• Bad news:  higher rates on purchases, cash advances, balances with a penalty rate due to late payments and of course, higher late fees.
• Good news:  no fee for going over the credit limit.

What a puzzle this is.  They tell me that I’m going to have higher rates, but there is no clear place where I can see what all the new rates are.  That is until I flip the page over.  Now, I have to admit it, I missed reading this page the first 5 times I looked at this.

Meanwhile,  I’ve been a user of auto-pay for a couple of years.  I’ve never been late, but I don’t take this personally.  These are global changes that everyone has to be on the look out for.  I don’t believe that the government should set prices, so I have to be okay with these changes.  But, disclosure is another issue.  This would be like getting a tuition increase notice without them telling you what the increase is.  Disclosure is the key.

So, let’s look at the back page….

Er…. no wonder I missed it the first time.  As if the language isn’t confusing to begin with [the prime plus...blah, blah, blah] this page also doesn’t let us know what the fees used to be.   That doesn’t really give me enough information does it?  Maybe late fees were $35 and now they are $39….seems fair.  Or maybe late fees were $3 and now they are $39….  hmmm maybe I should shop around for a new card.  I could spend hours trying to dig this information out.  Which, I will never do.  Without clear front page information, a consumer can’t make an educated choice.

Credit card reform changes that went into effect today :

Credit card companies must provide 45 days notice before making significant changes in their agreements with customers. Consumers can also reject the changes, triggering an option to wind down their balances over 5 years.

Lenders are prohibited from charging late fees on bills not mailed 21 days in advance of a payment due date, it used to be 14 days notice.

Post from: Video Credit Score

AmEx Under the Wire, Today the Law Changes

August 17, 2009

August 10, 2009

Consumers may want to move quickly.  I’m wondering how quickly rates will return to their 5%+ levels.  It seems that as the economy recovers, rates will continue to grow.  But then again….no one can predict the future. Of course, many people who write in need to work on their debt first.  Buying a house should mean that you have a 6 month reserve of emergency funds, no credit card debt and some level of job or income stability.  Your FICO credit score is just one piece of the puzzle.

Sources: myFICO.com and Informa

Post from: Video Credit Score

Credit Score Update: 8/17/2009 FICO® >760•4.994% APR, FICO® <639•6.583%. Best FICO® saves $109,440 in interest on a $300,000 30-Yr Fixed Mortgage.

August 10, 2009

July 20, 2009

July 12, 2009

Credit Update: 7/12/2009 FICO® >760•4.816% APR, FICO® <639•6.405%. Best FICO® saves $108,000 in interest on a $300,000 30-Yr Fixed Mortgage.

July 5, 2009

Credit Update: 7/05/2009 FICO® >760•4.968% APR, FICO® <639•6.557%. Best FICO® saves $108,720 in interest on a $300,000 30-Yr Fixed Mortgage.

June 28, 2009

Credit Update: 6/28/2009 FICO® >760•5.120% APR, FICO® <639•6.709%. Best FICO® saves $109,000 in interest on a $300,000 30-Yr Fixed Mortgage.

June 21, 2009

Charts source: MyFICO and Inform Research Services

Post from: Video Credit Score

Credit Update: 8/10/2009 FICO® >760•5.048% APR, FICO® <639•6.637%. Best FICO® saves $109,440 in interest on a $300,000 30-Yr Fixed Mortgage.

Rates are starting to get higher, but the savings difference improved – $108,720 in savings just from jumping from a sub-639 score to a 760+. This equates to $3,624/yr. Rates have gotten worse by 125 basis points just in the last few weeks.

Credit Update: 7/20/2009 FICO® >760•4.941% APR, FICO® <639•6.530%. Best FICO® saves $108,720 in interest on a $300,000 30-Yr Fixed Mortgage.

July 20, 2009

July 12, 2009

Credit Update: 7/12/2009 FICO® >760•4.816% APR, FICO® <639•6.405%. Best FICO® saves $108,000 in interest on a $300,000 30-Yr Fixed Mortgage.

July 5, 2009

Credit Update: 7/05/2009 FICO® >760•4.968% APR, FICO® <639•6.557%. Best FICO® saves $108,720 in interest on a $300,000 30-Yr Fixed Mortgage.

June 28, 2009

Credit Update: 6/28/2009 FICO® >760•5.120% APR, FICO® <639•6.709%. Best FICO® saves $109,000 in interest on a $300,000 30-Yr Fixed Mortgage.

June 21, 2009

Charts source: MyFICO and Inform Research Services

Post from: Video Credit Score

Credit Update: 7/20/2009 FICO® >760•4.941% APR, FICO® <639•6.503%. Best FICO® saves $108,720 in interest on a $300,000 30-Yr Fixed Mortgage.

