Credit Card News

The current rates of credit cards are as high as they have ever been in the last four years with the national average on new card offers standing at 15.14%. Just six months ago, the rates were averaging 14.75%. These rates are just the national average and many credit card holders are actually paying much higher rates.
Unlike other interest rates including those for mortgages which are seeing 50 year lows, credit card interest rates are getting higher. Even the best customers are paying around 3.25% on monthly interest charges.
Experts contend the skyrocketing rates are largely an ‘unintended consequence’ of the Credit Card Accountability, Responsibility, and Disclosure Act (CARD Act) which was passed by Congress in order to stop unfair practices by the credit…

Average credit card interest rates for consumers and businesses changed during the first half of December, 2011 despite a stable US bank prime rate of 3.25%.  Not all credit card interest rates are directly linked to the prime rate and there are a variety of reasons why the average credit card interest rates might change even with a stable US bank prime rate.
December 2011 Average Credit Card Rates
In December, the difference between interest rates for individuals with good credit compared to individuals with average credit narrowed, dropping between a half a percent to 3.57%.   The overall average interest rate for all credit cards is 16.71%.
The only category of credit cards which did not change their average interest rates this quarter are business credit cards.…

In 2009, a number of improvements were made to credit card statements and agreements in an effort to help consumers better understand their credit card policies.  The 2010 Dodd-Frank law created a federal agency, The Consumer Financial Protection Bureau, for protecting consumers against potentially abusive practices of mortgage lenders and credit card companies.  On Wednesday, December 6^th, the Obama administration announced another initiative for helping consumers understand their credit card terms, as the Consumer Financial Protection Bureau has discovered that consumers are still confused over credit card issues.

With more people in search of savings and deals for the 2011 holiday shopping season, credit card issuers are offering more aggressive cash back programs and increased rewards points earnings in an effort to entice customers to use their credit card over the competition.
American Express
Shopping from specific brands including Apple and Target during Cyber Week of November 21^st to November 30^th will allow American Express cardholders to earn five times the normal rewards points.
Amazon Rewards Card
Buying digital downloads from Amazon.com on your Amazon rewards card between November 15^th and December 31^st offers additional rewards points to cardholders.
Discover Card
Cash back Discover card members will earn 5% to 10% additional cash back when shopping specific retailers on Discover’s…

It looks like the bad economy has affected United States Post Offices. The Postal Service has announced closings at thousands of post offices and mail-handling facilities around the country. Right now, a first class letter takes between one to three days to arrive at its destination. After the closings, that time could increase by a couple of days. If you still mail your credit card payments, or any payment, the post offices closings could affect you.
You could be affected even if your local post office is still open since it’s possible that mail handling facilities between your home and the creditor’s billing location may be closed.
Due Date Rules
New Federal law says credit card issuers can only charge late fees if your payment…

Most people with debit cards related to their checking accounts know they can use the card as a debit card or a credit card. Debit card transactions require you to enter your PIN, while credit card transactions only require a signature. Both transactions, however, pull money from your checking account.
Fifth Third Bank, based out of Cincinnati, Ohio, has launched the Duo MasterCard, which actually does make credit and debit transactions. The card is linked to both a checking account and a revolving credit line. Debit transactions, those made by entering a PIN, will be deducted from the cardholder’s checking account. On the other hand, credit card transactions will be posted against the credit line, not the checking account. People with the Fifth Third Duo…

Airlines want customers to return to their airline rewards credit cards. A few cards have vamped up their reward offerings hoping to lure in more customers.
American Airlines Travelers
The Executive AAdvantage World Elite MasterCard, American Airlines’ rewards credit card, now waives the fee for checking for your first bag along with the fee for up to 8 people travelling with you. Other benefits include priority check-in, security screening, concierge service, and unlimited access to their airport lounge whose membership fee is higher than the $450 annual fee for this credit card. They’ve eliminated the foreign transaction fee.
The less expensive Citi Gold/AAdvantage World MasterCard has a $50 annual fee (waived in the first year) and a 30,000-mileage bonus rewarded if you make $750 in…

Starting July 21, 2011, credit card issuers are required to give a free credit score to applicants who are denied a credit card because of a low credit score. Applicants who are approved, but get less favorable terms, e.g. a higher interest rate than what was advertised, because of a low credit score will also get a free look at their score.
Current Free Credit Report Law
By law, applicants already have the right to a free copy of their credit report when they’re turned down for credit based on information in their credit report.  You have 60 days to request a copy of this credit report – it isn’t sent automatically. Adding credit scores to the required disclosures gives consumers a better view of…

Credit card issuers have a reputation for abusive  practices. However, recent changes to  law prevent issuers from doing several things that take advantage of consumers.
Charge an excessive late fee. Recent changes to the law prevent issuers from charging high late fees. Now, your creditor can charge a maximum late fee of $25 or $35 if you’ve been late within the past six months. Not only that, your late fee can’t be higher than the minimum payment you missed. So, if the payment you were late on was just $10, your late fee can only be $10.
Charge a late fee on the days they don’t accept payments. Sometimes due dates fall on holidays or weekends and the card issuer doesn’t process payments on those days. If… Read More →

Credit card providers have gotten a bit tricky in recent years. Since the CARD Act went into effect in 2009, there have been many regulation changes which limited the way the card provider could profit from charging consumers varying amounts for different card transactions.
Since the credit card regulations have changed, card providers have become more creative in how they make a profit and typically a common method for procuring more cash from customers is to ‘hide’ the various fees from the consumer. While the card issuer is not being completely secretive about these fees, they are counting on the consumer to fail to read fully the disclosures being provided on the account.
In essence, the card provider is glad that many consumers fail to… Read More →