Fast Credit Online - innovations on banking services Kiplinger's Personal Finance Magazine, March, 2001 by Melynda Dovel Wilcox BANKING | Lending networks on the Web give SMALL BUSINESSES more places to borrow money with fewer hassles. FAST CREDIT ONLINE SHARON BERRY got a lukewarm reception from local banks when she sought a loan to expand her Stafford, Va., child-care business by opening a second center. Rather than scrap her plans, Berry visited a Web site called LiveCapital, filled out an online loan application, and within about five minutes was evaluating competing offers from several banks. Within two weeks Berry had her money. LiveCapital and several other online companies have built networks of lenders that small businesses can tap into quickly and easily (see the box below). In the case of LiveCapital, 70 financial institutions belong to the network, among them American Express, Citibank, First Union, G.E.Capital and Wells Fargo. Mike Grossman, LiveCapital's co-founder and CEO, says its customers value convenience and anonymity as opposed to "going from bank to bank and getting grilled by a loan officer." Real-time credit approval doesn't always replace the intangible value of personal banking. "When business owners face difficult times and they've been loyal clients, their bank will be there for them," says Loren Herbst, a retired banker who counsels small companies as a volunteer with the Service Corps of Retired Executives. But if you don't have such a relationship, or if you have already applied for a bank loan and been turned down, "what do you have to lose?" says Herbst. The Truth About Advance-Fee Loan Scams Advance-fee loan sharks are preying on unwary consumers, taking their money for the promise of a loan or credit, and leaving them in hot water. The scam artists often impersonate legitimate lenders to entice consumers into falling for their bogus offer. According to law enforcement agencies in the U.S. and Canada, ads and promotions for advance-fee loans suggest — or even “guarantee” — that there’s a high likelihood that a loan will be approved, regardless of the applicant’s credit history. But to take advantage of the offer, the consumer has to pay a fee. The catch? The scam artist takes off with your fee, and the loan never materializes. Many advance-fee loans are promoted in the classified sections of daily and weekly newspapers and magazines. Often, the ads feature toll-free 800, 866, or 877 numbers, or area codes from Canada, such as 416, 647, 905, or 705. The loans also are promoted through direct mail, radio, and cable TV spots. The fact that an ad is in a legitimate media outlet — like the local newspaper or radio station — doesn’t guarantee that the company placing it is trustworthy. Legitimate offers of credit do not require an up-front payment. Although legitimate lenders may charge application, appraisal, or credit report fees, the fees generally are taken from the amount borrowed. And the fees usually are paid to the lender or broker after the loan is approved. Legitimate lenders may guarantee firm offers of credit to “credit-worthy” consumers, but first, they evaluate the consumer’s creditworthiness and confirm the information in the application. Canadian law enforcers caution that it is highly unlikely that legitimate Canadian lenders would take a risk on U.S. citizens whose credit problems preclude them from getting a loan in the U.S. Often, advance-fee loan sharks claim that their fees will go to a third party for credit insurance or a related service. Sometimes, they even fax materials using stolen or forged logos and letterheads from legitimate companies. The materials are fakes, according to enforcement officials, and the contracts the scam artists ask consumers to sign are worthless. Adding insult to injury, some scammers have used the information they collect from consumers to commit identity theft. Often, advance-fee loan scammers direct applicants to send the fees via Western Union money transfers payable to an individual, rather than a business. They ask applicants to use a “password code” with their Western Union payment, which allows the scammers to hide their identity. U.S. and Canadian law enforcers say consumers can avoid being taken by advance-fee loan sharks. Here’s how: Don’t pay for the promise of a loan. It’s illegal for companies doing business by phone in the U.S. to promise you a loan and ask you to pay for it before they deliver. Requiring advance fees for loans also is illegal in Canada. Ignore any ad — or hang up on any caller — that guarantees a loan in exchange for a fee in advance. Remember that legitimate lenders never guarantee or say that you will receive a loan before you apply, or before they have checked out your credit status or contacted your references, especially if you have bad credit or no credit record. Don’t give your credit card, bank account, or Social Security number on the telephone, by fax, or via the Internet unless you are familiar with the company and know why the information is necessary. Don’t make a payment to an individual for a loan; no legitimate lending organization would make such a request. Don’t wire money or send money orders for a loan through Western Union or similar companies. You have little recourse if there’s a problem with a wire transaction. Legitimate lenders don’t pressure you to wire funds. If you are not absolutely sure who you are dealing with, get the company’s number in the phone book or from directory assistance, and call it to make sure you’re dealing with the company you think you are. Some scam artists have pretended to be the Better Business Bureau or another legitimate organization. Check out questionable ads by calling Project Phonebusters in Canada toll-free at 1-888-495-8501. If you live in the U.S. and think you’ve been a victim of an advance-fee loan scam, report it to the FTC online at www.ftc.gov or by phone, toll-free, at 1-877-FTC-HELP (1-877-382-4357). Finding Low-Cost Help for Credit Problems It’s a good idea to try to solve your debt problems with your creditors as soon as you realize you won’t be able to make your payments. If you can’t resolve your credit problems yourself or need additional help, you may want to contact a credit counseling service. There are nonprofit organizations in every state that counsel and educate individuals and families on debt problems, budgeting and using credit wisely. There is little or no cost for these services. Universities, military bases, credit unions, and housing authorities also may offer low- or no-cost credit counseling programs. Check the white pages of your telephone directory for a service near you. The Toronto Strategic Partnership is a group of law enforcement agencies in the U.S. and Canada that works together to prosecute cross border fraud. Formal members include the Toronto Police Service, the Competition Bureau Canada, the Ontario Ministry of Consumer and Business Services, the Ontario Provincial Police, the U.S. Federal Trade Commission and the U.S. Postal Inspection Service. Other partners include the Ohio Attorney General’s Office, the Royal Canadian Mounted Police, and the Police Services of York, Durham and Peel in Ontario. The FTC works for the consumer to prevent fraudulent, deceptive and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To file a complaint or to get free information on consumer issues, visit www.ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. The FTC enters Internet, telemarketing, identity theft, and other fraud-related complaints into Consumer Sentinel, a secure, online database available to hundreds of civil and criminal law enforcement agencies in the U.S. and abroad. Fast Credit Card Pay-Down Plan How do I find more information about credit cards? You can find lists of credit card plans, rates, and terms on the Internet, in personal finance magazines, and in newspapers. The Federal Reserve System surveys credit card companies every six months. You’ll need to get the most recent information directly from the credit card company--by phoning the company, looking on the company’s web site, or reading a solicitation or application. Under federal law, all solicitations and applications for credit cards must include certain key information, in a disclosure box similar to the one shown. Annual percentage rate (APR) for purchases 2.9% until 11/1/06 after that, 14.9% Other APRs Cash-advance APR: 15.9% Balance-Transfer APR: 15.9% Penalty rate: 23.9% See explanation below.* Variable-rate informtion Your APR for purchase transactions may vary. The rate is determined monthly by adding 5.9% to the Prime Rate.** Grace period for repayment of balances for purchases 25 days on average Method of computing the balance for purchases Average daily balance (excluding new purchases) Annual fees None Minimum finance charge $.50 Transaction fee for cash advances: 3% of the amount advanced Balance-transfer fee: 3% of the amount transferred Late-payment fee: $25 Over-the-credit-limit fee: $25 * Explanation of penalty. If your payment arrives more than ten days late two times withing a six-month period, the penalty rate will apply. ** The Prime Rate used to determine your APR is the rate published in the Wall Street Journal on the 10th day of the prior month. APR for purchases. The annual percentage rate you’ll be charged if you carry over a balance from month to month. If the card has an introductory rate, you’ll see both that rate and the rate that will apply after the introductory rate expires. Other APRs. The APRs you’ll be charged if you get a cash advance on your card, transfer a balance from another card, or are late in making a payment. More information about the penalty rate may be stated outside the disclosure box--for instance, in a footnote. In this example, if you make two payments that are more than ten days late within six months, the APR will increase to 23.9%. Variable-rate information. Information about how the variable rate will be determined (if relevant). More information may be stated outside the disclosure box--for instance, in a footnote. Grace period for repayment of balances for purchases. The number of days you’ll have to pay your bill for purchases in full without triggering a finance charge. Method of computing the balance for purchases. The method that will be used to calculate your outstanding balance if you carry over a balance and will pay a finance charge. Annual fees. The amount you’ll be charged each twelve-month period for simply having the card. Minimum finance charge. The minimum, or fixed, finance charge that will be imposed during a billing cycle. A minimum finance charge usually applies only when a finance charge is imposed, that is, when you carry over a balance. Transaction fee for cash advances. The charge that will be imposed each time you use the card for a cash advance. Balance-transfer fee. The fee that will be imposed each time you transfer a balance from another card. Late-payment fee. The fee that will be imposed when your payment is late. Over-the-credit-limit fee. The fee that will be imposed if your charges exceed the credit limit set for your card. What are your liability limits? If your credit card is lost or stolen--and then is used by someone without your permission--you do not have to pay more than $50 of those charges. This protection is provided by the federal Truth in Lending Act. You do not need to buy “credit card insurance” to cover amounts over $50. If you discover that your card is lost or stolen, report it immediately to your credit card company. Call the toll-free number listed on your monthly statement. The company will cancel the card so that new purchases cannot be made with it. The company will also send you a new card. Make a list of your account numbers and the companies’ phone numbers. Keep the list in a safe place. If your wallet or purse is lost or stolen, you’ll have all the numbers in one place. Take the list of phone numbers--not the account numbers--with you when you travel, just in case a card is lost or stolen. What can you do about billing errors? The federal Fair Credit Billing Act covers billing errors. Examples of billing error are A charge for something you didn’t buy A bill for an amount different from the actual amount you charged A charge for something that you did not accept when it was delivered A charge for something that was not delivered according to agreement Math errors Payments not credited to your account A charge by someone who does not have permission to use your credit card If you think your credit card bill has an error, take the following steps: Write to the credit card company within 60 days after the statement date on the bill with the error. Use the address for “billing inquiries” listed on the bill. Tell the company Your name and account number, That you believe the bill contains an error, and why you believe it’s wrong, and The date and amount of the error (the “disputed amount”). Pay all the other parts of the bill. You do not have to pay the “disputed amount” or any minimum payments or finance charges that apply to it. If there is an error, you will not have to pay any finance charges on the disputed amount. Your account must be corrected. If there is no error, the credit card company must send you an explanation and a statement of the amount you owe. The amount will include any finance charges or other charges that accumulated while you were questioning the bill. Private Banking USA Private Banking USA works with a select number of wealthy individuals and family groups to provide a high degree of personalized service. The group works closely with all areas of the Firm, providing our clients with the same resources and services offered to Credit Suisse's largest and most sophisticated institutional investors. A full array of Credit Suisse's products and services are offered to its clientele including Credit Suisse's top-ranked securities research, access to the firm's underwriting calendars, including IPOs and other new issues, and proprietary products. Located in ten domestic and international offices, the Group hires individuals from the top business and professional schools across the