Connect with us

Bad Credit

10 Best Starter Credit Cards to Build Credit (2020)

Published

on

In this article, we review the 10 best starter credit cards to build credit. Using a starter credit card is an efficient way to create and build your credit profile.

Many consumers who’ve never used credit are candidates for these cards, including students and unbanked millennials. In addition, you can work to rebuild a low credit score by getting a starter credit card and using it responsibly.

These cards are easy to acquire and most offer cash back rewards. Whichever one you choose, resolve to pay your bill on time and limit the amount of available credit you use. By doing so, you can establish yourself as a creditworthy consumer with a good credit score and one who deserves access to loans and additional credit.

Best Overall
Students | Cash Back | Secured

The Capital One® Platinum Credit Card is our top choice for credit beginners. It is a no-frills card that is fairly easy to obtain.

It takes only a minute to find out whether you’re approved — just fill out a short application form with information about your employment status, annual income, and monthly mortgage/rent.

  • Pay no annual fee
  • Get access to a higher credit line after making your first 5 monthly payments on time
  • Fraud coverage if your card is lost or stolen
  • Use online banking to access your account, even from your smartphone, with our mobile app
  • Pay by check, online or at a local branch, all with no fee – and pick the monthly due date that works best for you
  • Get access to your account 24 hours a day, 7 days a week

N/A

N/A

26.99% (Variable)

$0

Average, Fair, Limited

The card charges no annual fee and provides $0 fraud liability. The minimum credit line is $300, but you may be able to access a higher limit by making your first five monthly payments on time.

Benefits include instant purchase notifications, free access to your credit score, instant card lock/unlock, and suspicious activity alerts.

College is a place to experience many new things, from wild to mild. In the latter category is getting your first credit card.

The following three cards are designed to give students access to credit without requiring a credit history or score. They all offer cash back rewards and charge no annual fees.

STUDENT RATING

★★★★★

4.9

  • INTRO OFFER: Discover will match ALL the cash back you’ve earned at the end of your first year, automatically. There’s no signing up. And no limit to how much is matched.
  • Earn 5% cash back on everyday purchases at different places each quarter like grocery stores, restaurants, gas stations, select rideshares and online shopping, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases – automatically.
  • Good Grades Rewards: $20 statement credit each school year your GPA is 3.0 or higher for up to the next 5 years.
  • No annual fee. No late fee on first late payment. No APR change for paying late.
  • Get 100% U.S. based customer service & get your free Credit Scorecard with your FICO® Credit Score, number of recent inquiries and more.
  • Freeze It® on/off switch for your account that prevents new purchases, cash advances & balance transfers in seconds.

0% for 6 months

10.99% for 6 months

14.49% – 23.49% Variable

$0

Fair/New to Credit

STUDENT RATING

★★★★★

4.8

  • INTRO OFFER: Discover will match ALL the cash back you’ve earned at the end of your first year, automatically. There’s no signing up. And no limit to how much is matched.
  • Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter. Plus, earn unlimited 1% cash back on all other purchases – automatically.
  • Good Grades Rewards: $20 statement credit each school year your GPA is 3.0 or higher for up to the next 5 years.
  • No annual fee. No late fee on first late payment. No APR change for paying late.
  • Get 100% U.S. based customer service & get your free Credit Scorecard with your FICO® Credit Score, number of recent inquiries and more.
  • Freeze It® on/off switch for your account that prevents new purchases, cash advances & balance transfers in seconds.

0% for 6 months

10.99% for 6 months

14.49% – 23.49% Variable

$0

Fair/New to Credit

STUDENT RATING

★★★★★

4.8

  • Earn 1% cash back on all your purchases. Pay on time to boost your cash back to a total of 1.25% for that month
  • Enjoy no annual fee and no foreign transaction fees
  • Get a head start and build your credit with responsible use
  • Get Eno®, your Capital One® assistant, to manage your account via text, receive alerts, and shop safer online
  • Pick the monthly due date that works best for you
  • Get access to a higher credit line after making your first 5 monthly payments on time

N/A

N/A

26.99% (Variable)

$0

Average, Fair, Limited

The two Discover cards offer a Cashback Match on all cash back you earn in the first year after opening the account. We also like the Discover cards for their good-student rewards and an introductory six-month period of 0% APR on purchases.

