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I Have Been Travelling

By: Mr Credit Card
08/22/2010

I have actually been traveling the last few weeks in Asia and perhaps I’ll share a few stories later on. And I must say our family had a great time. Never skip or delay a vacation. It is always refreshing and I have found I always return with batteries recharged.

While we are still seeing housing prices under pressure (in fact, you could argue that we are seeing a deflation in house prices), house prices are going through the roof in Asia (China, Hong Kong, Singapore, India – in fact in most Asian countries). It seems like with the Fed keeping interest rates at close to zero (and hence exporting inflation), Asian countries who have no debt are simply booming and experiencing inflation. Restaurants are definitely more expensive than it was a few years ago.

One thing I can say about taking a long vacation is that you should definitely “over budget“. Telling yourself to skimp when you want to savor some delicious food takes away some joy! When you are on vacation you actually eat out, so making your own meals is not really a viable option.

It is also amazing when you travel how you notice other cultures do things so differently. For example, in my last stint in Japan, you realize how much of a cash based society they are. Folks who take out wads of cash to pay for stuff. We are such a credit card based society along with using checks. It just goes to show there are more than more way to skin the cat.

One of the things we have learned about booking a “long international trip” is to book way in advance. And aside from that, you better make sure you have penciled in your vacation with your boss. We also make it a point to use an international airline, rather than a US based airlines. The reason is because of several things. Firstly, the seats are better. Most US based airlines will have 5 seats in the middle row (versus 4) and it can be really cramped. I also found that the service on non domestic airlines is so much better. Non domestic airlines will usually have an entertainment TV on every economy seat. This time we took EVA Air (Tawainese airline) and I must say the service and flight experience was pretty good.

I’ll write a bit about this trip in coming posts. But in the meantime, have a great weekend.

P.S. – Oh and before I leave, here’s a nice credit card post by my good friend Len on how to get your interest charges waived. This happened to me before and I can vouch that it works.

Visa Travel Benefits

By: Jason Steele
08/19/2010

A reader asks:

I hold two Bank Of America VISA cards, one Credit and the other debit.  If airline tickets (national & international flights) were purchased with either card, do the following benefits apply:

1.  Ticket Refund owing to unable to travel because of illness, death in the family, bad weather conditions, etc.

2.  Medical Insurance benefits owing to illness or bodily injuries.

Thanks!

Bertram

Well Bertram, using your Visa card for travel is a smart move for many reasons, but unfortunately, they do not provide the benefits you asked about.   Let’s take a look at what they do and do not provide, and how you can protect yourself in the circumstances you inquired about.

Ticket Refunds

As for a ticket refund, you are protected by Visa and other card issuers in the event that your airline fails to provide the service you paid for.   When an airline ceases operations due bankruptcy, people who paid with a credit card receive an immediate refund, while all others are forced to apply to a bankruptcy court as creditors.   In practice, non credit card users have only the slightest chance of eventually receiving pennies on the dollar from a court.   If an airline does not transport you for some other reason, such as a strike or a cancellation, and then fails to promptly refund your money, you can request a refund through your credit card called a chargeback.  Often the mere threat of a chargeback is enough to ensure that the airline provides a quick refund.

Unfortunately, no Visa that I am aware of will provide a refund if you can’t travel due to illness or a death in the family.  That said, most airlines will grant you some leeway if you are able to provide documentation of a serious illness that precludes travel or a death certificate of an immediate family member.   I would never expect a refund,  but they should allow you to reschedule your travel.   If you have insurance needs beyond that, you should purchase dedicated travel insurance.

Medical Insurance:

A Visa card will not provide you with any medical care benefits, with a few minor exceptions.   They do offer emergency travel assistance, including a medical referral service, which:

“…provides medical referral, monitoring, and follow-up. The Benefit Administrator can give you names of English-speaking doctors, dentists, and hospitals; assign a doctor to consult by phone with local medical personnel, if necessary, to monitor your condition, keep in contact with your family, and provide continuing liaison; and help you arrange medical payments from your Visa Signature or personal account. NOTE: All costs are your responsibility.”

They also offer Prescription Assistance and Valuable Document Delivery Arrangements  which:

“…can help you get prescriptions filled or replaced, subject to local laws, and can even arrange pickup and delivery of prescriptions filled for you at local or nearby pharmacies. It can also help transport critical documents which you may have left at home or elsewhere. NOTE: All costs are your responsibility.”

To be clear, none of these services are substitutes for actual travel insurance and medical insurance.    Travel insurance should cover costs incurred when you experience a travel delay or interruption, while medical insurance is designed to cover the cost of treatment.

