Texas company uses shredded checks as packing material

Posted by Joe on August 26th, 2008

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While there are many proactive steps that consumers can take to help mitigate the risk of identity theft but, unfortunately, there is no way to prevent companies from making bad decisions on how they handle their customer’s personal information. Take the video below as a case in point.

A small Texas specialty foods company was caught using cancelled checks from a local bank as packing material in their shipments to customers. A mother and daughter discovered the shocking contents of a package and alerted the local news station. The most shocking part? The Texas company admits that they have been packing their wares in cancelled checks for as long as 20 years!

Needless to say, this is another perfect example why most customers would benefit from an identity theft protection service. Learn more by visiting our guide to identity theft protection services.

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Avoid data breaches - encrypt your Gmail!

Posted by Caitlin on August 21st, 2008

Google recently created an option for Gmail users to ensure that their email is securely encrypted using SSL. All you have to do to permanently encrypt your email is go to your Gmail settings page and, next to “Browser connection,” select “Always use https.” When viewing your Gmail, check the address bar. If it says “https://mail.google.com,” you know that your email is SSL encrypted. If it says “http://mail.google.com,” then your email is being transmitted in plain text, which makes it very easy for hackers to access your session information and read your email.

Since most people have some sensitive personal information stored somewhere in their email archives, the smart thing to do is make sure that your email is encrypted. If you are sending sensitive information over an unencrypted connection, you are putting yourself at risk for identity theft. To learn more about how to protect yourself from identity theft, view our reviews and comparison.

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What is an APR?

Posted by Caitlin on August 21st, 2008

Your APR, or annual percentage rate, is the yearly interest rate you will pay if you carry a balance on your credit card. You will also be charged interest if you transfer a balance from another card or take out a cash advance. One credit card may have several different APRs. There may be one percentage rate for purchases, a different rate for balance transfers and another for cash advances. The annual percentage rates for balance transfers and cash advances tend to be higher than the purchase APR.

Many credit card offers advertise an introductory APR, which is usually a low interest rate or even no interest whatsoever for the first few months. Keep in mind that this low APR will go up after the introductory period ends. If you fail to pay your credit card bill on time, you may cause your introductory rate to expire earlier than promised. There are also tiered APRs, in which higher outstanding balances are subject to higher interest rates. And there are penalty APRs, which are higher interest rates that go into effect if you are late making payments.

You may have a “variable rate” APR or a “fixed rate” APR. If you have a fixed rate APR, it will rarely change, and your credit card company must notify you before it increases. If you have a variable rate APR, it will change based on either the prime rate or the Treasury Bill rate. Anytime the Federal Reserve raises or lowers the prime rate, your credit card APR will rise or fall accordingly.

Credit card offers often advertise a range of different interest rates for a specific credit card. Generally, only customers with excellent credit will qualify for the lowest of these interest rates, while other customers may be approved for the credit card, but will be charged a higher APR.

To learn more about choosing the right credit card for you, view our credit card reviews and comparisons.

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Give me some credit!

Posted by Caitlin on August 20th, 2008

Do you spend money? Do you shop online? Do you make hotel reservations? If so, chances are you have a credit card. But with so many credit card choices available, it can be nearly impossible to know which one is best for you. There are low APR credit cards, there are balance transfer credit cards, and of course there are credit cards that offer you almost every type of reward you can imagine. Not to mention how difficult it can be to understand the different credit card terms.

Today we are launching reviews and comparisons of several different types of credit cards, including gas rewards cards, cash rewards cards, travel rewards cards, and points rewards cards. These comparisons should make it easier to compare the terms of different credit cards and figure out which is best for your unique financial situation. We have also created a FAQ that should help readers understand their credit card terms and learn how to use their credit responsibly.

In the near future we will be expanding our new credit card guide to include other types of credit cards. In the meantime, if you are interested in rewards cards, check out our new reviews and comparisons.

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Helpful hints about credit cards

Posted by Caitlin on August 20th, 2008

The Consumerist recently posted 10 Things You Might Not Know About Your Credit Card and 10 Credit Card Company Tricks to Beware. Credit card terms and policies tend to be long and complicated, but The Consumerist addresses some common questions as well as some that you might not even think to ask.

Some of these hints might surprise you. Did you know that as long as the back of your card is signed, merchants cannot require you to show your ID? Or that merchants are not supposed to accept your card if you have written “See ID” in lieu of a signature?

In order to use credit responsibly, it’s crucial to be an informed consumer. To learn more about credit cards, see our reviews and comparisons.

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Why use a balance tranfer card?

