Natwest Gold Credit Card

Enjoy 0% interest on your balance transfers for a whole 13 months with our Gold Credit Card, you also receive 0% interest on purchases for three months. It only takes a few minutes to complete our online application, so apply now for an instant decision.
To apply you need to be a UK resident, over 21, and earn at least £20,000 a year

Get great value - typical 13.9% APR (variable)

Your money

• 0% interest on balance transfers for 13 months from account opening. Subject to a transfer fee of 2.5% (minimum £5) during the first three months from account opening

• 0% interest on purchases for 3 months from account opening

• Enjoy an interest free period on purchases - up to 56 days - if you pay your current and previous month's balance in full and on time

• Make fee-free transfers by phone to any UK bank account (minimum £250)

• Make cash withdrawals of up to £500 per day subject to a 2.5% handling fee with a minimum £2.50

• If you're an Advantage Gold member you can enjoy a 1% APR discount off our standard rate, please visit your local branch for full details

Your account

• Online access, 24 hours a day, 7 days a week through NatWest Online Banking

• Make your payments by Direct Debit, online, by phone or in branch. Pay off as much as you like as long as you make the minimum payment

• Share the benefits of your card with a spouse, partner or close friend by adding an additional cardholder for free

Your security

• Protect yourself with our identity theft helpline, internet fraud protection and fraud warning alerts at no extra cost

• Emergency Medical and Legal Referral service

Wine Offers

• Enjoy special offers, and the occasional free gift, from the NatWest Wine Club

Link to previous article: Natwest Classic Credit Card

Review of Natwest Student Credit Card

General Online Comments and reviews for Natwest Student Credit Card

1.
I applied for a Natwest credit card, as my student account is with them. I received the first statement and paid it in full. Then just before I received the second statement I received a letter saying the card had to be cut up and returned without any explanation as to why. Pretty confused as to what I had done wrong, I phoned them, only be to told they had changed their criteria and I no longer fitted it. They refused to discuss what the actual problem was. The limit on the credit card was only £350, and I was not up to that limit. I had used it a few times when I was skint, as all students usually are, to buy food and petrol. My advice is, if you are looking for a student credit card that you can use when your student loan has run out and your funds are low, Natwest are really not a good idea.

2.
I am first year student and just applied for a credit card from Natwest with a credit limit is £250. Unfortunately I was over limit on my fifth month by £22. Before I even know it, I got £43 fine. I called the Customer Service to find out what has happened and the answer is ...? £12 over limit for the fifth month £12 for late payment £ 7 for interest rate £12 over limit for the sixth month (even though I was only late for one day ) Now I asked how come the advert said 56 interest free days or 0% interest for 9 months ... what did they answer? Did you read the terms and conditions? It is a joke right? How many pages are they? plus they are small prints. If we read all the terms and conditions every time we buy something or do something then properly it will be forever. So WATCH OUT FOR NATWEST STUDENT CREDIT CARD. they are not what they say.


Advantages: Low income friendly,air miles,online banking,Convenience of High Street bank credit card for payments and cash withdrawals. Decent online facility,Excellent on-line service, good for students, air miles scheme, helpful telephone service, sensible credit limits

Disadvantages: poor payment options,Poor loyalty scheme value, extortionate charges,High APR, high admin charges, trouble using it on certain websites

Previous related Articles:
Great Discounts on Natwest Student Credit Cards
Natwest Student Credit Card

Natwest Student Credit Card

Natwest knows it's not always easy managing your money, so we have designed a Credit Card that is flexible enough to help you make the most of it.

Good because you get great value - typical

18.9% APR (variable),

plus you receive

Great discounts

(Click here to view details of Available discounts)

-Up to 56 days' interest free credit on purchases*

-Maximum £500 credit limit

-Straightforward repayments by Direct Debit

-Transfer money by phone

-Daily cash advance of up to £300**

-No annual fee

-Worldwide acceptance

-Special offers, and the occasional free gift, from the NatWest Wine Club***

-Don't forget you need a NatWest Student Current Account to apply for our Student Credit Card. Please ask in branch for more details.

Please note that balance transfers are not permitted on Student Credit Card Accounts.

Link to previous article: Barclaycard Graduate Credit Card

Barclaycard Platinum Credit Card with Balance Transfer

Enjoy some breathing space. You'll pay no interest on balance transfers for 14 months or on any purchases you make for the first three months.

