American Express Tops Credit Card Satisfaction Survey for Second Straight Year; Discover Ranked Second

American Express ranked first in overall credit card customer satisfaction for a second straight year, according to J.D. Power survey results released yesterday, with Discover Card holders being the second happiest customers. The survey asked over 7,000 credit card customers to rate their card company or companies in 5 areas: interaction; billing and payment process; fees and rates; reward programs; and benefits and services. American Express received a score of 783 out of a possible 1000, and Discover had a score of 751.

Rounding out the top eight, in order, with point totals: National City (721), Chase (719), U.S. Bank (716), WaMu (712), Citi (710), and Wells Fargo (709).

Other major issuers did not rank so well. HSBC (667 points), Capital One (678), Target National Bank (issuer of the Target Visa, 682 points), GE Money (683) and Bank of America (692) significantly lagged the competition.

The survey noted that just over 70% of credit card holders have reward programs associated with their cards, and the level of satisfaction with a card is dramatically higher when a reward such as cash back, travel, etc. has actually been awarded to the customer.

Getting a High Limit Credit Card

Getting a credit card with a high credit limit is not a very straightforward process. When you apply for a credit card, whether online, by phone or through the mail, the credit card company first determines if you are approved and then determines your credit limit. Unfortunately, no credit card company can provide information on what your limit will be until your application has been processed. However, there are a few steps you can take to increase your odds of getting the amount of credit your desire.

First, apply for a credit card that advertises high lines of credit. Some credit card companies only offer lines of credit up to $10,000. Others offer limits of $25,000 or more. If the credit limit you are given is a major factor in your decision, your chances of getting the credit line you desire will be increased if you apply for cards that advertise higher limits.

Once you submit your credit card application, it can take anywhere from a few business days to a few business weeks to receive your credit card and learn of your credit limit. Because of this, there are a few steps you can take to make sure you get the credit you desire in a timely fashion.

If simply getting credit is your main concern, applying for multiple credit cards may be the best option. You may not get the credit limit you want on a single credit card, but your combined limit may meet your needs. Additionally, applying for multiple cards expedite the process of getting your credit card in hand.

Another benefit of applying for multiple credit cards is the option of choice. You may receive drastically different credit limits, interest rates, and 0% introductory offers from different issuers. If you apply for multiple credit cards, you can pick the card or card you want to use armed with the specific information you need to save you the most money on interest while providing you with the credit limit you desire.

Prepaid Cards

Have you ever used a credit card? If you have, there may have been several different outcomes. One possibility was that you were very responsible. You used the card for all of your expenses so that you could get the rewards your card offered. You never bought anything you didn't really need because you knew whether you could afford it or not. Every month you get a bill and you pay it in full. You reap the benefits of your reward program month in and month out because by paying off your balance, you owe no interest. You've built your credit history up to an exceptional rating of 'excellent' and feel confident that you could get a loan whenever you need it.

Another possible response has a very different outcome. You too use your credit card for everything because you want the cash back or rewards points. One huge difference is that you use your card for everything including things you don't need which often are things you can't afford. Whatever you see that you want, you buy. You charge to your card left and right just thinking about all the rewards you will get. Come bill time, you realize you don't have nearly enough to pay your bill and end up just paying the minimum. The money you don't pay then begins to collect interest and the amount you owe grows faster than you can handle. Your debt skyrockets and your credit score drops fast. You've gotten yourself into a huge mess.

If you are the first person, I would like to congratulate you. You know how to use credit cards to get the most benefit for you. If you are the latter person, you do need some help. Until you get your credit history up, you really can't have a card. This can cause a lot of problems for some people. It will probably keep you from ever buying things on the internet because you don't have a credit card, and it forces you to carry cash all the time, even in large amounts, which isn't always safe.

If this is you, there is a solution. You can get a prepaid card. With a prepaid card, you can still purchase over the internet and use it just like a credit card at shopping malls and restaurants. Instead of giving you credit to spend, you load your own money on the card. This way you can never spend more money than you have. If you have $100 on your card and go to spend $200, the transaction will not go through. Also, anyone can get a prepaid card. You don't have to worry about applying and getting denied because of bad credit.

In order to fix your credit and get rid of debt, you need to learn how to manage your money. A prepaid card can help. It will keep you from spending too much and help you keep track of what you are spending your money on. You may find that a credit card isn't even necessary in your life and a prepaid card can fill the void a lack of credit card leaves.

