Shoppers Beware: Retail Credit Card APRs Average 23%

Open WalletBefore you take the bait from the cashier and sign up for a new store credit card, be sure to read the fine print first.

Retail credit cards boast average annual percentage rates of 23.23%, according to a CreditCards.com analysis of cards from 36 of the nation’s biggest retailers.

That’s more than eight percentage points higher than the average credit card APR of 15.03%.

“Retailers dangle incentives like 15% off a purchase to encourage consumers to sign up for their credit cards,” said Matt Schulz, senior industry analyst at CreditCards.com. “But the much higher interest rates far outweigh the one-time discount for anyone who carries a balance.”

If you’re confident you will never miss a payment and you think the retailer’s rewards program would provide you with savings, then it could be a fine deal. But if there’s even a small chance you’ll carry a balance, you could end up paying big money in interest as a result.

Customers with a 23.23% APR credit card, for example, would be hit with $840 in interest if they carry a $1,000 balance and only make minimum monthly payments — and it would take them 73 months to repay that balance. That compares to $396 in interest for the average credit card.

Jeweler Zales’ store card topped the list, with a rate of up to 28.99%, Office Depot and Staples both offer cards with rates as high as 27.99%, and Best Buy credit cards come with rates ranging between 25.24% and 27.99% depending on your credit.

Need to transfer a high rate credit card balance without any balance transfer fees, to a lower rate card? This is possible at First Financial, where our credit card rates are as low as 10.9% APR and we have no balance transfer fees!* And for a limited time – if you are approved for a balance transfer of $5,000 or more to our VISA Platinum Credit Card, you will receive 10,000 bonus CURewards Points! You can apply for the balance transfer by stopping into any branch or calling 866.750.0100 to be sent a balance transfer request form.**

If you have a great deal of debt, we also have a free, anonymous online debt management tool called Debt in Focus. In just minutes, you will receive a thorough analysis of your financial situation, including powerful tips by leading financial experts to help you control your debt, build a budget, and start living the life you want to live.

*APR varies from 10.90% to 17.90% when you open your account based on your credit worthiness. This APR is for purchases, balance transfers, and cash advances and will vary with the market based on the Prime Rate. Subject to credit approval. No Annual Fee. Other fees that apply: Cash advance fee of 1% of advance ($5 minimum and $25 maximum), Late Payment Fee of up to $25, Foreign Transaction Fee of 1% plus foreign exchange rate of transaction amount, $5 Card Replacement Fee, and Returned Payment Fee of up to $25. A First Financial membership is required to obtain a VISA Platinum Card and is available to anyone who lives, works, worships, or attends school in Monmouth or Ocean Counties.

**Additional bonus points will be reflected within 30 days from the balance transfer approval and can be viewed when signed into your VISA Platinum Card Account online through Online Banking. In order to redeem bonus points, an offer reference must be made to a First Financial representative. Bonus points can only be redeemed one time per member, on an approved balance transfer of $5,000 or greater during the promotional period of 4/28/14 – 12/31/14.

Article Source: Blake Ellis for CNN Money, http://money.cnn.com/2014/08/07/pf/retail-credit-cards/index.html?iid=SF_PF_River

 

What’s New? EMV Chip Card Technology FAQs

emv_chip_2The days of the credit card’s magnetic stripe appear numbered, with special-chip, or EMV, credit cards poised to immigrate onto America’s payments landscape. EMV-enabled cards, named for developers Europay, MasterCard and Visa, have an embedded microprocessor chip that encrypts transaction data differently for each purchase. Some chip cards require a personal identification number to complete a transaction, while others only require a signature. EMV is widely used in Europe and Asia and is steadily being adopted as the standard type of credit card worldwide. Everywhere, that is, except the U.S. – but maybe not for long.

What is EMV?
EMV chip technology is becoming the global standard for credit card and debit card payments. Named after its original developers (Europay, MasterCard® and Visa®), this smart chip technology features payment instruments (cards, mobile phones, etc.) with embedded microprocessor chips that store and protect cardholder data. This standard has many names worldwide and may also be referred to as: “chip and PIN” or “chip and signature.”

What is chip technology?
Chip technology is an evolution in our payment system that will help increase security, reduce identity theft and fraud and enable the use of future value-added applications. Chip cards are standard bank cards that are embedded with a micro computer chip. Some may require a PIN instead of a signature to complete the transaction process.

How does EMV chip technology work?
The EMV-enabled device will communicate with the chip inside the smart card to determine whether or not the card is authentic. Generally, the terminal will prompt the cardholder to sign or enter a PIN to validate their identity. This process enhances the authentication of both the card and cardholder, effectively reducing the possibility that a business will accept a counterfeit card or be held liable for a fraud-related chargeback.

