If you've had a credit card for more than three months you've likely been solicited to sign up for a payment protection plan. The benefits of these plans vary among card issuers, but in most cases, if you experience a qualifying event such as a job loss, the issuer will make your minimum payments and suspend any finance charges. I've always seen these plans as a rip-off but given the recent layoffs and down-sizings, I began to wonder if they make sense in certain situations.

Specifically, is it worth it to sign up for payment protection services if you know there is a strong likelihood that you will lose your job in the next few months? After looking into the protection programs from several of the most popular card issuers I came to a surprising conclusion: Based on the low cost of subscribing to these protection services on a short term basis, it is likely worth signing up if you believe your job will be gone somewhere between 30 and 90 days from now.

Looking for a safe place to stash my money recently, I debated whether I should choose the one-year CD that currently yields 4.2%, or the free airline ticket for opening up a new bank account. Or should I open an account at the bank that will make a $100 donation to charity in my name, or the one that gives me $250 for referring friends who also open up accounts?

My choices are numerous these days, as banks battle it out to get my money. USA Today reports on the trend of banks offering airline tickets, charitable donations and even cash to drum up business as they search for low-cost funding.

Finally, one area where we can get more for our money. Now that more non-traditional lenders are turning into bank-holding companies (American Express being the latest), there's more competition for the deposits they need to stay funded, so plan on seeing more banks offering you more perks if you just hand your money over to them. It also means they'll bid up the rates offered on CDs, jumbo CDs and other deposits. I'm hoping they bid it up to a 5% yield; a federal credit union did just that recently for a nine-month CD. And if a positive return sounds better to you than an airplane ticket, check out Bankrate for the highest CD yields, updated daily.

If you haven't traveled internationally before, you might be operating under the assumption that using your credit card is no different than using it at Wal-Mart. Unfortunately this isn't the case; using your credit card in another country can lead to high fees for currency conversion or even a frozen account if your card issuer suspects fraud.

When I recently found out that my sister was planning a winter trip to Africa I took it as my brotherly duty to find the best credit card for her. As luck would have it, Jim from Blueprint for Financial Prosperity, is also traveling abroad soon, and he took an in depth look at the currency conversion fees for popular credit cards in order to find the best credit card to use internationally.

There are three fees that go into determining the total cost of any international transaction, which can add up to 8% to a purchase price. These fees include a foreign currency conversion fee, an issuer fee and a dynamic currency conversion fee. The majority of cards charge at least one of these fees for any international purchase, even if a bill is paid in full before the end of the billing cycle.

Answer: They can all affect your credit score!

A couple months back I read an article over on Budgets are Sexy by J. Money, who shared an interesting fact about credit cards, college students and the power of freebies.

A study by truecredit found that 40% of those surveyed had signed up for a credit card just to get a T-shirt or similar freebie, and over half of those people left college with credit card debt.

Free is a pretty amazing motivator. In my younger days, I also signed up for a credit card just to get a free t-shirt, but I promptly canceled the card when I found out how high the interest rate was. And my credit score still got dinged for opening and closing this card.

The most saddening statistic to J. Money and to myself as well is that 1 in 4 students left college with more than $5,000 in credit card debt. Most graduates already have thousands of dollars in student loans; another $5k in high interest credit card debt is something nobody needs. If students are racking this debt up on plastic they signed up for because of a free T-shirt, the risk that the credit terms are bad goes even higher

ABC Family's Greek recently provided a perfect example of the risk associated with picking a credit card based on the freebies they are offering rather than terms rewards and service. One of the main characters, Ashley, signed up for a credit card last season with horrendous terms including the $2,000 balance being due in full at the end of the month. I'm glad amidst the partying and pranks, the writers illustrated the problems associated with uninhibited credit card use, and I can only hope the viewers also absorbed this information. The show even avoids the easy way out by having Ashley's scheme to win the money in one night fail, requiring her to get a job to pay off the balance.





Basically it comes down to whether or not you think your credit score is worth a T-shirt whose value hovers somewhere around $2.50. If you think paying more in interest for the foreseeable future and being turned down for auto loans is worth a t-shirt; then by all means go ahead...sign up today. I bet you look cool in that free T-shirt!

It seems not a day goes by that I don't hear of some new method of identity theft or credit card fraud to guard against. And yesterday was no exception.

I spotted an article about a group of Huntington bank customers whose debit card information had been used to buy several air conditioners at Overstock.com. Huntington was quick to deny fault in the matter, deferring the blame to, "some link on the Internet." Thankfully Overstock.com quickly reimbursed the fraudulent transactions and shed some light on how the theft may have occurred.

Alan Johnson, who heads up the fraud department at Overstock, told our local paper that the numbers were likely compromised by "card tumbling," a method of fraud that seems fit for an upcoming episode of Numb3rs. Since I can't call in Charlie Eppes to explain card tumbling, I'll do my best to break it down for you.

