Debit cards are getting very popular nowadays as credit cards begin to lose popularity among American consumers. Credit cards have been constantly getting bad press ever since the economic crash exposed how fragile the credit card industry situation is. When the economic crisis happened, credit card companies almost went bankrupt as credit card holders found themselves unable to pay their balances and defaulted on their debts.

Now, credit cards are also getting bad press because of the recent astronomical rise of interest rates, the cutting of available credit to very low values, the increase of fees and addition of more fees and other such activities. As a result of these, many credit card holders have decided that getting a debit card is the answer to their problems.

Unlike credit cards which uses what essentially amounts to short term loans to cover purchases, debit cards are linked to a bank account where the card holder maintains a balance which is accessed and used every time the card holder uses the debit card. Generally speaking, it is a sound idea. A debit card would not carry the risk of going into debt because each purchase is essentially already paid. However, there are hidden trips that unsuspecting debit card holders could fall into. One particularly nasty one is overdraft fees.

Basically, a debit card holder is charged an overdraft fee when a transaction goes higher than the available cash in his bank account. The transaction goes through but the card holder becomes liable for the difference and is charged an overdraft fee.

The American Bankers Association recently made publicly available a survey taken from a thousand consumers. According to the study, 82% of those involved had not paid any overdraft fees in the past 12 months. Among those who did pay overdraft fees, 5% said that, in 12 month’s time, they had to pay ten or more separate overdraft fees. Most of those who had to pay overdraft fees said that they were happy that their transaction had been covered, even with the fees. The remainder said that they would have preferred refusal from the bank instead of overdraft fees.

Paying overdraft fees these days can be very expensive for a card holder, especially with the slow economy and the rising unemployment. Generally, overdraft fees are avoidable. However, to avoid getting overdraft fees, a card holder has to constantly check his account to be informed of the available balance. A better way would be for debit card issuers to inform the card holder of an impending overdraft, allowing him to cancel the transaction instead of getting hit with overdraft fees. There may soon be government legislation supporting this or something similar. In the meantime, debit card holders will just have to keep checking their bank accounts.

The current recession has really had a large impact on the financial consciousness of American consumers. Nowadays, American consumers are more aware of their finances than ever before. Whereas, a few years ago, the trend was uninhibited spending even when it was out of proportion to earnings, nowadays, consumers are focusing on savings, paying off debts and careful use of credit.

The eagle eye that consumers are keeping on their finances has uncovered many questionable actions being done by credit card companies. One particularly popular and well debated one is the issue of overdraft fees. Overdraft fees are the fees that are charged to a credit card holder when he or she goes over the credit limit of the credit card. For debit card holders, it is charged when their purchase brings their available balance to less than zero. Overdraft fees are usually quite high. For example, an overdraft of a debit card for even just a couple of dollars averages around $35.

The high cost of paying overdraft fees has certainly got a lot of consumers raising their eyebrows. Credit card companies contend that overdraft fees are necessary. It is also a well known argument of credit card companies to claim that the ability to overdraft is actually a feature which saves the card holder from embarrassment when he or she finds out there is not enough cash or credit available to cover their purchases. There is a small possibility that credit card holders may have preferred to pay large fees than be embarrassed at the counter but the economic recession has certainly done away with that. In these days of slow economic activity, card holders would much rather get embarrassed than pay a large overdraft fee.

Card holders are also miffed at the audacity of credit card companies to charge these fees without even allowing the card holders to cancel the transaction at the counter if it results in an overdraft. They are even more miffed at the fact that overdraft fee protection is usually enabled by default in card agreements without properly informing card holders. Recently, federal regulators also released a report saying that some banks are actually manipulating customer accounts to encourage overdraft fees. A study from the Federal Deposit Insurance Corp. (FDIC) showed that credit card companies process purchasing transaction in such a way so that larger purchases are accepted first before smaller ones.

Charging overdraft fees is actually a very lucrative profit stream for credit card companies. According to the FDIC, the credit card industry will earn $38.5 billion from overdraft loans this year, more than twice what they earned in 2009. Safe to say, overdraft fees are going to be staying for a while. Consumers will need to keep an even sharper eye on their credit card’s available balance and their debit card reserves.

7-Eleven Inc. has recently announced that their petition drive, “Stop Unfair Credit Card Fees”, has garnered 1.6 million signatures. According to officials of the company, the result of the petition is an overwhelming referendum calling for Congressional action.

The announcement is the result of a recent drive of 7-Eleven franchisees across the United States numbering in the thousands lobbying for support from their customers which ran from June 22 to August 10. These neighborhood stores were asking their customers to sign a petition calling for legislation to be passed by Congress that would stop credit card networks and banks that issued credit cards from charging retailers with unjust transaction fees.

The issue regarding interchange fees is a hot one and the arguments between retailers angry about unfair transaction fees and credit card issuers insisting that transaction fees are necessary and fair has been escalating. Both sides have argued their points publicly, trying to gain popular support for their causes by buying newspaper ads, conducting studies supporting their stance and even releasing YouTube videos.

Interchange fees are fees charged on retailers whenever that retailer accepts a transaction using credit cards. They are not transparent to the consumers. The interchange fees add a percentage to the cost of the transaction. The added on cost is ultimately charged not only to customers who use credit cards but to those who don’t as well. American convenience stores paid 68% more for transaction fees than they earned in profits according to the 2008 State of the Industry study from the NACS (National Association of Convenience Stores).

The cost of interchange fees in the United States is usually $2 for every $100 credit card purchase. Because convenience stores typically handle smaller purchases, they usually get hit by much higher rates. For instance, if a convenience store accepts a $1.00 purchase from a customer, it will be charged $0.20. That means that 20% of the transaction that the merchant accepts goes to the credit card user. The rules for transaction fees are solely determined by the credit card issuers. Merchants are also required to accept credit cards for all transactions and they are not allowed to set a certain minimum amount of sale for credit card use which could help alleviate the cost of transaction fees.

President and CEO of 7-Eleven, Joe DePinto said, “Consumer response to this grassroots petition drive exceeded expectations. Customers share our frustration over the hidden fees that American retailers and, ultimately, consumers are forced to pay. They too want Congress to take action to regulate these unfair fees, which are the highest in the industrialized world”.

It seems that not everyone is getting the blues because of the weak economy. As most of the financial sector button up against fears of a weakened economy, it seems that a majority of small businesses are maintaining a positive outlook and looking forward to better days.

