Posts Tagged ‘online spending’

With increasing rates of identity theft, many consumers choose to freeze their credit reports so that the credit report cannot be shared with potential creditors. When you freeze your credit reports, a lender or creditor who makes an attempt to check your credit history will not be able to order a report using your name and Social Security number.

How a Credit Freeze Works

To freeze your accounts, you will need to contact each of the three credit reporting agencies — Equifax, Experian and TransUnion — and provide them with identifying information such as your name, current and former address, Social Security number, birth date and a copy of your driver’s license. The request for a freeze can be made by certified mail or online.

Initiating a credit freeze costs between $3 and $10 per person per bureau, and you will likely receive written confirmation that the freeze is in effect after the credit bureau has received all the information they need. Check your state’s security freeze requirements and fees schedule for specific fees.

If you want to open a new credit account or apply for a loan, you have the ability to lift the freeze for a certain period of time so that the creditor can pull your credit report. Each credit bureau charges a fee (approximately $5 to $10) to lift the freeze temporarily, so you need to select a specific date and let the credit reporting agency know which creditor will be ordering a credit report.

Keep in mind that freezing your accounts will not lower your credit score, and will not prevent you from receiving pre-approved credit offers. If your spouse shares a credit account with you, both parties need to freeze their individual credit files separately for the entire account to be frozen.

When to Freeze Your Credit

You probably should freeze your credit if:

• You’ve been a victim of identity theft and had your accounts compromised.
• You’ve lost your credit cards and Social Security card or driver’s license.
• You simply suspect that you have been the victim of identity theft and want peace of mind that your credit report isn’t in the wrong hands.

When Not to Freeze Your Credit

There are some situations where it’s not a good idea to freeze your credit. If your job requires you to access your credit reports regularly to open new accounts, it can be very costly to lift the freeze every time you need to pull your report. If you’ve lost a single credit card or had a credit card stolen, you may only need to contact your credit card issuer to investigate the account and close it as needed.

Another drawback of freezing your credit report is that your credit report won’t be updated with your current name or address until you personally send that information to the credit bureaus. You will need to update your contact information on your own any time you move or make a name change.

Sabah Karimi

If you’re into social gaming, there’s a new form of payment for the variety of virtual goods available in many online games: Kwedit.

The Concept

Here’s how it works. Gamers create a Kwedit account, complete with a Kwedit score. Just as in real life, the score enables them to take on debt. However, in this case it is virtual debt, established by purchasing “items” online such as enhanced abilities for their characters. Upon purchase, the user agrees to pay a certain amount of real money within a few days. Money can be paid through the mail, or users can print out a bar code that can be scanned and paid for at 7-Eleven convenience stores. If a user is unable to make a Kwedit payment, they can opt for the “pass the duck” option, where the user asks a friend or family member to make the payment on their behalf.

With more completed purchases, the user’s Kwedit score goes up. Conversely, if a user simply looks at this as a great opportunity for stealing virtual products and doesn’t make good on their Kwedit promise, that user’s Kwedit score goes down. In that case, the user will find it harder and harder (just as in real life) to take on debt in the online gaming world.

So, what’s in it for game designers looking for a payout? Kwedit does actually encourage gamers to keep up a high Kwedit score if they want to continue using the system. It is also a payment system for users (especially young users) who may not have a credit card or other online payment system available to them. And if those users end up not paying? Likely not a big deal, since the goods purchased were virtual anyway, so no money is actually lost in that instance.

The Kwitic

Kwedit was recently skewered on the Colbert Report. To defend themselves, the company removed its duck mascot Kwedie and the CEO posted a response on the site’s blog.

Will Kwedit become the new PayPal? Probably not. For one, it deals strictly with the virtual world, hence the ability to easily buy now but pay later (or skip payment altogether). Because of this, it doesn’t scale well to a real world application. But for younger computer users looking to experience what earning an actual credit rating is like, and the effects of poor credit management, it may indeed be a popular choice. However on March 3rd, 2010, Kwedit received $3.3 million in a second round of financing led by Maveron.

Currently, games powered by Social Gold accept Kwedit payments, including FooPets, Puzzle Pirates, Greenpatch, Tetris Friends, Island Paradise and hundreds more.

Eric Fleming

You already share your mood status and your thoughts on current events on sites such as Twitter and Facebook, so why not share your latest credit card purchases, too? That’s what Blippy.com is helping people do. The service offers a real-time snapshot of what people are buying, where they’re buying from, and how much they’re spending.

Shoppers can now link their credit and debit card accounts to their Blippy.com account. The site automatically updates each time a purchase is made from online merchants including Blockbuster, Netflix, Amazon.com and the iTunes store. Blippy.com has tracked more than $4.5 million dollars in transactions to date and reports that the average purchase amount of its 5,000 users is just over $40 per purchase.

Blippy describes itself as a “fun and easy way to see and discuss the things people are buying.” There are currently 16 stores listed on the site but users are encouraged to recommend a store they don’t see on the list.

Yet why would people want to share what they’re buying at any given moment? One benefit of joining Blippy is that the public time line of posts will give friends and followers a chance to see what the current price is for certain products from their favorite merchants. Blippy users can essentially compare purchasing notes with the world, and perhaps make more informed decisions about their next purchase.

People can also connect with other savvy shoppers with similar interests. Users sign into the service using their Facebook or Twitter accounts and handles, can leave comments on other users’ purchases, and they can indicate whether they “like” a certain buyer’s activity. Blippy is a live, interactive display of buyer habits across some of the most popular Web merchants, and ultimately creates an online shopping community with very specific price information.

Blippy assures users that all consumer credit card information and identifying information is confidential and takes security measures to make sure account information doesn’t enter the community in any way. As the site moves out of beta testing, more people will be able to participate in this emerging community to post their thoughts about friends’ purchases and send out updates about their own.

Sabah Karimi