Although I haven't posted since February, please play along and pretend it was just last week, OK?
Fine new credit card offers this week:
The Citi Diamond Preferred Card is offering me 0% on purchases and balance transfers until July of 2008 plus a 9.99% fixed APR after that. That's way better than what they offer online, where you'll see they're only giving the 0% on balance transfers and NOT purchases, and the ongoing rate is 12.74% at best. Plus there's the reward program. For me, though, I'd be more likely to take the online deal because you get6,000 of those ThankYou points free and the mail offer is not giving me that. I don't need 0% anything, and I don't carry balances, but I do like my points, yes I do.
Next up is a Wells Fargo Visa Business Platinum card. Wellsy is offering me 0% on purchases for 12 months, interest rate as low as the prime rate + 4% (which would thus equal 12.25% assuming I qualified for their best rate), and "up to" 2% cash back on purchases, with the cash reward credited automatically to my account. I got excited for a moment and thought it was a straight 2%, but reading the fine print I see it's 0.5% on the first $350 of purchases, 1% on the next $1,650 and then 2% after hitting $2000. And that's per month, not per year. So you really have to be using that card to hit the 2%. Ah, Wellsy, your fine print stinks. That's the ultimate come on---2% my butt.
All right. Now we have the American Express Rewards Plus Gold Card, which has come in some fancy golf leaf enveloping. This is one of Amex's charge cards, which comes with an annual fee of $150, although they'll waive it for the first year. It's not a bad card if you're a traveler---2 points per dollar on airline and hotel purchases for the first year and 1.5 points per dollar after that. It also promises access to Gold Card Events, "giving you the ability to purchase some of the most sought-after tickets" to concerts and sports, "often before they're made available to the public." I wish I knew someone who had this card so they could tell me just how often they get some kind of VIP status to get good tickets. I'm skeptical, but that might draw me in if I really believed I could get good tickets to a U2 show or something. For now, however, it goes n the circular file.
I actually have a stack of 40 other offers I've received since I last posted, but I don't feel like opening them all. I'm wiping the slate clean and will only report on new mailings in the future.
A commenter asked why I never seem to talk about Chase credit card offers. The reason is that I'm already up to my eyeballs in Chase cards; it just so happens that Chase has had a lot of cards that I've wanted in the last few years, and so they really don't bug me with new offers very often. Maybe I'll close down some of those accounts that I don't use much so I can get more mail from Chase. Nah.
Today's Credit Card Offers: American Express and National City Bank
Posted on
2010/06/17 |
0
Comments
American Express sent me some checks I could use to transfer balances from other credit cards and only pay a 1.99% APR until November of this year. Only in the fine print did they mention that I would pay a fee of 3% of the total transferred, capped at $99, but still.
Here's how I figure it: If I had a balance of $3,000 that I wanted to transfer, I'd pay $90 to do so. Well, if I had a card with a 12% interest rate, $90 would be 3 months worth of finance charges. Transferring the balance, I'd pay those 3 months of finance charges up front, then get the 6 months at 1.99%, then I'm basically back to where I started from. A little savings, but not much.
On the other hand, if I had a $6000 balance and an 18% interest rate on the other card, then it would be a much better deal, because I'd be charged $99 to transfer that balance, which is roughly one month of finance charges on that other card.
I don't have any balances to transfer, so it doesn't matter, but I thought I'd share the math in case you're thinking of doing this and wondering if you're getting a good deal or not. Watch those balance transfer fees!
I also got an offer from National City for a Visa Business credit card, which will offer me a 0% APR on transferred balances until July of 2009. and this with no fee on the transfer. That's a good deal if I had a balance elsewhere. It says the card's interest rate could be anywhere from 9.99% to 17.99%. That's kind of a big range, which I find annoying, but almost all the card companies do that now. You don't get to find out your interest rate until after you fill out the application and they send you the card. Surprise! You get a 13.99% interest rate! Surprise! You get a 17.99% interest rate! And if you don't like it, you have to go through the hassle of canceling the card.
Anyway, I'm not getting this card, although it's not a bad deal.
Here's how I figure it: If I had a balance of $3,000 that I wanted to transfer, I'd pay $90 to do so. Well, if I had a card with a 12% interest rate, $90 would be 3 months worth of finance charges. Transferring the balance, I'd pay those 3 months of finance charges up front, then get the 6 months at 1.99%, then I'm basically back to where I started from. A little savings, but not much.
On the other hand, if I had a $6000 balance and an 18% interest rate on the other card, then it would be a much better deal, because I'd be charged $99 to transfer that balance, which is roughly one month of finance charges on that other card.
I don't have any balances to transfer, so it doesn't matter, but I thought I'd share the math in case you're thinking of doing this and wondering if you're getting a good deal or not. Watch those balance transfer fees!
I also got an offer from National City for a Visa Business credit card, which will offer me a 0% APR on transferred balances until July of 2009. and this with no fee on the transfer. That's a good deal if I had a balance elsewhere. It says the card's interest rate could be anywhere from 9.99% to 17.99%. That's kind of a big range, which I find annoying, but almost all the card companies do that now. You don't get to find out your interest rate until after you fill out the application and they send you the card. Surprise! You get a 13.99% interest rate! Surprise! You get a 17.99% interest rate! And if you don't like it, you have to go through the hassle of canceling the card.
Anyway, I'm not getting this card, although it's not a bad deal.
American Express Wants Me to Pay for a Credit Card. Why Would I Do That?
Posted on
2010/06/16 |
0
Comments
In the past two weeks, I've received 6 mail solicitations from credit card companies, with 3 of those being American Express trying to get me to sign up for a card I have to pay for. Let's see what they're offering that's so great I'd pay for it, and we'll look at the other offers, too.
First off is the Platinum Card from American Express, which they say I'm being offered for being such a great cardmember for so long. (And I have been good, I'll give them that.)
This card costs $450 per year. What could possibly move me to pay $450 for this card? Let's see.