Suits you if you:

• Are looking to transfer your balance to a new credit card

• Have a good credit history


• Are 21 or over

• Have a permanent UK address for 3 months or more

• Have a regular income of more than £10,000 pa

• Don't already have a Barclaycard

• Haven't missed multiple payments on a credit agreement within the last 12 months

• Don't have a CCJ,IVA or have not been registered bankrupt

• Aren't a student

0% interest

on balance transfers for 14 months from opening your account (2.5% handling fee applies)

0% interest

on purchases for 3 months from opening account

14.9% APR typical (variable)

People choose Barclaycard because all customers could enjoy:

• No annual fee

• Identity Protection Service – advice about protecting yourself from identity theft

• Safer shopping with Fraud Protection – including chip and PIN, and watching for unusual spending on your account

• Purchase Delivery Protection – protecting your online, phone or mail orders against loss or damage, from despatch to door (excludes second-hand goods and services)

• Emergency help when travelling abroad

• Great holiday deals with our Travel Service

• Convenient online account management

• Emergency cash advance and credit card replacement service

• Text alerts five days before payment is due (opt in required)

• 24 hour helpline

* Terms and conditions apply to all benefits

Important details

Barclaycard reserves the right to withdraw this offer at any time. This offer is only available to new customers. You will be required to use a PIN with this credit card in order to pay for goods and services over the counter in shops and other outlets. If you have any particular requirements concerning communications with Barclaycard or use of your credit card arising from a disability please contact us on 0845 7660 758 before completing the application.

Tips to avoid credit card fraudsters

We all know that losing your cards, or having them stolen, is a huge inconvenience. It is even more inconvenient when you’re on holiday. By following some simple advice you can help protect yourself against card theft abroad:

1. Only take cards away with you that you intend to use on holiday. Leave others in a secure place at home.

2. Be aware that your card and card details are as valuable to the fraudster as cash. When paying be wary of letting your card out of your sight and carefully dispose of any receipts or statements that include your card details.

3. Check your statement carefully for unfamiliar transactions when you return home.

4. You should consider letting your bank know in advance if you are going to be using your cards abroad. If your bank spots unusual spending patterns it may try to contact you to check that the transactions are genuine.

5. If you drive on holiday, keep handbags and wallets out of sight of opportunist thieves – especially in slow moving traffic. Always remove plastic cards and other valuables from parked cars.

6. In hot weather, wearing fewer clothes can mean personal items such as wallets are more visible. Take extra care to ensure that valuables are safe. A concealed money belt is an ideal way to carry your cards and valuables. If you’re staying in the UK this summer, here are some tips to stop the card criminals going on a shopping spree abroad with your cards.

• Guard your card and card details at all times. Safeguard your PIN. Don’t give it to anyone – even if they claim to be from the police or your bank.

• When entering your PIN at a cash machine or PIN pad in a restaurant or shop, use your hand or body to shield it from prying eyes. If the PIN pad is on a flexible cord, pick it up and hold it so that you can’t be overlooked.

• Memorise your PIN and never write it down – you can change your PIN at most UK cash machines to something you can easily remember.

Previous Article: Tips for safe Credit Card usage on holidays

Student Credit Cards - I

Introduction

So, you’ve accepted your offer and you’re off to university! Your student days promise a busy social life, the chance to develop new interests and, of course, the opportunity to study your chosen subject. You’ll be given a lot of independence – perhaps moving out of the family home for the first time – and deciding how you want to live your life. You’ll also be responsible for managing your finances.

Looking after your money is a big responsibility, and for some students it can be a constant burden. While there’s no avoiding university fees and the cost of living, by learning to manage your money you are giving yourself the best chance of graduating with both your career and your bank balance in order.

Before you rush into any decisions, it pays to be aware of the financial options available to you.

Here we outline some of the key considerations students should make when making financial decisions, particularly about choosing and using plastic cards.


Used sensibly, credit cards offer many benefits, but used

Benefits
• Free, short-term credit as long as you always pay your balance in full by the due date shown on your statement

• A safe and convenient way to pay for goods and services, particularly over the internet, by telephone or by mail order

• Protection against fraud — if you are the innocent victim of fraud you will not be expected to pay if a criminal uses your card

• Incentives for using a card such as loyalty points and cash-back, or payments to support a charity

• Convenience when travelling, as credit cards are accepted in virtually every country around the world

• Perhaps the most flexible and convenient way of borrowing money in the short term

Risks

• Can lead to unplanned levels of debt

• Can incur charges if you make late payments, miss them altogether or go over your credit limit

• Can damage your credit rating if you continually make late payments or miss them altogether

• Can cost you more and take you longer to pay off than the alternatives, particularly if you only ever make the minimum repayment

• Can make it difficult to manage your finances if you have more cards than you need

Choosing the financial products that suit you:
During the first few weeks of university it is likely that you will receive offers from local banks and building societies to set up an account, take out a loan or apply for a credit card.

Often these offers are accompanied by free gifts or incentives such as iPods, MP3 players or discounted travel cards; some more valuable than others. If you decide to open an account, it is important to choose the right one.

Studying the terms and conditions and key features, such as overdraft limits and credit interest, may be time consuming but it’s important if you want to get the best from your bank.

For those considering the option of a credit card, think about what you need it for: is it a luxury or a necessity?