Posted by Caitlin on August 20th, 2008

A balance transfer card is any credit card that allows cardholders to transfer a balance from a different credit card. Balance transfers can be a very helpful and effective means of managing credit card debt. If you have a credit card with a high APR and you are unable to pay your balance in full, you may be able to transfer that balance to a different credit card with a lower APR. This will allow you to avoid high interest rates while you work to pay off your credit card debt. However, there are also risks associated with balance transfers. It is essential that you read and understand the terms of your balance transfer card, and to use your credit responsibly.

Many credit cards offer a 0% introductory APR for balance transfers. This type of offer is ideal if you are planning to transfer a balance from a credit card with a high interest rate. But keep in mind that the 0% interest rate does not last forever. Typically, a 0% introductory balance transfer APR lasts for the first 3 to 12 months. The length of the introductory period depends on the card, but also on your credit history. Applicants with better credit will sometimes be offered a longer introductory period. Obviously, you should look for the longest introductory period possible. Once the introductory rate expires, the transferred balance will usually be subject to the purchase APR. Also, be aware that a single late payment can cause your introductory rate to expire prematurely.

When considering a balance transfer, take into account the fact that nearly every balance transfer card charges a transfer fee, usually around 3%. Some cards place a cap on this fee, but others do not.

If you decide that a balance transfer is a good strategy for managing your credit card debt, read the fine print and always pay your credit card bill on time. Do your best to pay off the entire balance before the introductory rate expires. Moving a large balance from one balance transfer card to another is a dangerous game that is likely to backfire in the long run.

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Data Breach Alert: Countrywide financial analyst stole data

Posted by Caitlin on August 20th, 2008

Early this month, a former Countrywide senior financial analyst was arrested for stealing and selling Social Security numbers and other sensitive personal information for up to 2 million mortgage applicants over a two year period. Rene L. Rebollo Jr. was working at Full Spectrum Lending, Countywide’s subprime lending division. According to the FBI, Robollo confessed to copying restricted information for about 20,000 customers at a time from an unsecured office computer on Sunday nights. He would then sell large batches of stolen data for $400 or $500 each, making each customer profile worth about 2.5 cents. Most of the data was sold to people in the mortgage industry who could then use it to make pitches. Authorities don’t know whether any of the information had been used for outright fraud, such as identity theft.

Authorities say that this is one of the largest security breaches in years.

If you are concerned about identity theft, consider an identity theft protection service. To learn more about identity theft protection services, see our reviews and comparison.

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Data Breach Alert: Princeton Review accidently publishes personal data and test scores of thousands of Florida students

Posted by Caitlin on August 19th, 2008

When switching servers in June, the Princeton Review accidentally published names, standardized test scores, birthdays, ethnicities and other personal information for about 34,000 public school students in Sarasota, Florida. For seven weeks, this data and many other sensitive documents were available to anyone typing in a fairly simple web address, as well as through search engines.

Other exposed data included the names and birth dates for 74,000 Fairfax County, Virginia students, as well as the Princeton Review’s study guides for the SATs, LSATs and PSATs, the entire texts of some Princeton Review books, course schedules, and an internal analysis of the effectiveness of the company’s instructors.

A competitor discovered the exposed files while conducting research and provided The New York Times with the web address needed to access the files. The Times notified the Princeton Review on Monday and the compromised portion of the site was immediately shut down. The Princeton Review stated that the compromised files should have been password protected, but was unintentionally exposed when the website was moved to a new Internet provider. According to The New York Times, this error indicates that the Princeton Review neglected several accepted online security practices.

When corporations compromise your sensitive personal information, the only real protection against the risk of identity theft is an identity theft protection service. For more information about identity theft protection services, see our reviews and comparison.

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Netflix shipments are back on track

Posted by Caitlin on August 18th, 2008

After a three day shipping delay last week, Netflix is shipping DVDs at their normal pace once again. Any backlogged shipments should have been sent out on Friday. All customers whose shipments were delayed will receive a 15% discount on their next bill, and any new customers who were using the service on a free two-week trial basis will have their trial extended by a week.

For more information about Netflix or other online DVD rental services, see our reviews and comparison.

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Identity Theft 911 releases a new study on identity theft in California

Posted by Caitlin on August 14th, 2008

Identity Theft 911, an identity theft protection provider, released a new study this week detailing the impact of identity theft in California. The study includes some interesting statistics, such as:

• Nearly 1.5 million Californians were victims of identity theft in 2007
• Identity theft cost Californians an estimated $749 million in out of pocket expenses in 2007
• Californians spent an estimated six million hours resolving identity theft issues in 2007
• 16 of the top 50 cities with the highest number of consumer identity theft complaints are in California

For more information about identity theft protection services, see our reviews and comparison.

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