I'd get enrollment in the Membership Rewards First program, which is supposedly a step up from the Membership Rewards program you peons have. the selling point of "First" seems to be better travel rewards, luxury rewards from their First Collection portfolio, and "one-of-a-kind experiences." No word yet on what is so great here.
OK, I can get a complimentary companion airfare when I use the card to buy an airline ticket. That could cover the $450 right there. This of course assumes I'll be traveling somewhere that would make me fork over real money for an airline ticket. As the airlines know all too well, we're all trying to get by on frequent flier miles these days. Anyway, that could make this card worth it.
Another feature is access to airport clubs from American Airlines, Continental, Delta and Northwest. Nice for the frequent traveler, not so much for me.
From here the benefits are only so-so as far as I'm concerned. Upgrades at certain hotels, upgrades on certain cruises, membership in "premier" car rental programs, etc. No big deal. I'm not spending my time cruising around the world.
OK, back to the Membership Rewards program. It's still one point per dollar, just like the others, and supposedly it offers something more, but it's unclear what it is.
They're also telling me the card has a personal concierge service to help me no matter what I might need, from "a conference room in Boston" to "a gift delivered in Paris" to "help locating a rare edition of a classic novel." Who am I? Nelson Rockefeller?
There's also the By Invitation Only feature that gets you into experiences that "are simply not available to the general public at any price." Sports, fashion, fine dining, and performances are mentioned. It would be nice to include a few examples, like maybe if I get to be in the locker room at the Super Bowl, which would seem worth it to pony up some cash.
If you are a frequent world traveler and international (wo)man of mystery, I could see paying $450 per year, but otherwise I don't understand the attraction. Other than the free companion ticket, the rest is nice but not vital.
I also got a solicitation for the American Express Business Platinum Card. The marketing says "Be among the few who know what it feels like". That sounds almost sexual; I'm excited.
This one costs $450, too, and offers pretty much the same benefits as the card above. It markets the By Invitation Only events as good for client entertainment, which is interesting. It also offers a couple of event examples --- the US Open Tennis Championships and an unforgettable wine tasting tour through California's Napa Valley. (I once had a forgettable tour through Napa Valley. I have a hard time remembering it after getting drunk on so many tastings.)
So, same deal with this card I think. If you travel a lot, could be worthwhile, but unless you're going to use the companion ticket feature, it probably doesn't pay for itself.
Not done yet. I could also get the American Express Business Gold Rewards Card.
This one's cheaper. Only $125 per year, with the first year's fee waived.
Unfortunately, it's even more hazy as to why I'd pay for this card. I do get the Membership Rewards program, including the opportunity to earn some decent bonuses --- $5,000 points when I use the card the first time and $20,000 points if I put $1000 on it in the next 4 months or so. That 25,000-point bonus is an airline ticket right there. Not bad.
There's some other features they tout, but I'm not buying. Other than the initial point bonuses, I fail to see why I'd want to pay $125 for this.
Here's what I got these last two weeks...
I could get the Gold Delta SkyMiles Business Credit Card (also from American Express). Costs $95 per year, but first year is waived. If I was already a heavy user of Delta, this would obviously be attractive.
I'm pre-qualified for the Banco Popular Platinum MasterCard. Nothing so great there.
Bank of America has a Platinum Plus Visa with my name on it. Offers a 0% rate on purchases for about a year. If I needed to stash some debt at 0% I might go for this, but I don't see anything too special otherwise.
First off is the Platinum Card from American Express, which they say I'm being offered for being such a great cardmember for so long. (And I have been good, I'll give them that.)
This card costs $450 per year. What could possibly move me to pay $450 for this card? Let's see.
I'd get enrollment in the Membership Rewards First program, which is supposedly a step up from the Membership Rewards program you peons have. the selling point of "First" seems to be better travel rewards, luxury rewards from their First Collection portfolio, and "one-of-a-kind experiences." No word yet on what is so great here.
OK, I can get a complimentary companion airfare when I use the card to buy an airline ticket. That could cover the $450 right there. This of course assumes I'll be traveling somewhere that would make me fork over real money for an airline ticket. As the airlines know all too well, we're all trying to get by on frequent flier miles these days. Anyway, that could make this card worth it.
Another feature is access to airport clubs from American Airlines, Continental, Delta and Northwest. Nice for the frequent traveler, not so much for me.
From here the benefits are only so-so as far as I'm concerned. Upgrades at certain hotels, upgrades on certain cruises, membership in "premier" car rental programs, etc. No big deal. I'm not spending my time cruising around the world.
OK, back to the Membership Rewards program. It's still one point per dollar, just like the others, and supposedly it offers something more, but it's unclear what it is.
They're also telling me the card has a personal concierge service to help me no matter what I might need, from "a conference room in Boston" to "a gift delivered in Paris" to "help locating a rare edition of a classic novel." Who am I? Nelson Rockefeller?
There's also the By Invitation Only feature that gets you into experiences that "are simply not available to the general public at any price." Sports, fashion, fine dining, and performances are mentioned. It would be nice to include a few examples, like maybe if I get to be in the locker room at the Super Bowl, which would seem worth it to pony up some cash.
If you are a frequent world traveler and international (wo)man of mystery, I could see paying $450 per year, but otherwise I don't understand the attraction. Other than the free companion ticket, the rest is nice but not vital.
I also got a solicitation for the American Express Business Platinum Card. The marketing says "Be among the few who know what it feels like". That sounds almost sexual; I'm excited.
This one costs $450, too, and offers pretty much the same benefits as the card above. It markets the By Invitation Only events as good for client entertainment, which is interesting. It also offers a couple of event examples --- the US Open Tennis Championships and an unforgettable wine tasting tour through California's Napa Valley. (I once had a forgettable tour through Napa Valley. I have a hard time remembering it after getting drunk on so many tastings.)
So, same deal with this card I think. If you travel a lot, could be worthwhile, but unless you're going to use the companion ticket feature, it probably doesn't pay for itself.
