Traditional lenders, like banks, are often the first loan source that come to mind, but in fact, there are a variety of alternative loan sources available. Private lenders provide options that can be more affordable and more effective than established institutions can come up with. So, when it comes to unsecured loans for those with bad credit, they are well worth considering.
Of course, as with all loans, securing approval from private lenders requires certain qualifications, though these can vary dramatically depending on which alternative lender is approached. What is certain is that approval is more likely to be given, even to bad credit borrowers.
The only thing that really matters is that the borrower has an ability to repay the unsecured loan granted. We provide a few examples of the best alternative loan sources out there, and how they can benefit your search for funds.
The Family Loan
This is arguably the most affordable option, as there is often no interest charged on a loan secured from a family member, or perhaps close friend. But the biggest advantage is that approval is guaranteed, making it ideal as an option for unsecured loans for those with bad credit.
There are only two conditions to this kind of deal. Firstly, the borrower needs to have a close family connection. And secondly, the family member has to have the sum requested to hand it over. But as the chances of approval from private lenders go, this is arguably the best option.
What is more, the pressure to repay the unsecured loan is much less from a family member than a lending institution that is trying to turn a profit. And, if there is any problem with the repayment schedule, a new one is easily negotiated. Also, to ensure clarity relating to the terms, write them down and have both parties to sign them.
The Company Loan
Another worthwhile alternative to a bank is your own employer. This might seem strange, but some companies are willing to grant loans, such as unsecured loan, for those with bad credit. The reason? It is a safe investment from the employer viewpoint.
Since the employer is the source of both the income and the loan, they can simply deduct the monthly repayment from each paycheck. This means that repayments are never missed. So, in terms of getting approval from private lenders, this option is pretty much guaranteed.
Keep in mind that employers often charge a small interest rate, allowing them to profit from the transaction - though, it is certainly lower than any bank would have charged. Also, like a family loan, getting an unsecured loan from your employer has no effect on your credit rating.
The Online Loan
Online lenders are one of the most popular alternative loan sources to traditional banks and credit unions. However, a private lender is not an online firm, but the relatively new phenomenon known as the loan bidding site. It is a prime source of unsecured loans for those with bad credit.
Basically, when someone is in need of a loan, they post a loan proposal on a website. Members of the site bid for the chance to part-finance the funds, and earn back a little through interest payments. When the borrower spots the bids that suit them best, they can accept the lenders and secure the funds.
Effectively, this system means that approval from private lenders is not needed. Instead, approval is provided by the borrower. There are conditions to meet too, such as providing information on income and credit history. These can be checked out by prospective lenders before they bid. But an unsecured loan can be attained quickly and affordably.
Wednesday, May 9, 2012
Tuesday, May 8, 2012
Using Your Credit Card Responsibly: 5 Tips For Beginners
Credit cards are so popular nowadays and it's not hard to see why. They are safe to use on the Internet and they make life a little easier while we are waiting for payday to come around. However, using a credit card is can be financially dangerous if you don't know what you are doing. Here are 5 tips for beginner credit card users to help you use your card responsibly and avoid getting into debt.
1) Budgeting
Understand the importance of sticking to a reasonable budget. Yes, it's tempting to decide that you can over-spend this month and under-spend next month to make up for it. But this is a dangerous trap to fall into. Make sure your budget is something you can afford to pay off every month. You should think of your credit card the same as you would think of cash; you cannot spend more than you have available.
A great way to keep track of how much you are spending is to link you credit card up with your cell phone; you will receive text messages informing you of your usage.
2) Monthly Payments
When you receive your statement each month, it is so easy to be tempted by the minimum payment option. This states a small amount that you must pay off each month and the rest will roll-over until next month. Do not get sucked in to this. Always pay the full amount on time every month. By sticking to the minimum payment option, you are putting yourself in a dangerous position of allowing debt to accumulate, and interest rates will begin to increase.
Your statement will inform you of your payment due date. If you don't pay on time, you will be charged with a late payment fee. This is how credit card companies make their money.