What makes EMV different than the traditional magnetic stripe card payment?Simply put, EMV (also referred to as chip-and-PIN, chip-and-signature, chip-and-choice, or generally as chip technology) is the most recent advancement in a global initiative to combat fraud and protect sensitive payment data in the card-present environment. A cardholder’s confidential data is more secure on a chip-enabled payment card than on a magnetic stripe (magstripe) card, as the former supports dynamic authentication, while the latter does not (the data is static). Consequently, data from a traditional magstripe card can be copied (skimmed) with a simple and inexpensive card reading device – enabling criminals to reproduce counterfeit cards for use in both the retail and the CNP environment. Chip (EMV) technology is effective in combating counterfeit fraud with its dynamic authentication capabilities (dynamic values existing within the chip itself that, when verified by the point-of-sale device, ensure the authenticity of the card).

What other incentives are there to accept chip cards?
In addition to the reduction of fraud and related chargebacks, there are other cost savings associated with EMV acceptance. The payment brands are doing their part to ensure that chip-bearing customers can pay at chip-enabled businesses. For example, Visa and MasterCard have issued upcoming rules and guidelines for processors and merchants to support EMV chip technology. Another Visa and MasterCard ruling is the liability shift. Once this goes into effect, merchants who have not made the investment in chip-enabled technology may be held financially liable for card-present fraud that could have been prevented with the use of a chip-enabled POS system.

Is this technology unique to the United States?
No. The chip technology standard for payment was first used in France in 1992. Today, there are more than 1 billion chip cards used around the world. The U.S. is one of the few industrialized nations that have not fully transitioned to this technology standard.

Why invest in chip card acceptance now?
Preventing the growth of fraudulent activity is one of the main reasons the industry is moving toward EMV technology. Chip cards make it difficult for fraud organizations to target cardholders and businesses alike. As a result, more and more chip cards are being introduced by U.S. financial institutions in order to support and switch over to this technology.

To cover all your financial bases, enroll in one of our First Financial’s ID Theft Protection product plans – with our Fully Managed Identity Recovery services, you don’t need to worry. A professional Recovery Advocate will do the work on your behalf, based on a plan that you approve. Should you experience an Identity Theft incident, your Recovery Advocate will stick with you all along the way – and will be there for you until your good name is restored.

Our ID Theft Protection options may include some of the following services, based on the package you choose to enroll in: Lost Document Replacement, Credit Bureau Monitoring, Score Tracker, and Three-Generation Family Benefit.* To learn more about our ID Theft Protection products, click here and find out how you can enroll today – as well as get started with your first 90 days free!**

*Identity Theft insurance underwritten by subsidiaries or affiliates of Chartis Inc. The description herein is a summary and intended for informational purposes only and does not include all terms, conditions and exclusions of the policies described. Please refer to the actual policies for terms, conditions, and exclusions of coverage. Coverage may not be available in all jurisdictions.

**Available for new enrollments only. After the free trial of 90 days, the member must contact the Credit Union to opt-out of ID Theft Protection or the monthly fee of $4.95 will automatically be deducted out of the base savings account or $8.95 will be deducted out of the First Protection Checking account (depending upon the coverage option selected), on a monthly basis or until the member opts out of the program.

*Click here view the original article sources by Chase Paymentech and Bankrate.

Debit vs Credit Cards: Which is safer to swipe?

holiday-credit-or-debitWhile the tens of millions of Target shoppers who had their credit and debit card information stolen likely won’t be on the hook for any fraudulent transactions that may occur, debit card users could face much bigger headaches than credit card users.

That’s because debit and credit cards are treated differently by consumer protection laws. Under federal law, your personal liability for fraudulent charges on a credit card can’t exceed $50. But if a fraudster uses your debit card, you could be liable for $500 or more, depending on how quickly you report it.

“I know people love their debit cards. But man oh man, they are loaded with holes when it comes to fraud,” said John Ulzheimer, credit expert at CreditSesame.com, a credit management website.

Plus, if someone uses your credit card, the charge is often credited back to your account immediately after it’s reported, Ulzheimer said. Yet, if a crook uses your debit card, not only can they drain your bank account, but it can take up to two weeks for the financial institution to investigate the fraud and reimburse your account.

“In the meantime, you might have to pay your rent, your utilities and other bills,” said Beth Givens, director of the Privacy Rights Clearinghouse. The organization recommends that consumers stick to credit cards as much as possible.

Whichever card you decide to swipe, here are ways to protect yourself from scammers.