Not done yet. I could also get the American Express Business Gold Rewards Card.
This one's cheaper. Only $125 per year, with the first year's fee waived.
Unfortunately, it's even more hazy as to why I'd pay for this card. I do get the Membership Rewards program, including the opportunity to earn some decent bonuses --- $5,000 points when I use the card the first time and $20,000 points if I put $1000 on it in the next 4 months or so. That 25,000-point bonus is an airline ticket right there. Not bad.
There's some other features they tout, but I'm not buying. Other than the initial point bonuses, I fail to see why I'd want to pay $125 for this.
Here's what I got these last two weeks...
I could get the Gold Delta SkyMiles Business Credit Card (also from American Express). Costs $95 per year, but first year is waived. If I was already a heavy user of Delta, this would obviously be attractive.
I'm pre-qualified for the Banco Popular Platinum MasterCard. Nothing so great there.
Bank of America has a Platinum Plus Visa with my name on it. Offers a 0% rate on purchases for about a year. If I needed to stash some debt at 0% I might go for this, but I don't see anything too special otherwise.
Got the news today that my Amazon credit card is getting a big interest rate hike --- from the current 10.90% up to 14.24%, a raise of 3.25 percentage points. That's big!
I have the option to turn down this hike BUT if I do I can't use the card anymore. AND I need to use my reward points before rejecting the hike, otherwise I lose them.
I pay off my credit card every month, so I don't really care and I'll keep the card at the new rate. But many other people have been getting these notices recently, and they're not necessarily in the same situation in terms of keeping their balances at zero.
On Friday President Obama signed a new law that is going to stop card issuers from doing a lot of things like raising rates on existing balances or changing rates with like 5 minutes notice. That's good stuff, but I will guarantee you this: every person in American who holds 2 or more credit cards will see the interest rate go up on at least one of them. These card companies know how to take money --- tell 'em what they CAN'T do and they'll start thinking about what they CANdo to get the money flowing again.
I have the option to turn down this hike BUT if I do I can't use the card anymore. AND I need to use my reward points before rejecting the hike, otherwise I lose them.
I pay off my credit card every month, so I don't really care and I'll keep the card at the new rate. But many other people have been getting these notices recently, and they're not necessarily in the same situation in terms of keeping their balances at zero.
On Friday President Obama signed a new law that is going to stop card issuers from doing a lot of things like raising rates on existing balances or changing rates with like 5 minutes notice. That's good stuff, but I will guarantee you this: every person in American who holds 2 or more credit cards will see the interest rate go up on at least one of them. These card companies know how to take money --- tell 'em what they CAN'T do and they'll start thinking about what they CANdo to get the money flowing again.
6 Capital Ones, 6 American Express, 2 Discover, 1 Local/MBNA, 1 Advanta, 1 Wells Fargo, 1 First Equity
Posted on
2010/06/13 |
0
Comments
So I'm supposed to chronicle my credit card offers and I've fallen way behind, so I'm chucking the whole stack. I'm not going to bother even opening these; I'll just start over with whatever I get next. But in looking at my stack, it is interesting to see Capital One and American Express tied for the lead in terms of who sends me the most stuff. I have no Capital One cards, so it makes sense they'd pursue me, but I have a Blue card from Amex and they've obviously decided I would benefit from even more.
Discover didn't send too much, and I have none of their cards, so I would expect more than I get.
I have a lot of Chase & Citi cards, so it's not surprising that they've stopped soliciting me (other than Chase's constant "convenience checks").
Bank of America/MBNA sends me very little--in fact, the only one I got in the recent past is actually my local bank marketing an MBNA card with the local bank's brand on it.
I just chucked them all into the trash without shredding a one. If you're a dumpster diver, you could get a lot of credit in my name right now.
Discover didn't send too much, and I have none of their cards, so I would expect more than I get.
I have a lot of Chase & Citi cards, so it's not surprising that they've stopped soliciting me (other than Chase's constant "convenience checks").
Bank of America/MBNA sends me very little--in fact, the only one I got in the recent past is actually my local bank marketing an MBNA card with the local bank's brand on it.
I just chucked them all into the trash without shredding a one. If you're a dumpster diver, you could get a lot of credit in my name right now.
The elimination of credit card debt - Some pesticides in the home to help your situation
Posted on
2010/06/09 |
0
Comments
Eliminating credit card debt might be a little difficult, but surely isn't impossible. To know more, read on. A little effort on your part today is sure go a long way towards a healthy financial future!
With plastic money being easily available to people, credit card debt issues have become a very common situation faced by many. But the good news is; you can put an end to it sooner than you previously thought, provided you work towards it. Most of us get a second chance to rectify our mistakes and so do you. Stop brooding over what has already happened, work towards rectifying your previous mistakes today and welcome a brighter debt free future with open arms.
In order to eliminate your credit card debt, you need to follow a few Dos and Don'ts, and you will be surprised to see how these can improve your financial state significantly.
Dos:
Analyze your financial state realistically and figure out a plan how you will deal with your debts.
Make a realistic personal budget and strictly follow it.
Start saving your hard earned money. Saving will not only give you the confidence to fight your situation with a positive spirit but also help you improve your financial state.
Once you have decent savings in your bank account, it's time to attack your debts. Pick the one with highest rate of interest first and start paying them off one by one.
Don'ts:
In case you are in the habit of making minimum payments, then it's high time you stopped it. Minimum payments do not help you much in paying off your debts; instead it may take you 30 years to get debt free that too by paying three times the amount you had initially borrowed.
Do not neglect your loans. It is a very dangerous thing to do. Neglecting you loans may leave you in a bigger mess. This will not only contribute towards increaseddebt amount but also towards a bad credit report.
Keep a proper track of your spending. The moment you start using your creditcards carelessly, you put yourself in credit debt.