A recent survey run by the JPMorgan Chase & Co. credit card division, Chase Card Services, shows that four out of five small businesses surveyed are either moderately or aggressively pursuing their growth strategies, producing more revenues among their current clients and moving up to newer markets. Only 5% of these small businesses were not interested in aggressively seeking business growth.

The list also shows that 75% of the small businesses who were part of the survey believe that the United States economy and their businesses as well, will be getting much better in the next three to six months. The survey questioned a hundred and sixty eight senior and chief executives forming the annual “Inc. 500/5000” list highlighting small companies with the fastest growth between the months of September 10 to September 14. The results of the survey are significant considering that small business operations number around 27 million in the U.S. These small businesses account for more or less 40 million jobs nationwide.

President of a new portfolio of credit cards, Ink from Chase, Richard Quigly says that the optimistic data collected from the survey is a validation of a sense of improvement in the economy. Notably, the new line of credit cards that Quigly is president of are targeted to the small businesses market.

About the results of the survey, Quigly said, “There’s certainly a bit of light on the horizon”. He added, “We’re not home yet but it’s certainly going in the right direction”.

The survey results also have something to say about employment. According to the survey, small businesses that were adding positions were at 49%. On the other hand, 29% said that they were not adding jobs, though they were hiring to upgrade talent. 15% said that they were not hiring and 5% said that they were letting go of some of their staff.
When asked what the toughest part of running a business in this economy IS, most of the business owners answered: accurate forecasting.

The positive outlook of small businesses may not reflect reality, however. According to Quigly, the positive outlook of small businesses maybe driven by “gut level passion” instead of logic. He said, “Logically, I think a lot of people wouldn’t even start a small business”.

The days of freewheeling credit card spending is definitely over. The economic recession saw to that. The upcoming Credit CARD (Card Accountability, Responsibility and Disclosure) Act is going to see to it that it stays that way.

The Credit CARD Act is designed specifically to protect consumers from the more predatory practices of credit card companies. CEO of LowCards.com, Bill Hardekopf gives one good example of how the Act will accomplish this. Come February, once a credit card has been approved, the credit card company will not be able to raise the interest rate for one year in most cases, he said. There is an exception: if payment is late for more than 60 days, then the credit card issuer may raise the interest rate. After the one year period, the credit card company can then raise the interest rate of the card. However, the new interest rate will only be applicable to new transactions.

There are several other changes that the Credit CARD Act will bring which will limit the ability of credit card companies to raise interests on existing credit cards. Consumer Action deputy director of national priorities Ruth Susswein said that card issuers are therefore likely to raise the interest rates on credit cards during the months before the activation of the Act as a result.

Due to these many changes and their effect on profitability, credit card companies are busy changing their business practices to compensate. If many of these changes are not very sensitive to the current plight of credit card holders, what with the ongoing economic depression, credit card companies don’t seem to consider that of much concern at the moment. Adam Levin, cofounder of Credit.com and currently its chairman said, “We’re not seeing kinder, gentler credit card companies right now”.

Credit card companies these days are busy dropping existing credit lines on some cards, outright canceling credit cards and raising the rates for their minimum monthly payments. A few companies have raised their minimum monthly payment rates from 2% to 5%, a jump of 3 percentage points. This means that, for a balance of $10,000, the minimum monthly payment will be $500 instead of $200.

“They want more of their money back faster”, Credit.com president John Ulzheimer said.

Aside from wanting their money back faster, credit card companies are also holding on tighter to it. According to credit card experts, consumers who have credit scores that are in the 650 range are having a harder time getting great credit card deals than they used to get in the past. Nowadays, a credit card holder may need a credit score of around 750 or higher to get some decent treatment. Ulzheimer says that, now more than ever, good credit scores are going to be very important for consumers.

Credit cards are fast becoming the de facto standard for non-cash transactions. In fact, during the past few years, more and more people moved towards using credit cards for purchases instead of cash. The economic downturn and the resulting credit card crisis may have slowed that down a bit but, in the long run people will probably still prefer the convenience of using a credit card or similar type of service instead of cash transactions.

Using Credit Cards? Watch Your Statements For Overcharges

The convenience of credit cards is not without risks. In fact, the more sophisticated technology required for allowing credit card transactions introduces more risks as well. One of the biggest and most concerning for credit cardholders is the risk for overcharges.

Overcharges happen when a credit card holder receives charges more than they actually paid for. There are several factors that can result to overcharges such as mathematical errors, human errors and the like. Overcharges are not rare, too and, according to experts in consumer affairs, they are mostly seen when credit card payments are made at restaurants, hotels and gas stations.

Brian Rauer, the executive director of the Better Business Bureau for the Long Island and Mid-Hudson region says that overcharges could be caused by “as simple as an error, a mathematical error”.

Another possible reason for overcharges, experts say is the practice of credit card issuers of sometimes freezing a certain amount when the credit card is already swiped at the gas station, the express checkout or the restaurant but the total amount of the purchase is not yet made. The amount could range from $75 to 100$ or even more, depending on the situation.

Spokesman for MasterCard Tristan Jordan says that credit card issuers follow this practice in an effort to make sure that there are enough funds to cover the transaction. He said, “The issuer has to protect itself against insufficient funds”.

Thus, when a credit card holder’s card gets swiped, the card issuer holds a fixed amount they assume cover what will be the final amount of the purchase. Once the transaction goes through though, the hold is expected to be lifted and the remaining amount not used up by the transaction credited back to the card holder. Jordan says that the account freeze has to be lifted within twenty four hours of the transaction.

For credit card holders, what this means is that they need to remain vigilant in keeping a watch on their credit card statement and they need to ask for and keep receipts of any credit card transactions. It is important to compare the amount in the receipt against the amount actually printed on their credit card statements to determine if there are any discrepancies or overcharges. If there are, a quick call to the merchant involved or to their card issuer can usually clear things up in a jiffy.

The second largest bank in the United States, JPMorgan Chase & Co. launched their charge card aimed at small businesses last Wednesday. This move puts them directly in competition with American Express Co, the dominant company in this particular market.

Along with the launch of their charge card, JPMorgan also launched three new credit cards specifically targeted at small businesses. These credit cards offer several incentives for card holders such as cash backs, rewards and large credit limits. The small business sector has been having a lot of trouble with credit cards recently and these three new credit cards from JPMorgan might just be the answer that they are looking for.

