Credit Cards

It’s commonplace for retailers to have their own vanity cards, but Walgreens’ latest foray goes a little further. In an effort to boost both loyalty and revenue, the drugstore chain says it will partner with Synchrony and Mastercard to launch credit cards and a prepaid debit card, and it is exploring other financial services.

The company’s short-term plan for the credit cards is to connect them with its new customer loyalty program, myWalgreens, allowing cardholders to receive cash rewards and other offers. 

A wide range of benefits

Walgreens is keeping its cards close to its chest, only going as far as saying that the co-branded credit card will offer an undefined “wider range of benefits” when used at other retailers and service providers. The offering will reportedly be the first in another “range of new financial products and services” that the company has up its sleeve. While it didn’t give specifics, it said in a release that it plans to explore a number of add-ons that Mastercard offers such as point-of-sale financing and installments.

That last part -- point-of-sale financing and installment plans -- comes directly from the financial crunch that the pandemic put the consumer world in. According to a report by Salesforce and coverage by CNBC, the use of “buy now, pay later” for online orders grew 109 percent during the 2020 holiday shopping season.

The company is also taking a health-first cue from the pandemic, allowing customers to have access to contactless shopping experiences.

“Walgreens is committed to providing our customers and patients with unparalleled loyalty and rewards experiences for managing their health and well-being, and we are excited to partner with Synchrony and Mastercard, who share our commitment to support healthy communities,” said John Standley, Walgreens president. 

“As we continue to focus on creating new revenue streams, we look forward to exploring and introducing even more health and well-being payment initiatives in the near future.”

The new Walgreens credit cards are slated to be available in the second half of 2021, and eligible customers will be able to use the Walgreens credit card for purchases at more than 9,000 Walgreens stores, via the Walgreens mobile app, and at Walgreens.com.

Consumers who have a travel rewards card may find that it hasn’t been all that useful during the pandemic since travel has been limited. But a number of card issuers have found other ways to offer their customers perks, even when they don’t leave home.

MyFICO recently reported on how some card issuers are rewarding their home-bound cardholders. They’re expanding their higher-earning rewards categories to appeal to the shift away from travel spending. 

For example, the Chase Sapphire Preferred Card is now offering more points for grocery purchases. Cardholders can earn two points per dollar on up to $1,000 in grocery store purchases from November 1, 2020 to April 30, 2021. 

At the same time, cardholders can also accumulate two points per dollar spent on dining, which includes eligible delivery services and takeout.

The Chase Sapphire Reserve Card is also offering more rewards on groceries and gasoline purchases. From June 30, 2020 through June 30, 2021, cardholders are getting an automatic statement credit on gas and grocery store purchases of up to $300.

Grocery store purchases made between November 1, 2020 to April 30, 2021 will earn three points per dollar.

Restaurants, supermarkets, and gas stations

Citi Premier, another popular travel card, has beefed up its points offered on restaurants, supermarkets, and gas purchases. Cardholders get three points per dollar when they use the card at restaurants, supermarkets, and gas stations -- and it still rewards travel. Travelers get three points per dollar on travel expenses.

Ordering out has become a household routine during the pandemic, and Capital One travel cards reward customers when they use UberEats. From now through January 31, 2021, the Capital One Venture and VentureOne are offering five points per dollar on UberEats food delivery purchases.

If you’ve already racked up a lot of miles and points on your travel card, remember that they don’t always have to be redeemed for travel. If you check into your card’s rewards options, you may find that you can cash in your miles for statement credits, gift cards, and even merchandise.

If you carry a travel rewards card in your wallet, it’s important to make it rewarding in some way. Many of these cards carry a hefty annual fee. If you aren’t getting rewards to at least cover the fee, there are many more efficient options.

While closing an account can negatively affect your credit score, you may be able to stay with your same provider but switch from a card with an annual fee to one without one.

When the coronavirus (COVID-19) pandemic struck in March, credit card companies reacted almost immediately, unilaterally closing some accounts and approving fewer new ones.

Now that vaccines against the virus are rolling out and an end to the pandemic is in sight, what credit card trends are in store for 2021? CardRatings.com has issued a new report listing some of the changes consumers can expect in the coming year.

Among the trends, the company’s analysts believe it will continue to be a bit harder to open a new credit card account. When accounts are approved, they may also have smaller credit limits. That’s because credit cards are unsecured debt, meaning the lender has no collateral in the event that the consumer can’t pay. With unemployment still high and the economy still uncertain, lenders can be expected to show some caution.

"Thankfully, with the recent vaccine rollout, there's reason to be hopeful the economy – and credit card approvals – bounce back sooner rather than later," said Brooklyn Lowery, senior managing editor for CardRatings

Shifting rewards

In the meantime, there could be less available credit in the consumer economy. Small businesses may find they’re making fewer sales. On the other hand, the just-signed stimulus bill may help by putting money in consumers’ pockets.

Travel rewards cards are getting much less use during the pandemic, so lenders are finding alternative ways to reward cardholders for using them. One example is the Chase Pay Yourself Back program that allows consumers with the Chase Ultimate Rewards card to redeem points for several categories of everyday purchases. 

That perk was announced as a "limited time" feature earlier this year, but it has already been expanded to additional cards and extended into 2021. CardRatings analysts say the program could even become a permanent feature as banks try to retain cardholders while attracting new ones.

Rising rates

A third trend to watch for in the coming year is rising credit card interest rates. Rates have been stable and even declined some during the pandemic because the Federal Reserve has essentially cut a key interest rate to 0 percent.

CardRatings analysts don’t expect that trend to continue. Bond yields are already beginning to show some signs of life, and credit card rates could soon rise as well, especially as the pandemic begins to end.

"Historically, interest rates tend to go up as the economy improves," Lowery said.

That’s why consumers should start now paying down credit card balances. In the future, more of the monthly payment may go toward just paying interest.

Capital One reportedly will no longer allow its customers to use its credit cards to pay off debt accrued through “buy now, pay later” (BNPL) transactions, which have grown in popularity during the pandemic.

A growing number of apps offer BNPL services in which a consumer purchases an item and charges it through the app. The consumer makes four payments, usually every two weeks, to clear the debt.

Consumers don’t pay interest. The app company charges the merchant a small commission. But the transactions are considered risky because the consumer is not required to submit to a credit check.

Reuters reports that Capital One has confirmed that it will not allow its customers using its credit cards to clear BNPL debt because of “unacceptable risk.” It’s the first credit card company to take that step.

‘Risky business’

Reuters quotes a Capital One spokeswoman as saying the company is ending the practice of consumers putting “point-of-sale” loans on its credit cards. 

“These kinds of transactions can be risky for customers and the banks that serve them,” the spokeswoman told the news agency.

Credit card companies also view BNPL as a growing source of competition. Consumers who switch from paying with a credit card don’t pay interest, which averages about 17 percent on balances. 

How it works

One BNPL app company, Klarna, explains how it works in the terms and conditions on its website:

• Use your own valid debit or credit card, or other accepted payment method, to pay (no prepaid cards).

• The initial payment is charged when the merchant completes your order (this is usually the shipping date for online orders).

• The next 3 payments are automatically charged every 2 weeks after your first payment.

• There are no interest charges with Pay later in 4 installments, and no fees when you follow your automatic payment schedule.

BNPL services are largely unregulated, even though they involve what are in effect interest-free loans. A search for “buy now pay later” on the Federal Trade Commission (FTC) and Consumer Financial Protection Bureau (CFPB) websites returned no results.

Some personal finance experts have warned that BNPL could pose trouble for impulsive consumers. They say consumers could look past the high cost of an item if they only see the payment they will be required to make every two weeks.

With so many consumer purchases shifting to online channels this year, it should come as no surprise that credit card usage is much higher than in past years. For that reason, using the right card for your particular needs and protecting the card from data thieves are two important considerations.

A new survey from Generali Global Assistance (GGA) found that 86 percent of consumers plan to do most of their holiday shopping online this year and 62 percent of shoppers plan on using just one card to make purchases.

Not only does using a single card make it easier to keep track of spending, security experts say it’s also safer.

"The pandemic has created the perfect environment for scammers, who are exploiting uncertainty and our more digitally focused reality, said Paige Schaffer, CEO, Global Identity and Cyber Protection Services at GGA. “Thirty-six percent of shoppers we surveyed this year indicated that their credit card provider experiencing a data breach was a top concern this holiday season.”

Best cards for security

If you’re using a single card, having one with robust fraud protection, as well as other consumer-friendly features, will work to your advantage. The personal finance site MoneyUnder30.com recently ranked credit cards for their security features.

It rated Wells Fargo Cash Wise Visa Card as best for fraud protection. It singled out the Discover It Cash Back card as best for security and cashback.

While security is very important, consumers also consider perks and benefits when choosing a credit card. But consumers should consider their needs. Do they need to transfer a balance or do they need cashback? In the era of COVID-19, travel rewards may be less important than they used to be.

Rating the cards

In its recent analysis of the best credit cards for 2021, CardRatings.com offered choices in 11 different categories. Some of the picks for next year include:

• Best Flat-Rate Cash-Back Rewards – Citi Double Cash Card

• Best for Families – Blue Cash Preferred Card from American Express

• Best General Travel Rewards – Chase Sapphire Preferred

• Best Balance Transfer Offer – Citi Diamond Preferred

• Best Student Credit Card – Discover it Student Cash Back

• Best for Small Business – Ink Business Preferred

The editors say they consulted consumers as well as experts, scoring cards on customer service, rewards, usability, and other factors.

ConsumerAffairs has also dug deep into various credit card offers, looking for the best fit for a wide range of needs. You’ll find our results here.

Many households are facing staggering credit card debt, but fintech firm SoFi says its newly issued credit card could help with that.

The company says its first credit card promotes healthy financial habits and delivers on its mission to “help people get their money right.” The card, on Mastercard’s network, has no annual fee and provides up to 2 percent unlimited cashback when redeemed into SoFi Money or SoFi Invest accounts.

The two percent rate also applies when the rewards are used to pay down SoFi Student Loans or SoFi Personal Loans. The card launched last week with a small number of SoFi members. Consumers interested in the card can get on a waitlist for when the card membership is fully open.

‘Holistic, healthy money habits’

Company executives say the card is aimed at helping consumers chip away at the $14.3 trillion in consumer debt with rewards that are most valuable when used to pay off debt. Other options include investing the rewards or saving for a rainy day.

"Based on feedback from our members, we designed a credit card that helps our members pay down debt or invest in the future with every purchase while building holistic, healthy money habits," said SoFi CEO Anthony Noto. "Through simply using the SoFi Credit Card and following the same daily spending patterns that our members do today, we are making 'getting your money right' the most intuitive and convenient choice."

Cardholders who carry a balance on the card will also be rewarded if they use the card responsibly, the company says. The interest rate on balances will go down by 1 percent after 12 straight on-time credit card payments and will remain at that level as long as on-time payments continue. 

According to the Federal Reserve, U.S. consumers were carrying $1.08 trillion in credit card debt in the third quarter of 2019. That made up a little over 26 percent of consumers’ total debt at the time.

The growth of fintech

SoFi is one of the growing number of fintech firms that are providing financial services directly to consumers by using technology to provide many of the services traditionally associated with banks. The companies tend to be favored by younger consumers.

SoFi was founded in 2011 by four students at the Stanford Graduate School of business. One of the principal aims was to provide a more affordable student loan product.

"SoFi continues to create thoughtful and innovative products to empower its members to pay down debt and improve their financial lives," said Linda Kirkpatrick, president, U.S. Issuers at Mastercard. "We are proud to build upon our relationship with SoFi and work closely to arm their members with benefits and features that are directly relevant and meaningful to their lives."

With the pandemic’s first Halloween less than a week away, a new WalletHub study finds that consumers are still spending billions on the holiday, but overall, they’re feeling life is a little spookier than they’d prefer.

The survey -- WalletHub’s Halloween Spending & Financial Fears Survey -- lays out these consumer frights:

• A whopping 130 million Americans think the coronavirus is the scariest thing about Halloween this year.

• Nearly 40 percent of Americans are more afraid of credit card debt than the coronavirus.

“Almost 40 percent of Americans are more scared of credit card debt than the coronavirus in part because of political allegiances, but also due to the fact that credit card debt might seem more tangible to an indebted individual who has yet to know someone with COVID-19,” said Jill Gonzalez, a WalletHub analyst. 

“Current events aside, money was the number one stressor for Americans for many years before the coronavirus pandemic, so it shouldn’t be a surprise that credit card debt and money problems in general still scare a lot of us, maybe even more so than before.”

Money concerns are widespread this year

The survey found that the pandemic has led to an increase in the number of consumers experiencing money-related worries.

• Concerns about money problems are hitting 22 million more people this year than last year;

• Close to 90 percent of Americans think that politicians prey on peoples' financial fears;

• Roughly 13 million more Americans are scared about their kids' financial futures in 2020 than in 2019;

• Almost 33 percent of people think their finances are a personal horror show.

Gonzalez said that consumers think the “horror show” label applies for a variety of reasons, including the pandemic’s impact on the U.S. economy, as well as debt levels which continue to be high despite showing recent improvement.

“It’s tough to say your finances are looking good when you’re out of work or waiting for business to pick back up. You can’t ignore the possibility that some people are just being dramatic when saying their finances are a horror show, either,” she said.

An unusually large number of consumers have expressed interest in signing up for a store credit card this holiday shopping season. 

