According to the Wall Street Journal, Chase will be rolling out a new points-based rewards program called “Ultimate Rewards” today. Here’s a snippet of the article:

Under the points-based program, dubbed Ultimate Rewards, customers will earn points for every dollar spent on certain Chase credit cards, with no earnings caps or expiration dates. Points can be redeemed for travel, cash, statement credits or gift cards, generally on a one-for-one basis with each point worth one penny. Users can also redeem points for merchandise, although the redemption rate is slightly less than one percent.

They further state that:

For Chase, the move is also a way to replace older versions of its Freedom card, some of which had offered richer cash-back rewards and bonus opportunities. Throughout the year, all Chase Freedom cardholders will be moved to the rewards program, where they will earn 1% cash back (or one point) for every dollar spent and 3% cash back (or three points) for every dollar spent in categories that change each quarter. Chase had already moved to those terms for new customers last November.

Apparently you’ll be able to opt for 3% rewards on gas, groceries, and fast food (instead of the rotating categories), but you’ll have to pay a $30 annual fee for the privilege. If you’re in the market for a reward credit card don’t like the sound of this, I encourage you to check out the new Citi Forward card.

This is just a quick note to let you know that the Senate passed their own version to Credit Card Holders’ Bill of Rights by a 90-5 margin. As soon as the House and Senate settle their differences, the bill will be sent on for the President’s signature.

Full details from FCN: Credit Card Reform: The CARD Act of 2009

A reader named Kathryn wrote in to share the following bit of bad news:

We’ve had a great run with our Chase Freedom credit card, but this week we received a letter stating that “The triple cash-back rewards you earn on Everyday spending categories will no longer be available. However, there will be opportunities to earn 3% cash back in new spending categories throughout the year.” Details are apparently coming soon. Also, the $50 bonus on the $200 check is also no longer available.

Great. First the Amex Blue Cash card, now this…

I have yet to look at our statement, but I would imagine that we have a similar message waiting for us. It sounds like they will be offering rotating “bonus” rewards categories much like the Discover More card, except that Discover offers 5% vs. 3% on their select categories.

Obviously, this makes their rewards program significantly less attractive. In fact, this move will likely prompt us to switch to the Citi Forward card, which offers a tasty signup bonus plus 5% rewards on a number of things — including purchases at restaurants and Amazon!

Update: I just cashed in $200 worth of rewards for a $250 check, so the $50 bonus is still available, at least for now. If you’re sitting on a bunch of rewards, now might be a good time to cash them in.

In case you haven’t heard, the House of Representatives overwhelmingly passed a new piece of credit card legislation last week. Dubbed the Credit Card Holders’ Bill of Rights, this bill would require card issuers to give cardholders 45 days notice of rate increases, prevent retroactive rate increases, and forbid other “unfair practices.” It’s now up to the Senate to move this bill forward, though Senate Majority Leader Harry Reid has been quoted as saying that it’s unclear whether or not the bill will achieve a filibuster-proof 60 votes.

As a sidenote, many of the proposed regulations overlap with new rules put forth by the Federal Reserve. Unfortunately, the Fed’s rules won’t kick in until July 2010, whereas the new legislation could be in place within a few months.

If you’re in the market for a 0% balance transfer, you might want to check out State Farm Bank. Their “Good Neighbor” card currently comes with a no-fee, 0% balance transfer offer that’s good for up to 9 months. Simply open an account and execute the transfer within the first 90 days of card membership.

This is remarkable. According to an article in the Chicago Tribune from earlier this year, a single family received 445 credit card offers, including 35 that were addressed to his kids, ages 8 and 11. The offers weighed in at a total of 23 pounds, and included pitches for 0% balance transfers, free airline miles, etc.

So… In case you still needed to be convinced, this is a great example of why you should opt out of credit card offers. If nothing else, just think about how much waste you’d be saving.

Source: Chicago Tribune

I just received an e-mail from a reader named Matthew who reports that American Express is re-working their cash back percentages on the AmEx Blue Cash rewards credit card. As you might recall, this card previously offered 5% cash back rewards on “Everyday” purchases (gas stations, grocery stores, and pharmacies) and 1.5% cash back on all other purchases once you reach $6500 in spending for the year*.

Well, according to Matthew…

The non-5% rewards will be dropping to 1.25% instead of 1.5% after $6500 in annual spending. In addition, purchases over $400 at gas stations (how would you get that high? I guess if you’re a trucker…) will no longer be classified as “Everyday” purchases. The last major rewards change was that it now specifically states the purchases must be made for personal consumption.

This information was apparently sent out with April card statements. I’ve since checked the application page for this card, and it seems that Matthew’s information is correct. The lower reward level after you reach $6500 in spending will indeed be 1.25%, and mega-purchases at gas stations (the $400 limit appears to be per transaction) will no longer qualify for 5% cash back.

While this might not strike you as a huge change, the drop from 1.5% to 1.25% represents a 17% decrease. Thus, while it’s still a good card, it’s not quite as good as it used to be.

*Note: Prior to hitting the $6500 spending level, this card pays 1% rewards on “Everyday” purchases and 0.5% rewards on everything else.

One of the most annoying things about credit limits is that most card issuers treat them as “soft” limits. They’ll actually let you exceed the limit, and then levy a penalty fee for the privilege of doing so. The good news is that Chase (and possibly others) offer an out.

According to an article that I just ran across, all you have to do is call them up and ask for an “over-the-limit block.” This block will work for all Chase cards except their Signature cards, which have no preset spending limit, and thus aren’t subject to these sorts of fees.

Something to watch out for is that these blocks don’t work on all purchases. For example, if a gas pump initially authorizes your card for a certain dollar amount and then you wind up purchasing more, you might end up exceeding your limit.

Check it out. While you might appreciate the courtesy of being allowed to exceed your limit, it comes at a price. If you want to protect yourself against these sorts of fees, all you need to do is call the number on the back of your card and ask.

If you’re aware any other issuers that do the same, please let me know.

Via: CreditMattersBlog.com

This is interesting… Apparently the IRS has changed their stance, and the fees associated with paying your taxes with a credit card are now deductible. Details are available from the always excellent Fairmark.com.

Most everyone knows that it’s important to check your credit report on a regular basis. But how do you fix a credit report error if you find one? Dispute it, of course.

Here is the contact info for the three major credit reporting bureaus, including the mailing address, phone number, and a link to their online credit report dispute form:

Equifax Contact Info

Equifax Information Services, LLC
P.O. Box 740256
Atlanta,GA 30374

Phone: (800) 685-1111
Online dispute form: link

Experian Contact Info

Experian
P.O. Box 2104
Allen, TX 75013-0949

Phone: (888) 397-3742
Online dispute form: link

TransUnion Contact Info

TransUnion Corp.
P.O. Box 2000
Springfield, PA 19022-2000

Phone: (800) 888-4213
Online dispute form: link