After months of 0% rate decreases and interest rate increases, major credit card companies are beginning to advertise good credit card offers again.  For many of us, its hard to trust any credit card company.  Loyal customers of 20 or more years recently saw their Citibank interest rates increased to 29.99% and just about everyone has endured a credit limit decrease or interest rate increase over the past twelve months.

Fortunately, credit card companies are looking to replace the customers they chased away with rate hikes and credit limit cuts and replace them with new customers.  Unfortunately, getting approved for the best credit card offers will require much better credit than it did a year ago.  Nevertheless, consumers seeking to take advantage of 0% APR credit card offers will find more than a few credit cards offering these rates on purchases and balance transfers for up to 12 months. (more…)

After months of decline, a number of 0% credit card offers have returned to the market.  During the majority of 2009, credit card companies relentlessly slashed the duration of 0% introductory offers, with most companies only offering intro rates that lasted around 6 months.

In the past few weeks, however, more and more credit card companies have upped the ante by returning to 0% for 1 year offers.  This is particularly helpful for consumers looking to take advantage of balance transfer deals that had previously been reduced to an average of six months.

Unfortunately, it is unclear how long these credit card offers will remain available.  Credit card companies often conduct market tests-in which we are the subjects-to determine the least costly ways to reign in new customers.  During the heart of the credit card crisis-from January of 2009 until August-credit card companies engaged in activities that served to chase customers away.  This, as you may know, included interest rate increases, minimum payment increases, and the changing of fixed for life APRs into variable rates.

With the exception of Citibank and Wells Fargo, most major credit card issuers have stopped raising interest rates as the new credit card laws are set to take effect.  However, Citibank raised interest rates substantially on many customers this weekend, signaling that all is not entirely well at one of the nation’s largest credit card issuers (and bailout recipient).

Fortunately, customers who are suffering under the weight of high interest rates do have more 0% credit card offers to choose from today.  Hopefully this trend will continue.

For more information on current credit card applications and to apply online, please use the links to your left to peruse offers at Smart Credit Choices.

After substantially raising interest rates on customers during July, Citibank has recently raised interest rates to 29.99% on thousands of unsuspecting customers, many of whom have very good credit and longstanding histories with Citi credit cards.

Citi’s decision to raise interest rates to an astounding 29.99% represents perhaps the most dramatic and unjustifiable rate increases to date.  Generally, 29.99% interest rates are reserved for customers who have defaulted on their accounts and is generally the highest rate charged by any prime lender.  Even cash advances, which carry absurd interest rates, are usually only charged APRs of around 22%.

Consumers who have been notified of a rate increase have little choice but to choose to opt out or close their accounts in order to preserve their current interest rate.  However, opting out can lead to a number of problems.  First, opting out can cause significant credit score decreases, as closing an account increases a person’s credit utilization ratio, which is the amount of credit card debt used versus what is available.  Credit utilization ratio’s account for 30% of a person’s credit score, and people with high ratio’s appear maxed out to creditors.

Appearing maxed out can make it much more difficult to get approved for a new credit card, not to mention higher mortgage and other loan rates.

To mitigate the effects opting out can have on your credit score, strongly consider applying for and opening a new credit card account immediately.  This will not only help decrease your credit utilization ratio, but provide you with lower cost credit you may not be able to get if your credit score is damaged by an account closure.

If you received a rate increase notice but do not carry a balance on your credit card or can pay it off, it may be worthwhile to keep the account open to prevent damage to your credit score.  However, anyone who will need time to pay off their accounts should elect to opt out immediately.

Should you choose to open a new credit card account, you can review credit card applications on our website by selecting a category from the left.  Many banks are still offering 0% rates that last up to 1 year and you may be able to turn this horrendous situation into a positive by utilizing a 0% balance transfer credit card to reduce interest expenses.

For more information on 0% credit card offers, please visit the comparison section of this website where you can compare offers and apply online.

With the holiday season approaching, I’d like to be optimistic about the availability of credit.  Unfortunately, credit card companies appear to be making it even more difficult for consumers without excellent credit to get new cards.  While its easy to blame this on the credit card companies, the new credit card laws are having an effect on this matter, perhaps more than intitially realized.  Given the fundamental changes facing the credit card industry, consumers may be in for a long winter and a credit-less holiday season.