Journey® Student Rewards from Capital One® encourages good financial habits by offering a higher cash back rate for the months you pay your bill on time. The card also rewards timely payments during the first five months of ownership by raising your credit limit.

The combination of easy acceptance and cash back rewards sets these cards apart, as you often have to choose between one factor or the other. Two of the cards (Capital One® QuicksilverOne® and Credit One Bank® Visa®) offer a flat cash back rate on all purchases, although the former offers a slightly higher rate.

CASH BACK RATING

★★★★★

4.7

  • Earn unlimited 1.5% cash back on every purchase, every day
  • Earn cash rewards without signing up for rotating categories
  • Get access to a higher credit line after making your first 5 monthly payments on time
  • Monitor your credit profile with the CreditWise® app, free for everyone
  • $0 fraud liability if your card is ever lost or stolen
  • No limit to how much cash back you can earn, and cash back doesn’t expire for the life of the account

N/A

N/A

26.99% (Variable)

$39

Average, Fair, Limited

CASH BACK RATING

★★★★

3.7

  • No Annual Fee, earn cash back, and build your credit with responsible use.
  • It’s a real credit card. You can build a credit history with the three major credit bureaus. Generally, debit and prepaid cards can’t help you build a credit history.
  • Establish your credit line with your tax return by providing a refundable security deposit of at least $200 after being approved. Bank information must be provided when submitting your deposit.
  • Automatic reviews starting at 8 months to see if we can transition you to an unsecured line of credit and return your deposit.
  • Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter. Plus, earn unlimited 1% cash back on all other purchases – automatically.
  • Get 100% U.S. based customer service & get your free Credit Scorecard with your FICO® Credit Score

N/A

10.99% for 6 months

24.49% Variable

$0

New/Rebuilding

CASH BACK RATING

★★★★

4.0

  • Qualified applicants will receive exclusive benefits such as 1% cash back rewards on all purchases, no annual fee, and a competitive APR. Terms apply.
  • Manage your account quickly and easily from your mobile device by using the Credit One Bank mobile app.
  • Use your Apple device to make purchases securely through Apple Pay®. Apple Pay is a registered trademark of Apple, Inc.
  • Your account is safeguarded against unauthorized charges with Zero Fraud Liability at no additional charge.
  • Take advantage of free online access to your Experian credit score and credit report summary so you can track the key factors impacting your credit health. Terms apply.

N/A

N/A

19.49% to 25.49% Variable

$0 – $99

Fair

Cash back may be the most useful reward for a wide swath of consumers with no credit histories. Most folks who prefer travel cards that provide mile or point rewards already have credit cards (and credit histories), considering how hard it is to travel without a credit card.

Certainly, cash back cards give you the most flexibility. It’s nice to earn cash back when you’re buying groceries and gas, as it acts as an automatic discount without the need to clip coupons.

Of course, you’ll only truly reap the benefits of cash back — or any credit card rewards — if you pay your total balance off each month. This prevents interest charges that will negate the value of any rewards earned from accruing.

Secured credit cards are among the easiest to obtain as long as you can afford to make the required cash deposit. You should prefer your deposit to be FDIC-insured and earning interest.

SECURED RATING

★★★★★

4.9

  • No annual fee, and all the credit building benefits with responsible card use
  • Unlike a prepaid card, it builds credit when used responsibly, with regular reporting to the 3 major credit bureaus
  • Access to an authorized bank account is required to make your $49, $99 or $200 refundable security deposit
  • Make the minimum required security deposit and you’ll get an initial credit line of $200. Plus, deposit more money before your account opens to get a higher credit line
  • Get access to a higher credit line after making your first 5 monthly payments on time with no additional deposit needed
  • Easily manage your account 24/7 with online access, by phone or using our mobile app

N/A

N/A

26.99% (Variable)