The survey, conducted for CompareCards, found that 44 percent of Americans say they're at least somewhat likely to apply for a store card during the holiday shopping season. That's up from 32 percent in 2019 and 24 percent in 2018.

A store credit card is a Visa or Mastercard that is co-branded with a national retailer. Consumers are often offered a special discount on a purchase if they apply for the card.

The survey authors say the findings are somewhat odd since more than half of people in the survey said they've had a store credit card in the past and have regretted getting one.

What’s changed?

What’s different now? The authors point out that the interest rate on these store-branded credit cards has come down from recent highs, but they’re still higher than the rate on regular credit cards.

Another possible reason for the shift in sentiment could be that more consumers need a credit card. At the beginning of the coronavirus (COVID-19) pandemic, credit card issuers unilaterally closed many credit card accounts or lowered credit limits.

A previous CompareCards survey found that about 70 million people – more than one-third of credit cardholders –  involuntarily had a credit limit reduced or a credit card account closed in a 60-day period from mid-May to mid-July.

Lenders moved swiftly to reduce their risk, fearing widespread unemployment would lead to a wave of defaults. It was impossible for them to determine which of their customers had lost their income -- and were thus more likely to default -- and which were still gainfully employed.

Easy to get

Since store-branded credit cards are easier to get -- clerks often try to sign you up in the checkout line -- more consumers may be giving them another look. But their interest rates tend to be on the high side and the rewards are usually less-generous than traditional rewards cards.

Store cards may also look more attractive to consumers than in the past. In addition to slightly lower interest rates, the rewards are getting better.

More retailers are trying to drive spending by creating tiered-rewards programs that let consumers earn rewards faster the more they spend. That’s fine, but remember those higher interest rates. Carrying a balance can wipe out those rewards very quickly.

The survey found that nearly half the people who currently have a store-branded credit card are carrying a high-interest balance. Fifty-nine percent of consumers with a store credit card say it’s the card they use the most.

Venmo has introduced its first credit card, issued by Synchrony and powered by Visa. Members can manage their card in the Venmo app and earn cashback on each purchase.

Just like the app, the card allows users to transfer money or split purchases with friends. A nice feature of the card is that the top reward category changes based on the customer’s biggest spending category.

Instead of having to choose a category or have one assigned by the credit card issuer each quarter, the new Venmo card will pay 3 percent cash back on the customer’s largest purchase category during a billing cycle. One month it might be airlines, another month it might be groceries.

The card pays 2 percent cash back on items in the second-largest category and up to 1 percent on all other purchases. There is no annual fee.

Spending categories include groceries, bills and utilities, health and beauty, gasoline, entertainment, dining and nightlights, transportation, and travel.

Cash goes into the Venmo account

When a customer earns cash, it’s automatically placed in their Venmo account, allowing them to easily use the money. They can use it to make statement payments, make purchases, or send it to family or friends using the app.

The card has many of the same features of the app. Users can manage their card and spending using the mobile app and track spending activity in real time, organized by spending categories, and split and share purchases.

They can also monitor how much cashback they’ve received, make payments, and otherwise manage the credit card – all in the app. Customers can also choose to receive real-time alerts to help them see when and where purchases are made, and when cashback is applied to their account.

Minimal contact during purchases

Venmo says its credit card is also easier to use. It has an RFID-enabled chip so customers can tap to pay at the point-of-sale, allowing for minimal contact, instead of inserting the chip or swiping their card at the point-of-sale.

Venmo’s card also takes advantage of parent company PayPal’s QR code-scanning for credit-card purchases at some brick and mortar and online retailers. To start, the Venmo card’s QR code will only work for card activation and for other Venmo users to send card customers a payment.

Venmo is doing a soft rollout, making the new card available only to a small percentage of current Venmo users this year. The card will be fully available in the first quarter of next year.

As soon as the pandemic threw millions of Americans out of work, credit card lenders began canceling cardholder accounts and reducing credit lines. New data suggests that this trend has only accelerated.

A survey by credit card site CompareCards reveals that about 70 million people – more than one-third of credit cardholders –  involuntarily had a credit limit reduced or a credit card account closed in a 60-day period from mid-May to mid-July.

Lenders moved swiftly to reduce their risk. It was impossible for them to determine which of their customers had lost their income -- and were thus more likely to default -- and which were gainfully employed.

But the survey shows lenders haven’t tightened credit for everyone. Millennial customers were the cardholders most likely to have a credit limit reduced or account closed involuntarily. 

High-income cardholders not immune

Customers with the highest incomes -- who are often among the biggest spenders and have the highest credit limits -- were the most likely to say their credit availability had only been reduced in the wake of the pandemic.

When credit limits were reduced, the survey shows it wasn’t by a lot. The most common credit limit reduction was between $501 and $1,000. But 22 percent of customers in the survey said they saw their credit availability shrink by $5,000 or more.

About 89 percent of those whose credit availability declined were notified by their lender of the change, but not all were given a reason. Of those who were told why there was a change in their account, about half said it was because of a decrease in their credit score or late payment.

Credit score impact

Losing access to credit will almost always send a credit score even lower. A score will go down if a credit card company reduces the cardholder’s credit limit. It could go down even more if there is a balance on the card. The credit limit reduction means the cardholder is using a higher percentage of available credit, usually a drag on credit scores.

“We're several months into the pandemic and one of the few things we know for certain is that no one knows exactly when this is going to end. Because of that, it's likely that we will see banks continue to be cautious when lending,” the authors write. 

There are some things consumers can do to make sure they aren’t the next to lose access to credit. Consider using any dormant cards more. Put a small, recurring subscription – such as Spotify or Netflix – on that little-used card to ensure that it is used each month. Then, set up automatic payments so you never pay late. 

If you have a travel rewards credit card in your wallet, you may be asking yourself just how useful that will be in the midst of a pandemic

Air travel has plunged since the coronavirus (COVID-19) swept the world, and cruises have been canceled. Many countries are temporarily closing their borders to travelers from other countries, another inducement to stay home. In the U.S., some states where coronavirus cases are low are discouraging travelers from states where cases have spiked.

For travel rewards cardholders, that may mean a lot less travel in the months ahead. Not only are they missing out on racking up rewards points, but they are also likely paying a hefty annual fee for the privilege of having the card.

The Wall Street Journal reports that major banks are taking steps to discourage customers from canceling these highly profitable cards, noting that JPMorgan Chase is delaying a $100 increase to its $450 annual fee on its flagship Sapphire Reserve Card.

Chase has joined Citibank and other major card issuers in adding other non-travel rewards to their cards to keep them in consumers’ wallets. However, consumers should carefully measure the value of those potential rewards against the annual fee.

Cash may be king

Having a rewards card that provides points or cashback on routine purchases like gasoline and groceries may make more sense in these times, and these types of cards rarely carry an annual fee.

In a new report, PayPal offers research showing that a significant number of consumers are using their credit card rewards to stretch their budgets. Nearly a third of consumers have used rewards to purchase the things they need most, such as groceries. 

"More and more people across the country are turning to their credit card rewards as a helpful and easy way to make their dollars go farther, and in the current environment, two-thirds of Americans now view these rewards balances as a way to buy the things they need such as groceries and other essentials," said Jill Cress, vice president of consumer marketing at PayPal.

Unaware of their rewards

At the same time, the research found that 39 percent of people with rewards credit cards were completely unaware of their rewards balance. Cress says it’s not only important to incorporate those rewards into the household budgets, but consumers should also think carefully about the credit cards they have and the kinds of spending they reward.

"With travel and luxury items still less of a priority for many right now, our research shows that people are instead tapping into their rewards balances to support small businesses in their community and to give back to causes," Cress said.

Replacing a travel rewards card that carries an annual fee with a no-fee card providing cashback on everyday purchases may be a prudent step in this new environment, and there are many of these cards to choose from.

ConsumerAffairs has researched the best cashback credit cards here.

Credit card companies slammed on the brakes in March as millions of consumers lost their jobs. The number of new credit card accounts plunged 73 percent between March 15th and April 15th, according to a survey by CompareCards.

While it’s not surprising that lenders would try to reduce their risk in the face of rising unemployment, the speed in which they acted is unprecedented. Then again, the economic disaster from the coronavirus (COVID-19) shutdown happened virtually overnight. 

Prior to the pandemic, credit card companies aggressively sought to open new accounts because of a robust economy. In the new environment, consumers may find it will be much harder to get all types of credit.

Economic uncertainty

Compared to the March-to-April periods from 2017 to 2019, the number of new cards slowed to a trickle this year. When lenders did issue cards, the credit limits were on average $700 lower.

“When the economy is uncertain, as we are currently witnessing, plans change and lenders get nervous,” CompareCards wrote in a blog post. “When lenders become wary, they resort to reducing credit limits on existing accounts, or even close those accounts altogether, because all that available credit just looks like unnecessary risk to the bank.”

Even if you already have a credit card, it doesn’t mean you’re going to keep it. As unemployment surged in late March, credit card companies moved quickly to close some customers’ accounts. 

At the end of April, about 25 percent of consumers reported that their credit card company had closed an account or lowered their credit limit.

‘High risk of failure to pay’

ConsumerAffairs has received scores of complaints from consumers like Robert, of Houston, who told us he had several credit cards with Synchrony, which he said had continued to increase his credit limits over the years.

“Then, in one single day, Synchrony closed every single account without notice,” Robert wrote in his ConsumerAffairs post. ”Received a letter stating ‘Activity on accounts indicative of high risk of failure to pay.’ How is that possible when there was less than $3k total on just 2 of the several accounts I had with them?”

Robert also said his credit score dropped by more than 100 points because of the loss of credit, which he says significantly increased his debt ratio.

Credit card companies are often quick to react to perceived risk because credit card debt is not secured by any kind of collateral. If an account holder doesn’t pay, there is no means to secure payment without going to court.

But in the wake of the coronavirus, some lenders are even worried about secured debt. Earlier this month, Wells Fargo announced it was temporarily suspending new home equity lines of credit (HELOC), joining other major banks moving to reduce their credit exposure.

Consumers whose credit card accounts have been closed by their lender may be able to restore access by applying for a secured credit card. ConsumerAffairs has researched the best secured credit card companies here.

Navy Federal Credit Union is ramping up the competition in the rewards credit card space by introducing four new credit card promotions this week. The cards, designed for different uses and different consumers, all offer rewards of some kind.

The Navy Federal Visa Signature Flagship Rewards card provides 50,000 bonus points -- which translates to a $500 value -- to new cardholders who spend at least $4,000 within 90 days of opening the account.

It could be a good choice for consumers preparing to make a major purchase that would get them over the $4,000 threshold. It’s also good for frequent travelers because it offers three times the points on travel expenses and two times the points on all other purchases. 

While that can be attractive for frequent travelers, there is a $49 annual fee. But cardholders can receive a statement credit of up to $100 for Global Entry or TSA Pre-check. 

The interest rate on balances ranges from 11.49 percent to 18 percent, and the offer is good through the end of April.

For groceries, gasoline, and restaurants

The Navy Federal More Rewards American Express Card has a lower spending threshold. Spend just $3,000 within 90 days of opening the account and you’ll get 25,000 bonus points worth $250.

The card pays three times the points for purchases at supermarkets, for gasoline and transit, and at restaurants. It pays one times the points on all other purchases.

There’s no annual fee, and the interest rate on balances ranges from 11.15 percent to 18 percent. The credit card offer is good through the end of August.

$150 cashback

Navy Federal’s Cash Rewards card pays cardholders $150 cashback if they spend at least $3,000 within the first 90 days of account activity. 

They’ll also get an interest rate of 1.99 percent on purchases for the first six months, making it an attractive tool for consumers who need to finance a major purchase for a short period of time.

After the introductory period, the rate ranges from 11.15 percent to 18 percent. There is no annual fee, and the offer is good through June.

Balance transfer at 0 percent

The Navy Federal Platinum card isn’t technically a rewards card; it’s a balance transfer card. However, these kinds of cards can sometimes be the most rewarding.

New cardholders are eligible for a 0 percent introductory rate on balance transfers for 12 months after opening the account with no balance transfer fee. After that, the rate ranges from 7.49 percent to 18 percent.

There is no annual fee and the offer is good through the end of December.

A whopping 46 million American consumers say they’re likely to miss at least one credit card due date in 2020.

A new WalletHub credit cards survey shows that the cocktail of overzealous spending and credit card dependence may be getting the best of consumers and putting them in the difficult position of determining which bills they can pay based on their monthly income. 

WalletHub’s survey took a look at how consumers handle late payments and what their feelings are when it comes to leaning on plastic money going forward.

Here are the highlights of the study:

• Credit card issuers are forgiving…if you ask nicely. Almost 90 percent of the consumers who asked forgiveness for missing a due date were given a pass on the late fee. Women aren’t shy about asking to get a late fee waived -- with that demographic asking about 18 percent more than men. However, women are also 2 percent less likely to get their waiver request approved. 

• Payment priorities change with age. The 18-44 demographic has the most worrywarts when it comes to missing credit card payments. The 45-59 demographic does most of its hand-wringing about their mortgage, and those over the age of 59 say tax payments are what makes them the illest at ease.

• Luxury can lead to lapses. The more people make, the more they apparently forget. The survey shows that high-income consumers are nearly twice as likely to miss a payment due to absentmindedness as people with lower incomes. 