3) Internet Banking
Nowadays, credit cards come with the option of Internet banking. This is an excellent and free way to make sure you aren't over-spending because you can log in and check your usage anytime. Additionally, by linking your credit card with your bank account, you can use Internet banking to pay off your credit card fees from the comfort of your own home. Paying in cash at the bank usually comes with a small charge, whilst banking online is free. If you are sick or busy, you don't have to go to the bank; you can simply log on and make the transfer.
4) Credit Rating Awareness
Every time you use your card, be aware that you are building a credit rating, which will come in handy later in life when you are looking to mortgage a house or get a loan. Missed payments, late payments, and accumulation of debt will all damage your credit score and will be visible on your credit report. Often, a bad credit rating means that you will be rejected for a loan or mortgage, or offered it at high interest rates. On the other hand, if you consistently pay in full every month and stick to a reasonable budget, you will be building a positive credit rating that will support your applications for a mortgage at a low interest rate.
5) Cash Advances
You might think it is harmless to use your credit card to withdraw cash from an ATM. However, this is considered a cash advance, which is subject to much higher interest rates than other transactions. Plus, you will be charged a transaction fee for such usage. Unlike other transactions, there is no safe period in which you are free from repayments until a certain date each month; instead, the interest on cash advances begins to accumulate immediately and continues to build until you have made the repayment. Cash advances are designed for emergency use only.
Having a credit card can be a very positive thing if you use it correctly. Having a good credit rating can become invaluable later in life. However, it is so easy to slip into bad credit habits, such as opting for minimum payments, paying late, using cash advances, and over-spending. Constantly be aware the money you spend is not free; you are responsible for paying off anything you spend by a certain date each month.
1) Budgeting
Understand the importance of sticking to a reasonable budget. Yes, it's tempting to decide that you can over-spend this month and under-spend next month to make up for it. But this is a dangerous trap to fall into. Make sure your budget is something you can afford to pay off every month. You should think of your credit card the same as you would think of cash; you cannot spend more than you have available.
A great way to keep track of how much you are spending is to link you credit card up with your cell phone; you will receive text messages informing you of your usage.
2) Monthly Payments
When you receive your statement each month, it is so easy to be tempted by the minimum payment option. This states a small amount that you must pay off each month and the rest will roll-over until next month. Do not get sucked in to this. Always pay the full amount on time every month. By sticking to the minimum payment option, you are putting yourself in a dangerous position of allowing debt to accumulate, and interest rates will begin to increase.
Your statement will inform you of your payment due date. If you don't pay on time, you will be charged with a late payment fee. This is how credit card companies make their money.
3) Internet Banking
Nowadays, credit cards come with the option of Internet banking. This is an excellent and free way to make sure you aren't over-spending because you can log in and check your usage anytime. Additionally, by linking your credit card with your bank account, you can use Internet banking to pay off your credit card fees from the comfort of your own home. Paying in cash at the bank usually comes with a small charge, whilst banking online is free. If you are sick or busy, you don't have to go to the bank; you can simply log on and make the transfer.
4) Credit Rating Awareness
Every time you use your card, be aware that you are building a credit rating, which will come in handy later in life when you are looking to mortgage a house or get a loan. Missed payments, late payments, and accumulation of debt will all damage your credit score and will be visible on your credit report. Often, a bad credit rating means that you will be rejected for a loan or mortgage, or offered it at high interest rates. On the other hand, if you consistently pay in full every month and stick to a reasonable budget, you will be building a positive credit rating that will support your applications for a mortgage at a low interest rate.
5) Cash Advances
You might think it is harmless to use your credit card to withdraw cash from an ATM. However, this is considered a cash advance, which is subject to much higher interest rates than other transactions. Plus, you will be charged a transaction fee for such usage. Unlike other transactions, there is no safe period in which you are free from repayments until a certain date each month; instead, the interest on cash advances begins to accumulate immediately and continues to build until you have made the repayment. Cash advances are designed for emergency use only.