I strictly recommend my reader to follow these simple dos and don'ts and believe you me it'll be a big leap towards a debt free future. But in case you are in a baddebt trap then just following these dos and don'ts might not be enough. In that case, I suggest going for debt settlement plans. The two popular settlement plans are:
Debt negotiation: it is a process of reducing your debt amount to a figure that you can afford to pay, by talking it out with your creditors.
Debt Consolidation: this is another kind of debt settlement, where you consolidate multiple debts into one single loan with a minimized monthly payment.
In any case, I think taking professional help is the best thing to do as a professional can help to solve the best plan with your lender to help you improve your financial situation.
So now they have gone through this story, you have a good idea of how to eliminate debt on credit cards. So go ahead and take appropriate action and move towards a future free from debt. Good luck!
With an economy in turmoil, a large percentage of people are no longer qualifying for traditional credit cards. Even those who can qualify are trying to stay away from more traditional credit cards to reduce their personal expenses and debts. Rather than throw your hands up in the air and say there’s nothing you can do, here’s a look at a few alternatives to credit cards that may help you get back on your feet financially.
Credit Union Credit Cards
Studies have shown that credit cards issued through credit unions are far less likely to charge high fees and penalties often charged by banks. They have lower annual fees and longer grace periods to pay your monthly bill than a regular credit card, too.
Not everyone can qualify for a credit union membership or for a credit union issued credit card, but it’s definitely something to consider before signing on the dotted line of a regular credit card.
To find a credit union near you, go to creditunion.coop. The Credit Union National Association can help you find a credit union by calling (800) 358-5710.
Prepaid Credit Cards
On a prepaid card, you deposit the money onto the card and use it until you’ve run out. It’s much like a debit card. There are no interest charges on purchases since you’ve pre-paid for them and you won’t receive any billing statements in the mail.
Prepaid credit cards are not without fees, however. When you first set up the card, you may pay about $10 to open the account. Some prepaid cards charge monthly maintenance fees, transaction fees and then fees each time you put additional money on the card. Most prepaid cards do not report use to the credit reporting agencies, so it’s not even going to help rebuild your credit score.
Prepaid cards are a decent option for someone who needs a card with a Visa or Mastercard logo on it to make a purchase online, by phone, or to rent a car for example – but probably not your best financial option for an all-the-time card.
Secured Credit Cards
To get a secured credit card, you make a deposit to the bank issuing the card – typically between $500 and $1000. Secured cards offer limited credit lines, but they do report your payments to credit reporting agencies which means they will help you re-establish your credit score.
Swipely is a new twitter-like social network, however instead of tracking your status, it tracks your purchases. It launched with venture capital of $8.5 million dollars.
What does Swipely do? You simply link your credit card to your Swipely account, and any purchases you make will appear throughout the day, similar to a tweet. For instance, if your friend purchased a McDonalds meal, it will simply show up as “Andrea just purchased a meal at McDonalds” on her Swipely account.
The first thought through your mind should be about the security of the network and access to your credit card information. Swipley promises that third party security specialists protect your credit card, so your credit card information will never show up anywhere, just announcements of what you‘re buying.
Unlike a similar Facebook application, this one won’t post how much you spent, just merely the services and where you purchased.
The idea behind it is to give your friends something to talk about. They may find they have more in common with you or vice versa based on purchases made. Or more commonly it’ll give you something to tease them about or vice versa. It’s just another way to start a conversation, or share interests. It’ll allow you to share more details about what you do in any given day with your friends and family.
Of course there are people who will say that this is way too intrusive, and people who feel that way don’t need to use the program. Most bloggers discussing Swipely don’t understand the purpose or need to share credit card purchases with friends and family in order to generate conversation. But, maybe Swipely will be used by parents who give their teenagers debit or credit cards to monitor their kids spending habits as it happens - rather than waiting for the statements to arrive?
If you have a credit card, there’s a good chance you’ve been asked if you would like to add credit card insurance. Sometimes it’s offered when you first sign up for the credit card, sometimes it’s when you call the number on the card or visit the website to activate the card, or sometimes it’s by telemarketer. Most of the time, the insurance coverage is offered for a free trial, for 30 or 60 days, which will continue unless you cancel it.
Credit card insurance is meant to cover your monthly minimum payment in case you lose income from illness or job loss; or to pay your balance in full if you should die. Credit card insurance coverage sounds good in theory, but there have been many people who have reported trying to put a claim in for insurance coverage when they’ve lost their job who discovered their job loss wasn’t eligible for coverage. Others tried obtaining insurance coverage when they became too ill to work, and discovered their illness wasn’t covered. If you are considering card protection insurance coverage – first make sure it covers what you think it covers! Additionally, most insurance plans will not cover job loss for self-employed individuals, so if you are self-employed – better check on this before purchasing.
Most people have disability insurance and/or life insurance which will cover your credit card payments, which makes having a separate credit card protection insurance policy unnecessary. If you don’t have a disability insurance or life insurance policy – you may want to look at these options prior to signing up for credit card insurance, as you may find you get more coverage for your money through those options.
Credit card protection insurance only covers you for one credit card – so if you have multiple cards you would need to sign up and pay for it on each card. The typical price is around $0.89 per $100 you spent each month. It may not sound like a lot, but can add up to thousands of dollars over the years.
If you already have protection insurance and you want to cancel, be prepared to speak with a pushy sales person. They will try to convince you that the product offers so many benefits that you are crazy to cancel, but if you’ve made your decision to cancel simply be firm and demand that they stop billing your account immediately and cancel the coverage. Most people aren’t even aware they have insurance protection, but you can see it listed on your statement if you’re being charged for it.
It's been exactly 3 weeks since my last post and the credit card offers have not been the usual stream, it's definitely slowed to a trickle. Still, I got 7, which is over 2 per week. Let's take a look at what I got.
The American Express Business Platinum Card is first. This is the one that wants to charge me $450. I already went over this on the last post, but they continue to send me this same offer. No thanks.
