Around the country, many schools have begun cashless purchasing processes in the cafeteria. There are a variety of methods used to keep track of the purchases, from student ID cards that operate like a debit card to fingerprint systems to simply giving the cashier your name or student number to have your purchase deducted from the account.
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Just as retailers around the world having to accommodate the preference of consumers to swipe their cards rather than pay using cash - and accept credit or debit cards for everything from a pack of gum to McDonald’s cheeseburgers, our school systems are following suit and an increasing number are using credit card-like systems to pay for lunches.
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All of the methods of buying lunch without cash may be giving students mixed messages regarding making purchases, though. When the child doesn’t physically hand over .75 or whatever the price of their lunch is, do they understand that they are still in fact paying for it, when they swipe their ID card or scan their fingerprint? It most likely depends on the age of the child, but there are some concerns that giving a child an ID card or alternative method for paying for their lunch reinforces the idea of using credit to buy - “buy now, pay later” - regardless if the parents have deposited money onto the ID card or lunch account for their student, it’s not what the student experiences when they go through the line to pick up their lunch. Is it possible that cashless lunch systems at schools will continue to send positive messages about buying on credit?
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Some people would say that’s an invalid concern, or one that doesn’t require much thought. But as the nation continues to struggle with people spending more than they can afford using credit, it’s worth considering how moving away from a cash based lunch system for our young people might affect their attitudes regarding spending as they get older.
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It’s easy to understand the benefits of these cashless lunch systems. First of all, for children who come from lower income families and receive a reduced lunch or free lunch program – using alternative methods to pay for lunch ensures it’s a private matter. The other students in line will not know whether the child paid a quarter or two dollars for their lunch if it’s a swipe of a card, giving an ID number or scanning a fingerprint to pay for the meal.
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Secondly, paying with these alternative methods reduces the possibility that a child will lose his or her lunch money on the way to school, spend it on snacks instead of lunch, or get it stolen by another child – but that’s only if the system allows parents to deposit money to the account online. In some school districts, parents have to send a check to school with their children for it to be deposited to the child’s lunch account. The checks can still be lost on the way to school, but at least it would reduce the possibility of someone else taking it and using it.
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Another benefit of cashless lunch systems include giving parents the ability to see what their youngster is eating for lunch. Many of the new school lunch payment systems allow parents to log in and deposit money into their lunch accounts, and even view what the students are purchasing. Did Junior eat a healthy lunch at school today, or did he buy cookies, a bag of chips and a Nutty Buddy? <br><br>This article has been provided by Creditor Web. At CreditorWeb.com you can compare over 100 credit cards from multiple banks and apply for <a href="http://www.creditorweb.com/">credit cards</a> online.

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Credit is a sticky subject for many young adults. Some listen to their elders’ well-intentioned but misguided advice and avoid getting any credit cards of their own while they’re in college. Others jump at every card offer they get, which leads to a lot of available credit and a lot of temptation to spend. But it’s the third category of young adults that we’ll discuss today: the piggybackers.
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What’s a piggybacker? Simply put, it’s a young adult who doesn’t have a credit history of their own. But because they want to establish one, they’ve been added to their parents’ credit card accounts as an authorized user. This does wonders for the youngster’s credit; they reap the benefits of their parents’ years of timely payments. And since the parents can control or limit their child’s spending, it doesn’t really cost them anything to add a child as an authorized user.
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Piggybacking benefits an adult child by making them attractive to lenders and landlords. Many young adults have trouble finding financing for a car, or quality living space, on their own because they have no established credit. But when their credit is linked to their parents’ history, youngsters enjoy a surge in their credit score.
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Some piggybackers don’t even have credit cards of their own. They just do it for the positive credit history. But what happens when it’s time for a piggybacker to strike out on their own and apply for a card in their name? When they get removed from their parents’ accounts, will all of that great credit history vanish?
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Experts say it won’t, as long as the separation is done right. Rather than removing an adult child from your credit card accounts immediately, give them about twelve months to establish a credit history of their own. When they apply for a credit card or a loan, they’ll be likely to get it because of the good credit score you both shared. And when they’ve made timely payments on their own credit endeavors for a year, they’ll have a strong enough history to stand on their own two feet.
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They should also use that year of overlap to find a steady job. Lenders want to see not only a stable credit history, but also proof of a regular income. It won’t do your adult child much good to have a high credit score but no apparent means to pay for their loans.
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Finally, keep piggybacking in the family. There has been a lot of debate over this practice in recent years, but FICO finally announced that its new scoring model will disallow piggybacking between strangers while family members can continue to engage in the practice together.
<p><br><br>This article has been provided by Creditor Web. At CreditorWeb.com you can compare over 100 credit cards from multiple banks and apply for <a href="http://www.creditorweb.com/">credit cards</a> online.

