College campuses are swamped by credit card companies trying to get students to sign up for credit cards. Whether the college kids need it or not, the credit card companies dangle freebies and incentives to get them to sign. College kids succumb to temptation easily and sign up without thinking long term. They are soft targets for the credit card companies.

The fact is that most college students don’t need a credit card. I went through college never needing one. I know times have changed, but the basic facts have not. The only time I needed a credit card was when I was working for a company and had to go for a company trip. So my first credit card came almost 1 year after I was working and that too because of a “need”.

College kids don’t have a pressing “need’ to have a credit card. As it is they have very little money. To dangle more money in front of them is asking for trouble. Obviously, they are going to overspend because there is much less thought to long term and more to instant pleasure. Life’s realities have not yet taken hold and they think the party will go on for ever. Most college kids honestly believe that credit card money is “free money”. Truly, college kids are a very ‘high risk’ group. Then why are credit card companies targeting them?

Several reasons. Not only are college students gullible but they know that young people tend to run up huge bills very quickly. If the college student cannot pay then the credit card companies know that they can go after their parents, who are more than happy to help because it is their child after all that is in trouble. It is this indirect assault on parent’s pocket book that credit card companies are counting on. And they also love the fact that college students will hide the bad news as long as they can, thereby running up huge finance charges and other fees. A win-win situation for credit card companies. They love a consumer who spends without regard and runs up HUGE fees. What more could they ask for?

Why do college campuses allow credit card companies to prey on college students? Simple answer ‘easy money’ & ‘greed’. College campuses forget that they are educators. It seems when credit card companies come calling with their lure of big advertising money, most campuses give in as harmless venture. After all, it doesn’t affect the college funds; and the colleges put it on ‘personal responsibility’.

I think most campuses will be better served by guarding their college students from credit card companies. It is teaching several bad lessons to the students. For one, the campus greed for advertising money from credit card companies teaches the student that ‘greed’ at any cost is good. Once they have access to credit cards, it teaches the student that being reckless spenders is in style.

Both are very bad precedents. If campuses give access to credit card companies then they should require them to fund ‘responsible spending’ classes where they teach the students the many perils of credit card abuse. Teach then that not all credit cards are created equal and if they have to have one then how to compare. How to check the fine print? How to look at comparison tables like the one at ‘Look up Credit Cards’ dot com? How to assess which credit card suits them and costs them the least in the long run? That it is not ‘free money’ but giving away your future savings.

My mailbox is full of credit card offers touting 0% offers. Looking at so many offers, you wonder how they say in the news that there is a credit squeeze. With the sub-prime loan crisis, Wall Street is scared of credit drying up in America. Looking at the credit card offers you would never think that was the case. Now the offers even come with pre-printed checks. The cover letter is so enticing saying just write the amount you want up to your credit limit and deposit the check. How much easier can it get?

But before you get tempted, please look at the fine print. Usually there is a cash advance fee of minimum 3%. Used to be that credit card companies would specify a maximum limit on fess. Not anymore. Now they just specify a minimum. So if you were to write one of these checks you will have instantly 3% tacked on. Consider that to be your starting interest rate. Actually it is higher than 3% because you are paying upfront.

If money market is yielding around 5% and you are paying them upfront 3% then you are hardly coming out ahead. It is a trap. Credit card companies are hoping that during the life of that loan if you even once default then they can charge you the full interest rate. You will be amazed how high some of their rates are. I looked at one credit card company’s fine print and they were charging default interest rate of 34.9%. It used to be called loan sharking but now it is legal. The credit industry has such a huge lobby in Washington that they got approved to charge exorbitant interest rates.

Same is true for balance transfer fees. They charge upfront 3% or better.

I know it is so tempting if you are in a bind and somebody presents you a check and all you have to do is sign and your bills are taken care. But think long term. You are shooting yourself in the foot.

It is like you are bleeding from the head and to stop blood you choke your throat. Insane, is the right word.

Again, please read the fine print. Generally, if it is too good to be true then it is. Even after reading, call the credit card company to confirm what you are going to be charged before writing their temping checks. And when you call make sure you note the person you talked to, their ID and location. You are going to need it if you get over charged.

Be responsive. Do your homework. Credit card money is not free money. Find a low cost credit card that suits you at ‘Look up credit cards dot com’ and check out the comparison table. Compare different name brands. There is usually never a reason to pay annual fee. These days you can find a zero annual fee card very easily. Find one that suits you at zero annual fee and don’t charge anything you can’t afford to pay at the next bill.

