If you plan on renting a car during an upcoming summer vacation, using a credit card to pay for it may save you money and provide some increased protection.

When you rent a car, the rental agencies will try to sell a collision damage waiver, commonly referred to as a CDW. This is the insurance that  rovides coverage for damage to the rented vehicle. This can cost about $15 per day.

Depending on your policy, your personal auto insurance may cover any damage to the rental car. In addition, your credit card issuer may offer CDW coverage, but you must pay for the rental car in full with your credit card for this coverage to be valid. You must also decline the coverage from the rental car company. The CDW coverage from your credit card will be secondary to your personal coverage.

Make sure you understand the coverage on your personal auto insurance and your credit card before you rent a car. Since coverage varies from one issuer to another, it is a good idea to call both your car insurance and credit card company to get the specific details of your rental car coverage. Ask for the coverage information in writing.

Coverage can vary depending upon a number of issues:

* Rental periods vary. Visa and MasterCard only provide coverage if the rental is less than 15 consecutive days within your country of residence, and 31 consecutive days outside your country of residence.

* There may be limits on the dollar amount of coverage. For instance, the Discover Car Rental Insurance Plan provides $25,000 of secondary  collision damage.

* Does the coverage protect just the cardholder (American Express) or the cardholder and authorized drivers (Visa and MasterCard)?

* The insurance may not cover damage done in a foreign country, or may not apply to expensive, exotic or antique automobiles.

* Some cards do not cover damage from dirt or gravel roads, or damage  done due to off-road driving.

The first thing to do when you need to file a claim is to contact the credit card company and inform them of the accident. They will usually have you do the following:

* Submit the completed and signed CDW form, postmarked within 90 days of theft or damage.

* Include a copy of the receipt or monthly billing statement as proof the entire rental was paid with your credit card.

* Include a statement from your insurance carrier showing the costs for which you are responsible and any amounts that have been paid toward the claim.

* Include a copy of the accident report form, the auto rental agreement, and the estimate or repair bill.

Why Are Credit Report Errors So Hard to Fix?
A yearlong investigation by the Columbus Dispatch has uncovered systemic flaws in the data collection and dispute resolution processes used by the credit bureaus. For Americans who find errors in their credit files, this
can mean months of frustration trying to get the mistakes corrected. And during that painful process, many people are denied credit cards, mortgages and car loans, or are forced to pay much higher interest rates because of
errors on their reports–errors consumer advocates say the bureaus could easily fix if they so choose. The Dispatch’s research shows an error rate of around 30%. In many cases, attempts to fix even simple mistakes dragged on for months, according to interviews with some of the people interviewed by the paper. Story by Martha White for Time.

Bill Would Crack Down on Nasty Overdraft Fees
Rep. Carolyn Maloney doesn’t want you to unwittingly fork over $35 for a cup of coffee. Maloney introduced the “Overdraft Protection Act,” a bill that aims to crack down on overdraft fees. The bill aims to limit when and
how banks charge consumers who try to spend more money than they have in their bank account. If approved, the House bill would also: require overdraft fees to be “reasonable and proportional” to the cost of the transaction; limit the quantity of fees that can be charged to one per month and six per year; ban banks from manipulating the order in which transactions are posted. Critics say this is done deliberately to maximize overdraft fees. Story by Herb Weisbaum for MSNBC.

Contactless Payments–Bad News for Consumers?
A study released by MasterCard shows that consumers may spend up to  30 percent more with the new contactless payment methods than they do  with credit cards. Contactless payments take place with credit cards or  smart phones that have chips implanted with radio frequency identification, commonly referred to as RFID. Consumers simply “wave” the card or smart phone over a payment terminal rather than having to “swipe” the card through the terminal. Contactless payment methods are becoming more common. Visa  has recently introduced PayWave; MasterCard has PayPass and American  Express has Express Pay. The MasterCard study predicts 150 million mobile  devices will be contactless enabled within the next few years. Story by Lynn  Oldshue for LowCards.com.

