Aaaand…we’re back! There was a bit of downtime as the world’s economy seemed to collapse and all of the credit card issuers and banks stopped issuing credit, but I think we’re finally coming out of it at long last. The financial institutions are coming out with new products, but the game has changed a bit with the new laws passed by the U.S. congress which took effect as of February 22nd. We’ll be covering the changes and new cards right here–stay tuned!
The Wall Street Journal recently posted an article detailing the "Five Ways to Use Plastic Wisely". As an individual that is sick of always hearing why credit cards are inherently bad from those that lack the willpower to control their own spending habits, I applaud the publishing or articles on smart-spending that the WSJ (among other media outlets) has been focusing on lately. It's the old "do guns kill people or do people kill people?" routine (do credit cards make you spend money you don't have or do you make that conscious decision?).
The credit industry has taken a beating over the past six months. It used to be that companies were paying hundreds of dollars to get you to sign up for their card. They used to offer such perks as 0% APR balance transfers with no fees. Not anymore. Now your lucky if what you have already doesn't get canceled or have its limit decreased.
Since last Thursday, February 5th, your credit score has been calculated differently. Ever since having passed vote in the Federal Reserve Board (as discussed on the forum) I've been waiting to see when the changes would actually take effect. Well, they've taken effect, so it's best to know about them so that you can tailor your financial habits accordingly.
Everybody is hurting in these rough economic times. Now, one of the most respected names in the credit card industry is doing their best to remain viable in a tough situation. The latest headlines include American Express significantly reducing advertising, lowering credit limits, increasing APR's, and the outright canceling of some people's cards.
I just wanted to wish everyone a happy holiday season and a great new year!
Credit has become such an issue that the government has created a kitschy web site devoted to teaching consumers the basics of how the system works. Yes, welcome to the 'Bad Credit Hotel' located over at ControlYourCredit.gov. Staffed entirely by African-Americans for some reason, this slow-loading Flash 'game' has the feel of the old graphic adventure computer title…except it seems to be lacking the fun. I wonder how many tax dollars were spent on this…
The link for the Flash version is here, the non-Flash version is here.
It's not until you start a industry-focused blog like this that you really begin noticing all of the changes taking place in that industry. Well, right now I can plainly see that the credit card and banking industry is really hurting. It's hard to find any bank that isn't in a distressed situation, trying every tactic available to cut costs. It's taking a ton of time just to keep up with the changes that are happening week-to-week!
A little bit late with this one as I have been out of the country on vacation recently, but here is something to remember while doing your Christmas shopping during the next month. Through January 4th, 2009, use your Discover card for any purchases at participating malls around the country, and receive a $20 gift card for every $200 you spend. And that's on top of the everyday rewards you usually get for using your Discover card!
It had to come about sometime. I have heard directly from an affiliate of Chase Bank that they are yielding to the recent economic woes and significantly downgrading the Chase Freedom Visa card. Goodbye 3% cash back, hello same ol' 1% rewards that all of the other cash-back cards offer.