Smart ways to use credit cards

Imagine if someone suddenly took away all of your plastic. Credit cards are so much more convenient and safer than carrying cash, it's hard to imagine life without them. As the credit card industry has evolved, new products and features make using credit cards even more appealing -- if you know how to play the game.

Here are four ways to get the most out of your plastic.

1. Build a good credit rating.
Pay your credit card bills on time, stay well within your credit limits and be careful not to take on too much debt with too many cards and you'll begin to establish an excellent record on your credit reports from all three credit reporting agencies. That information, in turn, is used to calculate your credit score -- a number that tells potential lenders how likely you are to repay your debt. Use your cards to boost your credit score and you'll not only qualify for zero and low-interest rates on competing cards but you may also be eligible for a better deal on your mortgage and auto insurance. Check out "3 steps to boost your credit score."

2. Protect your big purchases.
If you buy something that's damaged or defective and you used a credit card, you have the right to withhold payment under the Fair Credit Billing Act. You do need to make a good-faith effort to solve the dispute with the merchant. But if you can't, your credit company will investigate the problem. If after contacting the merchant you are unable to settle and the card company sides with you, the charge won't be added to your bill. Purchases made with debit cards are not covered under the Fair Credit Billing Act. In addition, some cards offer extended warranties and other protections for large purchases made on the card. Check with your credit card company.

3. Make online shopping safer.
The Fair Credit Billing Act also covers online purchases, making a credit card the best way to pay in cyberspace. If you're worried about security, many credit card companies offer a one-time use account number for large online purchases that keeps your real account number off of the Web.

4. Use your card for a low-interest loan.
Robert Manning, research professor of consumer finance at the Rochester Institute of Technology and author of "Credit Card Nation," once used a low interest rate credit card to buy a car. The fixed-rate on the card was better than what banks were offering on auto loans and he didn't have any of the application hassles. (Of course, this only makes sense if you qualify for a very low interest card and a very high credit limit -- and you can afford to pay the big balance off quickly.) Manning even suggests young people strapped for cash use a low-interest card to fund their 401(k)s in some instances. "Say you borrow $4,000 to contribute to your 401(k)," explains Manning. "Maybe your company makes a 50-percent match. Last year the stock market went up 10 percent. The free money from the match and the stock gains will far outweigh the interest on the 'loan' you made to yourself if you pay off the card responsibly."

With the ongoing credit crunch constantly burning holes in our cash holders, the cash borrowing deals we are currently being offered are not what they

With the ongoing credit crunch constantly burning holes in our cash holders, the cash borrowing deals we are currently being offered are not what they used to be. This is due to the lenders tightening their criteria for borrowing money with the deals we are used to now becoming a thing of the past.

First it was the 100% mortgage and now it looks to be the 0% interest on credit cards which could now be coming to an end. These deals usually enable us to survive comfortably financially, but with things changing, our options are being reduced more and more making it harder to prolong our financial stability.

With our options limiting and the need for cash at a high, we are being cornered into making pressured decisions with no thought. Subsequently this is landing us into more trouble.

Doorstep lenders have seen an increase of 34% in loans taken out for the 1st half of the year. This is due to people being refused for loans elsewhere, also, the fact that people need to take out additional loans to combat the rising interest rates.

The largest rise this year came from a leading high street lender who increased their interest rates by 5% resulting in a total interest rate of 12.9%.

People who are taking out additional loans to pay off the increased rates are now also turning to car finance companies who have seen a huge increase in business this year.

If you are looking to borrow money you need to source quotes online. This will help you save as much money as possible in this financial harvest.

Credit Card Companies Are Playing Dirty This Summer

Credit card companies have imposed 'astonishing' interest rate rises as families head for their holidays.

It's a very dirty card to play, but the big companies know that with the state of the economy at the moment many British families will be funding some, if not most if their holiday with a credit card.

Brits are expected to spend £22billion on credit cards during this summer. With 13.8million customers regularly failing to pay off their balances each month, the rate increases will bring a cash bonanza for the card companies.

Not only have credit cards increased the APR but there are extra charges for using your credit and debit cards abroad along with withdrawing cash from an ATM.

Despite the fact that the Bank of England has dropped the base rate to 5%, some credit cards have hiked the APR to a staggering 34.9%. That's effectively double the original amount some customers were expecting to pay. Customers with outstanding balances may well find this unmanageable.