globe to provide unparalleled service. Locate a professional in your area. Read more about the Private Banking USA client web site here. The Private Banking USA business in Credit Suisse Securities (USA) LLC is not a chartered bank or trust company, or depository institution. It is not authorized to accept deposits or trust accounts and is not licensed or regulated by any state or federal banking authority. SIPC BOARD CHAIRMAN RINGS THE CLOSING BELL AT NEW YORK STOCK EXCHANGE Miami Attorney Is First Hispanic Appointed to Serve as SIPC Chair NEW YORK CITY - July 17, 2006 - Securities Investor Protection Corporation (SIPC) Board Chairman Armando J. Bucelo, Jr., a Miami attorney, rang The Closing Bell at the New York Stock Exchange (NYSE) on Friday. (See video here). SIPC was created by Congress to maintain a special reserve fund to help investors at bankrupt brokerage firms. Named as SIPC chairman in January, Bucelo is both the first Hispanic and first Floridian to so serve his nation. He was appointed by President Bush as a director of SIPC in 2002 and became vice chairman of the board in 2003. SIPC Chairman Bucelo said: “It is appropriate for SIPC to be involved in this ceremony since the investor confidence that we help to instill is vital to the functioning of America’s capital markets, including the New York Stock Exchange. Investors should understand that, within the limits of the powers granted to us by Congress, SIPC is there to assist them.” Bucelo was accompanied at the NYSE ceremony by his wife, Beatriz Bucelo, and his three children, Alexis Marie, Armando Joseph, and Alexander, as well as SIPC Director Thomas W. Grant, president of H.G. Wellington & Co., Inc., and SIPC President Stephen Harbeck. SIPC President Harbeck added: “Like the New York Stock Exchange, SIPC is dedicated to operating in the best interests of investors in efficient capital formation.” Bucelo serves on a number of boards, including the board of directors of the National Housing Development Corporation, a national nonprofit organization dedicated to: preserving affordable housing in partnership with local communities; empowering individuals; and revitalizing communities. He was appointed by the governor as a trustee of the board of directors of Miami Dade Community College and has served in that capacity since 1999. Bucelo also was a director of Freddie Mac under the George H.W. Bush administration. He is the recipient of numerous awards and honors for his extensive civic activities. Born in Havana, Cuba, Bucelo received his B.S. and J.D. from the University of Miami. He is a member of the Florida Bar and the Inter-American Bar. Bucelo is admitted to practice law before the Supreme Court of the United States as well as various United States Tax and District Courts. Chairman Bucelo stated: “I am very proud to serve as a chairman of SIPC. It is indeed an honor to ring the Closing Bell at the New York Stock Exchange, an event my family and I will never forget.” ABOUT SIPC From the time Congress created it in 1970 through December 2005, the Securities Investor Protection Corporation (http://www.sipc.org) advanced $585 million in order to make possible the recovery of $14.2 billion in assets for an estimated 624,000 investors. Although not every investor is protected by SIPC, the Securities Investor Protection Corporation estimates that no fewer than 99 percent of persons who are eligible have been made whole in the failed brokerage firm cases that it has handled to date. SIPC either acts as trustee or works with an independent court-appointed trustee in a brokerage insolvency case to recover funds. The statute that created SIPC rules provides that customers of a failed brokerage firm receive all non-negotiable securities that are already registered in their names or in the process of being registered. At the same time, funds from the SIPC reserve are available to satisfy the remaining claims of each customer up to a maximum of $500,000. This figure includes a maximum of $100,000 on claims for cash. CORPORATION (SIPC) AND IDAHO DEPARTMENT OF FINANCE WASHINGTON, D.C. – June 20, 2006 – The Securities Investor Protection Corporation (SIPC) and the Idaho Department of Finance announced today that they have worked together to halt an advertising campaign that could have misled unwary investors into believing that an investment was "insured through SIPC." SIPC was created by Congress to maintain a special reserve fund to help investors at bankrupt brokerage firms. The case was triggered when an investor contacted the SIPC office in Washington, D.C. after reading a newspaper ad in the Idaho Statesman that was placed by "Network Investments," of Boise, Idaho. The ad and a related Web site urged investors to purchase Real Estate Construction Investments that supposedly were "insured through SIPC." SIPC President Stephen Harbeck said: "The ads were misleading for three reasons. First, the investments were unregistered investment contracts, which are not protected under the Securities Investor Protection Act. Second, there was no indication that the investments were to be held in custody for the investors by a SIPC member brokerage firm. Third, SIPC's statutory role is to return securities to investors when their brokerage firm fails. SIPC does not 'insure' the underlying value of any security. The risk of market loss remains with the investor, just as the potential for market reward always remains with the investor." Idaho Department of Finance Director Gavin Gee said: "Even one red flag, such as this phony SIPC insurance claim, is a sure sign that investors need to beware. This case is one more example of the adage 'if it sounds too good to be true, it probably isn't true.'" SIPC notified the Idaho Department of Finance about the advertisements. On the next business day, the Idaho state agency issued a cease and desist (C&D) order against Network Financial Services, LLC, operating as Network Investments, and Shane Michael Turner, the individual controlling Network Financial. "I was extremely impressed with the speed of the Idaho Department of Finance response," Harbeck said. "State securities regulators refer to themselves as the local 'cop on the beat' for small investors. This was a perfect example of a nimble, immediate response to what could have become a serious problem." ABOUT SIPC From the time Congress created it in 1970 through December 2005, the Securities Investor Protection Corporation (http://www.sipc.org) advanced $585 million in order to make possible the recovery of $14.2 billion in assets for an estimated 624,000 investors. Although not every investor is protected by SIPC, the Securities Investor Protection Corporation estimates that no fewer than 99 percent of persons who are eligible have been made whole in the failed brokerage firm cases that it has handled to date. SIPC either acts as trustee or works with an independent court-appointed trustee in a brokerage insolvency case to recover funds. The statute that created SIPC rules provides that customers of a failed brokerage firm receive all non-negotiable securities