Archive for July 2011

By Jim Sloan

Banks used to make a lot of money off your mistakes--your overdrafts, your late fees and the penalties you paid for skipping a monthly credit card payment. But since Congress decided that many of those revenue-raising practices had to stop, the banks are back at your doorstep with a whole slew of new fees.

While the new charges might be less underhanded than the ones banned by Congress, they are just as annoying to consumers, and have sent many running from their brick-and-mortar banks to online savings banks.

But those of you staying with a traditional bank may find that the new fees being proposed require that you be more vigilant than ever to keep the banks from siphoning off your savings to help their bottom line.

Why banks need money

Banks have been stung in recent years by federal reforms that limit how they collect fees for overdrafts and credit cards...

By Melissa Rudy

American Express, the company known for offering some of the best rewards credit cards, just broke new ground with a social networking campaign that delivers discounts and special offers directly to the customers who want them. This customized credit card marketing strategy is linked to AmEx's Facebook presence, and the discounts are offered only to members who sign up for them on the American Express business page.

AmEx uses Facebook to personalize special offers

American Express is the largest credit card company in the world by purchase volume, and it aims to stay that way, so this personalized marketing strategy should come as no surprise. It relies on new technology--and cutting-edge ways of using that technology--to refine cardholders' expectations and customize special offers individually, based on Facebook profiles and online preferences.

"We're running algorithms to serve up offers that are relevant to your likes, your preferences, and your friends," said Edward Gilligan, vice chairman of American Express...

By Maryalene LaPonsie

I was probably about 19 when I stood in line at the supermarket and whipped out my credit card to pay for some groceries. I don't remember what I was buying, but it was apparently too much for the older man behind me. He couldn't help but ask how I was going to pay my credit card bill. My flippant response was something to the effect of "My kids will take care of it when I die." He rolled his eyes, and I rolled them right back. Now that I am slightly older and, ahem, more mature, I can see the error of my ways. At the time, I had the profile of a credit card abuser … racking up debt with reckless abandon. No doubt, I expected a money tree to bloom in the backyard at any moment. But truth be told, without a plan, it is just a matter of time before you self-destruct under the weight of impulse purchases and mounting interest rates.

Savvy shoppers, on the other hand, fall into three profiles when it comes to credit card use. If you don't see yourself in one of these profiles, it might be time to re-evaluate whether you are credit card user or an abuser...

By Alise Ramey

Whether you're just finishing school, or a few years out, it is important to build credit. The best way of doing this is by finding a credit card that works with you, that fits your lifestyle, and one that offers something in return. Travel rewards credit cards can fit the bill for this.  

Traveling on the cheap

Traveling this summer doesn't have to be expensive. By getting a travel rewards card, you can save money while you enjoy yourself. There are some travel / frequent flyer credit cards that offers, perfect for someone who is young and looking to increase their credit score while also traveling.

Travel credit cards tend to offer excellent benefits for frequent travelers. They allow you to earn points and airline, hotel, and general travel rewards on most purchases made with your credit card.

So which cards should you look into?...

By Elaine Griffin

Customers can take advantage of three ways to earn cash back with the Chase Freedom Visa. First, $100 can be earned when new customers make at least $500 in purchases within the first three months of opening the account. You can earn one percent cash back on all purchases.  In addition you have the option to earn five percent cash back on purchases made within quarterly bonus categories however you need to enroll each quarter and cash back is subject to quarterly maximum spend. As if the cash back wasn't enough, the Chase Freedom Visa card requires no annual membership fee.

APRs for this card include 12.99 to 22.99 percent variable annual percentage rate (APR) for purchases and balance transfers and 19.24 to 23.24 percent APR for cash advances. Other fees apply.

JP Morgan Chase Bank, National Association, was established in 1824 and has been a member of the FDIC since January 1934. They are headquartered in Ohio. JP Morgan Chase offers a variety of credit cards to suit customers' needs.

Type of account: Credit Card

Bank requirements:

• Customers must be U.S. residents age eighteen and over
• Customers must pay variable APRs for purchases, balance transfers and cash advances
• Other fees apply
• For full details, contact JP Morgan Chase Bank, National Association

Account benefits:

• No annual fee
• $100 cash back once requirements are met

By Elaine Griffin

Capital One Platinum Prestige Mastercard saves money with low APR and no annual fee

Credit card users with excellent credit will love the Platinum Prestige credit card from Capital One. This card has a zero percent introductory APR through October 2012. It also requires no annual fee.

After October 2012, the APR for purchases and balance transfers will be 10.9 to 18.9 percent variable. The APR for cash advance will be 24.9 percent variable. Although there is no annual fee for this card, other fees do apply.

Capital One Bank, (USA), National Association was established in and became a member of the FDIC in November 1994. They are headquartered in Virginia. Capital One offers services worldwide.

Type of account: Credit Card

Bank requirements:

• The Platinum Prestige Mastercard is for customers with excellent credit
• There is a variable APR for purchases and balance transfers after introductory period
• Cash advances are subject to a variable APR, with no introductory period
• There are other fees associated with this card
• For full details, contact Capital One Bank (USA), National Association

Account benefits:

• There is a zero percent APR on purchases and balance transfers for the first year
• There is no annual fee associated with this card