Called the Ink Bold, this new card that JPMorgan is offering is actually the first charge card to come from an issuer of Visa or MasterCard branded credit cards. Charge cards operate similarly with common credit cards but with a small difference. Not like credit cards where monthly payments can be rolled off to the next month, charge cards require full payment at the end of each month. This helps reduce the risk of defaults, a very important feature considering the record highs that the United States default rate has reached recently.

Given these developments, once can easily see that JPMorgan maybe getting back a bit of its confidence on the United States economy. Richard Quigley, president of the credit card division of JPMorgan Chase, Chase business cards, said, “We really believe we are starting to see a stabilization point in the economy, and there are going to be small-business owners that are going to be leading the U.S. out of this recession”.

Expanding to the business sector is no trivial matter either. Large profits can be seen from small business credit card holders. According to Quigley, small business expenses include $5 trillion on non-payroll expenses in the U.S. 70% of those expenses are also paid with checks, he further added.

With the release of their new charge card and credit card lines, JPMorgan hopes to be able to diversify their card business, an important goal in a time when large credit losses and a new upcoming law denting credit card business.

However, even with this diversification, JPMorgan doesn’t yet expect to see any profitability, at least up to 2011. Notably, the charge card carries no fee for the first year of ownership. Afterwards, it will cost the owner 95% to keep the card. The new small business credit cards also will not have an annual fee for the first year. After that, it will cost $60.

Currently, the JPMorgan financial company is the biggest issuer of Visa branded credit cards. It is also the second largest MasterCard issuer of branded credit cards.

Ever since the economic crisis hit, consumers have become more and more conscious of their finances. This is very understandable, considering that a slight financial mistake can easily be exacerbated by the weak economy thereby making it a serious problem.

Thus, this particular trend of consumers getting money smart and doing their best to avoid fees has become more commonplace nowadays. Another one which was recently studied by the American Bankers Association is the determination of consumers to avoid overdraft fees.

Recently, the American Bankers Association (ABA) ran its annual survey. According to the survey, 82% of consumers constantly checked on their balances to avoid overspending and avoided anything that could wind up as a hefty overdraft fee in the long run. The survey also shows that consumers are also learning fast from their mistakes. Of the total number of consumers charged with overdraft fees, 36% were able to get hit at most only once during the last year. Unfortunately, the study also shows that 35% of consumers were charged with four or more overdraft fees. Of that 35%, 11% were charged with 6 to 10 overdraft fees. Considering that each overdraft fee could cost $29.00, the total cost of the fee could be as high as $290.00.

According to Nessa Feddis, ABA senior federal counsel and retail expert, “Anyone’s bank account can fall short from time to time, but overdraft fees are 100% avoidable”. She elaborated that, “Just like a parking ticket, they’re meant to be a deterrent”.

The trend of financial responsibility among consumers is not an isolated event, According to the Federal Reserve, consumers have been avoiding debt for the 6th straight month in July. Borrowing for everything but real estate dropped to a record 10.4%. What these figures show is that credit cards are becoming less profitable for credit card companies, particularly for companies relying on fees such as overdraft fees. This is alarming considering that, Moebs Services Inc recently claimed in a survey that 45% of banks and other financial institutions acknowledged that a large part of their income came from fees such as the overdraft fee. In fact, banks and financial institutions are looking to collect around $38.5 billion this year from overdraft fees alone.

Consumers can easily avoid overdraft fees. ABA actually has a number of suggestions for consumers such as keeping track constantly of balances and transactions. This also includes automatic payments. Nowadays, balance and transaction tracking can be easily done through the internet or the phone. It can also be checked through any ATM. Mobile banking offers also allow consumers to check their balances through their cell phone. Consumers can also check if their bank has an automatic notification service for when their balance drops to a certain level and apply for such a service.

Its called a credit score and its what banks and other financial institutions use to gauge how much of a risk a borrower is. Basically, the higher the borrower’s score, the better the chances of him securing a loan, not to mention the easier loan arrangements. American consumers understand very well how important a credit score is and are very aware of them. A lot of the more financially savvy consumers do their best to keep their credit scores high. Unfortunately, what credit card companies have been doing recently are hitting the credit scores of millions of Americans. Many are seeing their credit scores fall, largely through no fault of their own.

As credit card companies try to weather the stale economy and the upcoming Credit CARD (Card Accountability, Responsibility and Disclosure) Act, they have been busy changing many details about their credit card business which are having a negative effect on the credit scores of many American consumers.

One particularly glaring example of actions of credit card companies that are hurting credit card holders is the cutting down of credit card lines. A large part of credit scores depends on the ratio between the available credit that a credit card holder has and how much balance he carries. The ideal setup is large available credit paired with low or zero balance. However, when a credit card company closes a credit card holders credit card line, his available credit will also be lowered. Thus, if he has a balance, his ratio will get smaller which results in a lower credit score.

Because credit card companies are cutting down large numbers of credit card lines, a large portion of credit card holders are getting hit on their credit scores. It is also surprising to note that a large part of credit card line reduction is being aimed at credit card holders who always pay their bills on time and who are careful not to go over their credit limits. Unfortunately, these people are natural targets for credit card line cuts. Because they have a lot of unused credit, the very reason why they have healthy credit scores, credit card companies are not seeing a lot of profit from them. Credit card companies are therefore cutting down their credit lines to free up more capital, as they are required to hold a capital against a credit card holders in case they ever default.

The practice of credit card line cutting down isn’t going to go away anytime soon, either. According to analyst Meredith Whitney, credit card companies will be eliminating $2.7 trillion of the available $5 trillion on credit cards. So credit card holders, if they haven’t gotten hit with a credit line cut, can expect their credit to be cut any time soon.

Chairman of the Federal Reserve, Ben Bernanke, released a statement last week claiming that the recession is “likely over”. With a relatively more positive economic outlook, credit card companies are beginning to reposition their credit card portfolios towards growth. Growth, however will probably proceed at a much slower pace compared to their recovery during past recessions.

San Diego State University professor of finance, David Ely says, “[Banks] are, of course, looking to make money on their cards so its reasonable for them to adjust to the new regulatory environment”. He further added that, “You’d expect them to seek ways to make these cards profitable”.

So how are credit card companies maneuvering their credit card operations to maximize profitability?

First, credit card companies have increased interest rates across the board. Consider the new BankAmericacard Basic Visa card, a new credit card line from Bank of America designed for a more simplified and understandable rates and terms. The card offers a lot of benefits to credit card holders such as having the same interest rate for all types of transactions, from purchases to balance transfers. The APR (annual percentage rate) of the credit card is based on the prime rate plus 14%. That makes it 17.25%. Compare that to past credit cards being issued by Bank of America which had a 9.99% plus prime APR.

