LowCards.com Weekly Credit Card Update–May 31, 2013
Why Business Credit Card Holders Should Be Wary
A majority of small business owners know their personal and business finances are connected. If they apply for a small business loan, the bank will likely need their personal credit score. Miss a payment on a business credit card, and that transgression is probably reported on the owner’s personal credit profile. Credit card issuers can also go after personal assets in the case of default. So it would seem that business credit card accounts would be granted the same protections as are personal credit card holders. But that is not the case. Story by Patrick Clark for Bloomberg Businessweek.
Travelers: Protect Credit Cards and Bank Accounts from Scams
More credit, debit and ATM cards will be used on the road now that travel season has begun. That means it’s also the official start of the travel scam season. Here are some prevention and protection tips for travelers. Story by Tobie Stanger for Consumer Reports.
6 Ways Credit Cards Can be Good for Your Finances
Credit cards can be a good financial tool when people use that credit responsibly. There are a number of people who rarely carry a balance from one month to the next. Credit cards can actually benefit your finances in a few different ways, from helping you budget to earning rewards. Here are some ways a credit card can help you. Story by Michelle Sheiman for The Week.
Personal Finance Tips for Newlyweds
June is a popular month for weddings, and couples are joining together to form new families. This season of celebration is also the time to set the household budget and establish financial priorities. Many couples begin marriage with one or both partners in debt from student loans or credit cards. Here are some financial tips for newlyweds. Story by Bill Hardekopf for LowCards.com.
State AGs Object To Swipe-Fee Settlement With Visa, MasterCard
Several states are now joining major retailers and trade groups in objecting to a $7.25 billion class-action settlement regarding Visa and MasterCard’s transaction-processing fees. The attorneys general of California, Ohio, Arizona and six other states are arguing the pending deal could strip them of their rights to sue the payment networks in the future. Forty-eight states and the District of Columbia signed a brief in support of the objections. Retailers and trade groups argue the defendants conspired to set fees at arbitrarily high levels and have prevented them from lowering their costs by imposing rules that merchants must abide by to accept their cards. Story by Andrew Johnson for the Wall Street Journal.
Q&A on Chip-and-Pin Credit Cards
Chip-and-Pin credit cards—also known as EMV cards for Europay, MasterCard and Visa, the originators of the technology–are very popular in Europe, but not widely offered in the United States. Americans headed to Europe should know some basic information about these cards. Story by Becky Krystal for the Washington Post.
Citibank Tells American Airlines to Love Me or Leave Me
Citibank has offered AAdvantage-branded credit cards for American Airlines for 25 years. Citi is now asking American to decide whether it will stay with Citibank after American’s merger with US Airways. It told the U.S. Bankruptcy Court that that decision would have a big impact on American’s bankruptcy case because Citibank has a big potential claim against the airline. Story by Terry Maxon for the Dallas News.
Retailers Ready for Showdown Over Credit Card Fee Deal
Over 500 retailers, including Walmart, Costco, Sears, Target, TJX and Barnes & Noble, are objecting to the $7.25 billion antitrust settlement with credit card firms over swipe fees. They claim the deal is meaningless as long as card companies can fix fees charged retailers on each transaction. If the number of retailers dropping out of the deal makes up more than 25 percent of Visa’s and MasterCard’s total credit card volume, the card companies and major banks, including JP Morgan Chase, Citigroup and Bank of America have the option to walk away from the agreement. Story by Christie Smythe for Bloomberg.
LowCards.com Weekly Credit Card Rate Report
Based on the 1,000+ cards in the LowCards.com Complete Credit Card Index, the average advertised APR for credit cards is 14.27 percent, identical to last week. Six months ago, the average was 14.30 percent. One year ago, the average was 14.35 percent.