Credit Card Predictions for 2010

This is a guest post by Bill Hardekopf, CEO of LowCards.com.

The LowCards.com credit card prediction for 2010 is no surprise: cardholders will pay more for credit card loans. The cost of credit cards will continue to increase for consumers even though the major provisions of the CARD Act go into effect on February 22. Cardholders could see increases in both their interest rates and existing fees, as well as the introduction of new credit card fees.

“Credit card issuers have lost billions of dollars in credit card loans during this economic downturn. Now they are staring at these new provisions of the CARD Act that will limit their ability to make revenue. They are coming up with ways to generate additional revenue and it obviously comes at the expense of the cardholder,” says Bill Hardekopf, CEO of LowCards.com and author of The Credit Card Guidebook. “This eans that cardholders will continue to pay more for credit card loans. Cardholders who pay their balance in full every month may eventually see the end of ‘free’ credit card loans as we know them.”

Here are some 2010 predictions for the credit card industry:

• More Cards with Annual Fees

  According to the LowCards Complete Credit Card Index which tracks the rates and fees of 1000+ credit cards, only about 20% of the credit cards in the United States currently have an annual fee. But that number should increase in 2010. Some credit card issuers have already made the first moves to test annual fees on a small percentage of cardholders or offer cards with annual fees that build customer loyalty.

  Bank of America has been test marketing the effects of adding an annual fee to some of their existing customers. In October, the issuer notified a small percentage of customers that it is adding an annual fee of $29 to $99 on their accounts beginning in February 2010. Only a few customers (0.5%) received the notice but the outcry against this annual fee was loud, even from consumers who were not affected.

  Chase is using premium rewards to encourage customers to select or upgrade to cards with annual fees. They introduced the Sapphire Preferred card with an $85 annual fee and enhanced benefits and earning potential.

  “Bank of America and Chase are the first major issuers to test the traditionally unpopular annual fees. If other issuers think this is working, they will also add annual fees. Issuers use each other for market research,” says Hardekopf.

  American Express recently introduced the new Zync card with a twist for annual fees. It is a charge card aimed at people in their twenties. The annual fee is $25 per year and includes participation in Membership Rewards. It also offers packs of benefits that can be purchased for an additional $20 per pack per year. For example, enroll in the Go Pack and receive twice the Membership Rewards on airfare.

  “Issuers are trying to find ways to change the dynamic of the credit card market. They want to ‘mainstream’ annual fee cards and provide enough value to attract the consumers with good credit,” says Hardekopf. “Right now the majority of consumers do not want to pay an annual fee for their credit card. Consumers shouldn’t have a card with an annual fee for their credit card. Consumers shouldn’t have a card with an annual fee since 80% of the cards currently do not have one. Some issuers may force the annual fee, but others will find creative ways to encourage customers to accept a card with an annual fee.”

• Fixed Rate Cards Changed to Variable Rates

  In 2009, issuers switched many fixed rate cards to variable rates, making rate increases for everyone almost inevitable. Variable rates rise and fall with the prime rate. The rate is currently at 3.25%, the lowest level since the 1950’s. As the economy recovers, the rate is expected to rise. As it does, cardholders will see increases in APR.

  “Issuers will continue to move the remaining fixed rate cards to variable rates. Fixed rate cards are almost extinct, and if your card still has a fixed rate, expect it to be switched to a variable rate in the next month,” says Hardekopf. “Issuers are switching cards to a variable rate that have the prime rate as their base so that interest rate increases can be passed on to the cardholders even after interest rate provisions of the CARD Act take effect.”

• Increases in Interest Rates

  Even though the CARD Act limits the issuers’ ability to raise rates “at any time, for any reason,” expect issuers to find loopholes and create opportunities to raise rates. In addition, since the CARD Act limits interest rate hikes during the first year for cardholders, issuers are like to increase the advertised APR so the cardholder is locked in at a higher interest rate.

• Increase in Existing Fees

  The CARD Act does not limit fees, so expect issuers to increase the existing fees. An example is the balance transfer fee. A year ago, the industry standard for balance transfer fees was 3%, meaning if you transferred $10,000, you would incur a $300 balance transfer fee. But Bank of America increased their balance transfer fee to 4% in the summer of 2009 and a Chase increase to 5% takes effect this month. Expect other issuers to follow these increases. The same increases might occur with cash advance fees.

• Introduction of New Fees

  Issuers can also be expected to add new fees to credit cards. This is already being tested by several issuers.

  Firth Third Bancorp recently added a $19 inactivity fee if your card is unused for a twelve month period. In August of 2009, Citi informed some of its cardholders that they will be charged an annual fee of $30 to $90 unless they spend at least $2,400 per year. Some retail cards are adding a $1 monthly processing fee should you request a printed credit card statement each month.