Having a credit card can be a very positive thing if you use it correctly. Having a good credit rating can become invaluable later in life. However, it is so easy to slip into bad credit habits, such as opting for minimum payments, paying late, using cash advances, and over-spending. Constantly be aware the money you spend is not free; you are responsible for paying off anything you spend by a certain date each month.
Monday, May 7, 2012
Top 5 Reasons To Invest In Property
People who make the right decision in investing money stand to earn high rewards for taking such a calculated risk. However, this decision should be made only after doing a thorough search on the various prospects in the diversified field of financial investment.
Investing in property is one of the surest ways to reap rich benefits out of your investment. Here are the top five reasons explaining why you should invest in property.
1. Property prices are always on the rise, and investing in a property which you can lease out, ensures an immediate return from your investment. This provides you with peace of mind and a sense of security. As the property appreciates, you can also earn more on the rent. In case you want to buy another property, you don't need to sell the existing one you have the option to release equity relating to the property and still retain your ownership.
2. Investing in property enables you to have direct control over the ownership and for rental purpose, you have the option to increase the rental income without having to consult others or take permission from anybody. This differs to shares, where the dividend is not in your hand. Investing in property also allows you to insure your property against any damage or loss of rental income. Buy-to-let investors are able to protect themselves from any financial loss arising out of any damage caused by tenants, through Landlord Insurance.
3. You do not need any expertise or vast experience when you invest in property. Every common person can do it, especially when there are so many sources to gather information about market trends which relate to your property. To make the most out of your investment in property, you can increase your return on your investment by buying a property which needs a thorough renovation. On bargaining, you will be able to purchase the property at a cheap price and after renovation work, you are able to sell off at a much higher price. This can cause you to earn more on your investment in property.
4. Investing in properties provides you with the advantage to use leverage by mortgaging the property and borrowing up to 80% of the property valuation. In the case of stocks, you will get a maximum of 50% on the value of the shares. You get a distinct advantage over other forms of investment, with no risk being taken. Fluctuations in the prices of properties are a slow process, where you find enough time to safeguard yourself from any downfall in the property value. Generally the cycle is slow, which makes properties less volatile in the market compared to shares which may have a steep downfall involving heavy losses.
5. The tangibility of a property is the main advantage of the investor, where the person is able to see and touch the property. Moreover, in the case of urgent requirements of money, the property can either be sold or mortgaged within a short time. In the case of shares, you will find it difficult to transfer your shares, especially when they are dipping. You are able to invest in properties according to your budget. If you have a big budget, you can go for premium properties which will give you higher returns within a short span of time. In the case of a small budget, you can choose from various categories of property. This is not the case in stocks, as there is a binding as to the minimum number of shares you have to buy. Investment in properties at residential places which are developing provides you with the advantage to reap rich benefits once the area is fully developed and the basic amenities are provided. You can also buy a property in such a place where there are future plans for providing large scale public utility services. In such cases, your property suddenly receives appreciation in valuation.
Investing in property is a wise move which involves minimum risk with possibilities of maximum returns. Select the right real estate agent to make your investment and gain high returns.
Investing in property is one of the surest ways to reap rich benefits out of your investment. Here are the top five reasons explaining why you should invest in property.
1. Property prices are always on the rise, and investing in a property which you can lease out, ensures an immediate return from your investment. This provides you with peace of mind and a sense of security. As the property appreciates, you can also earn more on the rent. In case you want to buy another property, you don't need to sell the existing one you have the option to release equity relating to the property and still retain your ownership.
2. Investing in property enables you to have direct control over the ownership and for rental purpose, you have the option to increase the rental income without having to consult others or take permission from anybody. This differs to shares, where the dividend is not in your hand. Investing in property also allows you to insure your property against any damage or loss of rental income. Buy-to-let investors are able to protect themselves from any financial loss arising out of any damage caused by tenants, through Landlord Insurance.
3. You do not need any expertise or vast experience when you invest in property. Every common person can do it, especially when there are so many sources to gather information about market trends which relate to your property. To make the most out of your investment in property, you can increase your return on your investment by buying a property which needs a thorough renovation. On bargaining, you will be able to purchase the property at a cheap price and after renovation work, you are able to sell off at a much higher price. This can cause you to earn more on your investment in property.
