Yesterday, a visitor posted that the interest rate on his Advanta credit card was raised to 34%, which is about 4% more than the average credit card default rate of 29.99%.  Out of sheer disbelief, I asked the visitor if he had defaulted on a payment, as this seemed to be the only logical reason for someone to be slapped such a high interest rate.  This morning, I apologized to that visitor.  Turns out, he paid online and on time. 

Given all the issues Advanta credit cards are causing small business owners, such as cutting off all credit limits on May 30th, I would really appreciate it if anyone would share info on similar interest rate increases.  In particular, I think our visitors would benefit from knowing the reason given for these increases and, more importantly, if anyone has had success getting their rates lowered. Continue Reading »

I’m gonna go out on a limb here with a bold prediction:  Advanta credit card complaints will be rising substantially in the coming days.  Why?  First of all, Advanta is closing all of its credit card accounts.  I’d say there’s a pretty good chance that this may irritate a few people.  Like the truck driver in the middle of the Arizona dessert trying to get some diesel at 12:01 am on May 31st.  Yes, not June 10th.  May 31st!

That truck driver will certainly be saying [expletive deleted] Advanta since, even if he got the first notice that Advanta credit cards were closing on June 10th, he probably was on the road when the postman delivered the notice that his Advanta card would stop working on May 30th.  And that letter probably arrived on May 29th. Continue Reading »

As this is probably your first visit to the Balance Transfer Blog, you may think this story about the end of 0% interest balance transfers is alarmist.  However, during the past year, this humble writer has unfortunately been the proverbial canary in the coal mine when it comes to balance transfers.

Last summer, I predicted the decline of no fee balance transfers.  This prediction came to fruition in a matter of weeks.  Early last fall, I predicted that most companies would cease offering fixed APR balance transfers.  These offers are now gone.

Recently, I have been writing (ranting?) about the end of 0% interest rates that last for 1 year.  And, in the coming weeks, more than a few of the remaining good credit card companies will be reducing introductory rates from 1 year to around 6 months.  Additionally, some companies, including Bank of America, will be raising balance transfer fees to 4%. Continue Reading »

Today’s passage of H.R. 627 , also known as the Credit Cardholders’ Bill of Rights Act of 2009, is great news if, according to the terms and conditions of my credit card, the definition of great is horrible.  While its patriotic title and good intentions may impress the average voter, these credit card regulations have caused more problems for credit cardholders than late payments and over the limit fees combined.  And the bill won’t even take effect for nine months.

The problem with this bill and, more precisely, the threat of this bill is that it threatened to fundamentally alter a business that, without government interference, was fundamentally troubled.  Before the threat of this legislation existed, credit card companies were not raising interest rates across the board on consumers with good credit.  Nor were they hitting good customers who simply missed a single payment with default rates.  Essentially, all of the horrible things credit card companies have done in the past few months seem to be tied to the fact that they were scrambling before the new laws took effect. Continue Reading »

From the Editor:  I have a confession-I’m technically one of the bad guys.  For the past five years, I’ve made my living marketing credit cards on the Internet.  On the whole, I think I’ve done my best to help consumers find good credit card deals.  However, I’ve heard so many horror stories lately that I feel an obligation to provide credit card help to as many visitors as possible.

In a lot of instances, you may find a discussion or article on Smart Balance Transfers that answers your credit card question.  However, if you can’t find the information you need, please feel free to post your credit card question here.  All information posted on the balance transfers blog is anonymous and the only time your email may be used is if I send you a personal response. 

This is a tremendously difficult time for many of us and credit card problems are the last thing we need.  So, while I can’t get your credit card company to lower your interest rate or turn back the clock and remind you to pay last month’s credit card bill on time, I’ll try my best to give you clarity on whatever credit card questions you have.

Thanks in advance to those of you who choose to share.  And thanks for helping me clear my conscience by providing whatever credit card help I can.

Last week, I wrote about a recent decline in credit card complaints.  While I did not go so far as to predict that this short term trend would continue, I was hopeful that Obamas’ new credit card legislation was having a positive effect on the behavior of credit card companies.  I was dead wrong.

Yesterday, two disturbing credit card complaints were posted, both of which are worth noting.  The first came from a gentleman whose credit card account was closed for inactivity; the second came from a woman who missed a payment and had her interest rate increased to 29.99% – on a $19,000 balance!  Continue Reading »

If you’re in a hurry to transfer credit card balances, you might want to slowdown and take a moment to consider the following three reasons why you should not transfer credit card balances online.  Paying heed to these credit card tricks could potentially save you a lot of money and a big headache.

Reason #1 why you should not transfer balances online:  Tiered Introductory Periods

Many credit cards advertise a 0% APR for up to 1 year, but may actually offer 0% periods for as little as 3 months.  Unfortunately, you will not find out how long your introductory period lasts until after your application has been reviewed and approved.  This can obviously be a huge problem.  Imagine paying a 3% balance transfer fee to move money to a 0% credit card, only to find out you’re going to need to pay that balance transfer fee again in three months – and that’s if you can actually get approved for a new 0% balance transfer credit card three months from now.  If you can’t get approved, you’ll be paying the standard interest rate nine months sooner than you expected, which leads us to reason #2.

Continue Reading »

According to a Reuter’s story, U.S. credit card defaults continued their rise in April, with both Citi and Wells Fargo reporting double digit credit card loss rates.

Citi led the default pack with its charge-off rate reaching 10.21%.  Wells Fargo came in a close second, with a 10.03% charge-off rate.  Other large issuers, including Chase and Discover, reported default rates in the low 8% range, slightly below the current 8.9% unemployment rate.

While this is obviously bad news for the banks, it is really bad news for consumers.  As credit card companies try to cope with excessive loan losses, credit availability may decrease even more than currently depressed levels.

Additionally, consumers looking for 0% credit cards are likely to find these offers more difficult to come by.  Continue Reading »

The Office of the Comptroller of Currency has launched a new website, www.helpwithmybank.gov.  While it appears this website is in very early stages, the site may eventually provide good information to consumers.  A section on credit card balance transfers currently has two questions and answers, a far cry from the hundreds of articles and comments that can be found at Smart Balance Transfers.  However, this site contains questions and answers about a range of credit card issues, including fees and penalties, as well as general banking concerns.

Over time this site may become a useful tool.  In the meantime, however, you may want to review balance transfer credit card information on our site if the helpwithmybank doesn’t resolve your questions.

If you have an Advanta credit card, make sure you leave your house with cash and a backup credit card.  According to an Advanta press release made public yesterday evening, Advanta credit cards will, for lack of better words, stop working on June 10th.  Yes, in a public announcement titled, “Advanta Announces Plan to Maximize Capital and Dramatically Reduce Risk,” Advanta announced that, “Since the securitizations will not be permitted to fund new receivables after June 10, the Company will shut down all credit card accounts to future use at that time.”

In other words, you don’t want to find yourself with an empty gas tank at an Exxon station on a deserted highway with no cash and only an Advanta credit card on June 11th.  Because your card won’t work.  In fact, you may have better luck trying to use a Diners Club card (or Monopoly money for that matter). Continue Reading »

Smart balance transfers has long derided the practice of allocating consumer payments to the portion of a credit card’s balance with the lowest interest rate.  Here’s a common situation:

A person has$1000 in debt being charged 14% and does a 0% balance transfer from another credit card for $1000.  The first $1000 that person pays back reduces the balance being charged 0%, leaving them with $1000 in debt being charged a 14% interest rate. Continue Reading »