$0

Limited, Bad

SECURED RATING

★★★★★

4.5

  • No Annual Fee, earn cash back, and build your credit with responsible use.
  • It’s a real credit card. You can build a credit history with the three major credit bureaus. Generally, debit and prepaid cards can’t help you build a credit history.
  • Establish your credit line with your tax return by providing a refundable security deposit of at least $200 after being approved. Bank information must be provided when submitting your deposit.
  • Automatic reviews starting at 8 months to see if we can transition you to an unsecured line of credit and return your deposit.
  • Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter. Plus, earn unlimited 1% cash back on all other purchases – automatically.
  • Get 100% U.S. based customer service & get your free Credit Scorecard with your FICO® Credit Score

N/A

10.99% for 6 months

24.49% Variable

$0

New/Rebuilding

SECURED RATING

★★★★

4.0

  • No credit check necessary to apply. OpenSky believes in giving an opportunity to everyone.
  • The refundable* deposit you provide becomes your credit line limit on your Visa card. Choose it yourself, from as low as $200.
  • Build credit quickly. OpenSky reports to all 3 major credit bureaus.
  • 99% of our customers who started without a credit score earned a credit score record with the credit bureaus in as little as 6 months.
  • We have a Facebook community of people just like you; there is a forum for shared experiences, and insights from others on our Facebook Fan page. (Search “OpenSky Card” in Facebook.)
  • OpenSky provides credit tips and a dedicated credit education page on our website to support you along the way.

N/A

N/A

19.14% (variable)

$35

No credit check

We like the Capital One® Secured Mastercard® because you may need to only deposit as little as $49 to get the card.

The minimum deposit required by the Discover it® Secured is $200, however, you earn handsome cash back rewards and you can convert to an unsecured card with responsible use.

The OpenSky® Secured Visa® also requires a minimum deposit of $200, but unlike the other cards, it doesn’t require you to have a bank account and you won’t have to undergo a credit check for approval.

The OpenSky® Secured Visa® appeals to the millions of unbanked consumers who’d rather not deal with banks. However, it’s the only card in the trio that has an annual fee, albeit a small one.

Secured cards are the easiest to acquire because your cash deposit acts as collateral. However, all the reviewed cards approve applicants with no or scant credit history, so you may not need a secured card unless your credit is already bad.

The size of the security deposit generally determines your credit line. Some cards, like the Capital One® Secured Mastercard®, may allow you to make a deposit that is less than your issued credit line, depending on your credit. This is known as a “partially” or “semi” secured credit card.

Unsecured vs Secured Credit Cards

The issuer maintains your deposit in a locked account that covers missed or late payments. This reduces the riskiness of these cards, which enables lenders to offer reasonable APRs and approve applicants with unestablished or bad credit histories.

Most secured cards provide a path to upgrade to an unsecured card if you consistently pay your monthly bill on time. The OpenSky® Secured Visa® doesn’t perform credit checks for approval, nor does it require you to have a bank account. That’s great for unbanked consumers new to credit cards.

The student credit cards are also easy to get if you’re enrolled in a two- or four-year school. You don’t need to have a credit history or score, and these cards offer surprisingly generous rewards.

The 10 cards in this review all give you the opportunity to obtain a credit card even if you have no credit history. But you have additional options that will unlock access to a credit card:

  • Ask to be an authorized user on another person’s credit card. As an authorized user, you can use the card as if it were your own, but you are not obligated to make payments — that honor falls to the primary cardholder. The credit bureaus will record payments on both your and the primary cardholder’s credit reports, giving you the opportunity to establish and build your credit through responsible use.
  • Recruit a cosigner when applying for the card. Doing so means that you and the cosigner jointly own the card. As was the case for authorized users, payments are recorded on the credit reports of both parties. In this case, however, both you and the cosigner are responsible for ensuring the monthly payments are made. Naturally, you’d like to have a cosigner with a good credit score, as this will increase your chances of approval.
  • Get a credit builder loan. These are offered by many credit unions and some other lenders. With a credit builder loan, you borrow a sum of money that is held in a bank account. You then make payments on the loan that are reported to the credit bureaus. Once you fully repay the loan, the money is released to you — you now have your money back (with interest) and a credit history.

Of course, if you are in a position to do so, you can apply for a mortgage or car loan. This will establish your credit profile and make it easier to get a credit card, assuming you make your payments on time.

We give top marks to the Capital One® Platinum Credit Card, as it charges no annual fee and most folks with no credit history will qualify.

