Credit Card Base

The problem with imposing new rules on credit card issuers is their ability to quickly circumvent them and come up with new ways to make money.

It’s quite evident if you look at what First Premier Bank, a subprime credit card issuer, has done recently to skirt the impending rule changes set to take effect on February 21, 2010 (Credit Card Bill of Rights).

The First Premier credit card typically comes with a minimum of $256 in fees during the first year for a $250 credit line, but because the new laws limit fees at 25 percent of a credit card’s total limit, it will be lowered.

Going forward, the bank will charge a $75 annual fee for a $300 credit line, but to make up for that lost profit, they’ve raised the APR from 9.9 percent to 79.9 percent.

That’s not a typo, it’s the highest APR tied to any credit card currently on the market, according to an industry analyst.

For cardholders with a $300 balance on the credit card, it equates to about $20 in monthly finance charges; assuming you pay $20 per month, you’d be looking at $315 in fees annually for a $300 credit line. Not a bad h

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By now, you’ve probably heard about credit card issuers paying customers to close their accounts in the wake of one of the worst credit collapses in history.

But the latest move by card issuers is quite the opposite; some are charging customers inactivity fees for dormant credit card accounts.

That’s right, if you fail to use your credit card for a certain period of time, you may be slapped with a fee (in the ballpark of $20) to keep it open.

Of course, it hardly seems worth paying it, given the fact that most credit card issuers do not charge inactivity fees.

However, some consumers have been led to believe that closing a credit card will do serious damage to their credit score, so they may hold off.

And though your credit score could fall as a result of a closed account, it probably won’t mean a whole lot if it’s a card you seldom use.

Additionally, there’s no reason you should pay a fee to keep your credit card open, regardless of the credit scoring impact.

If you feel you must keep it open, consider using the dormant card to pay a recurring monthly bill such as your gym membership or cell phone bill to avoid the inactivity fee.

Remember, the older the card account, the more value it has in terms of credit scoring, so don’t fret about closing a newer credit card.

And if you’ve got plenty of solid credit history, the “damage” to your score will likely be minimal if at all negative (Should I close my credit card account?).

Tip: Keep an eye out for changes to your credit card terms as issuers look to charge new fees to offset the impact of the recently passed Credit Card Bills of Rights.

How You Can Raise Your Credit Scores

What is credit score? What make it so important? A credit score is numerical expression representing someone’s creditworthiness and this score is a determinant factor. Having a good credit score is very important in today’s society. If you have a high credit score then it would be any problem for you to have a credit. It is something that people today would consider to be worthy to be doing just about anything to have a good credit score. By having a good credit score, applying for loans and unsecured credit cards is much easier.

If your credit score is not good, there will be a big wall that will stop your loan application in any way to be granted. This is why it is very important for you to improve your credit score. Even if you already have a good credit score, there are always advantages. F

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Here’s some good news for those of us who use credit repair services—the Federal and State Regulators are looking out for us!  Here’s a story about a fine imposed by the State of Louisiana on some unscrupulous credit repair firms.

Here’s a quote from an article reporting this story:

An Ascension Parish credit repair company must pay $13,500 in civil fines, attorney’s fees and court costs to settle an unfair trade practices suit brought last month by the Louisiana Attorney General’s Office.

Attorney general’s prosecutors had obtained a temporary court order July 2 to stop operations of Next Step Credit of LA LLC and a related corporation because the credit repair company did not have a required $100,000 surety bond filed, state District Court records say.

The office of Attorney General Buddy Caldwell brought suit against the firm July 1 in 23rd Judicial District Court because the business continued to operate after receiving a previous cease and desist order over the bond, Assistant Attorney General Charles Braud Jr. said Tuesday.<

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Reporter: This article is an interview with Curtis Arnold, of CardRatings.com and author of How You Can Profit from Credit Cards.
Summer travel expenses are hitting many consumers hard and gasoline pump-pain is not helping. Curtis Arnold, of CardRatings.com and author of How You Can Profit from Credit Cards, zeroes in on gas and travel reward credit cards and offers a number of gas, hotel, and travel rebate tips.

Mike: BP Gasoline and JP Morgan Chase have joined forces to create a gasoline rebate program. What are your thoughts on this joint venture?

Curtis: It’s definitely one of the best gas rebate cards out there as it offers a 5% rebate on eligible purchases at all BP locations. A unique benefit of this card is that it also offers a 2% rebate on all eligible travel and dining. O

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It’s that time of year again – time for holiday shopping and all the “deals” that go along with it.  This year, prepare yourself for your shopping trips by checking out AFFIL’s tips for avoiding holiday hazards.

With most people’s budgets already stretched thin, it’s especially important to make sure that your 2009 holiday shopping doesn’t give you a post-holiday financial hangover.  You can help prevent this by following these tips:

• Check the fine print before you load up on gift cards. While they’re set to improve when all the provisions of the Credit CARD Act take effect, you could still be burdened with service fees and expiration dates in the meantime.
• Avoid costly cash advances whenever possible. They’re the Grinch’s (and the credit card company’s) best friend.  The interest rates on this borrowed money are much higher than on purchases.  The best plan is to avoid all advances – including payday loans – because they’ll end up costing you long after your presents have been unwrapped.
• Check your balance before you hit the mall (or the web). As we mentioned last week, Americans were charged more than $65 million in overdraft fees on Black Friday alone.  Make sure you have the money in your account before you spend it, and avoid lining the pockets of the big banks with your hard earned cash.
• Be wary when shopping online. For more on how to spot scams, click here.
• You know those zero-percent financing offers that seem too good to be true?  They usually are. Consumer Reports has the f

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