that are already registered in their names or in the process of being registered. At the same time, funds from the SIPC reserve are available to satisfy the remaining claims of each customer up to a maximum of $500,000. This figure includes a maximum of $100,000 on claims for cash. ABOUT THE IDAHO DEPARTMENT OF FINANCE SECURITIES BUREAU The Securities Bureau of the Idaho Department of Finance administers and enforces several consumer and business protection statutes. In connection with the State of Idaho’s Uniform Securities Act (2004) and the Idaho Commodity Code, the Bureau regulates the sale of investment securities (e.g. stocks and bonds) and those individuals and entities (e.g. stockbrokers, investment advisers, small businesses) that offer investment opportunities to the public. The Bureau’s objectives in administering and enforcing these statutes include promoting the integrity and vitality of state and federal financial markets, protecting the investing public from fraudulent investment schemes, and assisting legitimate businesses in their efforts to raise capital in Idaho. SIPC PRESIDENT SIGNS COOPERATIVE AGREEMENT WITH TAIWAN COUNTERPART, MEETS OTHER INVESTOR COMPENSATION GROUPS WASHINGTON, D.C. – June 15, 2006 – The Securities Investor Protection Corporation (SIPC) announced today that it entered into a memorandum of understanding (MOU) on June 2nd with the Securities and Futures Investor Protection Center (SFIPC) of Taiwan in order to better protect investors in the event of a brokerage firm failure in both the U.S. and Taiwan. The presidents of the two groups signed the MOU in Taipei. SIPC was created by Congress to maintain a special reserve fund to help investors at bankrupt brokerage firms. SIPC President Stephen Harbeck said that the two organizations began work on the agreement last year during a conference in Taipei sponsored by the International Organization of Securities Commissions (IOSCO). Harbeck said: "We are planning for an event we hope never occurs: the failure of a major brokerage firm that has offices and customers in both Taiwan and the United States. We now have a framework to plan, communicate, and cooperate in the event of such a financial failure." SFIPC President Tsai-Hung Chen visited Washington twice to work out the details of the document. SIPC already has similar MOUS in place with its counterparts in the United Kingdom and Canada. After the signing ceremony in Taipei, Harbeck gave a presentation on June 6 to an Investor Compensation Fund Regulators meeting sponsored by the Securities and Futures Commission in Hong Kong. Representatives from Canada, India, Hong Kong, Thailand, and Malaysia were in attendance. The participants exchanged information about the various protection programs available to investors in each venue, and how those protections differed from each other. Harbeck said: "The more each Investor Compensation Fund learns about similar organizations around the world, the faster we will be able to sort out the inevitable jurisdictional problems which will arise in a financial crisis. The time to do so is before a crisis, not during a financial meltdown. SIPC hopes to replicate the Memorandum of Understanding process across the globe." ABOUT SIPC From the time Congress created it in 1970 through December 2005, the Securities Investor Protection Corporation (http://www.sipc.org) has advanced $585 million in order to make possible the recovery of $14.2 billion in assets for an estimated 624,000 investors. Although not every investor is protected by SIPC, SIPC estimates that no fewer than 99 percent of persons who are eligible have been made whole in the failed brokerage firm cases that it has handled to date. SIPC either acts as trustee or works with an independent court-appointed trustee in a fraud case to recover funds. The statute that created SIPC rules provides that customers of a failed brokerage firm receive all non-negotiable securities that are already registered in their names or in the process of being registered. At the same time, funds from the SIPC reserve are available to satisfy the remaining claims of each customer up to a maximum of $500,000. This figure includes a maximum of $100,000 on claims for cash. The Debt Adviser By Steve Bucci •Bankrate.com Dear Debt Adviser: My husband and I built a home a year ago. We both are working, have about $26,000 in credit card debt and are having a hard time getting rid of it. I looked into a second mortgage (The closing costs are $5,000.) and a home equity loan, but we don't have enough equity yet. Do you have any suggestions to get rid of this debt over the next five to seven years? Thanks. Kelly Dear Kelly: Congratulations on your new home. Because you mention a second mortgage and home equity loans, it sounds like you are trying to lower the interest rate on your $26,000 in credit card debt. As you found out, there are often costs involved with this type of borrowing that may not save you enough money to justify them. Still another thing to consider is that by stretching the debt out over a 30-year loan, you could be paying for these items long after their useful lives. You said it right the first time: Get rid of the debt. You don't want to learn to live with it! Let's explore some options, using Bankrate's "What will it take to pay off my credit card" calculator. You have a time frame of five to seven years in which you would like to pay off your debt. For illustration purposes, let's assume your annual percentage rate is 18 percent. If you want to pay it off in six years, for example, you will need to make monthly payments of $593 beginning today. In six years, you will have paid off the $26,000 balance -- and forked over an additional $16,696.18 in interest for a total of $42,696.18. Ouch! To reduce those interest charges, increase your monthly payment to $693 and you save $4,187.91 in interest charges and pay off the balances 15 months faster. Use the calculator mentioned above to play other "what-if" scenarios until you find an amount that fits your budget, but gets rid of the debt as soon as possible. Another tactic worth trying is to call the credit card companies and ask for a better interest rate and say that you are considering transferring the balance to another card issuer. You may qualify for a better rate! Study Bankrate's credit card rates tables to see what other offers are out there. If you have good credit and the company won't lower your rate, transfer your balance to a lower-rate card. Beware, though -- credit card balance transfers can be tricky. Regardless of the course you take, the objective is the same: Pay off your balance as soon as you can. The best way to know what is possible is to review your expenses and contrast them with your income. In other words, create a spending plan. Your mom would have called it a budget. It can be a pain, but it really works to help put you in control of where your money goes. Keep these tips in mind when you are choosing how you will pay off your debt. Stop charging and borrowing! You will never get out of debt unless you do