4. Investing in properties provides you with the advantage to use leverage by mortgaging the property and borrowing up to 80% of the property valuation. In the case of stocks, you will get a maximum of 50% on the value of the shares. You get a distinct advantage over other forms of investment, with no risk being taken. Fluctuations in the prices of properties are a slow process, where you find enough time to safeguard yourself from any downfall in the property value. Generally the cycle is slow, which makes properties less volatile in the market compared to shares which may have a steep downfall involving heavy losses.
5. The tangibility of a property is the main advantage of the investor, where the person is able to see and touch the property. Moreover, in the case of urgent requirements of money, the property can either be sold or mortgaged within a short time. In the case of shares, you will find it difficult to transfer your shares, especially when they are dipping. You are able to invest in properties according to your budget. If you have a big budget, you can go for premium properties which will give you higher returns within a short span of time. In the case of a small budget, you can choose from various categories of property. This is not the case in stocks, as there is a binding as to the minimum number of shares you have to buy. Investment in properties at residential places which are developing provides you with the advantage to reap rich benefits once the area is fully developed and the basic amenities are provided. You can also buy a property in such a place where there are future plans for providing large scale public utility services. In such cases, your property suddenly receives appreciation in valuation.
Investing in property is a wise move which involves minimum risk with possibilities of maximum returns. Select the right real estate agent to make your investment and gain high returns.
Saturday, May 5, 2012
Bad Credit Home Loan to bring your dream house to reality
At present almost all banks and financial institution provide loans for meeting the scattered needs of people. Loans have increased the standard of living of people. Among this, home loan plays an important role in lifting the standard of people. Most of the loan providers love to provide home loans for the people with good credit history.
There are several people who hold bad credit history note because of intentional acts but because of circumstances. They also need home loans to build or purchase their dream home. Increase in the number of people with bad credit history who need home loan inspired several banks and loan providers to introduce bad credit home loan. This loan helps the people with bad credit to reside in their dream house.
There are several banks and financial enterprises providing bad credit home loan and hence the interest rate and legal formalities vary from one to another. You have the freedom to select the loan provider as you wish. There are some factors to keep in mind while shopping for bad credit home loan. Generally interest rate of bad credit home loans is higher than that of standard home loans. Most of the loan providers love to provide bad credit loans because they get higher amount of interest and home itself as the security for the loan. Hence apply only for affordable loan amount. Have a look on the repayment amount and repayment period. In case of high loan amounts it is better to increase the repayment period and to decrease the repayment amount.
Don't forget that any pending and default in your repayment may further increase your interest rate and can put you in more trouble. Chances are lot to seize your house by the bank to pay of your loan amount. Hence make necessary steps before taking the bad credit home loan. Making use of the amount in your pocket to maximum and depending on the loan for the rest and searching a loan provider who provides bad credit home loan at least interest rates and flexible repayment modes are the best methods to enjoy a good bad credit home loan.
There are several people who hold bad credit history note because of intentional acts but because of circumstances. They also need home loans to build or purchase their dream home. Increase in the number of people with bad credit history who need home loan inspired several banks and loan providers to introduce bad credit home loan. This loan helps the people with bad credit to reside in their dream house.
There are several banks and financial enterprises providing bad credit home loan and hence the interest rate and legal formalities vary from one to another. You have the freedom to select the loan provider as you wish. There are some factors to keep in mind while shopping for bad credit home loan. Generally interest rate of bad credit home loans is higher than that of standard home loans. Most of the loan providers love to provide bad credit loans because they get higher amount of interest and home itself as the security for the loan. Hence apply only for affordable loan amount. Have a look on the repayment amount and repayment period. In case of high loan amounts it is better to increase the repayment period and to decrease the repayment amount.
