Inland Utopia » credit cards

Credit Cards

mmunson — Fri, 29 Apr 2011 20:05:57 +0000

It seems like my blog is turning into Money Talk, but at least I am keeping the conversation flowing.

Due to the economic downturn and credit card reform, banks decided to raise rates. My American Express Blue card went to 15.24, but I politely asked to see if they could lower it. However the only way they budged was to 14.24 APR. American Express Blue is nice because I could use it at Costco, but I might just end up get myself to 10,000 points then cash out and not bother using it for a long while.

Bank of America Visa Signature card is my best card out of the bunch, even though I do not like them for their checking account services. The APR is at the best tier at 10.24, but the rewards program is disappointing. I feel like I will most likely just do Add it Up, where I buy from an affiliate link and I get a small amount deposited back to pay down my balance. This card is the oldest in my credit history and even if BOA is making the terms of the card strict, I’ll keep it since its almost a 10 year plus credit card.

Only positive about the Signature card is that Visa’s own promotions dealing with the card is quite nice at times, but the free shipping with Barnes and Noble purchases is no longer there. However if I am still a college student I will get Amazon prime for awhile.

I know it is taboo to get credit cards up the wazoo, but I try not to carry a balance higher than 20% of the limit of the credit card or have the card paid off entirely would be preferred. With the eminent switch to Wells Fargo, if I do consider overdraft protection I would need to choose one of their credit cards, but honestly I have been quite prudent about making sure there is money in my bank accounts so having a credit card of theirs for balance protection would be a bad idea.

Good thing is rewards are easier to obtain with Wells Fargo, but they are not as easier to obtain like HSBC and not as stingy as Bank of America.

Lastly, HSBC is the other credit card provider I have utilized. The HSBC Plus Platinum card used to have an APR of 16.99 then got boosted to 19.99, where I stopped using it for a year due to its high rate. Then HSBC ended up lowering my rate to 15.99 where now I am a mid-tier customer.

Too many credit cards ends up becoming a confusing hot mess, but ending a relationship with a particular credit card can be a dangerous affair too. For credit you need to use credit to get credit. However we all need to play responsibly.

Speak Out Against the Durbin Interchange Amendment

mmunson — Thu, 20 May 2010 19:59:42 +0000

I understand that the Senate has recently passed an amendment to the
financial reform bill that will have a significant impact on how I use my
debit card. I do not support this legislation, and I would like to
explain why.
I do not believe the federal government should decide how much it should
cost for stores to accept debit cards, especially if it will force banks
to raise the rates on these cards for customers like myself. I also
disagree with the amendment because it will give retailers the ability to
set minimum and maximum payment amounts, and to discriminate between
cards, charging more for one than another. I don’t want to be forced to
carry cash, just to avoid being stranded at the register if I can’t use my
card. I don’t want to have to carry several cards, just to avoid paying
more to use one versus another.
Please consider the unintended consequences that this legislation will
have on your constituents, and speak out against this amendment becoming
law before it is too late. Thank you for considering my views.

Write to your local congress member and senators today!

Make sure retailers treat all cards fairly, for example a local clothing store with their own credit card may say there is no minimums for using their card, but might require a $100 minimum for using American Express if the Durbin Interchange Amendment gets passed.

Visit their website and communicate to your local elected officials.

Credit Card Reform Amendment Must Pass

mmunson — Tue, 27 Oct 2009 17:47:11 +0000

Americans must begin to borrow and spend responsibly. If the banks tighten the credit
requirements the recovery of our economy will not begin soon. From Playstations to Ford
cars we need the money to keep on flowing through so we can improve consumer confidence.

Customers who have been responsible in managing their credit should not been abused by
their banks. Interest rates have gone from 10 percent to 15, or even to 21 or 29 percent
because they are looking at their best customers as easy money, but with higher interest
rates to pay the banks are providing a tighter noose leading their customers to financial
ruin.

I would like to encourage my Congressman Joe Baca (D-San Bernardino) to bring forth the
House version of S. 1927 by Senator Dodd of Connecticut. The insanity of increasing credit
card rates en masse before the deadline must end.

F**k You American Express

mmunson — Thu, 13 Aug 2009 19:32:44 +0000

They are going to raise my interest rate 5 percent to 15.24%. I have not had a late payment. I generate around $72 in interest to them. I think the new credit card regulations made the banking industry pissed off. I am not able to close my account to keep the current APR, which I think highly of the Discover card when they offered this for my father. I am unfortunately going to balance transfer this balance off because it will cost me more money in the long run.

Sadly its a case of good intentions gone awry. The credit card reform act needs to be patched to mandate that customers could close their accounts and keep their current rate to pay off their cards. I am not going to spend a new dime on charges to make my balance high for them.

I found out more on this issue from another website. Damn AMEX, you take taxpayer money and then f**k your customer with it.

From Creditcards.com
American Express was the only major credit card issuer that did not previously offer customers opt out options when rates were hiked. Come Aug. 20, that will change. AmEx is sliping some interest rate hikes in just in time to beat the Aug. 20 start-up of mandatory consumer opt out rights. CreditCards.com was contacted by several readers complaining that they had received notices of AmEx rate hikes that take effect Oct. 1, 2009, but that did not offer a chance to opt out. The readers questioned whether this was legal given the Aug. 20 effective date of the Credit CARD Act.

According to the Fed, issuers that provide notices of interest rate hikes and other changes BEFORE Aug. 20 do not have to offer the right to opt out — regardless of when the rate hikes actually take effect. Any notices provided AFTER Aug. 20 must include information about opting out.

More here.