1.)  0% APR for 1 Year:  Last year, 0% rates lasting for 1 year were commonplace.  Today, most credit cards are only offering 0% rates that last for 6 months.  To get the best deal, be sure to seek out one of the few remaining 0% APR credit cards that continues to offer a 0% rate for a full year.

2.)  No Annual Fee Rewards:  By this time next year, most rewards credit cards will probably come with annual fees.  For the time being, however, many rewards credit cards continue to charge no annual fees.  While the number of these offers is dwindling, they are still there.  Currently, the best rewards credit cards offer 2% cash back.

3.)  Seek Out Low Interest Rates:  In the past, long term interest rates weren’t as important as they were today because consumers could count on 0% balance transfers to help minimize interest expenses.  Today, the credit card you choose to use may be the credit card you are stuck with until you’ve paid off your balance in full.  Thus, attention should be paid to credit cards offering low rates starting at 11.99% over those with low rates starting in the mid-teens, even if that means passing up on a rewards program.

4.)  Stick with a Good Credit Card Company:  If you’ve been hearing lots of negative news about a credit card company, don’t bring them your business.  Choosing a credit card company that respects its customers can prevent a lot of headaches.

The degree to which credit card companies pursue annual fees will depend on a number of factors.  If Bank of America’s annual fees cause an uproar from credit card customers, some companies may hold off on passing annual fees.  However, consumers have been in an uproar over increased interest rates all year long, and that didn’t stop Citibank from raising interest rates to 29.99% on many customers a mere three weeks ago.

Rewards credit cards that do not carry annual fees will likely be the first type of credit cards to see fees added.  Many consumers will be willing to pay these fees in exchange for cashback, airline miles, or points that can be redeemed for various merchandise, as rewards programs are quite popular among savvy credit card users.  Already, most airline specific credit cards carry annual fees of $50 or more, and many American Express cards carry annual fees that can be as high as $400.  However, the majority of credit card users gain little from rewards programs and would likely opt out of any annual fee if given the choice. 

Unfortunately, the new credit card laws do not address annual fees, and consumers will not have the option to opt out of annual fees without closing their accounts.  This, in turn, can hurt credit scores which, to make matters worse, can make it more difficult to obtain a new credit card.

No annual fee credit cards will likely remain available to consumers who use bare-bones, no frills credit cards that do not carry rewards programs.  However, consumers who don’t have the best credit may be charged annual fees to use those cards as well.  The final implementation of new credit card laws, as well as the condition of the economy, will play huge roles in the future of annual fees.  But based on the actions of credit card companies this year, it is likely that no annual fee credit cards will become the exception, rather than the rule.

Let me start with a question:  what’s the difference between a 0% APR for 12 months and a 0% APR for up to 12 months.  In many instances, its six months.  Without naming names, some companies advertise a 0% APR for 12 months, but state in the fine print that the rate may only last for 6 months, based on a review of your credit.  In the past, a majority of people would have qualified for a 0% APR lasting a full year.  Today, credit card companies are advertising 0% rates for a full year, but only granting these rates to consumers with the best credit.  The rest of us get shorter 0% rates and often don’t find out until its much too late.

Now, people with excellent credit (780 and higher credit scores) don’t have to worry.  They’ll get a 0% APR for a full year.  However, when many of us apply for a 0% credit card, finding one that only offers one introductory period is the key to locking in a low rate for an extended period of time.

The same advertising technique is also used with long term interest rates.  And the difference here can be quite substantial.  One popular offer currently advertises long term interest rates as low as 13.24%.  However, it is possible to be approved for this card and offered a rate in excess of 22%!  Thus, as with introductory interest rates, long term interest rates that include the verbiage “as low as” should be looked at with skepticism.  Unless you have superior credit, avoid “as low as” and “up to” offers and opt for credit cards that give applicants the rates they advertise.

The most important factor to look at is the long term interest rate.  Most credit card companies offer interest rates that are “as low as x.99%.”  Credit cards that advertise rates in this manner offer either a range or three tiers of possible interest rates.  For example, one credit card currently offering rates as low as 13.24% only provides that rate to customers with excellent credit.  Customers with good credit are charged a rate of 18.24%, and customers who meet approval criteria, but don’t qualify for the first two rates are offered a 23.24% interest rate.  Unfortunately, credit card companies do not reveal what your long term rate will be until after you have completed the application and it has been reviewed.  Thus, be sure to check your long term rate before you activate your card.  If it is too high, apply for a credit card that may provide a lower interest rate.

