Most credit cards offer rewards on purchases. Now what if those rewards were put in the government’s pocket instead of your own?

If Anthony Pollina, an independent candidate for the governor of Vermont gets elected, that may happen. Pollina propose creating a “Vermont credit card” which would be issued by Vermont banks. He claims the card would carry a low interest rate and instead of earning cashback or airline miles, that money would go into a local economic development fund. Pollina states he is not advocating Vermont citizens get this credit card to run up debt, but rather use the card in-lieu of their current credit cards.

Some argue it’s big brother stepping in and trying to find away to squeeze more money with a hidden tax. Others say it is an ingenious way to increase funding without increasing taxes. Whether you are for this or against it, no one can deny it is an innovative idea.

With all the gloomy banking news here’s something to lighten the mood…

Did you know in 1999 David Bowie had his own retail bank? They even issued a MasterCard debit card. The operation closed shop shortly after. Apparently customers don’t desire debit cards with David Bowie’s mug on them.

Other celebrities that have dipped their toe in banking include Usher who had a prepaid Visa card, and Kiss, who has issued a credit card. Capital One has issued World Championship Wresting credit cards featuring the photos of Hulk Hogan, Bill Goldberg, and Sting among others. The Cool Country Visa from SunTrust featured the faces of Reba McEntire, Billy Ray Cyrus, and Alan Jackson among others.

No celebrity banking service has ever been a huge success and most have only last a very brief time. Just because we want to buy their music does not mean we want to do banking with them… especially during a time like this.

Although we have not had any credit card crisis *yet* during this global financial meltdown, it’s interesting to take a look at what companies are most exposed should this happen.

As expected, some of the biggest card card issuers are listed. The amount of total credit card debt is not the issue, but rather the percentage of revenue from credit cards. In other words, the more exposure a company has to credit cards, the more they will be hurt if credit cards turn out to be the next shoe to fall.

It looks like Discover generate almost all of their revenue from from credit cards.

Depressing is an understatement when the Dow experiences the biggest one week drop in history, both in points and percentage. While Wall Street is experiencing its own financial crisis, most of us are experiencing a personal financial crisis to at least some degree. Here are a few tips to keep your own credit in check.

1. Big Picture Mentality. First get your finances prioritized. List all of your debt obligations such as mortgage, credit cards, car loan, student loan, etc. Rank them in order of importance, when they’re due, and how much is owed.

2. The Most Important Bills First. Pay things that are an absolute necessity such as mortgage or rent, car payment, and so forth. While many may view their MasterCard bill at the bottom of the list, keep in mind it’s important to make at least the minimum payments, because the last thing you want is your credit to be negatively affected with a late payment.

3. Balance Transfer Offers. In theory, you should pay off your credit cards first if the interest is higher than your other loans. Unfortunately this may not be an option for the financially strapped. This is why it’s important to look into 0% balance transfer offers to at least keep interest low if you are unable to pay off the principle right now.

4. Cut Out Extras. Do you really need cable right now? Many websites such as CNN and ABC offer streaming video for free. Downgrading your cell phone plan and canceling your rarely used gym membership are other monthly expenses you save on.

This information was found on Alpha Consumer by Kimberly Palmer.

Last Monday Citigroup agreed to take over Wachovia for $2.2 billion in a deal facilitated with the help of the FDIC. This did not include Wachovia’s retail-brokerage or asset-management units. Then just four days later Wells Fargo announced it was purchasing all of Wachovia in an all-stock deal for $15.1 billion. In essence, they sold the same company twice.

This weekend the judge blocked the deal while it is under review. Meanwhile Wachovia spokesman Mary Eshet stated:

“Today, nothing has changed for anyone. As we proceed, I’m sure Wachovia and Citigroup will look at what reward programs are in place. But as of today nothing changes.”

In other words, that could be interpreted as cardholders should redeem any rewards now instead of later if they don’t want them to change. If you have a Wachovia credit card I would advise you cash out any points, miles, or cashback now instead of later.