About Rob Berger

Rob Berger is the found of Credit Card Offers IQ and the popular personal finance site, Dough Roller.
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Fixed Rate Credit Cards are the Latest Casualty of the Credit Card Act of 2009

By on July 24, 2009 in Credit Card News

Since the passage of the Credit Card Act of 2009, consumers have watched as credit card issuers have raised rates, reduced rewards, and limited credit. Designed to protect consumers from predatory lending practices in the credit card industry, the Credit Card Act of 2009 has instead done just what many predicted–made credit cards less consumer friendly.

The first casualties were higher interest rates and reduced 0% balance transfer offers. Higher fees on balance transfer offers and increased annual fees followed. And now, fixed rate credit cards have become the latest casualty of the Credit Card Act.

Before the passage of the Credit Card Act of 2009, fixed rate credit cards were common. As the name suggests, a fixed rate card has a set interest rate that does not fluctuate as interest rates go up and down. Before the Act, card issuers could raise a fixed rate card, however, if it concluded the cardholder presented an increased risk of default.

Because the Credit Card Act severely restricts a card issuer’s ability to raise rates, card issuers have been moving away from fixed rate cards and to variable rate cards. With variable rate cards, the interest rate is tied to the prime rate or some other interest rate measures. As interest rates in general go up, so will the rate on the credit card.

Many national card issuers have gone to variable interest rates, including the following:

While some have described the switch as taking advantage of a loophole in the Credit Card Act, that overstates the case. A variable rate card will not permit card issuers under the new law to raise rates at will. The card’s interest rate will still need to be tied to the prime rate or some other benchmark. Indeed, this will benefit consumers as rates fall. Given the historically low prevailing rates, however, we are unlikely to see rates fall dramatically if at all in the near term.

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Fidelity Rewards American Express® Cards

By on May 22, 2009 in credit cards

American Express has joined with Fidelity to offer three rewards cards to help cardholders save more money. Each card is designed to reward cardholders with 2% cash back deposited directly into a linked Fidelity account. Each card offers unlimited rewards with no annual fee.

Fidelity offers three cash rewards cards, depending on the type of Fidelity account cardholders want to link to the credit card. These account types are a 529 plan, a Fidelity IRA, or mySmart Cash Account® or brokerage account.

It is important to keep in mind that all IRA and 529 plan contributions resulting from the card will be considered current-year contributions. The ability to contribute to an IRA or 529 college savings plan account is subject to IRS rules and specific program policies, including those on eligibility and annual and maximum contribution limits.

One of the benefits of this Card is that you can direct your rewards points to a friend or family member’s Fidelity-managed 529 Plan account. Friends and family members can also link their 529 College Rewards Cards to your account.

To the extent that you are not eligible to make an IRA or 529 plan contribution or have already made your maximum IRA or 529 plan contribution for the year, any additional contributions can subject you to IRS excise taxes. Fidelity warns that it is the cardholder’s responsibility to ensure that any deposits to a linked Fidelity account are eligible contributions and do not violate the terms of a cardholder’s Fidelity account, applicable IRS contribution rules, or limitations or other applicable laws or regulations.

Before depositing cash rewards into a linked account, however Fidelity will check to verify whether a cardholder has reached their maximum contribution amount with Fidelity for that year. If Fidelity determines that a customer has fully contributed to his or her Fidelity IRA(s) accounts for that year or reached the maximum contribution limit on his or her Fidelity 529 account, Fidelity will not accept the points transfer, and the customer’s points will continue to accrue. Customers can continue to let points accrue until the next year, or they can redeem these points for other merchandise or travel.

How are points redeemed into a Fidelity account?

Fidelity American Express Cardmembers earn 2 points for every $1 spent in net retail purchases. Customers can choose to have their points automatically redeemed for cash into their eligible Fidelity account, or choose to accrue points and redeem them on demand at any time. Customers must earn a minimum of 5000 points to have them redeemed into a Fidelity account. Once you have reached 5000 points, they can be converted at a rate of 1% (1 point = $0.01) into the eligible Fidelity account you designate. Deposits will be sent via the Automated Clearing House (“ACH”) Network into your designated Fidelity account(s).