this. A spending plan will help you avoid adding additional credit card charges while you are paying off the cards. A second mortgage is the same as an equity line or loan. They are all secured loans and your home is the collateral. Defaulting on the loan can put your house in jeopardy. Shop around for equity lines, since they typically have no or low up front costs. If you decide to go that route, make sure you are getting the best deal possible. A savings cushion should be a financial goal if you do not already have one. Strive for three to six months of expenses. However you do it, it will take a plan and discipline. It won't be easy but it will be worth it! Good Luck! The Debt Adviser, Steve Bucci, is the president of Consumer Credit Counseling Service of Southern New England. Visit CCCS for additional debt advice or click here to ask a debt question. Dear Dr. Don, This notice was in my last credit card bill: "As a reminder, the terms of your card member agreement for this account require that you make a minimum monthly payment each month. PLEASE REFER TO YOUR BILLING STATEMENT EACH MONTH FOR THE MINIMUM AMOUNT DUE. "Any payments you make in excess of the minimum payment due will further reduce your outstanding principal balance, but beginning with your July billing statement, such excess amounts will not be applied to the minimum payment due on future billing statements." Am I crazy or are they? David Dubious Dear David, The notice made perfect sense to me but I won't question your, or my, cognitive abilities. The credit card company is simply telling you that you can't rest on your laurels. If you pay more than the minimum this month, you can't use that as an excuse to pay less than the minimum payment next month. Minimum payments on your credit card are usually 1.5 to 2.5 percent of your outstanding balance. Your cardholder agreement will tell you how the company computes its minimum payment. As long as you have an outstanding balance, there will be a minimum payment due each and every billing cycle. It's always a good idea to pay more than the minimum payment, assuming your monthly budget allows. Try out Bankrate's calculator, "The true cost of paying the minimum," to see how making minimum payments costs you money. The table below shows an example of how making minimum payments keeps the debt outstanding for a long time and dramatically increases your interest expense. Outstanding balance: $12,000 Interest rate: 10.00% Minimum payment %: 2.00% Monthly payment: 2% minimum $240.00 $300.00 Total interest: $8,363.23 $3,587.53 $2,657.49 Loan payoff in months: 336 65 49 Loan payoff in years: 28 5.42 4.08 Dear Dr. Don, If I keep transferring balances to different cards to take advantage of low introductory APRs, does that hurt my credit rating? Marty Mover Dear Marty, Your credit report looks at your historical ability to handle credit. Your credit score is based on the information in your credit report. Playing musical chairs with balances doesn't reflect poorly on your ability to be responsible with credit. Instead, it reflects poorly on your willingness to be a long-term client of the credit card company. That might stop the next credit card company from sending you a teaser rate, not because you can't handle credit, but because you handle it so well. The real question to ask is, "Why can't you get current on your monthly spending?" Low-interest teaser rates give you the opportunity to put more of your monthly payment toward paying down principal instead of paying finance charges. The goal should be to get current on your cards. To do that you have to spend less than you make and use the difference to pay down your outstanding credit balances. That way when the music stops you're not left standing. Two things to manage when transferring balances are: the length of your account relationships and the amount of total credit lines available. Don't close the old account every time you open a new one because you'll lose documentation of these continuing account relationships on your credit report. On the other hand, if you have a lot of credit lines available, it becomes harder for the next creditor to justify extending you credit by opening the next account. Still, unused credit lines show that you have the ability to responsibly handle credit. I'm a big fan of voting with your feet when you're unhappy about the way a credit card company is treating you. Unfortunately, people with bad credit can't jump ship because they can't get better terms from the next credit card provider than they have with their current card provider. Being able to transfer balances on advantageous terms means you still have the option to vote with your feet and move on to the next credit card. Credit cards Wizard Clear Advantage MasterCard Introducing the new Wizard Clear Advantage MasterCard - the credit card with nothing to hide. Unlike many other credit cards, Wizard Clear Advantage has no hidden surprises. No annual fee - ever. 0% interest for six months on transferred balances*. No fees for ATM withdrawals, cash advances or overseas purchases. A low 12.4% rate on purchases AND cash (unlike some other low rate credit cards). Up to 55 days interest free. Find out more about the Wizard Clear Advantage MasterCard. Apply online today and get a decision in minutes. *Balance transfer introductory offer commences from date account is opened. Wizard Fast Card Apply today for the Wizard Fast Card and start enjoying the following benefits: No annual Card fee for the first year (saving you $25 p.a.). This fee is permanently waived if you spend $5,000 on the Wizard Fast Card every year. Enrol in Membership Rewards™ and earn one point for every dollar spent on your Card1. Points are redeemable for points in frequent flyer programs2, retail vouchers and much more. Select from two Membership Rewards options, Choices or Ascent, giving you the freedom to decide how you want to be rewarded A low 7.99% p.a. Balance Transfer Rate for the first six months. Reduce the amount of interest you may be paying on other cards by transferring the balance to your Wizard Fast Card3 Up to 55 days interest free on purchases4 An attractive interest rate of 16.99% p.a Plus, when used in conjunction with your Wizard home loan, the Wizard Fast Card can help pay off your home loan sooner. Wizard MasterCard If you're looking for a credit card that gives convenient access to your salary to withdraw cash, make purchases and pay your bills by direct debit, all at home loan rates, then the Wizard MasterCard linked to our Wealth Power Line of Credit is for you. See how using the Wizard MasterCard can also help save you thousands, through smart access to your property equity and maximising the benefits of direct salary crediting. Card Rate p.a. from Key Features First Year Fee Ongoing Annual Fee Wizard Fast Card 7.99% 16.99% Up to 55 days interest free Access to Membership Rewards program $0 $25 Wizard Clear Advantage MasterCard 0.00% 12.40% A low rate credit card with no annual fee, no interest for 6 months on balance transfers, and no transactional fees. $0 $0 Wizard MasterCard 7.22% A credit card at home loan rates providing easy access to your funds $0 $35 = variable rate American Express approval criteria applies. Subject to terms and conditions. Fees and charges apply. All interest rates are quoted as an Annual Percentage Rate. Fees, charges and interest rates are correct at 1 January 2006 and are subject to change. 