Cardratings.com Monthly Newsletter October 2004
October 1, 2004
Welcome to our award-winning website's newsletter. We have been educating consumers about credit cards since 1998 and have been featured by NPR's Morning Edition (National Public Radio), The Wall Street Journal Radio, Smart Money Magazine, PBS, CNN Money and many more. Thanks to consumers like you, we have become the most comprehensive free source for comparing card offers.
Declining Credit Card Delinquency Rates
Credit card delinquency rates are reported to have fallen to a four-year low, but this is largely a reflection of liberal lending policies by credit card issuers. (10/01/04- Originally published 8/30/04)
Your Credit Rights during Bankruptcy Proceedings
Bankruptcy should always be a last resort. However, if you decide to file for bankruptcy, then it is very important that you know your credit rights before doing so. (9/17/04)
Credit Card Rates are Starting to Climb
Recent interest rate hikes by the Federal Reserve have resulted in rate increases for many variable rate cardholders. Unfortunately, fixed rate cardholders are not safe from rate hikes either. (9/15/04)
A "crash course" on student credit cards for young adults heading off to college, whether newbies or old pros. Also on the recommended reading list for parents of college students! (8/26/04)
Redeeming Unused Credit Card Reward Points- Your Options
Can't use those 50,000 frequent-flier miles because they're in 10 different programs? You can consolidate and redeem those points. (8/24/04)
Your Credit Rights under the Equal Credit Opportunity Act
Protect yourself from credit discrimination - The Equal Credit Opportunity Act requires creditors to be fair. (8/23/04)
Free Credit Related Articles:
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Credit Card Debt Topics:
Credit Card Debt Reduction Tips
Dealing with Christmas Credit Card Debt
Low Introductory Rate Credit Card Offers Not Always Destined for the Junk Pile
Don't Let "Spring Break" Expenditures "Break" You!
Fixed Rate vs. Variable Rate Cards
Credit Card Cash Advance Pitfalls
Credit Insurance
Credit Card Reward/Benefit Topics:
America's Love Affair with Card Rewards/ Rebates
Credit Cards can Help Reduce your Rental Car Bill
Credit Cards for the Rich and Famous
The New Travelocity Credit Card
The Eufora Card is Worth a Look
Saving for College with a Credit Card: The New 529 College Savings Plan Rebate Cards
Cashback or Airline Reward Credit Cards - Which is Better?
Cut Your Gas Bill by 5% with Gas Rebate Credit Cards
Charge It! Perspectives on Retail and Department Store Credit Cards
Credit History/Score Topics:
Secured Credit Cards- Consumer Tips
Demystifying the Credit Scoring/ Rating Process
Protecting Your Credit Following ID Theft: A Step-by-Step Plan of Action
What is a Mixed or Split Credit Report?
Misc. Credit Related Topics:
Is it Wise to Pay Your Taxes with a Credit Card?
Teens and Credit - A Recipe for Disaster?
Credit Lessons for Retirees
Debit or Credit? Which do you Vote for?
Card Registration Services
Disposable Credit Card Numbers
California Legislation Helps Curb Card Fraud
Hot Topics...How many credit cards should I have?
"I just got finished paying off my credit card debt and would like to know how many of the credit cards I currently have to keep. I am aware that the amount of available credit will affect how much money I will be approved for when I go for a mortgage. However, I need more detail on which cards are the best to hold onto and how many to hold onto. Should I lower my credit limits on certain cards and keep those or is it better to just cancel those cards with high credit limits? Any and all advice would be greatly appreciated as I am thinking about buying a home." Click to Read Replies
More topics...
daphne asks, "Can anyone suggest a credit card with a 0% on balance transfers that doesn't require a min. payment of 2%? I need to transfer one card with an $11,000 balance A payment of $220.00 doesn't work for me. I keep getting invitations in the mail but they all require 2%. I don't think my credit will be a problem (It might become one if I don't get this resolved) Please help."
Ira replies, "Just keep looking. 0% interest, 0% balance transfer fees keep popping up all the time. However, be advised that the balance transfer fees are usuall capped at $50.00, so on an $11,000.00 transfer, $50.00 isn't so bad, considering what you're saving overall."
godhelpus asks, "Obviously, I'm new to the Balance Transfer technique, so advice given in "remedial" terms will not be taken offensively...The intro APR on my current card (Visa/BofA Finan. Rewards Gold) is supposed to expire as of Sept. 24th, so this is a last minute request for veteran advice. My current intro rate is 0% on Balance Transfers and Purchases. I want to transfer approx. $3225 to a new card w/, ideally, similiar intro rates. The whole process started sounding a little too simple, so that's an automatic sign that I'm being careless. What step am I missing? I need to check for APR and BT fees, right? Once I transfer the $3225 to the new card, am I free to close the previous account?"
