Credit Card Update April 15

April 15, 2011, Written By sitemanager

JP MORGAN MIGHT BEAT STREET, HELPED BY CREDIT CARDS
JPMorgan Chase is expected to post an increase in first-quarter profit of
more than 50 percent on Wednesday, as the bank weathers a slowdown in
trading and fewer borrowers default on credit card loans. A big driver for
the improved performance is expected to be JPMorgan’s credit card business,
which lost $303 million in the first quarter of 2010, but seems to be
turning around. In the fourth quarter, it earned $1.3 billion. Credit card
lending appears to be improving and it was the bank’s second most profitable
unit in the fourth quarter. Financial regulatory reform may crimp future
profits in this business.

Story by Clare Baldwin for Reuters

http://news.yahoo.com/s/nm/20110413/ts_nm/us_jpmorgan_1

AMEX DIALS UP MOBILE PAY PLANS
American Express is pumping money and technology into a fledgling company
that wants consumers to pay for purchases by using their mobile-phone
number. It is expected to announce on Wednesday that it is the lead investor
in a $19 million financing for Payfone Inc., a New York start-up that also
is backed by the venture-capital arms of Verizon Communications Inc. and
Research In Motion Ltd. AmEx also is seeking to attract younger customers,
who ultimately are expected to be more comfortable paying for products with
their phones rather than swiping a credit card.

Story by Robin Sidel for the Wall Street Journal

http://online.wsj.com/article/SB10001424052748704336504576259192449111266.html?mod=googlenews_wsj

CHASE HOPES TO REINSTATE DEBIT CARD REWARDS PLAN
Bank customers could find debit cards less rewarding if the government
follows through on a pledge to cap the swipe fees that banks earn. Yet some
big banks are prepared to reinstate their reward programs if the government
backs off from that plan. “Our hope is that the proposal is put on hold,”
said Todd Maclin, chief executive officer of commercial banking at JPMorgan
Chase & Co. in New York. “If they do that, we will reinstate all the rewards
and benefits that we had in place.”

Story by Russ Wiles for the Arizona Republic

http://www.azcentral.com/arizonarepublic/business/articles/2011/04/10/20110410chase-hopes-reinstate-debit-card-rewards.html#ixzz1JOyvCsaG

MANAGING MONEY DURING DIFFERENT STAGES OF LIFE
April is tax time as well as National Financial Literacy Month. Two good
reasons to look at where you have been and where you are going with your
finances. Unlike weeds or government debt, money does not grow on its own.
Building financial security through all stages of life requires a plan and
plenty of attention. Here are some tips for managing money at different
stages of life.

https://www.lowcards.com/blog/managing-money-during-different-stages-of-life-2121/

DON’T BANK ON LOAN MODIFICATIONS OR DEBT AID THAT CAN’T BE PROMISED
With millions of people facing foreclosure, there are potential perils of
seeking assistance from businesses that claim they can ease your financial
obligations. Some may indeed be legit. But many others will be happy to
accept your money and do little if anything to get you off the hook. Any
business can say it will help with a loan modification or reduce your debt,
but all it can actually do is serve as an intermediary. You can apply for
assistance from your mortgage lender yourself, just as you can try to
negotiate new terms with creditors.

Story by David Lazarus for the Los Angeles Times

http://www.latimes.com/business/la-fi-lazarus-20110412,0,1228879.column?page=1&track=rss

JP MORGAN PUSHING CHIP CARDS TO WEALTHIEST CLIENTS IN RACE WITH WELLS FARGO
JP Morgan said it plans to win the race against rival Wells Fargo to bring
microchip-embedded credit cards to the wealthiest consumers. Both banks are
courting U.S. clients who have encountered problems using their cards while
traveling abroad. The chip cards may boost transaction revenue and help
JPMorgan lure affluent customers from rivals such as American Express. Wells
Fargo announced this week that it planned to be the first major U.S. bank to
deploy Visa credit cards with EMV-chip technology. The San Francisco-based
lender plans to invite 15,000 customers to use the cards, beginning in the
middle of this year. The pilot program will include frequent travelers such
as private-banking clients and college students, the company said. JPMorgan
will first offer the card exclusively to affluent customers. Clients with a
JPMorgan Palladium credit card, which has a $595 annual fee, will receive a
chip card by June, the company said.

Story by Andrew Frye for Bloomberg

http://www.bloomberg.com/news/2011-04-14/jpmorgan-pushes-chip-cards-to-wealthy-in-race-with-wells-fargo.html

BURDEN OF STUDENT LOANS ON GRADUATES GROWS
Student debt outpaced credit card debt for the first time last year and is
likely to top a trillion dollars this year as more students go to college
and a growing share borrow money to do so. While many economists say student
debt should be seen in a more favorable light, the rising loan bills
nevertheless mean that many graduates will be paying them for a longer time.
The mountain of debt is likely to grow more quickly with the coming round of
budget-slashing. Pell grants for low-income students are expected to be cut
and tuition at public universities will probably increase as states with
pinched budgets cut back on the money they give to colleges.

Story by Tamar Lewin for the New York Times

http://www.nytimes.com/2011/04/12/education/12college.html?_r=1

HOW TO WRECK YOUR CREDIT SCORE
Don’t underestimate the harm that even one missed mortgage payment can do to
your credit score–especially if you had good credit to begin with. The
severe consequences underscore that you shouldn’t shrug off even an
accidentally missed payment. Instead, you should pay it and call the lender
right away, begging for forgiveness before it mars your credit record. Fair
Isaac, the creator of the FICO score, recently spelled out the severe
consequences to the credit scores of borrowers who are 30 days late on their
mortgages–as well as the long-term impact of failing to repay the whole
mortgage.

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The information contained within this article was accurate as of April 15, 2011. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.