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.
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May 28th, 2009 at 12:54 pm
hi, im having to rebuild my credit due to some defaulted student loans that are now consolidated. the old accounts has now been considered a charge-off, lowering my score. I do have an auto loan, student loan payments but is needing to increase my numbers still. Is there a recommendent secure card out there with no so much ridiculous intrest and fees? I know that I will have to pay out quite a bit, but is needing a card to increase my numbers in a rarely short amount of time?
May 28th, 2009 at 3:51 pm
Kenya,
You’re already ahead of most people, who often turn to “bad credit” credit cards. These cards are load with rediculous fees that often eat up your available credit. That said, secured cards are really a good option for consumers who don’t need credit, but want to rebuild their credit.
When choosing a secured credit card, the key factors to consider are the annual fee and, perhaps most importantly, if the company reports your account to the major credit card bureaus. A final factor, which is also quite important if you do not pay your bill in full every month, is the APR.
Based on this criteria, the best secured credit card in my opinion is the Applied Bank® Secured Visa® Gold Card. Presently, this card charges a $50 annual fee, a 9.99% interest rate, and reports to the major credit bureau. It provides all the necessary functions of a credit card along with the option to set your credit limit based on your deposit.
May 29th, 2009 at 7:28 am
Thanks for the advice and recommendation.
May 29th, 2009 at 8:27 am
No problem, Kenya.
June 4th, 2009 at 4:47 pm
Hello,
Thanks for your offer to help. I will soon be going through a short sale and I have outstanding credit card debt. I am going to pay off my debt as quickly as possible, but have a couple questions.
I have “opt-out” of two cards already – can the credit card company raise my rates if I am late on my morgtage or short sale even though I’ve opted out months ago?
Also, if I transfer balance to another card right now can they typically raise my rate during the promo period if I have gone delinquent on my home or short sale?
Thanks for your help,
Mike
June 5th, 2009 at 9:18 am
Mike,
Glad if I can be of assistance to you. Here are my thoughts on your situation:
1.) In regard to your rates being raised for making a late mortgage payment, it is unlikely that the credit cards you have opted out of will raise your rates. That type of rate raising is known as universal default, and is not commonly practiced anymore. However, without knowing the complete terms of your opt out, I cannot say NO with any certainty. Thus, I strongly recommend contacting the company, asking them under what conditions they can raise your rates, and requesting a printed copy of your credit card agreement. While I do not think they can raise the rate, I truly cannot say they won’t with any certainty, as it is quite hard to predict the behavior of credit card companies these days.
2.) As to doing a balance transfer, you may encounter two issues. If you are currently late on your mortgage, it is unlikely you will be able to gain approval. If you are able to gain approval, being delinquent by just one day on the credit card account is grounds for an interest rate hike. I really cannot speak to the effect a mortgage delinquency might have, as different banks are utilizing different tools to determine rate increases. However, many are looking at credit score changes, so anything that might lower your credit score may lead to an increase in your rate after the balance transfer period ends, if not during.
Sorry that I cannot provide more specific information, but given the information you have provided, I think the best advice is to cover all of your bases and verify the specifics of your terms and conditions, as one can never be too safe when it comes to managing credit cards today.
June 5th, 2009 at 12:26 pm
Thanks for your advice – it’s really appreciated!
Yeah, I think I am better off not transferring the balance and opt-ing out if they decide to raise my rate. I know that is not a great credit move, but neither is a short sale.
I just have to get out of debt, save some cash and hopefully get back into this housing market!
Thanks again…
Mike
June 8th, 2009 at 9:09 am
Glad I could help. Wish you the best of luck getting clear of debt.
January 26th, 2010 at 7:22 pm
My credit really sucks, and I want to get a credit card to start to rebuild my credit. I dont know where to start.
January 27th, 2010 at 12:43 pm
Summer,
I put together an article about how to repair bad credit in response to your question. I hope you find it helpful and please do contact me should you have any further questions.
You can read the new article here.