When it comes to using your credit card there is no doubt that it is more expensive now than any other time in the past. For majority of cardholders the bulk of the increased cost is from extremely high interest rates, for others it is costing even more as new fees are constantly being added or current fees are being raised. While at the moment only interest rates are being regulated (thanks to the CARD Act); if a newly introduced proposal is accepted, some of the current fees that consumers are paying may be capped or removed altogether.

When looking at the new proposed rules, if accepted it would go into effect on the last phase of the CARD Act, which takes effect in August. Under this proposal, credit card issuers would have their fees for such things as over-limit fees and late fees be set at an amount that is more realistic to the consumer. At most, the fee would not be any higher than the value of the violation, meaning it could not be any higher than the amount that was paid late or charged over.

Other concern that would be addressed by this proposal would be the charging of an "inactivity fee", which has been a hot topic for many weeks now. While there are not many major issuers currently utilizing the fee, it has been one that experts and media alike have put under the microscope as the next major feature issuers would adopt.

As the growing number of people experiencing some sort of credit card fraud and identity theft grows drastically year after year, many people have wondered what factors can determine the likelyhood of who will be next. While there is no exact answer, studies have been conducted and one of the most recent has important information on what things may factor into whether you are may be targeted.

According to an article entitled "New Study Profiles Credit Card Fraud Victims" Experian has released a report that could surprise a lot of cardholder that believe they would never be affected by these types of thefts. Within the report it is stated that those that seem to be targeted most either live within an affluent/upscale suburban neighborhood or metropolitan area, as well as hold some sort of college degree. While the article seems to describe this type of theft as one of opportunity, one can only imagine that in most cases these thefts probably target certain individuals whom thieves can get the most out of by doing the least amount of work.

When it comes to protecting yourself from identity theft or credit card fraud,  in may cases simple steps can help ensure your don’t become a victim. They include the following:
 

• Protecting all of your paper documents
• Keeping computer security software up-to-date
• Keeping all of your personal information private
• Monitoring the security of websites
• Monitoring any and all account activity
   

If you suspect you may be a victim, contact your issuer or loan provider immediately. In many cases, when it is caught earlier it can be resolved with little or no long term damage or stress.

When it comes to your money, the Federal Reserve is doing more than just informing credit cardholders of the beneficial information that they need to know concerning the implementation of the Credit CARD Act. They are also letting debit cardholders know about the new rules taking place later this year concerning the next biggest issue currently effecting millions of people, which is overdraft fees.

On getting the word out about the changes that consumers will be seeing, the Federal Reserve Board is once again utilizing the web. On the Federal Reserve Boards site, cardholders can now go and view what the Fed believes you need to know about the new overdraft rules for ATM and debit cards. Once there you will find a great overview of the changes, and the basic facts of every account.  Not only that, they break down the new rules in an easy to understand way that covers the following points:
 

• Your ability to choose
• Accounts effected
• The flexibility you receive
• What is and is not covered
   

One of the great things about this site is that they actually give you an example of what you should be receiving from your financial institution. This allows consumers to become familiar and understand documentation well before actually receiving any letters from the bank. In all, this site is very good in helping cardholders know what to expect when the rules take effect on August 15th.

In a world where a growing number of people are looking for more convenience, products that focus on personal finance seem to get more interest then most. So when a company known as TSYS (Total Systems Services, Inc.) decided to announce a solution that gives cardholders the ability to pay from multiple bank accounts all from one card, many in the financial industry are paying attention.

TSYS has introduced a "hybrid" card that allows consumers to choose how they want to pay for products and services with their plastic. While it sounds similar to a debit card from your financial institution or one that is decoupled, this card is much different. Consumers using the card can choose whether the transaction will be directed to a traditional credit card (revolving credit line) or to a debit card from multiple bank accounts if the consumer has more than one. In turn the days of carrying more than one card could soon be behind us if this plastic takes hold with financial institutions.

When it comes to the opinions of a hybrid type of payment card, while it sound great for consumers, there are a few that probably hope this new product doesn’t grow in popularity. This is because experts have predicted that there are some that would not benefit from consumers using this product. For those that could have the potential to lose the most, many say that it will be major issuers of traditional debit cards. Retailers would also be expected to lose out by the switch as they incur higher cost when a credit card is used instead of a debit card, and with a hybrid card the chances of using a credit card are increased dramatically.

