Lloyds TSB Encourages Card Holders to Gamble with borrowed money

Lloyds TSB one of the banks that was bailed by billions of tax payers money is encouraging people to gamble with their credit cards. It is claimed that a letter that was sent out by Lloyds suggested that its customers can borrow 50% of their credit limit and spend it on ‘transactions such as gambling’ It also went so far as to include its Classic Credit Card holders saying they can buy gambling Chips.

This all sounds very irresponsible from such a big name in banking however it came to light when a letter was sent to a 22 year old, who no doubt remains anonymous. The 22 year old man was given a credit card with a spending limit of £1,000. In the letter is stated that the young man could use £500 or 50% of his limit on transactions such as gambling, the purchase of foreign currency, money orders and gaming chips. The interest charges on such a cash withdrawls is 24.9%

A Lloyds spokesman said ‘We treat gambling and cash-related transactions, such as the purchase of gaming chips, as a cash withdrawl, which is why its is included in the sentence, but we are concerned it could be interpreted as encouraging irresponsible use of a credit card.

Before all this is taken out of context it is common sense not to use your credit card this way. Lloyds no doubt have a red face over this one but these types of things do happen. The wording is important in the fine print but I don’t believe there would be many people who honestly believe the letter was intended to promote gambling. You make your mind up.

No Fee Low Rate Balance Transfer Credit Cards

These type of credit cards are becoming more and more popular now and can be handy for customers that are not able to get interest free balance transfer deals on other cards.

They way it works is that the Credit Card company will offer you a balnce transfer at a very low rate usually below 10% typically around 6.5%. There is no transfer fee which is usually in the region of between 2% and 3% of the balance. If you are transferring a lrage balance the savings on the fee can be quite substantial. Currently the best life of balance transfer card, as they are called is the Barclaycard Platinum Credit Card.. They offer a very low 6.5% on any balance you transfer. You are usually allowed to transfer up to 90% of your credit limit.

You will get the usual benefits like 0% on purchases and the APR is also typically low. These card are handy if you want to consolidate some of your other card balances to a much more competitve interest rate which will remain until you pay off the balance in full. An important thing to remember is that if you do take advantage of the 0% purchase offer is that what ever your higher rate of spending is will not be paid off until the low rate (blance transfer) amount has been paid off first. Cleary the Credit Card Company wants to make more money from you knowing that they will make bigger returns from your purchases while your balance transfer amount gets paid off over time.

Some Life of Balance Transfer Cards do actually charge a small fee like the Citibank Life of Balance Credit Card, they also have a competitive APR of 6.5% but if you are trasferring a large amount then the fee may hinder you from taking up such an offer.

0% Balance Transfer deals are still widely available so if that is what you are looking for then you will usually find Virgin Credit Card or any of the MBNA Cards will have these types of offers available. Nowdays it will depend largely on your credit history whether you are approved for these type of deals.

Beware of Credit Card Fraud over the phone

In the current economic recession Credit Card fraud is on the rise. What more surprising is the rise in popularity of an old style phone scam that involves the fraudsters conning unsuspecting cardholders into revealing their card details by pretending to be an employee from a bank or credit card company. In many instances they will pretend to be from international card schemes like Visa or Mastercard.

The scam usually starts with the fraudster phoning you up claiming to be from the fraud or security department and indicating that your credit card or debit card has been red flagged as having potentially fraudulent transactions having taken place. The victim will become more trusting as the caller is offering assistance in rectifying the problem.

Now days its quite easy for fraudsters to get hold of customers bank details. These can be bought for a small amount over the internet or from countries that are large outsourcing or offshore depots for the large banks and credit card companies. By having this information at hand when making the call the fraudster seems more legitimate. What they may not have is the 3 digit security code on the back of your card. A clear way for them to get this from you is to say that they will credit the fraudulent amount back onto your card but in order to do this will need the 3 digit number to process the refund.

Once these details have been given out the fraudster is free to make phone and internet purchases using your card details. You should never disclose your card details from someone that has cold called you no matter who they claim to be from. If the caller is from your card company they should have all your details at hand. If you have any doubts hang up and call your card company to see if in fact there is a query on your card.

Nowadays it’s not enough to just keep your card details safe and secure. By following these common sense steps you will greatly minimise the chances of being conned by a fraudster.

Handy Tips:

• Don’t let your cards or your card details out of your sight when making a transaction.

• Destroy, preferably shred, any documents or receipts that contain personal financial information when you dispose of them.

• Do not disclose PINs, login details or passwords in response to unsolicited emails or telephone callers claiming to be from your bank, the card schemes or the police.

• When entering your PIN in a shop or a cash machine use your free hand to shield the number from prying eyes or hidden cameras.

• Do not keep your passwords, login details and PINs written down

• Make sure your computer has up-to-date anti-virus software and a firewall installed and switched on.

