have your phone number and they will attempt to call you to get you to buy more stuff from them or sign up for another credit card under the same account with a different name on it perhaps for a spouse. Telephone sales for credit card programs are quite common and many credit card companies partner with other companies who try to sell you stuff.

Often this infuriates clientele and nevertheless there is nothing the customer can do about it because they do actually do business with the credit card company already and that makes it within the law. What kind of things, credit card rewards programs?

Sometimes they give discount airline miles and sometimes they give discounts or prepaid merchandise cards and various large retailers. This helps the retailer, which is also their customer and it makes the credit card customer feel like they're getting a good deal even though they are get reamed by the high-priced credit card interest rates.

Telephone sales for credit card reward programs generally net about 10% of the people called and they know that since you already do business with them they can simply add costs on to your credit card. They also know those customers who pay their bills on time and therefore they know they will collect. Please consider this in 2006.

Student's Debt Problem

Avoiding Student Credit Card Debt

Students are valuable customers for credit card companies, as they tend to stay loyal to their first card and continue to make purchases with it for many years, despite having loans and not having jobs in many cases. In order to not fall into debt traps, students should avoid using the credit card barring emergencies. They should be aware of the after effects of using a credit card which would help them keep track of money in a better way.

Students should be aware of the fact that credit cards geared towards students often come with high interest rates and many unfavorable terms. This is largely due to high default rates among students than among other age groups. Another reason for the high rates is that students usually have limited credit histories. A point to note for the students is that the credit card should not be considered as a source of income. Even though students have good intentions of paying off their bills in a timely manner after they enter the workforce, such intentions are never realized. Most often, students lack money managing skills which hit them hard when they use their cards to the maximum limit.

Some of the credit cards issuers do not require parental approval for issuing credit cards to students. This leads to further mismanagement of money by the students as they are given access to a credit card with pretty high credit limits, which they assume to be their money and spend on various things. Instead, the use of cash is advisable, whenever possible. Debit cards are good alternatives for college students. They allow retailers to deduct the money from the purchaser's bank account immediately. They work at ATMs too, if the student requires cash.

Thus, try not to take up a credit card in the first place, and if you do take one, try to clear the bills within the payment due date. Because, if you don't, you could be fighting your way out of debt longer than getting your way through school.

Credit Bureaus. Do They Like You?

Establishing Credit

Establishing credit is very important. Whether you have previously had a good credit standing and lost it, or you are just beginning to accumulate credit and establish a credit rating, a few standard concepts will help you establish a good credit rating.

The principle way that a lending agency obtains information about your credit history is through one of the credit bureaus. There are three nationwide credit reporting agencies in the United States that handle this, and they are Equifax, Experian, or TransUnion. These agencies collect your financial information from anywhere that you have developed a payment history. When purchasing anything on payments, these three credit reporting agencies keep a permanent record.

When borrowing money and establishing credit, you must be able to prove to the lender these four things:

1) Stability - You must prove that you can hold a steady job with a dependable income and that you have lived in the same place for a certain length of time.

2) Ability to repay - You must be able to demonstrate that your income exceeds your expenses.

3) Assets - Lenders will look more favorably on your application for credit if you have assets such as a home, car or savings account that can serve as collateral.

4) Credit references - Lenders will look to see that you have credit references and a good credit standing!

These four principles will help you establish good credit history, and from this, a credit score, to evaluate your availability to repay.

To maintain a good credit standing all purchases bought on time must continue to be handled in a timely fashion. To be responsible in your payments, you will need to prepare a budget from year to year to keep your finances on track; there is no way around it! Obviously you cannot spend what you do not make, so the easiest way to prepare your budget is to list exactly what is coming into your household and where that money is going.

Make two columns on a piece of paper. Title one side "Inflow" and the other side, "Outgo". Under the heading "Inflow", list all the finances that come into your household including paychecks from employment, part time jobs, side jobs, alimony, child support, everything. On the other side, make a list of your expenditures, and be as thorough as possible. List rent or mortgage, utilities, food, gas, clothing, credit cards, loans until you have created a list of everything that is spent in a month.

When you total each side, the Inflow should be larger than the Outflow. If it is not, then you will have to make some adjustments. It will have to come back into line because you cannot continue spending more than you are making!

