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 »

After a tumultuous 2009 during which credit card complaints spiked to unprecedented levels, consumer complaints have decreased significantly in 2010.  Much of this decrease can likely be attributed to the fact that most credit card companies wrapped up complaint generating rate increases during the final quarter of 2009.  The rest can be attributed to the fact that the new credit card laws will sharply inhibit the ability of credit card companies to engage in complaint creating behaviors. Continue Reading »

Although many credit card companies have sharply reduced the length of 0% balance transfer offers, balance transfer fees continue to rise.  In 2008, some credit card companies charged no fees on balance transfers, although most charged a 3% fee with a $75 maximum per transaction.  In 2009, many credit card companies did away with $75 maximums, and some began charging 4-5% balance transfer fees.  Today, most credit card companies are charging 4-5% balance transfer fees for 0% rates that last as little as 6 months. Continue Reading »

0% balance transfer offers provide credit card users the opportunity to shift debt from high interest credit cards to ones with low introductory rates for up to 12 months.  Unfortunately, credit card companies are increasingly placing a very important, yet easy to overlook asterisks next to 12 months.  Because of this fine print trickery, a 0% for 12 months* may actually be a 0% for 6 months. Continue Reading »

By most accounts, the average American household carries more than $8,000 in credit card debt.  At an average interest rate of 14%, a person who pays the monthly minimum would need 27 years to get out of credit card debt at a cost of $10,310.  What happens when that rate jumps to 29.99%?  According to the credit card calculator at the Federal Reserve’s website, making the minimum payments will keep you in debt for life. 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 provisions of the new credit card laws due to go into effect on February 22, 2010, credit card companies are adjusting their offers accordingly.  Long term interest rates have already increased across the board and 0% credit card rates are likely to increase, and thus disappear.

With congress passing and President Obama signing the CARD act of 2009, provisions of which have been enacted already with the remainder to be implemented in 2010, credit card issuers are preparing for the most sweeping changes to hit the industry in decades. This, along with the uncertainty around consumers’ ability to pay their debts, has credit card companies closely examining their rates and incentives. 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 »

Credit limit reductions were common in 2009, as credit card companies acted preemptively to limit potential exposure to customers who might start using available credit to pay for living expenses.  This led to a wide range of problems and the most heart wrenching credit card complaint ever received at Smart Balance Transfers.  Recently, complaints about credit limit reductions started trickling in.  If past is prelude, it is very likely that an epidemic of credit limit cuts is on the horizon. Continue Reading »