Credit Card Listings

European branches of major credit card companies are bracing for the financial impact of April’s volcano eruption. Unprecedented travel delays prevented thousands of airline passengers from completing scheduled flights. As some vacationers scrapped travel plans, Americans stranded in Europe turned to credit cards and to the kindness of local business owners when ash-filled skies prevented them from returning home.

Now that flights have resumed across the Atlantic, lawyers and consumer advocates have started figuring out how a tangle of American and European laws can ease the burden of paying for unexpected stays and nixed holidays. According to reports in British newspapers, travelers stranded by European airlines may be able to seek reimbursement for unplanned expenses directly through their credit card companies. < Read more…

Financial security watchdogs have more to worry about with the discovery that social media site Blippy.com accidentally leaked the credit card numbers of at least five members to a search engine’s cache. Full credit card numbers appeared in cached search results offered by Google, alongside transaction information that could have been used to gain access to personal accounts. In reports from PC Magazine and The New York Times, security analysts noted that services like Blippy, Swipely, and Mint encourage consumers to share sensitive personal information while downplaying the risk of identity theft.

Technicians and company officials posted to Blippy’s blog and Twitter account throughout the week, assuring site members that the glitch was limited only to a handful of users holding accounts from either of two specific card issuers. T Read more…

Since its inception in August of 2007, more than 22,000 guests of Smart Balance Transfers have left our site with new, 0% balance transfer credit cards.  Most of these cards provided guests with 0% interest rates for 1 year.  And because of these deals, it is quite possible that consumers have saved a mind-blowing $9,885,695 during the past three and a half years.

This estimate of nearly ten million dollars in savings is based on the assumption that the average visitor transferred $3,000 from a credit card with a 14% interest rate.  Because we do not collect data on individual visitors, these figures were used as modest estimates. 

If, for example, the average interest rate were increased by 1%, guest savings skyrockets above ten million dollars.  The numbers get even crazier when the average balance transfer amount is increased.  If guests only transferred half of the average household credit card debt, around $4,000, these Smart Balance Transfers visitors would have saved close to thirteen million dollars.  Yes, THIRTEEN MILLION.

Balance transfers are an extremely effective tool for people with good credit who currently carry balances on their credit cards.  With a 0% balance transfer, consumers pay a small balance transfer fee, then get up to 15 months to pay down their credit card debt without mounting interest charges.  The money that would otherwise be wasted on interest can then be used to reduce the principal portion of the debt.  By doing so, a person can often reduce the time it takes to get out debt by 30% in just one year.

Doing balance transfers is easy and it is baffling why more people do not take advantage of these offers.  Perhaps it is a lack of understanding; perhaps it is a fear of facing up to credit card debt.  Regardless of the reason, opting not to take advantage of 0% balance transfers can prove costly.  Just think of what this site’s visitors could be doing with the nine million to thirteen million they have saved in the past few years.  And then join them.

Whether you are filing at the last minute or using IRS form 4868 to get an automatic extension of the time to file taxes, if you are using a credit card to pay taxes, you’re going to be paying fees.  On the IRS website, three companies are suggested for use when you pay by credit or debit card.  Of these three companies, two charge 2.35% fees and one charges a 1.95% fee.  Clearly, the company to choose is the one with the lower fee.

The lowest fee company the IRS suggests for paying taxes by credit card is RBS WorldPay, Inc.  While .4% may not seem like much, it adds up when you are making multi-thousand dollar payments.  Unfortunately, it is not the fees charged by payment processors that will hurt you most.  Some credit card companies may consider these payments to be cash advances.  Since cash advances come with fees of 3-5% and interest rates that approach 30%, it is important to call your credit card company before you pay taxes by credit card.  Perhaps one of your companies may charge a cash advance fee and interest rate with these transactions, while another may not.

If your credit card company charges a cash advance fee and a higher interest rate on tax payments, you may want to consider doing a balance transfer to a 0% credit card if you will not be able to repay your balance immediately.  With a 0% balance transfer, you will once again have to pay a fee of 3-4%, but you will not have to pay interest for a year.  On a $2,000 payment, this can equate to savings of $500 or more in interest over the course of a year.

Regardless of the costs associated with paying taxes by credit card, it is imperative that you file either your taxes or an automatic extension by April 15th.  Failure to do so can lead to harsh late filing fees.  Additionally, failing to pay all of your taxes on time can lead to equally harsh late payment fees-not to mention unfriendly dealings with the IRS, whose collection methods make credit card companies seem polite.

A recent article from Smart Money highlights an interesting quirk in the credit scoring system that, utilized properly, could be advantageous to people who have recently closed credit card accounts.  According to the author, “In a little-known quirk, FICO counts the credit limits of closed accounts toward utilization ratios only as long as there’s a balance on that account.”  This quirk could help limit the damage of credit card account closures.

Credit card utilization ratios account for approximately one third of your credit score.  This ratio is determined by dividing your current balances by your available credit.  Thus, if you have a $10,000 combined credit limit and $2,000 in credit card debt, your credit utilization ratio is a healthy 20%.  The lower your ratio the better, as high utilization gives the appearance that you are maxed out.

During the past year, many people have closed credit card accounts under threat of interest rate increases.  And for good reason.  Some credit card companies raised interest rates to 29.99% on customers that chose not to opt out of rate increases.  For many reasons, including anger towards credit card companies, some people pay off their closed accounts immediately.  This, unfortunately, reduces theoretically available credit, thus increasing credit utilization.

A good way to deal with a closed account is to pay down the balance significantly, but leave one or two hundred dollars of debt on the account.  This will limit your interest expense and help your FICO score from plummeting when the available credit on the closed account is removed from your credit profile.

