My Thoughts on the State of Credit Cards

My Thoughts on the State of Credit Cards

As Research Director for IndexCreditCards.com, I regularly talk to reporters from various publications about credit cards. I talked to a reporter this week who wanted to pick my brain about any trends I see happening in the industry. Based on past experiences, our 20-minute conversation will lead to maybe one short quote from me and/or mention of the site. That's completely understandable, but since I took the time to jot down some notes for my conversation with said reporter, I thought I'd share with you what I told her. So, here are my thoughts on where we are and where we're going with credit cards... Rates Since July or so, the Federal Reserve has stopped raising interest rates, and I think this will be the case throughout the first half of 2007. So the average credit card rate that we estimate to be just over 14 percent should stay right around there for the near future.

---

Oro chamber welcomes removal of surcharges on credit cards

Oro chamber welcomes removal of surcharges on credit cards

THE Cagayan de Oro Chamber of Commerce and Industry Foundation Inc. welcomes the Department of Trade and Industry (DTI) order banning additional charges on credit card purchases, declared Oro chamber president Ruben A. Vegafria.

Beginning November 05, 2006, it is illegal for shop owners to place a surcharge, extra charge, or additional charge over and above the price tag on goods and services purchased with a credit card.

.

---

DTI bans surcharges on transactions using credit cards

DTI bans surcharges on transactions using credit cards

THE Department of Trade and Industry has ordered a ban on surcharges on retail transactions using credit cards, debit cards and automated teller machine cards, starting November 5.

Trade Secretary Peter B. Favila said the new policy was part of a campaign to protect consumers from unfair trade practices. He said Department Administrative Order No. 10 Series of 2006 would give more teeth to Republic Act 7394, or the Consumer Act.

DAO 10 prohibits any surcharge, extra charge or additional charge over and above the price tag on items purchased using cards for payment. "A number of retailers have been charging differently on specific items depending on the client's mode of payment," Favila said.

"Usually, purchases using credit card are priced higher than those paid with cash, and this discriminates against the cardholders," he said.

---

The Christmas Temptation - Department Store Credit Cards

The Christmas Temptation - Department Store Credit Cards Roy Thomsitt is an English writer and internet entrepeneur now living on an idyllic tropical island in the Philippines, with his wife Mary Ann and 2 year old daughter Saffron. A former finance professional and project manager, with a small business in the advertising industry before he left England in 2000, Roy was a keen fiction writer in his younger days, late teens and 20's. author's email author's web site view author's other articles .

Mailbag: Closing out cards

Mailbag: Closing out cards It's time to answer some reader questions. Today's topics include how to close a credit card account, redeem a savings bond, make a charitable contribution from an IRA and get in-state tuition at California universities. I'll also revisit the old issue: Roth IRA or 401(k) plan. Q: Martin B., writing on behalf of a group of Sebastopol seniors, asks, "When credit card accounts are no longer needed we had assumed that cutting the card and sending it back to the issuer was the correct action to take. We have heard, however, that closing accounts actually negatively impacts one's credit rating! We would greatly appreciate any information you might have (or where to find information) regarding this matter." A: Craig Watts, a spokesman for Fair Isaac, inventor of the FICO credit score, says, "Cutting up or closing credit cards won't help your score and in some situations it might lower your score, though not by a lot." One of many things that goes into a credit score is credit utilization, which is your outstanding debt divided by your credit limit.