A credit card is a convenient short-term way to borrow money, usually offering a period of interest free credit. But if you’re thinking about borrowing money for more than a few months then you might want to consider a personal loan.

Remember, you have to pay back what you borrow. The golden rule is, if you can’t afford to pay it back, don’t spend it!

Previous Article: History of Credit Cards (Plastic Cards)

History of credit cards (Plastic Cards)

The first plastic card wasn’t plastic at all. Cards started life on the other side of the Atlantic as ‘metal money’ in 1914 when the US Western Union started providing metal cards that gave free payment privileges to preferred customers.

The first proper plastic card was a charge card issued by American Express in 1958. It was 1963 before this made it over to Britain and was swiftly followed by the ‘Barclaycard’, the UK’s first credit card launched on 29 June 1966.

Since then, cards have gone from strength to strength with more people taking up the ‘flexible friend’ and new features, like cashback, being introduced. Concerns grew about rising fraud and card security during the 90s.

This led to the introduction of chip and PIN in 2003 – the biggest consumer change to
the way we pay since decimalisation.

The final switch over to chip and PIN happened on Valentine’s Day 2006.

Future developments

2006 saw new ‘smart card’ technology introduced into the world of card payments – opening up a whole new range of possibilities:

• Replacing cash –
cash is still king for payments under £5. However, the introduction of contactless cards could change all that – the future could see an increase in the number of card payments for small purchases such as newspapers and sandwiches as these cards are launched throughout the UK in the forthcoming year.

• Prepaid cards –
a whole range of new prepaid cards are coming onto the market which allow temporary workers to receive wages electronically or younger people to use these cards to make purchases online.

• Cards that do –
in the near future you could be carrying just one card in your wallet. It’s likely that card companies will have the technology to put your debit and credit cards or new loyalty or gift schemes onto a single card. Not only that, even you office access card, your phone card, sim card, etc. may be all integrated into one single card – who knows.

Previous Article: Understand your Credit Cards

Understand your credit card

Card design

Whilst the industry sets technical standards – like flexibility, flammability, toxicity (some people are allergic to some plastics) - the actual design is up to your card issuer. It can be as straightforward or unusual as they like

Chip

As can be seen in the figure above, the chip is actually a Golden coloured electronic chip on the left side of the card under the name Goldfish, and this is what is used in the so-called chip-n-pin. The chip or microchip, embedded into a debit or credit card, provides highly secure processing capabilities to carry out the card transaction, and that includes verifying that the correct PIN has been used. In addition to holding the same personal data as that on the magnetic stripe (i.e. cardholder name, card number and expiry date), the chip provides additional security features to safeguard against counterfeiting. The four digits of your PIN (personal identification number) are not held as a set of numbers on the chip.

Card scheme logo

As can be seen in the card design above, the logo may be wither of Mastercard, Visa, Visa Electron, Switch, Solo, Amex, Discover, etc.
This tells you which card scheme will be responsible for clearing payments and, where the symbol is displayed, which retailers will accept your card.

Hologram

The flashy silver colour hologram just under the Scheme logo.
An additional security feature to identify that the card is genuine

Expiry date

Along with the card number the card’s expiry date is essential to process a card payment.

Your name

The cardholder’s name is displayed at the bottom of the card.

Card number

Generally 16 digits but can be up to 19 – this identifies your account, with the first six digits comprising what is known as the BIN (Bank Identification Number) and this identifies your card issuer and the card scheme.

Previous Article: Different kinds of Credit Cards

Card design

Whilst the industry sets technical standards – like flexibility, flammability, toxicity (some people are allergic to some plastics) - the actual design is up to your card issuer. It can be as straightforward or unusual as they like

Chip

As can be seen in the figure above, the chip is actually a Golden coloured electronic chip on the left side of the card under the name Goldfish, and this is what is used in the so-called chip-n-pin. The chip or microchip, embedded into a debit or credit card, provides highly secure processing capabilities to carry out the card transaction, and that includes verifying that the correct PIN has been used. In addition to holding the same personal data as that on the magnetic stripe (i.e. cardholder name, card number and expiry date), the chip provides additional security features to safeguard against counterfeiting. The four digits of your PIN (personal identification number) are not held as a set of numbers on the chip.

Card scheme logo

As can be seen in the card design above, the logo may be wither of Mastercard, Visa, Visa Electron, Switch, Solo, Amex, Discover, etc.
This tells you which card scheme will be responsible for clearing payments and, where the symbol is displayed, which retailers will accept your card.

Hologram

The flashy silver colour hologram just under the Scheme logo.
An additional security feature to identify that the card is genuine

Expiry date

Along with the card number the card’s expiry date is essential to process a card payment.

Your name

The cardholder’s name is displayed at the bottom of the card.

Card number

Generally 16 digits but can be up to 19 – this identifies your account, with the first six digits comprising what is known as the BIN (Bank Identification Number) and this identifies your card issuer and the card scheme.