Another trend among credit card companies is moving to variable interest rates. Consider that, about three years ago, 80% or more of all credit cards used a fixed interest rate. Currently, that has been reversed. These days, 80% to 85% of credit cards are using a variable interest rate. With a variable interest rate, credit card holders will see their interest rates rise and fall depending on the prime rate.

Fees are also another large source of profits for credit card companies. Annual fees, once almost non-existent in the credit card industry, are now becoming more common. Annual fees are a huge turn off for credit card holders forcing credit card companies to get more creative. Thus, some credit card companies are making use of usage fees. A usage fee is charged to a credit card holder if he or she is unable to exceed a certain set amount of spending on their credit cards.

Credit card companies are also focusing their marketing more on consumers with good credit and ample financial means. Consumers belonging to this category can expect an increase in marketing mail from credit card companies.

Lastly, credit card companies are making rewards programs much less accessibly to card holders. A rewards program is expensive in the part of credit card companies. However, they are very popular among card holders and turning away from them could turn into disaster for a credit card company. To get around this, credit card companies are making rewards more expensive and decreasing their shelf life.

Nowadays, some economists are saying that recovery from one of the most devastating economic downturns in America may be on the horizon. There are several signs supporting this, they say. Factory orders for products and stock prices are beginning to gain, the housing markets are showing signs of stabilizing and job losses are beginning to moderate. Officials say that the growth of the economy is already beginning.

While these may be welcome changes for the economy, analysts say they will not be enough to bring back the economy to full health. A big factor missing in the equation is the participation of consumers. A huge 70% of economic activity depend on consumer spending. Unfortunately, consumer spending will not be returning to previous levels anytime soon.

When the economic crisis hit, consumers found their finances completely ruined. Large credit card debts hit many American consumers. The crash of the housing market also made a huge dent and so did the surge in unemployment rates. As a result, American consumers began to button down on their spending. Many American households decided to let go of extra spending and focus on necessities. Even more decided to tone down as much as possible on credit card spending. Reports from consumer spending watchers show that this trend is not about to end anytime soon.

American Express ran a survey of 2,032 people last month asking them what they would do should they find $500. A list of possible answers included going shopping, dining out at a restaurant and taking a trip. Surprisingly, only 10% chose any of the luxury expenses. The majority of the respondents opted for paying off their bills, using the money to reduce their credit card debt or putting the money on savings.

The survey results shows the current trend of consumers prioritizing necessities spending and savings. A lot of consumers, it seems have been bitten hard by the economic downturn and are getting spending shy. However, the problem goes far deeper than consumers not wanting to spend. A large number of consumers simply avoid spending because they cannot.

A large number of American consumers are carrying too many debts and these will probably stretch on even until the recession has ended. According to data from the Federal Reserve, American household debts collectively saw a rise of 133% of income in 2007, after taxes. This is double the percentage seen during the middle of the 1980s. What this means is that American consumer debt in 2007 was a third more than the take home pay and other income sources that they had.

The economic crisis coupled with the credit card crisis has revealed a lot of conflicts between credit card companies and their customers. The conflict between private credit card holders and credit card companies resulted in the highly controversial Credit CARD (Card Accountability, Responsibility and Disclosure) Act. That conflict is more or less won, with credit card holders grabbing the dubious win.

Right now, another conflict is brewing. This time around, it is between the credit card companies and retailers. The center of the conflict is the interchange fee.

Interchange fees are fees that credit card companies charge on retailers whenever they accept a credit card backed transaction. Retailers are arguing that the interchange fees are too much for them. They say that these fees are too high and are a negative impact on their profits. Retailers are often forced to pass the cost to their customers instead. On the other hand, the credit card industry is arguing that they are providing a very useful service for credit card holders and retailers alike as more and more American consumers prefer to pay with credit cards. They are therefore entitled to proper compensation, they argue.

As the arguments rage back and forth between the two camps, it has been steadily escalating. Both camps have done everything they can to capture popular support for their side and discrediting the opposing side. These include buying newspaper ad spaces, making informational videos and releasing several studies and researches supporting their cause. 7 eleven, the popular national retail store chain has also embarked on petition drives in a bid to gain popular support.

According to retailers, the cost of interchange fees is second only to the cost of labor. What makes it worse is that interchange fees are non negotiable. Credit card issuers, on the other hand are arguing that retailers greatly benefit from the service that they provide and that retailers just want to use the service for free.

At the moment, there are also three bills being considered in Congress which could lead to the regulation of interchange fees for credit card transactions. One of the biggest complaints of retailers is that they are currently unable to band together and enter into a negotiation with banks for better interchange fee rates. This complaint will be addressed by the Congressional bill introduced by Michigan’s John Conyers Jr., House Judiciary Committee Chairman. A companion bill has also been introduced by Senator Richard J. Durbin. From Illinois. The third bill, introduced by Representative Peter Welch from Vermont, will allow retailers to set minimum and maximum values for accepting credit card purchases.

Credit card scams are one of the worst things that can happen to credit card holders. Unfortunately, credit card scams are fast becoming wide spread and credit card scammers are also getting smarter and more sophisticated in their operations. Credit card holders who get scammed run the risk not only of losing money but also losing control of their identity.

It is not unknown for people to have their identities stolen so that they completely lose control over it. Their identities are used to open banking and other accounts by unscrupulous individuals, making them liable for accounts which are practically someone else’s. Also, when these victims open their own bank accounts, the account and the money inside the account are instantly available to these unscrupulous individuals. It is therefore imperative for credit card holders to avoid becoming a victim of credit card scam.

Currently, several government agencies are keeping an eye on scams. In fact, consumers can easily go on-line and visit the web sites of the Better Business Bureau, the Attorney General and the National Fraud Information Center, to find out information about scams and what they can do about it.

According to these authorities, like all scams, a lot of credit card scams rely heavily on gaining a person’s trust. Unfortunately, most credit card holders are well conditioned to respond favorably to persons who seem to be a person in authority. Thus, a call from some unknown person who claims to be from the credit card company and who knows some personal information about the credit card holder (probably harvested from other sources such as public records or on-line social networks) may easily fool the credit card holder into trusting the scammer.

A deal which seems to be too good to be true usually is, the authorities point out. Credit card holders who run across deals that offer a lot in return for very little are best served walking away from that deal. A lot of scams rely on the sense of greed among people which can often blind them to some obvious truths.