Much in the same way that a locksmith focuses on how a lock works in order to pick it, card tumblers focus on the rules and math that govern how credit card numbers are created in order to get to your money. Once they create a credit card number, they test it for validity and if successful it's used on sites that don't verify other information such as the name or security code on the credit card.

Perhaps what is most frightening about this method of theft is that you don't have to use your card online or have the number stolen to lose out. Even though the normal methods of safeguarding your credit and debit card numbers won't protect you from this method of hacking, there is one step you can take to keep your funds safe. To avoid the realization that someone in Nigeria has emptied your entire account, you can have your debit card attached to a secondary account in which you only keep money you are going to spend in the near future.

Nobody sets out to rack up credit card debt, but once you stop paying off your balance every month it becomes easier and easier to pay less and less. Before you know it, you're paying $20 bucks over the minimum, vowing (unsuccessfully) each month to stop charging anything else to the card. All too soon, you've accumulated a couple grand in credit card debt, and while you console yourself with the fact that this is about the average for Americans who carry a balance on their cards, the sad reality is that credit card debt is a cherry on top of the debt sundae holding you back from getting on with life.

Even if you've managed to reign in charging your lifestyle, as long as you carry revolving debt on your credit card, every dollar you spend on a cash purchase instead using ti to pay down your balance prolongs your agony. I charged the haircut I got this morning, the $3.79 I spent at Taco Bell ,and every video game I own! I may as well pay off a chunk of my debt and then charge these purchases to the credit card. At least then I'd save some money on the interest charges.

Don't miss the rest of our series on 15 Ways to Ruin Your Financial Future!

When it comes down to it, it's important to remember that just because I blog on personal finance doesn't mean I make all the right decisions when it comes to crunch time. Of all of the financial decisions I have made, this lingering credit card debt is the most bothersome. In my case, the debt has added to the reasons we haven't purchased a house. For a few close friends, credit card debt has led to delayed car purchases and relationship strife.

If you haven't racked up credit card debt yet, take this warning to heart and pay off your balance every month. If you've slipped like me and accrued a balance, then there are a few steps you can take to start making a better financial future. The first thing I did was to stop buying so much stuff. I still have my vices, but I don't spend as much on them now. The next thing I did was to transfer the balance to another card with a 0% offer for a year and a cap on the balance transfer fees. The final step is to start making regular payments way above the minimum in order to knock the debt out. If you don't have the extra money, I'd suggest you start looking for a second or third job!

It started small last month, if you consider stranding 900 people on the wrong end of the planet "small." That's when the airline Zoom, which made regular transatlantic runs to North America, zonked out unexpectedly.

The sudden death of airlines creates a ripple effect. Last week, another 2,500 English travelers were left high and dry in the Mediterranean when Seguro, a vacation packager, raised the white flag. You see, the Spanish flyer Futura suddenly folded, leaving the vacation packager that used its flights holding the bag.

The next day, Britain's third-largest vacation seller, XL, gave up the ghost, halting its self-run flights and stranding an astounding 85,000 people abroad. That's a lot of sunburned Brits pounding the counters at tropical airports. Some 10,000 of them, who booked their flights without packages, were not covered by the bond and had to pay more money to get back home. Another 200,000 people with advance reservations were also wondering where their down payments had gone.

Many of the victims of these collapses thought they were covered because they used their credit cards to buy their trips. That's just not the case.

As consumers, we should stand up for our rights. If we don't, companies can easily walk all over us and cost us money. However, standing up for your rights should have its limits, especially when dealing with credit card companies.

I saw this question from a consumer who made a mistake with a payment on her credit card. She ended up being charged a $29 late fee. She paid her full balance and asked the credit card company to remove the late fee. They refused, so closed the account without paying the fee. Now she finds herself with fees upon fees for not paying the original late fee, and she has a negative mark on her credit report.

When a credit card company charges interest or fees that you feel are unfair, it never hurts to ask them to remove the charges. Plead your case politely, and sometimes you'll win. But in the cases in which you don't win, you shouldn't make the mistake of trying to play "hardball" with the credit card company.

Many consumers are aware that their credit history can have a big impact on their lives, and the effects reach beyond the home mortgage, the auto loan, and the credit card. Credit scores have long been used by insurance companies in determining the premiums you pay. Hospitals are starting to look at credit histories before providing some types of care.

And now the credit scoring mystery gets a little stranger. The FTC is suing CompuCredit, company that provides credit cards to people with poor credit. The FTC is alleging that the company uses unfair practices in its proprietary system of credit scoring for its customers.

For CompuCredit, it doesn't just matter how long you've had an account, whether you've made your payments on time, or whether you've exceeded your credit limit. They also include factors in their scoring system based on what you're buying with your credit card. And they're cutting off customers who use their credit cards at massage parlors, bars, billiard halls, and marriage counselors.