  “Since fees represent such a cash cow for issuers, expect aggressive increases in existing fees as well as some brand new fees on your credit cards in 2010,” says Hardekopf.

• Decreased Rewards on Some Cards, Increased Rewards on Others

  Rewards sound generous in advertising for credit cards, but the points formula can be complicated and subject to change. Expect issuers to play musical chairs with rewards in 2010.

  Issuers will cut costs by reducing rewards for some cardholders, especially those who do not pay an annual fee and pay off their balance each month. Reduced rewards could come in several different forms: (a) a cutback in the payouts of cash back cards; (b) higher tiers required for consumers to receive the same level of rewards; or (c) more miles or points needed for that free airline trip or hotel stay.

  However, rewards will likely be used as an incentive for cardholders to accept a credit card with an annual fee. Bonus offers will be more generous for cardholders that pay the annual fee.

• Government Regulation

  The CARD Act goes into effect in February, but that may not be the end of government regulations. Credit card reform is a hot issue and some Senators and Representatives think that the CARD Act didn’t go far enough. For example, Congress may try to force issuers to lower the interchange rate they charge to merchants. If this passes, it will reduce an important source of revenue for issuers and consumers will likely have to pay more to make up the loss.

  “Government reform sounds good and scores political points for the lawmakers who push it, but it often results in higher payments for the people it is trying to help. If you place limits on issuers, they will find ways around them because they have to make money on these loans to stay in business. Credit card companies are not philanthropic organizations,” says Hardekopf.

- – - – - – - – - -

LowCards.com simplifies the confusion of shopping for credit cards. It is a free, independent website that helps consumers easily compare credit cards in a variety of categories such as lowest rates, rewards, rebates, balance transfers and lowest introductory rates. It also gives an unbiased ranking and review for each card. The LowCards.com Complete Credit Card Index is the most objective and comprehensive resource on the Internet which allows consumers to compare rates for all 1260 credit cards offered in this country. Created by Hampton & Associates, the company has been analyzing the credit card industry and supplying objective websites on various consumer expenses for eight years.

Pelosi Takes a Jab at President Obama

During a press conference following a meeting between House leaders and health care principals, Nancy Pelosi as well as other members publicly took note of the differences that must be resolved before we will see a final reform package signed in to law. When asked by a reporter whether C-SPAN cameras would be permitted to film the negotiations of the final bill between the House and Senate, Speaker Nancy Pelosi took a little jab at President Obama saying, “There are a number of things he was for on the campaign trail,” without addressing the reporter’s question.

And I am pretty much inclined to agree! We did hear a lot of great talk from Obama when he was lobbying us all to vote for him–and we more or less pulled through, hence his presidency status, but we are seeing a lot from home that we have been disappointed in. I remember distinctly the great amount of respect and pride I had for the country as a whole when it was announced late election night that he was the next president of the United States, but now that pride has dwindled a great deal, especially when we start hearing him make statements such as he “didn’t campaign on the public option,” which we know that he did. In fact, when visiting my partner’s parents one night before the election and while discussing why I would be voting for Barack Obama (and being berated the entire time I was there for it) I did bring up the point that I had faith in him to pull through with a public option. I mean, a Republican president brought us into two wars, how hard would it be for a Democratic president to ensure that every American has the right to health care?

Well, we all know the answer to that question.

Seriously, Don’t Vote

Don’t vote if you don’t care about the recession or the financial crisis or the recently passed $800 billion financial bailout. Don’t vote if you don’t care about health care or the education of your children. Don’t vote if you don’t care about women’s rights or human rights. Don’t vote if you just don’t care–About America, about yourself, about your children, about the rights we all depend on every day.

Where I live, the deadline to get your voter registration in is today. While you’re out running errands, stop by the post office and drop off your voter registration. What’s the worst that can happen, you’ll have a say in this election?

This is the most crucial election you will probably vote for you in your lifetime, don’t let your voice not be heard. If you aren’t registered to vote, go to Vote for Change and register right now. If you don’t know if you’re registered, you can find out if you are and even where your closest polling place is.

The Presidential & Vice Presidential Debates

The upcoming presidential election as Joe Biden stated in his closing statement at last night’s vice presidential debate, is the most important election you will vote in in your lifetime. Not since the 1930’s has American been in such need of real change–Not change “the maverick” and his running mate want to force feed American citizens which proves to be just more of the same, but real, fundamental change.

Whether you vote for Obama/Biden or McCain/Palin, it is crucial that you make an informed decision for who you will be voting for in November. It is important not to simply vote on party lines, but to become educated in what each of these nominees are saying and what they want to bring to America.

I would like you to take the time to watch or re-watch the presidential and vice presidential debates. No one can tell you what the candidates will be up to come January if they are elected other than the candidates themselves.