The second important factor to look for when seeking the best credit cards is the language surrounding the 0% APR offer.  For example, some credit cards offer 0% interest rates for up to 12 months, but many only grant these rates for as little as three to six months.  Again, you will not find out how long your 0% rate lasts until after your card arrives in the mail, but usually, only the people with great credit get the longest 0% rates.

To avoid unpleasant surprises, it is always wise to wait until your credit card arrives in the mail to transfer balances, as many credit cards offer online balance transfers for up to 12 months, but may approve you, transfer your balances, and then offer you a 0% APR for only six months.

Ultimately, finding the best credit cards takes some detective work.  However, by paying attention to the factors noted above, you’ll be one step ahead of the game.

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.

For the time being, these credit cards also come with no annual fees and relatively low long term interest rates, especially compared to the jacked up interest rates many of us have been forced to pay by our current credit card companies.

In general, consumers with excellent credit can easily get a 0% APR on new purchases or balance transfers for 12 months, while those with good credit will likely be able to get 0% rates for six to twelve months, depending on the credit card company.

Consumers with average or below average credit are likely to find much less appealing credit card offers.  Many companies have stopped issuing so called subprime credit cards, and those that do often charge hefty fees, nosebleed interest rates or require security deposits.  However, credit cards that require security deposits provide consumers with an opportunity to rebuild credit without paying $200 or more in annual fees, a common price charged by subprime lenders.

Overall, positive signs abound in the credit card industry.  After a rough year, credit card offers are improving and consumers forced to pay higher interest rates may now find more ways to get away from the credit card companies that shunned them.

For more information or to apply online, you can review credit card applications here.

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.

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.

Most of the consumers who have left comments on the matter have had no luck dealing with customer service.  However, the post below is from a visitor who was able to negotiate a lower monthly payment, although he was forced to accept a substantial interest rate increase.  Here is his story:

“Like many others, a week ago I got the rude surprise that Chase was raising the payment on my two cards from 2% to 5% of the balance. I had earlier transferred high interest cards to these life-of-the-loan 4.99% offers. I always paid on time–in fact, electronically a week prior to the due date to be sure I retained the excellent rate. I also paid above the minimums. With the new requirements, however, my total payments would now go from roughly $500 per month to $1250! An arbitrary increase of $750 per month was simply not an option for me.

I called and requested to opt out, close the cards, and keep the existing terms. I was told this was not possible but that I was welcome to pay off the cards in full or accept the new payment terms. Since I pointed out I didn’t have the nearly $25,000 required to do so and would have to fall into default on the cards if the new monthly terms took effect, I got transferred to another person.

This second customer service rep suggested I transfer the balances to a low interest card with another bank. I informed her that this was simply not an option for me, as I didn’t have the credit available. When I once again mentioned the inevitability of defaulting if the new payment terms took effect, she transferred me to yet another person, who took down details of my monthly income and expenses.

I was then offered to have the accounts closed and have a 5-year payout on the balance at 15.99% interest–more than triple the current rate. I was so shell-shocked that I met this with stunned silence, after which she offered me a 5-year 12% deal. Supposedly it’s fixed and can never change. Then again, it seems I’ve heard that before. But I wound up taking them up on this rate the next day, though I was required to make an immediate payment on each card to initiate the new payment schedule, despite the fact that I’d just had my normal payments on both cards credited to my accounts two days earlier.

Needless to say, I will never, ever do business with Chase again. I intend to pay off both cards in under 4 years–sooner if possible, as I will pay above the monthly required payments like I usually do. But once that happens, I will never give them another penny. I love the fact that they say people like me are not paying down quick enough, but they are more than happy to raise the rate and thereby prolong the debt payoff. Chase’s actions–especially after receiving the bailout money–are simply deplorable.”

Unfortunately, this is the first news of someone getting a deal that’s been posted on Smart Credit Choices.  Hopefully, others will have better luck.

However, as the credit crunch continues to drag on, its becoming more difficult to buy my way out of this Google penalty.

I sent in my monthly reconsideration request a few days ago and have literally done everything I can to remove the problem links a blackhat SEO company used to get my site rankings.  I even posted on the sites that they are spammers and causing people to get penalized.  Guess what?  None of them took down the links, as I don’t think honest or competent people are running these sites.

Nevertheless, I did my duty as a good web citizen and reported the sites that led to my penalty – even though my links are still there.  This will probably do more harm than good, but I figured it was the right thing to do.

Hopefully, I’ll be back to blogging soon.   Until then, if you happen to stumble on this page and know how to help, please shoot me an email.