Don't forget that any pending and default in your repayment may further increase your interest rate and can put you in more trouble. Chances are lot to seize your house by the bank to pay of your loan amount. Hence make necessary steps before taking the bad credit home loan. Making use of the amount in your pocket to maximum and depending on the loan for the rest and searching a loan provider who provides bad credit home loan at least interest rates and flexible repayment modes are the best methods to enjoy a good bad credit home loan.
Quit Spending On Credit Cards
Credit card borrowers have a few watershed moments on the path to significant credit card debt. The first sign of impending trouble is the month when you don't pay one of your balances in full. Then comes the month when you can't make any payments in full. Finally, the month arrives when you quit trying to pay extra and just resign yourself to making minimums.
The impact on your finances can be dramatic. We're often told to consider the real cost of buying on credit and shown how much interest you'll pay on that purchase. But the assumption that you eventually pay off the credit card debt is too simplistic for people with chronic credit card debt. Because you never pay off the debt and keep revolving it, the cost is essentially infinite.
In this situation, continuing down a path of credit card spending when you have debt is flirting with danger. You can't use credit cards as a way out of the problem if credit card debt is your problem. To use an old clich: if you want to get out of the credit card pit, quit digging.
Would you play a game if you knew the cards were stacked against you? Probably not. But in the credit game, the cards are definitely stacked against you. Here are a few examples:
You pay more for items when you buy with credit. Studies by Dunn & Bradstreet, MIT, and USA Technologies show people will spend 15-100% more for an item with credit.
You buy more per shopping event. McDonalds found that the average order increased by 55% when they started accepting credit.
By splitting the purchasing and payment events, credit card companies and merchants have stacked the cards against you in ways that are nearly impossible to control. They know you'll buy more because you don't have the same visual cues that you have when you pay with cash or debit. The only way you can win is not to play.
So how can you stop? Here are a few tried-and-true techniques that have worked for others:
Destroy all of your cards but the lowest APR card. The safest way to not use them is to simply destroy them. Cut them up or burn them. Use your creativity and vent your frustration on plastic.
Put your lowest-APR card in a safe place for use in emergencies:
o Put it on ice! Freeze your card in a bowl of ice and leave them in the freezer.
o Put it in a safe deposit box. Out of sight, out of mind.
o Put it in a plastic bag or a can and bury it in the ground.
o Give it to someone a family member or friend for safekeeping. Chances are the undesirable experience of explaining to them why you want your cards back will overrule your urge to spend.
o Wrap it in duct tape to make it hard to use in a store.
QuickStart Action:
Come to terms with the real cost of spending and recognize that the costs of relying on credit cards outweighs the convenience, rewards, or any other argument in favor.
Set up a separate checking or prepaid account with a debit card for spending. Fund this from your paycheck or primary checking account or limit your discretionary spending to this account.
Destroy all your cards but one
Put one card away for emergencies
Define what an emergency is for you. Deciding, in advance, what is an emergency and what is not can keep you from reaching for the plastic when the time comes.
The impact on your finances can be dramatic. We're often told to consider the real cost of buying on credit and shown how much interest you'll pay on that purchase. But the assumption that you eventually pay off the credit card debt is too simplistic for people with chronic credit card debt. Because you never pay off the debt and keep revolving it, the cost is essentially infinite.
In this situation, continuing down a path of credit card spending when you have debt is flirting with danger. You can't use credit cards as a way out of the problem if credit card debt is your problem. To use an old clich: if you want to get out of the credit card pit, quit digging.
Would you play a game if you knew the cards were stacked against you? Probably not. But in the credit game, the cards are definitely stacked against you. Here are a few examples:
You pay more for items when you buy with credit. Studies by Dunn & Bradstreet, MIT, and USA Technologies show people will spend 15-100% more for an item with credit.
You buy more per shopping event. McDonalds found that the average order increased by 55% when they started accepting credit.
By splitting the purchasing and payment events, credit card companies and merchants have stacked the cards against you in ways that are nearly impossible to control. They know you'll buy more because you don't have the same visual cues that you have when you pay with cash or debit. The only way you can win is not to play.
So how can you stop? Here are a few tried-and-true techniques that have worked for others:
Destroy all of your cards but the lowest APR card. The safest way to not use them is to simply destroy them. Cut them up or burn them. Use your creativity and vent your frustration on plastic.