Rates are starting to get , but the savings difference declined by just a few dollars. Still, $108,000 in savings just from jumping from a sub-639 score to a 760+. This equates to $3,600/yr. Rates have improved by 353 basis points just in the last few weeks.

Credit Update: 7/12/2009 FICO® >760•4.816% APR, FICO® <639•6.405%. Best FICO® saves $108,000 in interest on a $300,000 30-Yr Fixed Mortgage.

July 12, 2009

July 5, 2009

Credit Update: 7/05/2009 FICO® >760•4.968% APR, FICO® <639•6.557%.  Best FICO® saves $108,720 in interest on a $300,000 30-Yr Fixed Mortgage.

June 28, 2009

Credit Update: 6/28/2009 FICO® >760•5.120% APR, FICO® <639•6.709%. Best FICO® saves $109,000 in interest on a $300,000 30-Yr Fixed Mortgage.

June 21, 2009

Charts source: MyFICO and Inform Research Services

Post from: Video Credit Score

Credit Update: 7/12/2009 FICO® >760•4.816% APR, FICO® <639•6.405%. Best FICO® saves $108,000 in interest on a $300,000 30-Yr Fixed Mortgage.

Rates got a little better again this week, but the savings difference declined by just a few dollars. Still, $108,720 in savings just from jumping from a sub-639 score to a 760+. This equates to $3,624/yr.

Credit Update: 7/05/2009 FICO® >760•4.968% APR, FICO® <639•6.557%.  Best FICO® saves $108,720 in interest on a $300,000 30-Yr Fixed Mortgage.

July 5, 2009

June 28, 2009

Credit Update: 6/28/2009 FICO® >760•5.120% APR, FICO® <639•6.709%.  Best FICO® saves $109,000 in interest on a $300,000 30-Yr Fixed Mortgage.

June 21, 2009

Charts source: MyFICO and Inform Research Services

Post from: Video Credit Score

Credit Score Rate Update: 7/5/2009 FICO® >760•4.968% APR, FICO® <639•6.557%. Best FICO® saves $108,720 in interest on a $300,000 30-Yr Fixed Mortgage.

Rates got a little better this week, but the savings difference stayed the same. Still, $109,000 in savings just from jumping from a sub-639 score to a 760+. This equates to $3,660/yr.  That’s like getting over two months of your mortgage paid for every year.

Credit Update: 6/28/2009 FICO® >760•5.120% APR, FICO® <639•6.709%.  Best FICO® saves $109,000 in interest on a $300,000 30-Yr Fixed Mortgage.

June 28, 2009

June 21, 2009

Charts source: MyFICO and Inform Research Services

Post from: Video Credit Score

Credit Score Rate Update: 6/28/2009 Best FICO® saves $109,000 on a $300,000 30-Yr Fixed

• 43% of consumer credit scores have gone up
• 27% have gone down
• 30% remained the same

This is happening despite the credit limit decreases, the interest rate hikes and the strain of the general economy.  The net net is that consumers are cutting back their spending – whether they need to or not.  Look we’ve lost 5 Million jobs, but that a change in employment of 3% of our country.  Yet, doesn’t it feel like more than 3% are cutting back.  Heck, I’d be surprised if 3% are still spending the same.  I feel like everyone I know is conserving and the credit scores reflect this.

SAN FRANCISCO, CA — 04/15/09 — Credit Karma (www.creditkarma.com), a pro-consumer credit score
tracking and management service, today released its U.S. Credit Score Climate Report with trend data for March 2009. During the December 2008 to March 2009 time period, Credit Karma saw an increase in credit scores across all geographies and most age groups. 43% of consumer credit scores have gone up, 27% have gone down, and 30% remained the same. Of the scores that increased, the average credit score
rose 14 points during the time period. Of the scores that decreased, the average credit score dropped 14 points. The current average U.S. consumer credit score is 678.

The Credit Karma U.S. Consumer Credit Score Climate Report provides a monthly barometer on consumer credit trends, a particularly important economic indicator in today’s market. Each month, the Report offers unique and insightful statistics on the health of consumer credit scores nationwide. Trend data in the report is based on a comparison of Credit Karma users’ March credit score with their previous credit score at least 30 days prior and no more than 90 days out. Here are some additional findings:

– Average credit score with no change is 695 whereas 674 and 665 are the respective credit score averages for those with an increase and decrease. This would suggest that people with higher credit scores maintain more stable credit scores while those with marginal credit scores tend to be in flux.

– The 65 and up age group was the only age group that didn’t see a majority of credit scores increasing. 32% of this age group’s credit scores increased, 27% decreased, and 42% remained the same. The average credit score for the 65 and up age group is 735.