Many Households Have Negative Self Worth, Survey Finds
Feeling like you’re drowning in credit card debt, student loans and medical bills? If you are, you’re likely not alone–and that could explain why everywhere you turn you hear ads offering some quick-fix deal to cope with debt. About one in five U.S. households owe more on credit cards, medical bills, student loans and other debts that aren’t backed by collateral–so not including car loans–than they have in savings, checking accounts and other liquid assets, according to a new University of Michigan report. Credit card debt can turn into a huge burden. About 10 percent of families in 2011 had $30,000 or more in credit card debt and other non collateralized debts. That compares with 8.5 percent in 2009. Story by Susan Tompor for the Detroit Free Press.

American Express Targets College Students With Campus Prepaid Card
American Express, the largest credit-card lender by spending, is expanding its efforts to grow beyond affluent customers with a new reloadable prepaid card being sold at more than 500 Barnes & Noble bookstores on college campuses. The new Campus Edition Prepaid Card is an extension of an existing product the company rolled out last summer in a bid to attract new customers who don’t qualify for one of its credit or charge cards, which are typically offered to consumers with the best credit. The lender is aggressively pushing to reach customers to whom it typically couldn’t offer credit cards because they had insufficient or blemished credit histories. Story by Andrew Johnson for the Wall Street Journal.

Consumer Credit Increases by the Most in Decade
U.S. consumers swiped their credit cards more often in March after cutting back during the previous two months. The increase helped drive overall borrowing up by the most in more than a decade. Total consumer borrowing rose $21.4 billion in March, the Federal Reserve said Monday. That’s the seventh straight monthly increase and the largest since November 2001. A measure of auto and student loans increased $16.2 billion. A separate gauge of mostly credit card debt rose $5.2 billion after declining in January and February. Story by Martin Crutsinger for the Associated Press.

Chase Latest Issuer to Launch Prepaid Cards
Chase announced it will test a reloadable prepaid card called Chase Liquid in approximately 200 branches, and if successful, will roll out the product nationally this summer. Chase, the largest U.S. lender in terms of assets, enters a market that is growing in popularity. According to Javelin Research, prepaid use grew 18% in 2011 compared to 2010. A number of major card issuers are turning to prepaid cards. One reason could be that the interchange fee on prepaid cards is not controlled by the Durbin Amendment. Story by Lynn Oldshue for LowCards.com

U.S. Credit Card Losses Nearing the Bottom
Net charge-offs in the U.S. credit card sector could fall modestly in the second quarter of 2012, given current delinquency trends, according to Fitch Ratings. But Fitch expects loss rates to exit 2012 higher than where they started. Card segment profitability was strong across the sector, with the top seven issuers posting a return on average loans of 4.2% in 1Q12, on average, compared with 4.4% in 1Q11. Story by Reuters.

LowCards.com Weekly Credit Card Rate Report
Based on the 1000+ cards in the LowCards.com Complete Credit Card Index, the average advertised APR for credit cards is 14.26 percent, identical to last week. Six months ago, the average was 14.17 percent. One year ago, the average was 14.01 percent.

The easier the method of payment, the more consumers tend to spend. Research has shown that consumers spend more when paying with credit cards than they do with cash.

Now a study released by MasterCard shows that consumers may spend up to 30 percent more with the new contactless payment methods than they do with credit cards.

Contactless payments take place with credit cards or smart phones that have chips implanted with radio frequency identification, commonly referred to as RFID. Consumers simply “wave” the card or smart phone over a payment terminal rather than having to “swipe” the card through the terminal.

Contactless payment methods are becoming more common. Visa has recently introduced PayWave; MasterCard has PayPass and American Express has Express Pay. The MasterCard study predicts 150 million mobile devices will be contactless enabled within the next few years.

The MasterCard study took some of their customers and divided the accounts into low, medium and high spend segments based on their monthly spend prior to introducing the contactless payment methods. The 30% increase in spending was consistent across all three segments.

The study also found that after the first contactless transaction, users spend an average of 25 percent more online, 64 percent more abroad and 20 percent more in recurring payments.

While this increased spending may be good news for banks and retailers, contactless payments can be dangerous to the household budget. Consumers can now make a purchase with just a wave of the phone without a thought about how much the purchase really costs. It could make it too easy for some people to buy something spontaneously or throw a few more items into the shopping cart. Making good spending decisions takes analysis and discipline.

Here are some tips for making a contactless payment:

* Remember that the rules of credit cards and debit cards still apply. If your account runs through a credit card, pay it off completely on time each month.

* If you can’t afford to pay cash for it now, you can’t afford it with contactless payment.