The presidential debate: Barack Obama vs. John McCain

The vice presidential debate: Joe Biden vs. Sarah Palin:

If you are not registered to vote or don’t know if you are registered to vote, go to Vote for Change and find out and if you’re not, download the voter registration form and make sure it is postmarked by October 6th.

Lynne Spears’ Reaction to Bristol Palin’s Pregnancy

Teen pregnancies are popping up all over the place, but perhaps the two most notable of the year were 17 year old Jamie Lynn Spears’ pregnancy and birth of daughter Maddie and 17 years old Bristol Palin, daughter of Republican vice presidential candidate Sarah Palin. But there is one, major difference between the two–Lynne Spears believes that Jamie Lynn was crucified by the public for her pregnancy while Bristol’s pregnancy is being celebrated while her mother, Sarah Palin, is continuously being congratulated and applauded.

Lynne Spears says:

“Every woman in the world has applauded her strength and her convictions and poor little old Jamie Lynn, you saw how she was crucified – everybody did, firsthand,” Lynne said. “I just feel like it’s been a very hypocritical situation.”

Lynne also speaks about how the public has accused Jamie Lynn of glamorizing teen pregnancy, which she says isn’t the case.

“We don’t want this said, ’cause this would be glamorizing, but I will tell you a secret: her baby does sleep all night,” Lynne explained. “What do you think about those apples?

“Maddie is the best baby I have ever seen,” Lynne added. “She is like a little angel. She’s so contented. She laughs and she coos and ahead of herself with her stages. But of course we can’t tell that because then we would just glamorize it more.”

You Said It: Every American Deserves the Right to Marry

An email was received regarding our post on the recent victory for the LGBT community in California, saying that denying lesbians, gay, bisexual and transgendered people the right to marry was unconstitutional.

In Every American Deserves the Right to Marry, a news article of the Million for Marriage petition put together by the Human Rights Campaign, received some negative feedback that I feel the need to address, especially considering the woman who sent this email did not leave her correct email address in order for me to reply personally and so, our ‘letter to the editor’ section, You Said It was born!

This, in conjunction with our first edition of You Said It, is an open call for letters from you, the readers, to express your positive and negative thoughts on anything that is posted or discussed on Woman Tribune.

Name: Denise
Subject: Protest!

Wow. You just lost me as a subscriber over your article about everyone having the right to be married in America. I can’t be a supporter of gay marriage or support anyone who does. I think we’re missing the bigger picture here. Yeah, it’s great that we have freedom in America but we’re still supposed to abide by God’s laws. He’s probably in heaven shuddering over what a mess this world is making of his intention for marriage. The Bible clearly states that “man” and “woman” should unite. Nothing else.

Denise,

I am very sorry that you feel the need to email me and express your outrage over the recent article on Million For Marriage. I am even more sorry that you are insanely close-minded and are not willing to give every American the basic right to marry the person whom they love and want to spend their lives with.

The aim I have always had for Woman Tribune, as a blog and as a community, is that it appeals to all women and that includes lesbian, bisexual and transgendered women; all of whom exist in America. If your god was so unhappy about this, why would he make such people to begin with?

Marriage, as it exists now, has changed a bit since the times of dowries and marrying a person whom your parents chose for you. Marriage today has a lot of other factors to take into consideration such as your life partner being in a hospital and you not being able to know about their condition or see them because you are not “family.” The same applies for funeral arrangements, tax purposes, health care benefits, and before you go getting your panties in a bunch over these facts–A man and a woman walk into marriage with the same intentions in mind.

Furthermore, I am not sorry in the least to have lost you, or anyone for that matter, as a subscriber. Woman Tribune is intended for all women and all women should benefit from the articles that are posted; however, I for one will never condemn a woman or tell a woman that she is wrong for simply loving and wanting to marry another woman.

Your god is most likely shuddering in whatever heaven you believe exists by the true hypocrisy that is coursing through the veins of his so-called followers; those who are Sunday believers or are religious when it is convenient as well as those who hold up a book that was written and can be closely compared to the telephone game–What once were “facts” passed down again and again and suddenly what was written may not even closely resemble the history. Thank you for your email, for you have just given me the satisfaction a million times over for simply expressing not only my views, but the views of so many other Americans today in posting that article.

Sincerely,
–Holly

Every American Deserves the Right to Marry

America came one step closer to achieving equal rights for all people when California declared that refusing gay, lesbian, bisexual and transgendered people the right to marry was unconstitutional. Since this remarkable day in LGBT history, many couples have been married and have shared in the experience of vowing to love and to cherish each other in front of their friends and families and for the first time in California, their marriage will be legal in the eyes of the law.