With APR's not being shown on statements, just the monthly rate which can be confusing in its self, customers may not be unaware of the amount they are now being charged.

Research by the UK's largest online comparison site, shows that 31 per cent of cardholders have had their APR raised in the past year. Egg, Capital One, Lloyds-TSB and Barclaycard have all raised rates.

The biggest shock will come to those coming off an introductory 0% deal and expecting to pay 15.9% you may now find that you will actually be paying an outrages 27.9%

The Hidden Costs of Credit Card Debt

In order to be able to care for your finances well, it is very important to learn the facts about how people get into and out of credit card debt. This will enable you to better prevent credit card debt from stacking up around you.

Credit Card Statistics: The Facts

The facts about credit cards and credit card debt should have you seriously considering charging just any old purchase you make. Statistics show that the average card has a balance of $1,000, meaning that it would take twenty-two years to pay off that debt while making minimum two percent monthly payments. As those twenty-two years pass, interest charges will add $2,300 onto the original $1,000. That means that you would end up paying more in interest charges than you did on the purchase itself.

A typical American family is currently about $8,400 in debt. Even an entire lifetime of minimum monthly payments of two percent will not be enough time to pay off that amount of debt once you tack on the interest charges that will be accrued. You should keep these statistics in mind before you rush to slide your charge card at the store.

You will be in a better position to prevent yourself from getting overwhelmed with credit card debt if you know the facts about how credit card debt happens to people. Unfortunately, it is all too easy to get stuck in debt. For that reason, it is extremely important to try to use the facts about credit cards to help you manage impulsive spending tendencies.

Another fact about credit card debt is that you should pay more than your minimum monthly payment if you plan on really staying out of dangerously high levels of credit card debt. Only make purchases that you know you will be able to pay for in their entirety within a couple of months.

Credit card debt becomes especially serious when you realize that many Americans are in the habit of spending more money with their credit cards than they earn in an entire year.

By investing just a little bit time in learning the preventative steps that you should take to keep yourself debt free, you will save yourself from experiencing many of the problems associated with credit card debt and enable yourself to make wise choices financially.

The Basics of Earning Credit Card Reward Points

Credit card companies offered many incentives and rewards for their cardholders. These incentives and rewards are very effective in enticing their customers to use their credit cards in their everyday purchases as well as big-ticket items.

Different credit cards have different ways of providing rewards and benefits to their users. Some of the common rewards include:

1. Air miles
2. Discount for grocery purchases, petrol, fine dining, etc
3. Priority alert or admission to special events
4. Free movie tickets
5. Cash rebate

Each time you make a purchase with your credit card, you will earned and accumulate reward points. The more expensive the item you purchase, the more points you earned. To check how much point you have accumulated, just check your monthly card statement. Alternatively, you can call up the customer service hotline or go online to check if they are available.

Most likely you will also have received a catalog of rewards from your credit card company. This catalog will provide details on how many points are needed for each type of reward and how you can redeem them.

Take note that the reward points have expiry date. The validity of the points usually lasts for one year only but it differs from card to card. If you did not accumulate enough points to redeem any reward before the expiry date, these points will be forfeited and you have to start all over again.

In the case of special reward like air ticket, you cannot redeem right out of the box. Instead, you have to convert your points to the corresponding amount of air miles and the exchange rate may not be one to one. This means that 1000 reward points does not necessary mean you can exchange for 1000 air miles. The exchange rate is determined by the credit card companies and airline involved and there is no standard exchange rate.

With the exception of special rewards like air miles, most of the rewards can be redeem quite easily. Most of the time it involves just filling up a reward redemption form and fax or mail it to the credit card company. You can also call up the customer service hotline to get your request process. If you have Internet access, you can also do the redemption online if the service is available.

In some cases, you can even redeem the reward right on the spot at the merchant venue. For example, you have enough point to redeem a movie ticket. All you have to do in pop by the cinema ticket counter and tell the staff you wish to redeem a movie ticket. Just present your credit card and the cinema staff will take care of the rest. No form to fill and very little waiting time. Sadly, this type of instant redemption is not very common at the moment.

While some of the rewards can be very tempting, you have to keep in mind to use your card responsibly. It is dangerous to keep making purchases after purchases just to accumulate enough rewards points to redeem the item you want. Doing so can put you into some serious debt problem. As long as you use your card wisely, getting free gifts regularly can be a rewarding experience.