* Responsibly using contactless payment takes discipline. Think about every item you purchase as if you are paying cash. Write down each purchase in a notebook so you can keep track of where your money goes.

JP Morgan Chase is the most recent issuer to enter the prepaid market.

Today, Chase announced it will test a reloadable prepaid card called Chase Liquid in approximately 200 branches, and if successful, will roll out the product nationally this summer.

Chase, the largest U.S. lender in terms of assets, enters a market that is growing in popularity. According to Javelin Research, prepaid use grew 18% in 2011 compared to 2010. In June 2011, American Express introduced a prepaid card, as did financial advisor Suze Orman this January.

Historically, two of the drawbacks to prepaid cards are the high fees associated with their use and the inability of the cards to help consumers build their credit scores.

Chase Liquid has a flat monthly fee of $4.95. Customers will not be charged for making withdrawals and deposits at Chase ATMs and branches, for checking their balance or for speaking with a customer service representative.

Many prepaid cards are marketed to unbanked consumers or those that have damaged credit. Now major issuers may be entering the market for another possible reason.

When the Durbin Amendment went into effect in October, banks suffered a severe revenue loss since the interchange fee that retailers have to pay on debit card transactions was basically cut in half. Banks have scrambled to come up with other revenue streams to make up for this lost revenue. A number of major card issuers are turning to prepaid cards. One reason could be that the interchange fee on prepaid cards is not controlled by the Durbin Amendment.

Americans are Feeling More Comfortable About Debt
The financial shocks that began in 2007 prompted a lot of Americans to change their free-spending ways, especially when it came to taking on debt.
Several years on, some Americans may be reversing course, either by choice or necessity.

The Federal Reserve said Monday that Americans sharply increased their borrowing for big-ticket items like cars and education expenses in March and whipped out their credit cards more often.

“I would hope that we as consumers have learned our lesson from the economic downturn that hey, we’ve got to watch our spending and spend what we can afford,” said Bill Hardekopf, CEO of lowcards.com, a credit card comparison website. “I would think a great number of people did learn that.”

Hardekopf also has seen an increase in credit card offers to higher-risk borrowers with lower credit scores. After years of tight credit they may be getting tempted by the more aggressive offers, he said.

Story by Allison Linn for the Today Show

Consumer credit in March posted the biggest gain since November 2001 according to the monthly G19 report released today by the Federal Reserve.

Overall consumer borrowing rose by $21.3 billion to $2.54 trillion. This was the seventh consecutive month of increases in overall borrowing.

The majority of this increase was with non-revolving debt, primarily car and student loans. This accounted for $16.2 billion of the increase. Some analysts believe that student loans are rising at an increased pace since the interest rate on student loans may increase in July.

Revolving debt, made up mostly of credit card debt, posted the first monthly increase in three months. It rose $5.1 billion to $803.6 billion, an annualized rate of 7.8 percent. For the first quarter, however, credit card debt showed a slight 0.1 percent decrease on an annualized basis.

Are Arbitration Clauses Good for Consumers?

If you have applied for a credit card, checking account or cell phone,
you have probably signed an arbitration clause that forfeits your right
to a class-action lawsuit or jury trial if something goes wrong.

Signing your name at the bottom of a long legal document has become
a routine part of the process and it is easy to overlook what you are
giving up in the fine print.

“If you want these services, you usually have to sign the agreement,” says
Bill Hardekopf, CEO of LowCards.com. “This is fine until you have a
problem and want to force the company to action. Arbitration usually
gives an advantage to the company.”

The Consumer Financial Protection Bureau announced plans to study
the use of arbitration clauses in financial contracts. They will analyze the
prevalence of arbitration clauses in agreements for consumer financial
products, the types of claims that consumers bring in arbitration cases
and how arbitration affects consumers and companies. Through the
Dodd-Frank bill, Congress gave the agency the power to create
regulations that limit or end the practice.

The CFPB is asking citizens to voice their opinions and experiences
about arbitration as part of its inquiry. Comments must be submitted
by June 23, 2012. Information can be found here.

Companies that use pre-dispute arbitration clauses claim that arbitration
is fair, and it is faster and less expensive than litigation. In two recent
cases, the Supreme Court has sided with companies in favor of binding
arbitration. In January, the Supreme Court overturned a decision by the
U.S. Court of Appeals for the 9th Circuit that cardholders could sue
CompuCredit. In 2011, the Supreme Court agreed that AT&T Mobility
could force customers to settle their disputes through arbitration.