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Congratulations; you made it through college. You managed to make it through without accepting those obnoxious credit card offers from pushy marketers, and, as a result, you don’t have any credit card debt to worry about. Now it’s time to get a job, buy a car, and maybe think about homeownership.
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But the first time you apply for a car loan, you get turned down for insufficient credit. How can this be?
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This is the very situation that many new grads find themselves in. Through no fault of their own, they’ve put the brakes on their credit, disqualifying themselves from the very purchases that signal the beginning of independence. It takes credit to get credit. In the case of major purchases, it can take quite a bit of credit.
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The problem is that college students receive mixed signals, and it can be tough to figure out which road to take. On one hand, they’re targeted by aggressive credit card marketing campaigns that offer everything from free pizza to free Ipods if the student will just sign the dotted line. On the other hand, they’ve watched their parents and seen firsthand how credit card debt can devastate someone’s finances.
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So what should a college student do? Experts recommend a compromise: apply for one or two credit cards during your college years, but avoid the temptation to overspend. Charge small purchases on a regular basis and pay them off each month. That will establish a history of timely payments that will be very important to your credit report and your future buying power.
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What if you’ve already graduated? According to a representative from LendingTree.Com, you might be able to find student offers that you can still take advantage of, but it will require a little digging. You can also get a secured credit card to help build up your payment history and open the doors to better credit opportunities. Secured credit cards require you to deposit funds into a bank account. These funds will cover your debt in the case of default. Just be wary of any secured credit card that requires you to pay fees for monthly, annual, and initial use.
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Finally, if you really need a credit card but just can’t seem to get one on your own, you could ask a family member to co-sign. If you choose to do this, make sure they understand that they will be responsible for any payments you don’t make. Negative items will affect their credit score as well as yours, so do be courteous and responsible when you have a co-signer.
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The problem of access to credit after college is very real. To keep yourself out of this crunch, get a card or two while they’re easy to obtain – during your college years. Make your payments in full every month, and you’ll build up your credit without falling into a debt trap.
<p><br><br>This article has been provided by Creditor Web. At CreditorWeb.com you can compare over 100 credit cards from multiple banks and apply for <a href="http://www.creditorweb.com/">credit cards</a> online.