1. Membership Rewards enrolment required. An annual fee will apply. Subject to the terms and conditions of the Membership Rewards program. 2. Selected carriers only. Subject to the terms and conditions of the American Express Membership Rewards program and Ascent partner frequent flyer programs. Frequent flyer program fee may apply. 3. If you transfer your balance from another credit card to your Wizard Fast Card you will pay 7.99% p.a. on the approved transfer amount for the first 6 months (your monthly payments will first repay the balance you have transferred before reducing other amounts, such as new purchases). Minimum payment requirements of the card account apply to balance transfers. There are no interest free days on balance transfers. 4. The Wizard Fast Card gives you up to 55 days interest free on purchases, depending on when your statement is issued, whether you have obtained a balance transfer and whether or not you are carrying forward a balance on your account from the previous statement period. There are no interest free days for cash Resort Data Processing's credit card interface partner, Southern DataComm (SDC), now offers high speed credit card authorizations and settlements via the Internet. An authorization at check-in that used to take over 30 seconds can now be done in less than 6 seconds! See "Overview of RDP Credit card authorization and processing". RDP now also provides tools for Payment Card Industry (PCI) Credit Card Compliance. SDC's new service, ProtoBase Express, uses SDC's own private IP network for sending and receiving credit card authorizations. This new service works in the following manner. A property employee uses the RDP system to swipe the guest's credit card for either an authorization or a sale. For advance deposits, the card number can be entered via the system. RDP sends the credit card number and other information to the SDC bridge workstation. The credit card information is encrypted by SDC bridge workstation for secure transmission. The encrypted information is sent to SDC's communication office via your normal Internet connection, which can be DSL, Frame Relay, T1, or any other constant connection. Your modem is not used, except as a backup in case your Internet connection is down. SDC decrypts the information and then relays it to your processor using their private network. The processor evaluates the transaction and sends back an approval or denial to SDC using SDC's private network. The evaluated transaction is encrypted and sent back to the property via the public Internet. The steps above are normally completed in a less than six seconds. The reduction in processing time can be attributed to the elimination of modem dialing and "handshaking." With the Internet, the packet of information is sent immediately, and the response is returned immediately. The following diagram depicts the steps listed above. The benefits of high speed credit card processing over the Internet include: Faster authorization times for advance deposits, check-in authorizations, and Internet reservations; Faster, more reliable settlements (credit card audits); Reduces charge-backs; Eliminates monthly charges attributed to a dedicated modem line; Eliminates "per-call" modem charges; Receive a lower transaction fee from your property's credit card processor by eliminating per call modem charges; and Purchasing ProtoBase Express. Each of these benefits is explored in greater detail below. Faster Authorization Times With ProtoBase Express, credit card processing time for authorizations and sales is reduced from approximately 30 seconds with a modem connection, to less than six seconds. This reduction in processing time can be attributed to the elimination of modem dialing and "handshaking." With the standard SDC interface, a clerk swipes a card at check-in for incidental authorization, immediately hears the modem dial out, and make a series of beeps and buzzes in order to connect to the processor. With Internet processing, the packet of information is immediately sent to the SDC private network via the Internet. There is no dial time or handshaking. During a busy check-in day, when the line at the front desk may be ten guests deep, this time saving credit card processing option could save each guest close to five minutes in line. And, anyone who travels knows that the last thing that makes them feel welcome at a property is a line to check in. The speed of credit card authorizations and sales with ProtoBase Express is comparable to major retail outlets such as Target or Wal-Mart. At these outlets, the customer's card is swiped for a sale, and the receipt is printing immediately. This same technology is now available for your property through ProtoBase Express. Faster, More Reliable Settlements During the night audit, properties normally perform a credit card audit and deposit (settlement). The settlement is the critical step in depositing credit card payments into the property's bank account. One of the most costly mistakes made at a property is a "double-settlement" due to a modem disconnect. With ProtoBase Express, the property has a full-time Internet connection making it highly unlikely that a settlement would be processed twice. Any property that has experienced a double settlement knows that this benefit alone makes ProtoBase Express a viable option. Reduce Charge-Backs Another costly and time consuming credit card processing problem is a charge-back. A credit card charge-back can happen for any number of reasons; from guest fraud to honest mistakes. One avoidable reason for guest charge-backs is a double charge due to a modem disconnecting. If a property employee attempts to run a card and the sale is completed without his or her knowledge, it is highly possible that the employee will run the sale again. In this scenario, the guest will dispute the charge, causing the property an expense (normally $15-$25) and untold time in research, correspondence, and mending the relationship. Again, ProtoBase Express eliminates the modem line, making credit card processing more reliable. Eliminate Modem Line Charges Whether your property uses the standard SDC interface or processes credit cards outside of the RDP system, the property pays for extra phone lines dedicated to processing credit cards. By installing ProtoBase Express, the property uses the Internet for credit card processing, thereby eliminating any monthly charges attributed to dedicated modem lines. This savings alone could add $400 - $800 per year to the property's bottom line. Eliminate Per-Call Modem Charges Many RDP properties, specifically those in the Caribbean, are charged an access fee (or long distance charges) every time the modem dials out for a credit