• Men and women react differently to fees. Do you feel “punished” when you’re confronted with a late fee? Of the women surveyed, 39 percent said they were more likely to feel that way than men; however, men are twice as likely to feel “indifferent.”

Stretched out?

“The reason that roughly 46 million people expect to miss at least one credit card due date in 2020, according to WalletHub’s latest credit card survey, is that we’re stretched too thin -- in terms of both time and money,” said WalletHub CEO Odysseas Papadimitriou. 

“U.S. credit card users started 2020 with more than $1 trillion in credit card debt. Up until this point, we’ve managed to keep our accounts in good standing at historical rates. However, expecting to miss due dates is a sign of cracks in the foundation. And not only do 18 percent of people expect to miss at least one credit card due date in 2020, but 30 percent say that not having enough money is the reason we’re most likely to be late.”

Taking the stress out of late payments

If you fall into the oh-no-not-again category when it comes to paying your credit card bill on time, there are some steps you can take to stop that slide.

“The easiest way to avoid late payments, and the fees and credit score damage that can accompany them, is to set up automatic monthly bill payments from a checking account for at least the minimum amount due each month. This will at least remove forgetfulness as a potential cause,” said WalletHub CEO Odysseas Papadimitriou. 

“Automated payments won’t do much good if you don’t have enough money in your bank account, however. So careful budgeting and saving are key, too.”

Consider asking for help

Besides Papadimitriou’s suggestion, there’s also the credit counseling route. 

Unbeknownst to most consumers, credit counseling agencies certified by the National Foundation for Credit Counseling (NFCC) offer free debt counseling. Whether it’s a last resort or you just feel like you need to get a grip on your credit card use, those agencies can be a good -- and understanding -- resource. 

ConsumerAffairs has put together a free guide on the best credit counselors. If you ever find yourself needing some help, it might be a good place to start. You can find the guide to credit counselors here, and the guide to debt relief programs is available here.

On the heels of a LendingTree study that found a majority of Americans entered the year feeling financial stress, another survey points to consumers’ growing financial angst.

In an analysis of Federal Reserve Data, OnlineLoans reports that 10 percent of respondents think they are losing ground financially. Nearly half of consumers who say it’s difficult to get by say they’re doing worse than their parents were at that age.

The flip side of that, however, is that an overwhelming majority -- 75 percent -- say they’re living comfortably or doing okay. That flies in the face of the LendingTree study, issued last week, which found that 60 percent of people are carrying a debt load that causes them stress.

The credit card squeeze

But the latest study doesn’t focus on income; it notes that some high-income households struggle due to spending. And there’s a single factor that plays an outsized role in both studies -- credit card debt.

“Even though the current U.S. economic climate is quite strong, Americans still struggle to afford their standard of living, and many are not prepared for an unforeseen emergency,” the authors write. “Seventeen percent of Americans said they couldn't pay some bills this month. And the biggest culprit was the credit card bill, which 7 percent of the survey pool – including 4 percent of those living comfortably – pointed to as a major concern.”

Outstanding credit card debt passed the $1 trillion mark a year ago and is beginning to catch up with student loan debt. While most consumer interest rates have fallen since then, credit card interest rates have not.

Balance transfers

An often-overlooked tool in reducing this debt is applying for a balance transfer card with an introductory low-to-no interest rate. Until the end of February, Navy Federal Credit Union is offering its nine million members an introductory rate of 1.99 percent on new purchases and transferred balances.

Justin Zeidman, manager of credit card products for Navy Federal, says what makes the firm’s offer attractive to debt-strapped consumers is the fact there is no balance transfer fee that is charged by most balance transfer cards.

“A lot of people look at a 0 percent APR on a balance transfer and assume that it’s free,” Zeidman told ConsumerAffairs. “In reality, if you’re transferring a $5,000 balance to a card with a 4 percent balance transfer fee it’s costing you $200 just to move the money.”

Zeidman says it’s also important to read the fine print and see what the rate adjusts to once the introductory period is over. Chances are good that there will be a balance remaining on the card once the introductory period expires, so the rate you pay after that is important. But paying off as much of your balance as possible at a rock bottom rate can have a profound psychological effect.

“Seeing your interest charges rack up at a much smaller pace creates a greater sense in the consumer’s mind of being able to get out of debt, to see that light at the end of the tunnel,” Zeidman said.

ConsumerAffairs has checked out some other balance transfer credit card offers here.

The number of U.S. consumers using credit cards has increased 7 percent over the last five years, according to a new report from Packaged Facts.

The report’s authors say credit card use usually goes up during good economic times. Steady economic growth and an increasingly healthy job market in recent years have helped to provide a widening pool of credit-worthy credit card customers, and good times have encouraged them to spend.

Another factor driving increased credit card us is e-commerce, which is taking an increasingly bigger market share of retail and which is made much easier with payment cards.

The report found that consumers increasingly favor general-purpose credit cards over so-called private-label credit cards. This suggests that, after several years of growth, private label cards may now be less popular with consumers.

A private label credit card is a store-branded card that is meant to be used at a specific store. These cards are managed by a bank or commercial finance company for retailers like department and specialty stores and for some airlines.

The trend of going cashless

The growth in credit card use may also suggest the continuation of the trend of consumers paying for virtually everything using plastic. A 2018 Pew Research Center study found that 29 percent of U.S. adults said they make no purchases using physical currency during a typical week, up from 24 percent in 2015.

“Most notably, adults with an annual household income of $75,000 or more are more than twice as likely as those earning less than $30,000 a year to say they do not make any purchases using cash in a typical week (41% vs. 18%),” Pew said in a release.

“Conversely, lower-income Americans are about four times as likely as higher-income Americans to say they make all or almost all of their purchases using cash (29% vs. 7%),” the Center said.

More consumers can qualify

The higher income group is also more likely to have a bank account and to be able to qualify for a credit card. Packaged Facts’ report showing credit card use is rising could also mean that consumers who previously couldn’t qualify now can.

But a 2019 report from Origin, Hill Holliday’s independent research arm, suggests most consumers aren’t ready to give up cash completely. The survey found that 76 percent of consumers still carry some cash, even if they mostly use other methods to pay for things. Fifty-five percent said they “hated” the idea of completely abandoning cash.

Most merchants -- particularly small businesses -- also prefer that their customers pay with cash because payment cards always carry some type of fee.

Many consumers are waking up today with the realization that they have overloaded their credit card during the holidays with a balance that will take months to pay off.

It happens. But transferring the balance to a new card with a 0 percent interest rate for the first year or so can help you pay down the balance faster and spare you the double-digit interest charges you would pay otherwise.

In its annual balance transfer card report, CompareCards.com reviewed the terms and conditions of 167 credit cards that allow balance transfers. Once again this year, the researchers found that interest-free introductory periods are still easy to find.

In searching for a card, consider one that doesn’t carry a one-time balance transfer fee. Most balance transfer cards charge a fee of at least 3 percent. On a $5,000 balance, that comes to $150.

The Chase Slate card now offers a 0 percent rate on transferred balances for 15 months. If you transfer the balance during the first 60 days the account is open, you won’t pay a balance transfer fee. If you wait until later than that you’ll pay a hefty 5 percent fee.

Common misconceptions

The researchers found that 75 percent of the consumers surveyed mistakenly believed that they would be assessed interest on the full balance if they didn’t pay it off completely during the transfer card’s introductory period. That’s not the case, although that’s exactly what happens with a merchant’s “deferred interest” plan.

With a balance transfer card, 100 percent of your payments are used to pay down the balance during the introductory period. At the end of the introductory period, the card’s prevailing rate kicks in. The rate can be as high as 25 percent for many balance transfer cards, so it’s important to pay as much of the balance as possible during the interest-free introductory period.

According to the survey, nearly 20 percent of consumers with credit cards plan to apply for a new card that will allow them to transfer a balance. Another 32 percent said they’re thinking about it.

This is a fairly common practice. About half of all credit card customers say they have opened a new credit card account just to transfer a balance and take advantage of a 0 percent interest rate. Of that number, 18 percent have done it more than once.

The experts at ConsumerAffairs have researched balance transfer credit cards with an attractive introductory promotion. You can check out their findings here. 

KeyBank reports that nearly one-third of the consumers who signed up for its secured credit card were eligible for an unsecured card after just one year.

A secured credit card is often used by consumers with poor or no credit. They make a deposit with the lender which secures their credit line. For example, if they deposit $500, they have a $500 credit limit on the card.

KeyBank promotes it as an effective tool to not only build up a credit score but also establish good money-management habits. The lender reports that 30 percent of its secured credit card customers became eligible this month for an unsecured card. Of that number, KeyBank says 65 percent are millennials.

“Millennials, many of whom came of age during the 2008 recession, are saddled with debt and looking for ways out of it," said Mitch Kime, head of Consumer Payments in KeyBank's Enterprise Payments group. "Our Secured Credit Card helps them overcome the barriers they face to establishing a strong credit history that makes financial achievements, like renting their own apartment, a reality."

Consumer support

KeyBank says it offers support to its secured credit card customers by reviewing accounts twice a year. Customers are then offered advice on how they can better manage their credit and improve spending habits. According to the lender, young adults and recent college graduates between the ages of 21 and 25 make up the largest segment of Secured Credit Card customers. 

Selecting a secured credit card is a lot like deciding on any other type of card. It’s best to find one with no annual fee. Some secured cards even offer rewards, such as cashback on purchases. 

While the credit limits tend to be low -- after all, they’re determined by how much money you deposit as security -- that tends to be beneficial since it prevents consumers from running up large balances. In most instances, consumers using a secured card need to pay the balance in full each month to have any available credit the following month. That’s a good habit to establish.

ConsumerAffairs has researched secured credit cards and come up with this list of the best ones. 

Picking a credit card is done too often in an off-hand manner without a whole lot of thought. Maybe a merchant offers you a discount at checkout if you apply for their credit card.

But if you are seeking your first credit card, it pays to think first about your needs. If you rarely travel, then choosing an airline rewards card with an annual fee is definitely not a good fit.

If you have little credit history, there will be many cards that simply decline your application. In that case, how do you find a lender who will not only take you on as a customer but who also offers a product that fits your needs? For answers, we turned to some credit card experts.

CreditCards.com likes the Discover It Student Cash Back card. As the name implies, it is for students who, in many cases, have never had a credit card in their name. It offers 5 percent cash back on rotating categories that change quarterly. All other categories earn 1 percent cash back on every purchase.

Unusual rewards for a student card

The card has no annual fee and wins points for its cashback rewards, which CreditCards.com says is unusual for a student card.

WalletHub has several suggestions for consumers new to credit, including the Capital One QuicksilverOne Cash Rewards card. The card makes the list because it pays 1.5 percent cash back on all purchases.

The only downside, however, is the $39 annual fee. For some, that might not make sense. But the experts at WalletHub point out that the cash rewards will pay for the annual fee if you think you’ll spend $2,600 a year on the card. The interest rate is also on the high side for consumers with spotty credit, so it’s advisable to pay the balance in full each month if you get the card.

"While there has been a lot written about credit cards that offer the best perks and bonuses, there's not as much information available for people who just want a good starter card," said Eleri Miller, Marketing Coordinator for RAVE Reviews. 

RAVE has published a list of what it sees are good starter credit cards that include the two mentioned above. It also suggests Citi Rewards Student Card pays double points at supermarkets and gas stations on the first $6,000 spent per year. It provides one point on all other purchases after that.

There is no annual fee, and it offers a 0 percent introductory interest rate for the first seven months after opening an account. But beware -- if the balance isn’t paid off at the end of seven months, the interest rate will go from 16.49 percent to 26.49 percent, depending on your creditworthiness.

For consumers with ample credit experience, check out ConsumerAffairs’ best credit card section, where you can find recommendations for cards that best suit specific needs.

The Apple Card began open enrollment this week, with the tech giant urging its iPhone customers to begin applying for the new credit card.

But while the Apple Card works like a regular credit card, you can’t treat it like a regular credit card. 

A support note, first reported by Apple Insider, warns users not to store the card in a leather wallet. Leather, it turns out, will permanently discolor the card’s bright, white, metal finish. Don’t put it in your jeans pocket either, since coming in contact with denim will do the same thing.

In fact, it seems almost as though the Apple Card should be kept in a totally separate environment since contact with other credit cards, keys, and loose change can also damage the card.

Cleaning instructions

It’s unlikely that many consumers spend much time cleaning their other credit cards, but Apple has provided instructions for doing that to its new card.

“Gently wipe with a soft, slightly damp, lint-free microfiber cloth,” the company advises. “Moisten a soft, microfiber cloth with isopropyl alcohol and gently wipe the card. Don't use window or household cleaners, compressed air, aerosol sprays, solvents, ammonia, or abrasives to clean your titanium Apple Card.”

With this much pressure to keep the Apple Card in pristine condition, some consumers might think twice before shoving it into the slot of a nasty gas pump. And in truth, the card might not have been designed for that.

The card may actually have been designed to be linked with Apple Pay. Consumers using Apple’s payment system can simply replace the card the system currently uses with the new Apple Card. Consumers who aren’t using Apple Pay may start using it once they get the Apple Card. Carrying the card might not even be necessary.

All of this prompted tech site CCN to declare this week that the Apple Card really isn’t a credit card as much as it is a “huge marketing ploy for iPhone sales.”

The Apple Card, the company’s entry into the credit card market, is now open for all iPhone users. Over the last 10 days, it has only been available to select customers.

