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Archive for the ‘Credit Cards’ Category

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How To Find A Better Rewards Card

February 25th, 2010 by Matthew C. Keegan | 4 Comments | Filed in Credit Cards

So, how are the new government credit card regulations working out for you? If you are like most cardholders, the terms of your credit card agreement have changed, perhaps requiring you to pay a higher minimum amount monthly on outstanding balances. Or, you may find that your card issuer plans to introduce an annual fee, an unheard of “feature” in recent years.

Rewards Cards

credit cardsIf your credit card offers rewards, switching to a new card may not be on the table especially given that you have not used up all of your points yet. But, with higher interest charges and new fees in the mix, can you afford to keep that once trusty rewards card?

Perhaps it is time for you to make a switch by dumping the old card once you secure a new one. In that case you need to shop around for a card that meets your needs while not hitting you up with a bunch of fees.

Card Offers

In the March 2010 issue of “Money” magazine, two websites are mentioned as being good sources to check out and compare credit card offers. Nerdwallet.com is the most comprehensive of the two, but Billshrink.com is worth a look too.

Nerdwallet allows visitors to filter results by the type of card sought, such as one with airline miles, cash rewards, or other perks. Once you select your reward category you can choose cards by best rewards, best cash advance APR and best ongoing APR.

Comparing Cards

I ran some tests with Nerdwallet and was pleased with the results. For example, when searching for cards offering cash rewards I found 13. Now 13 cards is not a lot, but given that this field has thinned out tremendously over the past two years, I was still surprised to find that more than a handful were still offered. What is nice about this site is that they rank the cards for you—putting the best cards at the top of the list, leaving the worst for last.

Few sites are as comprehensive, perhaps because they want to direct you to certain cards. Yes, you can apply for a card through this site which likely means Nerdwallet gets a commission. Still, if you are shopping for a new card, then having a one-stop resource containing all of the information you need is extremely helpful.

Other Features

While Billshrink.com does not include as many as cards, the results for each category are easy to sort. Moreover, there are other features on this site worth noting including a gas station locater to help you find the lowest price per gallon, a comparison tool for wireless plans and a tool to help you find savings accounts and certificates of deposit.

Lastly, you may not even know that the terms of your credit card have changed, even though notification was sent to you. Why not check your last few statements and log on to your account to see if these changes make a difference for you. If so, it just may be time to switch to a different rewards card.


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Bank of America Penalizes Good Credit

October 28th, 2009 by Krayton M Davis | 1 Comment | Filed in Credit Cards, News

This just in from the “let no good deed go unpunished” department: Bank of America, a recipient of tens of billions of dollars of federal (taxpayer) bailout money, has decided in their erudite wisdom to start charging its best customers fees for their credit cards. This means that if you have good credit and pay off your credit card every month, our nation’s largest bank may assess you an annual fee of $29 to $99 to use their cards.

Merrill Lynch

According to columnist Mike Morin and various news sources, Bank of America is experimenting with this fee to help offset costs as well as to test customer reaction. Apparently, the bank doesn’t realize just how angry many people are that they have benefited from government assistance which also paved the way for them to purchase Merrill-Lynch, one of the most extensive financial management firms in the world.

To defend itself, Bank of America is pointing to the practice of Citibank, one of its chief competitors, who is now charging credit card fees to their best customers. Citibank was by far the largest beneficiary of taxpayer largess, receiving more than $300 billion in funding last year.

Your Choices

Customers have a choice when they receive notification that their credit card issuer will be charging fees. By law, you must be notified in advance of any changes to your credit card agreement, including lending terms and fees. With such notification you can choose to 1) keep your card and pay the fees or 2) cancel your credit card.

Of course, if you choose the latter, your credit score will take a hit because one of the five components of determining your credit score is your credit history. A closed account will lower your score.

Temporary Hit

Still, expect that many consumers will tell Bank of America “enough” and order their accounts closed. Though a hit to a credit score can be painful, it is only a temporary setback, one that many people with good credit will likely decide is one worth taking.


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Credit Card Consolidation Options For You

September 1st, 2009 by Matthew C. Keegan | 1 Comment | Filed in Credit Cards

If you owe money on various credit cards, then credit card consolidation can work for you. You may not be able to wipe out all of your debt at once, but you just might discover that an important part of your credit card expense has been removed due to credit card consolidation. Are you looking for ways to get out of debt? If so, credit card consolidation may be the most helpful tool for you.