I know I it is easier said than done. But it is your life. No pain, no gain. Make the changes in your lifestyle before you go charging more things than you can afford.

If you ever get your social security number mixed up at one of the credit card companies, you are in for a ride.

It recently happened to my daughter. The credit card companies somehow had my elder daughter’s SSN on the my younger daughter’s record. In order to clear the mix up they wanted us to get a certification from Social Security Administration. Easy said than done!

When you call the Social Security Administration, they have no idea what you are talking about. It seems government offices have no idea about anything anyway. But that is another story.

So we called the credit card company back that Social Security Administration has no idea what ‘certification’ you are talking about. The credit card company said, to get on the Social Security Administration letterhead saying that the SSN belongs to you. Simple, right? Wrong!

First, getting through to somebody on the phone at Social Security Administration is like climbing a mountain. Have a lot of energy and patience. And drink plenty of water to keep you cool!

After I get through, it is the same answer ‘we don’t know what you are talking about. If you come down we can see what we can do!’ Now that is a HEROIC task!

I don’t even know where my closest Social Security Administration office is. So I ask for location and rattle off very quickly. I don’t know why government office people are always in a rush. They are not doing much work anyway. The attitude is very poor and it seems to say ‘why are you bothering me, go AWAY!!’.

I get down to the Social Security Office and you have to take a number and goes without saying there is room full of people with a long wait. You sulk and you sit down because there is no choice. My turn comes. I ask for something on their letterhead verifying my daughter’s SSN number. My daughter is with me so they verify her identity, which I have no problem. But they still cannot give on their letterhead because of some rule. They affix Social Security Office stamp on a blank piece of paper and verify my daughter’s SSN.

I give it to my credit card company.  No they want me to correct it on the credit file. So here I go again trying to chase down the 3 credit bureaus. If you have ever tried getting through to any of the credit bureaus on phone, it is virtually impossible. They have shielded themselves so well that even if you go through their phone maze, you are going to be hard pressed to find a live human being to talk. Unable to reach anyone, I have no choice but to mail my request.

I get a credit report in the mail which shows correct SSN. So we think finally it is all done. A few days later we get a letter from the credit card company saying the SSN still does not match and they are closing the card. Here we go again!

All reports show that there are major defaults in home loans. Reports now are also trickling in about credit card payments delinquency at an all time high. If most people stop making their payments then it could happen that credit card companies may go bankrupt. It is a scary thought but something maybe we should prepare.

It should not surprise any one of us. Credit card companies, like their home loan counterparts have been selling a pipe dream ‘You deserve everything – and get it NOW – you should not have to wait to earn it”. This is the mantra under which credit card companies have been pushing the concept of ‘charge it’, ‘charge it’ and then charge some more. In their short sighted view they just want to get everyone to be in debt to them so they can make hefty finance charges anywhere from 10-32%. And if you default, they make even more money in fees.

So they have got everyone living large. Spending beyond their means. Buying things they should not be and in most cases don’t need it. They buy so much that when their closets fill up then they rent a storage place to keep their stuff. And the whole spiral downwards begins.

What credit card companies forget is that the person taking the debt does not in reality have the capacity to own all this extra stuff. Doesn’t deserve these items in the first place. Let me explain. Whenever you take a loan you are in fact saying ‘I am willing to sacrifice my future earnings to buy right now’. But most people never budget the ‘sacrifice’. They never save to pay the debt. In fact, some even think it is ‘free money’.

Credit card companies love such thinking but credit card companies do not realize that they have raised a culture of spend and forget. Once there is a slight correction in the market and the person loses their job, then he cannot pay anyone and the first to suffer are credit card companies.

America as a nation has become a ‘nation of  debtors’. Our government is in debt to their eyeballs but tells us only a ‘rosy picture’ to keep us from panicking. The fact is the ‘emperor has no clothes’. As a society in general we Americans have become excessive spenders, living it large, no regard to future.

Credit card companies for their own good should stop easy credit. Otherwise they will see huge defaults and may take the company down.

If you have to have a credit card, get the lowest cost card at ‘Look up credit cards dot com’. Please use credit cards responsibly. It is your future at stake!

