When it comes to major changes that consumers have seen in recent months, there is no doubt that cardholders have seen plenty. While some changes have been publicized more than others, each has affected the view that many people perceive when it comes to credit cards. One of the changes that seem to be a growing trend among credit card issuers is the annual fee and by the looks of it; we may see annual fees continue to find their way into American’s pocketbooks.

According to research both the implementation and increase of annual fees will continue to be something that cardholders will need to be on the lookout for as we move further into 2010. This is because in 2009 researchers found around a third (36%) of all credit card mailings sent to potential cardholders had annual fees associated with them. Compared to 2008, this is a dramatic increase as annual fees in mailings were reported to only be around twenty percent.

So will annual fees become the norm when getting issued a credit card? While it is too early to tell, annual fees will defiantly be something that will more than likely be associated with cards that have any type of extra features associated with it. Card issuers have already stated that without annual fees; features such as rewards would be difficult to offer cardholders.

When it comes to default rates, there is no argument that issuers have it bad even as recent reports have shown that they may be stabilizing. For some it is worse than others, and it now seems that those whom are getting hit the hardest are none other than retailers. While they have not been as publicized as many of the major issuers in the country; retailers have seen defaults on their credit cards rise much higher their well known counterparts.

So why are retailer credit cards seeing a higher default rate than others? According to an article entitled, "Defaults on Retail Credit Cards Soar" retail credit cards are generally perceived by consumers as a very low priority when it comes to making payments. This is because for the most part, consumers generally sign up because they may regularly shop at that location or because they may have received an incentive for doing so. Instead of falling behind on payments on something that they may use more often, they would rather keep those accounts in good standing and fall behind on accounts with retailers.

For the retailers themselves, high defaults are something that could show the reality of where future sales may lie. Like banks they may have to start being more selective on the consumers whom may be able to receive the card, or at worse they will have to give shoppers discounts at a much later time for being current on payments instead of at the register when an account is first opened.

With the CARD Act implementation date looming, many changes will be set on the way issuers are able to do things. Under the new law, those that are under the age of 21 will soon be required to have a co-signer, pass a financial literacy course, or show that they have the ability to re-pay amounts that are borrowed. While many students will be able to get a traditional credit card there will still be others that will not. For those that cannot, it look like an alternative will be needed and such an alternatives may be in the form of either a secured credit card or that of prepaid.

As the type of plastic students would probably migrate toward most, secured credit cards have been labeled as the best alternative. These types of cards for the most part are like any other traditional student credit card with the only difference being that a security deposit must first be put into an account. While these cards may not have the same great features of other cards; they do help build credit history, which above all is considered the most important aspect.

The other option that an increasingly growing number of students seem to enjoy comes in the form of a prepaid card. While it may not have been even considered an option in the past; a growing number of students and parents have now started to utilize it because of their opinions on debt. Not only that but in many cases prepaid cards, now offers some of the features that we see with credit cards. Great examples of this are things such as rewards, which include things such as discounts on purchases, cash back, and more. For students this could be something that is important as they try not to worry too much on their finances and more on their grades.

Not too long ago the word was out from researchers and experts that consumers could probably look forward to seeing less solicitation mail when it comes to credit card issuers. It now seems that tune has changed according to direct mailing intelligence company, Mintel Comperemedia, which says that their data shows that in the last quarter of 2009 mail from your issuer rose for the first time in three years.

So how large of an increase did we see, and what does it mean? Well while the increase is nowhere near what we saw before the economic downturn began; compared to the third quarter of 2009 the increase was around 47 percent. While it may not seem to be significant for some, for researchers it may be a sign that economy is stabilizing and that the issuers are now ready to start issuing cards again.

For many, especially the credit card industry, direct mail is something that is heavily relied upon and in most cases is considered to have the highest ROI due to the ability to target consumers. If mailings continue to rise, it could very well mean that things are changing for the better in the sense that issuers may be ready to acquire more cardholders, and for some this is defiantly something that they want to hear.

With a growing number of consumers wanting to have credit cards to fit their lifestyle, it now looks as if Capital One will not be the only issuer that will give cardholders the ability to design their own plastic. Discover recently introduced "CardBuilder", which is an online tool that gives applicants the ability to select certain terms, rewards preferences, and card design. While it does not have all the same options that Capital One does, it should still draw the attention of those looking for customizable plastic.

So what is the process of signing up for a Discover credit card designed specifically for you? Although I have not signed up myself, it is stated that cardholders begin by giving a little bit of information such as credit standing and how the applicant plans on managing their balances. Next, consumers then have the ability to choose from the rewards that they think they will utilize most. Rewards as of now include cashback, airline miles, and even getting interest back for paying on time. Lastly, consumers have the choice of choosing a card design of the twenty eight that are available.

While designing the card is a big deal for many, one thing that many potential cardholders will be looking at more than anything is the interest rates that are associated with the plastic. As long as the interest rates are reasonable it could seem that CardBuilder will now give Discover cardholders a feeling of have a credit card designed specifically for them that they will feel comfortable in using to make purchases.