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Everyone understands how a traditional debit card, works: you withdraw money and make charges against the money you actually have in your bank account. Do you know about 401K debit cards?
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These cards allow accountholders to withdraw money from your own 401K account, with permission from your employer, instead of the typical “loan” some people would get from their 401K plans.
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A 401K debit card is actually more closely related to a credit card than a debit card, because you end up paying for a large number of fees and penalities for the priviledge of using a debit card linked to your 401K account.
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<b>How do 401K debit cards work?</b>
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Because they are essentially a loan that you access with the debit card, you must first get employer approval for the 401K loan. In some cases, the employer will approve the loan one time, or as a revolving line of credit. If you set up the loan as revolving, that means you can borrow against the approved amount as you pay it down – while a non-revolving 401K loan is money you cannot borrow again after repaying it. The amount of money you can borrow from a 401K loan is based on how much you’ve deposited into the account, and your vested balance according to IRS rules. You are limited to borrowing 50% of your vested account balance, or ,000 whichever is less. At times, an exception can be made for a ,000 loan out of your 401K account, even if that exceeds your 50% limit. Your employer is actually able to limit the amount you’re allowed to borrow and for what purpose you use the borrowed funds for.
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If the employer approves your request for a loan and offers a debit card to access it, the approved amount is then transferred into a money market fund and the debit card is given to you for your use. There are some plans that also allow you to write checks from your borrowed funds. If you use the card or checks multiple times, each day’s transactions are considered separate loans and each are subject to individual terms of repayment.
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<b>How 401K Loans are Paid Back</b>
<br><br>Each month, you’ll receive a bill – just like you do your credi tcards – that shows you the total amount of your approved loan, how much you’ve used on a daily basis, and how much of it you need to repay. Because the 401K loan is in fact a loan, even though it’s being accessed with a debit card or check, you will make payments that go to the principal balance borrowed and the interest youv’e accrued. There are two types of interest rates you pay for 401K loan debit card use – a variable fee which is based on the margin, which is calculated based on the amount you withdraw each month, and paid to the vendor providing your debit card, and the interest charged to your debit card use which is tied to the prime rate. Also, like credit cards, your loan repayments have a due date and a minimum amount which most be paid.
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<b>Are 401K Debit Cards a Good Idea?</b>
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There are a few advantages to using the debit cards with a 401K loan, if you disregard the disadvantages associated with taking money out of your 401K before retirement to begin with. <br><br>
Advantages of using the debit card to access the loan over other alternatives include:
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<li>faster access to the funds once approved</li>
<li>the money from your loan is deposited into another money market account when you are going to access them through a debit card, so they will continue to earn interest until you actually withdraw or use them with the debit card. When you get a 401K loan as a check, they withdraw the full amount of the loan and send to you, meaning you have that much less earning interest for you immediately.</li>
<li>Once approved for the loan amount, you can withdraw money as needed from that account rather than getting approval each time.</li></ul>
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<b>Disadvantages of 401K debit cards </b>
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In addition to the major disadvantage of withdrawing money in ANY format from your retirement fund before you retire, there are a few other disadvantages to withdrawing the money using a debit card, including:
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<li>Potential to pay more interest than a traditional 401K loan, since each debit card transaction from one day to the next will be treated as a separate loan.</li>
<li>Most 401K loans are repaid automatically through payroll deductions, but with debit card 401k loans, you have to make payments on your own, the same way you would a credit card payment. If you miss three payments in a row, your loan will be considered a default, the full amount borrowed becomes taxable and you’ll get hit with a 10% early distribution penalty by the IRS if you’re younger than 59 and a half years old when you default.</li>

<li>Unlike credit cards that offer a grace period on purchases where no interest accrues, money used through a debit card on your 401K account is charged interest as soon as it is withdrawn.</li>
</ul><br><br>This article has been provided by Creditor Web. At CreditorWeb.com you can compare over 100 credit cards from multiple banks and apply for <a href="http://www.creditorweb.com/">credit cards</a> online.

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If you’ve got a subprime credit score, you may have wondered about low limit credit cards designed for people with poor or no credit. Do they really help you build good credit? Are their benefits great enough to justify the high fees associated with these cards? That’s the debate that’s raging right now between the Fed and numerous subprime credit card issuers.
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First, some background: In May of 2008, the Federal Reserve Bank proposed price controls for subprime credit cards. If these changes are passed, subprime credit cards could no longer charge startup fees higher than 50% of the total credit line. Startup fees higher than 25% of said credit line would have to be spread out over a period of one year.
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At first glance, these changes look great. Who wants to pay hundreds of dollars for the dubious privilege of a credit limit? Besides low limits, many subprime credit cards come with monthly fees, annual fees, and other fine print fees that bring their worth into question.
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On the other hand, more than 70 million Americans can’t qualify for prime credit cards. These people need credit, but lenders won’t give it to them because of the financial risk involved. That’s where subprime credit cards come in. Anyone can get one, and wise card holders use them to pump up their credit scores so that they can qualify for better cards in years to come.
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The credit bureau TransUnion was commissioned by Citizens for Equal Access to Credit to conduct a study of 365,000 subprime card holders. TransUnion found that 37% of those card holders saw significant improvements to their credit scores within 2 years.
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Groups like the one that commissioned the study argue that, without low-limit credit cards, millions of Americans wouldn’t be able to obtain any credit cards at all. These sentiments are echoed by people who have pulled up their credit score through the use of subprime credit cards.
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Others, including the Federal Reserve Bank, consider these cards to be another form of predatory lending. Critics claim that high fees and low credit limits aren’t doing card holders any favors.
<p><br><br>This article has been provided by Creditor Web. At CreditorWeb.com you can compare over 100 credit cards from multiple banks and apply for <a href="http://www.creditorweb.com/">credit cards</a> online.