Most people think of credit card theft when they think of identity theft. There are actually 5 different kinds of identity theft even more severe then credit card theft:

CREDIT CARD THEFT: If you give your card at a restaurant or any place where the card is out of your sight, then you run the risk of identity theft. Waiters have been known to get credit card details and sell it to someone else so it cannot be traced back to them. Next time you are in a situation where your credit card is going to be out of sight, try to pay at the register yourself.

DRIVERS LICENSE THEFT: You get stopped by a cop and next thing you know there is a warrant for your arrest. You wonder how that can be? Somebody stole your driver’s license information and ran up tickets. Never let your driver’s license out of sight or your possession. Be extra-extra careful with your driver’s license.

SOCIAL SECURITY NUMBER THEFT: This is widespread because people  don’t realize that they leave their social security numbers laying around on so many documents. In the old days, it was considered harmless to ask for social security numbers on practically every form.  Those days are gone. Now a days a thief can create a whole new identity with your social security number. Do not put your social security numbers on forms unless absolutely necessary. A lot of the old forms ask for social security number. I will give you a classic example. You go to a clinic and the first thing they want you to put down is social security number.  There is no reason for it if you have provided insurance information. Your insurance company knows how to identify you. I never fill the social security number till they don’t justify why they need it. So next time don’t just fill out your social security number just because they ask for it on the form. Ask why they need it?

CRIMINAL IDENTITY THEFT: These days it is common for crooks to commit crimes under false identity. When they get caught they already have their false identification documents in place so the crime goes under your name. Imagine getting pulled into the police station and being interrogated for crimes you did not commit. Most people find it a shocking experience. Try at that time to explain it is not you but somebody else. Get a lawyer or a service that can help with identity restoration. Read more on a website ‘rvats’.

MEDICAL INDENTITY THEFT: The most serious of them all. You go for a check up and the doctor asks you when you contracted AIDS? You are shocked! Well your report shows that somebody had a HIV test under your name and was positive.  You see people who are in that lifestyle, they are not getting tested under their identity. So they latch on to your identity and put it on your medical records. Now it is your job to clean up all the mess!!

Some of you may have received a special from Discover® card saying that ‘We recently sent you a Discover card and we’ve noticed it hasn’t been used for any purchases yet. …You’ll get a $5 Cashback Bonus® on the first purchase you make between now and ‘certain date’. 

It is a trick. Don’t fall for it. The offer says ‘See reverse for details’. On the reverse, there is no further explanation. However after you have made a purchase, you will not see a $5 cash back applied to your balance. If you call them they will tell you that the cash back has to accumulate to $20 before you can redeem. So essentially the $5 cash back bonus you earned is a waste, if you do not intend to use the card further.

I don’t intend to use Discover® card further because they have so many tricks up their sleeve. First of all, their cash back is tiered so that in order to even earn 1% you have to go through so many purchases. And then when it comes time to redeem, they will try to get you to redeem against their merchants. Or worst still, play the guilt trip on you and ask you to donate to one of their worthwhile charities.

This is a card that really knows how to frustrate the user. They have more fine print and caveats than a bad lawyer.

Always use a comparison chart to find a good credit card that suits you. Also, I like to see all the details upfront. You can find comparison tables on all major credit cards on  lookupcreditcards.com, which state the facts upfront in clear table format.

Credit card companies MUST be required to have a clear ‘fact sheet’, similar to ‘Nutrition’ label for food. Everything credit cards do is very similar, so it only makes sense that all the facts should be clearly listed. Otherwise we will see the credit card companies make a fool of the general population and drive them to bankruptcy.

It is about time Congress woke up and clearly demanded that credit card companies come up with a clear table like ‘Nutrition’ label. All special promotions should also be part of a label in a table format. No fine print, no caveats, no hidden meaning.

Write to your congressman, so you won’t be duped the next time. Email them this article.

If you come under credit card company so called ‘review’ process, then they want you to sign a IRS Form 4506T, that gives them permission to get your tax returns from the IRS. Meanwhile, they will put your credit card on ‘hold’ so you cannot use the credit card. Isn’t that appalling?

I was just shocked when recently my credit card company put me under the ‘review’ process out of the blue. I have very good credit and have never been delinquent. And I am not a new card holder. I have been with them for more than 11 years. So they have a history on me that clearly showed not a single missed payment.

I called them up explaining that they have access to my credit file and my payment history with them. They would not listen. I was shocked!

