About Credit / Debt Management

American Express Adds New Credit Card Fee

2009-11-20T14:32:22Z

American Express cobranded hotel or airline credit card will be charged a fee to reinstate rewards lost because of a late payment. American Express recently announced that late payments would cause cardholders to lose any rewards accumulated during that month.

If you want to get your rewards back, you'll have to pay a $29 reinstatement fee, according to ABC News. Of course, you'll still have to pay a late payment fee of up to $38. Your interest rate could increase too, because of the late payment. Starting February 22, 2010, you can only be charged the penalty rate when you're more than 60 days late on your credit card payment.

Weekly Credit and Debt News Roundup:

Salvation Army bell ringers in North Carolina will be accepted credit card donations. I suspect that bell ringers all over the nation will be taking credit cards.�MyFox8.com Read more...
American Express Adds New Credit Card Fee originally appeared on About.com Credit / Debt Management on Friday, November 20th, 2009 at 14:32:22.
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10 Ways to Avoid Credit Card Debt

2009-11-18T15:09:27Z

Some extremists would tell you to avoid credit card debt by avoiding credit cards completely. Of course, credit cards can be good for you, helping to build your credit score when you use them the right way. So counting out credit cards completely isn't the best solution for avoiding credit card debt. Instead, there are some other things you can do to avoid the debt trap. For example, paying your balance in full every month will keep your credit card debt at $0. Here are 10 Ways You Can Avoid Credit Card Debt.

More Articles on Managing Credit Card Debt:

10 Ways to Avoid Credit Card Debt originally appeared on About.com Credit / Debt Management on Wednesday, November 18th, 2009 at 15:09:27.

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How Much Will You Save With a Balance Transfer?

2009-11-16T00:26:49Z

If you want to pay off your credit card balance at a lower interest rate and your card issuer won't give you one, a balance transfer might be a good option. But, just because the interest rate on the new card is lower doesn't mean you'll actually save money with the balance transfer.

When you're calculating the savings of a balance transfer, you have to also think about the balance transfer fee and any difference in annual fees with the two credit cards. What's the Cost of a Balance Transfer? will help you figure out whether it's better to leave your balance where it is or move it to a new credit card.

Weekly Credit Card News Roundup 11/13/09

2009-11-13T12:05:08Z

Here's this week's top credit and debt news stories:

Washington Post columnist Michelle Singletary advises reader to pay off a $11,000 IRS bill before focusing on the $12,000 credit card debt. She says IRS interest compounds on a daily basis and makes you owe more quicker. -Washington Post
Credit card companies raise fees and rates to help offset credit card delinquencies and defaults, which continue to rise. -CardRatings.com
CreditKarma.com raises $2.5 million dollars to continue providing free credit scores to consumers. Visit CreditKarma.com to get a free copy of your (TransUnion) credit score. There's no credit card required and you score is always free. -Reuters
Small businesses work to get small business credit cards included in the new credit card legislation, but their chances at getting protection look slim. -New York Times' You're the Boss
If you're getting attractive credit card offers now, take advantage of them because the best credit card deals could be disappearing soon. -Wall Street Journal
Last week's credit card news.

Weekly Credit Card News Roundup 11/13/09 originally appeared on About.com Credit / Debt Management on Friday, November 13th, 2009 at 12:05:08.

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Why Credit Cards Are Switching to Variable Interest Rates

2009-11-12T00:44:52Z

In the past few months, all my credit card issuers have sent notices that my fixed interest rate is being converted to a (higher) variable interest rate. My most recent notice says "The economic environment has required that we make changes to your account." If you've received these notices recently, you may have wondered why is the rates are changing?

You probably know that new credit card regulations go into effect next February. These new regulations only allow credit card issuers to raise fixed interest rates under certain circumstances and require them to give you a 45-day advance notice of rate increases. The rules aren't the same for variable interest rates, though.

Variable interest rates can change whenever the underlying interest rate changes. Not only that, your credit card issuer doesn't have to send an advance notice before your variable interest rate changes. Your credit card issuer won't have to worry about adjusting your interest rate when the economy changes, because your variable rate will be tied to another interest rate that already changes with the economy.

Variable interest rates are better for credit card issuers. With so many credit card issuers moving to variable rates, the new credit card laws for interest rate increases may not help cardholders.

Why Credit Cards Are Switching to Variable Interest Rates originally appeared on About.com Credit / Debt Management on Thursday, November 12th, 2009 at 00:44:52.

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Don't Mistake Credit Card Notices for Junk Mail

2009-11-08T09:48:37Z

It's more important than ever to read anything and everything you get from your credit card issuer. There are only a few months left before the bulk of the new credit card rules go into effect and credit card issuers will use mail to notify you of any changes to your credit card.

