In a democracy with a decentralized economy, it can be very difficult for economists to determine the exact nature of consumer spending trends. One method that has become increasingly popular is the analysis of data reported by credit card processors. This data can be used to determine consumer spending in various sectors such as food, travel, and fuel. In addition, overall credit card spending can be used as a broad measure of consumer confidence.

For example, The Wall Street Journal reports that credit card use is on the rise as consumer confidence appears to be growing. They cite reports from both American Express and Capital One indicating that balances grew in the 4-5% range over the last year.

What Is Going On

Since the beginning of the recession in 2008, consumers have started to control their credit card debt. This recession in particular was characterized by businesses and consumers taking out too much debt, so it was only natural that many sought protection in more conservative methods of payment such as debit cards, checks, and cash. As time wore on and consumer confidence has begun to recover, shoppers are again feeling more wiling to use their credit cards. This holiday period in particular has been notable for increased consumer spending. Continue Reading »

When most people consider a travel rewards credit card they immediately think of one that earns frequent flier miles. Their next thought is often about the difficulty they will have booking award flights at the lowest mileage levels.

Sadly, most airlines have made it almost impossible to find multiple award seats to popular destinations anywhere near the peak season. Fortunately, members of American Airline’s AAdavantage frequent flyer program still have a reasonable chance of redeeming their miles for the flights they want. Via the Citi Platinum Select AAdvantage World MasterCard, American Airlines travelers can earn the miles they need to fulfill their award travel aspirations.

Citi AAdvantage Credit Card Overview

New Citi AAdvantage credit card applicants will earn 30,000 miles after making $750 worth of purchases within the first four months of opening an account. Customers can earn an additional 10,000 miles for spending $5,000 in the first six months card membership. Continue Reading »

Those who pay their credit card balances on time and in full each month  should be using a rewards credit card. Although many cardholders enjoy their rewards in the form of loyalty points such as frequent flier miles, cash back remains the most popular type of rewards card.

Unfortunately, while cash back rewards can seem like a simple concept, there are dozens of cash back reward cards being offered by nearly every bank.  Among all these cards are three basic types of cash back rewards.

Fixed Rate Cash Back Credit Cards

The simplest types of cash back credit cards are those that offer a fixed rate of return on all purchases. These cards typically offer between 1% and 2% cash back. Once cent per dollar spent is the most common rate of return, and it represents the minimum that any reward card holder should expect. Continue Reading »

Smart credit card users know how to cash in on frequent flier miles, cash back and loyalty points. But as cardholders have grow smarter about credit card rewards, credit card issuers have been forced to steadily increase the amount of points and miles their customers are earning for spending and as sign up bonuses. In many instances, account holders have become disillusioned with points and miles that, at times, can be difficult to redeem.

In response, credit card issuers have begun to add more perks to their hotel and airline reward credit card products that go far beyond mere points and miles. However, consumers often have multiple options with big travel branded credit cards and the most expensive options are not always the best.

Airline Credit Cards Offering More than Just Miles

Delta is leading the field of airline cards by offering the most non-mileage perks. For example, their Delta SkyMiles Reserve card from American Express grants cardholders priority access at check in, security, and during boarding, as well as checked bag fee waivers. Furthermore, it offers customers upgrade priority over others at the same status levels that do not hold this card. However, this card carries a hefty $450 annual fee. For those who want miles and free checked bags, the lower fee Gold Delta SkyMiles card is a much better option. Continue Reading »

Now that New Year’s resolutions have been made and holiday credit card bills have started to arrive, many consumers will be searching for ways to save money in 2012. Taking advantage of 0% balance transfer credit card offers is one of the easiest and most effective ways to get a handle on credit card debt and prevent interest charges from piling up.

Fortunately, credit card companies are eager for new card-holders and many have rolled out special balance transfer offers this January. These offers range from short term, no fee balance transfer promotions lasting 12 months to long, low fee offers lasting up to 21 months.

Noteworthy 0% Balance Transfer Offers

January is a rare month in the balance transfer universe, as consumers are faced with two types of very good balance transfer options. The first option is the no fee balance transfer. Both Discover and Chase are offering fee free transfers that can save consumers 3% of every dollar transferred ($30 for every $1,000 transferred). Continue Reading »

It would be an understatement to say that the credit card industry is intensely competitive at the moment. Banks are trying absurdly hard to earn new business and are offering applicants some truly astounding sign up bonuses that range as high as $500. When advertising these bonuses, banks often specify that customers may earn “up to” a certain number of points or “as many as” a specific amount of miles. Nevertheless, these offers come with conditions that must be fulfilled in order to receive these bonuses. Therefore, cardholders must take several steps to ensure that they receive all of the bonus points and miles that they are entitled to.

First, customers should thoroughly read the terms and conditions of each offer. When doing so, it is important to explore all asterisks and footnotes in order to learn the complete set of conditions necessary to comply with the terms of the offer. In some instances, the entire sign up bonus is awarded upon the cardholder’s first purchase. In other instances, cardholders must complete a minimum spending requirement within a certain time period. This is the most common string tied to cash back credit card bonuses, most of which require $500 of spending within three months. You can view these types of offers below. Continue Reading »

Credit cards are useful, but potentially dangerous financial instruments. When used correctly, they offer security, benefits, and rewards that make them a vastly superior payment to cash, checks or debit cards. However, when using credit cards to incur revolving debt, there can be expensive drawbacks.

The Dangers of Carrying Credit Card Balances

Unlike a loan for a fixed amount, credit cards are revolving charge accounts. This means that borrowers can continue to incur additional debt each month, even as they make payments on their existing balances. For consumers, this is a hazardous aspect of a powerful financial instrument. Too often, cardholders make purchases without regards to their ability to pay for them, and must therefore carry a balance.

As time passes, this practice becomes a habit as they incur more debt at a rate faster than they are paying off their existing balances. Using 0% balance transfer credit cards can take the sting out of interest expenses, but oftentimes, consumers fail to use these low rate cards until they reach a point where their ability to make their minimum monthly payment becomes difficult or their credit limits are nearly exhausted. Continue Reading »