Even in this economic climate, consumers can still find credit card consolidation options that are favorable to them

Even in this economic climate, consumers can still find credit card consolidation options that are favorable to them.

Owing money on credit cards is no fun sport, especially when those cards have sizable balances and the interest being charged is just too much. You may be able to make the minimum monthly payments, but achieving a big dent in the debt can be nearly impossible to do without intervention. Happily, credit card consolidation can help reduce your costs and help you get rid of some debt. When searching for a new credit card you’ll want to make certain that the card offers the following features for you:

Balance Transfer Options — Your most important goal is to transfer at least a part of your debt from a high rate card to a new card offering a low, fixed rate. Be on the look out for a card that charges no yearly fee, dispenses with balance transfer costs, and provides you with a fixed rate on your new balance until it is paid off.

Reward Plans — While searching for a card one offering a valuable balance transfer offer, why not get rewarded for making a change to a new card? Acquire a card that offers free miles, hotel stays, travel rebates, and other incentives to help you get ahead of the game.

Trimming Your Remaining Balances — If your good fortune helps you find a card that will pay off all of your existing balances, then you are in a good place. If not, then begin working on reducing your debt by paying off the lowest loan first, followed by the next largest, and the next biggest one after that. You can take your time paying off the new card’s balance especially if you received a fixed, low rate for the life of the balance. Compare paying 2.9% to 15.9% or more and you’ll quickly see the advantage of working on your other debt first.

In some cases you may be able to get two new credit cards at the same time with both offering similar benefits. Should that be an option for you, then use both cards to bring down your debt. In concert, the new cards may offer decent balance transfer options to help you in eliminating the balances on your old cards.

Adv. — Are you looking to refinance your home? Interest rates haven’t been this low in years! If you have very good or excellent credit, you could find a home loan with an interest rate of about 5% for a fixed rate, thirty-year mortgage.  Visit SayLending.com for more information!


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New Rights For Credit Card Holders Start Today

August 20th, 2009 by Matthew C. Keegan | 2 Comments | Filed in Credit Cards

Beginning today, consumers have new rights under the Credit Card Accountability Responsibility and Disclosure Act. New rules designed to protect consumers are being rolled out in steps with full changes taking place in February 2010.

Among the new provisions taking effect today are the following:

  • New consumer credit rules kick in today.

    New consumer credit rules kick in today.

    Credit card issuers are required to adopt reasonable procedures designed to ensure that consumers’ statements are mailed or delivered at least 21 days prior to the payment due date and the date on which any grace period expires;

  • The penalty for failing to send cardholders their statements in sufficient time such that the creditor cannot treat a payment as late nor collect any finance charges or late fees on that payment;
  • Credit card issuers are required to give at least 45 days advance written notice of significant changes related to a dozen specific account terms, including raising the interest rate, increasing the required minimum monthly payment, imposing or increasing an annual fee, and changing fees for cash advances, late payments, and over-the-limit situations.
  • This advance notice must also advise the cardholder, that in most cases, he or she can reject the changes, and that the account may be deactivated thereafter.

Despite these changes, consumers should be aware that credit card issuers are free to respond, perhaps in ways not previously imagined including:

  • Banks are free to come up with new fees which they only must disclose before they are imposed. This means that you could be charged an annual fee for your card if you haven’t been charged one in the past.
  • No additional notice is required when a low-rate offer or zero-percent rate financing offer is about to expire, as long as the new higher rate was originally disclosed to the consumer.
  • No additional notice is required when the interest rate on a variable-rate account is raised, if the change triggered by a change in the index used as a basis of setting the rate.
  • No advance notice is required when a credit card issuer lowers a consumer’s credit limit (in most instances).

Open End Credit Plans Impacted Too

While the new consumer laws are intended to apply to credit card accounts chiefly, some provisions of the new law are also applicable to open end credit plans such as home-equity lines of credit.

The next phase of changes to the law takes effect on February 22, 2010.  Those provisions are related to interest rate increases, over-the-limit transactions, student credit cards, and other matters.

Consumers need to stay up on these changes especially any fees that may mysteriously show up on their monthly statements. Expect to challenge anything that seems awry or hasn’t been made fully understood.

Source: Massachusetts Office of Consumer Affairs & Business Regulation (OCABR)

Adv. — Are you looking to refinance your home? Interest rates haven’t been this low in years! If you have very good or excellent credit, you could find a home loan with an interest rate of about 5% for a fixed rate, thirty-year mortgage.  Visit SayLending.com for more information!


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