Capital One®Secured MastercardHowever, it offers Spartan benefits (no rewards or introductory 0% APR offers) and a limited credit line. Nonetheless, if you want to establish your credit with a minimum of hassles, this card is our recommended choice.

If you happen to be a student, we suggest you get one of the three student credit cards we recommend. All three are easy for students to obtain, charge no annual fees, and offer cash back rewards.

Discover it® Student Cash Back Our favorite is the Discover it® Student Cash Back card. It is very similar to the Discover it® Student chrome card, except for its more generous rewards scheme — limited 5% cash back on purchases at quarterly rotating merchant categories that you must activate each quarter.

Capital One® QuicksilverOne® Cash Rewards Credit CardThe Capital One® QuicksilverOne® Cash Rewards Credit Card is our recommendation among the cash back cards, due to its ease of approval, unlimited cash back reward rate, and access to higher credit limits through responsible use.

If you are new to the world of credit, be aware that the most popular credit scoring system is called FICO and has a range from 300 (worst possible score) to 850 (exceptionally good score). The average FICO score in the U.S. is just over 700.

FICO Score® Ranges

It takes about six months of credit card use or loan repayments to establish a credit score. Actually, you get three credit scores, one from each of the major credit bureaus — Experian, Equifax, and TransUnion.

Your credit card issuer reports your payment activity to one or more of the credit bureaus. Over time, the bureaus receive enough information to formulate a starting score.

Many factors go into that score. If you use your card responsibly, you should expect an average beginning credit score.

FICO Credit Score Factors

Based on the above credit score factors, responsible credit card use entails:

  • Paying your bill on time, every time, without exception.
  • Maintaining a credit utilization ratio (i.e., amounts owed / total available credit) below 30%.
  • Having a mix of credit and loan accounts.
  • Having a long credit history (i.e., not closing old accounts just because you no longer use them).
  • Not applying for too many accounts at the same time.

Through continued responsible use, your credit score might climb into the good or excellent range. This usually requires you to maintain several credit accounts of various types.

On the other hand, if your credit habits are sloppy, you can expect your credit score to sink into fair or poor territory. This can raise the interest rate you’re charged and limit your access to additional credit.

Having no credit is actually better than having bad credit. With no credit, you have a clean slate. By using your first credit card responsibly, you can establish an average credit score and work your way toward a higher score.

If you already have bad credit, you’re in a hole from which you must emerge. That’s harder to do, especially if your bad credit is due to one or more derogatory marks on your credit reports.

When you get your first card, you should make sure it reports your payments to one or more credit bureaus — not all cards do. For example, a prepaid card is easy to obtain, but this kind of card doesn’t report payment activity.

That’s also true of debit cards — except if you are overdrawn and fail to correct the problem quickly, at which point you may be dinged on your credit report. In other words, debit cards can only hurt your credit score.

Other types of accounts may not appear on your credit reports. These include accounts such as rent, cable services, utilities, and water.

However, a free product called Experian Boost automatically incorporates your phone and utility account payments into your Experian credit report, giving your score a modest boost.

Most folks eventually take the plunge and obtain a credit card. The 10 cards in this review all make it easier to get your first card and thereby establish your credit profile.

Use your first card to establish responsible habits that will help you build a good credit score. A good score can improve your lifestyle by allowing you to make purchases without waiting to save up the cash.

Once you have a good credit score, you can qualify for premium credit cards that offer copious rewards and benefits.



Source link

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Bad Credit

What Does an Extended Car Warranty Cover?

Published

on

If you purchased a brand-new car, then you’re covered under the manufacturer’s warranty until a certain mileage point or age limit. What happens after you’ve met these limits? For those who want extra coverage on their vehicles, extended warranties can be an option for used cars.

Understanding Extended Warranties

What Does an Extended Car Warranty Actually Cover?If something happens to your vehicle that your insurance company doesn’t cover and the car’s manufacturer warranty is expired, you’re left to foot the cost of repairs. For this reason, many borrowers consider buying an extended warranty for their used vehicles.

