Low Interest Credit Cards

As of July 21, if you are denied credit and your credit score had an impact on the decision, lenders are required to provide that credit score to you, free of charge. This new rule, part of the Dodd-Frank financial reform that went into effect in late 2010, will, in theory, make it easier for consumers to gain better control of their finances because they will know where their credit stands. Knowing your credit score permits you to work to improve it so you can enjoy lower interest rates on credit cards and installment loans, lower car insurance rates, and many other benefits.

Additionally, the new rule that gives consumers free access to their credit score lets people ascertain why they were turned down for a specific loan so they can take steps to fix their financial situation.

When It Comes to Borrowing, Information Is Power

Under the law, lenders must also disclose:

• the range of possible scores under the model used to generate the score (for instance, from 300 to 850 for a FICO score)
• the date the score was created
• Name of the consumer reporting agency or entity that provided the score
• Up to five key factors that hurt the credit score, if one of the factors was the number of hard credit inquiries and four key factors if hard credit pulls do not affect the score

Currently, consumers are eligible to request a copy of their credit report from the three major credit reporting bureaus (Experian, TransUnion and Equifax) if they are denied credit.

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A cartoon from “The New Yorker” caught my eye back in 2000, when I was fairly new to writing and editing personal finance stories.

In the cartoon, dad’s sitting on the couch with his son, as mom stands in the background, fear in her eyes. A computer is in the other room. “It’s very important that you try very, very hard,” dad says to his son, “to remember where you electronically transferred Mommy and Daddy’s assets.”

Eleven years of electronic progress later, many of us are carrying around smartphones and tablet devices. With them come new and even easier ways for our children to drain our bank accounts — accidentally, through games aimed at an audience that lacks a firm grasp on the difference between real and imaginary money.

My colleague Matt Schulz got a lesson recently how a 4-year-old’s little fingers can poke a big hole in your savings.

I’ll turn it over to him:

“The day I got my iPad,” Matt says, “my son and I were playing a fishing game through the GameCenter that comes with every iPad.

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According to a poster on CB, Schwab will stop accepting new applications for its Schwab Invest First Visa card after March 31.

Schwab has long since stopped marketing the credit card as it evaluates its profitability, so this news does not come as a great surprise. While existing cardholders are not supposed to be affected by this change, when a program stops accepting new customers, it’s not usually a good sign for its long-term viability.

It would sad news indeed if this marks the beginning of the end. With a flat 2% cash back on all purchases and no foreign exchange fees, the Schwab Visa has been my primary cash back card for a while now.

As the report indicates Schwab is no longer accepting online applications, new customers can apply by phone, by calling 866-724-9223.