AskDong

I normally wouldn’t write about how having bad credit might have some perks, but I found this rather amusing. According the to rant from a VC, AT&T will allow you have a prepaid phone plan with the iPhone and therefore no contract.  However if your credit is too good, AT&T forces you onto a 2 year contract with the iPhone.

While I haven’t tried this myself, I imagine one could circumvent the system by putting the iPhone under the name of a minor.  I imagine most minors, given that they don’t have a credit history have poor credit. I could easily imagine someone signing up for the iPhone under his or her child’s name and social security number to avoid the otherwise mandatory 2 year contract.  Or if you want to avoid using your child’s social security number you can follow this guy’s advice. Using a bogus social security number might seem a little morally ambiguous, but given you’re basically guaranteeing AT&T payment, it’s hard to say how exactly other than a bit of dishonesty.

At home I have WiFi via a broadband connection. It serves me quite reliably, but occasionally I do have some problems. Also when traveling, I’m not guaranteed an internet connection. About 9 months ago, I lost my connection at home for an extended time period (1 week), and realized how lost I was without Internet access. I have no idea when movies are playing. I don’t own any maps. If I didn’t have my cell phone, I would be hard pressed to know how to contact anyone. I’ve become quite Internet dependent in the last 5 years starting when I first got broadband.

Given how I learned how critical internet access is for me, I now always have a backup. I use my mobile phone as modem, and all it took was a $3 cable (plus shipping) from eBay. Some mobile phone carriers allow access to a data network via a connected device without any additional fees besides the use of minutes (which can be free during off peak hours). Other carriers if you subscribe to the data plan allow you access to the network as well via computer.

I use Verizon, and can connect to their Express Network using only my minutes. I believe the following carriers offer free (minutes only) access to the data network

• Verizon
• T-Mobile

These other providers allow you to use your phone as modem but only if you subscribe to one of their data plans.

• Verizon
• Sprint
• Cingular

You’ll notice I’ve listed Verizon under both provider categories. This is because it’s possible to access the slower Express Network (1XRTT) network using minutes only, but if you want access to higher EVDO network, you have to have a data plan and the right phone. I’ve been using the slower network for the last 9 months without much of hitch on both my PC and Mac without much of problem. It’s all my understanding some customers who have been with Verizon for a long time may not be provisioned the Express Network MOU (minutes only use) and would need to call Verizon to get it provisioned before it works. Personally, I didn’t have any problems with either my PC or my Mac. The only difficulty on the Mac was locating the USB driver for my phone.  I was lucky on my PC that I was able to download the Verizon Mobile Office Package which came with drivers.   If you decide to connect via the standard windows software, you’ll have to locate USB drivers as well.

Smartdevice central also publishes a guide with Mac users in mind.   I pulled most of the “How Tos” that I’ve linked to from SmartDevice Central. 

Just as I broke the mythical 800 barrier in my credit score, I’m doing it again. Yep, I signed up for another credit card. I can’t help it, when a credit card company offers to give me a sizeable chunk of money, I stick my hand out and take it. Though this time, I feel a bit dirty about the matter. My Money Blog highlighted a promotion Bank of America is running for University of Iowa Branded credit card. If you’ve read my about page, you know that I didn’t attend the University of Iowa, and hence the dirty feeling I have for applying for the car. However given that the application doesn’t actually ask if I attended the University of Iowa, I assume that anyone can apply. Still if feels a little dishonest.

The only requirement I believe to recieve the 25,000 WorldPoints is to spend $300 on the card. Given that I can easily spend $300 on credit card, it’s basically free money. The 25,000 WorldPoints is reedemable for a flight within the U.S. or a 250 check. I’ll opt for the check given that I have no trips planned in the next 6 months. I expect to recieve the credit card in the next week, and then hopefully recieve my bonus in the next 3 months.

As some of my readers know, I’m a big fan of my Citibank account.  I like the following features:

1. Free Bill Bay
2. Worldwide ATM Branches
3. Line of Credit Overdraft protection
4. Competitive Interest Rate on Savings

On that last part, Citibank has gone a little crazy with different offerings.  They now offer to the best of my awareness 5 different savings/money market accounts:

1. day-to-day-savings: .7%
2. insured money market: N/A
3. e-Savings: 4.5%
4. Ultimate Savings Account: 4.65%
5. Ultimate Money Market Account: 5.0%*

*The Ultimate Money Market Account requires that you make two bill pays a month or the rate drops to lower 4.5% rate.

I started off with the basic EZ Checking account with the day to day savings.  Later I added the insured money market account.  After that I added the e-savings which at the time was yielding a 5% introductory rate.  I just added the Ultimate Savings account today and will probably add the Ulimate Money Market account later.  I would gripe more about all different accounts if Citibank didn’t make it so easy for existing customers to sign up.  Pretty much -  you login, and click through a couple screens and the new account shows up.  Doesn’t get much easier than that.  If you’re not currenty a citibank deposit account holder, you’re also eligble for $50 sign up promotion on the Ultimate Money Market, and $100 on the Ultimate Savings.  Bankdeals.com is also posting that Citibank is offering $200 promotion for signing up for the EZ Checking account.  There’s only a promotion code for that, so read through Bankdeals’ post on the matter if you’re interested in signing up.  Again I think if you’re looking for a primary bank account, Citibank offers a good product.

I for for one think Citibank should take a page out of the Steve Jobs’ book, and simplify.  Even though I have zero balances in most of the saving flavors, I don’t like looking at them on my account screen.

American Express has recently partnered with American Home Mortgage to allow mortgage holders to pay their mortgage by Credit Card.  Most mortgage companies do not allow this for very good reasons. 1) The transaction charge which are usually between 1-3% that credit card companies apply takes a significant bite out profits 2) making it easier for mortgage holders to incur even more debt is a risky proposition.

For many people who play the credit card rewards game being able to pay the mortgage by credit card has always been the holy grail of reward points.  I’ve personally always wanted to this, and will definitely look into the offer if my lender ever becomes a partner in the program.  The one caveat is that enrolling in the program costs $395 which would take a big cut out of any potential profits in the first year.  For example, Amex Blue Cash pays back .5% for the first 6500, and 1.5% for every dollar thereafter.  Assuming a flow-through of 25,000 which I would think would be pretty typical for someone paying his or her mortgage that’s $310 in profit.   In the 1st year the enrollment fee takes everything and then some.

According to American Express, they will carefully screen potential applicants to make sure they are suitable for the program.  They don’t want to be saddled by deadbeats who want to avoid defaulting on their mortgage by defaulting on their credit card.  At the same time AHM ideally wants to transfer this type of risk to American Express, so I’m curious how they’ve decided the terms.  Given that AHM is likely to take a hit on the transaction charge, it’s unclear what incentive they have other than guaranteeing payment on borrowers who would otherwise might miss payments? For AHM it looks like a good marketing move, but little else.  Given that American Express is planning on partnering with other lenders, it remains to be seen how effective this marketing will be in the long run.  Full disclosure: I own shares of AHM in my IRA Accounts.

Given the high enrollment fee, the profits from the transaction charges, and the ability to screen risk, American Express should make out pretty well in this.  And really the enrollment fee is the kicker given that with every new mortgage you would have to enroll again.  It’s my opinion that people always underestimate how often they move and/or refinance. However if you’re smart consumer who really understands your mortgage, this could be a great opportunity to earn some mondo rewards.