When it comes to the many changes that have taken place concerning credit cards, consumers are not the only ones getting hit hard. Just like the millions of consumers, merchants have seen dramatic changes as well. The difference, while cardholders are being charged more to use their plastic; retailers and merchants as a whole are being charged more to accept them.

Each time consumers use their credit cards, merchants must pay a portion of the purchases’ total to not only the merchant’s bank and the cardholder’s bank, but they must also pay the network that processes those transactions. While in past these have been a relatively small percent, these percentages have risen each year and now merchants are paying more then they think is justified. When it comes to numbers, merchants are seeing up to 2.95% of their totals being taken by fees while MasterCard takes up to 3.25%. Both of which are much higher than the percentages from a couple of years back.

In the long run while consumer do have it bad when it comes to new fees by credit card issuers, merchants are having an even tougher time deciding on whether it is really worth it to pass any fees over to the cardholder. On one side, they could continue to lose a little bit of revenue by not charging consumers more, but on the other they could lose the consumer altogether by raising the prices on goods that many people already perceive as high.

When it comes to the relief efforts in Haiti is looks like Citibank wants to do a little more than just pledge thousand of dollars, but they need your help.

If you’re a Citibank cardholder you can now help the Haiti relief effort by using your Citi credit card to make purchases that accrue reward points. With these reward points, cardholders are now able to give cash through the Citi’s reward program known as the "ThankYou Network". Starting at just 5000 points, donations are given in denominations of $50 and $100 to the American Red Cross International Response Fund.

If you would like to give donations using your reward points you can go to Thankyou.com or by calling (800) THANKYOU, or (800) 842-6596.

Do you find yourself using credit cards more than cash? If so don’t fret, millions of Americans have turned to plastic to make payments even if they have cash with them. For several cardholders, credit cards have officially taken over many of the instances cash would have been used. While in some cases this is intentional, in other cases consumers may not have any other choice.

While carrying and using a credit card is something that seems second nature to us, many cardholders have found themselves in trouble because of rising interest rates. Credit cards have become more expensive than ever before, which happens to be during the same time more people use and rely on them. For this reason many people are looking to use their credit cards wisely.

When it comes to smart moves experts say more focus needs to be placed on items to determine if it is better suited for cash or credit cards. While plastic deserves many of the larger purchases, cardholders need to steer away from using their cards on many everyday items. A good example of this is consumable goods. When it comes to purchasing everyday items such as groceries and gasoline, you may do better with paying for it with cash. With items like these you could stilling be paying for these goods long after they have been used, if your balance is not paid off at the end of the month for whatever reason.

As many people have decided to only use one or two credit cards, one of the main questions asked is, "Should I cancel the cards that go unused?" While the answer is different for everyone, knowing whether or not to cancel a card should not be a difficult choice once you know how the account closure will affect for credit scores.

So what is affected most when it comes to an account closure and your credit score? For the most part canceling your card alters your utilization ratio (balance-to-limit ratio). When this happens it looks as though your borrowing much more when it comes to your credit limit, which could affect your score more than any other changes. In addition to your balance-to-limit ratio, if you are closing your longest standing account your payment history would essentially be shortened. While this may not effect your as much as the utilization ratio your score has a very high likely of falling a few points.

If you do decide to cancel any accounts, there are a couple of things that could help ensure that your credit score doesn’t take as hard of a hit. They include:
 

• Spreading out closures over time
• Keeping your oldest account open
• Keeping the cards with highest credit limits
   

When it comes to keeping cards that are going unused one of the major concerns that cardholders could see in the future is a fee for not using the card. While there is currently only one major issuer utilizing the fee at the moment, an inactivity fee for not using cards within a specific time frame is something to think about. Discussed a little more in a previous post entitled, "Credit Card Inactivity Fee…..Lost But Not Forgotten", many experts see the possibility of this fee being used by other issuers relatively soon.

As millions of people look to change the way they use their credit cards, traditional plastic is something that many are now starting to move away from. While in the past carrying a balance each month was something many cardholders were willing to do, rising interest rates have caused many to reconsider. Instead many are looking at charge cards as they offer many of the same great benefits of traditional cards, only without the high interest rates seen on many other pieces of plastic.

In recent months we have seen two major moves from issuers hoping to benefit from the potential growth of charge cards. Late last year both American Express and Chase introduced cards that specifically focused on niche markets. American Express created the Zync, which is geared to young adults while Chase created "Ink" which is a business line of cards. While we have not heard much buzz from other issuers it would not be surprising to see someone else enter the market as it starts to grow.

While charge cards may not be for everyone, many people have turned to these instead of traditional cards. For more information of the difference of charge cards and credit cards check out an article on Bankrate.com entitled, "Is a Charge Card Same as a Credit Card?". Not only will you find great information on if these cards are right for you, but also some details on some effects they have your credit score.

So are you thinking about getting a charge card? I would love to hear your opinion on charge cards and if you think it is right for you.