The Consumerist recently relayed the story of a college student who, like many Amex cardholders, just got his credit limit cut. Unhappy to take the hit to his credit score, the student tried, without much initial success, to get customer service to reinstate his credit limit.
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Based on a survey of the ten largest banks in the ten largest markets, Bankrate.com found that credit card interest rates continue to climb. Overall, the survey found that the average APR of variable interest rate cards rose from 10.70% to 10.78%. The segment that experienced the highest rate increase was low-interest rate credit cards, which saw average APRs rise to 11.70%, up from 11.62% last week. This hike represents the largest weekly increase in over two months.
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Following similar moves by other banks, Bank of America just announced plans aimed at boosting its bottom line, in part by raising interest rates on many of its balance carrying customers. According to the WSJ, any B of A credit card holder who carries a balance currently below 10% will see their rate jump to double digits beginning with their June statements. The exact number of affected customers is not being released, but estimates range as high as four million of Bank of America’s 70 million credit card customers.
Consumers do have the option of notifying Bank of America, opting out of the change, and keeping their current interest rate, but that requires making no new purchases on their card. Any new charges would cause the new, higher rate to apply to the entire balance.
American Express is offering a service called “My Credit Score & Report” that gives customers a free Experian credit report and score when they enroll. You’ll have 30 days to access your report and score, at which time your membership will automatically lapse without having to cancel.
This offer is available online at americanexpress.com/creditreport (Via FW)
PenFed is now offering a 2.99% balance transfer offer for life on its Visa Platinum Rewards card.
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American Express consumer charge cards can now earn double Membership Rewards points on gas and groceries (up to $1,000 each month) until March 15th, 2010. Cardmembers can either register online at www.americanexpress.com/counttwice or by calling 1-800-794-1308 and entering promo code 139150001. You must have enrolled in this promo prior to making purchases in order to earn the bonus.
Via FT:
For stays through April 25, 2009, eligible American Express Platinum and Centurion cardholders can receive up to two free nights at either the Encore or Wynn Resort in Las Vegas. There is no minimum stay requirement. All FHR amenities, such as room upgrades, food vouchers, etc. do apply, but tax and fees are not included. There are a number of blackout dates, but weekends are available.
To book this offer, call Platinum Travel Services at 1-800-443-7672 and tell them you heard about this promo.
Today Citi announced a new credit card created in partnership with MySpace, called the Citi Forward. It features a few incentives to consumers for managing their credit wisely, including lowering the purchase interest rate by 0.25% when cardmembers make a purchase, stay under their credit line and pay on time 3 months in a row. In addition, you’ll earn 100 ThankYou Points each billing period for paying on time and staying under the credit line.
Citi customers with a Citi mtvU Visa will also note the Citi Forward’s uncanny resemblance. Similar to the mtvU card, the Forward earns 5 ThankYou Points for every $1 spent on restaurants, books, music and movies. More importantly, the Citi Forward does not require that you be a student in order to apply.
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So this is what we have come to. Facing increasing delinquencies and decreasing customer spending, American Express is now offering a $300 incentive to a “relatively small” number of its credit card holders to close their accounts.
The “Simplify Your Finances” program offers a $300 American Express gift card to solicited customers who close their account and pay off their entire balance by April 30. Enrolling in the deal automatically cancels the customer’s account, regardless of whether the borrower successfully pays off the balance.
Only customers who receive a mailing with a registration code are eligible for this offer, which must be accepted by the end of this week.
Some sweeping changes are coming to your Discover Card, and unfortunately, most of them are not good. Effective for billing periods after May 1, 2009, a number of changes to its cash back program will be made:
Additionally, there are some changes to the terms for those who do not pay in full. Thanks to reader Robert for alerting us to these changes.