Reply from Verne, "There's no reason to close the account you are transferring from. Keep it open - they may give you a good balance transfer rate down the road. The more accounts with available credit you have, the better able you'll be to do the BT dance."
Ira replies, "I've done the BT shuffle more times than I care to remember. To quote the Nike commercial, "Just do it!" If it's merely a one-to-one transaction, move funds from card A to card B, I agree with Verne. There's no reason to close the old card, and lots of reasons to leave it open. Most importantly, your utilization ratio looks better. On the other hand, if you're like I used to be and have 6 or 8 cards going at any given time, bouncing funds from one to another like a circus juggler, you don't want to have too many active cards in your portfolio because you then have too much revolving credit available. In other words, you have to strike a balance."
credithelp asks, "I have a credit card tha i closed in 2002. Back in 2000 there is one 60 day late on there. Does the 7 year mark begin in 2002 with the date of last status or does it start in 2000 when i had the 60 day late? Right now its been long enough that creditors dont worry about it but i was curious."
cabledude replies, "From what I seen on personal experience it is 7 years from the late. I had a few roll off as they past 7 years and a few did not. The ones that did not just took a letter to the CRA and they were GONE!. Let's see your working on 5 years for this late. If you paid this in full and it has been five years have you disputed the late? I had a few that were over 5 years on good accounts, paid off, they simply removed them. I actually had an old JC Penny account that had an old 120 day late from 6 years ago. Someting my wife did. The account was paid in full. I simply wrote them a letter and they removed it, but they did verify it the first time through a CRA dispute. You are right that the 60 is proabably not killing your score, but maybe 10-15 points depending on your total credit picture. I would try to remove it and most likely you'll be succesful after a few attempts, maybe even the first."
kgladysg asks, "I have a credit card from MBNA which had a fixed rate of 7.9 until two months ago when it was raised to 17.98 fixed rate. I have a balance of $10,000 on the account. I called to check and see why the interest rate had gone up so high and was told it was because my balance was not changing. I am close to my credit limit on it and was told nothing could be done about the rate until my balance went down. I have always paid more than the minimum payment but now it is to the point where I just pay the minimum. I was informed that the interest rate would be changed soon to a variable rate or I could refuse it and keep my 17.98 fixed rate. Would it be to my benefit to change to the variable rate? It seems it can't be worse than the 17.98 fixed rate I have now. Please help!! I have a credit rating of 713. I guess I can try to find another credit card to transfer balances to but I imagine that's easier said than done."
Polonius replies, "You don't tell us what that variable rate is, so how can we give you any help about which offer is in your best interest? MBNA obviously can raise your rate at any time. It charges 24.99% to 29.99% to some of its credit cardholders. So you can't assume the variable rate will be better for you. With your credit score, you should find it pretty easy to get a better deal from a different company. Apply, transfer your balance, and tell MBNA to shove it. What is getting into these banks these days?"
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| Recent Credit Card Reviews by Consumers Like You |
Following is a sampling of the latest consumer reviews that can be found by clicking the "Cardholder Reviews" link above. We take pride in the quantity (our site offers approximately 15,000 reviews of 859 different credit cards) and quality of the consumer reviews that can be find on our site. New reviews are added on a daily basis. The cards are rated on a scale from 1 to 5, with 5 being the highest recommended. Credit Card: Radio Shack AnswersPlus Card Review: As good as Radio Shack is, it's a shame their credit card system is managed by Hurley State Bank. This customer service department uses a computerized system that even they can't access, but makes all their decisions for them regarding credit approvals, increased credit lines, or disapprovals regardless of the customers past history with their bank. Whatever the computer says is their final word. My final word is, "If I live to be a thousand, I'll never spend another penney in a Radio Shack Store as long as they're connected with Hurley State Bank". Credit Card: Verizon Visa® Card Review: I mustve had this card forever!!!! I got this card in college and I still have it. They charge you for everything. I got charge 54 dollars because I made an online payment and missed a digit in my account number and the payment went though. NEVER GET THIS CARD. I got no benefits from it, just headaches. Their customer service also is unsatisfactory. People just stay away. Credit Card: Citi® Diamond Preferred® Rewards MasterCard® Review: The Citi Diamond Preferred Rewards MasterCard beats all other rewards cards hands down. You get 5 points for every dollar spent at gas stations, grocery stores and drug stores and 1 point per dollar at other places. I got 5,000 bonus points upon approval, enough for a $50 gift card! You can also get a 10% discount on gift cards purchased through Citi's website. I would recommend this card to anyone. Credit Card: AAA Platinum Plus Visa® Review: I had the exact same experience! I am so relieved to know that I am not alone. AAA sent me the card with a low 9.90 APR. I have paid my account on time and also paid more than the minimum due at times. I received a notice that my APR was being increased to 19.98 if I didn't reject this in writing, well I rejected it. They