Put your lowest-APR card in a safe place for use in emergencies:
o Put it on ice! Freeze your card in a bowl of ice and leave them in the freezer.
o Put it in a safe deposit box. Out of sight, out of mind.
o Put it in a plastic bag or a can and bury it in the ground.
o Give it to someone a family member or friend for safekeeping. Chances are the undesirable experience of explaining to them why you want your cards back will overrule your urge to spend.
o Wrap it in duct tape to make it hard to use in a store.
QuickStart Action:
Come to terms with the real cost of spending and recognize that the costs of relying on credit cards outweighs the convenience, rewards, or any other argument in favor.
Set up a separate checking or prepaid account with a debit card for spending. Fund this from your paycheck or primary checking account or limit your discretionary spending to this account.
Destroy all your cards but one
Put one card away for emergencies
Define what an emergency is for you. Deciding, in advance, what is an emergency and what is not can keep you from reaching for the plastic when the time comes.
Wednesday, May 2, 2012
Wedding Loans Bad Credit-Celebrations with pleasure!
Got the love of your life and ready to tie the knot to give practical meaning to your relation? Do you badly want the dress that you had chosen earlier to wear on your wedding day but your budget is mismatching? To make your wedding a wonderful experience not just for you but for everyone who would be present there, apply with wedding loans bad credit right here. If you want to fulfill all the desires of your marriage without any financial hassle, this loan is the pertinent loan option for you.
As its name indicates, wedding loans bad credit is available even to bad creditors. It does not matter whether you have well enough scores or imperfect credit ratings, you will get approved anyways. Insolvency, foreclosures, CCJ, IVA, arrears, defaults etc. cannot make disapproval in the loan application. Despite of holding worst credit status, you are eligible for this loan without any dread.
Likewise all other loan deals, wedding loans can be available to you in both secured as well as unsecured form. Secured form demand collateral and let you avail the huge loan money. The collateral may be your home, car, any residential place, land or jewelry etc. the loan amount that can be availed with secured form can be ranges from 25000 to 75000 till 10 to 25 years. On the other hand, unsecured form is free form collateral and avail you up to 25000 till 1 to 10 years or time duration.
You can solely tackle your wedding expenses by utilizing the amount availed from wedding loans bad credit, such as:
-Grand venue for your wedding -DJ and music arrangement -Food and caterers -Throw a grand reception party -Decorations and wedding cards -Sweets and confectioneries -Honeymoon packages and so forth
To select the wedding loans bad credit with affordable rates and swift terms, exploring the web is advisable. Comparing the quotes and making negotiation with the lender definitely land you up with the best deal in hand. Online application is simple and comfortable that can be done within few clicks. No hectic and messy schedule and enjoy the funds for your marriage.
As its name indicates, wedding loans bad credit is available even to bad creditors. It does not matter whether you have well enough scores or imperfect credit ratings, you will get approved anyways. Insolvency, foreclosures, CCJ, IVA, arrears, defaults etc. cannot make disapproval in the loan application. Despite of holding worst credit status, you are eligible for this loan without any dread.
Likewise all other loan deals, wedding loans can be available to you in both secured as well as unsecured form. Secured form demand collateral and let you avail the huge loan money. The collateral may be your home, car, any residential place, land or jewelry etc. the loan amount that can be availed with secured form can be ranges from 25000 to 75000 till 10 to 25 years. On the other hand, unsecured form is free form collateral and avail you up to 25000 till 1 to 10 years or time duration.
You can solely tackle your wedding expenses by utilizing the amount availed from wedding loans bad credit, such as:
-Grand venue for your wedding -DJ and music arrangement -Food and caterers -Throw a grand reception party -Decorations and wedding cards -Sweets and confectioneries -Honeymoon packages and so forth
To select the wedding loans bad credit with affordable rates and swift terms, exploring the web is advisable. Comparing the quotes and making negotiation with the lender definitely land you up with the best deal in hand. Online application is simple and comfortable that can be done within few clicks. No hectic and messy schedule and enjoy the funds for your marriage.