card authorization or sale. These access fees add up to a significant monthly expense. With ProtoBase Express, the modem is eliminated, as well as any per-call charges. Receive a Lower Transaction Fee RDP has found that many credit card processing contracts include a 1 to 4 cent charge per modem connection. Many times, this charge can be reduced or eliminated by installing ProtoBase Express. Purchasing ProtoBase Express High-speed Internet credit card processing is available immediately from Southern DataComm. This costs associated with this service include a $350 one-time installation fee and monthly fees negotiated based on property size. To purchase ProtoBase Express, please contact the Southern DataComm sales representative directly: Karen Rupp: (727) 431-4419. You can also call RDP sales for general questions at 970-845-1140. Related links appear below. RDP-Southern DataComm (SDC) Credit Card Interface Overview Southern DataComm (SDC) Technical Support Overview (SDC Support Phone: 877-732-1799) RDP Tools now available for Payment Card Industry (PCI) Compliance Changing Credit Card Processors List of approved processors SDC Merchant Activation Form (Version Sept 2005 - Requires Adobe top view or print) High speed authorization available via the Internet Southern DataComm homepage Other RDP Interfaces Other new RDP Modules New Module Name & Link Availability* Requires RDPWin Other Requirements Adding RDPWin for Existing RDP Customers Now Yes Click Here For RDPWin Details Housekeeping Forecasting, Scheduling, and History Now Yes None Work Orders & Equipment / Room Inventory / Asset Management Now Yes None Wireless or Wired Internet Access and Billing Now No Bridge Computer Booking Pace and Occupancy Forecasting Now No Crystal Reports Customer Relationship Management (CRM) / Guest Rewards Now Yes None Room Key Interface - VingCard Vision 3000 Now No Bridge Computer Virtual Store - Sell Other Items Using Internet Reservation Module Now No Internet Reservation Module (IRM) Messaging - To Do List - Trace System Now Yes None Change Tracking Using Pervasive Audit Master Now No Pervasive Audit Master Product Video Checkout From Room Now No Movie Billing Interface Activity Availability for Itinerary and Virtual Store Now Yes None Internet Reservation Module Now No Win2003 Bridge Server Global Distribution System Interface (GDS) Now No Bridge Computer Fast Credit Card Processing Via Internet Now No Installed by SDC Expedia Direct Connect - With RDP GDS 2-Way Interface Dec. 2006* Yes None Travel Insurance Interface Dec, 2006* Yes None Wait List, Denial Tracking, and Reservations Quotes Dec. 2006* Yes None * Availability dates are an estimate and not a guarantee. RDP is offering special discounts to those customers who order particular modules currently under development early and offer the opportunity to help design and develop those modules. All prices are in US dollars and are "per property." For example, if you own three RDP systems, you must purchase a module three times. However, RDP does offer multi-property discounts. Please call RDP Sales at 970-845-1140 if you are interested. Hotel / Resort Software OverviewResort Data Processing (RDP) software has been installed since 1981 at over 1000 locations worldwide (see customer list). Please use the links below to learn more about RDP software for Hotels and Resorts. If you are renting homes or condominiums on a short term basis, please start with Vacation Rental Overview. Timeshare properties should begin with our Timeshare Resort Overview. Our Campground management system is also available. Our systems are fully integrated, so all features in our hotel system are available for vacation rentals and timeshare resorts, and vice versa. A printed brochure and pricing is available by calling 970-845-1140 or download the brochure in Microsoft Word or Adobe format. Core RDP Modules Core RDP Modules Interfaces Technology Overview - RDPWIN Sample Screens Sample Reports Reservations Rates & Yield Management Packages Front Desk & Night Audit Groups & Conferences Travel Agents/Wholesalers Guest History & Marketing Housekeeping Scheduling Integrated General Ledger E-Mail Marketing Crystal Reports Installation & Training Hardware Requirements Internet Reservation Module (IRM) Vacation Rentals (Condo Accounting) Timeshare & Interval Ownership Campground Management Guest Itinerary & Concierge Activity Scheduling (bike rentals, etc) Wait List / Denial Tracking / Res Quotes Frequent Guest/Rewards Work Orders & Asset Management Booking Pace & Forecasting Virtual Store On Internet Messaging/To-Do List Change Tracking 24-Hour Support Customer List RDP Headquarters in Vail Overview Of All Interfaces Global Distribution System (GDS) Expedia Direct Connect GDS Central Reservations SDC Credit Card Interface High Speed Credit Card Authorization In-Room Video Checkout Call Accounting Phone Actuator (On/Off) Point Of Sale Voicemail Maid-Phone (Housekeeping) Environmental Back-Office Accounting Nomadix Wireless Internet Billing Room Key (Ving Card, etc.) RDP Partners and Alliances Vacation Rental and Condo-Hotel Features & Links Maximizing Owner Satisfaction and Increasing Management Revenue since 1981 Data Flow From Reservations to Owner Statement Equalize owner rental revenue Powerful Reservation Board (Tape Chart) Mix of Rental Types - Condos, Houses, Hotels, Timeshare Internet Reservations with Unit Pictures and Virtual Tours Live Demonstration of Internet Reservations E-mail Integration for Guests, Owners, etc. Short Term and/or Long Term Rental Lock-Off Units Allowed Manage Units Not in the Rental Pool Extensive Custom Reporting with Crystal Reports Work Orders & Asset Management Housekeeping Forecast, Schedule, & History Reservation Quotes, Wait List, and Denial Tracking Customer Relationship Management (CRM) Travel Agent Commissions Deducted Unlimited Charges Per Owner Owner Recurring Charges Various Billing Cycles - Monthly, Quarterly, etc. Split Revenue Across Billing Period Fast Production of Owner Statements Month-to-Date & Year-to-Date Totals Per Owner Statements Can Be Reprinted Forever Print Checks to Owners Trust Accounting and Owner History Automatic Interface to General Ledger (Back Office) Integration to GDS, POS, Credit Cards, etc. Accounts Receivable With Aging Print or E-mail Overdue Notices Automatically IRS 1099 Year-End Reports Room Moves Pay Correct Owner Yield Management Integrated Sharewith Folios or One Guest With Multiple Folios Taxes Adjusted for Length of Stay and Location Timeshare and Interval Ownership Allowed All RDP Hotel Features Available for Owner Systems Customer List and Quotes Repair Bad Credit Debt Consolidation Debt Consolidation Debt Consolidation Services Debt Consolidation Program Debt Consolidation FAQs ___________________________ Debt Management Center Learn all there is to know about debt, including 'good' debt and 'bad debt', how to manage debt and how to avoid facing a debt crisis. Money Management Center Learn how to assess your financial health and net worth and all about setting and reaching your financial goals. Privacy Disclaimer