Tag Archives: Credit Cards

Link of the Day: The Death of the Credit Card Economy

The days of easy credit appear to be coming to an end.  Credit card companies have been decreasing credit limits for consumers over the past six months.  As a result, some people are finding it harder to buy things when they are forced to pay immediately.

While easy credit is coming to an end for some people, card companies are continuing to mail pre-approved credit offers to those with a solid credit history.  Remember, one can opt out of these pre-approved mailings.

Matt / Google+

Credit Card Rage

You might want to think twice about carrying a credit card balance. Credit card companies have long been accused of deceptive practices, but they are getting more aggressive with the recent credit turmoil. Today’s link of the day from BusinessWeek tells the story of David Giantomasi, who paid his credit card bill every month without missing a payment. Recently, the interest rate on his account with Chase increased from 7.99% to 19.99% without there even being a late payment. This shows that while it cannot always be avoided, carrying a credit card balance can have unforeseen consequences.

Matt / Google+

Link of the Day: The Outrage in Your Credit Card’s Fine Print

Credit cards are a convenient way to purchase items and offer many protections to the consumers that use them. Important to note that they also carry with them some disadvantages. It is no secret that credit card companies make money from late fees and overdraft fees. However, it might be surprising to some that nearly half of all credit card company revenues come from penalty fees. You should be cognizant of this fact when it comes to managing bills in order to ensure that you are not one of those having to pay penalty fees on your credit card.

Check out today’s link of the day from the Christian Science Monitor.

Matt / Google+

Credit Score “Piggybacking” Has Returned

Additional authorized users can benefit again

The phenomenon known as authorized user piggybacking has returned. If you are unfamiliar with the term, it is when a person with a good credit score allows a person with either no credit or bad credit to be an authorized user on his credit card. The authorized users with little or bad credit receive the benefit of the main account holder’s high credit score. The Fair Issac Corporation had stopped using this methodology as a component of its FICO credit scores back in 2006 after discovering many abuses to the system.

Head on over to creditcards.com to read more.

Matt / Google+