Credit Cards Online Information

Can't find financing for your new venture? Credit cards come to the rescue

THREE DOG BAKERY founders Dan Dye and Mark Beckloff didn't have to sit up, roll over, or beg for start-up and operating cash, so why should you? In 1989 the partners fed their fledgling dog-treat enterprise with credit-card cash advances, charging into what has since become the fastest-growing form of small-business financing. In fact, so popular is this easy, handy, fits-in-your-wallet credit-card debt that it now accounts for 33.5 percent of all small-business financing, according to a 1997 survey conducted by Arthur Andersen's Enterprise Group and National Small Business United (NSBU). The report also found that use of credit cards has nearly doubled during the past five years, while traditional sources of capital, such as commercial-bank loans, has &dined.

IT'S JUST SO EASY. Aside from offering would-be entrepreneurs who have few links to high finance an astounding opportunity, credit cards can also be lifesavers for existing businesses. After all, a cash-flow crisis can lurk around any corner. At a recent gathering of successful young entrepreneurs, one of them unfolded, accordion style, a case containing no fewer than 25 pieces of plastic, boasting, "I have a quarter million dollars right here, if I need it." And let's not forget the Three Dog Bakery gang; they've become poster boys for American Express, their ads gracing the pages of business magazines across the country. Despite high interest rates, credit-card financing is on the rise, and its beneficiaries are learning how to stack the deck in their favor.

DEAL YOURSELF IN. Dye and Beckloff fueled their start-up with four personal credit cards they obtained during their days of full-time employment, plus an American Express corporate card they received in the bakery's earliest days. Typically carrying a balance of $3,000 per card, they charged everything from cash advances for payroll to dog-food ingredients. Keeping credit cards on file with their vendors eliminated COD charges, expedited deliveries, and stretched cash flow. And by charging supplies at the beginning of their billing cycle, they gave themselves more time to hold on to their cash.

# posted by Medical Information : 2:00 AM  0 Comments

Let's face it. Not everyone is a history buff. That's obvious to those who've ever watched an episode of "The Tonight Show with Jay Leno." As he skirts around the streets of Los Angeles during his signature bit "Jay Walking," he gets the most laughable responses to the simplest questions. When asked during one bit when Christopher Columbus discovered North America, a lady studying to be a teacher responded, "1842."

It's a scary thought that a future educator doesn't know when "Columbus sailed the ocean blue." Maybe more people would know their history if it had a more direct impact on their lives. Then again, that statement doesn't always ring true because there are many people who don't have a clue about personal history that affects them greatly--their credit history.

Just as a resume displays your work experience to a potential employer, a credit report provides creditors, and in some cases employers and insurers, with a detailed picture of your credit history. And like a resume, your credit report can influence whether you'll get what you're applying for.

Good credit isn't only useful in getting a loan. Credit checks are often done before a person is able to sign an apartment lease or as part of a background check before being offered a job, said Luther Branham, senior vice president of consumer lending for USAA Federal Savings Bank.

Your credit report provides a snapshot of your credit history and helps lenders make a quick, objective and accurate assessment of your credit risk. Occasionally, however, there are errors on these reports that can adversely affect your ability to get a loan or credit. Therefore, it stands to reason that you want to make sure your report is an accurate, up-to-date reflection of your credit history. Here are five reasons why you should become a history buff when it comes to regularly reviewing your credit report.

Identity theft

In 2003, 9.9 million people became victims of identity theft. A Federal Trade Commission publication titled, "ID Theft: When Bad Things Happen to Your Good Name," points out that identity thieves use a variety of methods--low- and high-tech--to gain access to personal data like social security numbers and credit card account information.

# posted by Medical Information : 1:59 AM  0 Comments

NEW YORK, NEW YORK, U.S.A., 2000 APR 25 (NB) People who surf the Web looking for credit card offers are more ethnically diverse and also more receptive to online branding than the general online population, according to a recently released study from Cyber Dialogue, a company specializing in Internet customer relationship management.

The study is part of the company's "American Internet User Survey."

Cyber Dialogue also says that it has found online credit card seekers to be younger, primarily male and more likely to carry larger balances than other segments of the cyberspace population.

To date, according to Cyber Dialogue projections, 9.8 million Americans have shopped for credit cards on the Internet.

Newsbytes spoke with Sam Callard, a financial analyst for Cyber Dialogue's Internet Strategies Group about the findings of the study. He said he thinks the study, which traces the offline and online consumer use of financial services, provides important information for credit providers in understanding how online credit card seekers differ from consumers looking for other types of financial services, such as home loans or insurance.

For example, Cyber Dialogue says, online credit card seekers are especially attractive because nearly half of them a projected 4.3 million have actually applied for a credit card directly online. This translates into a reduction in the cost of acquisition to online credit card issuers.

Another positive aspect of online credit seekers, according to the report, is that online credit card applicants have a high conversion rate. This means that more than half of those who applied for credit cards on the Web a projected 2.2 million ultimately acquired a credit card online, and began using it.

"Credit card companies are missing an opportunity to acquire potentially valuable lifetime customers by overlooking such largely untapped groups as ethnic minorities," said Callard. One of the benefits of the Internet, Callard points out, is its ability to reduce both the offline cost and risk of targeting these kinds of small, high-potential customer segments.

But online credit card seekers are also more demanding than the general Internet population, according to the report. They are especially driven by low interest rates as well as the reputation of the credit card issuer.

# posted by Medical Information : 2:07 AM  0 Comments

CHAMPIONSGATE, Fla. -- TransUnion, a leading global information solutions company, today led a general session panel discussion entitled "Gearing up for Bankruptcy Reform - A Unique Industry Perspective" at the 14th Annual Credit Card Collections Conference in ChampionsGate, Florida.

The panel was comprised of industry leaders from Citibank; the Association of Independent Consumer Credit Counseling Agencies; Money Management International, a credit counseling company; and a leading bankruptcy law firm. Participants discussed their respective roles in preparing for the bankruptcy reform laws that went into effect today. The panel also addressed new technologies and processes aimed at helping lenders, collection agencies and credit counseling companies more effectively work together in the post-reform environment.

Addressing a crowd of more than 200, panel moderator Mike Rosenthal, director of Debt Management Solutions at TransUnion, initiated the discussion by saying, "some innovative tools have entered the marketplace to assist credit grantors in devising treatment strategies that match an individual consumer's financial situation. Our panelists today represent industry leaders who are adapting and improving their roles based on this technology and on the needs of both consumers and businesses."

Earlier this year, TransUnion announced a debt management model, which credit counseling companies can use along with their core services to quickly assess whether consumers exhibit strong indicators for rehabilitation through temporary budget restructuring or a debt management plan. The score also assists lenders in making objective decisions to offer improved concessions, such as lower minimum payments, reduced interest rates or the removal of late penalty fees to those consumers who are most in need.

# posted by Medical Information : 2:06 AM  0 Comments