Another signature of scams, the authorities say, is that they often force their targets to make decisions quickly. Usually, scam offers demand quick responses. Some also will not accept “no” as an answer. These pressuring techniques are what scammers use to force credit cardholders to make snap decisions and keep them from thinking the deal through completely, potentially spotting the scam.

Finally, every scam authority out there emphasizes that credit card holders have to keep a tight rein on their credit card account number. If anyone asks for their credit card account number, credit card holders need to be completely sure of whom the person asking is. It is generally ill advised to provide this type of information through the phone, through email or through instant messages. These methods offer very little in the way of authenticating if a person actually is who he claims to be.

Young consumers are often the victim of enticing marketing campaigns from credit card companies. Credit card companies recognize that hooking younger consumers to their products will usually mean long term benefits for them.

Credit card holders are more apt to stay with the credit card company that they first enrolled with. This is one of the major reasons why credit card companies are so attracted to young consumers. Another reason is that young consumers are generally less responsible when making purchases and are more naive when it comes to managing their credit. This means that younger consumers have a higher tendency to overcharge, miss monthly payments and maintain revolving debts.

Many experts believe that younger consumers are better off just skipping from getting credit cards. Although they may get a lot of convenience when they enroll for a credit card, the chances of ruining their financial future is also very high. Studies regarding credit card usage among college students, probably the most highly credit card marketed segment among young consumers, have shown that freshmen students with credit cards already carried relatively large debts to their name. A high number of college students also graduated already burdened with debt, even before they have found the means to pay their debts off.

Fortunately for younger consumers, they will have some protection against these types of practices from credit card companies once the Credit CARD (Card Accountability, Responsibility and Disclosure) Act becomes fully activated. This will be on February of next year. One of the major focuses of the Credit CARD Act are young credit card holders. The act will minimize credit card marketing to younger consumers and will make sure that young consumers who apply for credit cards have the proper means to pay them off.

However, for now no protections exist yet for young consumers other than their own smarts. It is therefore a good idea for young consumers to educate themselves first about credit cards before diving into the world of credit card spending.

A few things that young consumers need to keep in mind is that credit cards are serious business. It is always a good idea to pay any balances completely every month and a bad idea not to do so. Their current spending habits will also be something that they will carry with them in the future in the form of credit scores. Bad spending habits now could mean difficulty in getting a loan or mortgage in the future. Finally, it is a good idea for young consumers to remember that credit card companies are in it for the money. Any marketing they do is calculated not to benefit the credit card holder but to bring in profits for themselves.

When the Credit CARD (Card Accountability, Responsibility and Disclosure) Act was signed into law last May, one particularly glaring omission was made. While the Credit CARD Act carried numerous provisions for the protection of private credit card holders, it held no protection at all for small businesses using credit cards.

Small business who are using credit cards are just as vulnerable to random interest rate increases, unfair fees and other questionable credit card industry practices as any regular credit card holder. As a matter of fact, when the economic crisis hit, a lot of small businesses found themselves leaning on their credit cards to keep their businesses afloat. This further increased their exposure to the questionable practices of credit card companies. Many small businesses had hoped that they would be included in the provisions of the Credit CARD Act. They were not.

Fortunately, congress may soon be considering some credit card protection measures for small businesses come this fall. Dubbed the Small Business Credit Card Act of 2009, the drafters of the provision are aiming to extend the protection being offered by the Credit Cardholders Bill of Rights to small businesses, specifically businesses with 50 employees or less.

The Small Business Credit Card Act of 2009 will try to amend the Truth in Lending Act to include some forms of protection for small businesses against unfair credit card industry practices such as arbitrary changes in billing due dates, unannounced or retroactive interest rate increases and the notorious doubly-cycle billing. The Act also aims to provide measures allowing small business to opt out of any credit card agreement changes such as increases in credit card interest rates, allowing small business to maintain their current interest rates.

The Small Business Credit Card Act of 2009, which is HR 3457 in the House, was first introduced by Representative Neil Abercrombie of Hawaii and three other members of the House last July 31, 2009. An accompanying bill is also at the Senate.

The language in HR 3457 contends that, because of the current economic slow down, small businesses have had to forgo traditional means of raising funds for their operations and are increasingly using their credit cards for capital. Reports from the National Federation of Independent Businesses and National Small Business Association support this. According to them, 44% of small businesses are turning to their credit cards for supplies and inventory purchases and other financial needs. The report also shows that almost one third of these businesses have had their credit card limits cut this year. Also, one third of of these businesses have a monthly balance at or exceeding $10,000.

Credit card agreement changes are rampant, nowadays as credit card companies scramble to recover their losses and prepare for the upcoming full activation of the Credit CARD (Card Accountability, Responsibility and Disclosure) Act. Fortunately, some provisions of the Credit CARD Act were activated last August. These provisions give credit card holders more time to deal with new credit card agreement changes and even gives credit card holders the ability to opt out of any changes, though there are some penalties in doing so.

Yet, even with these Credit CARD Act regulations already active, credit card holders are essentially on their own if they get substantial credit card agreement changes and want to retain the use of their credit cards. Opting out of these agreements often mean that the credit card holder will have to close down their credit card. So what options are there available for credit card holders who want to retain the use of their credit cards without having to deal with any new credit card interest rate hikes?

A consumer who finds himself facing radical credit card agreements always has the option of calling up his credit card company. Amazingly, not many people take advantage of the fact that, whenever their credit card agreement changes drastically, they can call up their credit card company to discuss why it happened. There are a lot of reasons why credit card agreements can change drastically. Obviously, non payment or slow payment are major reasons for this. However, in today’s economic climate, even credit card holders with outstanding credit ratings can still get their interest rates increased or even have their cards canceled. In such a case, a credit card holder should really get in touch with his credit card company to know why he deserved such a change in their agreement.

Credit cardholders who have maintained a good credit standing may also try to negotiate with their credit card company for better terms than what the company offers in their newly changed credit card agreement. This works best for those with really good credit standing. Usually, during such a call, the credit card holder will have to provide some official records of their good credit standing. Therefore, it is best to first prepare the pertinent documentations before doing the call.

It is important to remember that negotiating a credit card agreement change is not exactly easy and, most likely than not, the credit cardholder may only be able to negotiate for minimal changes. Thus, before going into the negotiation, the credit card holder should have a clear idea of what he really wants. For instance, he may have to choose between a lower interest rate or a higher available credit.

