Wondering how your credit card stacks up to the rest of those available on the market.  Here’s the rundown of 2008′s J.D. Power and Associates 2008 Credit Card Satisfaction Study(SM).  All scores are based on a possible score of 1000.

1. American Express – 783
2. Discover – 751
3. Average Score for all Issuers in the Survey – 724
4. National City – 721
5. Chase – 719
6. U.S. Bank – 716
7. Washington Mutual (while it existed!) – 712
8. Wells Fargo – 709
9. Bank of America – 692
10. GE Money – 683
11. Target Visa – 682
12. Capital One – 678
13. HSBC – 667

As you can surmise from these scores, credit card companies aren’t exactly A students.  In fact, the bottom five, which includes Bank of American and Capital One, could all use tutors.  The overall scores, however, should be taken with a grain of salt.  Do you know anyone who loves credit cards?  Obviously, then, consumers won’t be handing out A’s to the the people who charge them interest every month.  Yet there are clear and substantial differences between the best and worst rated. 

While these differences are definitely worth considering, the most important factor to consider when applying for a credit card is the overall deal.  For example, Capital One may not have ranked well in the survey, but they offer great cashback and frequent flyer rewards.  Similarly, American Express led the pack, but many of their cards have hefty annual fees.  In the end, what others say about a credit card company should play a role in your decision making process, ultimately, the company that offers the best deal for your needs is the one you should do your business with.

You can review current credit card offers from the companies listed above by visiting their respective sections of Smart Credit Choices.  You can also compare offers categorized by features, such as interest rates and rewards to better target your search in the credit card application sections of Smart Credit Choices.

Source:  http://www.jdpower.com

American Express may have taken the top prize in J.D. Power and Associates 2008 Credit Card Satisfaction Study(SM), but Discover once again came in a close second.  However, depending on the type of consumer you are, Discover may be a better card for you.  Here are few areas where Discover shines:

Annual Fees:  Discover doesn’t charge them.  Many American Express cards do, with some consumer cards carrying fees in the low hundreds.  For the big spending Amex crowd, these fees may be worth the trade off to be a part of the much lauded American Express Membership Rewards programs.  However, many credit card users are better off keeping that money in their own banks.

Rewards:  While American Express offers a wide range of no fee rewards programs, most notably, the cashback program attached to Blue Cash® from American Express, Discover keeps its customers more than satisfied with its own Cashback Bonus® program, which includes popular cards such as the Discover® Open Road (SM) Card, which offers consumers 5% cashback on gas.

Customer Service:  Nobody likes credit card companies.  In fact, credit card issuers are the least liked players in the financial service industry.  However, according to J.D. Power’s executive director of financial service, Discover had about 50% less complaints than the average credit card company (source http://articles.moneycentral.msn.com/Banking/CreditCardSmarts/credit-cards-with-the-happiest-users.aspx?page=all)

Of all the credit cards included in the surver, only American Express and Discover received 4 or more stars in every category.  And, given the absence of fees, competitive cashback rewards program, and high customer satisfaction, a Discover card may be the card for you.

To compare and apply for a Discover Card, visit the Discover credit card section of this website.  You can also compare offers and apply online for American Express, Chase, Capital One, Bank of America, Citibank, and HSBC credit cards in their respective sections. 

Additionally, you can compare 0% APR offers, cashback rewards offers, travel rewards offers and more in their respective sections of www.smartcreditchoices.com.

Can you remember a time when your mailbox wasn’t flooded with 0% APR credit card offers?  You’ll have to think hard, because its been close to a decade.  Over the past few years, so many trees have been cut down and stamped with bold 0% imprints that if you listen closely, you can hear Al Gore weeping over the matter.  Unfortunately, however, it may be you, and not the former Vice President, weeping if you fail to take advantage of 0% APR teaser rates soon.  Why?  Because the same banks that don’t want to lend money to home buyers at 6% interest rates may soon decide to stop funding purchases of flat screen TV’s, trips to Disney World, and $6 lattes without charging substantially higher interest rates.

While this position may seem alarmist, the history of the credit card contains many pages that do not contain the words, “0% Intro APR.”  In fact, many of those pages don’t even contain the words, “Intro APR.”  In January of 1999, a CNN Money article (see http://money.cnn.com/1999/01/27/banking/q_bankrate/) states that, “In the third quarter of 1998, only 36 percent of new card offers mailed to consumers included an introductory rate.”  And what were those rates.  In describing a “crackdown” on the percentage of credit cards that offered introductory rates, the writer states, “Because all those super-low teaser rate offers, often 5 percent or less, were wonderful for the consumer but lousy for the credit card companies.”  Its hard to think of a 5% APR as super-low, but its time to start contemplating the possibility of this becoming a reality.

Fast forward to 2001.  Same website, similar topic.  In this article (see http://money.cnn.com/2001/03/15/living/q_bankrate/), the topic is introductory rates for balance transfers.  And the idea of a 0% Intro APR doesn’t even get a sentence.  In fact, the leading deals offer introductory interest rates of either 1.9% or 2.9%, plus fees of up to 5% per transfer.  While this is not as high as the lofty 5% rates of the late 1990′s, it is still a good deal away from 0%.

