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Credit Limit Cut? Your State of Residence Could Be the Reason
When it comes in the form of credit cards, plastic is dramatic. There are always consumers in the news discussing how they've been mistreated by a credit card carrier, and there seems to be an endless stream of hidden policies that rear their harmful heads when customers least expect it.
Take the case of Paul Smith (not of kitschy designing fame), a San Diego resident who was alarmed when his credit card limit was recently reduced from $7,000 to $1,400.
Straightforward Credit Cards Could Be the New Trend
Bank of America announced a new credit card that comes with, wait for it, a simple one-page explanation of terms and conditions. The BankAmericard Basic Visa card will be available in October and features a fixed rate tied to prime and a flat fee of $39 for late payments. Here's more:
- The fixed rate is equal to the prime rate plus a margin of 14 percent, and the rate is the same whether you're making a purchase or taking a cash advance.
- The rate isn't tied to a customer's payment history or credit rating like most credit cards.
- There are no fees for going over the credit card limit.
When a Credit Card Company Can Suddenly Cancel Your Card
Credit card companies are beginning to clean up the profile of their average customer, and they're not doing so by offering lower interest rates that make it easier to pay off debt. Instead, they're just canceling the cards of those customers who are simply bad for business. There are few things more humiliating than discovering that your card is no longer active when you're attempting to make a purchase, but there are certain situations when your credit card issuer can legally cancel your account without warning.
Woman Mistakenly Charged $23 Quadrillion For a Train Ticket
Minor bogus credit card charges are usually the fault of identity theft or a simple business mistake, but imagine how you'd react if you found a $23 quadrillion bill on your monthly statement!
An 18-year-old Johns Hopkins University student recently returned home from a trip and received her first overdraft email ever. She suspected identity theft, but was shocked to find a $23,148,855,308,184,500 charge on her statement from what she thought was a $10 train ticket purchase.
Ask Savvy: Should I Transfer My Debt Balance to a 0% Card?
Dear Savvy,
I have two credit cards with high interest. Should I pay them off with my one card that has zero percent interest to reduce paying over $750 annually in finance charges?
Savvy says: I'm assuming by "paying them off" you mean transfer your existing balances to an introductory rate, zero percent card.
Don't Charge These Purchases to Your Credit Card
Whether we like it or not (and I can't imagine anybody likes it), credit card companies have gotten into the habit of monitoring the behavior of their customers based on the purchases they make. Yes, your card issuer might be watching you. And they're making conclusions about your credit worthiness based on your spending behavior.
Sears Offers Payment Help For Jobless Buyers — With a Catch
Sears may be a bit late to the game of providing greater purchasing security, but the company has announced a buyer protection program for those worried about losing their jobs. Starting Monday and until Aug. 1, the free program will cover home appliance purchases of more than $399.
Have You Ever Opened a Store Credit Card Out of Sympathy?
"No thanks" is my standard answer when salespeople suggest I open a store credit card. I know they're just trying to fill a quota placed on them by their managers, and in some cases they earn commission, but any sympathy I feel for them having to ask that dreaded question has never prompted me to open an account.
MSNBC recently shared the story of Mary Uhazi, who is struggling to repay the $60,000 she owes on credit cards.
Guess How Long It Would Take to Pay Off This TV?
Americans are starting to smarten up about credit cards. Irresponsible spending on credit has caused a lot of trouble for too many people, and in light of the new credit card reform bill, Consumer Reports attempts to send a point home in its July issue.
It presents this scenario: You charge a $1,000 TV to a credit card with a 13 percent interest rate, and make only minimum payments of 2 percent each month.
Find Out If You Could Qualify For Lower Interest Rates
The APR on your credit card determines how much interest you'll be charged on your balances. So why pay more if you don't have to? If your credit score reflects your ability to use credit responsibly, then you should at least have an APR equal to other borrowers with your score.
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