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Governments lead by example, whether they want to or not. Sometimes they give us an example of what not to do. Wall Street execs are also unwitting role-models to millions of people. But mistakes can be made at any level, especially when irresponsible lending and spending are involved.
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To keep your own credit in tip-top shape, pay attention to these costly lessons learned by banks, mortgage lenders, home buyers, and our national government as a whole.
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Lesson #1: Credit isn’t a license to spend.
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Just because you’ve got a lot of available credit doesn’t mean you should race out to spend it all. Lenders have a job to do, and that job doesn’t always have your best interests at heart – as too many home buyers have learned in recent years.
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You must take personal responsibility for your spending. Keep records of your monthly expenses to see where your money goes. Take a hard look at the items you want versus the items you really need. Then decide if you can afford to accept and use the credit that’s been offered to you.
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Lesson #2: Living beyond your means is a bad idea.
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Many people criticize the sub-prime home buyers who got taken for a ride. Didn’t they realize they couldn’t afford those expensive houses? If so, why did they sign up for those mortgages? The answer: from top to bottom, our nation has a culture of “spend now and pay later”. Only, it’s not always easy – or even possible – to pay later.
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This situation requires foresight and honesty. Look ahead before you commit to purchase a big ticket item on credit. How do you expect your financial situation to be in 5 years? In 10? 20? Be brutally honest here. If you’re struggling to stay afloat now, how will you rearrange your income or expenses to allow such a purchase? How is the projected job growth in your industry? Are you hurting your retirement by making this purchase? You need a strong financial plan and the tenacity to stick to it.
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Lesson #3: If you ignore your credit, it will go away.
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Your credit is your financial credibility. Just like our nation is finding it hard to keep borrowing money, you, too will lose your credibility with lenders if you max out your credit cards and open more accounts just to keep on spending.
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Don’t batter your credit score by carrying too much debt. Pay down your credit cards so that your total debt is 25% or less of your total available credit. Stay on top of your payments and call your card company to negotiate if a late payment is unavoidable. It’s much better to be proactive than reactive when your credit score is on the line.
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Credit can be tricky to manage, but the effort is worth it. There’s no bailout plan in the works for the average American card holder. If you dig yourself into a hole of debt, your choices will be limited to bankruptcy, credit counseling, personal loans, or plain old default that will haunt you for years to come. Take a lesson from our current economic crisis and keep your spending in check.
<p><br><br>This article has been provided by Creditor Web. At CreditorWeb.com you can compare over 100 credit cards from multiple banks and apply for <a href="http://www.creditorweb.com/">credit cards</a> online.

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Have you looked at your credit card statement lately? If so, you might have received a nasty shock. Credit limits are falling and interest rates are rising as a result of the credit crunch. If you enjoyed low interest rates before, don’t be surprised if they double in the future.
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Many card holders have protested the changes made to their accounts. Before the credit crisis, card companies were sympathetic to the occasional late payment. They would extend the grace period on purchases or waive late fees and penalty interest.
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Not anymore. Now, card holders who miss a payment by one or two days find themselves choking on 30% interest rates. Pleading calls to card companies are largely unsuccessful; customer service agents apologize, but claim that they are simply unable to waive any fees at this time. That’s because banks and other lenders, scared silly – and justifiably so – by the current economic climate, are tightening their purse strings and their standards. To maintain good relations last year, card holders simply needed to pay in a timely manner and communicate with their lenders when a late payment was unavoidable.
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Now, minor payment infractions are enough to make card companies drop your limit like a hot potato. And you might notice your limit shrinking even if you’ve always paid on time. If your credit cards are almost maxed out, companies will reduce your limit as a precautionary measure. The less you can charge, the less they risk if you default on your debt.
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Credit limits aren’t the only casualty of recent days. Approval for credit is also low. Whereas a credit score of 720 was considered excellent a year ago, lenders now want to see a 740 or higher before they’re comfortable offering a loan with good terms. And if you work in a shaky industry, like home building or mortgage brokering, expect even more hurdles when you’re applying for new credit. Card companies know what you do for a living, and they’ll clamp down on your credit if they think your job could be at risk.
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So what can you do if you need credit? Get serious about timely payments, and keep your card balances low. To keep your accounts from getting closed due to inactivity, use each card at least once every three months. Open new accounts with better lenders, but don’t close your old accounts; doing so decreases your debt to credit ratio and, in turn, your credit score. Finally, ask your bank if they’ll work with you. If you’ve been a good customer, they won’t want you to take your business elsewhere.
<p><br><br>This article has been provided by Creditor Web. At CreditorWeb.com you can compare over 100 credit cards from multiple banks and apply for <a href="http://www.creditorweb.com/">credit cards</a> online.

