The Wall Street Journal reports this week that Citi credit cards mailed 346 million credit card offers to U.S. consumers in the third quarter of 2011. That’s a lot of junk mail.

Citi’s move comes following several years of ceding market share to other credit card issues. Reports the Journal:

In terms of dollars spent by U.S. consumers on Citi credit cards, the bank ranks a distant fourth, behind American Express Co., J.P. Morgan Chase & Co. and Bank of America Corp., according to the Nilson Report.

In addition, Citi hopes to convince more people to stick with credit cards instead of using debit cards. Credit cards will be more profitable for the banks when expected legislation takes hold that would limit how much banks can charge merchants each time you swipe your debit card.

What does Citi’s scramble for new credit card accounts mean for you—the consumer? Low interest rates and big sign-on bonuses.

• Get a 0% APR on balances transfers for 21 months with the Citi® Diamond Preferred® Card.
• Or, get $500 in gift cards from bonus points earned in your first year of card membership.

###

Obama has pledged to crack down on the payday loan industry, which critics say charges usurious interest rates and takes advantage of poor and uneducated Americans.

Plans that Obama has specified would include a 36 percent cap on the interest payday loan companies can charge and simplified information about loan fees, payments, and penalties. For example, payday lenders currently may make it very easy for borrowers to “extend their loan” and postpone payment, but often do not disclose the additional fees or finances charges that will be added to their balance.

Still interested? Learn more about the Visa Black Card here »

Social Lending

• Should You Consider Social Lending? by Matthew Paulson, American Consumer News.
• Lending Club Review: A Leading Peer To Peer Lending Network by Silicon Valley Blogger, The Digerati Life.

Auto Loans

• Buying A Car? Get Your Financing First by The Smarter Wallet

Credit

• New FICO Credit Scoring System in 2009 by CreditAddict.

Home Loans

• Deciding When to Refinance Your Mortgage by nickel, fivecentnickel.com.

Credit Cards

• A Complete Guide to Credit Card Terminology by CreditShout.
• Continental Finance Mastercard Credit Card Review by Mr.CC, Ask Mr Credit Card’s Blog.
• Bank Cards: Should You Use Them as a Debit or Credit Card? by DJ, The Family Wallet.
• Best Charity Credit Cards by Jim, Blueprint for Financial Prosperity.
• How to Avoid Late Fees on Credit Cards by American Entrepreneurship, American Small Business News.
• Anyone Can Apply For a Business Credit Card by Patrick, Cash Money Life.

Student Loans

• Types of Student Loans in the United States by praveen, My Simple Trading System.

Debt

• 5 Simple Steps To Making Your “Get Out Of Debt” Resolution Stick – Part 3 by Michael Geoffrey, Debt Smackdown.
• How to Tell Your Credit Card Company You Can’t Pay by Credit Card Assist.
• Tips for Negotiating a Credit Card Payoff by Apply4-Credit.
• How to Find the Debt Relief Company That is Right For You by Discover Debt Freedom.
• New Year’s Resolution: Get Out of Debt For Good by Debt Free Destiny.
• Make Your Own Debt Reduction Plan by Destroy Debt.
• Pay Off Debt Or Invest Your Money? by William Blake, Debt Smackdown.

That’s it for this issue of the carnival. Stop by next month for the sixth edition. Interested in participating? Read the submission and hosting guidelines. Did you submit but not see your post? It’s probably because the article wasn’t specifically about credit or debt. We try to include all posts as long as they are on topic. Thanks!

The new credit cards rules will stop credit card companies from using several practices that punished customers relentlessly for the smallest mistakes.

Your interest rate can’t go up just because you pay a day late
Credit card companies will no longer be able to increase your interest rates just because you’re a day or two late…you’ll need to be at least 30 days late before they can assess a fee. They will also no longer be able to increase your interest rates just because you are late on another credit account. And, they will need to provide you with a statement at least 21 days ahead of the due date, so you’ll have plenty of time to make a timely payment.

Your payment won’t be applied to low APR balances first
Next up in the new credit card rules is how credit card companies assess interest rates. Credit cards are famous for applying your payments to balances with the lowest interest rates first, meaning if you transfer a balance at 0% and then charge an item at 18%—you’ll be paying 18% on that purchase every month until your transferred balance is paid off. The Fed said no more. Although that sounds like good news (and it is), there is a downside: Credit card companies will likely do away with 0% balance transfer offers. If you can, get one now!

No more outrageous fees on bad-credit credit cards
Finally, the Fed also imposed a new rule that limits initial set-up fees a credit card charges to half the available credit limit. (A common practice for credit cards available to people with damaged credit is to charge $275 in fees on a $300 credit line). Therefore, in order to use the credit line and begin building credit again, they must first pay down the fees.

While these new credit card rules provide some long overdue help for consumers who have fallen into credit card debt, they come with a cost to those who have overly relied on credit cards to finance their lifestyles—credit card companies may further tighten credit and offer credit cards to only the best qualified borrowers. That in turn, will force a lot of people to ween themselves off of credit cards, perhaps for good.

