Credit Card News News and Advice

ArriveFinancial.com is pleased to announce a new blog carnival: The Carnival of Consumer Credit. The first edition of this carnival will be published here at Arrive Financial on Monday, October 20, 2008.

Think the mess on Wall Street hasn’t hit home yet? Think again. For millions of consumers, today’s economic crisis means fewer credit card approvals, lower credit lines, and higher balances.

American Express announced Monday lower minimum standard interest rates on its Blue, Blue Cash, Blue Sky, and Clear credit cards for consumers.

As the economy continues to lag, credit card banks are suffering as more and more cardholders pay late—or simply don’t pay at all. How do credit card companies compensate for money its customers don’t pay back? By raising fees and interest rates. One of the most profitable income sources for credit card companies is the “default APR”, or the higher interest rate the bank charges you when you make a late payment.

With proposed legislation dubbed the Credit Cardholders’ “Bill of Rights”, New York Congresswoman Carolyn Maloney is hoping to reign in a number of credit card industry practices hurting U.S. consumers.

We’ve all been there — stuck on the phone with a customer service rep at a credit card company who seems to offer absolutely no help whatsoever. Whether we are calling because we want a credit limit increase, our card was declined, we want to lower our interest rate, or we are trying to clear up a late fee or interest rate increase. Here are some tips for talking with your credit card company to make sure you get the treatment you deserve, not the customer service runaround.

Was your credit card application denied? Was it denied even after you received a pre-approved offer? Here are some common reasons why your credit card application may have been denied.

Sick of receiving credit card junk mail? You can easily elect not to receive any further unsolicited credit offers by visiting Opt Out Prescreen.

Opt Out Screen wills stop most incoming credit card offers, although a few may still get through. That’s because Opt Out Prescreen only stops credit solicitations that are based upon your credit report. Signing up on the website will opt you out of credit card offers for five years. You can also opt out forever in writing.

It’s a fact: your credit cards need you more than you need your credit cards. They spend a lot of money on advertising to make you think that it’s the other way around, but without customers paying fees and finance charges, credit card companies would go broke.

If you are motivated and savvy, you can use this to your advantage and negotiate with your credit card issuer on everything, including your interest rate, annual fee, credit line, even your rewards.

Credit cards want your business. Whether you carry a balance (and you are a profitable customer), or you pay-in-full each month (but could someday change and become a profitable customer), your credit card doesn’t want to lose you. Here’s how to negotiate with your credit card on some of the most common terms:

Credit cards love to dish out teasing promises: “0% interest on purchases and balance transfers for 12 months”; “9.9% fixed APR”; “3.99% life-of-balance transfers!” But these promotional rates are sometimes just a guise; they have little to do with how much a credit card will actually charge you. If you carry a balance on your credit card – even sometimes – the interest rate you pay can make the difference between credit cards being a convenient financial tool and or a personal finance nightmare.

Sorting Out Credit Card Interest Rates

Every credit card has to clearly list its interest rates, fees, and other card member terms – either on the back of a printed card solicitation or on a webpage linked from the bottom of a credit card application page. (Hint: Check the fine print at the bottom). Knowing how to read these credit card terms is critical to finding a credit card that will not rip you off.

When reading credit card terms, you will encounter several different types of interest rates. Here is what they all mean:

« Previous Page — Next Page »