LowCards.com Weekly Credit Card Update–May 24, 2019

LowCards.com Weekly Credit Card Update–May 24, 2019

May 24, 2019         Written By Bill Hardekopf

Millennials Had Been Good at Staying Out of Bad Credit Card Debt. Not Anymore
Millennial and Gen Z Americans, many raised during the depths of the Great Recession during the late 2000s and early 2010s, long have been wary of Wall Street products and act more thrifty than their parents’ generations. Recent research from the New York Federal Reserve, though, reveals an alarming trend: Rising credit card delinquencies among these younger consumer classes. Among Americans age 18 to 29, credit card delinquencies of 90 days or greater surpassed 8% of balances in the first quarter, hitting an eight-year high. Story by Eric Rosenbaum for CNBC

Job Loss, Medical Bills Are Leading Causes of Credit Score Drops
According to new research from Elevate’s Center for the New Middle Class, work-related struggles were the most common reason for credit score declines. Over half (55%) of the respondents said their credit scores dropped below 700 after a job loss or reduction in work hours. Medical bills were also cited as a source of struggle. When participants were asked for personal stories about their credit score declines, 26% were medical related. Story by Lynn Oldshue for LowCards.com

Visa and Mastercard are Looking to Public Transit in Their Quest for World Domination
There are a few reasons why Visa and Mastercard are so interested in supporting this change. Customers charge 30% more with contactless cards than they do with regular ones, according to a Mastercard study. In the US, according to Visa, 11 out of the top 25 US card issuers are now introducing contactless credit or debit cards. But people who have not used them in the past, or who may have security concerns around cards that use neither a PIN nor a signature for verification, are sometimes slow to make the switch. Here’s where transit comes in. Story by Natasha Frost for Yahoo Finance

Why Cash Won’t Lose Its Cachet Any Time Soon
Even as Sweden is expected to go cashless by 2023, and cashless options are gaining traction globally, there is a growing clamor to keep cash alive. In the U.S., for instance, cities like Philadelphia, New York and San Francisco, along with the state of New Jersey, have introduced bills that prohibit retail establishments from refusing to accept cash. The European Central Bank, governing the 19 European Union countries using the euro, believes everyone must have cash as a payment option. Story in Knowledge at Wharton

Banks Piggyback on Student ID Cards for a Fee
Many college and universities are adding banking functions, like that of a debit or credit card, to student identification cards and charging students fees and interest for the use. Student IDs are typically used to enter campus buildings, access online sites and check out library books. But some schools have entered into financial agreements with banks so students can link their ID cards to private banking accounts. The convenience allows students to pay for food, school supplies and other expenses on campus. But new research suggests these card programs put some students at risk of paying high banking fees. Story in Voice of America

Attacks From Rogue Mobile Apps Jump 300%, and CNP Fraud Continues To Boom
Fraud attacks involving rogue mobile applications jumped nearly 300% in the first quarter from the preceding quarter, and fraudulent card-not-present transactions rose 17%, fraud-control services provider RSA Security says in a new report. RSA says it flagged 41,313 attacks from rogue apps compared with 10,390 in 2018’s fourth quarter. The report notes how the mobile channel is playing a key role in the growth of online fraud. Not only did CNP fraud rise by 17% from the fourth quarter to this year’s first, but 56% of the fraudulent transactions originated from mobile devices. Story by Jim Daly for Digital Transactions

Best Mobile Banking Features You’ve Never Heard of That Actually Rock
You may not know it yet, but a growing number of banks are upgrading their mobile apps to act like a personal financial assistant in your pocket or purse in all sorts of small ways – including by helping you sidestep the bank’s money maker: the overdraft fee. If these banks have their way, their mobile apps will become central to customers’ lives at a time when most of us need the day-to-day help. Story by Mary Wisniewski for Bankrate

For Next Act, Synchrony Turns to Credit for Pet Care, Body Waxes
Synchrony has long counted some of the country’s biggest retailers as its partners, including TJX, Gap and, yes, online giant Amazon. Now, the credit card issuer has set its sights on nabbing big partners outside traditional retail, such as airlines and car companies. It’s also expanding into new industries with its CareCredit arm, which offers point-of-sale financing at medical offices, veterinary clinics and day spas. Last year, Walmart opted to move its co-brand and private-label credit card programs from Synchrony to Capital One. Meanwhile, store credit card issuers are having to deal with upstart technology companies offering easy access to personal loans at checkout. Story by Jennifer Surane for Bloomberg

Credit, Debit Cards Found to be ‘Dirtiest Payment Method’
That credit or debit card in your wallet is apparently dirtier than you might have suspected. A recent study by LendEDU.com showed credit and debit cards were dirtier on average than cash or coins. The financial website released its findings, noting researchers used Hygiena’s SystemSURE Plus handheld testing device to examine cleanliness. The study found the average payment card registered a 285 germ score. Cash had an average germ score of 160, whereas coins had an average germ score of 136, the report said. Story by Elizabeth Zwirz for Fox Business

NYC Subway’s New Way to Pay Prompts Banks to Update Cards
New Yorkers won’t have to worry much longer about perfecting their subway swipe. More than 20 years after the initial switch to MetroCards from tokens, the Metropolitan Transportation Authority is unveiling the ability to use tap-to-pay credit and debit cards for subway and bus fares. And it’s not just public transportation. Visa says 80 of the top 100 U.S. retailers now accept the cards, with companies including Target and CVS. adding the technology in recent months. Story by Jennifer Surane for Bloomberg

Capital One Spark Miles for Business Adds Precheck/Global Entry Perk
Capital One is enhancing one of its popular business credit cards with a cardholder benefit that pays for federal trusted-traveler programs aimed at helping flyers get through airport security lines quicker. Starting May 21, the Capital One Spark Miles for Business will reimburse c cardholders for the cost of applying to TSA Precheck or Global Entry programs, which offer expedited lines through national security checkpoints, including U.S. airport TSA lines. Applying for those programs costs $85 and $100, respectively, and must be renewed every five years. Story by Gregory Karp for Nerd Wallet



The information contained within this article was accurate as of May 24, 2019. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.


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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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