Archive for November, 2008

On October 31,  Prosper hosted its annual Halloween party – a tradition that is now in its third year. While we would love to share all the costumes, we just don’t have the room, but suffice to say the creativity that exuded from the team was astounding. We had a wide range of ideas – and impressively most were home made. Costumes ranged from a computer, Hello Dolly, a sea horse, and a Tully’s barista to Hanna Montana (from a gentleman). And of course there were the obligatory fluffy animals and witches… And we all brought food – lots of it.
We hope you all had as much fun as we did.

A lot happened on November 4th. The people voted and we elected a new President. Today, November 5th while America is rejoicing in the end of a very long election process,  the Brits are celebrating another year of their beautiful Houses of Parliament, democracy and religious freedom.

November 5th is a wonderful night in England – it’s called Bonfire Night. The story behind Bonfire Night begins with Guy Fawkes. He was a member of a group of Catholic revolutionaries who tried to assassinate King James 1 of England and Scotland by blowing up the Houses of Parliament during the state opening in 1605. The conspiracy was discovered and the plot, later known as the Gunpowder Plot, failed.

Guy Fawkes was an explosives expert and had a military background. All the conspirators were tried in 1606 and in true British manner were hanged, drawn and quartered. Fawkes, however, managed to free himself and jumped from the gallows, broke his neck and died, depriving the onlookers of the gruesome death they had so wanted to watch.

An Act of Parliament was passed to appoint November 5th as a day of thanksgiving. It is now a custom in England to set off fireworks, and have large bonfires with effigies of Fawkes put atop the bonfire and burned.

We are now in a time of change and of hope in America. Our new President elect has enormous challenges ahead of him – with the economy on top of his long list. We all wish him luck.

Today, as we celebrate a new era of democracy in this country and give thanks for those who have worked so hard through this election process, it is of interest to consider the impact of the Gunpowder Plot in England, and England’s celebration of their own democracy and freedom.

Over one billion dollars was spent on this election. Plenty of money was spent on television, radio, and of course online advertising. And even with the high price tag, the commercials were unmemorable, and most disturbingly often distorted and then later refuted or explained. Was this a tactic? The damaging remark, and then the retort – oh no we did not really mean that. 

I have never liked advertising that denigrates the competitors – instead focus on the unique selling propositions of your own product. The same can be said for the candidates – all of them – not just the Presidential candidates. Focus on the issues, the distinguishing features that make you stand out from the crowd. And please make the spots interesting, engaging and relevant.

What is truly interesting  is that, even with all of the money spent on advertising, perhaps some of the most memorable moments were thanks to Saturday Night Live. Watching, then watching again and forwarding to your friends through YouTube. Those priceless Tina Fey (aka Sarah Palin) vignettes, Amy Poehler doing her rap piece for Governor Palin and the other members of the crew so expertly mimicking Tom Brokaw, Charlie Gibson, Katie Couric, Senator Obama, Senator McCain and so on.

I would imagine Fred Armisen has a pretty steady job for the next four years playing Senator Obama. Thank you Seth Meyers for keep us laughing in these tough times.

After being bombarded by negative advertising, and swimming in political commentary, I believe we are all ready to return to normalcy. Some of us may even be missing the type of advertising that we found dull or mundane before this election mayhem. I don’t live in Ohio, Indiana, Pennsylvania or any other battleground state, but I would imagine they are ready to return to a world where the most controversial commercials involved the mac vs. pc debate, and the biggest choice touted on TV centered around which air freshener to choose.

In anticipation of the downturn in the economy, many credit card companies are reducing credit lines, denying more credit card applications, and increasing interest rates. For example, in the coming weeks America Express is raising interest rates 2-3 point in anticipation of higher charge-off in a bad economy. At Credit Karma, where we monitor over 130 credit cards, we are seeing similar actions from other major credit card issuers.

As a consumer, you should be careful of all these actions since they can impact you in several ways. Reduced credit lines will increase your credit card utilization lowering your credit score if you carry a balance, a denial for credit results in a hard inquiry also reducing your credit score, and higher interest rates could cost you thousands of dollars in the long run.

With all the potential negative effects, here are a few tips to protect both your credit and your financial options.

1. Have More than One Credit Card: A healthy credit score has 3-6 credit card trade lines. By keeping more than one card, you have the option of using the cards with better terms should any credit card decide to your raise rates or fees.

2. Keep Your Utilization Low: Along with having 3-6 credit cards, a health credit score means not using it all and being responsible. The rule of thumb is to keep utilization below 35% on a single card to maintain a good score.

3. Avoid Risky Credit Card Behavior: Credit card issuers look for signs of financial trouble from their users. Going over your limit, cash advances, abnormal balances can all be warning signs for credit cards and lead to lower credit limits or higher interest rates.

4. Negotiate Better Terms: Sometimes a simple call can save you hundreds of dollars in fees or interest rates. Many issuers have retention plans and lower rates available to customers who are thinking of closing their accounts. Keeping with tip #1, you need to have options before you can threaten to cancel.

In today’s economic environment, credit card companies are more cautious, you should be equally dilligent. Stay informed and keep your options financial options open.

Credit Karma has over 130 credit cards reviews broken out by credit requirements and reviews from users like you if you need some help choosing a card.