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There’s a lot of talk about the safety (or lack of safety) when purchasing items with your credit card online – but what about the application process used to get the card in the first place? How safe is it to provide your personal details through an online credit card application?
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Secure e-commerce technology is actually considered safer than mailing your paper application through the United States Postal Service! Think about it for a minute: when you place something into the mail, you probably drop it in your mailbox and carry on with your day. Maybe you drop it in a big blue mailbox on the corner of the busy intersection you walk by on your way to work each morning. How difficult would it be for someone to stick their hand in and pull the envelope out of a home mailbox? Not difficult at all. It would be a little harder to take mail from the public mailboxes, but it’s still possible by an enterprising criminal!
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If your mail makes it into the post office, it is then handled by a number of postal workers. True, there are cameras and laws regarding how the mail is handled – but we know that there are dishonest people in the world and it’s possible that one may be working in your local post office. Slipping a piece of mail into their pocket would not be completely out of the question – and it just might be your credit card application, containing all of your personal data.
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The security used for online credit card applications include:
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<b>Secure Sockets Layer (SSL) Technology:</b> This encrypts the information sent between your computer and the bank’s computer via the internet. So the personal information you type into an online credit card application form is sent in a jumbled mess that the bank computer knows how to unjumble and put back together for human readers to understand. If someone tried to intercept the transmission of your credit card application, they would receive the encrypted, jumbled version.
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<b>What Is Encryption?</b>
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For math-lovers out there, encryption is actually a mathematical process that camoflouges the information to 128-bits. Remember when you were a kid, and you would create secret languages with your friends so no one else could read your notes? You maybe reversed the alphabet, so A would actually be Z and Z would become A…. or you shifted everything over three letters and then wrote your note using your new alphabet. This is elementary level encryption. When a computer encrypts your personal data, it takes each character you enter and transforms it into another character, in any one of 2 to the 128th power ways. The code would take 20,000 years to break using todays’ computers.
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<b>Two Key Algorithms:</b> Additionally, the encryption method uses a two-key algorithm. This means there is a public and private key that have to be used to “unlock” the encrypted data. These keys are required by the computer sending the information (the computer you use to fill out and submit your online credit card application), and the computer receiving the information (the bank’s computer) in order to unscramble and read the 128-bit encrypted personal data of your credit card application. A criminal intercepting an encrypted message not only has the impossible mathematical encryption to deal with; but he or she would also then need to have the public and private keys to “unlock” it.
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It is true that identity theft is a real concern, especially as we’re dealing with more of our personal information being stored online. Your concern should be more regarding non-banking websites that store personal data – since online credit card applications and banking systems use strong security and encryption methods that make them safer than mailing your information through the US Postal Service.<br><br>This article has been provided by Creditor Web. At CreditorWeb.com you can compare over 100 credit cards from multiple banks and apply for <a href="http://www.creditorweb.com/">credit cards</a> online.