Today in the mail, I received a new credit card from Discover. But the question is why. I didn't open a new account. My card hadn't expired. I didn't get a new account number. I hadn't lost the card. I didn't request a second card.

There was no documentation with the card other than the standard "here's your card" notice and the sticker on the front of the card saying it must be activated by calling from your home phone. Except I already have a card with the exact same numbers on the front and the back that's already activated. No activation needed for this card I received today... the card number is already up and running.

Each time a credit card company sends out a credit card, isn't there a certain amount of risk that goes along with it? The envelope could get lost and the card could end up in the wrong hands. The card could be stolen by someone who's a part of the mailing process. At the very least, someone could get the numbers off the card and try to use them online.

Consumers have rights when it comes to fraudulent credit card charges or charges for products and services that aren't what they paid for. The key to successfully challenging a charge is in knowing what to say and who to tell. That sounds elementary, right? Except Consumer Reports is saying that many consumers don't know their rights or how to enforce them.

Small dollar amounts are easy to dispute and resolve, as it's estimated that it costs a credit card company $25 for each charge it must investigate. This means they're likely to give refunds for small amounts without much work. It would cost more to investigate than to just give you your money. The credit card company also has to weigh the risk that you will close your account if your matter isn't resolved. They lose money when you do that.

Here are a few key points about your credit card: Report suspicions of credit card immediately to stop the harm. Most billing problems need to be disputed in writing, and many credit card companies don't recognize e-mail as "in writing." The credit card company must receive your letter within 60 days from the statement date, so don't wait. Include with your letter all copies of supporting documentation to help prove your claim.

One key to getting your credit card company, bank, or other creditor to work with you when your financial situation is precarious is by making sure they're listening. Make no mistake, credit card companies want your business. Heck, they want business so badly, they're willing to give a credit card to just about any adult with a pulse. But of course, they want to be paid back.

So if you're trying to negotiate with a lender, the first step is to make sure they know that you want to pay them back. (Don't make silly references to bankruptcy and such. That's just a threat and doesn't get you anywhere.) If you're asking for a break on your interest rate or some extra time to pay, make it clear that you plan to pay everything you owe, but you need some temporary help. And once the credit card company or bank gives you that help, make good on your promises and pay as agreed.

Here's an example of how not to get your lender to negotiate. Be obnoxious, annoying, and belligerent. Believe me, the old adage of attracting more flies with honey is true. Be nice to the customer service representative and give her or him a reason to want to help you.

Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.

Most credit cards with variable rates have their rates tied to the prime interest rate. That rate has been going down, but consumers are still seeing their credit card interest rates rising. How can that be?

For consumers with good credit, their credit card rates will usually fall as the prime interest rate falls. But those consumers whose credit is suffering will not see the same benefit. Particularly if they are behind on their debts or doing other things that negatively impact their credit scores, they will likely see an increase in credit card rates.

So if you've got a credit score of 700 or above, expect to see your interest rates on your credit cards go down. If your score is lower or you've been experiencing debt troubles, watch your rates carefully. They're likely to be on the rise, which could put you even deeper into trouble. You typically have the right to refuse the rate increase, but you'll have to pay off the account and close it. Play the credit card game wisely.

Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.

Have you heard of the "smart card"? It's a credit card that's enabled with a "smart chip" which utilizes RFID technology to transmit your credit card information to a checkout terminal. The cards are supposed to save time and improve security.

It sounds cool, doesn't it? It is... except it now means that someone can steal your credit card information without ever even touching that card. If they get close enough to you with a device created to steal the information transmitted by the smart chip, your identity and information can be compromised.

Credit card companies say that their cards with the chips are secure and consumers shouldn't be worried. I'm not so sure, and I think I'll take a pass on the chip-enabled cards for now. I really don't need identity thieves to have one more way to steal my credit.

Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.

Last week at The Consumerist, a Chase customer service representative gave some insight into his job and how the bank views customers. I found out that I'm a bad customer for Chase, and I like it that way. Here's why I'm a bad customer....

Apparently only about 5% of credit card customers are considered the "best." You get to be a best customer if you borrow lots of money from the bank for homes and cars, or if you have a high credit card balance and you're paying them a lot of interest.

You get to be a "valuable" customer of Chase if you pay your credit card bill on time. Basically, you cause the bank no trouble, so they don't mind keeping you. But you do have to still pay the bank some sort of interest charges.

And then there are the "non-profit" customers of Chase. They pay their bill in full every month, so no interest charges are generated. A small fee is earned by the bank each time you use your credit card, but the vast majority of the transaction fees are kept by Visa and Mastercard, so essentially Chase makes no money on your account. The non-profit customer always pays the bill on time, so there's never a late fee and they don't go over their credit limit, so no fees there either.