Once you accomplish the budget and determine the financial level that you can maintain, when you make more money - you can make more purchases. If you overextend yourself for a temporary purchase, you run the risk of ruining your permanent credit history that you?ve been working so hard on. Think before you spend, and save your credit cards for emergencies by paying the entire balance each month. A good credit score is worth its weight in gold in today?s society where everything is bought on credit or credit cards.

Got a Bad Credit History?

Quickly Improve Your Credit History

The purpose of this article is to help you understand some of the ways to improve your credit history quickly once you find out that you have a bad credit rating.

A Bad Credit History Sets the Stage
A history of bad credit can be a major headache and a recurring nightmare. You are almost solely limited to using cash for your financial transactions.

A bad credit history will make it very difficult for the usual financial transactions. These include bank loans, buying a car, buying a house, leasing an apartment or house and, of course, applying for a new credit card. Businesses, banks and landlords will turn their backs on you once they review your credit report. There is only one thing to do to get your life back to normal and that is to work diligently to quickly raise your credit rating.

Upgrade Your Credit Rating
What can you do to improve credit history fast once you're credit rating has taken a beating? Where do you start? Unfortunately, it's a catch 22 because you need a good credit report for many of these options.

One option is a credit counseling service because they can handle almost any poor credit history. There are two major benefits to using a credit counseling service.

These services are experts at understanding the reasons for your poor credit ratings. Secondly they are experts at suggesting proven ways to begin the process of raising credit scores.

There are millions of people who have had bad credit histories and many of them have used the services of credit counseling services. So do not be ashamed, there is a good chance that your next door neighbor or a family member has used one in the past.

Collection Agencies - The Enemy
One of the initial steps recommended by credit counseling services includes tidying up previously identified past debts. If you've missed payments or forgotten about some old bills, these need to be cleared up as well because they create major consequences to your credit history.

Your creditors have long memories and they will turn your problem over to collection agencies. Collection agencies are tireless at collecting money from you and once they have given up on you, they will further damage your credit history.

By law, you must be made aware of any outstanding debts being handled by a collection agency. But if they cannot contact you because you have moved or you have a new phone number, they may decide to report you to the credit bureaus further damaging your credit even though you know nothing about the problem.

Conclusion
In summary, to improve credit history fast, the first step is to resolve forgotten and old bills. Then you must show a good faith effort to pay these off by paying a little each and every month consistently.

For credit cards, you must make the monthly minimum payment or more and if you do not have a credit card, if you can obtain a secured credit pay the monthly minimum on it. Credit counseling services are highly recommended. They help people like you every day and know the ins and out of the credit bureaus and can make many proven suggestions to help.

Some Words about Credit Card Fraud

Introduction To Identity Theft

Identity theft is no longer an unusual occurrence. It is rapidly evolving and is quickly becoming a socio-economic inevitability. Identity theft is the fastest growing white-collar crime. It is a crime in which an impostor obtains key pieces of your personal identifying information such as your Social Security number or driver's license number and uses them for their own personal gain. Identity pirates can gather all sorts of confidential information about you by prowling the Web. They begin with the misuse of your personally identifying information such as your name and Social Security number, credit card numbers, or other financial account information. Once they have this information, identity thieves may rent an apartment, obtain a credit card, or establish a telephone account in your name.

An Identity thief can take your personal information from your mail box or your home. Identity theft is bad enough but right now it is also pretty much of a cottage industry relying primarily on techniques like dumpster diving. Identity theft laws and crack-downs, while improving, are definitely not where they should be. It's hard to pin down, because each law enforcement agency may classify ID theft differently--it can involve credit card fraud, Internet fraud, or mail theft, among other crimes.

Detecting Identity Theft & credit card Fraud

A key way to detect fraudulent accounts is through credit monitoring / reports. Review your credit information regularly (free annual reports are available from the Credit Reporting Bureaus) Visit your bank's, credit card issuer's or biller's web site(s) frequently to monitor regular account activity. Victims of identity theft don't normally know they've been victimized until:They are contacted by a collection agency over past due accounts they never knew they had; significant charges may show up on a credit card bill for purchases they never made; a lender tries to repossess a car they didn't know they owned; or they are contacted by the police after a crime is committed in their name. It is important to resolve fraud promptly, minimizing losses and protecting your credit record. You should ask your financial provider about zero-liability guarantees against fraud and dedicated resources to help you resolve and recover from any potential losses. Some banks will work with you if you have an account at their bank. If you are a Victim of theft, promptly notify your financial providers, begin monitoring your accounts more frequently, and place an "alert" at all three credit bureaus (Equifax, Experian or TransUnion). when someone uses your name, Social Security number, credit card number or some other piece of your personal information to apply for a credit card, make unauthorized purchases, gain access to your bank accounts or obtain loans under your name.