Apple says its customers can quickly apply for the new credit card through the Wallet app on iPhone and start using it right away. Apple announced the card earlier this year, partnering with Goldman Sachs, saying it wanted to help consumers better manage their money.

“We’re thrilled with the overwhelming interest in Apple Card and its positive reception,” said Jennifer Bailey, Apple’s vice president of Apple Pay. “Customers have told us they love Apple Card’s simplicity and how it gives them a better view of their spending.”

The Apple Card is like many regular credit cards. It doesn’t have an annual fee and it offers 3 percent cash back on Apple purchases and 1 percent on all other purchases. 

The card has gotten a rather lukewarm reception from personal finance experts who note that most cards now don’t charge an annual fee and offer rewards as generous or more than what the Apple Card pays.

Other cards may have better benefits

“The only people who should consider applying for the Apple Card are those who pay their bills in full every month and spend a lot via Apple Pay,” WalletHub CEO Odysseas Papadimitriou told us earlier this month. “Everyone else is better off with one of the best rewards credit cards or one of the best 0% APR credit cards.”

The Apple Card, after all, is still a credit card that charges credit card interest. When the company announced the product in the spring, it said its rates would be lower than most credit cards. They are, but not that much lower -- topping out at around 24 percent APR. The average credit card rate is around 15 percent.

Papadimitrious points out that the Apple Card doesn’t offer 0 percent introductory rates, and its lowest interest rate -- the one offered to customers with the best credit -- is 12.99 percent.

Added utility

That said, loyal Apple customers may find added utility with the card. It’s extending 3 percent Daily Cash to more merchants and apps. And from now on customers will receive 3 percent Daily Cash when they use Apple Card with Apple Pay for Uber and Uber Eats.

There could be an additional advantage. If you own an iPhone and have been turned down by other credit card companies, the Apple Card might be your best bet. CNBC reported last week that consumers with subprime credit scores are being approved for the Apple Card. 

Apple reportedly sought a banking partner willing to approve as many of its U.S.-based iPhone users as possible, within the bounds of responsible lending. One iPhone user approved for the Apple Card told the network he was “shocked” that he was approved because his credit score is 620.

The Apple Card, Apple’s branded credit card announced earlier this year, began to roll out this week. 

Some iPhone owners were able to apply for the card this week, and it will be open to everyone else by the end of the month. This week, consumers and financial services experts got their first look at the card’s details.

“The only people who should consider applying for the Apple Card are those who pay their bills in full every month and spend a lot via Apple Pay,” said WalletHub CEO Odysseas Papadimitriou. “Everyone else is better off with one of the best rewards credit cards or one of the best 0% APR credit cards.”

That’s because the Apple Card is still a credit card. When the company announced the product in the spring, it said its rates would be lower than most credit cards. They are, but not that much lower -- topping out at around 24 percent APR. The average credit card rate is around 15 percent.

Papadimitrious points out that the Apple Card doesn’t offer 0 percent introductory rates, and its lowest interest rate -- the one offered to customers with the best credit -- is 12.99 percent.

CNBC reports that many consumers with subprime credit scores are currently qualifying for the Apple Card. The network reports that Goldman Sachs, Apple’s partner, is bowing to pressure from Apple to approve as many of its customers as possible -- even those with less-than-stellar credit.

‘Didn’t reinvent the wheel’

"As with all Apple products, the team behind the Apple Card has created an attractive-looking product, but they didn’t reinvent the wheel when it comes to credit cards,” said Sara Rathner, credit card expert at NerdWallet. “Consumers owe it to themselves to shop around when choosing a new credit card and select one that rewards them the most where they spend most often.”

As an alternative, Rathner suggests taking a look at the Citi Double Cash rewards card, which pays 2 percent back on all purchases. Its interest rate range is not much higher than the Apple Card’s -- 16.24 percent to 26.24 percent.

Of course, as CNBC’s reporting shows, some people can qualify for the Apple Card who can’t get a card designed for people with good to excellent credit.

Apple’s rewards

Apple saves its most generous rewards for the purchase of Apple products. It will pay 3 percent cash back on any Apple transaction, including iCloud storage. It pays 2 percent on any Apple Pay transaction and 1 percent on purchases made with the physical card or virtual card number.

“Unless the bulk of your budget goes toward buying new Apple products, there are a variety of cards on the market that may be a better fit," said Rathner.

Apple says its new card has some advantages that other cards don’t have. It doesn’t charge late fees and there is no annual fee. It also waives foreign transaction fees.

Democratic presidential hopeful Sen. Bernie Sanders (I-Vt.) has gotten a lot of attention for his proposal to wipe out all student loan debt. His proposal to cap credit card interest rates is less known but just as popular.

Sanders has proposed capping the interest rate consumers pay on credit card balances at 15 percent. The average rate on credit cards is slightly higher than that, and many cardholders pay an even higher rate, making it difficult to pay off large balances.

While consumers like the idea of a cap, a new survey from CompareCards, a division of LendingTree, finds that support goes down when consumers are told how such a cap would affect credit.

Eighty-three percent of respondents support the concept of capping credit card rates at 15 percent. But the support falls to 51 percent when they learn that the cap would make it harder to qualify for a credit card.

Unsecured loans

Lenders say credit card rates are so much higher than other types of loans because credit card debt is unsecured. If a consumer defaults on the debt, the credit card company can sue, but it has little other recourse. There is no collateral securing the loan, so lenders charge everyone a higher rate to compensate for their expected losses from consumers who don’t pay.

"Americans love the idea of a credit card rate cap,” said Matt Schulz, chief industry analyst at CompareCards. “It's one of the few things that both Republicans and Democrats agree on these days, but that love isn't unconditional." 

Schulz says the survey showed a large number of cardholders would have second thoughts about an interest rate cap if it made it harder for them to get access to credit. Even cardholders with good credit are less supportive of a cap when they learn credit card companies would likely reduce rewards and incentives if a cap is imposed.

No limits on interest

Currently, there are few limits on what interest rate credit card companies can charge. The rate for cards offered to consumers with subprime credit can be more than 30 percent. 

One credit card company recently set the rate on its card at 79.9 percent. That jaw-dropping rate was found to be legal as long as the bank disclosed the terms in accordance with the Truth in Lending Act.

Even with the knowledge that it might reduce some consumers’ access to credit, an overwhelming majority -- 77 percent -- agreed there should be stronger regulations in place to protect credit card customers.

With dust-ups like Carnival Cruise Lines being threatened with a ban from U.S. ports and the Boeing 737 MAX grounding, consumers are starting to take a look at credit cards that come with built-in travel insurance benefits.

That sounds like a good idea in theory, “but depending on each traveler and their trip specifics, this limited coverage may be exactly what they need, or it may not provide the right benefits or coverage amounts,” Jenna Hummer, a spokesperson for Squaremouth, a travel insurance comparison site, told ConsumerAffairs.

Hummer recommends that the consumer do a little more investigating before they sign up for a new credit card for the sole purpose of a travel insurance perk. “One big concern is when travelers assume their credit card offers the trip protection they need but they do not check the coverage details in advance of their trip.”

A broken foot diving in Aruba?

Squaremouth found three situations where third-party travel insurance policies can cover costs that credit cards won’t necessarily guarantee.

At the top of Squaremouth’s warning list is the fact that most credit cards don't include medical coverage if a traveler has a medical emergency while traveling. Keyword there being “most.” If the credit card you sign up for promises that it does indeed cover travel medical benefits, check the amount. Often, the amount is limited, ranging from $2,500 to $5,000.

If medical coverage is something you want to have just in case, it might be smarter to take a look at third-party medical insurance. Those policies usually offer more comprehensive medical coverage, with benefits starting around $10,000 for Emergency Medical and $100,000 for Medical Evacuation. Third-party policies can also offer some added pluses like coverage for pre-existing conditions, dental, including chronic conditions and recent diagnoses, illnesses, or injuries.

Squaremouth’s guidance? At least $50,000 in Emergency Medical coverage and $100,000 in Medical Evacuation coverage for international travel, plus higher amounts for cruises or remote travel.

When ConsumerAffairs tested Squaremouth’s $50,000 medical coverage suggestion at travel insurer Allianz, the rate we received was $152 (for a 50-year old Alabama resident visiting Aruba over the Fourth of July) which also included trip interruption, trip cancellation, baggage loss/delay, etc.

When travel plans get off the tracks

“Many credit cards offer Trip Cancellation coverage to customers who pay for trips through their card, reimbursing travelers who are unable to take their trip as planned,” Hummer said, but with a slight “but” -- those cards usually cap coverage at a certain amount.

And, just like emergency medical, travelers who want to make sure their plane or boat gets them where they’re going, checking out third-party insurers would be smart. Typically, they cover much higher trip costs and offer reimbursements up to 100% of prepaid and non-refundable travel expenses, like airfare, hotels, and tours.

Squaremouth raises one important point about Trip Cancellation coverage: While you’d rather not have to ask the credit card company or travel insurance company for approval, unfortunately, the standard Trip Cancellation benefit typically only reimburses travelers who cancel for specific reasons, such as illness, death, severe weather, or terrorism.

The all-in-one option

Want a catch-all? While Cancel for Any Reason policies can run as much as 40 percent more, the coverage is broad and will -- at least partially -- reimburse the consumer to cancel for reasons that are not covered by the standard Trip Cancellation benefit.

Consumers owe more than $1 trillion in credit card debt, but how that debt is managed can make the difference between getting ahead or living paycheck-to-paycheck.

Carrying a balance of $1,000 or less? Those payments can be manageable even with a modest income and the balance can be paid off with some sustained effort. What about $5,000? That gets a little harder.

When a credit card balance goes over $10,000, that’s when you can find yourself behind the 8 ball, depending on your income and other expenses. Assuming a 17 percent interest rate -- and the rate on many cards is higher -- the interest payments alone would be $141.66 a month, assuming you never paid anything on the principle.

Unfortunately, a growing number of consumers find themselves trying to juggle payments around a five-figure credit card balance. About one in six consumers with credit cards in the nation’s largest metro areas carry a balance of $10,000 or more, according to a new report from CompareCards.

Big spenders in Bridgeport, Conn.

According to the study Bridgeport, Conn., has the highest percentage of consumers with a $10,000 credit card balance. Researchers say most of the cities with the highest percentages of people with five-figure credit card debt are along the East Coast and West Coast. And it’s not low income households that have gotten in over their heads in plastic debt -- it's often the wealthiest cities that carry the biggest card balances.

About 23 percent of credit card holders in the Bridgeport metro area carry balances in excess of  $10,000. Nearly 2 percent of Bridgeport consumers owe more than $50,000 on their cards.

Virginia Beach is second on the list, with 20 percent of cardholders owing at least $10,000 on their cards. Washington, D.C. is third with just under 20 percent in the five-figure club. New York is fourth and Los Angeles rounds out the top five.

Less debt in the South

While the biggest borrowers tend to be on the coasts, the South has fewer credit card customers who owe $10,000 or more. In fact, five of the seven cities with the lowest percentage of cardholders with five-figure card debt were in the South.

Winston-Salem, N.C.; Greensboro, N.C.; Chattanooga; Knoxville, Tenn.; and Jackson, Miss., have high percentages of five-figure credit card debt, but none higher than 12.4 percent.

"When your credit card debt hits five figures, it's crushing, and it can consume your life. I know. I've been there," said Matt Schulz, chief industry analyst at CompareCards. "But if you're struggling with credit card debt, the worst thing you can do is nothing.”

Sometimes seeking advice from a non-profit credit counselor can be the first step toward getting out of debt. The National Foundation for Credit Counseling (NFCC) can put you in touch with a non-profit counselor in your area.

After student loan debt, credit card debt is one of the main financial anchors holding consumers back, preventing them from getting ahead.

But a new survey conducted for U.S. News and World Report shows a lot of consumers are not only unaware of how much credit card debt they owe, they don’t even know if that debt exists.

A recent report from the Federal Reserve shows credit card debt in the U.S. surpassed the $1 trillion mark for the first time in 2018. Student loan debt is only slightly larger, at $1.4 trillion.

The disturbing results of the U.S. News survey show 21 percent of consumers don’t know if they are carrying a credit card balance and 30 percent said they don’t know how much interest they pay each month.

Nearly a quarter owe more than $10,000

The survey also found that of consumers who have credit card debt, 24 percent owe more than $10,001. While 37 percent have a balance on just one credit card; 12 percent are running tabs on five or more credit cards.

If you recognize yourself among those statistics, Beverly Harzog, best-selling author, credit card expert and consumer finance analyst at U.S. News, says it’s no cause for shame. Most of us have been there at one time or another.

"When I was young, I fell into a sea of credit card debt because I was uneducated about personal finance and unaware of the high interest rates associated with credit cards," she said.

Paying down a balance might not be as daunting as it might seem. Harzog recommends tricks like transferring high interest credit card balances to a card giving you a year or more without paying interest.

Get a balance transfer card

"If you qualify, a balance transfer credit card can save you money and help you get back on track financially," she said.

As ConsumerAffairs has previously reported, a balance transfer card with a 0 percent interest rate allows you to quickly pay off a balance because the entire payment goes to pay down what’s owed. With a high-interest credit card, very little of the payment actually goes toward the debt.

The U.S. News survey uncovered some good news as well as bad news. It found that a majority of consumers -- 60 percent -- do not have any credit card debt. They pay off their balance in full each month.