As an added benefit, cardholders can choose to redeem their points for travel with no blackout dates, gift certificates, brand name merchandise, or other items.

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CNN Money Names Top 5 Credit Card Offers

By on May 13, 2009 in blog

CNN Best Credit Cards

CNN Best Credit Cards

CNN Money has just named what it believes to be the top credit card offers in five different categories. The categories include the best balance transfer deals, cash back rewards, gas rebates, and travel cards. From the Iberia Bank card to Escape by Discover, the list includes cards many have heard of before, and perhaps a few that aren’t quite so familiar. Let’s check out the list, and asses CNN Money’s list for ourselves.

Best Balance Transfer–IBERIABANK Visa® Classic Card

iberiabank_visa_2CNN Money named the IBERIABANK Visa® Classic Card as offering the best balance transfer deal. The IBERIABANK Visa® Classic Card offers a 1.99% introductory interest rate on balance transfers for 6 billing cycles.

Cash Back for Small Spenders–Schwab Bank Invest First Visa

For those that don’t put a lot on their credit cards, CNN Money recommends the Schwab Bank Invest First Visa. Cardholders earn 2% unlimited cash back on every single purchase made. Applicants must have a Schwab One brokerage account, but there are no fees to open or maintain it. Points are earned for each purchase, equaling one point for each $1 spent. Points can then be converted to cash, with 1,000 points worth $20. The cash is deposited into a linked Schwab One brokerage account.

Cash Back for Big Spenders–American Express Blue Cash

For big spenders, CNN Money recommends the Blue Cash card by American Express. With Blue Cash, cardholders who charge at least $6,500 a year will see their cash-back percentage increase form from 1% to 5% on purchases at gas stations, supermarkets, and drugstores, and from 0.5% to 1.5% on everything else. For more information, check out our review of the Amex Blue Cash card and our comparison between Blue Cash and Chase Freedom.

A good alternative to the Blue Cash card is the American Express TrueEarnings Card from Costco. For those that shop at Costco, the True Earnings card offers cash back as follows: 3% for gasoline, for annual gasoline purchases of up to $3,000 (1% thereafter), 3% for restaurants, 2% for travel, and 1% everywhere else, including Costco.

Best Gas Rebate Card–Pentagon Federal Visa Platinum

For those looking for a gas rebate card, CNN recommends the Pentagon Federal Visa Platinum. Cardholders get 5% unlimited cash back at the pump, plus 2% on supermarket purchases and 1.25% on everything else. You must join a credit union to get the card.

Best Travel Rewards–Escape by Discover Card

For best travel rewards, CNN recommends the Escape card by Discover. Cardholders earn two miles for every dollar spent, plus 1,000 bonus miles each month they make a purchase for the first 12 months. The card does come with a $60 annual fee.

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President Obama Invites 14 Credit Card Issuers to the Woodshed

By on April 17, 2009 in Credit Card News

The Washington Post is reporting that the Obama Administration has summoned executives of the 14 largest credit card issuers to the White House next week for a meeting. Apparently, the executives plan to discuss efforts to increase transparency and help the economy. The Obama Administration is likely to discuss the advanced implementation of Fed rules designed to protect consumers.

A quick history lesson will help put this meeting in perspective. Back in December 2008, the Federal Reserve published new credit card regulations designed to protect consumers from what some view as predatory lending practices in the credit card industry. The regulations restricted a credit card company’s ability to raise interest rates, required card issuers to more fairly apply payments across all balances subject to varying interest rates, and other consumer-friendly rules. The new rules, however, don’t go into effect until July 1, 2010, which has consumer advocacy groups up in arms.

Congress has made noise about passing credit card legislation similar to the Fed’s regulations, but with an earlier effective date. Several credit card legislative bills have been introduced in both the House and Senate, but none is close to final. And that brings us back to next week’s meeting at the White House.