Tuesday, May 1, 2012
The Insecurity Of The Rfid Chip
The more the federal government passes laws to insure my security, the more insecure I feel. Let's take the government's proposed use of RFID technology as an example of my concern.
RFID stands for radio frequency identification. The RFID chip is a minature device that has a very small chip attached to a tiny antenna. When the chip hears a specific radio signal, it responds with information, usually a long identification number. The chips, also called tags, are used in the private sector for many information tracking functions including inventory management, EKG carts in hospitals, cash-free toll booths, the movement of shipping containers, library books, credit cards, and even tires. The military currently uses these chips in Iraq and has used RFID technology since World War II.
The United States government has become more involved in the technology for security purposes. The Real ID Act was passed by Congress in 2005. The law requires standardized driver's licenses, passports, and identification cards with machine readable data to be in place throughout the country by December 2009. The technology being used is RFID.
The problem with this proposed timeframe is that the Federal Government has not finalized the laws requirements and has not indicated how much it will pay of the estimated 11 billion dollar cost of the program over the next 5 years. There are logistical issues involved in the implementation as well. An analysis by the National Governors Association and the National Conference of State Legislatures cast doubt about the viability of getting every licensed driver to the Department Of Motor Vehicles to verify identification documents within a five-year time period.
The Real ID Act has its opponents. Maine, Arkansas, Colorado, Georgia, Hawaii, Idaho, Illinois, Missouri, Montana, Maine, Nebraska, Nevada, New Hampshire, North Dakota, South Carolina, Tennessee, and Washington have passed legislation opposing Real ID. These states worry about an individual's loss of privacy and liberty.
The states worry that personal privacy may be violated because RFID technology could be subject to both virus and information theft. This is because the chips work similar to a smart card. The problem is that they can be read from a distance. A receiving device can "talk" to the chip remotely, without any need for physical contact, and get whatever information is on it.
Passport officials envision being able to download the information on the chip simply by bringing it within a few centimeters of an electronic reader. Unfortunately, RFID chips can be read by any reader, not just the ones at passport control. The dubious result of this is that travelers carrying around RFID passports (and eventually drivers licenses) are broadcasting their identity. In tests, RFID chips have been read by receivers 20 meters away.
However, there are even bigger concerns about RFID technology than its use in drivers licenses or passports. For years, RFID chips have been implanted in the bodies of pets to keep track of stray animals. There is a company called Verichip that has received FDA approval and manufactures a chip for the human being to store emergency medical information. The chip can be implanted in the thumb or arm of a person. Verichip has implanted the chip in about 50 people. The company also markets an implant chip in South America as a way to track potential kidnap victims.
Further, consider the use of RFID chips by Cincinnati based Citywatch.com. The private video surveillance company has embedded Verichip silicon RFID chips in two of its employees. The company is using the technology to control an employee's access to physical locations in order to keep classified information secure. This is the first instance in which workers have been chipped as a way of identification.
RFID chips have been used in humans in other countries. Chips have been implanted in more than 2000 nightclub patrons in Barcelona, Spain, and Rotterdam, Netherlands for access to the club's amenities and an easy way to pay for the club's services. Credit card companies have been closely following the technology for several years as a potential way for chip-implanted customers to make secure purchases through their credit cards.
Former Health and Human Services Secretary Tommy Thompson is now on the Board of Directors of Verichip. Thompson is excited about the company's technology and sees a big future for the implant of the chip in humans for all their medical data storage.
Verichip's (Human implant RFID) chip has raised concerns from civil libertarians and state governments. Last month, Governor of California, Arnold Schwarzenegger signed legislation banning employers from requiring employees to be implanted with RFID tags. The bill's sponsor State Senator Joe Simitian (D- Palo Alto), condemned human tagging as the ultimate invasion of privacy.
If you are interested in the storage of your health records in a chip in your body, the VeriChip implant procedure costs about 0 in your doctor's office. As for me, call me old fashioned, since I will continue to use the health card in my wallet. However, due to the passage of the Real ID act, to insure my personal security, my next passport and drivers license may have to be wrapped in aluminum foil.