Credit card companies are in the business of providing credit cards for profits. Finding markets for their products is often a key to success for a credit card company. One particular market that credit card companies have had great success on are college students.

Every year, thousands of young Americans flock to several college campuses in the country for their college classes. Usually, during every opening semester, the hallways of universities serve as the temporary homes of several booths and kiosks set up by credit card companies looking to sign up a few college students for their credit cards. A majority of these marketers also employ high pressure tactics to convince college students to sign up for their credit cards. These tactics usually include offering gifts and freebies such as consumer electronics.

Experience has shown that college students do not make the best credit card holders. College students with credit cards usually use their credit cards on anything ranging from school supplies to tuition to vacations. What this often means for college students is a lot of debt even before they have the proper means to pay those debts off. SalliMae, a firm managing educational loans to the tune of $188 billion recently stated that college student credit card use was the highest recorded last year. According to the figures, the average senior college student graduating from college owes $4,100. that is a huge jump considering that, in 2004, the figure was at $2,900. The firm also states that the average college freshman already has a debt of $939 for last year. In 2004, the figure was $373.

Because of the worrying trend of credit card use among college students, the Credit CARD (Card Accountability, Reliability and Disclosure) Act contains provisions specifically designed to help college students avoid getting sunk in credit card debt. Title III of the Credit Card Act is titled “Protection of Young Consumers”. This new legislation will make it harder for college students to apply for a credit card. College students who will want a credit card will either have to provide evidence for their ability to pay off their debts or have an adult co-sign for them. The act will also require institutions of higher learning to disclose publicly their marketing agreements with credit card companies. Credit card companies will also be required to stop marketing directly in college and university campuses. Nor will they be able to offer enticing gifts to lure young credit card holders.

The Credit CARD Act will not be going live until February of next year and, in fact, this semester will be the last time that credit card companies can ply their wares to college students. Come next year, college campuses are going to be relatively credit-card-campaign-free.

Massachusetts Representative Barney Frank is currently pushing for an earlier activation date for the controversial Credit CARD (Card Accountability, Responsibility and Disclosure) Act. Originally, the Credit CARD Act was supposed to go live on February of 2010. The U.S. Representative is pushing for activation on December 1 of this year instead.

The Credit CARD Act was drafted by Congress early this year and was fast tracked through it, becoming one of the fastest legislations to go through Congress in recent years. President Barack Obama signed it into law on May and the Credit CARD Act was scheduled for full activation next year, on February. Parts of the bill were scheduled to go live earlier and, in fact, some legislations included in the Credit CARD Act were already implemented last month, in August.

While the Credit CARD Act was unpopular among credit card companies even while it was still being drafted, the delayed activation period has also proven to be very unpopular among credit card holders.

The delayed activation for the act was designed to allow credit card companies some time to adapt to the new credit card legislations. However, what it meant for credit card holders was raised interests and fees, credit being cut down, introduction of new fees and others. As a result, a growing outcry from credit card holders was heard which finally reached Congress through Rep. Frank.

Steven Adamske, an aide of Representative Barney Frank said, “We are not happy about what we are hearing on what banks and credit card companies are doing in advance of the effective date”. He said that, because of this, Representative Frank may soon file a bill recommending the full activation of the Credit CARD Act as early as December 1 of 2009.

The activation of the Credit CARD Act will see restrictions on the ability of credit card companies to raise existing interest rates, charge fees and issue exorbitant penalties on credit card holders. Since these practices are sources for a lot of the profits that credit card companies see, it is predicted that the Credit CARD Act will greatly cut down on the profits of credit card companies. Thus, an earlier activation of the Credit CARD Act would be seen as highly detrimental by them.

In a statement, American Bankers Association card policy senior vice president Ken Clayton had this to say, “We share concerns raised by the Federal Reserve and industry observers that moving too quickly in this area could dramatically reduce the availability of credit to consumers and small businesses at a time when the economy can least afford it”.

Over the years, credit card holders have been seeing their credit card agreements getting more and more complicated, to the point that deciphering them would need some serious commitment from a financial expert. Along with these complicated agreements came some very oppressive – at least from the point of view of credit card holders – policies which ultimately brought on the uproar that resulted in the quick passage of the Credit CARD (Card Accountability, Responsibility and Discolosure) Act of 2009.

Earlier this year, Congress drafted new regulations for the credit card industry. The draft passed through Congress in record time and was signed into law by President Barack Obama this May. The Credit CARD Act is poised (it will be going live on February of next year) to completely change the current state of the credit card industry. The sweeping changes that the Credit CARD Act promises were predictably received poorly by the credit card companies. They complained that the Credit CARD Act is too limiting and warned that, ultimately, they will have to increase the price of their products to compensate.

As the full activation of the Credit CARD bill nears, are getting busier adapting to the changes that the legislation will bring. Some of these changes have not been very well received by credit card holders. These included increased interest rates, higher fees, the introduction of more fees, credit limits being cut down and other changes. A new set of changes are, however being released by credit card companies which are more welcome among credit card holders.

Some credit card companies recently released new, updated credit cards which seem to be a complete turn around of what credit cards used to be before. These credit cards are focusing more on making themselves less complicated and easier to understand for credit card holders. A few days ago, credit card company Chase, introduced the Blueprint credit card. This new credit card is specifically designed to assist credit card holders in paying off their balances faster. With this, credit card holders can set which credit card purchases they will pay in full every month, even as they accrue interests in other purchases. They can also set a target date for paying off purchases not paid off completely for the month. This will be used by Chase to calculate the necessary monthly payments to be made to achieve that goal.

Bank of America also recently announced their new BankAmericard Basic Visa card. This new credit card offers a basic rate applicable to all transaction types, from basic purchases to balance transfers to cash advances. The rate is tied to the prime rate plus 14%. The credit card will also carry no over limit fees and will only have a charge a $39 flat fee for late payments.

As the economic crisis continues and credit cards become more and more expensive to maintain, some credit card companies are seeing the need for a radically different type of credit card for the needs of today’s consumers. One particular bank, Bank of America, has seen it necessary to release a new kind of credit card which emphasizes “simplicity” in its every aspect.

Dubbed the BankAmericard Basic Visa card, Bank of America is trying to entice consumers who are currently getting credit card-shy to their new credit card line by offering a completely “simplified” credit card for them. The new credit card is also an attempt of Bank of America to follow through with the Credit CARD (Card Accountability, Responsibility and Disclosure) Act, the new set of legislations drafted by Congress and signed by President Barack Obama this May. The Credit CARD Act promotes credit cards with simplified and fair terms for credit card holders, something which the BankAmericacard Basic Visa card has in spades.