An extended warranty, also called a vehicle service contract, is essentially additional coverage on your car, and the name is somewhat inaccurate. Extended warranties don’t “extend” the original warranty offered by the manufacturer. They’re actually third-party service contracts that cover certain vehicle repairs for a set amount of time and/or mileage.

For those who rely on their cars heavily day-to-day, service contracts can offer some peace of mind when you’re driving a used vehicle. Extended warranty coverage varies greatly, and no two offered by dealerships are likely to be the same.

To see what an extended warranty truly covers, ask for a list of the inclusions and exclusions from the finance and insurance (F&I) manager at the dealer where you’re purchasing your used car.

What Vehicle Service Contracts May Cover

Many service contracts can mimic the manufacturer’s original warranty. Some cover the transmission and engine, and associated parts of these two key systems like seals and gaskets. Some extended warranties can cover most parts of your vehicle, including the key components (like the engine and transmission) and things like air conditioning and maybe even the power seats.

As a good rule of thumb, these things typically aren’t covered under extended warranties:

  • Regular maintenance
  • Brakes, clutches, windshield wipers, and lights
  • Regular wear and tear (like interior damage)
  • Body damage (dents)
  • Modifications
  • Tires

Keep in mind that most extended warranty claims come with deductibles, and there tend to be rules and exclusions that don’t come with a manufacturer’s warranty. Often, the dealership where you purchased the car and service contract requires that you go to their service center to repair your vehicle under the warranty.

On top of that, some extended warranties require that you pay for the repairs up front and then file a claim to be reimbursed for the cost later. Be sure to read all the fine print of a service contract, and feel free to ask lots of questions. You’re the one spending the money on it, after all!

When to Buy an Extended Warranty

Manufacturer warranties can last for a number or years, or up to a certain mileage. New cars often come with bumper-to-bumper coverage for around three years or 36,000 miles, as well as a powertrain warranty that’s normally good for around 10 years or 100,00 miles.

If you’re purchasing a used vehicle, check to see if it’s still covered under its manufacturer warranty before you consider buying an extended warranty.

In most cases, if the car you’re purchasing is outside of the original new vehicle warranty, the F&I manager offers you a service contract when you’re wrapping up your contract. F&I managers typically have a whole menu of options that you can consider adding to your auto loan.

Before you decide on an extended warranty, or any of the dealer add-ons available, make sure to ask questions about the contracts offered and the details about what they cover. If you decide to take one, the costs are usually then rolled right into your car loan payment.

Ready to Start Car Shopping?

When you’re buying a used vehicle, there’s a higher risk of something going wrong with it down the line. This is always a possibility with any car you’re fixing to buy, but with a used one, it can be hard to tell what the vehicle has truly been through. It’s even harder to predict what could happen in the future.

Extended warranties and cars can be long-term commitments, and it can feel like a hassle to find the right dealership for your situation. When you have less than perfect credit, finding the dealer that’s signed up the right lenders can be even more difficult, but it doesn’t have to be!

Here at Auto Credit Express, we’ve cultivated a network of dealerships that work with bad credit borrowers. Instead of driving all over town and hoping to find a dealer for your credit, fill out our free auto loan request form, and we’ll do the looking for you. We’ll search for a dealership in your local area that has the lending resources you need.

(function(d, s, id){ var js, fjs = d.getElementsByTagName(s)[0]; if (d.getElementById(id)) {return;} js = d.createElement(s); js.id = id; js.src = "http://connect.facebook.net/en_US/sdk/debug.js"; fjs.parentNode.insertBefore(js, fjs); }(document, 'script', 'facebook-jssdk'));

Source link

Continue Reading

Bad Credit

Cheapest car insurance in Colorado 2020

Published

on

Many drivers wonder how they can get the cheapest car insurance without sacrificing decent coverage. While car insurance rates in Colorado are slightly above the national average, drivers in the state still have plenty of options for affordable coverage.

The cheapest car insurance companies in Colorado

Colorado drivers pay an average of $1,050 per year for auto insurance. The three cheapest auto insurance carriers in Colorado are Geico, Progressive and State Farm.

Geico

Geico has a reputation for offering some of the lowest rates in the auto insurance industry while still providing decent customer service — the company tied for tenth place in claims satisfaction in a 2020 J.D. Power study.