According to the San Francisco Chronicle, the Pew Safe Checking in the
Electronic Age Project of October 2010 researched 265 checking accounts
offered by the ten biggest banks and found that 71 percent had mandatory
arbitration clauses preventing customers from going to court to settle a
dispute.

In 2009, Bank of America dropped the arbitration clause from credit card
agreements in response to a lawsuit. JP Morgan Chase dropped the arbitration
clause from credit card agreements in 2010 for at least 3 1/2 years.

Visit msnbc.com for breaking news, world news, and news about the economy

Transcript

>>>Time now for Todays Money 911. That’s where we tackle your financial problem. From creating a budget, to wanting to buy your first home, we’ve got expert advice from Jene Chatzky, Today, Financial editor and the author of money rules.  Farnoosh Tarabi is a personal finance expert and the host of financially fit on yahoo finance and Sharon Epperson is CNBC’s personal finance correspondent. Good to see you.

>>>Good morning.

>>> Nice to see you.

>>>Good morning.

>>>We’re going to get started. We’re going to go right to Skype. Let’s all say hello to Heidi. She’s skyping in from Sugar Loaf Key, Florida. Heidi what’s your question?

>>>Okay. We are a United States Coast Guard family and our new assignment is bringing us to Baltimore Maryland for the next 3 years. I found that renting in the Baltimore suburbs is incredibly expensive while similar homes for sale are actually affordable. So should we consider buying when we know well have to move in 3 years, or should we plant save and rent even though it will cost a lot more monthly?

>>>Alright good question, we love the Coast Guard.

>>>Yes a really good question. Yes we do.

>>>We love you al!

>>>Thank you!

>>>So Heidi, here, the rule is generally, you got to be in that house 3 to 5 years with an emphasis on 5 in order to make buying affordable in most cases. But the fact that you looked at the market in Baltimore, you know that rentals are expensive. This is one of those areas that is starting to come back in real estate  in the country and mortgage rates are so low, make me think that buying might not be such a bad thing to do. Particularly if you buy something that either has a rental history already or you may be able to rent out when you make your next move to the next location. Just make sure that you keep in mind  the fact that maintenance on that home once you own it instead of rent it is going to add 1 to 2 percent of the value of that property each and every year to your costs. So as long as you factor that in, and the numbers still make sense, I think it is probably worth a try. Go see some places, list some realtors.

>>>Alright Heidi, and thank you and your husband for your share with us. Thanks so much. Now let’s head to the phone line. We’re going to go to Barron, calling in from Pittsburg, PA. Barron good morning and what’s your question?

>>>Good morning. I bought my house last year with a 5 percent interest rate. I’m wondering how thin could I try to refinance my house.

>>>Farnoosh?

>>>Hi Barron. So my guess is you can probably refinance now. Generally speaking you can refinance at any point and for as many times as you want. There are some exceptions, and I’ll tell you what they are. One, some banks have limitations, restrictions on when you can refinance, their called season period. They want you to be actually living in the home for anywhere from 3 months, it could be 2 years. So check your loan documents. Make sure you talk to your loan officer. Find out what exactly are your allowances. But I think you’re probably in the clear. I mean I refinanced 3 months after getting my first mortgage. If you’re working with the same bank, even if there are some restrictions or limitations, they may be willing to waive them for you because you’re keeping your business with them. If you’re going to jump ship they might give you a little bit of a harder time.

>>>Alright good luck Barron and thanks for the call. Okay lets go back to Skype were going to talk to bill. He’s in Oil City, PA. Hey Bill what’s your question?

>>>Hi, I’ve never used a budget before, but I’m going to be retiring soon and I think it’s about time. I read about mint.com, but when I went there one of the first things they wanted was my username and password for my credit card account. That would also give them access to my checking and savings and I was kind of uncomfortable about it. So I’m wondering where’s the best place to go to setup a budget, to learn about it and to do it.

>>>And, the most important, keeps him comfortable.