then sent me another notice in June or July. Well since I had already rejected it in April I didn't think I needed to reject it again. In August they increased my APR and after complaining to several customer service reps, they sent me another notice this month stating they are increasing it again if I don't reject it in writing. I am preparing to contact an attorney and of course write everyone affiliated with MBNA. I have never experienced anything like this and feel this is terrible for decent people to have to go through. Credit Card: Plains Commerce Bank Total Visa® Card Review: These people are impossible to reach by phone, and they did not answer my last three letters to them regarding problems with the card. Even though the card payments are up to date, the card in continually refused for no reason. I absolutely can not reccommend this card. it has been nothing but a headache. Credit Card: Outdoor Privileges Platinum MasterCard® Review: I got this card after my previous REI VISA card was discontinued. REI did not sell the names, they were sold by the bank after REI discontinued the relationship because the bank could not meet REI's terms. REI established a new VISA card with US Bank, who continues to service the REI VISA today. Between the two cards, I prefer the REI VISA because of its reward plan. The Chase mastercard is good if you buy a lot of stuff from certain outdoor retailers who give discounts to cardmembers. But as a general-use credit card, you're much better off with the REI card since it gives a straight 1% rebate. The Chase card calculates its rebate based on how much you charge. For example, you get a 0.25% rebate on the first $2000 of purchases. Credit Card: Sam's Club Card Review: I have had a sams membership since 1998. In March of this year I was making a purchase and the cashier stated I was pre-approved for $600.00 worth of credit. I was skeptical at first because I have damaged credit, I asked a few questions and was satisfied and had the cashier charge my purchase that day to the card. I then proceeded over to the membership desk to get my new card that would also access my credit account. I have had no problems so far making payments. My payment is due by the 22nd of the month and I usually send in my payment two weeks prior to that, and all payments have posted in a timely manner, even when making multiple payments during the month. I never qualified for a Discover card, which is the only other credit card that is accepted at my Sams Club here in Michigan, and am thrilled to have this card account, it is so convenient especially at the end of the month when cash my be tight to be able to charge and pay later. And the fact that you can you this card at Walmart is just an added bonus, although I wish it could be used at walmart.com. The 90 day same as cash option seems a good feature although I have yet to use it, because of the low credit limit I have currently. With any credit account you must act responsibly, send payments in on time, and ensure enough time for the creditor to receive and post the payment. Credit Card: Philips Platinum Visa® Card Review: Today I just canceled this credit card account for unfair and poor customer service. Although I opened this account one year ago, I never got the promotional CD player. I called numerous times and every time I got the same assurance that it would be sent to me shortly. But that never happened! This is not fair that this credit card is attracting customers with this perk which is simply a joke! Credit Card: First Financial Bank Student Card Review: I am an 18 year old freshman in college. I got this card my senior year of high school. I have paid no interest, and I, like many other people here, have gone over my credit limit, and was pleased by the way they handled it. They asked me to make an immediate payment of $15 to keep my good credit so I did, and that was that. Although they start with a low credit limit, I think that is beneficial to someone who has never had a credit card. It is easier for a student who sometimes makes bad judgements on what to spend money on to pay off. It is much easier to handle than to have your first card be one with a $1000 limit. This is the only credit card that I have been happy with so far. :) Credit Card: Union 76 Platinum Gas Card Review: Been a cardholder for 22 years. Citibank took it over and now there is a credit limit. We have 3 cars using the card. $500.00 limit. Sent in a check for $298.00 a week before it was due. Friday night went to get gas, and was denied. Found out that the current outstanding balance was over my limit. Tried to call customer service, but they are only open monday through Friday 8-5 central time. Come Monday, I will drop the card and buy gas elsewhere. The Cardholder Review section is a unique feature of our site and, to the best of our knowledge, there is no other organization or company that offers more consumer reviews of credit cards. It's all about consumers helping other consumers. As your might expect, this section of our site has been one of the most popular sections of our site since it was introduced in the summer of 2000. New reviews are posted on a daily basis! We hope that you will find this section of our site useful and that you will visit it on a regular basis. |
Important Note! The information in this article is believed to be accurate as of the date it was written. Please keep in mind that credit card offers change frequently. Therefore, we can not guarantee the accuracy of the information in this article. Please verify all terms and conditions of any credit card prior to applying.
You are welcome to print a copy of any of our articles and distribute them for educational purposes. If you are a webmaster, you can post any of our articles on your site provided that you include a link to our site. Please click here for more information about free credit card articles.
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