For a complete list of benefits provided by your Visa card, please refer to this chart on their website.

International SOS Review

By: Mr Credit Card
08/18/2010

International SOS provides emergency services globally with facilities in over 70 countries, which includes 26 alarm centers and 31 international SOS clinics.

Here are some of the services that are provided to members of International SOS:

Industries

International SOS also provides services to corporations, governments and public sector and non government organizations.

Membership

Members of International SOS can choose from membership plans that include Comprehensive Membership, Medical Membership, Security Membership, Project Membership or Individual Membership. The chart below outlines the details of the Individual Membership plan, which consists of medical and travel assistance and covers students or members that may be traveling for leisure or business.

US Airways Dividend Tries to Get My Kid To Save on Insurance!

By: Mr Credit Card
08/17/2010

I just got a mail (or rather my 11 year old son) from 21st Century Insurance (so the blog title was a little misleading – but this is clearly a third party arrangement with US Airways). It appears that because he is a US Airways Dividend Miles member, they feel that he could save money on his auto and home insurance. This is really hilarious. I mean, can’t they tell from the database that he is only 11 years old? They even said he was “pre-approved”! How could my son even have a credit history! Is his ID stolen? And I did not even get a similar mail (you would have thought they would send one to me instead!). Furthermore, the letter had all the up to date direct marketing techniques, with bold and yellow highlighted sections (which I cannot show!). Anyway, just for laughs, here is a cut and paste of the mail.

Dear Son of Mr Credit Card

This is an opportunity to SAVE on auto insurance with rates that are significantly lower than those offered by Allstate, State Farm, GEICO, Progressive and other insurance companies.

21st Century Auto Insurance offers US Airways Dividend Miles members immediate savings of $458.70* a year on average. Members can save hundreds more. Plus, you’ll earn 250 Dividend Miles (quite measly IMO) when you call and get a quote and 1,000 more Dividend Miles when you switch. And you’ll enjoy our valuable 24-hour Roadside Assistance at no additional charge.

Please call 800-794-0285, ext 1427 by September 15.

In a few short minutes, you’ll receive a FREE rate quote through 21st Century Auto Insurance that will tell you exactly how much you can save with this plan. You have been pre-approved so this free quote service is available to you and your family at no cost, risk or obligation. You can access it by calling the number above.

Your chances of saving money with this plan are excellent, Son of Mr Credit Card. Please contact us today. You don’t have to wait until your current insurance expires to save.

Sincerely

R. McLarnon, Vice President
21st Century Insurance and Financial Services Inc.

Some Observations On Foreign Credit Card Use

By: Jason Steele
08/16/2010

I have written a bunch about using credit cards overseas and in foreign countries.   It does seem that most American banks and credit card issuers really want to sock it to you when it comes to credit card fees for foreign transactions.   I just returned from a week long trip to the city of Salvador in Brazil.  I had a chance to try out all of my advice that I regularly give my readers, as well as to make some observations as to how credit cards work down there.

Follow My Advice

I recently wrote my Overseas Check List For For Credit Card Users.  I was able to perform each checklist item and it all worked out.   Amex claims that it is no longer necessary to contact them, but my bank and my other credit card companies were glad I called.   I only used my Capitol One Visa and my ATM card, although I kept other cards as backups.   As you may well know, Capitol One distinguishes itself by not charging a foreign transaction fee.

Some Interesting Observations:

Don’t Trust The Signs.   Every restaurant, bar, and souvenir shop displays various logos from credit card networks such as Visa.   In the United States, these signs tell you pretty unequivocally that the card is accepted.   In Brazil, these signs are meaningless.  Many times we found restaurants that displayed Visa signs no longer accepted the card.   Other places gladly ran my card, despite no indication of it.   Eventually, we just learned to show the card when we walked in, and that way we knew if it was accepted.

Credit and debit are not accepted equally. When you are in a foreign country, many merchants will take your card and assume it is either credit or debit, attempting to process your bill incorrectly.   If there is a language barrier, the results can be frustrating.  What we learned to do is to always tell them that the card is “credit” a word that seems to be the same in Portuguese as it is in English.

It’s All Portable. Credit card processing is almost entirely accomplished with portable processors.    We learned that people in other countries are very afraid of credit card fraud and theft, as if they do not have the same protections we Americans enjoy.   Therefore, every merchant has a wireless credit card processor that they bring out to you and swipe your card in front of you.   The processor even prints out a receipt for you to sign, and one to keep.   If you were to perform a debit card transaction, you would be given the opportunity to enter your PIN right there at your table in a restaurant.

