Although it seems the pace of credit limit cuts has slowed recently, they are still an issue many of us have to deal with.  The same goes for the relationship between balance transfers and credit limits.

Two helpful articles on this subject on our site include, “What to Do When Your Credit Limit is Cut,” and “How Balance Transfers Affect Credit Scores.”  If you are interested in learning more about protecting your credit score after a limit decrease or before a balance transfer, you may find these quite useful. Continue Reading »

I stumbled on an idea so obvious and so simple that I am truly amazed more credit card companies have not adopted it.  For years, credit card companies have rolled out elaborate rewards programs, also known as loyalty programs, that offer consumers cashback, points, miles, and other rewards.  Over the past two years, many credit card companies have cut back on these deals, but most still offer rich rewards programs.

Personally, I love these programs.  I get 3% rewards with one of my cards.  Airline miles with another.  While these perks are often the reason I choose to use one credit card over another, I would still use credit cards if the programs were cut back, especially if all credit card companies cut back on these loyalty programs and I had no other options. Continue Reading »

I’ve been writing about default rates recently, as banks have been slapping people with these astronomical penalties with great frequency lately.  In the past, a consumer with good credit and a solid history of making payments on time could often be late once and not be penalized with a 29.99% default interest rate.  This is not the case anymore.  

So, were the late Johnny Cochran, former lawyer for O.J. Simpson, alive today, I’m pretty sure he’d say something like this:  IF YOU ARE LATE, YOU WILL PAY THE DEFAULT RATE. Continue Reading »

Late last week, a visitor to Smart Balance Transfers posted a credit card complaint that topped every single credit card complaint this website has ever received.  As you’ll see below, this customer made a simple mistake that her credit card issuer used to charge her $500 in fees, raise her interest rate into the twenties, and earned Compass Bank a front row seat on the bus of shame.

First, let me share the customer’s original complaint.  Its a doozy, and I’ve got the documents to prove it: Continue Reading »

As I wrote earlier, the average default rate is about 29.99%.  In that article, I quoted the standard, and complicated, language about default rates found on a typical credit card application.  Today, I got a glimpse into what the future of credit card terms will look like when my wife got a Citi 0% credit card offer in the mail.

In this Citi offer, the language was plain and simple.  Here’s what they wrote: Continue Reading »

I’ve been intrigued by the thought that Citi might be becoming a good credit card company.  At first, I had some theories, which I stand by. (Read More Here).  Today, after sticking my neck on the line, I got some reassuring evidence that the new Citibank is a good credit card company.

Today’s evidence arrived in the mail, in the form of a mail offer for my wife.  Unlike similar offers which have been infrequently appearing, this card provided a 0% APR for a full year on purchases and balance transfers.  This in itself is surprising, as the few offers that have hit our mailbox lately have only offered 0% rates for 6 months.  (The offer was the Citi Platinum Select Card, which you can learn more about here.) Continue Reading »

Consumers worried that their credit card companies are going to raise their interest rates who are also scared that a company they do a 0% balance transfer with will also raise their rates are justifiably concerned.  However, these concerns are generally unfounded, as credit card companies must honor 0% introductory rates as long as consumers don’t violate the terms of their agreements by going over the limit or paying late.

That said, 0% interest rate periods only last so long, and choosing a good credit card company is more important today than ever.  That is why even I am surprised to write that Citibank’s 0% balance transfer deals are probably the safest balance transfer offers around.  I recently outlined my thesis on Citi in the article, “Is Citi Becoming a Good Credit Card Company?.” Continue Reading »

Overview

It is almost painful to write this, but amidst all the recent rate increases, credit limit cuts and fee increases, battered and beleaguered Citibank is emerging as a good credit card company.  There.  I said it.  I just stuck my neck out and made a positive statement about Citibank.  In the days when Citibank wasn’t owned by our government, Citi traditionally ranked pretty low on the credit card totem poll.  J.D. Power, for instance, consistently ranked Citicards near the bottom of the pack.  But now that we own Citibank, it appears as if its credit cardholders are getting treated fairly.  And perhaps its time for the rest of us to start reaping what little benefits we can from our multi-billion dollar investment in Citibank. Continue Reading »

A visitor wrote me today stating that he called his credit card company after getting a typical accept a huge rate increase or close your credit card notice in the mail and chose to opt out of the higher rate.  According to the visitor, the account was supposed to be closed on May 1st.  However, his wife recently called the company to see if she could negotiate a better deal to keep her account open.  Not surprisingly, she was told no.  Continue Reading »

According to today’s Wall Street Journal, Bank of America will be raising interest rates on EVERY consumer who carries a balance and has an interest rate below 10% on June 1st.  (Source)  This is a truly startling development, and yet another signal that major banks are doing everything they can to increase the profitability of accounts held by responsible consumers with good credit.

Earlier this week, a visitor reported that Chase will also be raising interest rates across the board, although our research has yielded mixed responses on the subject.  (See Is Chase Raising Credit Card Rates on Everyone? for more details) Continue Reading »

Smart Balance Transfers has just learned that, starting May 1st, the best balance transfer credit card on the market will no longer be providing a 0% APR for 12 months.  While we cannot name names, we hope this message reaches you before the changes take effect.  Once this offer is removed, consumers will have very few opportunities to get a 0% APR for a full year.  Additionally, the fact that this particular offer will be changing does not bode well for the future of 0% balance transfers rates that last 1 year.  In our opinion, this may be the beginning of the end of 12 month, 0% deals.  Hopefully, you’ll have locked in a 0% rate before this occurs.