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The federal government is now involved in a credit card skimming scheme that affected a number of customers who patronized a Tulsa McDonald’s drive-thru.

One worker has already admitted to using a handheld credit card skimming device over the course of three weeks in order to snag the credit card numbers. The employee then sold the numbers he acquired to Daniel Jefferson. Jefferson and three accomplices then had access to nearly 282 credit card numbers, which were found on the accuseds laptop.

Credit card skimming devices are not an uncommon scam affecting credit card holders. The mechanism is used to capture the important details of the customer’s credit card with a simple swipe and many times consumers have no idea their cards have been skimmed during a normal transaction. The

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People struggling with bad credit know how difficult it is to get approved for a new credit card. But what if you were given the chance to open a new credit card with the agreement that you’d pay off an old debt? Would you accept the offer?

In December 2011, the Wall Street Journal reported a credit card arrangement just like this. Consumers with bad credit were able to get a new credit card, but it required them to pay several hundred dollars per month toward an old debt. Is it worth it?

How Old Debts Become Duds

After a certain amount of time, creditors and collectors lose their power to pursue you for a delinquent debt. The statute of limitations, which determines how long you can be sued for a debt, is different for every state, but ranges from 3 to 15 years. In most cases, the statute of limitations on debt is six years or less. If a collector sues you for a debt you haven’t touched in several years, all you have to do is prove that the statute of limitations has passed and the case will probably be dismissed.

Then there’s the credit reporting time limit which dictates how long delinquent debts and other negative information can appear on your credit report. That time limit is seven years for most negative data and ten years for bankruptcy.

Making Old Debts Anew

Once the statute of limitations has run out and a debt has fallen off your credit report, debt collectors realize they have little hope of ever collecting a debt from you. But, accepting a new credit card attached to the old debt reinvigorates that debt. You’re on the hook again. If you fall delinquent on your payments a second time, the debt collector can sue you and report the delinquency on your credit report. But, on the bright side, if you make your payments on time and handle the debt responsibly this time around, you may qualify for a better credit card offer.

Getting New Credit Despite Your Bad Credit

Whether you feel morally obligated to pay back the debt or not, signing up for an offer like this isn’t the best way to get your credit back on track. There are other ways to get a credit card that don’t involve reaffirming your old obligations.

Even if you find it hard to get approved for regular credit card or retail credit cards, a secured credit card is usually the best option. Secured credit cards require you to make a security deposit to secure the credit limit. The Capital One Secured Mastercard has an offer that lets you pay $49 or $99 for a $200 credit limit, if you qualify. Worst-case scenario, you’ll have to come up with at least $200 to secure your credit limit. It’s not bad considering you might have to pay that amount or more monthly if you accepted a credit card deal from a debt collector.

Don’t let a debt collection credit card offer fool you. If you know you have bad credit and you haven’t been successful at getting your credit card applications approved, you should be suspicious of any credit card offers you receive. Read the fine print thoroughly, several times if necessary, and make sure you know what’s expected if you decide to accept the offer.

Cutting down on overhead costs for credit cards is a great way to keep finances manageable but it often means choosing between different features.

Both low interest and low or no annual fee credit cards can help to make credit cards more affordable and often the best of these features will not be combined onto one card.

Deciding whether to opt for a low fee or low rate card can be a struggle for anyone because each comes with different potential benefits and disadvantages.

To help you get a better idea of which choice could be better for you, here is a look at how both of these kinds of credit cards can work for or against you.

Low Fee Credit Cards

People could be paying hundreds of dollars in annual fees for their credit card (or cards) without ever thinking about it.

While some are happy to pay the extra money, especially when rewards are involved, these fees eat away at money that could be put towards repayments or savings.

While some low fee credit cards, like Westpac’s 55 Day Classic or Suncorp’s Standard Visa have combined low annual fees with competitive interest rates, they still only have basic features.