Be vigilant with your accounts: The Target hack is just the latest in a long history of data breaches, and it likely won’t be the last.

As a result, you should check your debit and credit account activity at least every few days and keep an eye out for any unfamiliar transactions. If you notice anything fishy, notify your financial instituion or credit card company immediately.

“Waiting until the end of the month to check out your credit card statement for fraudulent use is a relic of the past,” Ulzheimer said. “Fraud is a real-time crime, and we as consumers have to be constantly engaged.”

Set your own fraud controls: Financial institutions have their own internal fraud controls, but some transactions can slip through the cracks, said Al Pascual, senior analyst of security risk and fraud at Javelin Strategy & Research.

Many financial institutions will let you set alerts for account transactions. Even better, some allow you to block transactions that are out of the ordinary for you, such as for online purchases at a certain kind of retailer or for any purchases over $500.

“We believe that consumers are going to know best as to how to protect their account,” he said. “They know their own behaviors.

Did you know that First Financial has ID Theft Protection services? When you enroll in one of these services, one of the benefits you’ll receive is an automatic alert sent to you via email and text message, allowing you to confirm whether or not any recent activity is fraudulent. With Fully Managed Identity Recovery services from First Financial, you don’t need to worry. A professional Recovery Advocate will do the work on your behalf, based on a plan that you approve. Should you experience an Identity Theft incident, your Recovery Advocate will stick with you all along the way – and will be there for you until your good name is restored. Click here to learn more and get started today!

Watch out for fraud hotspots: You should be especially wary of using a debit card online and at retailers more vulnerable to fraud.

Gas stations and ATMs are hotspots for so-called “skimmers,” or machines that scammers install to capture your card information. Watch out for ATM parts that look unusual and always cover your hand when typing your PIN in case a camera is watching, said Shirley Inscoe, a senior analyst with the Aite Group.

Don’t let your guard down: If you think your information has been compromised, don’t assume everything’s fine after a few months. Stolen card information is often sold to a variety of groups on the black market who may hold onto it for months or even years.

“Many times these fraud rings will wait until the news dies down and people have forgotten about it before they use that data,” Inscoe said. “It may not be used until next winter, so it really is a good idea for people to monitor their activity.”

If you fall victim to ID Theft, don’t panic – First Financial is here to help! Report the incident regarding any of your First Financial accounts immediately, by calling us at 866.750.0100 or emailing info@firstffcu.com

*Article by Melanie Hicken of Yahoo Finance – click here to view the article source.

This Incredibly Common Practice Could Tank Your Credit

ccsRevolve a balance on your credit cards? It’s something many of us do, especially as the holiday shopping season kicks into high gear. But consider yourself warned: It could also be viewed as a red flag by lenders, especially if you’re paying down a smaller share of your debt each month.

Credit bureau TransUnion came out with a new product it calls CreditVision, which gives lenders a two-and-a-half year look back window at how much of your available credit you use and whether you revolve a balance from month to month.

The conventional wisdom is that as long as you keep your credit utilization — the ratio of your balance to your credit limit — under 30% and make your payments on time, it’s OK to roll over a balance from month to month. But TransUnion says people who don’t pay their balance in full every month, which it calls “revolvers,” are up to three times more likely to fall behind on a new loan within two years than people with otherwise similar risk profiles who pay off their credit cards entirely every month, which it calls “transactors.” Therefore, it might be a good idea to pay your balances in full more often than not if you’re looking to get some kind of loan in the future.

“Without the data available in CreditVision —historical balances and actual payment amount — it is very difficult, and inaccurate, to determine whether consumers are transactors or revolvers,” says Charlie Wise, vice president in the financial services business unit of TransUnion.  ”Our research has shown that consumers who are transactors are significantly lower risk on new loans than consumers who are revolvers and have lower subsequent delinquency rates on new loans.”

Although Wise says this doesn’t mean lenders avoid people who revolve balances, but serial balance-carriers should take note. “A consumer’s payment behavior on their credit cards and loan accounts may in fact impact their credit score,” Wise says, once TransUnion starts offering scoring models that incorporate this historical data later in the quarter.

With the introduction of CreditVision, all of the big three credit bureaus now give lenders the ability to take a deep dive into your past charging and payment history.

Equifax came out with a product called Dimensions in August that gives lenders a two-year look back. Among other uses, the company says lenders can pinpoint customers most receptive to balance-transfer pitches and determine how much more debt they can take on before they can’t keep up with their payments anymore.

Experian has offered something similar for a couple of years now as part of its TrendView product. It lets lenders see if people are paying off their cards in full every month, carrying balances or “rate surfing,” transferring balances from one teaser rate to another.

