LowCards.com Weekly Credit Card Update–July 12, 2019

LowCards.com Weekly Credit Card Update–July 12, 2019

July 12, 2019         Written By Bill Hardekopf

Credit Card Mismanagement Adds to Millennials’ Financial Woes
Once derided on the cover of Time magazine as the “Me Me Me Generation,” millennials have, in fact, become the “Owe Owe Owe Generation.” This group originally showed a healthy aversion to credit card debt. From 2008 to 2012, only 41% of those in their 20s had a credit card. That number has grown to 52%, as millennials seem to be succumbing to our credit-crazed culture. Unfortunately, a large percentage are mismanaging that debt. To that point, 8% of millennials’ card balances were seriously delinquent in the first quarter of this year, according to the New York Federal Reserve Bank. That is by far the highest for any age group. Story by Sheila Bair for CNBC

How to Manage Your Credit Card Bills, Which Experts Say Are Late More Often
Late credit card payments, while still low, have been ticking upward for the past two years, the Federal Reserve Bank of New York reported in May. Card delinquencies have been rising for borrowers under 30, in particular, but also for borrowers in their 60s, the New York Fed said. Experian, a major credit bureau, said the average card balance as of May was $6,553, up slightly from the average balance of $6,506 in the second quarter of 2018. Consumer advocates say they are concerned that more people will find themselves in trouble, should the economy slow. Story by Ann Carrns for The New York Times

Kids’ Credit Card Usage Way Up
The 2019 Parents, Kids, and Money Survey from T. Rowe Price shows that credit card use has skyrocketed among 8-to-14-year-olds over the past seven years, from 4% in 2012 to 17% today. That’s almost as high as the percentage of kids with checking accounts (19%). Story in CBN News

A Card-Skimming Hacker Group Hit 17,000 Domains–And Counting
You may not recognize the name Magecart, but you’ve seen its impact. A set of sophisticated hacking groups, Magecart has been behind some of the bigger hacks of the past few years, from British Airways to Ticketmaster, all with the singular goal of stealing credit card numbers. Think of them as the ATM skimmers of the web. And thanks to poor security hygiene, they’ve managed to hit 17,000 domains in the past few months alone. Story by Brian Barrett for Wired

Security Alerts on Credit Cards Work. Just Be Sure to Set Them at the Lowest Amount Possible
“You should set your security alerts on your bank and credit card accounts as low as they’ll allow,” says Jeni Rogers, author of “200+ Ways to Protect Your Privacy.” “What a lot of fraudsters do is try small charges, sometimes no more than a few cents, with the stolen credit card data first. They do this to validate the card works before going on to make bigger purchases, and the amount is often so low that it will not trigger account alerts or even be noticeable in your day-to-day balance on your account.” Story by Michelle Singletary for The Washington Post

Kamala Harris Says Credit Scores Should Include Rent, Cell Phones and Utilities
Senator Kamala Harris wants to add more data to how credit bureaus calculate credit scores as part of a broader plan to address the black homeownership gap in the U.S. Harris called for amending the Fair Credit Reporting Act to require credit reporting agencies to include payments of rent, cellphone bills and utilities when calculating credit scores. There are an estimated 26 million people who are “credit invisible” and another 19 million who are said to have “unscorable” files, according to the CFPB. These people don’t have enough bank or credit-union accounts to have a credit score by today’s standards. Story by Jacob Passy for MarketWatch

Wearables: A New Opportunity In Banking
The market for wearable digital technology is taking off. Market revenue was expected to reach $8.3 billion in 2018 and grew at an estimated compound annual growth rate of more than 17% from 2013 to 2018. It shows no signs of slowing down, with 31.4% growth in quarter four of 2018 and 27.5% more devices shipped than in 2017. I believe wearables represent an enormous opportunity in banking and are likely to revolutionize the industry over the next decade. Story by Mohit Joshi for Forbes

13,000 Shell-Branded Stations Now Accept WEX Mobile Payments
Financial technology service provider WEX announced WEX Fleet DriverDash is now available to fleet drivers at thousands of Shell-branded locations across the country. DriverDash enables drivers to authorize a fuel transaction from inside their vehicles. It uses a device’s biometric capabilities to ensure security and documents the purchase electronically, creating a seamless, secure transaction. Story by Isabelle Gustafson for Convenience Store Decisions

Facebook’s Libra Cryptocurrency Again Comes Under Fire from Global Policymakers
Facebook’s planned cryptocurrency hasn’t even launched yet, but it’s been the talk of the town for politicians and central bankers worldwide. The social network’s digital token, called Libra, continues to be faced with warnings from the international community, amid ongoing worries about its regulatory implications. Federal Reserve Chairman Jerome Powell called on the social network to halt plans for its digital token, worried regulators are lacking answers from the company on matters such as privacy and consumer protection. Story by Ryan Browne for CNBC

Top 10 Largest Credit Card Companies In The United States
A look at the top 10 largest credit card companies in the United States. There are two types of players in the credit card business: credit card issuers and credit card networks. The issuers are banks and credit unions that issue credit cards to individual users and small businesses. They accept payments, offer rewards, and bill your account for purchases. Credit card networks such as Visa and MasterCard facilitate payments at the point of sale and handle the processing of your credit card transactions. They also provide secondary benefits such as fraud liability, travel insurance, and extended warranties. Story by Vikas Shukla for Value Walk

One Month Left to Opt Out of Chase Binding Arbitration
If you have a JP Morgan Chase-branded credit card, you have 30 days left to opt out of a binding arbitration provision the bank announced to its customers in May. If you fail to opt out, you’ll have limited legal options if you ever have a dispute with Chase, whether it’s about billing, fees, debt collection practices, or anything else. You will forgo the option of being able to sue in court with a judge and jury and will be forced into arbitration instead. And you will no longer be entitled to join a class action lawsuit against Chase if you ever come to believe you are a member of a group of people who’ve been wronged by the bank. Story by Octavio Blanco for Consumer Reports

bill-hardekopf

About Bill Hardekopf

Bill Hardekopf is the CEO of LowCards.com and covers the credit card industry from all perspectives. Bill has been involved with personal finance for over 15 years. He is a frequent contributor to Forbes, The Street and The Christian Science Monitor.
View all posts by Bill Hardekopf
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