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Welcome to the Credit.com newsletter!
This free newsletter delivers easy-to-read tidbits about credit
directly from personal finance experts. In this issue, we're teaching you 30 basic facts about credit cards
We'd love
to hear from you! Send us an email with your credit questions or comments
anytime! |
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Special Preview!
Get an exclusive first look at Credit.com's new credit card comparison tool.
Currently in Beta testing, this system
is designed to make it easy to find a
credit card that matches your credit score
standing and feature requirements.
Plus, you can sort by rates, fees, perks and estimated yearly cost.
Preview our new credit card page! |
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Ask John
Unless you've been on vacation the past month, you've probably heard about the "mortgage crisis" and "credit crunch." The lending world is facing some serious problems right now.
This month, John investigates the real
culprits behind the crash. Rouge mortgage
brokers, bad loan programs, under educated
buyers and especially credit repair companies.
Read about the mortgage crunch |
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On the Blog
Who really gets rewarded by reward credit cards?
A recent study revealed that the average cardholder spends twice as much on a rewards credit card vs.a credit card without a rewards program.
Credit card issuers are smart, they know that rewards programs work for them. Read more about how rewards really work.
Read about credit card rewards |
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Due to popular demand, we're continuing our back-to-school theme again this month! You graduated from Credit Scores 101 in August; now get your pencils ready for a quick lesson on credit cards. This month, you'll learn all about APRs, platinum cards, rewards programs, and more:
- The average person in the US has nine credit cards.
- The average total credit limit for those cards is $19,000.
- 115 million Americans carry a credit card balance. On average, individual balances are around $7,000 to $8,000 dollars.
- Some of the earliest credit cards were shaped like medallions, made out of metal or paper.
- Modern credit cards were first invented in the 1950s with the launch of The Diners Club.
- It is smart to always pay your credit card bill on time each month.
- Visa, MasterCard, and American Express are the largest credit card issuers in America.
- Credit card companies usually only check one of your three credit reports for your application.
- That credit report inquiry can damage your credit score.
- You don't have to be a full time university student to qualify for a student credit card. Part-time, online, and community college students can also apply.
- Credit cards around the world are all the same size: 2.12" by 3.37."
- Opening a retail credit card to save 10% is almost always a bad idea.
- Average daily balance is the most common type of credit card interest calculation and more expensive than adjusted balance methods. Read how it works.
- It helps your credit score to keep your credit card debt-to-limit ratio below 10%, this is called "revolving utilization."
- Even if you pay your credit card off in full each month, you could be still exceeding the 10% debt-to-limit ratio.
- The chart that explains your credit card rates and fees is called a "Schumer's Box" after Senator Chuck Schumer.
- Secured cards are designed to help borrowers with no credit or bad credit establish their finances.
- Credit card issuers can change you interest rates and terms whenever they want.
- The credit industry calls people who pay their balance in full each month "deadbeats."
- Restaurants and stores that let customers pay with credit are charged an "interchange" transaction fee by the credit card issuer. Usually this fee is around 2%-3% of the purchase amount plus monthly and annual fees.
- Rewards cards often come with higher interest rates and annual fees than their non-reward competitors.
- Using your credit cards overseas can be expensive. Most cards charge a 3% international currency conversion fee on purchases.
- Keep copies of your credit card numbers and contacts in a locked file. You can use this information if your wallet is lost or stolen.
- 9 billion unsolicited credit card offers are sent in the mail each year.
- Avoid closing credit card accounts, especially old accounts, because it can cause major credit score damage (especially if the closed accounts had a positive history).
- Credit card interest rates in other countries can be as high as 70% to 120% APR.
- $312 billion dollars of revolving credit are currently outstanding in the US.
- Pre-paid cards are not technically credit cards and do not report to the major credit bureaus.
- Before you transfer a credit card balance, be sure to investigate the charges and fees that come with this change.
- Credit.com has created a new way to sort and compare credit card offers online!
Did you enjoy this "fun fact" lesson about credit cards? Send us your questions and comments at tidbits@credit.com anytime!
Quote of the Month
"Summer makes me drowsy. Autumn makes me sing. Winter's pretty lousy, but I hate Spring."
- Dorothy Parker
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