>>>Keeps him comfortable and keeps his money safe. Well Bill I totally understand your apprehension here. And you may have heard us talk about mint.com on this segment before. I’m a fan, I use it, I really do like it. But you’re right to be weary putting your username and password there when so many banks and brokerage firms always tell us you know keep your username and passwords away from a third party. But let me make sure that you understand the safety and security measures that mint.com takes because they are important. I talked to a number of people, a consumer group, and identity theft resource center. I talked to an online security firm, Gardner group, and I talked to mint.com themselves. They have had no security breaches by all of those accounts. And what they do is they use the same encryption service that a bank or brokerage firm uses. They have the same physical security that a bank or brokerage service has.

Read the rest of this entry »

Millennials Struggle with Financial Literacy
Studies show that a majority of young people in the United States have poor financial literacy, a trend that has been consistent over the past decade and shows few signs of improving. Today’s twentysomethings hold an average debt of about $45,000, which includes everything from cars to credit cards to student loans to mortgages. How bad is the problem? Fewer than half of states make high school students take an economics class, and just 13 require a personal finance class, according to a 2011 survey by the Council for Economic Education. In those 13 states, though, the payoff is clear: students who had taken such courses were more likely to go on to save money and pay off a credit card bill in full each month, and less likely to be compulsive buyers, max out credit cards and make late payments.
Story by Hadley Malcolm for USA Today.

Nine U.S. Banks Said to be Examined on Overdraft Fees
Two years after regulators gave Americans more power to manage overdrafts of their checking accounts, the Consumer Financial Protection Bureau is reviewing bank practices to determine if the crackdown went far enough. The agency is scrutinizing nine banks including JPMorgan Chase, Wells Fargo and Bank of America, said four people briefed on the examination. The inquiry focuses on how financial institutions persuade customers to enroll in what they call overdraft protection programs. Examiners are looking at online and mailed marketing material as well as scripts used by the banks’ customer service representatives to determine whether they could be confusing to consumers, said the people. While tighter rules could help U.S. consumers, they also could threaten a major revenue stream for banks already struggling to replace income pinched by new regulations. Story by Carter Dougherty and Margaret Collins for Bloomberg.

Brush Up on Credit, Debit Cards Before Trip
When actor Karl Malden used to warn Americans not to leave home without them, he was referring to travelers checks. Now, credit and debit cards have become the indispensible means of payment for anyone in transit. Travelers checks are past their prime. You can still buy them, but the volume of outstanding checks has dropped from a peak of $9.1 billion in 1995 to $4.2 billion today, reports the Federal Reserve. That has opened the door for the increased use of credit and debit cards by travelers. With the summer vacation season approaching, here are some relevant tips. Story by Russ Wiles for the Arizona Republic.

Don’t Let Debt Weigh Down Your Retirement
Not so long ago debt “was a four-letter word when spoken in the same breath as “retirement.” Before waltzing into their golden years, older Americans paid off their loans, then celebrated by burning the mortgage. How things have changed! Now a third of folks 65 and older have a mortgage vs. 20% two decades ago, according to recent Census data. Median balance: $56,000. Meanwhile, seniors 65 and up carry an average $10,235 on credit cards, think tank Demos reports. Story by Karen Cheney for Money Magazine.

The Importance of Financial Literacy
The less you know about credit cards, the more you will pay, especially if you are a woman. A study from the FINRA Investor Education Foundation showed that women with low levels of financial literacy were more likely to take part in costly credit card behaviors than men with a low level of financial literacy. However, there were no differences in behavior between men and women with high financial literacy. The findings imply that increasing financial literacy can improve credit card management as well as reduce or possibly eliminate gender-based differences in credit card behavior. According to the survey, women were six percentage points more likely than a man to be charged a late fee, five percentage points more likely to carry a balance, and four points more likely to pay the minimum payment on their cards. Story by LowCards.com.

New Jersey Church Burns Credit Cards to Protest Predatory Lending Practices
Sometimes, more than incense and candles are burned at Church. Last Sunday, members of the First Baptist Church of Lincoln Gardens in New Jersey gathered to burn mailed credit card offers following church services in an act of protest against predatory lending, myCentralJersey.com reports. The group was led by Rev. DeForest B. Soaries Jr., an outspoken activist against aggressive lending practices and a proponent of debt-free living. Now Soaries is concerned credit card companies may be taking advantage of low-income Americans, whose poor credit can result in higher interest rates and stiff late payment fees. Recent data supports his claim: credit card companies issued 1.1 million new cards to borrowers with poor credit in December, an increase of 12.3 percent from the same month last year. Story by Harry Bradford for Huffington Post.

