Cash Back+ World MC
RI-based Citizens Bank has unveiled a new credit card offering up to 1.8% cash back with no annual fee and none of the category restrictions or caps on rewards often found with other rewards cards.
US Credit Card APRs
If the Federal Open Market Committee (FOMC) moves interest rates upward then bank credit card interest rates are set to move into the 30%+ territory among the nation’s top issuers. Over the past year, with no movement in the Prime Rate, overall rates have been climbing.
Virgin Citi
CardTrak.com reports Citi ThankYou Premier and Citi Prestige cardholders can now transfer an unlimited amount of their ThankYou Points to Virgin Atlantic’s Flying Club.
CardTrak: Score Fraud
CardTrak.com reveals an online scheme luring consumers with “free” access to their credit scores was turns out is was anything but free as the consumer was then billed a recurring fee for a credit monitoring program they never ordered.
Average Card APRs Eek up M/M, sit at 14.15%
Core credit card interest rates have been rising and will likely rise higher by early next year. At the start of the recession average credit card APRs hovered around 16%, dropping to a rock bottom 12.64% earlier this year. Over the past 8 months since, rates have been steadily increasing and for the month of September sit at an average of 14.15%, compared to 14.12% last month. According to CardTrak, average credit card APRs declined from 16.02% in December 2007 (recession start) to 14.55% in September 2008 (credit crunch) to sit where they are now. Moreover, purchase rates are up nearly 20%; balance transfer fee maximums have increased almost 34% (from a maximum average of $94 in January to maximum average of $126 in July); and issuers that have changed their rates the least include American Express and Bank of America while the issuers that have increased rates the most are Capital One, US Bank, Discover and Citi.
CREDIT CARD APRS
Aug 08: 14.77%
Sep 08: 14.68%
Oct 08: 14.55%
Nov 08: 14.37%
Dec 08: 14.17%
Jan 09: 14.11%
Feb 09: 13.98%
Mar 09: 13.96%
Apr 09: 13.96%
May 09: 13.99%
Jun 09: 14.01%
Jul 09: 14.12%
Aug 09: 14.39%
Sep 09: 13.99%
Oct 09: 13.89%
Nov 09: 13.01%
Dec 09: 12.87%
Jan 10: 12.64%
Feb 10: 12.64%
Mar 10: 12.94%
Apr 10: 13.11%
May 10: 13.65%
Jun 10: 13.99%
Jul 10: 14.10%
Aug 10: 14.12%
Sep 10: 14.15%
Source: CardTrak.com
Card Rates Continue Ascent, Back Over 14%
Core credit card interest rates have been rising and will likely rise higher by early next year. At the start of the recession average credit card APRs hovered around 16%, dropping to a rock bottom 12.64% earlier this year. However, rates have been rising ever since over the past 8 months and is back up to the typical 14% range. According to CardTrak, credit card APRs declined from 16.02% in December 2007 (recession start) to 14.55% in September 2008 (credit crunch) to 14.12% in August 2010. The “CARD Act” was passed by Congress in late May of 2009. A study of 150 credit cards released last week by BillShrink found that purchase rates are up nearly 20%; balance transfer fee maximums have increased 34% (from a maximum average of $94 in January to maximum average of $126 in July); issuers have not changed their rates equally; issuers that have changed their rates the least include American Express and Bank of America; and issuers that have increased rates the most are Capital One, US Bank, Discover and Citi.
CREDIT CARD APRS
Aug 08: 14.77%
Sep 08: 14.68%
Oct 08: 14.55%
Nov 08 14.37%
Dec 08 14.17%
Jan 09 14.11%
Feb 09 13.98%
Mar 09 13.96%
Apr 09: 13.96%
May 09: 13.99%
Jun 09: 14.01%
Jul 09: 14.12%
Aug 09: 14.39%
Sep 09: 13.99%
Oct 09: 13.89%
Nov 09: 13.01%
Dec 09: 12.87%
Jan 10: 12.64%
Feb 10: 12.64%
Mar 10: 12.94%
Apr 10: 13.11%
May 10:13.65%
Jun 10: 13.99%
Jul 10: 14.10%
Aug 10:14.12%
Source: CardTrak.com
CardTrak.com Names Ten Best New Cards of 2009
With new credit card rules in place the top issuers launched more consumer and business friendly products in 2009. Among the best new card products of the year is a truly “green” card and a debit card with discounts for teens. CardTrak.com has compiled a list of the ten best new cards of 2009. And the winners are: 1. Gconomy Visa; 2. Chase Ink; 3. BofA Basic Visa; 4. Citi Forward; 5. Chase Sapphire; 6. AmEx Gold Premier Rewards; 7. Discover Current; 8. U.S. FlexPerks Visa; 9. Priceline Visa; and 10.BBVA Compass ClearPoints. The “Gconomy Visa” offers points for each purchase, donates a portion of every purchase to a “green” schools program, and rewards households for recycling. The Chase “Ink” card is a new business card portfolio that includes four distinct cards and marks the issuer’s first introduction of a pay-in-full charge card. The “BankAmericard Basic Visa” has simplified rates and terms offering the same APR for purchases, balance transfers and cash advances. The “Citi Forward” credit card lowers the purchase interest rate by a quarter percent when cardholders use credit wisely and rewards them with points has emerged each billing period for paying on time and staying under the credit line has emerged. The Chase “Sapphire” is targeted at the upper 15% of U.S. households in income and offers no preset limit, offers personalized customer service and is linked Chase’s “Ultimate Rewards” program. The American Express “Premier Rewards Gold Card” offers the opportunity to earn triple “Membership Rewards” points on airfare purchases, double points on gas and grocery purchases, and one point for all other purchases. The Discover “Current” card isa debit card for teens that offers members-only in-store coupons and online discounts at hundreds of merchants. U.S. Bank “FlexPerks Travel Rewards” earns double points for spending on gas, groceries or airline purchases – whichever is highest for the customer during the month as well as double points on most cell phone related charges. Barclays launched the “priceline.com Visa” enables cardholders to use their points as soon as they post to the account (typically within two days). Sunbelt-based BBVA Compass introduced the “BBVA Compass ClearPoints” credit card that features clear, simple and transparent terms and conditions, as well as pricing terms that will never change.