But of consumers who are carrying a credit card balance, 13 percent said they have to struggle to make ends meet. Fifteen percent said their credit card debt limits their spending on other things.

Now that consumers have gotten accustomed to inserting their embedded-chip cards into a credit card terminal instead of swiping, the next trend may be just simply tapping the card on the terminal to record a purchase.

KeyBank is launching Mastercard contactless credit and debit cards, in partnership with Mastercard and FIS. The new cards, which are now being issued to account holders, will allow consumers to make in-store purchases by just tapping the terminal screen. The transaction is encrypted to provide security.

"We know that consumers value convenience and speed, and our new contactless cards make everyday purchases quick and simple, with the confidence that transactions are secure,” said Ken Gavrity, head of KeyBank Enterprise Payments. “We're thrilled to offer our customers this easy-to-use and safe way to pay."

Built-in antenna

Contactless cards come with a different kind of chip and a near field communication (NFC) antenna, which transmits data between the card and the terminal, usually in about half the time it takes to make a purchase using cards with the EMV chips.

Sara Rathner, NerdWallet’s credit card expert, says the contactless cards are popular in Europe, but U.S. consumers and businesses have been slow to adopt them.

“KeyBank is following other major credit and debit card issuers in offering this feature,” Rathner told ConsumerAffairs. “Wells Fargo, Chase, Capital One, and American Express have all started to roll out contactless payment capabilities on their products in the past few years. As more U.S. merchants update their point-of-sale hardware to accept contactless payments, consumers will adopt this faster way to pay in greater numbers.”

While consumers may worry about the security of contactless payments, a transaction is secured by using a one-time code rather than your personal information.

“While there’s always a risk of your credit or debit card being compromised, you have recourse if you report fraudulent charges to the issuer as soon as possible,” Rathner said.

According to CreditCards.com, the U.S. adoption of the EMV chip card as standard may pave the way to wider use of contactless cards. That’s because many of the new terminals that accept chip cards also work for contactless cards.

Digital wallets also use similar technology. Once you load your payment information into a digital wallet app, you can pay for purchases by holding your smartphone next to the credit card terminal. An estimated 30 million retailers are equipped to accept digital wallet payments.

Not one to be left out of the all-things-for-all-people game, Apple threw a giant welcoming party on Monday for its new video streaming service -- “TV+” -- and its new credit card, “Apple Card.”

Apple’s foray into fintech is a giant step for the company, but not a new one. Its “Apple Pay” is in its fourth year as a mobile payment and digital wallet service, and according to Apple CEO Tim Cook, Apple Pay transactions soared to more than 1 billion in 2018. If you’re doing the math, that’s about 11 million per day -- thought to be more than both Square and PayPal’s mobile transactions.

The big questions

Just looking at its history, let alone the numbers, it’s tough to call Apple’s move into the credit card world a bad one. However, within hours after the company’s announcement, tech and financial sages came out of the woodwork to weigh in with their own take.

Here’s what ConsumerAffairs found:

Apple’s pitch

As far as the upsides to Apple Card, the company has three points it wants the consumer to take away:

1. “The card lives on your iPhone, in the Wallet app. And that makes all kinds of new things possible.

2. When you buy something using Apple Card, you get a percentage of your purchase back in Daily Cash. Not a month from now, but every day. There’s no limit to how much you can get. And it goes right onto your Apple Cash card, so you can use it just like cash.

3. Apple Card doesn’t have any fees. No annual, cash‑advance, over-the-limit, or late fees.”

Security

For one, TechCrunch’s security editor, Zach Whittaker, gave the card a nice fistbump.

“Chief among the benefits is a range of security and privacy features, which Apple says — unlike traditional credit card providers — the company doesn’t know where a customer shopped, what they bought or how much they paid. But its one feature — a one-time unique dynamic security code — will make it nearly impossible for anyone to use the credit card to make fraudulent purchases,” Whittaker said.

Charting new waters

Apple isn’t alone in this venture; it has Mastercard on its side to help guide it through processes that it may be new to.

In an interview with Mastercard’s Jorn Lambert, EVP of digital solutions, PYMTS learned that “the embrace of the Apple Card may span both the virtual and physical offerings, and...will likely prove useful in restaurants or bars where Apple Pay is not currently a payment option. The move from plastic to ‘digital first’ to ‘digital only’ may take several years.”

But Apple Card’s joint physical and digital card offerings may be what marks a “turning point.”

Need or want?

Credit card companies -- short of MasterCard, which is Apple’s partner in this deal -- won’t be taking this move lying down. It’s a safe bet that credit card companies around the world are getting geared up with similar products that will offer consumers more choices.

“They [Apple] are really lengthening this gap that other competitors can come into,” said credit card vlogger Brian Jung. “I believe from a business standpoint, credit cards are an excellent move, but as a credit card channel, I can't recommend this credit card to a lot of my people unless you guys are in it for the flex value. The only reason I would say to get this card now, in my opinion, it really is kind of a gimmick card because it is just for the name brand.”

It’s still a credit card

Dovetailing Jung’s point-of-view, iMore’s Rene Ritchie weighed in with this slant:

“It’s still a credit card, and that means the interest is still real, and the business model is still awful. The entire credit card industry is still absolutely and unabashedly evil. Apple's doing some good stuff to mitigate it. They're keeping [interest rates] low. They're suggesting ways to pay debt off faster, including bi-weekly and weekly payments. They're showing you how much interest you'll be paying if you choose different payment options. They're offering payment plan options to help you get debt free.”

“But the entire credit card system is still absolutely and unabashedly evil. If Apple has to get into bed with it, I'd much rather see something like American Express, the classic version, where you can't carry a balance and so there's no usurious interest rates and no debt-built business. Which, frankly, should be absolutely illegal anyway.”

The verdict?

It’s really too early to tell. The features are inviting, but like we said -- other credit card companies are likely to follow suit.

On the fintech end, it’ll be no stroll in the park for Apple, either. It has Google’s Google Pay service to contend with. Facebook’s WhatsApp is said to be rolling out a payment feature, too. And while Apple has its iPhone to carry some of Apple Card’s load via Apple Pay, Android Pay and Samsung Pay have a larger footprint around the world.

A new credit card provided by Goldman Sachs and Apple is reportedly in the planning stages. A report in The Wall Street Journal cites people involved in the project who say it will be a Mastercard product and use elements of Apple’s digital wallet, Apple Pay.

The sources say the new card is expected to launch later in 2019 around the time Apple upgrades the iPhone. While industry analysts say the card should be a winner for both companies, Arielle O’Shea, NerdWallet personal finance expert, says it could also be good for consumers.

“If reports are true and the card ends up offering 2 percent back on all purchases, it could directly compete with other top cash back cards on the market,” she told ConsumerAffairs.com.

O’Shea says Goldman Sachs would like to engage with millennials, and she sees an Apple credit card as an effective way to bond with this next generation of bank customers.

“The bank is likely hoping to piggyback on Apple's loyal following to convert users of the credit card to long-term Marcus banking customers that turn to the bank for other financial products,” O’Shea said.

Slow to adopt Apple pay

Apple Pay is widely used around the world, but the adoption rate among retailers lags far behind credit cards. The new Apple card is expected to go head-to-head with Chase’s Sapphire Preferred and Sapphire Reserve travel cards, which are already popular with millennial consumers

“Given that millennials tend to most value experiences and travel, they may continue to be attracted to travel rewards cards despite Apple's powerful brand,” O’Shea said. “Even the biggest Apple fans shouldn't blindly turn to this card: It's important to compare annual fees and features when shopping for a new card, and make sure it fits your spending habits.”

The Journal Report makes clear that consumers who are already using Apple Pay may stand to benefit the most. Cardholders may get some special features in Apple Pay such as setting a budget and managing payments.

Consumers struggling to pay off credit card debt would be wise to consider a balance transfer credit card in 2019, but picking the right one and using it effectively is key to making it pay off.

CompareCards, a division of LendingTree, has studied the terms and conditions of more than 160 balance transfer cards and found that there are still plenty of zero percent introductory rate options. But it’s important to read the fine print and use the cards to your full advantage.

The study found that 41 percent of consumers have applied for a balance transfer card in the past, but 40 percent of them have failed to pay off the entire balance during the zero percent introductory period. After the introductory period, the interest rate often adjusts to one that is higher than the national average.

The advantage of zero percent, of course, is the entire payment goes to pay down the balance. If you have been paying $200 a month on your old card, chances are most of that amount goes to pay interest. Paying $200 for 15 months with no interest charges will reduce a balance by $3,000.

Length of introductory period vs. balance transfer fee

The study points out the need to carefully choose a balance transfer card. The length of the zero percent introductory period is an important factor, but so is the balance transfer fee most cards assess. It is a fee based on the amount of money being transferred, and it can be hefty -- especially on large balances.

Most cards charge at least 3 percent of the transferred balance, but some charge as much as 5 percent. Even at 3 percent, transferring $10,000 results in an upfront fee of $300. The study shows that only one in six consumers who transferred a balance in the past were able to avoid the balance transfer fee.

Matt Schulz, chief industry analyst at CompareCards, says consumers can achieve some real savings with a balance transfer card as long as they understand the fees, deadlines, and other quirks that can come with this tool.

“Don’t wait, though. Credit card interest rates continue to rise and as they do it is likely these offers will get less and less attractive,” Schulz said.

Here are three options

The Chase Slate balance transfer card remains an attractive option for its combination of no transfer fee and fairly long introductory period. Consumers get 15 months of zero percent interest.

The Amex Everyday Credit Card from American Express also offers 15 months of interest-free payments with no balance transfer fee.

The Citi Simplicity Card offers 21 months at zero percent interest, but that extra six months of interest-free payments come at a hefty price. There is a balance transfer fee of either $5 or 5 percent of the transferred balance, whichever is greater.

The lightning-fast pace of technology has dug deeper into consumers’ billfolds. Mastercard announced on Friday that signatures will soon be optional for all cardholders, not only on the card but on receipts, as well. Mastercard issuers will start distributing the signature panel-less cards in April, 2019.

Having the luxury of get-it-and-go without having to sign anything offers consumers the ability to save time and deal with a little less hassle at the tail end of a transaction for those who “tap-and-pay.”

Mastercard didn’t come to this change quickly. In a study of 1,200+ credit card users, only 40 percent said they had put their John Hancock on the back of their cards, and one-third of those who haven’t signed said they didn’t really see any value in doing it anyway.

“With modern, advanced forms of authentication now available, removing the requirement for signature capture at the point of sale and now signature panels on Mastercard cards is an important step in support of our digital evolution,” said Linda Kirkpatrick, executive vice president, U.S. Merchants and Acceptance, Mastercard. “Issuers, merchants and cardholders will benefit from this change as faster, safer options improve satisfaction and increase sales.”

Mastercard said the move to signature-less was also delayed until cards embedded with chips became common.

Any security risk?

In Mastercard’s research, most of the survey takers didn’t believe that leaving their signature off posed a risk, and two-thirds of the respondents said they preferred biometrics over the standard signatures, PIN numbers, and passwords when paying with their card.

“We see this as a win for all. The investments we’ve made in technology like artificial intelligence and biometrics are what’s powering this next step,” said Ajay Bhalla, president of Mastercard’s cyber and intelligence solutions.

“We believe our merchant and issuing partners everywhere will embrace the ability to deliver a simpler checkout experience while maintaining the highest levels of security.”

To give consumers an extra ounce of confidence in Mastercard’s technology move, the company says that users will remain protected against fraud via Mastercard Zero Liability coverage. However, knowing the caveats of the policy will be important to ensure that there are no gaps.

If a consumer’s card ever gets compromised, the company’s Zero Liability policy states that the card user will not be held responsible for unauthorized transactions only if:

• The user has used reasonable care in protecting their card from loss or theft; and

• The user promptly reports loss or theft to their financial institution.

Verifi, an ecommerce solution provider, tells ConsumerAffairs that adding three-factor authentication through biometrics will help ensure that consumers’ identities are protected. However, there are drawbacks to consider.

“The plus for biometrics is that they cannot easily be counterfeited as they are unique to the customer and they are easily accessible for the user,” a company representative said. “On the flip side, this type of authentication is less convenient for consumers and usually requires a longer time commitment for the checkout process as the merchant is requiring an additional factor of authentication.”

American Express (Amex) is saying goodbye to its “Premier Rewards Gold Card” and hello to the latest darling in the metal card design, the “American Express Gold Card.”

The new card was conceived primarily for consumers who love -- and spend money on -- travel and food.

“We designed the new Gold Card to reward our Card Members’ growing appetites for dining out, eating in and traveling near and far,” said Rachel Stocks, American Express’ executive vice president of Global Premium Products & Benefits.

“Our Card Members increasingly want to experience new cuisines and explore new places, so when creating this new product, we focused on adding value in these areas, like the new dining credit and 4X points accelerators at U.S. restaurants and supermarkets. This is just another way that we strive to have our customers’ backs during the moments they value most.”

The biggest casualty in the card’s rehab is the rewards that were previously given for gasoline purchases. The updated Gold Card is saying “so long” to those points effective October 4, 2019.

All-you-can-eat rewards points

Effective immediately, Gold Card Members will get twice the rewards points they do now, whether they’re eating out at a restaurant or buying foodstuffs at their local grocer. The new Gold Card now offers 4X (four times) the points at U.S. Restaurants, as well as U.S. supermarkets (on the first $25,000 in annual purchases). The buying habits of the growing millennial market might have played a hand in American Express’ refocus.