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When you make purchases, it’s easy to swipe your credit card for the sake of convenience. But convenience isn’t the only benefit that credit cards offer. Did you know that when you buy goods and services with your credit cards, you’re actually using one of the most secure payment methods available? Let’s take a look at some of the safety benefits of buying with plastic.
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First, credit cards offer fraud protection. If identity thieves came into possession of your credit card number and used it to make fraudulent purchases, you’ll be taken care of. The credit card company will refund the unauthorized charges.
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Have you ever been disheartened because you purchased an item that went on sale the very next day? Some credit cards offer price protection. If you purchased your item with a credit card and see it on sale for a lower price, just provide proof of the new price to your credit card company. If they offer price protection, they’ll refund you the difference. Most Chase and Citi credit cards come with price protection.
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When you shop with credit cards, you’ll never have to spend money on extended warranties again. Just buy an item with a regular warranty, and your credit card company might allow you to extend that warranty for a year – for free. American Express and World Visa offer this service.
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What if you buy something that’s not quite right and you need to return it? If you paid in cash, you’ll have to show a receipt in order to get a refund. But if you bought the item with your credit card, all you need to do is show the merchant your credit card statement. Then they will have documented proof that you made the purchase at their store, and your refund will be forthcoming.
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Online shopping has surged in popularity. Unfortunately, when we buy things online, we can’t test out the merchandise before we make the purchase. If you end up with a defective product from a seller who doesn’t offer refunds, don’t despair; your credit card company’s got your back. They’ll reimburse you for the transaction if you report the faulty goods within 30 days.
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What if someone steals or damages an item that you purchased with your credit card? No worries. Besides the protection they extend for fraudulent purchases, credit cards also offer item insurance. Their coverage can extend into the tens of thousands of dollars. Gold and Platinum cards offer more insurance than regular credit cards. Just be sure that you have proof of your purchase as well as a well-documented account of the theft or damage incident. Include dates, details, and witness statements if applicable.
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Many travel credit cards also guarantee your reservations for hotel rooms or airplane tickets. If something happens and the airline goes bankrupt, you’ll be refunded the cost of your tickets.
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Credit cards vary, so be sure to read the fine print contained in your agreement. It will spell out the details of the safety benefits you can expect.
<p><br><br>This article has been provided by Creditor Web. At CreditorWeb.com you can compare over 100 credit cards from multiple banks and apply for <a href="http://www.creditorweb.com/">credit cards</a> online.

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Have you received credit card offers in the mail? If so, you might have wondered which cards really offered good deals. Credit cards can be helpful budgeting tools, or sinkholes of debt. The difference is in the details: some cards have high rates and fees that make it difficult to keep your debt in check. Take a moment to compare credit cards before you decide to carry one in your wallet.
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Credit card offers list the terms and conditions of various cards. When you compare credit cards, look at the interest rate, also known as the APR. It might be listed as 0%. If so, you can bet that it will be much higher in six months to a year. 0% interest cards have introductory phases. After that phase has ended, they are subject to regular interest rates. Most cards offer 12-24% interest rates. The lower the rate, the faster you’ll be able to pay off your debt.
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Also make note of the type of interest rates on your credit card offers. Some rates might be “fixed”, and some might be “variable”. Choose fixed-rate interest whenever possible. Variable interest rates can change with little warning from the card issuer. If you do choose a credit card with a variable interest rate, make sure you know when and how much that rate can change.
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When you compare credit cards, you’ll notice that some of them come with quite a lot of fees. There can be application fees, processing fees, annual fees, late fees, and fees for going over your credit limit. Fees can also apply when you close your account or make a balance transfer to another card. The credit card industry is competitive, so don’t waste your time on credit card offers that indicate exorbitant fees.
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Your next step when you compare credit cards is to look at the credit limit each one is willing to give you. Some might offer low limits, while others might offer you thousands of dollars. Higher credit limits can improve your credit score, but they can also tempt you to spend money on things you can’t really afford.
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Always check the small print on credit card offers. Companies should tell you their policies regarding interest-free grace periods, late payments, and how you will be informed if changes are made to the terms of your contract. If you have questions about specific policies, call the card’s customer service division and ask to speak with a representative. Most card companies are only required to give 14 days’ written notice when making changes to your account. There is pending legislation that seeks to compel card issuers to give more notice before such changes are made.
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Don’t just accept the first credit card offers that come along. Take the time to compare credit cards. They can be great for building up your credit, but they can also leave you with a heap of debt if you don’t use them wisely. Look for good deals with low fees and interest rates. The research you do in the beginning can save you a lot of financial heartache down the road.
<p><br><br>This article has been provided by Creditor Web. At CreditorWeb.com you can compare over 100 credit cards from multiple banks and apply for <a href="http://www.creditorweb.com/">credit cards</a> online.

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