A no annual fee credit card like the Bankwest Zero Gold or American Express’s Gold Ascent card, on the other hand, combine no annual fee with additional benefits so that people can get the best of both worlds.

The trade off with a low or no annual fee credit card, however, is usually higher ongoing interest rates so these cards are best suited to people who do not usually carry a balance.

Low Rate Credit Cards

Low rate credit cards are ideal for people who want to make the most of payment flexibility with credit cards.

Anyone who carries a balance or likes to take time paying off big expenses will find a lot of value in low rate cards but they should also consider other features of the card.

While many low rate cards also carry annual fees under $100, it is often the case that the more features you want, the more the annual fee will cost.

The other thing to be aware of is that the lowest fees will almost always be part of introductory offers, and could increase once that period has ended, leaving you with a higher rate of interest and higher fees.

The Virgin Flyer, for example, offers 0% interest on purchases and balance transfers for 6 months but then reverts to 20.99%. In co

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The recession seems to be taking a back seat as more people pull out their credit cards to pay for everyday items. According to The Christian Science Monitor, consumers racked up a total of $64 billion in credit card debt for the year 2011, and January 2012 has already seen an increase in credit card use.

January normally means a return to less spending, trimming your budget, and putting off big purchases, but more consumers are throwing caution to the wind when it comes to credit card spending. In fact, the payment processing company First Data reports that people are using their credit cards at rates not seen since the pre-recession era.

What has spurred this rise in credit card spending?

Banks have cancelled or severely cut back on their debit card rewards programs, and have even suffered a backlash when they instituted debit card fees.

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Consumers beware; the United States officially has the highest rate of credit card fraud in the world — a staggering 47 percent of all cases occurred in the United States.

In 2010, 3.56 billion in payment card fraud losses reported in the United States alone, with another 4.04 billion lost world wide, up more than 10 percent from 2009. The United States counts for 27 percent of the worldwide purchases, but nearly half of all credit card fraud activity, which is explained by the fact that the United States have been last on board with new security measures that have gained popularity in the rest of the world.

Credit fraud can leave a huge mark on one’s credit report and getting the credit bureaus to remove the information can be a hassle, so it’s best to avoid fraud at all costs by frequently checking credit and bank accounts online and freezing a card once fraud is suspected.

Monitoring alone will not prevent fraud, only put it to a halt. To pr

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With competition between credit card providers leading to more appealing introductory offers there are times when people may want to consider switching to a new card.

Just like it is important to compare different credit card offers, it is a good idea to compare features on your current card with those of new credit cards to make sure you are getting the best deal.

With these simple steps below you should be able to compare your current card to new card offers to make the most of using your plastic.

Step One: Consider The Categories

Knowing what kind of cards you are interested in will make it easier to compare different options and weigh up the benefits for current and new cards.

Someone with a general rewards card, for example, might find there are frequent flyer options that will earn them more points and can be redeemed for a range of rewards as well as flights around the world.

On the other hand, if you were switching from a rewards card to a low rate option, it might be helpful to consider the complimentary extras that some cards offer so that there are still benefits to using your credit card.

Credit cards come with all kinds of specific benefits from low interest rates and balance transfers to rewards and knowing exactly what you want will make it easier to find the right card.

Step Two: Look At Ongoing Features

While it is easy to be swept up in the hype of introductory offers, looking at the standard features of new credit cards will help give you an idea of how manageable it will be so that there are no nasty surprises once the introductory period ends.

Some new credit card offers will provide low rates for a limited time before switching to much higher ongoing rates, so comparing the long-term costs of a new card to your current card could save you a lot of money down the track.

Step Three: Make The Most Of Introductory Signup Bonuses

Whether it is a great balance transfer rate or additional reward points, the bonuses available with new credit cards can add real value to making a switch.

But these offers tend to come with certain conditions, so it is a good idea to read the fine print first and make sure any requirements for the bonus will fit with your current credit card habits.

Even if you are happy with your current card, it can be a good idea to compare the features with other options out there.

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