With every day that we celebrate this victory for the lesbian, gay, bisexual and transgendered couples, anti-LGBT have been working to deny benefits to LGBT couples on both state and federal levels. In order to make sure that ignorance and hate doesn’t win this battle over true equality for all Americans, the Human Rights Campaign has set up a petition with the hope of getting over 1 million names from people who believe in marriage equality for everyone.

The petition states:

“I do support the right of every American to marry, including gay, lesbian, bisexual and transgender couples. I believe that marriage and other civil rights protections are essential to making all families safer and more secure.

By signing this petition, I agree to support efforts to make marriage equality a reality in our country, and to oppose any attempts to discriminate against LGBT couples and individuals.”

With 988,902 signatures so far, HRC needs more people to stand up for marriage equality. Sign the petition here.

Season 2 of Army Wives

Season 2 of the Lifetime show Army Wives premiers June 8 at 10pm!

“The critically acclaimed drama series details the lives of five women trying to stay connected to their military husbands while adapting to turbulent life on a strict US Army post”

I don’t watch television personally, but a lot of other people out there do, so what do you think of Army Wives? Have you ever seen it? Are you looking forward to the second season?

Our New Category

When I had thought up Woman Tribune with a friend of mine, I had many ideas on what I would write about, what I would cover and what I wouldn’t touch. As most people know, I run another website, a political feminist site where not only can I be uncensored, by now it’s pretty much expected of me. But what that site does not represent is just how pro-woman I am. While yes, I am a feminist and while yes, I do write about gender equality, equal pay, sexism and the objectifying of women, a lot of women who do their recreational reading online already had their dose of cynical and disheartening news along with their morning coffee. I did not want this site to be like that site.

So what I have done here thus far is try my best to offer recreational reading for the women who are sick and tired of hearing about politics; of hearing about women being objectified in the media and how women are still making a high percentage less than their male colleagues. While I stand firm on the fact that those are important issues, they by no means have to be involved in every part of your day; it’s okay to take a little break and indulge yourself in some frivolous and just plain upbeat entertainment.

While that covers why I chose to make this website a little more mainstream, I realized that I was missing a big category that all women talk about with each other and something that a lot of people won’t always publish on a website in fear of offending others. Sex and the City is a prime example that pure and honest sex talk is what people crave.

Well we’re stripping the fear away right now and here I am to introduce our brand new category–sex. In this category, we will be covering love, sex, relations, sex advice, sex toy reviews and much more!

If you have any ideas for posts or would like to see something here, let me know in the comments!

Colorado and Missouri Wage War on Women’s Rights

Television, radio and newspapers; wherever you get your news information from, all people seem to be able to talk about are the 2008 election. This upcoming election is very important, especially considering the war on women’s rights that is only getting more heated and more severe as the election looms closer; especially with the panel of Republicans that have been assembled.

According to US News and World Report, 11 different abortion bans have been introduced to states legislatures just in the past year. With that and with the upcoming election, anti-abortion activists are introducing a variety of ballot initiatives in hopes of abolishing a woman’s right to have control over her own body and reproductive rights.

In the state of Missouri, The Elliot Group, an anti-abortion group which is based out of Illinois, is attempting to introduce a ballot entitled Prevention of Coerced and Unsafe Abortion Act; nice name, huh? Because women are not able to make informed decisions about their bodies and uterus without being coerced.

If The Elliot Group is successful in receiving their mandatory 90,000 signatures to a petition to instate this initiative, it will appear on the 2008 voter’s ballot and the state of Missouri will face an initiative which would require doctors to review abortion-related “medical literature” which will undoubtedly consist of myths made up and enforced by anti-choice activists and literature that is commonly used in crisis pregnancy centers to scare or enforce the so-called immorality of the act of abortion. The doctor will also be required to investigate the background and lifestyle of women seeking abortions as well as prove that it was medically necessary to perform the abortion to save the mother from death or disability that would have occurred if the abortion had not been performed. Furthermore, they take the extra step to insult women across the country by saying that abortion causes long-term physical, psychological and emotional problems; none of which can be scientifically proven. This legislature would also provide absolutely no exception whatsoever for rape and incest victims.

Colorado for Equal Rights, whose name itself is laughable, is working towards adding a ballot initiative to the November 2008 ballot that will amend the state constitution to define a fertilized egg as a person.

Ah yes, fertilized egg–person; omelet–living, breathing, talking, functioning, college-bound human being! Yes, I can definitely see how they go hand in hand.

If this initiative is passed, it will then threaten the use of emergency contraceptives used by literally millions of women across the country. Voters in Colorado will have that to think about if Colorado for Equal Rights gains their needed 76,000 signatures in order to place this initiative on the 2008 ballot.

So think hard women voters of Missouri and Colorado. Even if you do not live in those two states, there are a number of different bans on abortion in a total of 15 different states.