Credit Card Blog

It is getting increasingly difficult for consumers to get approved for credit cards (and other forms of credit, as well.) 

I’ll bet you didn’t think about it much when you were a few days late paying your cell phone bill- until it became the reason why you couldn’t get approved for a credit card! 

Lenders are now using more personal data and payment records than ever before when they are deciding whether or not to approve a credit request.  Things that had little or no effect on a credit rating as recent as last year are now becoming the sole reason for a denial notice.

Banks and credit card companies can access your cell phone payment records, mail-order paymetn records, bank overdrafts and other forms of credit. There are some companies that can find out whether you have been paying your rent on time.

All of this information is now being used when a lender decides whether or not you’re worthy of credit.

The fed’s lowered the interest rates- so taking out mortgages or refinancing existing mortgages would result in lower interest rates.  The rates have dropped 2.25% since September.

But what about credit cards?  Shouldn’t your credit card interest rates decrease, too?  Seems some of the popular credit cards actually have increased their rates.  Interesting.  Check your credit card interest rate- if it hasn’t decreased, call up and ask why and if they can lower your interest rate.  If they say no? Time to shop for a credit card with a better interest rate!

American Express and their Blue card had a rate decrease of .5% in October- but is now back to it’s 12.24% rate. Chase Freedom, from JP Morgan Chase went from 14.24% to 17.24% in January.

If you have the Citi Platinum Select card- you’re probably experiencing the rate decrease. Between September and January, the interest rate went from 10.24% to 8.49%. 

What are your credit cards charging you? Try to take advantage of the rate decreases by getting your current card rate lowered- or getting a new card to transfer your balance to.

Zero percent interest cards are a great option for some card holders, but you’ve got to read the small print before you sign up. Don’t accept a mailed offer for a pre-approved 0% interest card just because your other cards are maxed out. Zero interest cards might seem like an easy out, but they’re not always a simple solution.

First, remember that “pre-approved” is just a marketing term; nobody can approve you for a credit card without having permission to look at your credit report. If you do get approved for a 0% interest card, read the terms and conditions carefully. That 0% interest won’t last forever, and it might not apply to both purchases and balance transfers. Also look for fees, and find out if the card issuer participates in universal default. If they do, you might be penalized for unrelated negative items on your credit report.

Call the card issuer’s customer service line if you need any terms and conditions clarified. Be aware of the card’s APR after the introductory phase ends. If you’re certain you can pay off your transferred balance during the 0% phase, go for it. You’ve got nothing to lose but high interest rates.

The controversy surrounding the use of RFID (Radio Frequency Identification) in credit cards has been going strong for years. Proponents of the technology point out that, through the use of one-time virtual transaction numbers, heavy encryption, and sales that don’t require the card holder to hand their credit card to another person, RFID offers many layers of security.

Detractors insist that anyone with the appropriate scanner can read RFID card information from a distance. Researchers at the University of Massachusetts even found a way to skim credit card numbers and expiration dates in plain text.

If you’ve received a credit card with an unwanted RFID chip, getting rid of it is rather anticlimactic: simply call your credit card company and request that they replace the card with an older version. If you like the chip but want to thwart remote card skimmers, try lining your wallet with tin foil. It sounds comical, but it’s been proven to work.