Repair Bad Credit - Fowler and Fowler Credit and Debt Solutions wants you to know what bad credit costs! The majority of individuals are unaware of the extent to which a bad credit history affects their ability to borrow. It is not unusual for us to hear comments like "my credit rating couldn't be too bad - the bank has loaned me money". What people don't always ask is - at what cost? A damaged or bad credit rating means that you will pay a lot more for the things that you buy and the money that you borrow - much more! What does your credit report say? Find out today. Click here for a FREE online credit evaluation! No obligation - no cost!! The examples illustrated below will demonstrate just how severe the added costs resulting from bad credit are. Example 1: Automobile Financing Those individuals with bad credit who are making payments on a typical automobile loan are likely paying between $5 - $9,000 more in interest. They are paying this solely because they had 'bad credit' when taking out the loan. See the chart below. $20,000 automobile paid over 5 years: Credit Status Rate Payment Cost of Bad Credit Perfect 10% $424.94 $0.00 Mild Damage 14% $465.37 $4,722.54 Damaged 20% $529.88 $8,593.30 Example 2: Mortgage on a Home Bad credit in auto financing can severely impact what that car costs, however, it pales in comparison to what bad credit will cost you when a home is involved. An average home can cost anywhere between $50,000 and $130,000 more in mortgage interest for those purchasing the home with 'bad credit'. See the chart below. $100,000 home paid over 30 years: Credit Status Rate Payment Cost of Bad Credit Perfect 7% $655.30 $0.00 Mild Damage 9% $804.62 $50,155.24 Damaged 12% $1.028.61 $130,791.63 These two examples clearly show, in dollar terms, the cost of having 'bad credit'. The bottom line - bad credit always costs you! This rule does not only apply to automobiles and homes - it applies to absolutely everything you buy and every dollar you borrow. An individual with bad credit will pay more every time. Why should you repair bad credit? You should repair bad credit immediately and save yourself thousands of dollars in your future! Do you understand what credit is? Click here for a FREE online credit evaluation! No obligation - no cost!! Sign up for credit repair services today! To understand more about our credit repair services, learn more here. Credit Repair Debt Consolidation Debt Consolidation Debt Consolidation Services Debt Consolidation Program Debt Consolidation FAQs ___________________________ Debt Management Center Learn all there is to know about debt, including 'good' debt and 'bad debt', how to manage debt and how to avoid facing a debt crisis. Money Management Center Learn how to assess your financial health and net worth and all about setting and reaching your financial goals. Privacy Disclaimer Many people are unclear about why they need to restore their good credit rating. There are obvious reasons, such as being unable to borrow due to bad credit. However, repairing your credit history is about a lot more than simply borrowing. Restoring a good credit rating is essential for those individuals who are negatively impacted by a poor credit history. The most important thing to understand is that having bad credit costs you. It costs you a lot of money. Improving credit can save an individual thousands and thousands of dollars. Every item you buy, whether it be a car, house or new outfit, costs you more when you have bad credit. Do you need to repair your credit? Are you unsure about what your personal credit report says? Click here for a FREE online credit evaluation! No obligation - no cost!! Click here to order credit repair services online now!!! Learn more about our services here. Managing debt and working your way out of debt is much, much more difficult for those with bad credit. Restoring your credit rating can help. It can help you get yourself out of debt, and stay out of debt. Do you even know if you need to fix your credit? Do you know what your credit history looks like? Do you know if your credit information is correct? The odds are that you don't, and it may be costing you a lot of money - without you even knowing it. Fowler and Fowler Credit and Debt Solutions, Inc. wants everyone to understand some important facts about credit, credit scores, and credit repair services. Learn more about Fowler and Fowler Credit and Debt Solutions. There are three major national credit reporting agencies. They are often referred to as CRAs. Most people don't know that these agencies are not government agencies. They have nothing to do with repairing credit. Indeed, restoring good credit is exactly what they are NOT about. These agencies are multi million dollar, for profit credit corporations. They have no interest in your positive credit history, and instead gather and sell your personal, private (or not so private!) credit information. They sell this information to creditors, landlords, insurers, employers, and many other companies that in turn solicit you for insurance, credit, and other offers. This is how they make their money. These agencies do not work for you. They work for your creditors. The more credit checks that are done, the more money they make. Is fixing your credit in their best interests? Absolutely not. Your personal credit history details are also sold to telemarketing companies and mailing lists. They do not require your permission, and often sell your information without your knowledge. These agencies acknowledge that errors do occur on consumer credit reports. They are under no obligation to correct them, unless you ask them to - and prove that they should. This is only one reason why fixing your credit history can be so very important. Non profit credit counseling services are, in effect, "sponsored" by lending companies and major banks. They are, essentially, working for their sponsors - not for you. Fowler and Fowler's credit repair services work for YOU! Our business is helping you to restore your positive credit rating, and it is YOU that we work for. We all work for those who pay our bills. They work for your creditors - we work for YOU. Get started today! Request your FREE credit evaluation here. If the goal of the credit reporting agencies was to ensure accuracy of information, and maintain your credit standing, they would send you a copy of your credit report every year validating their information. They don't. Instead, they can report what they want - forget to update their records - show no concern for the accuracy of their information - and your credit history pays the price. It is up to you to ensure the accuracy of your information, and to prove that their mistakes are mistakes. The choice is yours to make. Our repair services have helped hundreds of people regain control of their credit status, and we welcome the opportunity to help you! Fowler and Fowler Credit and Debt Solutions, Inc. believes that our innovative credit program, Credit Smart, and our state-of-the art Repair services provide the answer to all your credit problems!