Tips Not Required. One thing we found out from locals is that tips are uncommon in Brazil.   As per local custom, we tipped when we received exceptional service, but not in most situations where we would have tipped at home.   Interestingly, credit card receipts at restaurants did not have a place for a tip, belying the trend of spaces for tips appearing at even fast food joints here in the States.

ATMs Rock Credit cards are still not accepted everywhere in Brazil, and it is wise to carry some amount of cash with you to make purchases where they are not accepted.    Every ATM we went to had an English option.   Most did not charge us a transaction fee, and they all have great rates.   ATMs seemed to be located in safe, well lit places, so we never felt like we were in any danger.    When it came time to depart, we changed our remaining cash at the airport for a poor rate, although the sign said “No Commission!”.   Yeah, whatever.

Access America Review

By: Mr Credit Card

Access America provides travel insurance and assistance, which includes medical evacuation, in a number of ways with a number of different memberships to choose from.

Access America is the travel insurance brand of Mondial Assistance, which is a global provider of travel insurance and assistance with offices in 28 countries.

Services not only include travel insurance, but also corporate assistance and concierge services. There are thousands of partnerships which include travel agencies, airlines, resorts and credit card companies.

Access America also works with businesses such as AAA, American Airlines, Delta Airlines, Disney Cruise Line, and Best Western. 150 million Visa credit card holders have insurance benefits and assistance services through Access America.

Types of Travel Insurance Plans

Single Trip Plans include Rental Car Damage Protector, Drive Protection and Quick Trip Protector, while Multi-Trip Plans include benefits such as Medical Evacuation, Annual Travel Protection and Annual Business Traveler Protection.

The Access America Basic plan consists of insurance and assistance for “budget-minded travelers”. Access America Classic is for travelers  taking cruises, tours and family vacations and Access America Deluxe provides benefits suitable for those that need primary coverage for emergency medical and dental coverage for business related issues. The chart below compares the benefits for each plan.

Verdict

There are virtually services and plans with Access America that will suit any individual, family or business that is traveling or planning on traveling. You are even given the option of choosing the kind of plan you need based upon the trip and services that you may need.  Access America also provides a 10 day guarantee. If you are not satisfied within 10 days and have not filed a claim or departed on your trip your insurance premium will be refunded.

Royal Flying Doctor Review

By: Mr Credit Card
08/13/2010

Continuing with medical evacuation services is the Royal Flying Doctor Service. RFDS is a not-for-profit organization that offers 24 hour emergency services to those living, working or traveling anywhere in Australia.

About The Royal Flying Doctor Service of Australia

RFDS is one of the largest aeromedical organizations in the world that employs the latest in aviation, medical and communications technology and delivers primary health care and 24-hour emergency service to those who live, work and travel throughout Australia.

The Royal Flying Doctor Service is supported by the Commonwealth, State and Territory Governments and relies heavily on fundraising and donations from the community for purchases such as the fleet of 53 aircraft. The aircrafts operate from 21 bases located across the nation and provides medical assistance to over 270,000 people every year.

Services

The Flying Doctor operates from 21 bases, five health facilities and 10 other facilities as well as the national office, across Australia.

Clinic services include medical general practice, child and maternal health, women’s health, health promotion, health screening and population health services such as immunization, mental health and other allied health services.

Emergency and transport services include the following:

Primary Response
When a person becomes seriously ill or injured and requires evacuation by air from a location without medical facilities to the nearest hospital infrastructure it is considered primary response. The RFDS provides this service 24 hours a day to over 80% of the Australian continent.

Inter-hospital Transfers
Inter-hospital transfer involves the aeromedical transport of patients between hospital facilities. This usually occurs when patients with serious illness or injury need to be transported to a large regional or tertiary centre for definitive care.

Aircraft for Emergency and Transport Work
Beechcraft King Air and Pilatus PC 12 aircraft are used for emergency and transport work. All aircraft are medically configured to resemble mini intensive care units, and are fully outfitted with state-of-the-art medical equipment.

Verdict

If you are in Australia for any reason, the contact information for Royal Flying Doctor Service is good to have on hand. They basically cover any area of Australia including remote areas and can provide immediate service for those in emergency situations, sometimes right on the medically equipped aircraft. Also if you are in Australia you may want to check out volunteering opportunities or donating.

MedEscort Review

By: Mr Credit Card
08/12/2010

MedEscort International, Inc. is another medical evacuation service that provides aeromedical transportation by commercial airline and private air ambulance .