The BankAmericard Basic Visa card which was announced to the public this Thursday has many features which makes it easier and safer to use for credit card holders. First, it features a terms and conditions agreement which is explained in a single page only. It is also offered to a fixed rate interest which is connected to the national prime rate. The BankAmericard Basic Visa credit card also only has a $39 flat fee for payments coming in late. Credit card holders of the BankAmericard Basic Visa card will also receive no fees if they go over the credit limits of the card. These are just a few of the perks that Bank of America is offering with their new, “simplified” credit card.

Notably, the fixed rate of the BankAmericard Basic Visa credit card is going to be the same no matter what transactions the credit card holder is using. This covers anything from simple purchases to cash advances. Specifically, the interest rate of the credit card will be equivalent to the prime rate of the U.S. added on with a 14% margin. Bank of America will not change this fixed rate based on the credit rating or the payment history of the credit card holder.

The rollout of its “simplified” BankAmericard Basic Visa card was announced by Bank of America to be on October of this year. It is the latest product being released by Bank of America in response to the need for banking products offering simpler and more transparent agreements which try to avoid confusing consumers. The release of the card is also preceded by the release of the Bank of America Home Loans “clarity commitment” this April which shows consumers in one single page what they will be paying for their mortgages.

As consumers continue to suffer from the effects of the weak economy, credit card companies are worrying about the ability of credit card holders to keep up with their monthly payments. With delinquency rates and charge offs at their highest nowadays, credit card companies are at a large risk of financial damage. Thus, they are looking for every possible avenue of covering their exposure and returning to profitability. Because of this, credit card companies are now more amenable to offering loan adjustments to their credit card holders.

When a credit card holder becomes delinquent and stays delinquent for a few months, credit card companies begin to worry. Once a credit card holder becomes delinquent, in today’s economic climate, it is only a matter of time before the credit card company has to do a charge off. A charge off is when a credit card company considers a debt as noncollectable. In such a situation, the credit card company basically considers the debt as a loss to them. Obviously, this is far from what credit card companies want.

Credit card companies, their preference for collecting fees and interest rates notwithstanding, would much rather see a debt paid off than have to write it off as a loss. Considering that the average credit card holder nowadays is having a hard time dealing not only with a slowing economy but also with rising unemployment, credit card companies are realizing that it is in their best interest to allow for loan modifications.

Loan modifications can come in a variety of ways. Credit card companies may allow for interest rates to be dropped to lower levels depending on the situations. For instance, a debt earning 14% interest can have that interest rate dropped to 5% depending on what the credit card company and the credit card holder agree on.

Because of the potential of abuse, credit card companies prefer to keep the fact that they are open to loan modifications under the radar. Because of this, a majority of credit card holders are not aware that they could easily settle their debts by speaking to their credit card companies.

Loan modifications are not without risks, however. If a credit card holder agrees to a lowered interest rate and such, this will usually mean that he will have to cancel his card. This will have a large negative impact on the card holder’s credit score. However, given time and responsible spending, he can easily make his credit score go up once again.

Credit card holders who want to find out if they can have their debts modified can simply call their credit card companies and ask if they qualify for a debt adjustment program.

Last month of August, some provisions included in the Credit CARD (Card Accountability, Responsibility and Disclosure) Act went live. The provisions were mainly focused on how credit card companies gave out their bills and on the consumer notices that they are required to provide if they are to change a credit card holder’s credit card agreement. Although these initial provisions are not as hard hitting as most credit card holders would have liked, they do offer a degree of protection to consumers.

The activation of these provisions signals the start of the complete renovation of the credit card industry. Many industry watchers believe that the Credit CARD Act will radically modify the current landscape of the credit card industry. Credit card holders can only hope that many of the changes will be in their favor. The activation of the provisions also bring to mind how well these credit card rules will actually be able to protect the interests of credit card holders.

However, even as credit card holders look forward to a setup of legal provisions aimed at protecting them from credit card debt, a number of industry observers are saying that these legal provisions may not be enough. True, the Credit CARD Act will help in cleaning up the act of credit card companies. However, it is fair to say that a large part of the responsibility for the credit card crisis lies on the credit card holders themselves. Even as provisions are introduced to protect credit card holders, ultimately it is the credit card holders who decide how good or how bad their credit becomes.

A good example is the provision requiring credit card companies to mail credit card bills 21 days before they become due. The former requirement was only 14 days. This gives credit card holders an extra 7 days before their due dates. The benefits are obvious. With 7 more days of leeway to receive their bills and prepare the payments for those bills, credit card holders are more likely to pay their bills on time. However, if the credit card holder does not take the time to check up on his bills, then that 7 day increase would have been for nothing.

A new provision was also activated which would require credit card companies to inform credit card holders 45 days in advance if their interest rates would be increased. Along with the notice would be information as to how a credit card holder can opt out of the deal. This would usually mean that the credit card holder will cancel his credit card and pay off his debts within 5 years. The advance gives the credit card holder to decide to opt out or to shop for a better card. Again, the benefits of this provision depends greatly on whether a credit card holder will act on it and his self-discipline to stay the course.

This semester will be the last time that credit card companies can market their credit cards directly on college campuses. Next semester, they will no longer be able to do so due to the Credit CARD(Card Accountability, Responsibility and Disclosure) Act.

College students have long been one of the most marketed consumer segments for credit card companies. Although mainly composed of subprime borrowers, the spending and payment habits of college students make them very attractive for credit card companies who are looking to make profit on fees and not on bill payments. Regulators have wizened up, however. With the Credit CARD Act, they are looking to curb irresponsible credit card usage, especially among college students who are in grave danger of this practice.

The new regulations in the Credit CARD Act will prevent the marketing of credit cards in college campuses. It has been the practice of credit card companies to run massive marketing gimmicks during the opening of a semester to get college students to sign up for their credit cards. They often use high pressure tactics such as free consumer electronics and other items to students who sign up.

The Credit CARD Act also aims to nip the problem in the bud by limiting the ability of college students themselves to acquire credit cards. Once the legislations in the Act go live on February of next year, college students will not be able to apply for a credit card unless they have a co-signer for their applications or they have proof of their financial capability to pay off their debts.

All of these upcoming legislations mean that credit card companies now have an encircled date after which they will no longer be able to exploit the college credit card market. Many analysts expected credit card companies to go for a mad rush to sign up college students this semester in a bid to win over as much college clients as possible. Others took the opposite view, predicting that credit card companies would hold off on signing up college students to curb subprime borrowing, diminish their risks and cover their profits.