An offer for the Capital One Visa Business Platinum Card with No Hassle Miles (say that 10 times fast) showed up in an oversized envelope that had a sticker on the front stamped Time Sensitive and a little fake code 29051154 on the sticker. Marketing. Anyway, this one offers 2 miles per dollar in spending for the first year plus a 0% balance transfer offer for a year. 3% fee on the balance transferred, though, and after a year it's just a mile per dollar charged. OK, but nothing to jump up and down about.
Next up is the American Express SimplyCash Business Credit Cardthat offers 5% cash back on gas, office supplies and cell phone service and 1% back everywhere else. This one is really a nice deal, especially if you're going through gas a lot. No cap on earnings, and no annual fee. Good interest rates, too. I've already got an old Chase card that gives 5% back on gas and some other purchases that I'm happy with, but I'd go after this one otherwise.
Bank of America wants me to get their Platinum Plus Visa that has a 0% intro rate on purchases and balance transfers for roughly 12 months. and an APR of 10.24%. I'm all about the rewards, though, and this has none. If I was looking for a nice 0% introductory offer on purchases, though, this would be a keeper.
American Express is trying to get me on board the Gold Delta SkyMiles Business Credit Card. Comes with 20,000 bonus miles after the first purchase, which is nice. No annual fee for the first year, but then $95 per year. If I was a big Delta user, I might go for this, but I don't travel enough and have no airline loyalty.
Another one from Capital One, this time in a padded envelope. Cap One is the best at crazy envelope packaging to get your attention. I open it up to find it's not a padded envelope exactly, but just a piece of bubble wrap slipped inside to give it that cushiony feel. I like to play with bubble wrap, so it gives me warm feelings toward Cap One as I check out the offer for the Capital One Visa Business Platinum Card with No Hassle Miles. Hmmmm. I already got this one! Let's see if there's any difference between the two... yes. This one does not offer me the 2 miles per dollar for the first year, but it's giving me a 0% rate on purchases and balance transfers all the way to October of 2009. Another good offer if I was looking for a 0% rate to float some purchases for a while, but for now I don't need that. (The bubbles on the bubble wrap are too small for popping. Hmmph.)
Finally it's American Express again for the 4th time. This time it's theBusiness Gold Rewards Card. They'll waive the $125 fee for the first year and give the equivalent of a free airline ticket if I spend $1,000 on the card in the next few months. I might do this if I just wanted to swing a free ticket really quick, but I don't want any of these American Express cards that you have to pay for. It just doesn't make sense unless you really travel a ton and can use some of the extra travel rewards that you can get. In most cases, though, I think their customers are paying a fee with not a whole lot to show for it.
The American Express Business Platinum Card is first. This is the one that wants to charge me $450. I already went over this on the last post, but they continue to send me this same offer. No thanks.
An offer for the Capital One Visa Business Platinum Card with No Hassle Miles (say that 10 times fast) showed up in an oversized envelope that had a sticker on the front stamped Time Sensitive and a little fake code 29051154 on the sticker. Marketing. Anyway, this one offers 2 miles per dollar in spending for the first year plus a 0% balance transfer offer for a year. 3% fee on the balance transferred, though, and after a year it's just a mile per dollar charged. OK, but nothing to jump up and down about.
Next up is the American Express SimplyCash Business Credit Cardthat offers 5% cash back on gas, office supplies and cell phone service and 1% back everywhere else. This one is really a nice deal, especially if you're going through gas a lot. No cap on earnings, and no annual fee. Good interest rates, too. I've already got an old Chase card that gives 5% back on gas and some other purchases that I'm happy with, but I'd go after this one otherwise.
Bank of America wants me to get their Platinum Plus Visa that has a 0% intro rate on purchases and balance transfers for roughly 12 months. and an APR of 10.24%. I'm all about the rewards, though, and this has none. If I was looking for a nice 0% introductory offer on purchases, though, this would be a keeper.
American Express is trying to get me on board the Gold Delta SkyMiles Business Credit Card. Comes with 20,000 bonus miles after the first purchase, which is nice. No annual fee for the first year, but then $95 per year. If I was a big Delta user, I might go for this, but I don't travel enough and have no airline loyalty.
Another one from Capital One, this time in a padded envelope. Cap One is the best at crazy envelope packaging to get your attention. I open it up to find it's not a padded envelope exactly, but just a piece of bubble wrap slipped inside to give it that cushiony feel. I like to play with bubble wrap, so it gives me warm feelings toward Cap One as I check out the offer for the Capital One Visa Business Platinum Card with No Hassle Miles. Hmmmm. I already got this one! Let's see if there's any difference between the two... yes. This one does not offer me the 2 miles per dollar for the first year, but it's giving me a 0% rate on purchases and balance transfers all the way to October of 2009. Another good offer if I was looking for a 0% rate to float some purchases for a while, but for now I don't need that. (The bubbles on the bubble wrap are too small for popping. Hmmph.)
Finally it's American Express again for the 4th time. This time it's theBusiness Gold Rewards Card. They'll waive the $125 fee for the first year and give the equivalent of a free airline ticket if I spend $1,000 on the card in the next few months. I might do this if I just wanted to swing a free ticket really quick, but I don't want any of these American Express cards that you have to pay for. It just doesn't make sense unless you really travel a ton and can use some of the extra travel rewards that you can get. In most cases, though, I think their customers are paying a fee with not a whole lot to show for it.
Debit Card Fees Restricted By the Senate, MasterCard Vowing to Fight it
Posted on
2010/06/03 |
0
Comments
Debit Card Fees Restricted By the Senate, MasterCard Vowing to Fight it
A bill approved by the U.S. Senate on May 13th will allow merchants to set minimum and maximum transaction amounts for debit card purchases. Previously, you could buy anything with a debit card, regardless of the amount, and for store owners – if the purchase was small, like a pack of gum, it meant paying more in debit card service fees than the profits made on the purchase. With this bill, merchants will be able to set limits to ensure their profitability on debit card purchases.