“While it’s becoming common for higher-end travel cards to come with some form of statement credit for travel purchases, this is the first time we’ve seen a dining credit,” said John Ganotis, Founder of CreditCardInsider.com, in comments to ConsumerAffairs.

The new Gold Card also throws in a new $120 annual dining credit which gifts its members up to $10 per month in statement credits when they use their card at participating Shake Shack locations, The Cheesecake Factory, Ruth’s Chris Steak House, and Grubhub/Seamless.

Like to travel?

In addition to Amex’s new dining and food bonuses, the Gold Card is upping the ante for travel lovers. Those fringe benefits include:

• 3X Membership Rewards points on flights booked directly with airlines and amextravel.com;

• $100 airline fee credit: up to $100 in statement credits per year for incidental expenses like baggage fees at one selected airline;

• The Hotel Collection: Gold Card Members get a $75 hotel credit on qualifying charges, plus a room upgrade upon check-in, when available, when they book a stay of at least two consecutive nights at hotels in the collection;

• Personalized Travel Service: provides access to a team of Travel Professionals who can help with travel bookings and vacation packages across air, hotels, transportation, cruise and tour; and

• Gratis membership to The Travel Collection by Travel Leaders Group where cardholders can pick up additional discounts and amenities when booking their travel.

The perks are nice, but they’ll cost you

The old Premier Reward Gold Card’s annual fee was $195 and, if that was a little too much to swing, hang on to your hat.

The refreshed Gold Card will cost you an annual fee of $250. The new fee will go into effect for current Premier Rewards Gold Card Members starting April 1, 2019, the card’s annual account renewal date.

Credit card issuers have stepped up their game in recent months, introducing cards with more perks and upgrading current cards to make them more attractive to consumers.

Earlier this month Chase teamed up with Expedia to provide extra travel booking options on its Chase Ultimate Travel Rewards card. Also this month American Express added fraud protections, allowing cardholders to place temporary freezes on their cards' use.

Now, Navy Federal Credit Union is relaunching its Visa Signature Flagship Rewards credit card, currently in the wallets of about 98,000 consumers. The new card, which launches September 5, provides an increase in rewards and other perks. The credit union says the makeover transforms the card from a traditional rewards card to one "fit for travelers, adventure seekers and everyday commuters."

More points

Cardholders will get three times the points on all travel related spending, including ride sharing and trains. All other non-travel purchases will get two times the points. One point is worth 1 cent when redeemed for cash, travel or gift cards.

Other perks include:

• Up to $100 statement credit for Global Entry or TSA Pre-Check®

• One point is now equal to $0.01 when you redeem for cash, travel or gift cards

• No foreign transaction fees

• No balance transfer fees

• No limit on rewards earned and rewards never expire

The annual fee is waived for the first year but the card carries a $49 a year fee after that.

Taking a shot directly across the credit card industry’s bow, Kroger’s California subsidiary Foods Co will no longer accept Visa as a form of payment.

Effective August 14, 2018, the Visa payment option will vanish from 26 Foods Co stores and fuel centers. It’s a strong first punch from the chain in retail’s continuing weariness over the estimated $90 billion paid in swipe fees every year.

“Our customers consistently tell us that one of the most important factors in choosing Foods Co as their supermarket of choice is our low prices,” wrote Bryan Kaltenbach, president of Foods Co, in a news release.

“We realize this will be a change for some customers, but we believe this change will benefit all our customers by allowing our Foods Co stores to continue to offer the things our customers value most, including our low prices, fresh produce and services more than payment type.”

Kroger CIO Chris Hjelm said in an interview with Bloomberg News that Food Co’s parent company might follow in its footsteps.

“It’s pretty clear we need to move down this path, and if we have to expand that beyond Foods Co, we’re prepared to take that step,” Hjelm said. “When the amount retailers pay in card fees gets out of alignment, as we believe it is now, we don’t believe we have a choice but to use whatever mechanism possible to get it back in alignment.”

Foods Co customers will still have plenty of available payment options at retail locations, including Visa debit cards, SNAP, MasterCard, American Express, Discover credit cards, and, naturally, cash and checks.

The cost of doing business?

The National Retail Federation (NRF) reports that swipe fees are often cited by retailers as the second or third highest cost behind wages and health benefits. Industry profits barely get over the 2 percent mark, and the added expense of credit card costs are usually passed on to consumers in the price they pay for goods.

By the NRF’s estimate, the typical household is quietly charged with hundreds of dollars in additional expenses per year thanks to price markups retailers use to offset swipe fees.

Swipe fees average around 2 percent but can be double that for premium rewards cards. VISA and MasterCard establish the fee structure, and participating banks issuing the cards agree to charge the same.

In a statement to ConsumerAffairs, R.K. Hammer -- Chairman and CEO of the credit card advisory firm Payment Industry Consultants -- said that Kroger's decision is likely more of a challenge to Visa over its swipe fees.

"Eliminating the largest payment brand in the world may not be something that Kroger’s shoppers will at all appreciate. I suspect that the 'test' being done in one tiny network of Kroger’s affiliates is designed to get Visa’s attention, and perhaps restructure a more acceptable, lower swipe fee. Maybe it will work. Maybe it will backfire. Time will tell," he said.

Is this legal?

Kroger is not the first retailer to try and bring a credit card company to its knees. In 2013, merchants in New York challenged the constitutionality of a state law forbidding merchants from imposing a surcharge on any customer who pays with a credit card.

And, just last month, the U.S. Supreme Court ruled that American Express' credit card rules for merchants, and the fees that it charges, do not violate antitrust laws.

The grocery giant’s volley comes on the heels of Walmart's move to jettison Synchrony Financial after the two couldn't agree to terms. Amazon is also said to be in talks with JPMorgan Chase, Capital One, and other banks and financial firms about creating a “checking-account-like” product for its customers, a move that could save the company $250 million.

Despite all the pushback against the credit card industry, Visa seems undaunted. Last year, Visa reportedly offered thousands of dollars to small merchants if they agreed to stop taking cash.

The credit card company called its path a "journey to cashless,” sermonizing that “At Visa, we believe you can be everywhere you want to be, and that it should be easy to pay and be paid in more ways than ever – whether it’s a phone, card, wearable or other device.”

There are several things consumers can do to raise their credit score, but carrying a credit card balance is not one of them.

Yet, a new survey from CreditCards.com shows 22 percent of consumers have carried a balance on the mistaken belief that it would add points to their credit score. All they got was a higher interest charge.

Having a credit card account does help your credit standing. Consumers get points when a lender extends them credit.

They get even more points when they use credit wisely. Paying off the balance each month makes a consumer look responsible in the eyes of a lender. On the other hand, utilizing too much of their credit line on an ongoing basis can drag down a credit score.

New idea

The idea that carrying a balance raises a credit score may be relatively new. The survey showed the younger you are, the more likely you are to believe it.

Education also plays a role. Twenty-seven percent of cardholders without a college education have carried a balance, thinking they'll help their credit score. Only 12 percent of college graduates have done so.

"It's painful to know that so many millions of Americans are essentially attempting to pay their card issuers to improve their credit scores," said Matt Schultz, CreditCards.com's senior industry analyst. "The fact of the matter is that carrying a balance will never improve your score."

With interest rates now rising, Schultz says consumers should make every effort to pay off their credit card bills in full each month. At the very least, they should pay on time.

Pay on time

Paying bills on time is one of the most important factors affecting credit scores. Paying on time will raise the score, missing a payment or paying late will drag it down.

Yet 42 percent of the consumers in the survey admitted to being late in paying their credit card bill -- with 24 percent doing so more than once. Schultz says many of these late or missed payments might have been avoided with a little organization.

Seventy-one percent of cardholders who said they missed a payment did so because they forgot to pay it, were busy, or were out of town. In addition to damaging a credit rating, a late payment can be costly, since most credit card companies assess a late fee of $30 or more.

Unfortunately, there are other reasons consumers missed credit card payments. Among those who are habitually late in making their payment, the most often cited reason is not having the money.

Venmo has announced that it is launching a new MasterCard debit card that will allow users to make in-store and online payments with their Venmo balance.

The card, which is issued by the Bancorp Bank, is being rolled out in an effort to expand Venmo’s monetization potential and help the company reach more younger consumers.

The peer-to-peer payment app says that if a cardholder has a low balance, the card will reload using the user’s preferred funding source. Venmo says its new card will allow up to $400 in daily withdrawals. There’s a $2.50 fee to withdraw money from your Venmo account using an ATM, but no fee to make regular purchases.

Card purchases will show up on a transaction history in the app, which will give users the ability to split charges among friends. Also within the app, users can deactivate the card when it’s misplaced and then reactivate it when it’s found.

The card features a vertical design and comes in a choice of six colors -- yellow, pink, blue, green, black, and white. It has a chip for security and an icon near the chip that indicates support for contactless payments.

Venmo says users can now “get in line” for the card, adding that it’s striving to quickly move people off the waitlist and process applications. There’s no fee to sign up for it, and it should arrive within 5 to 7 days after approval. The card can be used everywhere MasterCard is accepted, but only in the United States.  

Last fall, PayPal added the ability for Venmo users to shop on the mobile web at almost everywhere PayPal is accepted. In the first quarter of this year, Venmo processed around $12 billion in payments.

When Visa recently introduced changes to its Visa Claims Resolution (VCR) policy, consumers found they were able to resolve credit card charge backs faster and more efficiently, a new report says.

MyChargeBack, a company assisting consumers in reversing disputed credit card payments, has found the new VCR is making it easier for consumers to recover their money.

The policy change was introduced last year and standardized procedures and timetables. Alan Tepfer, MyChargeBack's director of client strategies and fund recovery, said Visa's streamlined processes and automation has actually reduced the number of disputed credit card charges.

"The most significant improvement in the system is that Visa is taking every possible precaution to avoid disputes before they begin and speed them up once they do," Tepfer said. "Card holders now receive more detailed monthly statements, improved attention to customer service, an extra layer of security checks, and quicker approval of chargebacks when they are entitled to them."

What's a chargeback?

A chargeback occurs when a consumer makes a credit card purchase, then determines the sale was made under deceptive or false pretenses. If the merchant refuses to offer a refund, the consumer can then go directly to the credit card company and ask that it retrieve the money from the merchant.

Tepfer says consumers are now seeing a faster response when they request a chargeback. He credits Visa's streamlining of the dispute categories from 22 to four, and reducing the time limit that merchants have to respond, from 45 days to 30 days. In the future, he says that will fall to just 20 days.

"A major benefit for consumers is that merchants are now required to disprove customer evidence up front," Tepfer said. "Since no additional information is allowed be added afterwards, the merchant now has just a single opportunity to deny the consumer's allegations before Visa reaches its decision regarding the case."

Disputing a charge

The flip side of that, of course, is that consumers also have just one opportunity to present their evidence, so it's important to have all your facts straight.

Creditcards.com advises that a consumer's first step in a dispute is to request a refund from the merchant. If the merchant is not cooperative, call the customer service number on the back of your credit card and tell the representative you want to dispute a charge.

Different issuers may have different requirements, so follow their specific instructions. Provide any records or evidence to bolster your case.

Some of the most commonly accepted reasons for a chargeback include not receiving the item you ordered, receiving a substandard product, being incorrectly billed, and being billed for something you didn't order.

This month, four of the largest credit card companies -- American Express, Discover, Mastercard, and Visa -- will stop requiring a signature for purchases made with a card that uses a security chip.

Credit card companies say the computer chips embedded in cards are much more effective at preventing fraud than scribbled signatures, since merchants rarely verify a person’s signature after asking for their credit card.

Experts say consumer signatures have become virtually meaningless in the age of chip cards and contactless payment systems (like Apple Pay), so phasing them out won’t likely have much of an impact.

Transitioning away from signatures

The change is optional, meaning some shops and restaurants -- such as those without chip card compatibility, for instance -- may not adopt the change right away. However, major retailers like Walmart have already decided to stop requiring signatures on card transactions.

Walmart considers signatures “worthless as a point of sales verification” and has already stopped recording them on most transactions, according to a company spokesman. It plans to get rid of them completely in the near future. Target will eliminate signature requirements this month.

The change will likely speed up the checkout process and likely won’t even be noticed by many consumers.

According to research by Mastercard, nearly one in five Americans (17 percent) don’t remember the last time they used their signature outside of a sales receipt, while 20 percent of those 18-34 years and 14 percent of those 55 and older don’t remember.

Chip is better at preventing fraud

Mastercard said the change had been a long time coming, but the decision to do away with signature requirements was delayed until cards embedded with chips became common. A separate report by Visa found that counterfeit fraud has dropped 70 percent since chip cards were introduced in October 2015.

“Our fraud capabilities have advanced so that signatures are no longer necessary,” said Jaromir Divilek, American Express’s Executive Vice President of Global Network Business, in a statement.

The four largest credit card companies in the nation will stop requiring merchants to ask for customers’ signatures starting April 14.

Considering a new credit card? Temkin Group has released its 2018 credit card ratings, giving USAA and Discover the highest marks for customer experience.

Temkin reviewed 11 companies that issue credit cards and gave USAA the highest score, with a rating of 77 percent. Discover finished second with a rating of 75 percent.