Consumer Bureau Probes Arbitration Clause in Financial Products
The government’s new consumer watchdog is launching an inquiry into the use of arbitration clauses in financial contracts, which keep disputes over credit cards and other products out of the court system. Consumer advocates long have complained that so-called “pre-dispute arbitration clauses” gave too much of an advantage to financial firms over average Americans, who often don’t realize they’ve signed away their right to sue. But companies said third-party arbitration is fair and saves money because it’s faster and less-expensive than going to court. The Supreme Court has backed the use of arbitration clauses in contracts over a consumers’ right to go to court.
Story by Jim Puzzanghera for the Los Angeles Times.

Chasing Fees, Banks Court Low-Income Customers
An increasing number of the nation’s large banks–U.S. Bank, RegionsFinancial and Wells Fargo among them–are aggressively courting low-income customers with alternative products that can carry high fees. They are rapidly expanding these offerings partly because the products were largely untouched by recent financial regulations, and also to recoup the billions in lost income from recent limits on debit and credit card fees. Banks say that they are offering a valuable service for customers who might not otherwise have access to traditional banking and that they can offer these products at competitive prices. The Consumer Financial Protection Bureau, a new federal agency, said it was examining whether banks ran afoul of consumer protection laws in the marketing of these products.Story by Jessica Silver-Greenberg and Ben Protess for the New York Times.

Consumers Need More Protection, Not Less
The new Consumer Financial Protection Bureau is supposed to shield Americans from abusive banking and lending practices. And in its first nine months, it has been doing a good job. But consumer advocates are rightly alarmed that the bureau might now revoke a Federal Reserve rule that limited the fees credit card issuers can charge new customers. The Consumer Financial Protection Bureau argued for the rule in district court. But it now seems ready to give in. Instead of appealing, the bureau has proposed a rule that would no longer limit charges levied prior to the opening of the credit card account. If the proposed rule stands, countless low-income Americans could be harmed. It would also send a message of weakness to the credit card industry and could open the door to a new round of abuses. Story in the New York Times.

LowCards.com Weekly Credit Card Rate Report
Based on the 1000+ cards in the LowCards.com Complete Credit Card Index, the average advertised APR for credit cards is 14.27 percent, slightly higher than last week’s average of 14.21 percent. Six months ago, the average was 14.16 percent. One year ago, the average was 14.15 percent. Story
by LowCards.com.

Here’s another reason not to allow your gift cards to gather dust: Your unused balance could be used to put a new coat of paint on a sign for the Jersey turnpike.

At least that’s the prospect facing gift card owners in the Garden State. New Jersey will soon require gift card sellers to obtain ZIP codes from buyers so it can claim unused balances of cards that have been inactive for two years. Gift card owners will be able to file claims to get their money back, thus preventing unused balances from reverting to retailers, the New Jersey Treasury Department said in a statement. There will be no time limit on redemptions.

In 2006, the value of unused gift cards — known in the industry as “spillage” — totaled $8 billion, or 10% of all gift cards. Last year, the value of unused gift cards was $2 billion, or about 2% of gift cards, CEB TowerGroup estimates.

Still, $2 billion is a lot of money, and if New Jersey succeeds in reaping revenue from spillage, other states may follow suit, says Bill Hardekopf, chief executive of LowCards.com.

Story by Sandra Block for USA Today

The less you know about credit cards, the more you will pay, especially if you are a woman.

A study from the FINRA Investor Education Foundation showed that women with low levels of financial literacy were more likely to take part in costly credit card behaviors than men with a low level of financial literacy. However, there were no differences in behavior between men and women with high financial literacy.

The findings imply that increasing financial literacy can improve credit card management as well as reduce or possibly eliminate gender-based differences in credit card behavior.

According to the survey, women were six percentage points more likely than a man to be charged a late fee, five percentage points more likely to carry a balance, and four points more likely to pay the minimum payment on their cards.

Women were also less likely to pay their balance in full and comparison shop for credit cards.

But many of these gender differences were minimized or eliminated by increasing the level of financial literacy.