MasterCard and Visa have been concerned over credit and debit card regulation for a long time. They are credit and debit card processing networks, and don’t receive all of the interchange fees directly, but their revenues do depend on how much people spend on their cards. If merchants restrict purchases, they fear they will experience large drops in revenues as people will be less likely to use their cards.
MasterCard is determined to fight this bill until it is finalized into law. While the bill isn’t restricting the amount Visa or MasterCard can charge in interchange fees to merchants on credit card purchases, they’re concerned that the regulation on debit transactions will open the door to more regulation in the future.
Reuters reports:
“MasterCard U.S President McWilton said in a speech earlier on Sunday that MasterCard was “very concerned” about the amendment and “working very hard to make sure” that it would not be attached to the final financial regulation bill.”
The Credit Card Accountability, Responsibility and Disclosure act, which passed in May, 2009, was supposed to protect the general public from high interest rates and irresponsible acts made within the credit industry - as well as allow the government to better regulate this side of banking.
We have seen many positive things come from the legislation, but only a year later and many card issuers have found loop holes to pass their higher costs on to customers, according to an article on the Wall Street Journal.
The main protection the Credit Card Accountability, Responsibility and Disclosure Act provides the public is from credit card companies raising interest rates on existing accounts, and on accounts that are in there first year of being opened.
Some examples of loop holes being used by credit card issuers:
JP Morgan’s Chase raises the minimum payments from 2% to 5% of the balance. The law affects how much they can raise interest rates, but there is no such provision to protect the minimum payments.
First Premier Bank charges $95 dollars for processing fees, before the account is even opened. First Premier Bank offers credit to individuals with less than perfect credit scores and histories.
Citibank increased some of their customers’ interest rates before they made a late payment, and then offered a partial refund of finance charges if the customer paid their bill on time. This gets Citibank around the law of not being able to raise customer’s interest rates due to making late payments.
Another popular ploy is to charge high processing or annual fees when opening a new card. For instance many cards will offer you a $300 spending limit, and a $75 annual fee. Again the law doesn’t specifically protect you from this action, because it does not affect the interest rate. Many banks are using this method to pass some of the costs to you.
In August, it is expected that the Federal Reserve will release a new set of rules affecting the credit card industry that address a provision that would require card penalties to be proportional to a company’s actual costs, as well as require that card companies evaluate interest rates for customers who previous saw interest rate increases every six months.
That's a Kiss reference in the title if you didn't know. I wrote it on account of I'm posting again after 5 months. Every time I post I promise to get back on a regular schedule and I never follow through on that promise. This time will be different. Really. We've got a new president Obama and when he asks me if I will blog regularly I say to him "Yes I can!" So here goes.
Here are the last 3 credit card offers I got in the mail:
First up is one from National City, a Visa Business credit card. They just got bought out, but they're not gonna let that stop them from clogging my mailbox. Their offer is for me as a small business owner. They want to give me a 0% rate on balance transfer until December 2009 and then an interest rate somewhere between 8.99% and 21.99%. Why not just make it between 0% and 100,000%? There is no balance transfer fee on balances I transfer with the app, and that's actually a pretty good deal. I don't have any balances to transfer, but I do have to give them credit for the offer. They also will let me be part of their "points from National City" program, although they don't offer too many details on it. I'll pass on this offer but thank you National City I mean PNC.
Okey Smokey, next up is American Express with a Blue from American Express offer. Wait, I already have this card! Oh, wait, I see, they're not offering me a new card but want me to add more people to my card. Hee, hee, that ain't happening. I like this line:
"Additional Cards let you be with your favorite people even when you're not, so if a friend wants to pick up dinner or a family member is away on a ski trip, you can still provide for your loved ones with Blue."
Yeeeeaaaa, I'm almost going to put my friends on my card so they can buy dinner when I'm not around. Just what I've always wanted, the ability to live vicariously through others via my credit card bill. No thanks Amex but thanks for the funny stuff. (Or the funny stuff you're smoking, can I get some?)
I think this next one is for real a card offer from Amex... yep, it's theBusiness Platinum Card from American Express. It says I could get hold of some of the "pride that comes from carrying a Business Card recognized the world over for its power and prestige." If I get this card I'm going to be like freaking James Bond, man. I've been over this before. I'm not much of a traveler, and travel benefits are the only upside I see to a card with a hefty price tag like this one has ---$450. I could buy a Wii for less than that and maybe a game or two.
One other note: Chase sent me a letter telling me about changes to the terms & conditions on my account. They are: Overdraft Advance APR is 20.99% (prime + 15.99%), Cash Advance APR is also the same 20.99%, and the default rate is (prime rate + up to 26.99%), topping out at 29.99%. I don't know what an Overdraft Advance APR is exactly, but I hope I never get one that's for sure.
Here are the last 3 credit card offers I got in the mail:
First up is one from National City, a Visa Business credit card. They just got bought out, but they're not gonna let that stop them from clogging my mailbox. Their offer is for me as a small business owner. They want to give me a 0% rate on balance transfer until December 2009 and then an interest rate somewhere between 8.99% and 21.99%. Why not just make it between 0% and 100,000%? There is no balance transfer fee on balances I transfer with the app, and that's actually a pretty good deal. I don't have any balances to transfer, but I do have to give them credit for the offer. They also will let me be part of their "points from National City" program, although they don't offer too many details on it. I'll pass on this offer but thank you National City I mean PNC.
Okey Smokey, next up is American Express with a Blue from American Express offer. Wait, I already have this card! Oh, wait, I see, they're not offering me a new card but want me to add more people to my card. Hee, hee, that ain't happening. I like this line:
"Additional Cards let you be with your favorite people even when you're not, so if a friend wants to pick up dinner or a family member is away on a ski trip, you can still provide for your loved ones with Blue."
Yeeeeaaaa, I'm almost going to put my friends on my card so they can buy dinner when I'm not around. Just what I've always wanted, the ability to live vicariously through others via my credit card bill. No thanks Amex but thanks for the funny stuff. (Or the funny stuff you're smoking, can I get some?)