“It can be good or bad, depending on what they’ve been doing,” says Trevor Carone, Experian’s senior vice president of sciences and analytics. If they’ve been paying down their debt, lenders now have proof of that, which is particularly good for people who are wiping out a substantial debt quickly.

On the other hand, if your balances are growing from month to month or if your payments have dropped to just the minimum, “That’s a sign of risk, and lenders will take that into consideration,” Carone says.

It’s a double-edged sword if you’re trying to get a handle on your debt. While it’s great if you’re making strides towards knocking out a big balance, it also means you’re more likely to be targeted for new offers which could lead to temptation and we don’t need an invitation to rack up more debt.

Just over 38% of Americans revolve holiday credit card debt, according to Odysseas Papadimitriou, CEO of industry site CardHub.com, and we’re on track to end this year a collective $41.2 billion deeper in credit card debt this year. For the 13% of Americans surveyed by Consumer Reports last November who were still paying off their holiday shopping bills from 2011, this new visibility into their debt could be bad news.

“Short-term changes, if they’re seasonal — lenders expect that,” Carone says. ”If your behavior is persistent for six months or more, it becomes more predictive.”

If you run up a balance around the holidays and then pay it off over the course of a few months, a lender can predict that you’ll continue to behave that way in the future. But if the amount you’re paying on those bills drops as the months go by, or if you pile this year’s Black Friday splurges onto last year’s still-existing debt, it  might not be appealing to see that — even if you never miss a payment.

Don’t forget about our free, online debt management tool, Debt in Focus. In just minutes, you will receive a thorough analysis of your financial situation, including powerful tips by leading financial experts to help you control your debt, build a budget, and start living the life you want to live. 

Click here to view the article source by Martha C. White of Time.com.

3 Money Mistakes that Can Land You in Debt

ccdebtWe’ve all heard the following personal finance advice:

  • “Don’t spend more than you make.”
  • “Pay your credit card off at the end of every month.”
  • “If it sounds too good to be true, it probably is.”

While it’s all good advice, following these basic budget rules is easier said than done. Incurring debt can happen quickly (unexpected medical bills) or gradually over time (spending more than you make each week), and hurt your credit score and your financial future.

Here are three major money mistakes to be avoided at all costs.

Money Mistake #1: Making Money Decisions Not Based on Facts

It can be alluring to transfer outstanding credit card debt to a card offering a 0% annual percentage rate (APR) to help lower the payments and make it easier to pay off the balance. However, experts warn 0% cards often come with added and fees and charges that make the process even more costly.

“There’s also an excellent chance the APR going forward, after a particular grace period, is going to be at least as high as it was before,” says Mike Sullivan, chief education officer at Take Charge America.

“People need to be honest with themselves,” he adds. Before transferring any debt, take the time to read all the fees, rate hikes and charges and then do the math to determine if transferring balances will actually save money.

Money Mistake #2: Not Having the Right Credit Card

Making rash decisions without taking into account the long-term monetary implications is also a source of trouble.

We’ve all been on an airplane when the flight attendants come down the aisle with a stack of credit card applications that promise enough miles for a free flight just for signing up today, right this minute. The same thing happens when you’re at the checkout counter at any retailer and you’re offered a discount and “loyalty rewards” if you sign up for the company card. Sounds good enough—both offers will save you money, right? That is the wrong assumption, says Sullivan.

“There’s a psychological factor that explains this behavior,” he says. “The less people know about a given topic, the more they assume they understand it fully. It’s human nature, and it could end up costing you a fortune if you’re not careful.”

Having the right credit card for your situation is critical to your financial success. For instance, if you are an avid traveler, you might want a card that doesn’t add foreign exchange fees, or if you drive a lot, look for one that offers bonus points for fill ups.

Experts say the best way to get the right card is to compare rates, benefits and services that best fit your needs. There are a variety of websites that help compare credit cards and don’t be scared to call a company and ask about certain cards if you have questions.

Here at First Financial, our VISA Platinum Credit Card comes fully loaded with rates as low as 10.9% APR, no balance transfer fees, no annual fees, CURewards redeemable for travel, merchandise items, and merchant gift cards, and so much more! Apply online or stop into any one of our branches to get started today.*

Money Mistake #3: You Don’t Take Out Responsible Loans

Certain purchases tend to require taking out a loan: college, a home and a car. And not all debt is considered bad debt, unless of course, you take out an irresponsible loan.   

According to Sullivan, a major mistake many people make is financing their auto loan through a car dealer.

“In all likelihood, you’re not getting the best deal through the dealer,” he says. “People tend to skip the research and just go with whatever the car dealer says is the best deal. You’ll likely end up spending a lot of extra money paying for even more money.”