RFID stands for radio frequency identification. The RFID chip is a minature device that has a very small chip attached to a tiny antenna. When the chip hears a specific radio signal, it responds with information, usually a long identification number. The chips, also called tags, are used in the private sector for many information tracking functions including inventory management, EKG carts in hospitals, cash-free toll booths, the movement of shipping containers, library books, credit cards, and even tires. The military currently uses these chips in Iraq and has used RFID technology since World War II.
The United States government has become more involved in the technology for security purposes. The Real ID Act was passed by Congress in 2005. The law requires standardized driver's licenses, passports, and identification cards with machine readable data to be in place throughout the country by December 2009. The technology being used is RFID.
The problem with this proposed timeframe is that the Federal Government has not finalized the laws requirements and has not indicated how much it will pay of the estimated 11 billion dollar cost of the program over the next 5 years. There are logistical issues involved in the implementation as well. An analysis by the National Governors Association and the National Conference of State Legislatures cast doubt about the viability of getting every licensed driver to the Department Of Motor Vehicles to verify identification documents within a five-year time period.
The Real ID Act has its opponents. Maine, Arkansas, Colorado, Georgia, Hawaii, Idaho, Illinois, Missouri, Montana, Maine, Nebraska, Nevada, New Hampshire, North Dakota, South Carolina, Tennessee, and Washington have passed legislation opposing Real ID. These states worry about an individual's loss of privacy and liberty.
The states worry that personal privacy may be violated because RFID technology could be subject to both virus and information theft. This is because the chips work similar to a smart card. The problem is that they can be read from a distance. A receiving device can "talk" to the chip remotely, without any need for physical contact, and get whatever information is on it.
Passport officials envision being able to download the information on the chip simply by bringing it within a few centimeters of an electronic reader. Unfortunately, RFID chips can be read by any reader, not just the ones at passport control. The dubious result of this is that travelers carrying around RFID passports (and eventually drivers licenses) are broadcasting their identity. In tests, RFID chips have been read by receivers 20 meters away.
However, there are even bigger concerns about RFID technology than its use in drivers licenses or passports. For years, RFID chips have been implanted in the bodies of pets to keep track of stray animals. There is a company called Verichip that has received FDA approval and manufactures a chip for the human being to store emergency medical information. The chip can be implanted in the thumb or arm of a person. Verichip has implanted the chip in about 50 people. The company also markets an implant chip in South America as a way to track potential kidnap victims.
Further, consider the use of RFID chips by Cincinnati based Citywatch.com. The private video surveillance company has embedded Verichip silicon RFID chips in two of its employees. The company is using the technology to control an employee's access to physical locations in order to keep classified information secure. This is the first instance in which workers have been chipped as a way of identification.
RFID chips have been used in humans in other countries. Chips have been implanted in more than 2000 nightclub patrons in Barcelona, Spain, and Rotterdam, Netherlands for access to the club's amenities and an easy way to pay for the club's services. Credit card companies have been closely following the technology for several years as a potential way for chip-implanted customers to make secure purchases through their credit cards.
Former Health and Human Services Secretary Tommy Thompson is now on the Board of Directors of Verichip. Thompson is excited about the company's technology and sees a big future for the implant of the chip in humans for all their medical data storage.
Verichip's (Human implant RFID) chip has raised concerns from civil libertarians and state governments. Last month, Governor of California, Arnold Schwarzenegger signed legislation banning employers from requiring employees to be implanted with RFID tags. The bill's sponsor State Senator Joe Simitian (D- Palo Alto), condemned human tagging as the ultimate invasion of privacy.
If you are interested in the storage of your health records in a chip in your body, the VeriChip implant procedure costs about 0 in your doctor's office. As for me, call me old fashioned, since I will continue to use the health card in my wallet. However, due to the passage of the Real ID act, to insure my personal security, my next passport and drivers license may have to be wrapped in aluminum foil.
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