Previous Article: Different kinds of Credit Cards

Different cards or Plastic Cards

Plastic cards are the UK’s favourite way to pay.

Spending on plastic cards overtook cash in 2004 and has continued growing ever since. Plastic cards allow us to pay for goods and services virtually anywhere in the world, easily and conveniently, and provide a more secure alternative to cash and cheques.


Debit Cards

When you use your debit card the money you spend is taken directly from your current account. As long as you have enough money in your account you can use your debit card to buy things in person, over the phone, by mail order and over the internet. It also enables you to withdraw money direct from your account, and may have a cheque guarantee and cash machine function.

Credit Cards

A credit card allows you to pay for goods and services with credit up to a limit agreed with your card issuer. You have to pay back what you borrow - the costs, terms and conditions will vary from card to card and interest is normally charged.

Charity/Affinity Cards

Some credit cards are issued on behalf of charities and other organisations like football clubs and universities. For this type of card the card issuer usually makes a donation to the charity or organisation when the card is issued or each time that the card is used — at no additional cost to you.

Charge Cards

These are similar to credit cards. They allow you to pay for goods and services on interest-free credit but whatever you borrow must be paid in full at the end of a specifi ed period, usually every month or you may incur fees.

Cardholders may be charged an annual fee.

Store Cards

Store cards are a type of credit card.
They can be used in fewer places, often only in the individual shop or chain that issued it. Interest rates on these cards tend to be higher than on standard credit cards and credit limits tend to be lower. However, many shops provide special offers to their cardholders.

Previous Article: Checking your Credit Card Statement

What is APR? Definition of APR

APR stands for the Annual Percentage Rate of charge. You can use it to compare different credit and loan offers. The APR includes important factors such as:

• the interest rate you must pay;
• how you repay the loan; the length of the loan agreement (or term); frequency and timing of installment payments; and amount of each payment;
• certain fees associated with the loan; and
• Premiums for payment protection insurance that the lender chooses to make compulsory.

All lenders have to tell you what their APR is before you sign an agreement. It will vary from lender to lender. Generally, the lower the APR the better the deal for you, so if you are thinking about borrowing, shop around.

Example 1:

If you borrow £1,000 for one year at 20% interest, and at the end of the year you repay a lump sum of £1,200:
• you will be paying an interest rate of 20%; and
• the APR will also be 20%.

Example 2:

If you borrow £1,000 for one year at 20% interest, and pay throughout the year in equal monthly installments (12 x £100 = £1,200),
• you will still be paying an interest rate of 20%; but
• The APR, however, will be roughly 40%.

Example 2 is more expensive because you are paying back the £1,000 gradually throughout the year. In Example 1 you have the benefit of being able to access the £1,200 for the whole year, which you could invest and earn interest on. By paying in instalments you're losing out; this increases the cost of the loan - hence the higher APR.

Questions to ask the lender

If you find a deal with a low APR, ask the lender the following questions:
• Does the interest included in the APR vary, or is the rate fixed?
If the rate is variable, your repayments could go up or go down. If the rate is fixed, your repayments will stay the same.
• Are there any charges that are not included in the APR?
This could include charges for services such as optional payment protection insurance.

If so, make sure you understand:
o what the charges are;
o whether you really need the services offered;
o how much you would have to pay; and
o when you would have to pay.

• What are the conditions of the loan or credit and do they suit you?
For example, do you have a choice about how and where you make the repayments? If you suddenly have spare money, can you pay the loan off early - without penalties?

• Can you afford the monthly payments?
A more expensive loan (with a higher APR) could have lower monthly payments if they are spread out over a longer period of time. That might suit you better if your budget is tight, even though you would pay more in the long run.

Previous Article: Protecting your Credit Card from fraud

Using a credit card

Continuing further from our past article on Credit Card Jargon Buster, let’s today talk about some good tips on how to use your card wisely.

Whether you’ve just received a new credit card or have been using one for years it makes sense to check that you are using your card sensibly. This article has a few top tips to keep your finances healthy and give you peace of mind.

Please understand it clearly that Credit is not free money. If you want to borrow on your credit card check that it is the most effective way to pay for what you have in mind. A credit card can give your finances flexibility but is not the most sensible choice for long-term borrowing.

It’s common sense that if you can't afford to repay it then don't spend it.
When choosing your credit card you should have carefully considered what you want it for and so should be aware of its features and terms and conditions, and how you intend to manage your repayments.


Top 10 tips to get the most from your card

1. Spend only as much as you can afford

If you don’t intend to pay off your statement amount in full every month, and before you use your credit card anymore, ask yourself if you can afford the repayments. Do NOT use your credit card to buy goods you can't afford or don't need, or to fund a lifestyle that is beyond your means.

2. Set up a Direct Debit to pay at least the minimum payment each month

That way you can ensure you never incur any late payment fees. Talk to your card company to find out how to do this.

