According to a recent report from prominent banking analyst Meredith Whitney, the U.S. credit card industry is poised to cut $2 trillion worth of credit lines over the next 18 months due to risk aversion and regulatory changes. This represents a 45% decrease in consumer credit lines, which could have a dramatic impact on consumer [...]
According to a comment from a reader named ‘Karmazoic‘, the Citi credit card rate change only affects new purchases, and not your current balance. As such, it sounds like promo rates on existing balances should be safe. If you have any questions, be sure to call them and get an answer straight from the horse’s [...]
A reader named Brad recently wrote in to share his experiences with card issuers closing dormant accounts. Here’s what he had to say:
My wife and I have transferred balances from one 0% offer to another for years. We have 13 bank credit cards open and over $200,000 in open credit lines. We have been successful [...]
It looks like Citi isn’t the only credit card issuer raising their rates… American Express enclosed a letter in our latest bill detailing a bunch of changes to their Cardmember Agreement. While I’ve reproduced the entire letter below, here’s a quick summary:
Cash advance APR is increasing to Prime + 17.99%
Late payment APR is increasing to [...]
This afternoon we received a “Notice of Change in Terms and Right to Opt Out from Citibank” in the mail. We’ve known that Citi would be increasing rates for a couple of weeks now, but we now have details straight from the horse’s mouth. All I can say is that… I sure am glad that [...]
Guess what? Citi isn’t just raising their credit card interest rates. They’re also cashing in on a substantial bailout. For those that are curious, I just ran across an interesting article that answers some questions about the bailout. Here’s a synopsis…
1. What is Citi getting?
Specifically, the government will back a $306 billion pool of troubled [...]
Here’s something to look forward to… In an attempt to offset losses in their global credit card division, Citi is raising interest rates for millions of customers. Interestingly, this move runs contrary to a promise that they made back in 2007 to Congress when they said they’d stop arbitrarily increase rates.
You should receive the notification [...]
Apparently QVC’s credit card division has been hit by an uptick in credit card defaults resulting in a bit of corporate downsizing…
In late October, Liberty Media said third-quarter profits dropped at its QVC home-shopping unit as the credit crunch slowed consumer spending and more customers missed payments on QVC-issued credit cards.
Some 27 percent of QVC [...]
American Express (AXP) sure is having a rough time. It’s so bad, in fact, that they’ve decided to re-organize such that they can qualify for help under the economic bailout plan. Under their former business model, they packaged credit card debt into bonds which were then sold to institutions seeking income-generating investments.
This structure has helped [...]
This news is a bit old, but I still thought it was interesting… Back in June when John McCain and his wife released their financial records, they revealed that they have a good bit of credit card debt.
In fact, McCain and his wife had $10k-$15k in joint debt, and his wife also had a second [...]
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