The consumer credit landscape has changed more this year than it has in the past five years and perhaps much longer.  For the past four years, it has been possible to obtain a credit card that offered a fixed APR for life on balance transfers with rates as low as 2.99%.  American Express, which has always been a card for spenders, had been offering fixed APRs on balance transfers with rates of 4.99% to 5.99% for years.

All of that changed this September.  None of these changes are good for consumers.  Fixed APR balance transfers served as a very good alternative to 0% APR balance transfers for saavy consumers looking to pay down their debt over a multi-year time horizon.  However, the credit crunch has made just about every credit card company myopic, causing them to focus strictly on the short term.

Given the ultra competitive nature of the credit card market, it may not be long before another company steps up with a fixed APR for life balance transfer offer to fill the gap in the market.  However, in the meantime, consumers looking to consolidate credit card debt and save money on interest are limited to short term, 0% balance transfer offers. 

In our next posting, we’ll discuss some solutions for saavy savers who would otherwise have opted for a fixed APR balance transfer.

You may have noticed a lack of postings to the blog recently.  We apologize for the absence, but have been working hard to add new information to our main site.  Recent additions to Smart Credit Choices include articles on how to save money on international credit card fees, get a high limit credit card, save money on balance transfers and more. 

In addition to these sections, we’re also in the process of creating a new travel rewards section to help consumers take advantage of the many free mile and hotel stay deals being offered by co-branded credit cards.

To stay up to date on the latest in credit card news, check out the new features on Smart Credit Choices.

Over the years, many of us have come to take 0% APR credit card offers for granted.  But not very long ago, 0% introductory teaser rates barely existed.    For example, a 1999 article on CNN commenting on trends in the credit card industry wrote:

“There is some good news for people looking to consolidate their credit card balances: Teaser rates have been inching down since late 1997. The typical rate on new teaser rate mailings in the third quarter of 1998 was 4.14 percent, down from 5.33 percent in 1997.”

Not only were introductory rates significantly higher, they were also much less common.  The same 1999 article explains:

“In the third quarter of 1998, only 36 percent of new card offers mailed to consumers included an introductory rate, according to BAIGlobal Inc., a Tarrytown, NY, market research firm. ”

Today, nearly every offer available provides a 0% introductory rate on either purchases, balance transfers, or cash advances.

However, given the current “credit crisis” it is not unreasonable to think the banks may cease giving money away at 0% rates at any time.  Fierce competition and huge profit margins enabled the banks to offer increasingly generous offers to get new customers.  Yet falling profits and concerns about lending could trigger a domino effect in which one bank after another stops offering 0% rates.  It’s happened in the recent past; it could easily happen again.

Smart Credit Choices has added two new credit card calculators.  The first, a balance transfer calculator, enables consumers to estimate how much money they can save with 0% APR balance transfers.  On the average, we’ve found most consumers will save over $110 for every $1000 they transfer from a high rate credit card to a 0% credit card.  To find out how much you can save, try the balance transfer calculator.

The second calculator is designed to help consumers determine how much they can save with a gas credit card.  The gas savings calculator uses a 5% cashback rate, which is offered by leading gas credit cards, to provide an estimate of what you can save at the pump.  For more information, try our gas credit card calculator.

Many people who travelled abroad during the last ten years have recieved notice of a class action settlement in which credit card companies are required to refund international finance charges.  The class action suit stemmed from the fact that many credit card issuers did not properly or clearly disclose the existence of international transaction fees.

While some will benefit from the refund, the ultimate effect of the lawsuit is clearer disclosure in regard to international finance charges.  And, unfortunately, the credit card companies have made clear the fact that there is a 3% international transaction fee for all purchases abroad.  This is now the industry standard, with major issuers ranging from Chase to American Express all charging consumers a 3% international transaction fee.

Essentially, when using your credit card abroad, these fees are inescapable.  However, there are a few steps one can take to reduce these fees.  Perhaps the easiest is to book hotel and travel accomodations on U.S. based websites.  Another is to use a debit card whenever possible, as most debit cards do not charge 3% transaction fees.

SmartCreditChoices.com has reviewed over 75 credit card applications in search of a credit card with no international transaction fees.  Unfortunately, we have yet to discover one.  As soon as we discover a no transaction fee offer, we will post that information here.