3. Don’t make the minimum repayment on a long-term basis

Unless you’re taking advantage of a special deal or zero per cent offer only ever making the minimum repayment will take you longer and cost you more to clear your debt. It’s NOT a recommended payment schedule.

4. Ensure payments reach your account on time

Payments can take more than three working days or more to reach your account. There will normally be information on your statement that tells you how long you should allow.

5. Check your monthly statement

Managing your money means knowing what you owe. How much interest are you paying? What repayments must you make? The answers are all on your monthly statement.

6. Keep your PIN safe

Don’t write down your PIN or lend your card and PIN to others. If you do you could be held liable for any fraud on your card.

7. Think about how many cards you really need

If you believe you have more cards or more credit than you can resist or reasonably manage, talk to your credit card company and ask them to reduce your limit. Alternatively, if you no longer want or need a card, cancel it with your credit card company and close the account.

8. Read all correspondence from your credit card company

Your card company will send you important information about changes in your terms and conditions, including increases in your credit limit, special offers including balance transfers, and, potentially, credit card cheques. Reading these updates will help you manage your credit card account responsibly.

9. Keep some savings for unforeseen circumstances

A sudden emergency or loss of employment may mean that you cannot afford to make your repayments. Having savings can help you through such times.

10. NEVER IGNORE DEBT PROBLEMS!
If you are unable to meet your monthly repayments and you are finding it difficult to pay off the outstanding balance on your credit card you should contact your credit card company immediately. The earlier you speak to your card company the easier it will be for them to help you with your situation and assist you to make a repayment plan.


Previous Article: Credit Card Jargon Buster

Credit Card Jargon buster

Continuing further from the previous article, Selecting a Credit Card, here are some key terms you will find in the Summary Box that appears in all cards’ marketing material or on your statement, with a simplified explanation of what they mean.

These terms are the most common terms that are frequently used for credit cards, and it is extremely important that you understand them.


APR (Annual Percentage Rate)
This is an overall measure of the total cost of borrowing on a credit card and won’t just include the interest rate but any compulsory fees as well. You can compare this between credit cards.


Monthly interest rates
This is the cost each month for borrowing on the card and may vary for different kinds of transaction such as purchases, cash advances, balance transfers and so forth.


Interest free period
Many credit cards have an initial interest free period – which means there is no charge for borrowing over a set time. Usually this only applies to purchases
and balance transfers.This part of the Summary Box will tell you exactly what
terms and conditions apply.


Allocation of payments
When you make a payment to your credit card account to clear your outstanding debts your card issuer may pay off different kinds of borrowing in a particular order (e.g. purchases before cash advances).


Minimum repayment
Every month that you have an outstanding balance you have to make a payment on your account – this tells you the minimum you must repay.


Fees
Any monthly or annual fees on your card are listed here. If your card does not have a fee, this box will say "none" or "not applicable". Any conditions will also be shown here.


Charges
This section lists charges you might incur in using your card such as cash advances or for using your card abroad.


Default charges
If you breach the terms of your agreement, such as by failing to pay the minimum repayment or going over your credit limit – your card company may charge you.


Link to Previous Article: Selecting a Credit Card,

Do you really need a Credit Card?

So its time now that you have started thinking about taking a credit card? The very first thing to ask yourself is whether it’s really the right sort of borrowing tool that you need or can you be better off without it.

So first things first: A credit card is a convenient short-term way to borrow money, often offering a period of interest free credit. But if you’re considering about borrowing money for more than a few months then you might want to consider a personal loan.

Remember that you have to pay back what you borrow. It is equally true with the credit cards as well. You cannot just use your credit card as per your wish and forget it. You have the obligation to repay that money back to the credit card company. If you repay that money within the specified time limit (usually the next due date), then you don’t have to pay any interest on that. However, if you delay the payment, then you will have to repay a lot more than what you borrowed. It will involve a very heavy interest, and also late fee and penalty. All these charges may be subject to taxes like service tax and others.

Think about what you need credit for: is it a luxury or a necessity? Credit is not free money: the golden rule is that if you can’t afford to make repayments on your debt then you should not be borrowing at all.

Used sensibly, credit cards offer many benefits, but used irresponsibly could pose a lot of risks:

Advantages and risks of using a credit card:

Advantages:
- Free, short-term credit as long as you always pay your balance in full by the due date shown on your credit card statement.
- A safe and convenient way to pay for goods and services, particularly over the Internet, by phone or by mail order, from businesses both in the UK and abroad.
- Protection against fraud — if you are the innocent victim of fraud you will not be expected to pay if a criminal uses your card.
- Incentives for using a card such as loyalty points and cash back, or payments to support a charity.
- A truly global currency, as credit cards are accepted in virtually every country around the world.
- Perhaps the most flexible and convenient way of borrowing money in the short term.

