During 2009, over 500 credit card complaints were posted on Smart Balance Transfers.  Of those 500, 2 were directed at Discover.  While other credit card companies were doubling or tripling interest rates, adding annual fees, and pushing consumers toward the brink of financial ruin, Discover was essentially conducting business as usual.  They treated their customers well and avoided the temptation to gouge them before the new credit card laws took effect.  Why?  In my opinion, its because they had to. Continue Reading »

Today marks the first day that credit card companies must adhere to the CARD Act, and perhaps the beginning of the end of good credit card offers.  For over a decade, consumers with good credit have enjoyed low interest rates, 0% introductory rates lasting 1 year or more, and fee-free credit cards.  From the moment the CARD Act gained traction in Congress, these benefits have been dwindling. Continue Reading »

Recent feedback left by visitors of Smart Balance Transfers regarding new annual fees on Citi credit cards is providing a clearer picture of the situation.  At present, visitors are reporting that the annual fee is $60, is due to take effect in April, and that they have low balances on the card and very high credit scores.

As noted in an earlier story about Citibank annual fees, the annual fee may be credited to certain accounts if spending is sufficiently high on the card.  However, many people have reported that they intend to close their accounts rather than pay the annual fee. Continue Reading »

In a move that will likely be replicated by its competitors, Citibank has begun charging annual fees on some credit card users.  The new annual fee, according to a source who has received notice, is $60 and can be credited back if enough money is spent on the card over the course of a year. Continue Reading »

A visitor recently posted the following complaint about Advanta.  While I ordinarily don’t post single complaints as blog entries, this complaint is astounding.  Advanta, which went bankrupt and stopped issuing credit cards last year, has been increasing some interest rates to more than 30%.  Here’s one customer’s unenviable recounting of an Advanta credit card nightmare:

“I have perfect credit with a middle credit score of 755 as of 02/10/2010. In January the prior month I went over the due date on a payment by several days. About 7 days after the due date I logged into my account to make my payment and to my surprise they had changed my interest rate to 32.99% from 7.99%. Continue Reading »

Dear Mr. Pandit,

I would like to bring to your attention a matter which may have escaped your purview.  In October of 2009, your company sent opt out notices to certain credit card holders.  Recipients of the letter were given two options:  close their credit card accounts and maintain their current interest rate or keep their accounts open and pay 29.99% interest, a punitive rate generally reserved for consumers who default on their payment obligations.  It is my understanding that consumers who failed to respond by the designated opt-out date would automatically have their rates increased.  Continue Reading »

With key provisions of the new credit card laws slated to take effect later this month, companies that deal in “bad credit” credit cards are scrambling to find legal ways to gouge consumers with absurd credit card fees.  One company has taken the initiative to create a credit card  for bad credit to such extremes that it may very well have created the worst credit card in the history of credit cards.  This is not hyperbole.  This is the brave new world of post-CARD Act subprime credit card lending. Continue Reading »

Many people are rightly confused whether it is possible to transfer credit card balances from one Visa card to another (or, for that matter, one MasterCard to another).  The short answer to the question is yes.  You may have a Visa, a MasterCard, a Discover and an American Express in your wallet or purse right now. You may even have more than one Visa or MasterCard.  How is that possible? The answer lies in understanding how credit card networks work. Continue Reading »

During Capital One’s fourth quarter earnings call yesterday, CEO Richard Fairbank observed that, “the lack of consumer demand for credit, across our businesses, is striking.”  Given the behavior of credit card companies during the past year, however, the lack of demand for credit should come as little surprise.  Prior to the credit crunch, American consumers embarked on a massive spending spree fueled by cheap credit card rates, 0% APR balance transfers, and the willingness of credit card companies to extend significant lines of unsecured credit.  In 2009, many of these factors disappeared, taking with them the confidence of credit card users. Continue Reading »

Despite significant increases in credit card interest rates and fees during 2009, Bank of America reported today that credit cards continue to be a significant source of losses for the bank.  During the bank’s fourth quarter, its card services department posted a loss of $1 billion dollars as credit card write-offs remained elevated.  Of the largest six credit card issuers in the country, Bank of America currently has the highest write-off percentage.  Continue Reading »

My wife got an unusual offer from Bank of America in the mail yesterday for a WorldPoints Platinum Plus MasterCard.  Instead of a typical 0% balance transfer offer, this credit card offered a 0% APR or a 2.99% APR on balance transfers, depending on a review of her credit.  The offer, which came with a 4% balance transfer fee, would not be bad if it were for a 0% balance transfer.  Unfortunately, she would not know if her balance transfer interest rate was 0% or 2.99% until after she applied.

Given the 4% balance transfer fee, this was either a decent offer or a relatively poor one.  If she were to get the 2.99% balance transfer rate, she would effectively be charge 6.99% for the balance transfer.  Other companies that offer 0% rates for a year and charge 5% fees are clearly a better deal, as this would save her about $100 on a $5,000 balance transfer. Continue Reading »