Be sure to check out the dozens of timely blog posts included in the carnival commenting on everything from what credit cards are doing to customer during these weird economic times to digging out of debt.

High yield savings accounts are bank accounts that you access entirely online (or via an ATM card). The bank can afford to pay you a much higher rate than normal savings accounts because they don’t have to handle in-person transactions, mail statements, or even maintain a branch in your neighborhood.

You simply transfer money into your high yield savings account from an existing checking account, make deposits as often as you like, and sit back and watch your savings grow. When you need to withdraw your funds, you can usually do so at an ATM, or transfer them back to another bank account–a process that simply takes 2-3 business days.

Recently, Kiplinger’s magazine voted FNBO Direct the best online savings account of 2008 for it’s ease of use, great interest rates, and $1 minimum required to open an account.

FNBO, or First National Bank of Omaha, has come onto the online, high yield savings account scene only in the past year, but shows a lot of promise.

Interested in learning more about high yield savings accounts or opening an account? Read these high yield savings account reviews »

When selecting a new credit card, you want to avoid applying for a card and then being declined, as that will temporarily lower your credit score. Still, you don’t want to apply for a credit card that has a high interest rate or annual fee if you could have qualified for a better card.

The best approach is to research your own credit score, and then apply for a card that usually approves people with scores in that range. There’s no guarantee you’ll get approved, but you will up your odds of getting the best card for your current credit situation. Review our most recommended credit cards by credit or FICO score here:

• Best credit cards for credit score 750 and up
• Best credit cards for credit score 700, 710, 720, 730, 740
• Best credit cards for credit score 650, 660, 670, 680, 690
• Best credit cards for credit score 600, 610, 620, 630, 640
• Best credit cards for credit score 550, 560, 570, 580, 590
• Best credit cards for credit score 540 and under

Banks shutting down unused credit card accounts

Credit card issuers want you to use any credit cards they’ve issued you so they can earn revenue from interest and transaction fees. If you have a card open but do not use it, you’re not only unprofitable, you’re also risky.

Why?

Because you have a credit line–whatever it is–that you could tap at any time. Since you’re not using your card regularly (and making payments), the credit card company doesn’t know if you might just go charge $1,000 to your card and then skip town.

In today’s tumultuous economy and credit market, credit card companies want as little risk as possible. So they’ve been reducing people’s credit limits and, in many cases, canceling accounts that haven’t been used in six months, a year, or longer.

A closed credit card will hurt your credit

Your credit score is extremely sensitive to how much credit you have available relative to how much you have used (i.e., any outstanding balances). An unused credit card account helps your credit score because it increases your overall credit line and, if you never use it, doesn’t contribute to your outstanding balances.

When that account is closed, your total available credit goes down, and so will your credit score.

Keep your account open

To avoid creditors closing your unused credit card accounts, use each card you maintain at least once a month. Use the card to pay a recurring utility bill, for example. Then, pay the bill in full every time. The amount of the transaction doesn’t matter, but the recurring use will keep you off you creditor’s radar screen when they consider closing unused accounts.

Credit Cards

Mr. CC can’t believe he fell for it, reminding us all to beware too-good-to-be-true credit card promotions, because there is always an expensive catch. On a similar note, WWS asks are credit cards friend of foe? Jim suggests that local banks may offer no-fee 0% balance transfers, and CreditShout has a roundup of the best gas credit cards.

LAL asks whether credit cards could be the next meltdown, Mickey C. has some helpful tips to not abuse your credit card, and CreditAddict shows us how to evaluate credit card balance transfer offers. (And balance transfer offers are a hot topic: Nickel also steps in with some more 0% balance transfer offers).

Gary Fehdrau presents the 10 Rules Of Credit Cards and Credit Card Assist joins in with 7 credit card rules to live by. The Smarter Wallet asks why not use credit cards to reduce your mortgage?. Finally, Apply 4 Credit asks how much plastic is too much?

Your Credit

Two entries in the credit category this week. Michael Bass ponders a tough question many of use face from time to time: Should you cosign for a friend or family member? Next, Joseph asks are credit reports and scores really free?

Loans and Interest Rates

Don says finding student aid to attend community college was never easy. Now it has become even tougher as major banks and other lenders are cutting back or ending loans to students attending a two year college. Here’s his article on the topic: Big banks ending student loans for community college students.

Debt

Patrick @ Cash Money Life asks should you pay a debt consolidation company? Dave doesn’t think you ever should, and explains why in his post three reasons why you should never use a credit counseling agency. Jeremy Zongker presents 76 ways to save money while saving the environment, and Neko presents 8 great ways to beat holiday debt. Last but not least in the debt category, DebbieDragon presents the article: Drowning in debt? Here’s how to rescue your finances.

Other Personal Finance

On topics not directly related to credit and debt, KCLau investigates if either one of two joint-account holders dies, who gets the money? and Save Money presents 101 ways to magnetize money.

Thanks again to everybody who submitted. The next edition will be published during the week of December 15th at American Consumer News. Submit your articles here.