Do you know your credit card company profile’s you to determine your future credit risk based on your current spending habits?  They called it behavioral modeling.  Using complicated formulas credit card insurers track and study your purchases to determine your credit risk and credit limits.

Purchases that can lower your credit score include:

• Bar tabs – may indicate you enjoy the social scene or drowning your sorrows
• Pawnshop, thrift store – may indicate your are experiencing financial problems
• Casino or racetrack – may indicate you are a gambler and is at risk of missing payments
• Marriage counseling – may indicate you are under domestic stress and possible future financial stress
•  Doctor’s office – may indicate you are not in good health and therefore could be a credit risk

On the flip side purchases can increase your credit score which include:

• Car maintenance and hardware store – may indicate you are responsible in taking care of your assets
• Airplane tickets and hotel – may indicate you have money for extras like vacations
• Doctor’s co-pays – may indicate you are still employed and have health insurance

Due to the recent recession with many people unemployed and/or facing foreclosures, credit card issuers are looking very closely at their customers to determine who is at risk to miss payments.  Residents of states with high foreclosures rates, such as Nevada, California and Texas are considered higher credit risks.

In May 2009 President Obama signed into law Credit Reform.  A part of the legislation directed federal regulators to examine how credit card issuers are using customer information to determine credit limits and credit scores.  Additionally, a report is due next month reporting the affect of credit profiling effect on minority and low-income credit card holders.

Experts believe that cardholders who want to avoid credit score declines should use prepaid debit cards, gift cards or cash.

Chase is offer 10,000 bonus points for getting the Chase Sapphire credit card.  The 10,000 bonus points equates to $100 in rewards.  The card comes with no annual fee with unrestricted rewards.  You can use the rewards for any airlines, hotels, rental cars, cruises and numerous gifts.  Best of all, your rewards never expire.

You will get 10,000 bonus points after first purchase.  First purchase includes purchases, balance transfers, or any checks that are used to access your account and excludes cash advances.  After qualifying the bonus will be posted to your account in 6 to 8 weeks.  This offer is only for first-time card members with new accounts.  Existing card members/accounts are not eligible for this offer.

For more information visit GetChaseSapphire.com.

If you are looking for a very good prepaid debit card you should consider the Mango card.   Mango is a free prepaid MasterCard with $0 activation fee.  You can send money, check your balance or view transactions on your mobile or online.  Loading the card is easy.  You can load the card with your paycheck, transfer from a bank account or add cash at retailers nationwide.

The Mango free prepaid MasterCard features:

• $0 Activation Fee
• FREE Direct Deposit
• FREE unlimited purchase / signature transactions
• FREE account management online or with your mobile phone
• FREE to check your balance with your mobile phone
• No monthly fee when you load $500/month
• Send money with your mobile phone
• Load cash at tens of thousands of retailers nationwide
• No credit check, no bank account needed, no overdraft fees

For more information visit MangoMoney.com.

There are many financial tools on the Internet.  However, many major credit card companies offer financial management tools even if you are not a customer.  Some of the sites listed below are open to anyone:

1. Chase Blueprint is a personal finance tool tied to select Chase cards that allows customers to determine how they want to apply payments across their statement balance.
2. American Express Money Manager Tool is free to American Express cardholders. The newly-launched Money Manager Tool helps users stay on top of their finances by giving them a complete view of all their accounts, credit cards, and loans in detail and have a big picture view of your money management. Users can link all of their personal financial accounts in one place, and customize graphs and budgets so they can monitor their spending and budgeting the way you want to.
3. Capital One MoneyWi$e is a partnership between Consumer Action, an advocacy group, and Capital One.  This website offers helpful tools and articles specific to your money goals, whether that is educating your teen on credit or learning how to build wealth.
4. Wells Fargo Smarter Credit  is open to all anyone, and has learning tools, articles, tips, and information aimed at helping consumers establish/rebuild credit, reduce debt, get more credit, and manage and protect credit.
5. Discover’s Spend Analyzer offers online tracking and spending of purchases for Discover customers. Users can categorizing spending, comparing spending patterns over time, and sorting transactions by detail so you can manage how you use your Discover Card.  Analyzer only tracks spending of Discover card, and not all of  financial accounts. One unique feature is the “Paydown Planner”, which helps create a plan for reducing your Discover card’s balance and get you out of debt.

If you have excellent credit and carry a balance on your credit card, you may want to consider getting the Capital One Platinum Prestige Credit Card.  

The card offers 0% APR on transfers until September 2010 and 0% APR on purchases until September 2010 with no annual fee.  Transfers are processed in as little as 48 hours.

After September 2010, your variable rate will be about 8.75% plus prime and however, by then you maybe able to find another card with a similar offer.

As stated, this card is only for people with excellent credit which CapitalOne defines as people who had a credit card or loan for at least 5 years, a credit card with a limit greater than $10,000, never declared bankruptcy and never had more than 60 days late on a credit card, loan, or medical bill.

For more information visit CapitalOne.com.

If you are in the market for a credit card, now you can search here on Money-Cake.com for credit cards based on credit card type, your credit rating and credit card brand. 

Additionally, you can sort credit cards based on Intro APR, Intro APR Period, Regular APR, Annual Fee and Credit Type. You can also “Mark as favorite” to save credit card offer for review later.

Below are the various search options:

Lending Club has announced that in the next few weeks one lucky winner will be their 25,000th registered investor.  To celebrate this milestone, the 25,000th registered investor will receive $2,500 cash.

In addition, each new registered investor you invite during September will instantly receive $25 to invest in Lending Club notes.  Lending Club notes offered by prospectus registered with the SEC.

To receive $25 to start investing and become eligible for the $2500 prize visit LendingClub.com and in the “Referred by” code enter: pbirm.

The winner will be announced on Lending Club blog after October 1st.  For contest details visit the Terms & Conditions page.  Good luck

As a side note, after researching Lending Club, I recently invested $10,000 and so far so good! When I opened the account, Lending Club was offering a $200 bonus, so I couldn’t resist. That’s an immediate 2% return, with an expected 10%+ (conservative) annual return for the next 3 years. Over the next several months I’ll be reporting on my progress.

For more information visit LendingClub.com.

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