Risks:
- May lead to unplanned levels of debt.
- Incur heavy charges if you make late payments, miss them altogether or go over your credit limit.
- Damage your credit rating if you continually make late payments or miss them altogether.
- Cost you more and take you longer to pay off than the alternatives, particularly if you only ever make the minimum repayment.
- If you have more cards than you need it could make it difficult to manage your finances.

Credit record or credit history checks

Let's continue further on Credit History from our previous article Credit Record for taking a credit card.

As informed by APACS on their website, there are some FAQs or Frequenty Asked Questions that a person may have regarding his credit history with respect to the financial markets. His credit records tells about what he has been doing in the past, how reliable he is with respect to payment of his loans and how well is he suited for taking another credit card or mortgage or loan.

Here is a list of compiled common questions that anyone may have on Credit records while applying for credit cards.

Q Why do lenders undertake credit checks?
A When you apply for credit, for instance on a credit card, the card company will want to make sure you are capable of repaying any money you borrow and will only lend to you if they feel it is responsible to do so.

Q What is my credit score/rating?
A Your credit score or rating will be calculated by your lender to assess your credit worthiness. The higher your score the better. Different lenders and credit reference agencies may use different criteria so your credit rating may vary. This is why you may be rejected for credit by one lender and accepted by another.

Q What is a credit blacklist?
A There is no such thing as a blacklist. Your credit record only contains factual information. If you have been refused credit you should contact the lender concerned to find out why. Different lenders may make decisions based on different criteria and assessments of your credit record.

Q Can anyone search my credit report?
A No. Searches can only be made with your permission. This is given by completing a consent clause on your application form or verbally if you are applying for credit over the phone.

Q Who has access to information on my credit report?
A Only organisations who provide information to the credit reference agencies are entitled to look at the information held about you. They can only do this if you have given your permission.

Q How can I find out why my application for credit was turned down?
A Contact your lender. They will tell you whether this is because of your credit record or for some other reason.

Q How safe is my information?
A The credit reference agencies comply with the Data Protection Act 1998. They are also monitored by the Information Commissioner’s Office.

Q What information is stored about me and where it is stored?
A Most people have some type of credit agreement on a credit card, loan, mortgage or mobile phone account. Every lender stores information on credit agreements with one or more of the UK’s three credit reference agencies.
Every time you apply for new credit this information is used by the new lender to check your credit history or rating; to see how much you already owe and how well you’ve managed any previous credit. A lender can look at how many other applications for credit you have made recently and review publicly available
information held by the credit reference agencies. This includes whether you are registered on the electoral roll, if you have any court judgements against you or have been registered bankrupt.

Specifically a prospective credit card issuer will be able to see what outstanding loans, mortgages and credit card products you have. They will be able to see what cards you have, what the credit limit is on those cards and what the current outstanding balance is, as well as whether regular repayments are being made on that card.
If you apply for a card with someone you already have a financial relationship with (e.g. mortgage, current account), they will have access to additional information about your financial behaviour.

Problems with Chip and Pin

Problems with Chip and Pin

Though Chip and Pin comes with benefits, but it still is not foolproof and also creates some problems for individual handling. The biggest problem with chip and pin is that you will have to key in your PIN no. at every transaction, be it buying a beer in the pub, shopping at Tesco, Sainsbury or Asda, or withdrawing money from any ATM or cash machine. Since you have to key in your pin every time, it means that you are prone to your pin being revealed to people standing nearby.

For e.g., shopping at stores like Tesco and Asda are very much susceptible to revealing of PIN. There is a long queue of customers behind you. While you key in your pin, it is possible that someone might see your finger movement.

Another problem is that stores usually have cameras installed at the payment counters. They can easily capture your finger movements while you key in your PIN. However, in countries like Netherlands, superstores like Albert Hein have a shielded cover to hide the PIN pad, hence it secures the PIN no. while entry. The same can be followed in UK as well.

The customer is responsible now:
One of the major setbacks of implementation of chip and pin is that the liability is now given to the customer. Imagine someone robs you of your card on a lonely street and beat you to ask your pin no. By the time you file complain, the robber may use your card to withdraw money, make an expense or shop around with your card. The banks issuing the card just finish off with their liability the time they give you your PIN No. It becomes the customers responsibility for all the transactions that have taken place, as he is the only one suppose to know about the PIN.
It also makes it hard for the customer to prove his innocence in case of fraud, as he is the only one suppose to be responsible for the PIN and the card.

Here are some stories of credit card frauds

Here are some stories of credit card frauds:
· Resellers liable for fraudulent transactions (BBC News)
· The story of how French smartcards were cracked back in 1999 (multiple sources)
· Hackers succeed in cracking Siemens digital card signature (The Register)
· Card Confusion (IT Week)
· The Dangers of Identity Fraud (Credit Card Magazine)
· Market Comment (Yahoo Business)

Especially for elderly people, it may sometime become inconvenient and embarrassing if they forget their PIN no. while paying for shopping at a retailer or at a restaurant. They are required to remember the PIN, while initially they were only required to sign on the paper receipt.