The reality seems to be a mix of both. Some credit card companies are pulling out of the college marketing gimmick while others are still at it. As a result, college campuses are now seeing less credit card marketers this semester. It may be that credit card companies have learned their lesson regarding subprime college borrowers. One can only hope that the new batch of college students starting this semester are just as enlightened as well.

Carrying a credit card is a huge convenience, every American knows this. Testament to this is the large number of American consumers who carry one or more credit cards even amidst the credit card crisis. The convenience of carrying a credit card is offsetted by the financial risks that they carry, however.

The convenience of using credit cards for purchases do not come free. Credit cards often come with fees and interest charges. Some of these are operational charges such as annual fees which credit card holders just cannot avoid. Others are, however, avoidable such as late fees. Late fees are one of the most financially damaging fees a credit card holder can receive from his or her credit card. Fortunately, a credit card holder can easily avoid late fees.

From their name, late fees are charged to the card holder, whenever he or she is late in paying off his or her monthly balance. Usually, a late fee is taken as a percentage from the balance that a card holder has. One of the worst things that credit card holders can do with their credit cards is to miss paying off their credit card balance at the end of the month. Whenever they do this, they incur large late fees, which add up to their balance for every month that they fail to pay their balance completely.

An even worse strategy is to pay only the minimum monthly balance. Doing this, a credit card holder pays only a minimal amount to their balance. The larger part of their payment goes to their fees.

To avoid late fees, credit card holders need to control their spending habits. Often times, credit card holders find themselves unable to pay off their monthly balance simply because their spending exceeded their ability to pay. Another common trap that credit card holders fall into, causing them to pay late fees, is not paying enough attention on their deadlines. It is often a good idea to pay credit card bills several days before their actual deadline. Things like lost mail can mean a delay in payments if credit card holders pay right on the deadline which results in late fees for them.

It may happen that a credit card bill deadline arrives at the time of the month when the credit card holder has the least amount of cash to pay it off. For instance, if the due date of the bill is on the tenth day of the month and the credit card holder’s pay date is on the fifteenth of the month. In a situation like this, the credit card holder has the option of calling up their credit card company to ask for a rearrangement of their due dates. Nowadays, credit card companies are more focused on having their customers pay their bills on time, and they are more open to requests like this.

Consumers nowadays are finding out that credit cards are no longer as appealing as they used to be. Increasing interest rates, more fees and dropping credit are just a few of the things that credit card holders have to contend with these days for the benefit of carrying plastic. Consumers are fast becoming jaded with credit cards, the result of which is most aptly illustrated by the rising popularity of debit cards.

Still, credit cards do fill an important niche among consumers. Although a lot of experts would argue that the ability to pay off purchases through a loan is precisely what makes credit cards such a risky proposition for consumers, it is that very ability that makes credit cards indispensable among some consumers. This is especially true in today’s rocky economic situation.

A good example of this is when a consumer finds himself out of cash and he needs to pay for something immediately. It could be anything from an emergency medical operation to an urgent flight to buying his spouse an anniversary gift at the last minute. During times like these, credit cards can be life savers. However, this does not mean that consumers  should forgo protecting themselves from the high expense of maintaining a credit card.

The best way for consumers to avoid the high cost of credit cards is to find the right card for their needs. There are a lot of credit cards available for consumers out there. Granted that it can be difficult to find an affordable one, given the state of the credit card industry, with some diligence, a determined consumer can still find a good credit card nevertheless.

For credit card holders who are currently carrying a balance, undoubtedly the best credit card to find is one that has the lowest interest rate. This  is also true for credit card holders who find it difficult to pay their balances fully every month. A suggested credit card for this particular consumer segment is the VISA Platinum card of Simmons first National. The card offers a 7.25% variable rate which is one of the cheapest around.

Consumers who have a bit of credit problem may have some difficulty finding a card. Still there are some alternatives out there. One particular alternative is the Citi Forward Card. The rate is at 14.25% but that rate can be lowered for consumers who are able to keep up with their payments. Another suggested credit card is the U.S. Bank Visa Signature which carries a 9.99% variable rate interest. The card carries an annual fee, however.

For those who are just getting into the credit card market, such as college students, secured credit cards come highly recommended. They are also encouraged to opt for the bigger credit card companies such as Citi, Wells Fargo or Bank of America.

The economic crisis has really left the credit card industry hurting. With charge-off rates on the rise and a set of legislations on the way to protect sub prime credit card holders, credit card companies are turning away from what was once a most profitable consumer segment.

Just a few years earlier, credit card companies found a very lucrative segment in sub prime credit card holders. Although, at first glance this does not seem to make sense, the profits that credit card companies actually saw a lot of profits from the way sub prime credit card holders used their credit cards. Sub prime credit card holders are made up mostly of consumers who have limited finances and have a low probability of paying off their debts. The profits that credit card companies saw came not from the balance payments (which were not very likely, in any case) but from the fees and interest charges that the credit card holders would pay every month as they “revolved” their debts each month.

Revolving debts and the fees and interest charges that came with them actually became one of the highest sources of profits for credit card companies for a time and some major credit card companies actually moved to a business model more in line with exploiting this particular source of profits. Unfortunately, this particular profit source was also very vulnerable to economic fluctuations and, when the economic crisis hit, what were once profits turned to liabilities. Sub prime credit card holders faced with crippling financial losses were unable to make even the minimum monthly payments and credit card companies saw a rise in charge off rates. The losses that credit card companies saw almost resulted in bankruptcy, were it not for the financial stimulus that the government handed out.

Now that credit card companies are beginning to recover, they are doing their utmost to cover their risks and avoid the risks of sub prime credit card holders. One of their answers: premium credit cards.

Credit card companies have consistently slowed down their mailing of new-card offers more than a year ago. That pattern seems to be holding for now. However, something new has cropped up. In the recent new-card mailing offers of credit card companies, the number of premium card offers have risen, specifically by 28%. According to Comperemedia, a direct marketing tracking firm, around 118 Mastercard World and Visa Signature card advertisements were mailed were recently mailed out to consumers with excellent credit. That is an impressive increase from the 75 million premium card advertisements mailed during the previous quarter.

Among industry watchers, this is seen as a sign that the credit card markets may be getting better. Credit card companies may also be moving to a more stable credit card market which will hopefully keep away a repeat of what happened during the economic downturn.