It’s likely that the Obama Administration will push the executives to implement many of the Fed’s rules now, rather than waiting until 2010. Earlier adoption of the new credit card rules could stave off further federal legislation, but it’s unclear whether the credit card companies are willing to play ball. Consider the meeting next week as Round 1 in what is sure to be an epic battle.

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Visa Black Card Review

By on January 11, 2009 in Credit Card Offers

The Visa® Black Card provides perks and services that no other credit card offers. This card is known for being the worlds most prestigious and versatile credit card. According to many card owners, the Visa Black Card has the same credit criteria as other credit cards, just on a higher scale. Your credit history must excellent and your income must be at least in the six figures annually. The card offers a rewards program, 0% on balance transfers and has an annual fee of $495. Black Card membership is limited to ensure the highest caliber of personal service is provided to every Cardmember.

Visa® Black Card

  • Earn 25,000 Bonus Points When You Spend $1,500 Within 90 days of Account Opening
  • 1% Cash Back as a Statement Credit
  • 100% More Value on Airfare Rewards. It Only Takes 25,000 Points to Get a $500 Ticket
  • 24-Hour Concierge Service
  • Unlimited VIP Airport Lounge Visits
  • Luxury Gifts
  • Excellent Credit Needed

0% Offer

When opening a Black Card account, you can transfer over your existing balances and enjoy a 0% Introductory APR for the first six months. The balance transfer fee during the introductory period is either $10 or 3% of each transfer, whichever is greater. After the introductory period the fee is either $10 or 4% of each transfer. The regular APR for this card is 14.99% (Variable) and can vary based on changes to the prime rate.

Rewards Program

The more you use your Black Card the better. Black Card members can redeem points for 1% cash back or for airfare on any airline with no blackouts or restrictions beginning at 25,000 points for a ticket worth up to $500.

Additional Visa® Black Details

The Visa Black card offers some of the best perks and concierge services available. Here are a list of some of the additional benefits the card offers:

  • Global Acceptance:For your convenience, your Black Card is accepted in over 170 countries worldwide.
  • Zero Liability: Provides complete protection against unauthorized purchases made with your Black Card.
  • Purchase Security: Will replace, repair or reimburse up to a maximum of $500 per claim for eligible items within the first 90 days from the date of purchase.
  • Warranty Manager Service: Includes warranty registration and extended protection, which extends the original manufacturer’s warranty up to one additional year.
  • Lost Luggage Reimbursement: Black Card provides you with complete peace of mind while traveling. Carry-on or checked luggage is covered up to $3,000 per trip if lost or stolen when you purchase your common carrier ticket with your Black Card.
  • Trip Delay: Allow Black Card to take the stress out of travel delays. When a trip is delayed more than 12 hours due to a covered event, expenses incurred as a result of the delay, such as meals and lodging, are reimbursed up to $300 per ticket.
  • Trip Interruption/Cancellation Insurance: Receive reimbursement up to $1,500 in the event of qualifying trip cancellation or trip interruption.
  • Travel & Emergency Assistance Service: Rely on Black Card for assistance in coordinating medical,
    legal and travel services while you are away from home.
  • Baggage Delay Service: Black Card will reimburse you for expenses up to $100 per day for three days for the purchase of essential items in the event of baggage delay.
  • Auto Rental Damage: Offers reimbursement at no additional charge for damage due to collision or theft up to the actual value of most rental vehicles.
  • Worldwide Travel Accident Insurance: As a Black Card member, you receive $250,000 worth of
    insurance coverage for eligible travel. This benefit provides common carrier accidental death or dismemberment coverage at no extra cost.
  • Roadside Dispatch: Black Card protects you when unexpected circumstances occur by providing convenient 24/7 towing and locksmith referral services in the U.S. and Canada.

How to Apply for the Visa® Black Card

Applying for this credit card is quick and easy. We’ve provided a link below that will take you to the official Visa® Black Card website. From this page, you can click on the apply now button to go to the Visa® Black Card secure online application. The application takes just a few minutes to complete, and they will even notify you about the outcome of your application.

To get started, visit the Visa® Black Card official website.

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