The same goes when taking out a mortgage. This lending process can be long and complex, and oftentimes people don’t understand the terminology or the lending terms.  Many people aren’t entirely aware of what a “point” is, says Sullivan, and this can hurt them. When it comes to mortgages, “discount points” are a type of pre-paid interest in which one point is equivalent to one percent of the total loan amount. The idea is to reduce the interest rate on a loan and get a lower monthly payment in exchange for an up-front payment. But in reality, you could end up paying more than you would for a loan with a higher interest rate.”

The goal is to be completely aware of your financial situation, and to make decisions based on facts about what you can and can’t spend. Do your homework and know all of the available options before selecting one option over another. And don’t forget to agree to a loan that you understand and can afford.

Don’t forget about our free, online debt management tool, Debt in Focus. In just minutes, you will receive a thorough analysis of your financial situation, including powerful tips by leading financial experts to help you control your debt, build a budget, and start living the life you want to live. 

Click here to view the article soure by Ann Hynek, published on September 06, 2013 for FOXBusiness.

*APR varies from 10.90% to 17.90% when you open your account based on your credit worthiness. This APR is for purchases, balance transfers, and cash advances and will vary with the market based on the Prime Rate. Subject to credit approval. No Annual Fee. Other fees that apply: Cash advance fee of 1% of advance ($5 minimum and $25 maximum), Late Payment Fee of up to $25, Foreign Transaction Fee of 1% plus foreign exchange rate of transaction amount, $5 Card Replacement Fee, and Returned Payment Fee of up to $25. A First Financial membership is required to obtain a VISA Platinum Card and is available to anyone who lives, works, worships, or attends school in Monmouth or Ocean Counties.

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5 Credit Card Tips for New Grads

American college students tend to have a rough time with credit cards. Without much real-world personal finance experience, many spend beyond their means and graduate with credit card debt. And even for those who are lucky enough to complete school without debt, the threat continues to loom after graduation.

Young man sitting at a table in front of a laptop holding a credit card © Jack Hollingsworth, Blend Images, Getty ImagesSo how can recent graduates enjoy the convenience and security of credit cards without getting into trouble with debt? Here are a few tips:

1. Keep it simple. It is easy to get caught up in the hype promoting credit card perks and rewards, but these benefits are not worth it if they lead to debt. Instead, recent graduates should focus on finding cards with the fewest fees and the simplest terms.

2. Always pay your balance in full. This is the single most important piece of advice that can be offered. Those who pay their entire statement balance each month avoid costly interest charges, and there isn’t a better time to get in this habit than after graduation. And the lesson of living within your means, instead of on hoped-for future earnings, applies well beyond credit cards.

3. Get a card where you bank. The easiest way for new grads to manage a credit card account is to open the account at the same institution where they keep their checking and savings accounts. Since most retail banks and credit unions offer credit cards, customers are able to manage all of their accounts from one website. Living within your means then becomes a simple matter of ensuring that the outstanding credit card balance is less than the funds in their checking account. In addition, paying bills is just a transfer of funds between two accounts within the the same institution.

Check out First Financial’s Graduate Credit Card with a guaranteed $500 limit!* Higher limits may be available depending on income, additional credit, and other criteria. Stop into any one of our branches or give us a call at 866.750.0100 for more information!

4. Don’t get too many credit cards. Recent graduates should focus on managing their money responsibly, not acquiring new accounts. Therefore, limiting yourself to one or two credit cards is the best strategy until you’ve gotten in the habit of making sound personal finance decisions.

5. Start saving now. It’s a tough job market out there for new graduates, but many are still finding great jobs. And when paychecks start coming in that are an increase from pre-college earnings, it is easy to get excited. Graduates need to save their money for the time that they may be between jobs for several months. And if all goes well, those savings can eventually fund a retirement plan, or a down payment on a home mortgage.

New college graduates need to step into the world of credit cards with extreme caution. By taking a conservative path for now, it will be easier to build the high credit scores necessary to take advantage of the fancy reward cards later.

Check out some of the other exclusive offers First Financial has just for recent college graduates*:

  • Savings Account
  • Checking Account
  • Auto Loan
  • Bridge Loan (to help “bridge” the gap between college and setting up your new life)
  • First Mortgage Special Offer

Click here to view the article source.

*Must be from within 30 days prior to or 12 months after graduation; have a diploma or other proof from a registrar’s office from an accredited two or four-year college or university. For Graduate Loans and Credit cards, verified employment or verification of employment offer from an organization; no derogatory items on credit history. Graduate products and services are not eligible for Rewards First Program.

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