One exception to this is in the area of interest rates. Both men and women with low levels of financial literacy pay more in credit card interest rates than those with high financial literacy. But females pay half a percentage point more in credit card interest rates than men, regardless of financial literacy level. This could amount to thousands of dollars over a lifetime.

Financial education should start at home and at an early age. Parents should teach their children how to budget, spend wisely, and properly use credit. These are some of the most valuable lessons we can teach our children. This is not an education they should learn by making their own mistakes.

Here are some credit card tips for women:

If you can’t afford to pay for it with cash, you can’t afford to pay for it with a credit card. A credit card is a high interest loan. Unless you pay off your balance each month, you will be charged interest on every single purchase you make. If you do carry a balance, stop using your card except for emergencies.

* Don’t apply for a card on impulse. The offer you receive in the mail may not be the lowest rate you can get. Shopping for the lowest rates can save you hundreds of dollars in interest payments each year. Credit card comparison sites offer easy ways to compare all card offers.

* Avoid store cards. The discounts may be tempting, but stores offer credit cards because they make money, not to save you money. Many retail stores offer credit cards with interest rates between 23% and 30%, much higher than bank-branded credit cards. Many stores train their employees how to push credit cards to customers and to overcome your objections.

* Pay on time, every time. A due date can pass by so quickly and quietly, but the consequences are harsh. The late fee is typically up to $35 and the interest rate can increase up to the penalty rate that can be as high as 30%. It can even pull down your credit score and push up other interest rates. Set a text or email payment reminder so the date doesn’t pass you by.

* Pay more than the minimum payment. Issuers benefit when you pay the minimum monthly payment because it will take you longer to pay off the balance, and hence, cost you more in interest penalties. Pay as much of the balance as you can each month until you have the balance completely paid off.

The minimum payment is just a trap that squeezes out many years of interest payments without significantly paying down the balance. Look over your next credit card bill to find how long it will take to pay off your balance if you make only the minimum payment. You will be shocked to see how much you will pay in interest.

* Pay often. You can make extra credit card payments any time, not just on your due date. Use birthday money, tax returns, consignment sales, second jobs, wherever you can find extra cash. Paying down this debt will bring better returns than most investments.

* Know your credit limit and stay under it. Your credit limit is available credit, but not how much you have permission to spend. If you carry a balance, it should be less than 30% of your credit limit. If you are using most of your credit limit, this can be a red flag that you are a risk for default and it can pull down your credit score.

Experts: Most Purchases Will Be Made With SmartPhones by 2020
Most Internet users and tech experts think cash and credit cards will become things of the past in the next decade as people turn to their mobile phones to make payments, results from a newly released survey suggest. Nearly two out of three respondents to the survey (65%) told the Pew Internet & American Life Project that they think most people will have fully adopted the “mobile wallet” as their day-to-day means of paying by 2020. In a December report from comScore, 38% of smartphone owners had used their phones to make a purchase of some kind. Pew’s report said those who think mobile payments will dominate in the coming years frequently said the boom in smartphone ownership, convenience and security are key factors that make “these systems an obvious choice to replace established modes of payment in day-to-day commerce.” Story by Doug Gross for CNN.

Banks Pitch Prepaid Cards on College Campuses
More banks are hawking prepaid cards as they try to win over the college crowd, a once lucrative market that analysts say is less profitable because of regulatory restrictions on credit and debit cards. Several lenders have begun offering prepaid cards that double as a student’s campus ID card. Students can use the cards to gain building access, check out library books and pay for printing or even beer. Because the plastic carries the logos of card networks like MasterCard Inc. and American Express Co., students can use them to make purchases at off-campus merchants and online retailers that accept those brands. The prepaid push on campuses comes as new regulations have made it more difficult for banks to market credit cards to young consumers. The Credit Card Accountability, Responsibility and Disclosure Act of 2009 included provisions limiting but not eliminating lender’s ability to market credit cards on campuses and at school-sanctioned events. The regulation also included restrictions for lending to consumers under 21. Story by Andrew Johnson for the Wall Street Journal.

Consumer Watchdog Agency Backs Off on High-Cost Credit Cards
The Obama administration’s consumer financial watchdog wants to undo a limit on some upfront fees on credit cards, prompting criticism that it could hurt borrowers with poor credit. The Consumer Financial Protection Bureau is backing away from restrictions on what the industry calls fee-harvester cards. Issuers of these cards make such customers pay a large fee before they can receive cards with very low credit lines. A credit card law passed by Congress in the aftermath of the financial crisis included a provision saying non-penalty fees could amount to no more than 25% of the credit limit during the first year after an account is opened. This included annual fees and application fees. Story by Scott Reckard for the Los Angeles Times.