Some people may not need to work this loophole to preserve their credit scores.  However, anyone looking to get a new credit card, house, or car would likely benefit from having a higher credit score.  If you fall into this category, then you may want to use your closed credit card accounts to your advantage by keeping a small balance.

The charity said that it had noticed many more middle-class families – people who owned their own businesses and home owners – approaching them for advice.

In total the charity, which is mostly funded by public money, dealt with 7.1 million cases, more than a million extra on the previous year’s tally of 6 million. It said that 2.1 million individuals had received advice from their local bureaux in total, up from 1.9 million the year before.

One area that saw the biggest increase was fuel debts. In total the charity dealt with 110,000 cases where someone could not afford to pay their gas or electricity bill – nearly as many people who could not afford to pay their mortgage.

Teresa Perchard, director of policy at the charity, said: “Some groups such as pensioners have received extra help through winter fuel payments. But p

Read more…

First PREMIER® Bank raised eyebrows late last year when they marketed a credit card with a 79.9% interest rate. The subprime credit card issuer rather quickly ceased this “promotion” but has continued marketing subprime credit cards loaded with fees:  program fees, annual fees, monthly maintenance fees, and even an automatic credit limit increase fee that amounts to half of any credit limit increase.  And then the offers disappeared.

On www.firstpremier.com, an application link leads to the following message:

“Based on the recent passage of Federal Credit Card legislation, the credit card you showed interest in is no longer available.

If you are still interested in a credit card offer from First PREMIER Bank, please click “Continue” below to apply for the product shown above. Be sure to r

Read more…

Getting a 0% APR on balance transfers for 12 or 15 months is not as straightforward of a process as it may seem.  The key problem balance transfer credit card applicants face is buried in the fine print.  Here are two things to look for that can help you figure out how long your 0% APR balance transfer will last.

1.)  0% APR on Balance Transfers for “up to 12 Months”:  A number of credit card companies advertise 0% interest rates on balance transfers for “up to” a certain amount of months which can be up to 15 months.  However, any credit card that advertises a 0% for “up to” a period of time likely has a nasty little trick in the fine print.  When you apply for one of these credit cards, take a close look at the terms and conditions.  You will find that some applicants can get a 0% APR for 12 months, while others may only get this rate for 6 months.

If you have excellent credit, a low debt to income ratio, and your credit utilization is low, you should have nothing to worry about:  you’ll likely get approved for the full advertised rate.  However, if your credit is simply good, you may qualify for the shorter 0% period.  This can be a problem if you want to transfer your balances online, as you will not know how long your rate lasts until after your application is processed.  Thus, if you apply for a credit card that offers a “0% APR for up to 12 Months,” wait and transfer your balances when your card arrives in the mail.

2.)  0% APR on Balance Transfers for 12 Months:  A credit card that advertises a 0% APR on balance transfers for 12 months with no “up to” in the advertisement or fine print will give you the full advertised rate if you are approved.  These are the best types of balance transfer offers, as you know what you will get when you apply. 

Unfortunately, most companies do not use clear language when it comes to 0% rates.  One company that does is Discover, which is one of the few straightforward credit card companies.

Ultimately, if you have excellent credit, you can likely get the best deals on balance transfers, even if the offer is for “up to 12 months.”  However, if you don’t have pristine credit, be sure to wait until your credit card arrives in the mail before transferring balances to a card that advertises a 0% APR for up 12 or 15 months.

Faced with $17,000 of credit card debt at a 34% interest rate and monthly payments of $800, Margie informed me that she was contemplating suicide.  I fear that she is not the only person out there with this mindset, and I think its important to take a moment to consider the range of options available to people in similar situations.  Some of these options are not ones I would normally recommend.  However, given the gravity of this discussion, I am going to list every strategic option possible.  Please note that before taking any of these steps, it is a good idea to speak to a certified financial advisor or an attorney.

1.)  Balance Transfers:  In the past, it was much easier to get enough credit at a 0% rate to transfer huge balances.  However, people who have good credit, but high debt to income ratios and high credit utilization ratios may not be able to get sufficiently high credit limits on large amounts of debt.  Nevertheless, this is an option, especially for people with excellent credit and debt of less than $10,000.

2.)  Consumer Credit Counseling:  Generally, most people with more than $10,000 of debt can get into a consumer credit counseling program.  These companies work with your creditors to get your interest rates reduced, often substantially, so that you can afford monthly payments.  Don’t get these companies confused with the pennies on the dollar advertisements you hear on the radio:  you want to work with a non-profit organization, such as those which can be found at www.nfcc.org.

The above two options will likely have the least impact on your credit score.  Of the two, consumer credit counseling is likely the best for someone with $10,000 or more in debt.  The following options are not ideal and I am not recommending them in general.  However, any person who is contemplating suicide because of credit card debt should be aware that these options exist.

3.)  Bankruptcy:  While not ideal, bankruptcy can help you get your finances under control.  Credit card debt is not discharged in bankruptcy, but you could end up with more agreeable repayment arrangements.  Speak to a lawyer regarding this option.

4.)  Stop paying your bill:  I must stress that I do not condone this option and am in no way recommending it.  However, if you stop paying your bill, your credit card company may offer you a repayment program at a lower interest rate.  This option could cause significant harm to your credit score and may be unsuccessful, but if you are deciding between life and death, you should consider simply walking away from your debt and trying to negotiate with your credit card company.

Options three and four should be discussed with an attorney.  I am not advocating either method.  However, if you are contemplating suicide because of your credit card debt, please take a deep breath and think about all the things you have to live for.  No matter how bad your debt situation is, there are always options.  And suicide is not one of them.