For more details visit CardTrak.com.
Noodles & Company Dishes Out a New Gift Card
Mac & Cheese, Pad Thai, Chinese Chop Salad and Pesto Cavatappi can now be facilitated for your loved ones with the new “Lunch Buddy Gift Card” says CardTrak.com. Noodles & Company has launched a gift card that sits on a tabletop easel and displays the giver’s photo. To personalize the card, the user can visit the “Lunch Buddy Support Center” to upload and print their photo. Or, select a photo of a stand-in “buddy” from a photo gallery provided on the site. Givers can even guarantee their buddy’s availability for the virtual lunch date by using a calendar blocker feature to choose a specific day and time for the lunch. “Lunch Buddy” cards are available in any amount at a Noodles location, or in $20 amounts if ordered online. And, like a buddy, the cards never expire. They can be reloaded at any Noodles location and reused for as many “lunch dates” as desired. Gift givers also are invited to participate in the “Lunch Buddy Photo Contest” launching in mid-December.
PBS Reprises a 2004 Credit Card Documentary Tonight
A new “FRONTLINE” documentary will air nationally tonight on PBS that
focuses on the changes and challenges the U.S. credit card industry
faces in 2009. “The Card Game” is a follow-up to the “Secret History of
the Credit Card” that aired five years ago on PBS. It is a joint project
with The New York Times. Lowell Bergman talked to industry insiders,
lobbyists, politicians and consumer advocates as they square off over
attempts to reform the way the industry has done business for decades.
Among featured guests is Robert McKinley, the founder of Florida-based
CardWeb.com and CardTrak.com. McKinley was also featured on the 2004
documentary and provided much of the research data. The majority of
McKinley’s interview was taped in July in Washington, DC. One of the
most interesting interviews is former Providian CEO Shailesh Mehta who
tells Bergman how his company successfully targeted vulnerable
low-income customers whom Providian called “the unbanked.” Mehta told
“FRONTLINE” “When people make the buying decision, they don’t look at
the penalty fees because they never believe they’ll be late. They never
believe they’ll be over limit, right? … Our business took off. … We
were making a billion dollars a year.” “FRONTLINE” is produced by WGBH
Boston and is broadcast nationwide on PBS. Major funding for “FRONTLINE”
is provided by The John D. and Catherine T. MacArthur Foundation.
Additional funding is provided by the Park Foundation.
DMP APR is 6%-10%; Issuers Offer 0%-5% Directly
Consumers who enroll in a “Debt Management Plan” now typically will receive interest rates from many creditors ranging from 6% to 10%,
compared to a range of 10% to 14% last year. Feedback from CCCS of Greater Atlanta also found the average debt management plan is structured to repay debt in 36-60 months. CCCS notes that many
people who opt for a DMP to repay their unsecured debt are prompted to
seek help after late payments have caused their credit card interest
rates to soar to 28% or more. Other feedback from CardTrak.com shows that many major credit cards firms are offering individual customers a 60 month repayment programs at 0% to 5% interest. One of Citi’s current programs is a 60 month repayment of 100% of the principal at a 0% APR. The program is generally offered to a cardholder that is at least 60 days late. After four consecutive payments the account is reported as “current”. BofA’s similar program offers a 60 month payback at a 5% interest rate.
Credit Card Industry May Lose $8B in 2009
Based on third quarter reports so far it appears the bank credit card industry is on track to lose as much as $8 billion for 2009. This would make the first time in 28 years the industry has posted a net loss. However, with major issuers such as Capital One and American Express posting third quarter profits, the fourth quarter could soften the annual loss to $6 billion, according to CardData (www.carddata.com).
But, charge-offs are still nagging the industry. So far this year, Chase, the nation’s largest issuer, reported a $1.9 billion loss for its card business. BofA is down $4.4 billion for 2009, but the figure is for global cards. Last year the industry posted an $8.1 billion pre-tax profit, compared to a record $40.3 billion pre-tax profit for 2007. In 1980 and 1981 the industry lost $125 million and $110 million, respectively. During this recessionary period, the prime interest rate was 21% while the average credit card interest rate was 19.6%, according to CardTrak.com.
Bank Credit Card Annual Pre-Tax Profits
(VISA, MasterCard, Discover, American Express)
($ billions, except as noted)
YEAR TOTAL
2008: 8.10
2007: 40.30
2006: 37.50
2005: 30.60
2004: 31.60
2003: 29.80
2002: 27.80
2001: 24.30
2000: 20.50
Source: CardData (www.carddata.com)
More Stores Re-Launch Christmas Club Gift Cards
After being shelved for years due to high administrative costs, “Christmas Club” store cards are back. Stage Stores has joined Sears and Kmart in launching new cards this season, according to CardTrak.com.
Beginning October 16th, Bealls, Goodyâs, Palais Royal, Peebles and Stage will offer a “Christmas Cash Club” that will reward customers with $10 for each $100 they load on their Cash Club gift card. Also, rewards will be earned based on the cardâs balance on November 21st. With the Sears “Christmas Club” gift card, customers can deposit funds on the cards and be eligible for a 3% reward. Also, customers who activate cards through October 31th, earn the 3% reward based on the card balance on November 14th. The new “Christmas Club” card can only be used at Sears/ Kmart and the maximum reward value is $100.