College Students are Credit Card Dunces
Even after lawmakers made it harder for banks to give college kids credit cards, credit card debt is still a big problem on U.S. campuses. A new study pinpoints the simple, frustrating reason why: Students don’t know anything about the fundamentals of credit card use. “It is clear the status quo of financial literacy is a failure,” says the study. So, just how dumb are kids these days? Although 70% of undergrads and 96% of graduate students have credit cards, fewer than 10% pay their balance in full every month. Only 15% have any idea how much their interest rate is. Story by Martha White for Time.

The Changing Landscape of Unused Gift Cards
Gift cards are a popular gift to give and receive. However, if they are not used, they may be turned over to your state government as unclaimed property. Escheatment laws have required financial institutions to report and remit abandoned or unclaimed intangible property to the state. This has historically applied to uncashed checks, bank accounts and mutual funds. But in a time of budget cuts, recession, and shortages, it is not surprising that many states have expanded escheatment rulings to include unused gift cards, bringing in millions of dollars each year. According to the Wall Street Journal, New York state took in $9.6 million in unclaimed gift card money in 2008, but only $2,150 was distributed to consumers. Story by
LowCards.com.

Bank of America to Restructure, Integrate Business Divisions
Bank of America Corp is all set to realign its business divisions to streamline its banking operations with a renewed focus to sell various products to its customers. In a filing with the Securities and Exchange Commission, the second-largest US bank by assets revealed its plan to reduce its divisions to five from six, and to form one consumer-banking division by integrating its credit-card operations into its retail and small-business banking business. Under the cost cutting program ‘Project New BAC’, Bank of America carried out management changes and new organizational structure and also axed 30,000 jobs and reduced expenses by $5 billion. Story in Banking
Business Review.

The Best Credit Cards of 2012
In the battle of the plastics, credit cards have lately emerged as the surprise champs, offering fewer fees and better rewards than the typical debit card. But as banks and credit card companies flood mailboxes with a new round of offerings, experts warn that finding the best deals isn’t getting any easier. Unlike the days of frozen credit following the market meltdown of 2008, consumers have plenty of offers. Card issuers mailed nearly 4.1 billion credit card solicitations last year–a record high and up 44% from the previous year, according to Ipsos Mail Monitor, which tracks credit card mailings. Still, only a select number of cards are truly consumer-friendly. SmartMoney and a team of experts dug through the cards to find the best new ones with relatively low rates, long-lasting promotional offers and generous rewards. Story by AnnaMaria Andriotis
for SmartMoney.

To Pay Off Loans, Grads Put Off Marriage, Children
Total U.S. student loan debt outstanding topped $1 trillion last year, according to the federal Consumer Financial Protection Bureau, and it continues to rise as current students borrow more and past students fall behind on payments. Moody’s Investors Service says borrowers with private student loans are defaulting or falling behind on payments at twice prerecession rates. Most students get little help from colleges in choosing loans or calculating payments. Most pre-loan counseling for government loans is done online, and many students pay only fleeting attention to documents from private lenders. Both private and government loans, however, lack “the most fundamental protections we take for granted with every other type of loan,” says Alan Collinge, founder of StudentLoanJustice.org, an advocacy group. When borrowers default, collection agencies can hound them for life, because unlike other kinds of debt, there is no statute of limitations on collections. And while other kinds of debt can be discharged in bankruptcy, student loans must still be paid barring “undue hardship”. The implications last a lifetime. A recent survey by the National Association of Consumer Bankruptcy Attorneys says members are seeing a big increase in people whose student loans are forcing them to delay major purchases or starting families. Story by Sue Shellenbarger for the Wall Street Journal.

LowCards.com Weekly Credit Card Rate Report
Based on the 1000+ cards in the LowCards.com Complete Credit Card Index, the average advertised APR for credit cards is 14.21 percent, slightly lower than than last week’s average of 14.33 percent. Six months ago, the average was 14.26 percent. One year ago, the average was 14.13 percent. Story by LowCards.com.