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.

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.

When it comes to lending, it seems that consumers are not the only ones realizing that taxpayers are coming up short, as the White House recently let it be known that it has not seen as much as they would like from those financial institutions that were helped with taxpayer’s money.

Not too long ago the President himself let it be known how dissatisfied he was with the ways banks are treating both businesses and consumers alike. In the news conference he urged banks to find ways to allow consumers more access to money. When it comes to the reactions of the message many banks have not been very outspoken. Thus far only one CEO had a comment, and stated his company would be willing to take a second look at all the loans it has rejected. While he does not specify which accounts he refers to, one can only hope that credit cards are included.

Like many Americans it is really hard to believe that many larger financial institutions will change their ways when it comes to lending. This is especially true when it comes to credit cards as many banks have already let it be known that they are limiting those that are newly approved both physically and verbally.

For millions of Americans, at least one gift card is expected to be found under their Christmas tree this year. Just like last year, experts are predicting gift cards to be the leading gift as over $80 billion are estimated to be funded onto these cards, adding another year of dominance to the gift list.

So how did gift cards become so popular with consumers who at one point or another believe that they would stick with giving presents and cash? While there are probably many answers, the two that seem to be used more often are the facts that they are more personal and convenient. When thinking about personalized gifts, there are literally thousands of cards tailored to meet any need, as well as general generic cards that can be used anywhere as long as the card has sufficient funds. As for convenience, Americans have grown accustom to using plastic to pay for goods. Each year more people rely on plastic (prepaid, debit and credit cards) to purchase nearly all of their goods and services, and gift cards follow suit. Even when fees may be involved (just like other cards) consumers will still use plastic over other forms of payments.

While credit card issuers may be unhappy with the growing trend of consumers moving away from credit cards, there seems to be one group besides consumers that are looking to benefit. This group is the merchants, and they have targeted those that are comfortable with using credit but just unhappy with their current credit provider.

Over the past couple of months, while banks were raising rates, many merchants themselves have been looking for ways to earn more this holiday season by offering alternative payment as well as ways to defer payment for several months. This in turn has prompted more merchants to adopt services like that of "Bill Me Later", which offer financing up for an extended amount of time. Generally the payment is not due for up to 90 days and if the consumer is late on the payment there is a finance charge.

When it comes to why more merchants are starting to offer services like this, it should come at no surprise that the answer is revenue. For merchants, credit card purchases have traditionally made up a large amount of their sells. Now that consumers have decided to use cash only or limited debit card purchases, they must find new ways to keep consumers engaged and continue to offer payment options that allow them to make money.

When it comes to charitable giving Capital One isn’t the only credit card issuer that is giving to those less fortunate. Having their own way of making charitable donations Chase and Facebook have teamed up for the Chase Community Giving Program. With this around 100 charities that will receive a $25,000 grant with one giving the opportunity to receive a one million dollar grant.

For this program the charities that received the initial grant were voted upon by Facebook members, which numbered well above the one million. According to Chase, the turnout was one of the highest it has had with programs such as these. For those charities that did make it to the next round the challenge to get the one million dollars is a little different. For this companies must submit a proposal detailing the difference they would make in their local community with the money.

While the number of charities that received the grants may seem like a small number to some people, every charity received something much more valuable. According to a representative of the Chase Community Giving program, all participating organizations where given a national platform to promote their missions, which ultimately attracted new supporters and gained visibility for every charity.