New rules already require credit card issuers to notify you 45 days in advance of an interest rate increase. That notification also includes important details about rejecting the rate increase if you'd rather pay your bill at your current, lower interest rate. Your credit card issuer will also notify you in advance of any other major changes to your credit card, like a new fee.

You may receive generic looking envelopes that appear to be junk mail, but confirm that it's junk mail before you trash it. It could be an important letter from your credit card issuer.

Should Employers View Credit Reports?

2009-11-07T11:45:13Z

When you put in a job application, the employer might check your credit report. Why? To predict job irresponsibility or financial overload that could interfere with the job. In some financial jobs, credit reports are used to assess the risk of embezzlement or other financial dishonesty.

You do have the right to view the report and dispute any inaccurate information if the employer takes some adverse action against you based on your report.

But is a credit report a reliable way to predict how someone will perform on a job? Does having several past due bills indicate that you can't or won't perform well?

What do you think? Should employers be allowed to use your credit report in hiring, promotion, and reassignment decisions?

More Reading:
When To Check Your Report | Credit Report Dispute | How To Read Your Report

Should Employers View Credit Reports? originally appeared on About.com Credit / Debt Management on Saturday, November 7th, 2009 at 11:45:13.

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Credit Union Credit Cards Are Better

2009-11-06T12:45:01Z

If you're looking for a good credit card deal, try your credit union. A recent study shows credit cards offered by credit unions have lower interest rates and fees. Even the average default rate - the interest rate charged when you miss a credit card payment - is lower with credit unions (an average 17.9% for credit unions compared to 28.8% for credit cards backed by other banks). Similarly, the median late fee for credit unions is $20 versus $39 for bank credit cards.

If you're not already a member of one, you may be able to join a credit union based on your job or affiliation with certain organizations.

Source: Forbes.com

More credit card news: Read more...

Credit Union Credit Cards Are Better originally appeared on About.com Credit / Debt Management on Friday, November 6th, 2009 at 12:45:01.

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Can You Afford More Debt?

2009-11-03T00:36:08Z

While you might think a credit card or a loan is helping you "afford" to buy groceries, it's only postponing an inevitable financial crisis. According to Merriam Webster's dictionary, to afford something is "to manage to bear [it] without serious detriment." Before you take on more debt, think about how it will affect you. If you're already having trouble paying your bills, adding more debt will make it even harder.

Using your credit card seems like the easy answer when you're strapped for cash and need more groceries, but it's only a quick fix for a bigger problem. If you're having trouble making ends meet, it's time you evaluated your finances and made some adjustments to ease the situation.

Here are some resources to help you:

Can You Afford More Debt? originally appeared on About.com Credit / Debt Management on Tuesday, November 3rd, 2009 at 00:36:08.

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Your Credit Card Just Isn't That Into You

2009-10-30T12:15:25Z

Are your creditors trying to get rid of you? According to American Banking News, that could explain why they've been hiking interest rates to unbelievably high levels. After all, if your credit card companies wanted to keep you as a customer, they wouldn't hike your interest rates and slash your credit card limits, would they?

American Banking News credits Dave Ramsey with the idea that credit card companies are trying to get rid of certain types of debts. It's certainly one possibility.�Of course, the impending credit card rules and profit losses might have something to do with it too.

When credit card companies raise your interest rates, they're required to give you the opportunity to opt-out of the new rate and pay your credit card at your lower rate. In exchange, you have to close your credit card account. If you opt-out of the increased interest rate, your card issuer can double your minimum payment or request that you pay off your balance in five years.

Credit card news roundup:

Chase lowers an Ohio couples minimum payment after it more than doubled last June. (CNN)�Some credit.about.com readers have also been able to go back to their previous minimum payment by converting their balance to a five-year fixed-rate loan.
I guess I'm the only one who has my credit card number memorized. Amazon has started using a new service called PayPhrase that lets you make purchases using a two-word phrase along with a PIN. PayPhrase stores your credit card information - your card number, expiration date, and security code - and retrieves it when you enter your phrase and PIN. -GadgetCraze
WalletPop's roundup of the best credit cards and the worst credit cards.
Curtis Arnold, founder of CardRatings.com, will answer Baltmore Sun reader questions on November 3. You can post your questions on their blog. -Baltimore Sun
Small business credit card offerings grow as loans for business start-ups are less common. Terms on small business credit cards are often better than terms for consumer credit cards. -CNN Money
Bank of America cancels a cardholder's credit card after she complained about her credit limit being lowered. Days later, the bank called, apologized, and reopened her account.-Huffington Post

Your Credit Card Just Isn't That Into You originally appeared on About.com Credit / Debt Management on Friday, October 30th, 2009 at 12:15:25.

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