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.

A number of visitors have been justifiably angry at Chase for raising their monthly minimum payment requirements on fixed for life balances from 2% of the balance owed to 5% of the balance owed.  For many, the new payment required is mortgage sized and, in some cases, more than $1,000 a month.

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.

I haven’t really had the motivation to post recentlly, despite all the credit card news, as it seems hopeless to blog about important news on credit cards when I know no one will find my writing in the search engines.  I contacted a very well respected search engine link expert named Eric Ward and hope to have the cash to hire him soon.

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.