What is Chip and Pin on Credit cards

What is Chip and PIN?
According to a note from Abbey National Bank:
"Chip and PIN is a new, more secure card payment method that's gradually being introduced by banks and shops across the UK. When you use your card to buy something in a shop you key in your Personal Identification Number (PIN) instead of signing a receipt. This is the same PIN you use at a cash machine to take out cash.
Shops in your area may be using it already and it will be common at all major retailers by 2005."
"Chip and PIN is designed to reduce card fraud and the hassle it causes. Built-in microchip technology protects the data on your card from being copied or altered."

Banks and retailers are replacing traditional magnetic stripe equipment with that based around smartcards, which contain an embedded microchip and are authenticated automatically using a PIN. When a customer wishes to pay for goods using this system, the card is placed into a "PIN pad" terminal (often by the customer themselves) or a modified swipe-card reader, which accesses the chip on the card. Once the card has been verified as authentic, the customer enters a 4-digit PIN, which is checked against the PIN stored on the card; if the two match, the transaction will be automatically completed.

France has cut card fraud by more than 80% using a similar, but incompatible system. Chip and PIN is the name given to the initiative in the UK but countries worldwide are launching their own initiatives based on the EMV standard, which is a group effort between Europay, MasterCard and VISA. By the end of 2004, 100 countries will be using compatible systems based on this standard, and France aims to migrate its existing systems to be compatible with the new cards.

Note that "cardholder not present" transactions such as Internet, telephone or mail order purchases are not affected by the introduction of the Chip and PIN system. Since these are also major areas of fraud, other initiatives such as Verified by Visa and MasterCard SecureCode—both of which are implementations of Visa's 3-D Secure protocol—are being developed to improve security in these situations, such as additional security codes printed on the back of the card and more complex authentication services.

Benefits of Chip and Pin
Under the old system, a customer would have to hand over their card to the retail assistant or to the restaurant waiter for each payment. In certain environments such as restaurants, for example, this often meant that the card would be taken away from the customer to the card machine. This kind of card being taken out of sight gave rise to situations when the card was either duplicated or the card details being stolen. This is no longer the case with the introduction of Chip and PIN as wireless PIN pads have been introduced that can be brought to the customer's table.
Hence, Chip and Pin offer much more secure and easy mode of payment. However, it is also related with some problems. Let’s discuss the problems with chip and pin in the next article.

-Credit card frauds - Statistics

It has become increasingly important that you shield your credit card or debit card from the fraudsters and use it wisely and carefully. Remember that fraudsters are just looking for opportunities where they can trace out the details of your credit card or debit card, and misuse it. All you end up doing is getting into an unwanted situation of financial obligation that you have not met and getting into legal proceedings. As it is said, “Prevention is better than cure”, so lets be cautious while using our credit card or debit card either online, or in-country retailers and especially while using the cards abroad.

The successful introduction of chip and PIN in the UK has meant that fraudsters are increasingly being driven overseas to commit card fraud on UK cards in countries where chip and PIN has not yet been rolled out. For e.g. US is yet to introduce chip and pin service and is still preparing to fight up against credit card frauds.

Here are some facts and statistics about the Credit card frauds that have been committed on UK based credit and debit cards in last few years. We believe this will give you enough insight into how important it is for anyone to prevent credit card or debit card misuse and protect his cards.
The statistics presented are gathered from various official sources like FSA records and those available online.


In 2006, fraud committed abroad using UK-issued credit and debit cards totalled £118.2 million. Although up 43 per cent from 2005 (£82.8 million) the British public are spending more abroad with their cards than ever before and the losses are still smaller than they were in 2001 and 2002 (£138.4m and £130.2m respectively).

However, you don’t necessarily have to leave the country to be a victim of fraud abroad. You may as well end up revealing your credit card or debit card details to a fraudster while staying in your own country and the fraudster may end up using your card for an online purchase from a foreign country. Some intelligent fraudsters even use card copiers, which replicate your credit card or debit card and create an exact duplicate card resembling your card. They then use the replicated card for purchases and the bills to be paid become your liability.

A proportion of this fraud occurs when your card or card details are stolen in the UK and then used fraudulently overseas. In 2006 the countries where most fraud occurred on UK-issued cards were the US (£16.7 million), France (£7.5 million), Spain (£6.7 million), Italy (£6.4 million) and Thailand (£4.1 million). So you see, the card details can be taken to any country and can be used from anywhere. Losses in the US, which as yet has no plans to rollout chip and PIN, were up 49% year-on-year. However, losses in France and Spain, countries that are rolling out the secure technology, have decreased by 35% and 30% respectively.

Hence, Chip and PIN service seems to be quite effective in fighting card frauds. Countries like Netherlands, have forced chip n pin service compulsorily, so is being implemented in UK as well.