Benefits of MedEscort

The staff includes registered nurses, respiratory therapists, paramedics, and physicians.

Verdict

MedEscort International, Inc. is worth looking into as a medical evacuation option especially if you are interested in a service that is personalized a little more than typical evacuation services.

Zero Credit Limit?

By: Christina
08/11/2010

A reader asks:

Both Chase and Bank of America have upgraded me to Visa Signature Credit Cards.  The information that came with both cards and the customer service people tell me that I have credit limits of over $10,000.00 on both cards.

My Credit Reports from Experian, Equifax, and Trans Union, all listed these cards as having a Zero credit limit.  I filed disputes again with both Chase and Bank of America to no avail.  They say that the credit limit on my Credit Report should say Zero.  However, they still contend that I have a credit limit of over $10,000.00 on both cards.

So, this brings up several questions.

How are these credit cards affecting my credit score?

Apparently, they are listed as a credit limit of Zero.  So, they do nothing to raise my available credit amount?

So, I guess that canceling these cards, as long as I owe nothing on them, will not affect my credit score?

Thank you for your time.

I am of the opinion that if you always pay your bills on time, you have nothing to worry about when it comes to your credit.   That said, mistakes do happen too often, and that should be your primary concern if you have a strong history otherwise.   Fortunately, this is not the kind of mistake you should be concerned about.    Your total available credit is a very small component of your score.    Hopefully, you should have other lines of credit and a good credit history, so this mistake should not matter much, if at all.

If you are rebuilding your credit, than it is important to you that you are given credit for your credit, so to say.   I am surprised that the credit reporting agencies did not side with you on your disputes.   Documentation is key here.   You should have a copy of your last statement showing your credit limit.   You could also download statements from your bank’s web site.  I would recommend resubmitting your dispute with a copy of your statement clearly showing your credit limit.

If the reporting agencies truly believe you have a zero credit limit on those  cards, canceling them should be inconsequential.   Finally, one other possibility that you might consider is that the zero limit is for the old card, and a new account number was created for the Signature cards.   That would explain why your limit is zero and the dispute failed.   Verify that the account numbers for the reported accounts match the account numbers for the new cards that you received.   Be sure to reference the actual account number, which can be different than the number on the credit card itself.

Good Luck!


How do Joint Accounts Affect Credit?

By: Christina

before this past year, i never had any type of credit. i couldnt even get a store credit card. in the past year, i was lucky to get a cell phone service without paying a deposit fee because the attendee waived that fee. also in the past year i opened up a joined credit account at a large retail store with another friend. my friend has an impeccable credit history. the sale we purchased at the store was merely a small amount to the amount he he was prequalified. even smaller after he received the cards in the and it showed his qualified amount. since then ive been able to get a credit card of my own. my question how does opening that joint account at the store help out my credit. from what i remember my friend prequalified at the time of opening the account, to something btw 2 and 5 thousand. when he got the cards, he qualified for $12,000. the first and only sale made on that account was less than 800 dollars, and we payed it off, in in a short time. i guess the question is, did my friends amount approval help me out? i did get notices from equifax when we opened the account and when we finished paying it. thank you for your time.

ANSWER:

Wil,

It is possible that being added as a joint cardholder to your friend’s credit card helped your credit in a couple ways.

First, if your friend has a good credit rating, then that gives yours a slight boost as well. Alternatively, if your friend stops making his payments on the card, it could damage your credit. The same goes in the event that you default on the card, in that it will have a negative impact on your friend’s credit. This method has been used for years by many people who need help with improving their credit. It is just difficult to find someone that will take on the responsibility of making a friend a joint card holder.

Additionally, since you and your friend only made a small purchase and paid it off, you now have a large line of open credit being reflected on your credit report. The amount of credit that is available and not used raises  your credit to debt ratio which is also a boost to your credit rating and makes you more appealing to other creditors.

Second, you went from having no credit to having credit when you were added as a joint account holder, which also assisted your credit rating. It is sometimes harder to obtain credit when you don’t have any than it is when you have bad credit.

There is a difference between becoming an authorized user and a joint account holder. Authorized users are usually provided a credit card and are able to use it, but sometimes this status isn’t reported to credit bureaus and doesn’t impact the credit score. Joint account holders are actually agreeing to being responsible for the debt jointly and in the event that one person defaults, the other is still responsible for the debt.

Just continue to make your payments and pay them on time, so that you don’t end up hurting your friend’s credit. It is an extremely kind and trusting gesture to add someone to a credit card as a joint cardholder.

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