– Compared with February, more consumers’ credit scores are going up. In February 2009, 39% of consumer credit scores went up compared to 43% in March. That average up credit score in February was 675 compared to 674 in March. Fewer consumers’ credit scores have also gone down. 29% of credit scores dropped in February compared to 27% in March. The down credit score in February was 663 compared to 665 in March. 32% of consumers had their credit scores remain stable in February compared to 30% in March. Of the credit scores that remained stable, the average was 695 for both February and March.

– The Midwest had the highest increase with 44% of consumers seeing their credit scores go up in March. The average up credit score in the Midwest is 674. In February 2009, 41% of Midwest consumers saw their credit scores rise and the average up score was 676. Amongst states, Illinois saw the most credit scores go up in March. 45% of Illinois consumers had their credit scores rise and the average up score is 683.

Methodology

Each month, the Credit Karma U.S. Consumer Credit Score Climate Report compares the current credit scores of its 350,000 user base with previous scores pulled at least 30 days prior and no more than 90 days prior to the stated month. This month’s report includes a comparison of more than 30,000 Credit Karma user scores.

Post from: Video Credit Score

Credit Scores Rise in March 2009

South Park did a great bit on the credit crisis….”and it’s gone”. The continuation of this episode can be found via this link http://www.breitbart.tv/?p=305583

Stan first tries to deposit money in his bank and it’s gone in a few seconds.  Next, he tries to return a Margaritaville which was purchased by his dad who is a victim of mindless consumerism.

Once at Sur La Table, he learns that he’s not “abla” to return it.  He learns that the Margaritaville mixer was purchased on a finance plan, so he goes to the big Orange finance company to get a refund.  The Orange finance company explains the securitization of Margaritavilles.  There, he’s directed to Wall Street.

The wall street guy explains he must go to the Treasury to get his answers.  By consulting the chart, the Margaritaville is given a value of $90MM which Stan knows is ludicrous.

The sketch ends with a decision around what to do about another insurance company that’s going under.  The solution: Bailout.

Post from: Video Credit Score

South Park Explains the Credit Crisis

1. Santa probably opens all those store cards to save money. Hey, many of us have done this.  The pitch:  “Save 15% when you open a [insert retailer name here] card”.  Sure, you may save $50 now, but you might end up paying $50/mth more if that new card inquiry lowers your credit score and you need to refinance or purchase something big….like a home or car.
   



2. Santa has too large a shopping list. People who shop more tend to have more debt.  This is one reason why older people have better credit.  They don’t need as much stuff, so they spend less.  Nobody shops more than Santa.  Sure his workshop builds some products, but by the looks of his operations in the movies, you’d think he’d be asking for a bailout package to help build toys more efficiently. His factory floor makes GM look impressive.   I believe in Santa Claus, but building Wii’s at the North Pole? I don’t think so.  He’s definitely spending a lot of money on gifts.  For those of you who think he’s using his business credit for this, ask a small business owner about that.  Most small businesses have their personal credit impacted by running their business.  American Express told me a business needs $2MM in annual revenue to have a credit card that doesn’t hit their personal credit.  I’ve never heard of Santa collecting a dime in revenue, so his credit could be rough.
   



3. Santa travels too much. The bad part about traveling is those pesky expenses.  If your company is slow to reimburse you, you might be impacting your own credit score to keep up. This is especially true if you want reward points, you may use your own credit card over the company card — great for points, bad for your credit score.  At least Santa seems to avoid the fancy dinners and gets a lot of free cookies and milk.  Ah, the joys of being able to stop time and fly private and cost free [although that reindeer food must cost something].
4. Santa’s heating bill at the North Pole is probably prohibitive. Ironically, according to Experian’s average credit score by state, Texas, a warmer weather state, has the lowest credit scores in the country.  So, I’m not sure this argument holds much weight. Still, the North Pole lifestyle must lead to more online and late night QVC-type shopping.  Makes me wonder, are nationwide purchases higher in February then August?  If so, is it because people are trapped indoors and can’t get out?  A winter storm used to mean disaster for retailers, but with online stores, it often benefits them now.



5. Santa seems to have an “Old School” marriage. In old school marriages, people communicate about money less, scratch that, they communicate less in general.  No, I can’t prove this, I just watch people at restaurants. Young married couples argue at least, older married couples often don’t say a word.  My data points are a bit dated as Mrs. Claus doesn’t make many appearances in the mainstream media – US magazine, are you listening?  If I watch the oldie but goodie “Year without a Santa Claus” or “Rudolph”, I never see them talking about money.  Look, it’s possible that the Claus family is similar to many families and engages in a bit of “financial infidelity”.  That always leads to credit challenges.

Moral:  Don’t make the mistakes that Santa is forced to make.  Be smart about using your credit cards this holiday season.  Remind yourself that mortgage rates may soon hit the lowest rates in years.  The fed is considering 4.5% 30-year rates.  You don’t want to miss out on these rates just because of some holiday credit behavior.

Post from: Video Credit Score

5 Signs That Santa’s Credit Score Sucks