I think this next one is for real a card offer from Amex... yep, it's theBusiness Platinum Card from American Express. It says I could get hold of some of the "pride that comes from carrying a Business Card recognized the world over for its power and prestige." If I get this card I'm going to be like freaking James Bond, man. I've been over this before. I'm not much of a traveler, and travel benefits are the only upside I see to a card with a hefty price tag like this one has ---$450. I could buy a Wii for less than that and maybe a game or two.
One other note: Chase sent me a letter telling me about changes to the terms & conditions on my account. They are: Overdraft Advance APR is 20.99% (prime + 15.99%), Cash Advance APR is also the same 20.99%, and the default rate is (prime rate + up to 26.99%), topping out at 29.99%. I don't know what an Overdraft Advance APR is exactly, but I hope I never get one that's for sure.
Credit card companies are on the hunt again, looking for new customers using tantalizing cash back reward programs as bait. In this rough economy anything laced with money seems like a good idea. With careful consideration, planning and acknowledgment of the new rules that come with the new cash back, you can use this system to your advantage.
Basically speaking when credit card companies are talking about cash back rewards, they are saying that they will give you back a percentage of what you said on certain things. For instance, Discovery card gives a 5% cash back reward on fashion shopping, and lets say you make a $400 purchase, at 5% you get $20 back for buying things you were going to buy anyway. Typically speaking Discovery card actually rotates what goods are available for rewards, but generally rotate between gas, fashion thing, and amusement park tickets.
Many credit cards are making new rules to tie with these cash rewards, so be aware. If you pay late even once, you risk any and all rewards you accrued up until that point in time, though some will offer reinstatement fees to get you back into the rewards program. Many have annuals charges, or spending caps that make you eligible, for instance they may require a certain amount spent before its eligible for cash back. Some companies are even limiting what stores qualify for rewards. So if your applying for a card with cash back rewards make sure you understand all the terms and conditions, and any penalties that may come up.
There some things you can do to kind of get an edge on these programs. First and foremost, understand your contract, including you penalties for late payments, and spending requirements to remain eligible for rewards. Pay on time every month to stay eligible. Try not to keep a balance you can’t pay off in a month, especially since the interest rates are high in the double digits now. Keep in mind that many cards have a a maximum they will pay out, so spend what you would need to be eligible for rewards, but then not any higher as there is no added incentive to do so. Lastly watch out for expiration dates and changes half way through your program, as changes can happen with out any prior notice, and most companies have a history of doing so.
Today's credit card offer comes from Capital One. It is my special invitation to their No Hassle Miles Platinum MasterCard. The skinny:
Capital One No Hassle Miles Rewards Credit Card:
This is why credit card companies structure offers in so many different ways. They put them out there, see what response they get, and then make new offers based on that feedback. You never know what they might offer next.
- 1 mile per dollar on purchases
- 0% APR on purchases and balance transfers until February 2010
- 12.99% interest rate
Capital One No Hassle Miles Rewards Credit Card:
- 1.25 miles per dollar
- 0% APR on purchases until January 2010
- 8.15% APR
This is why credit card companies structure offers in so many different ways. They put them out there, see what response they get, and then make new offers based on that feedback. You never know what they might offer next.
Got the news today that my Amazon credit card is getting a big interest rate hike --- from the current 10.90% up to 14.24%, a raise of 3.25 percentage points. That's big!
I have the option to turn down this hike BUT if I do I can't use the card anymore. AND I need to use my reward points before rejecting the hike, otherwise I lose them.
I pay off my credit card every month, so I don't really care and I'll keep the card at the new rate. But many other people have been getting these notices recently, and they're not necessarily in the same situation in terms of keeping their balances at zero.
On Friday President Obama signed a new law that is going to stop card issuers from doing a lot of things like raising rates on existing balances or changing rates with like 5 minutes notice. That's good stuff, but I will guarantee you this: every person in American who holds 2 or more credit cards will see the interest rate go up on at least one of them. These card companies know how to take money --- tell 'em what they CAN'T do and they'll start thinking about what they CANdo to get the money flowing again.
I have the option to turn down this hike BUT if I do I can't use the card anymore. AND I need to use my reward points before rejecting the hike, otherwise I lose them.
I pay off my credit card every month, so I don't really care and I'll keep the card at the new rate. But many other people have been getting these notices recently, and they're not necessarily in the same situation in terms of keeping their balances at zero.
On Friday President Obama signed a new law that is going to stop card issuers from doing a lot of things like raising rates on existing balances or changing rates with like 5 minutes notice. That's good stuff, but I will guarantee you this: every person in American who holds 2 or more credit cards will see the interest rate go up on at least one of them. These card companies know how to take money --- tell 'em what they CAN'T do and they'll start thinking about what they CANdo to get the money flowing again.
It is difficult to imagine trying to live without the convenience of credit cards. Yet many get into financial trouble in part due to their misuse of credit cards. By following a few simple rules you can avoid the missteps and use credit cards to improve you personal finances instead of falling into the credit card traps.
First, don't use your credit card for loans. Pay off your balance each month. Pretty obvious advice but way way too many people don't follow it. If you use your credit card for a loans - 98% of the time that is a mistake and big risk to your personal financial future. Don't do it. There is a reason pretty much all the advice from financial advisers on credit cards starts with this - it is the most important advice.
Second, if you don't follow the advice above pay off your loan as soon as possible. Payment the minimum payment is huge mistake. You should not be making any discretionary purchases if you are not paying down your credit card debt substantially each month.
Third, pay your credit card bill in full each month on time. The huge fees credit card companies charge if you are late should be avoided. I will admit I have slipped up occasionally but take great care to avoid paying you hard earned money in exorbitant fees.
Fourth, if following the advice above (which you should be) get a card that pays you for all your purchases. Straight cash is simplest and usually best but if you really want to take the time and effort to try and get more advantage through the use of airline miles or some such other gimmick go ahead.
