Credit card rates have now reached a four year high. The average rate is at 15.14 percent. Up from 14.75 percent just six months ago. Its kinda ironic because as mortgage rates continue to hit all time lows, individual credit card rates go the opposite direction. For example, the prime rate is at 3.25 percent. The federal discount rate is at .75 percent.
2012/01/05
2010/12/16
12 Cent Cap
The Federal Reserve proposed a 12 cent cap on the fees banks would be allowed to charge merchants for debit card transactions, a move that could cut into the revenue for banks that issue debit cards.
Capping debit interchange fees, sometimes called swipe fees, would help merchants by replacing the current system, in which they generally pay between 1 percent and 2 percent of the dollar value of each transaction.
The Federal Reserved said consumers would not likely see a swipe fee cap translate into lower prices, except in some highly competitive markets. It may, however, result in banks cutting back on debit card reward programs or searching for other ways to offset the impact of lower fees.
2010/10/04
Government Sues Credit Card Companies
The United States Justice Department on Monday sued the three largest U.S. credit card companies for anticompetitive practices and reached a proposed settlement with two of them, MasterCard and Visa.
American Express Co. however, said it will fight against the federal lawsuit, arguing that the Justice Department’s proposed remedy would promote steering customers from one payment network to another and “will do nothing to enhance competition.”
The department of Justice and various state attorneys general sued all three companies, saying they were attempting to insulate themselves from competition.
At the same time, the Justice Department filed a settlement it has reached with Visa and MasterCard. Court approval of such settlements is usually a formality. Under the settlement, Visa and MasterCard agree not to prohibit merchants from offering customers discounts or rebates for using a particular kind of card. Visa and MasterCard also must allow merchants to express preferences for the use of a low-cost card within a network or other form of payment.
The lawsuit says the card companies are impeding merchants from promoting the use of competing credit or charge cards with lower acceptance fees.
Each time consumers use a credit card to make a purchase, the merchant must pay a fee. Such fees brought in $35 billion last year to the three credit card companies and their affiliated banks.
2010/08/23
New Credit Card Rules Go Into Effect
The new set of credit card restrictions approved have gone into effect. The rules block credit card companies from charging more than $25 for late payments except in extreme circumstances, prevent them from charging customers for not using their cards, and requires them to reconsider rate increases imposed since January 1, 2009, according to the Federal Reserve, which approved the regulations.
2010/08/19
Best Credit Card
American Express for the fourth straight year in a row was voted the best credit card issuer based on customer satisfaction.
Based on a 1,000-point scale, AmEx received a customer satisfaction rating of 769, which was 55 points higher than the industry average, according to a survey conducted in March and April by information services provider J.D. Power and Associates.
Discover Card was the second highest rated credit card, with a score of 757. The bottom three cards were Capital One, Citi Cards, and HSBC, in last place.
2010/08/10
Ways To Increase Credit Score
Here are some ways that you can help increase your credit score:
1. Request a credit line increase. The one factor of your credit score you have the most control over is credit utilization. Credit utilization is simply a calculation of how much of your credit you are currently using. A simple total balance owed divided by total credit limit. So, you can either decrease the total balance owed or increase the total credit limit.
2. Pay off Debt. This is really a no brainer but the best option after you have already increase your credit card limit.
3. Charge Less. By keeping your statement balances lower, you lower your credit utilization without much effort.
4. Consolidate Credit Cards. If you have multiple credit cards with one issuer, consider consolidating them.
5. Review your credit report for errors and omissions.
These are the five easiest ways to help increase your credit score. I hope it helps.
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