As an industry, credit cards fell slightly from last year's overall ranking. Here's how the various card issuers stack up:

1. USAA: 77 percent

2. Discover: 75 percent

3. Barclaycard: 73 percent

4. Chase: 72 percent

5. American Express: 71 percent

6. Citigroup: 68 percent

7. U.S. Bank: 68 percent

8. Capital One: 67 percent

9. Bank of America: 66 percent

10. Wells Fargo: 64 percent

11. HSBC: 52 percent

'Legitimate improvements'

"In 2017, many of these credit card issuers saw double-digit increases in their scores," said Bruce Temkin, managing partner of Temkin Group. "The fact they managed – for the most part – to sustain those higher scores shows that those gains were not just an anomaly, but actually represented legitimate improvements to their customer experience."

USAA serves the military community, both active duty and retired, along with family members. It offers the Preferred Cash Rewards Visa Signature card, providing 1.5 percent cash back on every purchase.

It also issues the Cashback Rewards Plus American Express card, paying 5 percent cash back on the first $3,000 in gasoline and military base purchases. It pays 2 percent cash back on your first $3,000 in supermarket purchases and 1 percent on everything else.

Temkin says USAA's customer experience score showed the most improvement over the previous year, rising four percentage points. HSBC's score fell the most year-over-year, declining by 17 points.

Rewards credit cards are popular with consumers. Some cards pay cash back on purchases while some provide travel perks.

But consumers who load those cards up with debt that they carry month to month will find that interest charges erode many of those rewards. A recent survey by CompareCards.com found that 39 percent of consumers with a rewards card carry a balance. The researchers say the average balance is $2,547.

The net result isn't all that rewarding. Let's assume that the average cash back on those purchases is 1.5 percent; that means a consumer would earn $38.20 in rewards. But with the average credit card interest rate north of 16 percent, the cardholder pays hefty interest on that balance each month.

In a year's time, interest charges would amount to at least $407.52. While it's true that the rewards offset at least a small portion of those charges, the consumer would have been ahead by paying the balance in full each month.

Rewards should be used for something fun, not paying interest. Ironically, the survey found that the most popular use of rewards was paying down debt.

Many consumers have more than one rewards card

The survey also found that while most people with rewards credit cards only had one or two, a quarter of those in the survey said they carried three or more rewards credit cards.

The authors point out that having a lot of rewards cards isn't necessarily a problem, as long as you don't run up debt on all of them. When you do, they don't reward you -- they cost you.

If you have a credit card with a large balance, the most rewarding credit card -- the one that saves the most money -- is a balance transfer card with zero percent interest for a lengthy introductory period.

An example

The Chase Slate Card is just one of several balance transfer cards, but it is attractive because there is no balance transfer fee if the transfer is made within 60 days of opening the account. The cardholder would pay no interest on the transferred balance for 15 months.

Using the example of a $2,547 balance at 16 percent APR, eliminating the $407.52 interest charges beats the cash back rewards most credit cards will pay. Monthly payments of $169.80 would pay off the balance in 15 months without paying any interest.

That’s not a bad reward.

A new survey of consumers who carry chronic balances on their credit cards shows much of their spending is on basic daily needs–making ends meet.

The research from credit card site CompareCards.com found 42 percent of consumers in the survey group reported their shortage of cash at the end of the month was a significant driver in running up debt.

Aside from gasoline and groceries, consumers reported that emergency expenses such as car repairs and medical care went on credit cards because money was not available.

Bruce McClary, a vice president at the National Foundation for Credit Counseling, which represents non-profit credit counselors, says the survey should raise some warning flags.

'Disturbing'

"What I find disturbing about this survey is that it shows consumers are rolling over more than $5,000 in balances from month to month, coupled with the fact that much of that debt–some 42 percent–is related to simply making ends meet, covering expenses that would ordinarily have been covered using cash," McClary told ConsumerAffairs.

The survey focused on reasons for credit card debt and the stress that it causes among consumers. Millennials are more likely than older consumers to feel stress, yet baby boomers are having a harder time than millennials paying off their debt.

Also disturbing, the survey found about 28 percent of consumers had two or more credit cards with a balance they can't pay off in full.

"We are clearly in a trend where more people are falling behind on their credit card payments and people are carrying larger balances," McClary said. "That combination can be very dangerous."

The survey can be subject to different interpretations. Despite a soaring stock market and improving job market, a sizable group of consumers may still be struggling financially.

At the same time, McClary says some consumers with job security may have become too comfortable with debt over the last few years and are now in over their heads. He says it's easy to do.

Long term costs

"Consumers should think about the long term costs of the things they're buying on credit, he said. "If their credit card is simply charging them the average interest rate, which right now is around 16 percent, you can be adding a lot to the cost of the item you're buying."

McClary cites the example of carrying a $1,000 balance and paying the minimum $25 a month at 16 percent APR. At that rate, he says consumers would pay an additional $400 by the time they paid off the balance.

It might be difficult, but McClary says consumers struggling with credit card debt can turn it around.

"In my 20 years of non-profit credit counseling I have always found that there is the possibility of finding room in the budget for savings," McClary said. It's just a matter of where you look and how hard you're willing to work to make those adjustments."

For help, he suggests contacting a non-profit credit counselor. While some consumers may have little or no discretionary spending that can be cut, a credit counselor can suggest tactical moves that can save money on existing financial obligations.

Consumers are putting more spending on credit cards, which is fine if it's paid off in a reasonable timeframe. But when the balances are allowed to grow, that can be trouble.

The folks at personal finance site WalletHub keep track of consumers' credit card habits and report we all did a pretty good job of paying down balances during the first three months of the year. After a record-setting year debt-wise, we paid off more than $30 billion in the first quarter.

But in the second quarter, the plastic came out of our wallets again. WalletHub reports consumers charged $33 billion in new debt.

"So it’s not a question of whether consumers are weakening financially, but rather how long this trend toward pre-recession habits will last and just how bad it will get," the authors write.

$60 billion in new debt

The report projects consumers will end up adding more than $60 billion in new credit card debt by the end of the year, pushing the total well past the $1 trillion level. This is a problem for three reasons.

First, a lot of credit card purchases are for things that aren't lasting -- things like meals in restaurants or vacations. When these bills are not paid off completely and allowed to build up, you're spending today's and tomorrow's money for things you consumed yesterday.

Second, debt cuts into your monthly cash flow so that you don't have as much money in your budget. If you are making $250 minimum payments on your credit card bill, you can't spend that $250 on things you need this month and you aren't making much progress on paying off your balance.

That brings us to the third problem: the interest rate is-sky high. The average interest rate is over 16% and will go even higher if the Federal Reserve continues to hike interest rates.

Staying out of trouble

The best way not to get in trouble with your credit card is to pay off the balance in full when the bill arrives. That way you aren't adding to your total. If you don't think you can pay for everything in one month, don't charge as much.

From time to time you might take two or three months to pay for a major purchase, like a new water heater, but make sure you pay for all the smaller purchases, plus a portion of your major expenses, with your monthly payments until the balance is back at zero.

If you are already in trouble and struggling to pay off your credit card balance, apply for a balance transfer credit card with a generous introductory period in which you pay 0% interest. If you can avoid double-digit interest for a year or more, then 100% of your monthly payment goes against the balance.

Just make sure you continue to pay for all your monthly purchases -- plus a payment on the balance -- each month.

American Express is paying $96 million in redress to Spanish-speaking consumers in Puerto Rico, the U.S. Virgin Islands, and elsewhere as part of an agreement with the Consumer Financial Protection Bureau (CFPB).

The bureau said that two American Express banking subsidiaries discriminated against the Spanish-language consumers by providing them with credit and charge card terms that were inferior to those available in the 50 states.

“Consumer financial protections are not confined within the 50 states,” said CFPB Director Richard Cordray. “American Express discriminated against consumers in Puerto Rico and the U.S. territories by providing them with less-favorable financial products and services."

Cordray said that no civil penalties were being assessed because American Express discovered the problem, reported it, and "fully cooperated" with the CFPB's investigation.

Over the course of at least ten years, more than 200,000 consumers were harmed by American Express’ discriminatory practices, which included charging higher interest rates, imposing stricter credit cutoffs, and providing less debt forgiveness, the CFPB said.

American Express has already paid approximately $95 million in consumer redress and today’s order requires it to pay at least another $1 million to fully compensate harmed consumers.

The full text of the CFPB’s consent order is available here.

The Consumer Financial Protection Bureau (CFPB) is urging retailers to clear up some confusion surrounding store credit card promotions.

Specifically, the agency called for more transparency when retailers make promotional offers like “no interest for 90 days,” which is essentially a “deferred interest” promotion. The consumer who makes a purchase with the store's card pays no interest if they pay off the entire balance within the set time limit, such as 90 days.

But if they fail to pay off the entire balance in the prescribed time period, they are then charged the full interest on the purchase, which can blindside consumers who didn't understand the terms of the promotion.

Letters to retailers

The CFPB has fired off letters to major retailers asking them to consider more transparent promotions, like 0% interest during the introductory period. A number of credit card issuers take that approach, not charging interest for the first 12 to 21 months the account is open, if certain conditions are met, such as making a purchase during the first 60 days.

“With its back-end pricing, deferred interest can make the potential costs to consumers more confusing and less transparent,” said CFPB Director Richard Cordray. “We encourage companies to consider more straightforward credit promotions that are less risky for consumers.”

CFPB says one major retailer recently took that step, announcing it will drop its deferred-interest promotions in favor of a promotional period with 0% interest, much like the credit card companies offer. With that approach, consumers don't get hit with unexpected interest charges if they haven't paid off the balance by the time the promotional period ends.

How to tell the difference

How can you tell a deferred-interest promotion from a 0% interest one? CFPB cautions consumers to look for the word “if.” When an offer says “No interest if paid in full in 12 months,” that's a deferred-interest pitch. Escaping interest charges is fully conditional upon paying off the balance in the allotted time.

On the other hand, 0% interest offers say something like “0% intro APR on purchases for 12 months.” That means you are only on the hook for interest charges for the amount of the unpaid balance at the end of 12 months. It's a much better deal.

The problem is that consumers often confuse the two types of offers because they sound similar. The CFPB says the number of purchases using deferred-interest promotions jumped 21% between 2010 and 2013.

For consumers making a major purchase at a retailer whose store card only offers a deferred-interest promotion, consider this option: apply for a credit card, such as the Citi Diamond Preferred, that offers a lengthy introductory period at 0% interest, and purchase with that card instead.

A few years ago total student loan debt in the U.S. topped the $1 trillion mark, causing many economists to express concern. Now, a new report from the Federal Reserve shows total credit card debt is rapidly closing in on that milestone.

Overall, the Fed reported that total consumer credit increased in April at a seasonally adjusted rate of 2.5%. Of that total, revolving credit, which includes credit card debt, increased 1.8%.

In breaking down the data, personal finance site WalletHub found that consumers repaid more than $31 billion of their credit card debt in the first quarter, a big improvement over last year. Still, it was below the average first quarter pay-down since the Great Recession, and could be cause for concern.

The stepped-up pay-down came on the heels of a huge run-up in credit card bills last year, so there was a lot to pay off – and a lot still unpaid. Crunching the numbers further, the WalletHub editors project that U.S. consumers will add some $60 billion in new credit card debt in 2017, ending the year with a total balance over the $1 trillion mark.

Cautionary flag

Here's why the WalletHub editors are raising a cautionary flag: last year consumers started the year with a very weak pay-down of credit card debt. It finished the year by adding post-2007 records for new debt in the second, third, and fourth quarters.

“So it is not a question of whether consumers are weakening financially, but rather how long this trend toward pre-recession habits will last and just how bad it will get,” the editors write. “And WalletHub projects that we will end 2017 with more than $60 billion in new credit card debt. That would mean we’d owe well over $1 trillion in credit card debt overall.”

And credit card debt is very expensive debt. The average rate on credit card balances is currently at a record high of 15.83%. While this poses challenges for the economy, it also can put individual households in a bind, limiting their ability to make other purchases.

Credit card management tips

If you are struggling to pay off credit card debt, here are some tips that might make the process more manageable:

• Make a budget and stick to it. Use any eliminated expenses to pay down credit card balances faster
• If you can manage to save some money each month, put it toward an emergency fund. It may take a while to build it up, but it can provide a way to pay for an unexpected expense, instead of putting it on plastic.
• If you have marginal credit, work on improving it. The best way to do that is to pay every bill on time. As your credit score rises, you may be able to qualify for a balance transfer card offering a lengthy introductory 0% interest rate period.
• If you have more than one credit card balance, work on paying off the highest interest account first.

Choosing the right credit card is important. After all, some cards are more rewarding than others.

But in addition to how much cash back a card gives you, or how many miles in offers, there are other things to consider. How useful is the card in certain situations? In particular, how useful will it be to you in your specific situations?

For example, one card might be just fine if you never leave the country. But if you travel abroad every once in a while, you might consider a card that takes that into consideration.

Personal finance site WalletHub has compiled a report, comparing 69 of the most popular credit cards on the benefits they extend to international travelers. Among the things the report took into consideration are foreign transactions fees, and whether the card issuer requires notification before the cardholder leaves the U.S.

Top cards

Coming out on top is the Barclaycard Arrival Plus World Elite Mastercard. The card's very name suggests it was designed for travel, and it is.

Close behind are the USAA Visa Signature Card, the Citi Prestige Card, the Citi Thank You Premier, the BankAmericard Travel Rewards Visa Signature Card, and the Merrill Visa Signature Card.