This article was to give you a rough idea of how much prone your credit card is to frauds and hence you should ensure that you keep it at a safe place and don’t reveal the details while shopping or making online purchases.

- Dynamic Currency Conversion for Credit Card usage abroad

Some shops and establishments abroad have started using a service called ‘Dynamic Currency Conversion’. If you opt to use this service when paying your bills with your UK based credit or debit card, you have the option of paying in the local currency or having the entire transaction amount converted into your home currency GBP immediately. This is called ‘Dynamic Currency Conversion’.

Benefits of ‘Dynamic Currency Conversion’:
The major benefit of ‘Dynamic Currency Conversion’ is that you will immediately know how much money you will have to pay in GBP for the bill that you have in foreign amount. Hence, you will be aware of the actual amount of expenses. Sometimes, this is very useful as you will know exactly where you stand with respect to your credit card expenditure limit and whether the transaction will exceed your credit card limit.

Paying in your home currency can be useful for knowing exactly how much you will be charged when paying for goods or services abroad. However, there are some disadvantages of the ‘Dynamic Currency Conversion’.

The biggest one is that nothing comes free in this world. Since ‘Dynamic Currency Conversion’ is a service, the catch is that you end up paying a very high exchange rate, that may be as high as 3-4% than the normal market exchange rate or the interbank forex exchange rates. Currency market is highly dynamic; the rates keep changing every second. Hence, the ‘Dynamic Currency Conversion’ scheme ensures that the exchange rates offered by it are not making it suffer a loss. So who bears the charges, it’s you - the cardholder.
Another point is that the retailer offering ‘Dynamic Currency Conversion’ may charge you a commission for this conversion service. You should always be careful to check that the exchange rate used in the conversion is competitive, check for any commission charged, and double check the total against what you were expecting to spend. This is because the exchange rate being used by the retailer may not be as competitive as the rate offered by your card company.

The best way to tackle this ambiguous situation is to have a rough idea of the exchange rates while you are holidaying abroad. If you believe that the retailer is charging heavily in the name of ‘Dynamic Currency Conversion’, as compared to the exchange rate that you have in your mind, then better to pay in foreign currency and let the credit card company exchange rates be applicable.
If you are in any doubt, ask for the bill in the local currency. If the retailer is operating Dynamic Currency Conversion, you should always be able to choose the currency of the country you are in.

-Avoid credit card frauds abroad

In the previous article, we have mentioned about the charges that you may have to pay while using your credit card abroad. In this article, we will highlight some steps that you should keep in mind while using your credit card abroad.

In our country we are accustomed to free card payments and cash withdrawals, while the same is not true for overseas, as it comes with extra charges.

If using cash is unavoidable, make sure you take time to get to know the currency, and never get rushed into making a purchase without thoroughly checking what you are handing over. Be particularly careful when exchanging money, and always check that you are getting a good exchange rate by shopping around. In most cases it is easier – and safer – to withdraw money from a cash machine with your UK debit card as you need it rather than carrying around cash or traveller’s cheques.

Here are some tips that you should keep in mind while using your credit card or debit card overseas:

We all know that losing your cards while you are overseas, or the credit card or debit card getting stolen, is a huge inconvenience. It is even more inconvenient when you’re on holiday. By following some simple advice you can help protect yourself against card theft when travelling abroad:

• Only take cards with you that you intend to use on holiday; leave others in a secure place at home.
• Consider letting your bank know in advance that you are going to be using your cards abroad. If your bank spots unusual spending patterns it may try to contact you to check that the transactions are genuine and it could even block your transactions. For e.g., Barclays Credit card has a special feature called “country flag”. If you are going to use your card abroad, ask them to place a country flag on your card for that country. It will authorize the use of your UK Credit card in that country.
• Make sure you have the 24-hour contact phone numbers for the cards you do take with you – in case you need to speak to your card company.
• Treat cards, cheques and traveller’s cheques as valuables, in the same way you would treat cash, and make sure that your travel insurance covers everything you take abroad, including your card.
• To avoid pickpockets it is often advisable to wear a concealed money belt to hold your cash, cards, traveller’s cheques and passport.
• Take extra care with cash machines as you may be unfamiliar with the layout or how much cash you are withdrawing.
• Always shield your PIN with your free hand when typing your PIN into a keypad in a shop, business or at a cash machine.
• Often on holiday there is a tendency to take out more cash than you would at home, so be careful to only carry with you as much as you need, and store the rest in your hotel safe (where possible).
• Guard your card and card details at all times. Safeguard your PIN. Don’t give it to anyone – even if they claim to be from the police or your bank.
• When you get home, as soon as possible check your (online) statement carefully for unfamiliar transactions.

The successful introduction of chip and PIN in the UK has meant that fraudsters are increasingly being driven overseas to commit card fraud on UK cards in countries where chip and PIN has not yet been rolled out. So make sure that you don’t reveal your PIN no. to anyone.