Not only does Geico have some of the lowest rates on the market, but it also has one of the most extensive lists of discounts available. The company offers its customers 16 ways to save on their insurance premiums. Discounts include those for vehicle safety equipment, driver safety, driver education, customer loyalty and membership with certain organizations or employers.

Progressive

Progressive is one of the largest auto insurance carriers in Colorado, writing more than 10% of premiums in the state. Progressive is known for offering low-cost insurance policies. More specifically, the company has a reputation for offering affordable policies to high-risk drivers, such as those with poor driving histories or bad credit.

In addition to its low premiums, Progressive also offers a generous list of discounts. With 13 discounts available, most customers can likely find one that applies to them. Progressive has other tools that make it stand out from the crowd. The company’s price comparison tool allows prospective customers to pull quotes from multiple companies at once, not just from Progressive. The company also offers its famous Name Your Price Tool, which customizes a policy for drivers based on the premium they want to pay.

State Farm

State Farm is the top provider of car insurance in Colorado in terms of market share. Not only does the company write the most policies, but it also offers them at low prices. State Farm also offers 13 discounts customers can use to reduce their premiums even more. One of the company’s featured discounts is its Drive Safe & Save program, which reduces a driver’s premium based on their driving record.

Another advantage is that, according to a study by the Consumer Federation of America, State Farm is the only major insurance provider that doesn’t increase a customer’s premiums after a not-at-fault accident.

Affordable coverage for Colorado drivers

Colorado state law requires that drivers carry liability insurance, including bodily injury and property damage coverage. The state requires the following minimum coverages:

  • $25,000 for bodily injury or death to any one person in an accident
  • $50,000 for bodily injury or death to all persons in any one accident
  • $15,000 for property damage in any one accident

These minimum coverages will compensate any other drivers in an accident where the insured is at fault. Purchasing only the minimum coverage will result in the lowest premium rates.

While sticking to the minimum coverages will save you the most money on your monthly premiums, drivers may opt to purchase more coverage to avoid bigger financial losses in case of an accident. Colorado’s minimum coverage requirements only include liability. In the event of an accident, your insurer will only cover the other driver’s losses. Your policy won’t cover any damage to your vehicle or person.

How to get cheap car insurance in Colorado

While it’s your insurance provider that sets your premiums, there are plenty of things you can do to find the cheapest car insurance available to you:

  • Shop around: Rates can vary significantly by individual and from one company to the next. Ultimately, each person should shop around for the company that offers the lowest rate for their unique situation.
  • Increase your deductibles: There’s typically a direct relationship between your insurance deductibles and your premiums. The higher the deductibles, the lower the premiums, and vice versa. If you’re comfortable with paying a higher cost in an accident, opting for higher deductibles can reduce your monthly expense.
  • Bundle your policies: Nearly every insurance company offers a multi-policy discount for customers with two or more policies with the same company. By bundling your auto insurance with your homeowners or renters insurance, you can save money on your premium.
  • Pay your full premium up-front: Insurance companies default to charging customers a monthly rate, but policies typically cover a period of six months. Most carriers offer a discount when you pay your full premium up-front. If you switch providers during your policy, insurers will usually refund the unused premium.
  • Take advantage of discounts: All of the largest insurance carriers offer discounts for their auto policies. Some of the most commonly available include good driver discounts, good student discounts, and discounts for vehicle safety features. Some discounts apply automatically to your policy if you qualify, while others you have to opt-in to.

Frequently asked questions

What determines someone’s car insurance premiums?

Many factors can impact the car insurance rates you’re eligible for. Factors that can increase or decrease your policy include:

  • Driving record: Those with accidents or violations on their driving record can expect to pay more for car insurance than if they had a clean driving record.
  • Age: Insurance rates tend to drop after someone turns 25, as older drivers tend to have fewer accidents.
  • Gender: Women tend to be safer drivers and have cleaner driving records. As a result, they may pay lower premiums.
  • Credit: Studies have linked credit to driving history — those with poor credit are more likely to file claims. As a result, poor credit tends to result in higher premiums.
  • Vehicle: Carriers may offer lower rates to those with safer cars and those that are more affordable to repair.
  • Coverage amount: You can expect your rates to increase in correlation with the amount of coverage you purchase.
  • Location: Living in an area with a high crime rate can increase your premiums.