Each of the cards have international-friendly aspects, some of which rate higher than others in the methodology. You can see the complete rankings here.

Key findings

Among the key findings, Barclaycard, USAA and Capital One are the best credit card companies for international travelers. Three of the largest card issuers do not charge a foreign transaction fee.

Two companies -- American Express and Capital One -- are the only card issuers that can automatically detect when you have left the United States, and do not require cardholders to notify them.

Finally, only three of the top 10 card companies will send you a free replacement card if yours is lost or stolen while traveling overseas. Four will send a replacement card, but not for free. Wells Fargo charges as much as $50 for a replacement card. U.S. Bank, Discover, and Capital One do not ship to international addresses, according to the report.

In the last decade, credit card companies have stepped up the rewards they offer to cardholders, providing everything from cash back to points toward travel discounts.

Surveys have found consumers like these rewards, and the offers often sway a decision on whether or not to apply for a card.

But once you have a card in your wallet, what do you do with the rewards? A new report by financial website Bankrate.com addressed that question and found 31% of consumers with a rewards card have never redeemed the rewards.

In fact, most of us fall into one of two categories: either we are nearly obsessive about redeeming rewards or we don't do it at all. Bankrate's Robin Saks Frankel says it's hard to figure out.

Not gaining value

"Credit card rewards don't usually gain value over time," Frankel said. "In fact, they're more likely to lose value as companies require more points or miles for the same perks. Your best move is to cash them in regularly."

Bankrate found that when consumers do take advantage of their rewards, nearly half prefer to get cash back. That's actually a very savvy choice.

It might be hard to place a quantitative value on other types of rewards, such as airline miles or hotel points. But cash is money in the bank. It can be accumulated to pay for a purchase or can be applied each month to pay a portion of the bill.

Of all the types of rewards, cash seems like the most useful. Millennials favor it over older consumers by a wide margin.

Airline miles a distant second

The Bankrate report found airline miles were a distant second, with only 17% of consumers opting for this perk. Twelve percent of consumers prefer to get their rewards in the form of gift cards.

One drawback to some of the more generous rewards cards is a sometimes hefty annual fee. With so many other rewards cards available with no fee, it's wise to carefully consider all offers before selecting a card that charges a fee.

"The credit card market is very competitive right now, so if you're not happy with a fee, you can either shop around to find another card that doesn't have one or you can see if the issuer is willing to waive the fee to keep your business," Frankel said.

In fact, as we recently reported, a study found more than 80% of cardholders were able to get an annual fee waived or reduced just by asking.

Consumers hate fees, whether they are levied by a bank or credit card company. Overdraft fees were such a major bone of contention a few years ago that Congress passed legislation to reduce them.

But fees don't always have to be paid. Sometimes, if you ask, a credit card company will waive them. And it happens a lot more than you might think.

CreditCards.com reports its latest research which shows that 87% of consumers who asked a credit card company to waive a late fee were successful. It also found that 69% of the time, if a customer asked a credit card company to lower the interest rate, the answer was "yes."

While it is true that banks and credit card companies depend more on fees than ever these days, it is also true that they are in a very competitive industry. Consumers have lots of options.

Competition works in your favor

In many cases, a credit card company would rather waive a fee once than possibly lose a customer. If a customer has a good credit score, he or she can open a new credit card account and transfer a high interest balance, often getting more than a year of 0% interest. Credit card companies know this.

That said, CreditCards.com found that only 25% of credit card customers ever asked for a waived fee or a lower interest rate. That means consumers are spending money needlessly.

There's even wiggle room when it comes to annual fees. Many rewards credit cards charge as much as $100 or more for the privilege of using their cards. But CreditCards.com found more than half of credit card customers in the U.S. were able to persuade the company to drop the fee altogether. Thirty-one percent were able to negotiate a lower fee.

More power than you realize

"People have far more power with their credit card company than they realize," said Matt Schulz, CreditCards.com's senior industry analyst. "Competition among card issuers is incredibly high these days and customer retention is a priority."

Schulz says you can't be afraid to ask for an exception because, very often, you're likely to get it.

That also holds true for credit limits. Of those customers who simply asked their credit card company to raise the card's credit limit, 89% got what they asked for.

As we have previously reported, this also works in other highly competitive services, such as insurance. If you have been with your insurance carrier for several years, chances are you can get a discount by saying you are shopping for a new policy.

If you are a senior citizen, or getting close to being one, you can get a discount almost anywhere. But, you have to ask for it. Again, surveys show most people don't.

In the wake of the financial crisis, millions of consumers became "unbanked," meaning they had no bank account.

Some became "unbanked" by choice, but many were either dropped by their banks or could no longer afford the fees associated with bank accounts.

These consumers often turned to prepaid debit cards as an alternative. These cards provided easy access to cash and an ability to pay bills online. But just like banks, these cards were often loaded with fees, including hefty overdraft fees.

In October, the Consumer Financial Protection Bureau (CFPB) finalized rules to increase consumer protections for prepaid card users. The rules require prepaid card issuers to provide many of the same protections to consumers that credit card companies provide. They also require issuers to give consumers clear information about fees before an account is opened.

Lawmaker claims rules hurt consumers

Now, seven Republican members of the U.S. Senate are seeking to block implementation of those rules. Sen. David Perdue (R-Ga.) is the primary sponsor of the legislation, claiming the rules are actually hurting consumers who use prepaid cards.

“If the CFPB wants to continue to impose rules and regulations that impact every American’s financial well-being, it must answer to the American people,” said Perdue, a member of the Senate Banking Committee. “As a business guy, I have experienced first-hand the impact overregulation has on growth and innovation. This rule is entirely too broad and would cripple the electronic payment marketplace which Georgians and millions of consumers across the country depend on.”

But the National Consumer Law Center (NCLC) contends that isn't the case at all. It claims the primary beneficiary of the CFPB rules rollback would be a prepaid card company called NetSpend (an Authorized Partner), whose parent company, TSYS, is based in Perdue's state.

More overdraft fees

NCLC contends a successful repeal of the rules would result in Netspend (an Authorized Partner) collecting $80 million a year in overdraft fees while blocking the expanded fraud protections.

“It is outrageous that Congress may block basic fraud protections on prepaid cards so that NetSpend (an Authorized Partner) can keep gouging struggling families with overdraft fees that have no place on prepaid cards,” said Lauren Saunders, associate director of the NCLC.

Sauders says the move is a continuation of the GOP's campaign against the CFPB, which was established under Dodd-Frank financial reform legislation. GOP lawmakers say the CFPB is not accountable as other government agencies are and has repeatedly overstepped its bounds.

But Saunders say CFPB has been an effective consumer watchdog that has returned nearly $12 billion to consumers since it was established.

Not all travel rewards credit cards are alike. In addition to the variety of perks they offer, they tend to also reward different kinds of travel.

An airline card rewards frequent flying. A gasoline card provides extra cash back when you fill up. And a hotel credit card can give you a free night's stay here and there. Sometimes, it can give you a lot more.

When it comes to hotel credit cards, the card comparison site CreditCards.com singles out the Starwood Preferred Guest card as number one in its class. It sets itself apart with its flexibility.

It not only provides hotel perks, its points can be transferred to more than 30 airline loyalty programs, usually without any loss of points. And because Starwood points are generally worth more than other card points, cardholders usually get more bang for their buck.

All about flexibility

"To me, a good rewards card is all about flexibility," says CreditCards.com senior industry analyst Matt Schulz. "While the Starwood card doesn't have the flashiest sign-up bonus in the bunch, it does give cardholders plenty of options beyond just free hotel nights."

Starwood Hotels is owned by Marriott and operates more than 1,200 hotels under 11 brands, including Westin, Sheraton, and St. Regis.

New cardholders earn 25,000 bonus points after spending $3,000 during the first three months the account is active. There's a $95 annual fee that is waived the first year.

Other options

CreditCards.com also likes the Hilton HHonors Reserve credit card from Citi. New cardholders get rewarded with two free weekend nights at a Hilton hotel after spending $2,500 in the card's first four months.

Cardholders also receive an extra weekend night certificate every year when they spend at least $10,000. Other perks include trip cancellation and interruption protection, lost baggage insurance, and other extra insurance benefits.

“The only downside is Hilton points tend to be worth significantly less than the average card rewards point,” CreditCards.com says.

A third alternative is the Club Carlson Rewards Visa Signature card. CreditCards.com is impressed with its initial sign-up bonus – 50,000 points with the first purchase and 35,000 more after spending $2,500 in the first 90 days.

Cardholders can also earn 40,000 points and a free night every year if they spend $10,000 or more. But just like the Hilton HHonors Reserve card, the points provided by the Club Carlson card tend to be valued less than the industry average.

The nation's retailers appear to be renewing their feud with credit card companies over the fees they charge for processing credit and debit purchases.

Earlier this week, the National Retail Federation (NRF) filed a friend-of-the-court brief in support of the Justice Department motion that the full Second Circuit Court of Appeals hear its case against American Express. The government maintains American Express is still blocking retailers from suggesting customers use a different card, in violation of the law.

Now, the NRF has sent a letter to Visa, asking that it stop using new EMV terminals to steer debit card transactions to its own processing network, which NRF says is more expensive for retailers to use.

In a letter to Visa CEO Charles W. Scharf, NRF points out the Federal Reserve has said Visa's action run counter to the law.

More expensive choice

NRF complains that many credit/debit card readers installed since the card industry began implementing new EMV chip card technology present debit card users with a screen that asks them to choose between “Visa Debit” and “U.S. Debit.”

Though they don't know it, when consumers choose Visa Debit, their transaction is routed over Visa's more expensive network. Instead of a PIN, the consumer is usually required to use only a signature to approve the transaction.

On the other hand, when a consumer chooses the U.S. Debit option, NRF says the transaction goes over the retailer’s choice from about a dozen competing networks that charge merchants less but provide more protection by allowing the use of a secret, secure PIN.

“Visa charges more and offers less security while the competition charges less and does a better job of keeping consumers’ debit cards safe,” NRF Senior Vice President and General Counsel Mallory Duncan wrote.

Retailers say they should choose

Duncan says retailers should be allowed to choose the processor that provides the best value and offers their customers the best protection. He says that's what the law requires.

Why should consumers care? NRF says when costs rise for retailers, those costs get passed along to consumers in the form of higher prices.

NRF claims Visa is steering transactions toward the Visa network, and that the higher fees charged by Visa must be built into the cost of merchandise, ultimately contributing to higher prices paid by consumers.

The organization says the Fed ruled in early November that Visa's actions violate a 2010 debit card reform law that says retailers must be allowed to choose between at least two unaffiliated networks to process debit transactions.

It takes seven years for a foreclosure, short sale, or bankruptcy to come off a consumer's credit report.

Since the height of the foreclosure tsunami was 2009, a lot of former homeowners, whose credit has been practically non-existent since then, are getting back on their financial feet.

According to an analysis by Experian, one of the three credit agencies, 2.5 million consumers will see their credit standing improve sharply between last June and next June. Of these, the credit agency says 68% are scoring at near-prime or higher credit levels.

Back in the credit market

It means that millions of consumers, largely shut out of the credit market since 2009, will be able to take out loans again. Those who want to buy a home again will most likely qualify for a mortgage, putting even more pressure on extremely tight inventory levels around the country.

Experian also reports that formerly foreclosed or bankrupt borrowers who have already shed those events from the credit reports have returned to the credit markets in large numbers and, by and large, are showing good financial behavior.

The Experian analysis shows 29% of consumers who sold short between 2007 and 2010 have opened a new mortgage, with a delinquency rate that is a full percentage point below the national average.

Win-win

"With millions of borrowers potentially coming back into the housing market, the trends that we're seeing are promising for both the mortgage seeker and the lender," said Michele Raneri, vice president of analytics and new business development at Experian.

Raneri predicts that in the years ahead, these so-called “boomerang borrowers” will be a critical segment of the real-estate market, and perhaps could propel prices still higher.

The Experian report shows that homeowners who had a foreclosure in the past but now have qualified for a mortgage have an average credit score of 680, more than 20% higher than their score at the time of foreclosure.

The record is even better for consumers who sold short. Those who have now qualified for a new mortgage have an average credit score of 706, up 16.5% from when they were forced to sell.

What will you use to make your holiday purchases this year? Consumers concerned about compromised credit or debt card information may choose cash.

A survey by TransUnion shows consumers are probably going to use a mix of payments to buy things this year, with 74% saying they plan to pay for at least some of their purchases with cash.

But 80% of parents with children under 18 said they will be using credit cards, with 89% of dads and 73% of moms saying they expect to pay off all their holiday spending within three months.

Vincent Alimi, Vice-President, Product & Innovation at Mobeewave, a Montreal-based Fin-Tech firm, says consumers shouldn't overlook using a mobile wallet when they shop. He says there are five good reasons to pay with a mobile wallet, including security. In terms of fraud reduction, he says mobile wallets use a surrogate card number.

Real-time transaction alerts

“Unlike when you use a credit card, details such as your PIN, name or consumer behavior are not shared when you use a mobile wallet,” Alimi said in an email to ConsumerAffairs. “They also include practical features, such as fingerprint verification to unlock the payment functionality, and real-time transaction alerts.”

But wait, don't credit cards offer generous rewards? They do, but Alimi says consumers can still reap rewards by adding retailer loyalty and r