With the long wait of the main phase of the Credit CARD Act almost at an end, many people have probably came to wonder how the new law will effect them in a positive way. While no one knows for sure, many researchers have performed studies to try to find the answer.

Now one researcher is giving an answer that many (if not all) will hope is accurate. According to a recent article from Pewtrusts.org entitled "Pew Finds Credit CARD Act Will Save Consumers Billions", researchers are estimating saving up to $10 billion a year based on fees alone. This is because when the second phase is implemented, credit card issuers will be forced to make major changes across the board and will no longer be able to charge excessive penalties for many of the things they had in the past. Instead they will have to give exact reasoning for increases on things such as certain fees, and give the consumer ample time to make payments.

After reading the article, when it comes to the estimated savings concerning the fees the news is beyond great if it is correct, but in my opinion the question of real savings focuses more on interest rates. Since the bill was first created, cardholders have been hit hard in several different ways that have all ended with the consumer paying more. Even with the requirement that credit card issuer have of lowering the interest rate for consumers in good standing, many cardholders will still be well above the initial rate they may have had before interest rates skyrocketed.

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.

Whether it is beginning of a trend or simply just the case of having good fortune, the month of December was one that gave credit card issuers a reason to smile. This is because for many of them charge-offs showed a decline from previous months. While this was not the case for all of the major issuers, hopefully this will continue into 2010.

Those that saw a decrease in December numbers from November include JP Morgan (Chase), American Express, Citi Bank, and Discover. As for the numbers Chase reported charge offs at 7.11 percent from around 8.81 percent and American Express saw a slight drop to 7.10 percent from 7.60 percent. Citi stated theirs drop to 9.56 percent from 10.29 percent and Discover said their numbers dropped to 8.68 percent from 8.98 percent. Those that were not as fortunate to shake the trend of rising charge offs included Capital One and Bank of America. Capital One saw highest increase of 10.14 percent from 9.60 percent and Bank of America rose to 13.53 percent from 13 percent.

While this is good news for many of the banks, we can also think that this is good news for borrowers as well. As these numbers begin to stabilize we may hopefully get to see some calmness from issuers that have drastically changed the world of using credit cards that we once knew. Even as many have vowed to never use credit cards again, for those that are currently looking for credit this could very well effect the likelyhood of getting it extended to you.

It now seems that a day after millions of people learn that their donations to Haiti may be getting cut short due to a thing banks call a "transaction fee", issuers and networks have decided to put the word out on how they will help. As for the networks, both Visa and MasterCard have stated that they will waive their transaction fees, donate money to the Red Cross, and do something truly special. They have decided to match any contribution given by their employees to certain organizations that are on the forefront of relief efforts in Haiti.

When it comes to the issuers American Express has publicly stated that they have essentially waive the fees in the form of a rebate on contributions made on AmEx cards to relief organizations listed on the USRelief website. They are also donating $250,000 to the cause. Other issuers have decided to donate money as well. Issuer and donations amounts so far include:
 

• Wells Fargo Pledges $100,000
• Citi Pledges $2 Million
• Discover Commits $100,000 (Pledges up to $1 Million More)
• JPMorgan (Chase) Pledges $250,000
   

If you currently have a credit card from an issuer that is not listed, don’t worry too much as other issuers have other ways to make sure your whole donations is getting where you want it to be. As stated in an earlier blog posting entitled "Who Will Waive Their Fees for Haiti", Capital One traditionally waives any fees of charitable donations that are given through their own website.

Every once in a while there is always one company that comes along that is said to have grown too big, too quickly. While this is generally not the case when it comes to financial institutions, it is definitely the case with it comes to banking giant, Bank of America. Now according to an article in the Wall Street Journal entitled, "New Chief at Bank of America Seeks Credit-Card Fix", it looks like there are major changes ahead of the nation’s largest banking institution in order to get back on track.

From this article, it looks as the man in charge looks to reposition his company’s credit card portfolio as one of quality over quantity. While in the past one of the primary goals was to have more cardholders, it resulted in very high losses as default rates increased to record numbers. Even now Bank of America still reels in heavy losses due to the poor decision making of extending credit to those who would have not qualified under other circumstances.  

So will Bank of America, get back to the dominance level that it was once at? While the answer is more than likely yes, it will take some time and a better marketing strategy. As far as moving forward, the new CEO has made it a point to no longer extended credit cards to everyone who applies (or doesn’t apply for that matter). The focus will now be on extending more financial offers to their current customer base, and making sure that that those who are extended credit by way of credit card know exactly what they are getting.