The rules for boosting credit have not changed in light of the new Credit CARD Act. “The rules have stayed the same: Pay bills on time, keep credit card balances low, and avoid bankruptcy and foreclosure,” says LaToya Irby, credit and debt management expert for About.com.
Tag: card
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Revolution Money: Would You Use the New Revolution Money Card?
Filed under: News
Revolution Money is a relatively new money exchange system and credit card network. Having recently expanded its reach by partnering with Fifth Third Bank as an issuing agent for its cards, Revolution Money also just raised $42 million through Goldman Sachs in April. People in the business community must really believe Revolution Money is something very special. With a sea of credit and debit cards available to consumers and merchants, what makes Revolution Money and it’s card offering different?
Well for one thing, the card physically looks and technically functions like nothing else on the market. Paymentsnews.com explains:
Originally positioned to appeal to the extremely security conscious market segment, all transactions are PIN-based, riding over the debit networks’ rails using a proprietary BIN range (PINs for ecommerce transactions are entered in the CVC2/CVV2 field). Cards are not embossed, and do not have the cardholder name printed on the card or encoded on the mag-stripe. In addition, the number printed on the card is different than the number encoded on the mag-stripe, adding some level of additional risk management.
Financial protection is definitely a plus during these uncertain times. In addition, Revolution Money offers an innovative and extra-secure way of sending money online called Revolution Money Exchange, which touts itself as a viable alternative to both checks and cash. Revolution Money is definitely leading on the bleeding edge in terms of offering consumers new ways to safely spend.
But what does Revolution Money offer the business owner? Uniquely, the Revolution Money system is set up to reward merchants with points for encouraging customers to use the Revolution card, while suggesting that merchants pass those rewards on to their customers. This then promotes the loyalty of customers to the specific merchants offering the rewards, rather than the card. Businesses of various kinds can surely see the potential in this type of “revolutionary” arrangement with a credit card company. Usually, merchants lose money on credit card deals and the card issuer retains all the loyalty based on rewards. The Revolution Money system reverses all that.
Should Revolution Money and Revolution Money Exchange turn the purchasing world on it’s head? Will the Revolution Money card become a preferred method for payment for consumers and merchants alike? Can Revolution Money Exchange really overtake the ubiquity of PayPal? Only time will tell. But as this recent partnership between Revolution Money and Fifth Third Bank shows, this company is taking no prisoners on its rampage path of growth.
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Dear New York Times…
Posted by: Russell Simmons
**UPDATE**
We received a very gracious communication from the NY Times offering to hear Russell’s vision…stay tuned…
I’m outraged that you would publish an article that associates the RushCard with other financial products, some of which prey on the underserved. The article was, in my opinion, unfair, misinformed and bordering on slanderous. The RushCard is not just a prepaid card, it’s an empowerment program that took me many years to build. It was built specifically to help people in underserved communities. It offers more than a prepaid card or a bank account.
Many of our members have low incomes and need to manage their money very closely. We offer free services like budgets, text alerts and online charts for analyzing and tracking spending. Banks don’t offer these tools. Had you spoken with our members, you would have learned that over half of those, who use these services say they save more than $300/year. That’s a lot of money for them.
Our members are left out of mainstream financial institutions and need to rebuild their credit files. You could have learned that RushCard is the only prepaid card that allows members to have their transactions reported to multiple credit reporting agencies, helping them build their credit files. We don’t charge for this either.
Our members struggle with healthcare. Not everyone can afford medicines or treatment. Had you contacted me, you would have learned that we’re bringing out a free drug discount card later this year to help our members with the high cost of prescription drugs.
We would have told you that unlike credit cards and other cards we don’t have hidden fees, overdraft fees or finance charges. We don’t hide or bury our fee structure – it’s all easily available on our website and with every card we send out. Unlike other prepaid cards, we’ve never charged for customer service. We’re more transparent than any other prepaid card. We let you transact in ways the more privileged take for granted.
We have 2 million members. These are real people who see real value in our services. Everyday I read messages from our members who are grateful for the RushCard after having terrible experiencing with their bank or financial services provider. There are thousands of stories of how people landed up with hundreds of dollars of surprise charges from their bank accounts. None of this happens on the RushCard. Had you contacted me, I would have shared these stories with you.
With today’s economic conditions, the underserved communities are being taken advantage of more than before. It’s important that they understand the good and the bad in their options. Your article focused only on the cost, which we keep as low as we possibly can, and not on the array of benefits that go beyond that of any other card, which is why it is a program, and one I’m proud to put my name on.
My empowerment initiatives, which include the Hip Hop Summit’s focus on financial education, and my many charities are there to serve people. Had you called me, you would have known all this.
Russell Simmons -
Dr Boyce Money: Five Ways to Know You are a Credit Card Crackhead
Filed under: Personal Finance, Dr. Boyce Money
Sometimes your finances can get so out of whack that you can only laugh in order to keep from crying. Well, I am a big advocate of the art of laughing, so I thought I would share five symptoms that show you might be a credit card crackhead. As we know, millions of Americans have been sucked into credit card addiction, especially before the recent financial crisis, where the average savings rate for American consumers was actually less than zero.
African American wealth is also affected, as many of us in the black community are very good at whipping out the credit card to handle any old financial concern. Here is a list of five ways to know that you might be a credit card crackhead:1)Are your roommates and children trained to tell the bill collectors you’re not home? Running from bill collectors might make sense, but you eventually have to deal with them. I recommend working with a consumer credit counselor, who can help you to renegotiate your debts. Many of them can save you thousands of dollars in the process.
2) When shopping, do you whip your credit card out faster than John Wayne’s gun? Food, clothes, haircare products are not the kinds of things that should be purchased with a credit card. Credit card use should be limited to major and emergency purchases. Using cash is an easier way to keep a cap on your spending. You might want to get a set amount of money out of the ATM every week and don’t spend more than that amount.
3)Do you break into a cold sweat when you make a charge because you think that your credit card might be maxed out? Yes, a maxed out credit card is embarrassing. But banks have made it “easier” for you: many of them will go ahead and pay the charge if you go over your limit. In fact, they encourage you to overspend. Why? Because they will charge you a massive fee for doing so, to the tune of nearly $40 per transaction.
4) Do you do the happy dance when you get a free credit card offer in the mail? If you are smart, then you would just throw it away. These offers are not as prevalent as they were before the financial crisis, but the credit card crackhead has a problem with seeing credit card offers as free money. Most of us think we need credit cards, but really you don’t. One credit card is usually enough to achieve your financial objectives.
5)Do you have so many credit cards that your wallet hurts your butt? Or if you are a lady, do you have credit cards for all of your favorite stores? If so, the high interest payments you are making are probably killing your ability to save money. Get rid of store credit cards, since they encourage you to overspend on meaningless junk. They also tend to charge outrageous interest rates.
When it comes to managing a credit card addiction, it’s all a matter of making wise choices. Credit is a good thing and very powerful, but it should also be used responsibly. Get your butt in rehab right now.
Dr. Boyce Watkins is a Finance Professor at Syracuse University and author of the forthcoming book, “Black American Money.” To have Dr. Boyce commentary delivered to your email, please click here.