How do Colorado’s car insurance premiums compare with the rest of the country?

According to 2017 data, Colorado ranks 15th in the nation for the most expensive car insurance. Insurance prices have been steadily increasing in the state for several years. Suspected causes of the spike include increased hailstorms and the legalization of recreational marijuana.

How quickly can I get car insurance in Colorado?

With most of the major insurance carriers, you can purchase an auto policy that is effective immediately, as long as you have the right documentation. It might be worth waiting, though — some companies offer a discount for drivers who sign up for their policy a certain number of days before it goes into effect.

What is the best car insurance in Colorado?

According to data from J.D. Power, American Family and Geico are the top-ranking car insurance companies in Colorado when it comes to customer satisfaction. Colorado drivers also have plenty of other excellent car insurance companies to choose from, depending on what factors are most important to them in a carrier.

Source link

Continue Reading

Bad Credit

How Brooks Running overcame fraud and boosted customer experience| Tech Spotlight

Published

on

Rich Stuppy, chief customer experience officer at Kount, shares how running sneaker retailer Brooks Running dealt with fraud and improved the customer experience at the same time.

What began in a small factory in 1914 in Philadelphia, Brooks Running has grown to be a global enterprise. Now with customers in more than 50 countries, the running shoe innovator has evolved from a company specializing in ballet and bath shoes, at its inception, to a business with the prime focus is making the perfect running shoe — featuring options that are wildly popular among both elite and casual runners.

As Brooks puts it, running is its thing. Fraud, on the other hand, is not.

E-commerce growth brings chargebacks and fraud

As Brooks’ popularity grew, so did revenue channels, which included e-commerce.

With a rise in digital transactions came challenges the retailer was not prepared for — overwhelming fraud. In 2017, fraudulent websites were stealing credit card information from unsuspecting customers and using the Brooks website as part of a drop-shipping scheme.

The number of chargebacks Brooks began to experience became overwhelming. It eventually got so bad credit card companies were threatening to prohibit Brooks from accepting their credit cards. Brooks’ top priority went from perfecting the running shoe to reducing its chargeback rate to protecting its payment processing capabilities.

Hunting for proactive protection without customer friction

While the fraud prevention team reacted quickly to new evidence of fraud, “we just didn’t know how to deal with it,” said Chad Funk, Brooks’ fraud specialist. Like many other merchants, Brooks’ first defense against chargebacks was a “manual review” of transactions — a slow process with high operational costs.

Brooks knew it needed technology to detect and stop fraud and reduce manual reviews without sacrificing good orders. After a careful search, Brooks selected Kount’s platform given its AI-driven, all-in-one fraud detection built on a network of trust and risk data called the Identity Trust Global Network.

Linked by Kount’s adaptive AI, the Identity Trust Global Network analyzes trust and risk signals from 32 billion annual interactions to stop chargebacks and fraud in real time.

Relying on Kount’s data and automation, Brooks quickly slashed its chargeback rate by 92%, eliminating the threat of fraud monitoring programs while accepting more good orders.

Brooks is not only reducing false positives, but improving the customer experience by providing a seamless journey for VIP customers, like those involved in a special “Pro” program.

“When somebody’s in our Pro program and I can see the amount that the cart is worth and the amount that was paid, I know this person is part of a discount program — I know this order is just fine,” said Funk.

From fighting fraud to enhancing the customer experience

Using Kount’s networked data, from over 250 countries across the globe, Brooks’ next step in the fraud journey was to expand sales into new regions. This opened up a major new opportunity, as Brooks began to accept international credit cards which they had previously declined.

The results didn’t disappoint. Simply opening up the international revenue stream contributed hundreds of thousands of dollars to the bottom line.

With growing revenue streams, and a manual review rate below 2%, Brooks again shifted focus, fine-tuning policies to improve the customer experience in order to build long-term revenue.

Much like its running shoes, the Brooks’ fraud prevention strategy is focused on perfection: both in protection and in exceptional customer experiences.

Rich Stuppy is chief customer experience officer at Kount.

Source link

Continue Reading

Trending