• Access internet banking or shopping sites by typing the address into your browser. Never go to a website from a link in an email and then enter personal details.

• Shop at secure websites by ensuring that the security icon (locked padlock or unbroken key symbol) is showing in your browser window.

• Only divulge your card details in a telephone transaction when you have instigated the call and are familiar with the company.

• Always log out after shopping and save the confirmation email as a record of your purchase.

• Register your cards with Verified by Visa or MasterCard SecureCode².

Look for this sign:

There is no substitute for common sense, always be vigilent when using your card to minimise putting your card at risk of being cloned and used by a Fraudster.

How we use our Credit Cards in the UK

Here are some stats reflecting on how consumers have used their credit cards during 2006 and 2007 and some more up to date statistics for 2008.

• In 2007 there 67.3  million credit card issued
• The number if personal credit and charge card holder actually fell to about 30 million which represents about 62% of the adult population in the UK.
• The average number of credit cards per per person was 2.4 with 1.6 for debit cards
• Spending on Credit Cards in 2006 in the UK amounted to £133.2 billion
• The internet has seen a four fold rise in card payments over the last 5 years.
• The average transaction value on credit cards in the UK  was £63.22

Statistical Release

Annual figures (end – 2008)

• Number of UK-issued debit cards                                      75mill
• Number of debit card holders                                             42.1 mill
• Number of debit card purchases in the UK                    5.5bn
• Number of cash machine withdrawls                               2.9bn
• Number of cheque transactions                                         1.4bn
• Number of automated payments                                       6.0bn
• Number of UK-issued credit & debit charge cards     71.3mill
• Numbet of credit card holders                                            30.2mill
• Number of Faster payments                                                 82.8mill

Tuxedo MasterCard® Prepaid Card

The new Tuxedo Prepaid card is for everyone. You won’t need to go through any credit checks and you don’t even need a bank account. You can open it up like a regular account by having your salray or wages paid directly into your eccount and set up multiple standing orders and direct debit payments. You get £5 free on your first top up.

Backed by Mastercard you can use it in 26 million locations around the world as well as 1.2 million ATMS’s and evenonline.

Main Features summarised

Manage your money:

1. Check you balance 24hrs a day, online by text or by phone and get “low balance” text alerts.
2. Share money between cards.
3. View your balance online or by mobile phone.

Control:

1. You can store money off your card eccount for extra security.
2. Block and Unblock cards whenever you want.

Top-up:

1. Top-up your card as you go with over 36,000 locations in the UK, incl paypoints and the Post Office.
2. Top-up online by bank transfer or by sending in cheques.

Use:

1. You can Pay bills, spend in-store and shop online.
2. Set up standing orders and direct debit payments.

Withdraw Cash:

1. Withdraw cash from over 1.2 million ATM’S Wordwide.

MBNA Platinum 0% Balance Transfer till 2010

Thats right another great offer by MBNA Credit Card. A 0% Balance tranfer period lasting for 13 months for balances made in the first 90 days of receiving your card. You will also get 0% on purchases for 3 months.

Credit Card companies are still not being very quick to act in lowering their interest rates which is quite frustrating when you consider the BOE interest rate is currently on 0.5%. There is no chance the Card companies would ever offer rates in this region so its best to try and get the most competitive rates until we see some downward movement. If you have any store card or other credit card balances where you are being charged  APR 20% then now is the time to act and take advantage of this great offer.

Virgin Credit Card 0% Balance Transfer 16mths

With one of the longest 0% Balance Transfer periods, Virgin Credit card now make it easier for you to manage any high interest balances you may have. The Virgin Credit card has always been one of the fore runners in the Balance transfer market.

If you have any store card balances that are charging high interest rates then now is the time to transfer those balances. Credit card companies don’t seem to be reducing their rates in line with the Bank of England interest rates. Act now and save a fortune in interets charges.

The Amex 5% Cash Back Credit Card

American Express Platinum Credit Cards offer one of the most competitive cash back rewards scheme around. With 5% cashback on all your everyday spending you will be rewarded in many ways which will allow you to put more money back into your pocket. You will get 5% cashback everytime you use your platinum credit card in the first 3 months up to £100. There after you earn 1.5% cashback with no limit on how much you can earn.

Key Features:

• Earn 5% cashback for the first 3 months up to a max of £100
• Earn 1.5% thereafter with no limit on how much you earn
• Purcahse Protection Benefit. (Agreat feature in todays climate of credit card fraud)
• Refund Protection Benefit
• Online Fraud Guarantee
• Travel Accident Benefit up to £150,000

For a full list of benefits go to the American Express Platinum Website

New MBNA Platinum Credit Card

The new platinum MBNA credit card is offering 0% on balance transfers for 13 months. That is a lengthy 13 months which will allow you to pay no interest on any credit card balances you transfer for a whole year.

Whats more is you get 0% on purchases for 3 months. There are a 8 new card designs to choose from so you can make you card unique in many ways.