I had not seen this ‘ugly’ face. No matter what I said, they would not budge. They kept repeating the same ‘mantra’; ‘we need you to sign the IRS Form 4506T so we can pull your tax returns’.

I talked to a lawyer, and he told me that you have no reason to share your tax returns with them and it may constitute ‘invasion of privacy’. They have your credit file and more than 10 years of payment history and that it should be sufficient. To protect my privacy, the lawyer wrote them a letter but to no avail.

I wanted this matter resolved just so that it does not show up adversely on my credit file.

I finally offered them my bank statement to show I have the money to pay them. They would not budge. ‘We want your tax returns’ came the blunt reply!

Finally, I got hold of a VP at the credit card company and came to an agreement. He looked at my payment history and bank statements and reinstated within 24 hours my credit card.

Moral of the story is if you get caught in a credit card company ‘review’ and are asked to show your tax returns, it may not be necessary. Protect your privacy. Put up a fight. Because if you don’t, then next time they will ask for more!

I used to carry tons of credit cards with me. It seemed just appropriate that I may need them some time. After all shouldn’t I be carrying all my credit cards?

The intelligent answer is ‘no’. I see people with wallets bursting at the seams with credit cards lined up one after another. At one time it used to be a ‘prestige’ thing to show how many credit cards you had. You could flash your wallet and show a string of credit cards lined up one after another. Those days are gone. There is no need to flash your credit cards. Instead, with identity theft rampant you are better off not showing your credit cards.

Identity theft also poses a BIG problem if you carry several cards. Not only the thieves get several cards but you have that much more work to try and identify each card. You have multiplied your work because you have to now contact each company. This can take hours because these days you have to go through a maze of telephone prompts before  you can ever get to a human. They say on the average identity theft eats up 600 man hours of time.

Another major issue is at the store. When you get to the counter to pay, you are confused which credit card to use. You can never keep track of which one is most beneficial, like rewards, low interest etc. In the rush of the purchase, you go with whatever credit card at whim. This can be injurious to your financial health. You may have just charged on a credit card that has the highest interest rate or the worst customer service.

Credit card companies want you to charge on several credit cards because your chances of not paying on time increases and that is when they make their money. Once you fall into the trap of not paying on time, the credit card companies are vicious in their fees and interest rates. Essentially, they have got you!

So what is the solution? Just carry 2 cards. One for personal expense and one for business related. Do not carry more than 2 credit cards. If a better card comes along, replace one in your wallet. Your wallet will be happy and you will know exactly which credit card to use. In case your wallet gets lost or stolen, you have only 2 credit cards to report. You can also catch identity theft very quickly because you have only 2 cards to watch.

Look at a comparison table of the best cards available for personal and business use at Lookupcreditcards.com. Just get 2 cards and stick with them till a better deal comes along.

Watch out for the following tricks credit card companies play on you:

MINIMUM BALANCE: Have you ever wondered why the minimum balance is so prominent and bold on your credit card bill?

The reason is simple. The credit card companies want you to make the mistake of thinking that you just have to make that small $20 payment on this bill. They can then assess finance charge on your balance. If credit card companies have their way, they would like everyone in America to always have a balance so they can then charge exorbitant finance charges ranging above $24% in some cases. Is it legalized profiteering!

Even I have at time been fooled into thinking that my balance is only $20 as I rush through paying my bills. So watch carefully your balance and pay the full amount. If you are not able to pay the full amount then STOP spending and cut your bill. That is the BEST advice you will ever get. Don’t be a credit card junkie and get yourself in a DEEP hole!

FINEPRINT: Have you seen the fine print lately. We always knew that ‘the fine print taketh what the bold print gives’. But credit card companies have made into an art form. Now the fine print is not only small but is also printed in light grey. Talk of  ‘pulling the wool over your eyes’. Even if you tried reading it you would have to strain so much that you would give up. This is exactly what credit card companies want. They want to get you suckered into their deals. Once they ‘got you’, make no mistake they will then throw at you the same fine print but this time in BIG bold letters.

Simple solution; if you don’t want to or can’t read the entire fine print, at least read the points that effect you (for example cash advance or transfer balance fees etc).

EASY CHECKS: How sweet it is to see those blank checks enticing you to just write whatever amount you want and make your life easier! Don’t be suckered, it is a well laid out trap.