Problems On The Internet

Schemes known as "phishing'' use e-mail messages to lure unwitting consumers to Web sites masquerading as home pages of trusted banks and credit card issuers, corporate security specialists say. Online visitors are then induced to reveal passwords as well as bank account, Social Security and credit card numbers. The crimes ranged from the theft of a credit card number to more elaborate identity thefts used to secure loans.

Thieves have turned toward the theft of information, and specifically personal information, because with an assumed identity criminals can purchase goods and services at will using someone else's credit..

Social Security Issues

Do you use your Social Security number for identification. The identity thief uses key pieces of your information such as Social Security and driver's license numbers to obtain credit, merchandise and services in your name. Almost 50 percent of students have had grades posted by Social Security number. While there are many ways to get a Social Security Number on someone, most criminals start with a phone book. They may use your name and Social Security number to get government benefits. Theives may get a job using your Social Security number.

A new Social Security number may not resolve your identity theft problems, and may actually create new problems. Even if the old credit information is not associated with your new Social Security number, the absence of any credit history under your new Social Security number may make it more difficult for you to get credit. And finally, there's no guarantee that a new Social Security number wouldn't also be misused by an identity thief.

Fighting Back

Each of these actions places you at risk of being a victim of identity theft because each requires you to share personal information such as your bank and credit card account numbers, your Social Security number, or your name, address, and phone number.

1. Based on the latest findings, the Better Business Bureau, Wells Fargo, Visa and CheckFree have issued the following tips for consumers to protect themselves against financial identity fraud: Prevent access to your personal information
2. Replace paper bills, statements and checks with Internet (paperless) versions
3. Consider moving to an electronic bill payment service, such as your bank or biller's web site,
4. Stop sending signed paper checks through the mail.

Many of the most vicious cases, say analysts, involve corporate insiders who hijack sensitive personal information from corporate databases in order to begin picking people's pockets. Call and speak with someone in the security or fraud department of each company. Avoid using easily available information like your mother's maiden name, your birth date, the last four digits of your Social Security number or your phone number, or a series of consecutive numbers.

Be aware of how information is stolen and what you can do to protect yours, monitor your personal information to uncover any problems quickly, and know what to do when you suspect your identity has been stolen. They can steal your wallet or purse, or convince you to give out personal information. In short, any piece of paper you no longer need that contains personal information. Do you use your personal computer to buy merchandise or purchase tickets for travel, concerts, or other services. This is the same personal information that identity thieves use to commit fraud. Once they have your personal information, identity thieves use it in a variety of ways.

Fixing The Damage

Victims are spending more time to resolve identity fraud cases, which has increased from 33 hours in 2003 to 40 hours in 2006. Typically, victims don't have to pay debts incurred by another person, however that's not the point, the time, the stress, and the many sleepless nights you have to go through to clean up your record that really hurts most victims. It can take months and even years to undo the damage inflicted on the reputation of the victims and the stressful trail of destruction that takes its toll.

Prevention Is The Best Remedy

Experts say that the solution to preventing identity theft is a simple, three-step process:

1. Curb the use of the Social Security number as a unique identifier for business use, a measure that has been introduced in Congress and defeated several times over the past decade
2. Force credit-granting agencies to require more identifiers and shore up their credit card policies
3. Restrict all selling of personal information by credit bureaus, state and federal agencies, and marketing firms.

Preventing identity theft is not as hard as it may seem. From a personal perspective, make sure that you take advantage of technologies that enhance your security and privacy when you use the Internet, such as digital signatures, data encryption, and "anonymity" services. Companies and their management need to be more aware of how they're putting their customers at risk.

Obviously, identity theft is not only of great concern for the individual affected, but by the financial institutions that are deceived by this practice. According to the FBI, Identity Theft is the fasting growing crime in the US. And it is is costing an estimated $6 Billion.