Fifth, ask for reduced fees and interest rates (which you shouldn't have to worry about since you shouldn't use the credit card for loans but if you do...). The credit card companies make a great deal off the use of credit cards and the cost of acquiring new customers is high so they are most often willing to negotiate. If you miss a payment or make the payment late (by mistake, once or very occasionally) ask for a reduction in the fee. The fees are far too high and just by calling you can likely get a reduction in the fee.
Sixth, setup an automatic withdrawal of your monthly payment (the full payment) from your checking account. Of course you need to be sure you have the funds to cover these payments in full or you may incur fees not only for your credit card but from your bank. Many banks (and credit unions) will allow you to pre-arrange to have checks or deductions covered by the bank in the event you don't have the funds in your account though their may be a fee if they cover a payment for you.
Seventh, if you follow the advice above credit cards are a useful tool. You get to buy items and don't have to pay for them for a month or so (while you can be earning money on you money in a savings account or money market account). And since you are getting paid for a portion of your purchases you not only get a free loan for a month but get paid for the privilege.
If you don't follow the first piece of advice though you need to look at low interest rates over being paid - but don't go down that path.
Related tip: create a emergency cash reserve. Until you have built up a cash reserve of 3 month of living expense you should not be making many discretionary purchases. Once you have 3 months saved away then continue to build that to 6 months (but during that time feel free to spend some of your earnings on discretionary items).
Without the cash reserve it is too easy for anyone to take a financial hit and before you have a chance to get back on your feet be severely punished. Credit card companies take advantage of those that don't plan ahead: Don't Let the Credit Card Companies Play You for a Fool. And as soon as you slip huge fees, penalties and interest charges will start and you may have trouble getting out of the cycle of huge fees and interest. It is best to avoid every getting into that cycle.
There are many advantages to having a credit card such as being able to purchase items online and make hotel and car reservations. The way you handle your purchases should be taken seriously. Following are a few tips and suggestions about credit cards.
- Credit cards are just like a loan -- you have to pay what you owe -- so try and not overcharge more than you can afford to pay.
- Keep track of how much you spend on your credit card. Remember that incidental and impulse purchases add up fast.
- Save your credit card receipts. Compare them with your monthly bill. Promptly report problems to the company that issued the card.
- Never lend your credit cards to anyone.
- Owing more than you can repay can damage your credit rating. That can make it hard to finance a car, rent an apartment, get insurance or even get a job.
- Pay your credit card bill on time, and in full when possible. If you don't, you'll have to pay finance charges on the unpaid balance-and it takes forever to get caught up if you just pay the minimum.
The No Hassle Miles credit card from Capital One has long been one of our favorite travel reward cards.
Now there’s a more rewarding, albeit more costly, alternative.
The new Venture VISA card is Capital One’s entre into the growing “upscale” market.
It offers pretty much the same rewards as the No Hassle Miles card, allowing users to redeem miles for hotels, rental cars and airline tickets on any carrier, with no blackout dates.
To figure out how many miles you need, just add two zeros to the price. If, for example, your ticket costs $150, you’ll be charged 15,000 miles. If your hotel costs $99, you’d need 9,900 miles.
The big difference is that the Venture card allows users to earn miles more quickly by providing 2 miles for every dollar spent, instead of the 1.25 miles per dollar with the No Hassle Miles card.
New cardholders can earn an extra 10,000 miles if they charge $1,000 worth of purchases during the first three months they have the card.
The drawback is the $59 annual fee — something most No Hassle Miles don’t have.
In dollars and cents, you must charge $2,950 a year to cover the annual fee and then another $1,844 to make up for all the miles that spending would have generated with the No Hassle card.
That means the break-even point is $4,794. If you charge more than that each year, you’re better off with the Venture card. If you charge less than that, stick with the No Hassle Miles card.
In our view, the Venture card should appeal to users with expense accounts and savvy consumers who charge virtually all of their personal expenses, from groceries to medical bills, to generate the most possible miles.
One final reason we like Capital One cards: If you travel abroad, you won’t be charged foreign transaction fees for items bought with foreign currency. Many cards ding you for 3% of the purchase price in U.S. dollars.
Think of your mailbox before the Great Recession. You got bills, grocery store circulars, invitations and magazines, but crowding them all out, we bet, were credit card offers.
Think of your mailbox before the Great Recession. You got bills, grocery store circulars, invitations and magazines, but crowding them all out, we bet, were credit card offers.
Credit card issuers mailed five to seven billion offers a year from 2004 to 2007, according to Mintel Comperemedia, which tracks such things.
But when the economy tanked, default rates soared and billion-dollar losses caused banks to become much stingier with new cards.
After hearing that only 2 billion offers were mailed out last year, we wondered who was still on the mailing list.
We asked Gregory Meyer, community relations manager at Meriwest Credit Union in San Jose, Calif. He says the industry is looking for consumers with:
Above average credit scores. A high score shows you pay on time and haven’t maxed out your credit lines, making it less likely you’ll default.
“Generally, we are looking at the upper echelon in credit scores. These are people with strong credit scores greater than 720.”
A profitable history. “Card companies love the ‘Steady Eddies,’ those who pay down balances while also paying some interest. That’s their bread and butter.”
The ideal customer is “someone who might charge a $2,500 vacation to their card and pay it off at $200 a month,” allowing the issuer to earn about a year’s worth of interest on the debt.
Maturity. “It used to be that 18 year olds were the ones card companies would solicit at class registration days on college campuses, exchanging beach towels and beer coolers for applications.”
Not anymore. Default rates in the 18 to 25 age group scared them off. Plus, marketing cards is now banned on most college campuses, and anyone under 21 must now have a co-signer for their cards.
Lots of assets. Card issuers are focusing on the affluent, pouring through databases to identify potential customers with money to spend.
“They may ask for all customers in a given zip code who are over 55, have $100,000 in their IRA, own a home for at least seven years, their mortgage is current, and they have a checking account with a payroll direct deposit.”
Subscribe to:
Comments (Atom)