I am amazed how many checks I get in the mail from credit card companies. Unless, they carry ZERO percent interest with no other fees (cash advance fees, balance transfer fees or whatever new fees credit card companies come out with); they go straight to my shredder. And yes, I said shredder. Please folks, get an inexpensive shredder for $20-50. It will be money well spent. If you throw the checks in the trash without shredding, you may have saved yourself form the big bad credit card companies, but you just made yourself a possible victim of identity theft.

CASH ADVANCE: Once you take a cash advance it becomes virtually impossible to kill it. This is because by the time you send your payment, there are finance charges on the time it took since last billing to the time credit card company received your payment. To get out of the vicious circle; send them more than your balance so there is no further finance charges that keep accruing. If balance is left over, just ask for a refund check.

These days, credit card companies have come up with another trick online, They don’t allow advance payment online. And if you call and pay, then they want to charge you $14.95 phone processing fee. Solution: insist that they not charge that phone processing fee because it is their fault that you cannot pay over the amount to avoid more finance charges.  The credit card companies know about the trick and if you insist they will not charge you phone processing fee.

Yes, you can make money on credit cards. Here is how you do it (this is from my first hand experience). I am sure you are bombarded with those credit card deals in the mail offering ‘teaser’ rate to entice you to apply. Also, known as ‘introductory offers’. They will usually have a low or zero interest rate for 6 to 12 months.

The best are offers with zero interest rate. There are plenty, so if you don’t have them yet, just watch for one. Shred the rest away. Just a side note; please shred all credit card offers you don’t want because identity thieves are known to apply on your behalf and change the address. While you are unaware, thieves are charging on your name. Just get a $10-20 shredder and shred the credit card applications rather than tossing them in the trash can. I like the shredders that do diamond cuts because they break it down into small pieces that practically no one can piece together.

Now back to our money making strategy. After you get the 0% offers. Go through them and see which one’s have ‘cash advance fee’. Shred the ones that have cash advance fee. Usually the cash advance fee is where credit card companies make their money. Most have started asking for 3% cash advance fee. Since that is paid upfront, your actual cost of money is much higher.

Now you will be left with one or 2 good offers with 0% interest with NO cash advance fee for 6 or 12 months. It is essentially free money. Take that money and put it in a safe place like a separate money market account. Mark your calendar when it has to be paid back in full. Every month your credit card company will bill you for generally 1% of the borrowed money. Pay it PROMPTLY from this account. If you don’t pay, the interest rate instantly jumps to the current rate of some outrageous amount like 16-24%. The credit card companies are counting on the fact that you will forget to pay and they ‘sock it to you’. Or you might forget when the full amount is due and again they ‘get you’.

Simple strategy, pay their bill every month and when the amount is due in full pay it a week in advance. Do not charge anything on this credit card because everything you pay first applies to your charges and not towards your cash advance. Essentially, keep it clean and give no reason for the credit card company to charge you interest.

There are certainly potential drawbacks for physicians, but the information they provide would be the cornerstone of a national EHR system, which can't be achieved without their comprehensive cooperation. Some way must therefore be found to encourage the adoption and use of IT by these frontline practitioners. We believe that if smaller providers and physicians are to come on board and thus maintain EHR's current momentum, other parties involved with the industry, including the government, must find ways to help spread the costs and benefits more evenly.

Over time, the willingness of large providers such as Kaiser Permanente and the Veterans Health Administration to invest in EHR and to use electronic records in real care settings will help smaller groups of physicians to follow along. Leading hospital groups and academic medical centers have been investing significantly in IT infrastructure and solutions for more than a decade, laying much of the foundation necessary for a more comprehensive EHR system. Links between academic hospitals—where many specialist physicians already work—and smaller practices could help drive these developments.

The federal and state governments also have a role to play and are starting to play it. For the most part, it will be to help encourage the establishment of basic data requirements and technology standards for the system overall. This point is already a key element of a federal initiative. More directly, Congress and the state legislatures could set directions on policy and privacy issues and mandates on data reporting. They could also choose to subsidize "poorer" industry players: the Medicare system, for example, is experimenting with pay-for-performance methodologies, which if structured properly could offer physicians financial inducements to invest in the necessary technology and information. In addition, legislation recently introduced in Congress would support pay for performance by providing extra payments to hospitals, physicians, and other health care providers prepared to adhere to preestablished IT and data standards. A bill aimed at easing the load on providers would waive certain provisions of the Stark and antikickback laws, thereby allowing hospitals to provide physicians' practices with IT systems.