While 0% introductory rates may not disappear altogether, the possibility should not be ignored.  Credit card companies have been tweaking their offers all year long.  Some companies, like Bank of America, have stopped offering 0% rates on purchases with many of the cards they offer online.  Other companies, such as American Express, have decreased the length of time 0% rates apply.  For example, Blue from American Express® has offered a 0% intro APR for up to 15 months since 2005.  Recently, the term was reduced to “up to 12 months.”

So should you panic?  Not yet.  However, if you are carrying a balance on a credit card with a 10% or higher interest rate, you may want to take advantage of a 0% APR balance transfer sooner rather than later.  The same holds true if you intend to make new purchases that you will not be repaying in full every month.  You can save hundreds on interest with a 0% intro APR now, but three months from now….

To learn more about current 0% APR credit cards, please visit the main section of SmartCreditChoices.com.  At our main website, you can compare close to 100 current offers and apply online for a money saving, 0% APR deal.

Yesterday I saw a credit card that offered a 0% balance transfer for life.  Then I saw a unicorn and stole a pot of gold from a leprechaun.  And then I woke up.

In the past,  there was a very remote possibility of getting a 0% APR on balance transfers for life.  Getting the offer required a bit of luck, as it was a mail offer from Discover that, it seems reasonable to assume, was aimed at consumers with excellent credit.  I found evidence of this offer’s existence on the website Consumerist.com, complete with this image:

There are a few things of note in the above image.  First, the offer is from September or October of 2007 at the latest.  The credit card world has changed a lot since then.  The second is a clause which could be easily exploited.  It requires that two purchases be made every month.  This exists for a reason.  All payments go towards the balance on your card being charged the lowest interest rate, so if you use the card for purchases, you start accruing interest.

An obvious loophole would be to make two very small purchases every month.  However, all the strategizing in the world isn’t gonna help you find an offer for a 0% APR balance transfer for life.  The fact of the matter is that most banks are unwilling to lend people money for balance transfers at a fixed for life APR of 5%, let alone 0%.

While logic led me to believe it was impossible for a 0% APR balance transfer for life existed, I tried my hand with Discover’s customer service.  And the reps I spoke to thought I was crazy.  Real crazy.

So, while the credit crunch drags on, you can continue to pay interest and wait for a magic invitation to arrive in the mail from Discover that offers a 0% APR for life on balance transfers.  Or, you can take control of your financial life and settle for a credit card that offers a 0% APR on balance transfers for 1 year like the rest of us mortals.

The way the credit crunch is going, I may find myself blogging about how these offers have become a relic of the good old days.  And that time may be soon.

For information on real, (relatively) easy to get 0% balance transfer deals, visit the balance transfers section of Smart Credit Choices.  Ironically, some of the best deals on the market come from Discover, the former guardian of the 0% for life gate.

Disclaimer:  The following information is merely an explanation of a money saving technique commonly referred to as balance transfer arbitrage.  It is by no means an endorsement of this technique and should not be constituted as financial advice.

As you can tell from the above disclaimer, balance transfer arbitrage is a money saving technique that is not without drawbacks.  Here, we will discuss the premise, the process and the risks of this strategy.

First, lets begin with the tools:  a 0% APR balance transfer offer, credit card debt and money in the bank (yes, money in the bank!)  For this example, we’ll assume credit card debt of $10,000 on a single card and a the same amount in cash.  To start the process, a person transfers the $10,000 to a credit card offering a 0% APR on balance transfers for 1 year and charges a maximum balance transfer fee of $75.  (You can compare these offers in the balance transfers section of this website.)

Once you set up the balance transfer, open up a high yield savings account.  While rates are down substantially over the past year, it is still possible to find one that offers an interest rate in the mid to high 3% range (see http://www.bankrate.com/brm/rate/deposits_home.asp for current rates).  Now, deposit your $10,000 into the high yield savings or money market account. 

Over the course of a year, you’ll earn around $300-$350 in interest, depending on your interest rate, while paying no credit card interest.  During the course of the year, make your minimum monthly payments to the credit card (obviously) and be sure to keep your savings in the bank.  At year’s end, taking balance transfer fees into consideration, you’ll have an extra $275 after paying off your debt.

And, while the taxman will want a bite out of your savings, it is still $275 you can create by spending a half hour online. 

Balance transfer arbitrage doesn’t have to end after one year.  There are plenty of credit card companies willing to lend to consumers with good credit.  (At least, they have been in the past)  However, don’t count your chickens until the eggs hatch.  Yet, if you can transfer your balance to another 0% card, there’s no reason not to.  Keep you money in the bank, let the interest pile up, and gradually pay down your debt while earning a modest income on cash you’d otherwise have no access to.

To review credit card candidates, visit the 0% APR section of Smart Credit Choices to compare credit cards to use for balance transfer arbitrage.