MyCardBlog

These days I received a lot of emails regarding canceled credit cards. It’s a truth that credit card issuers are closing a lot of credit card accounts. I think this is a very common question. There are many reasons that your credit card will be closed. Or sometimes you want to close your credit card account. I will briefly discuss how your closed credit card accounts will affect your credit score.

Actually there are many reasons for a credit card company to close your credit cards. The NO. 1 reason is low activity associated with your credit card. Credit card companies are losing money to maintain a dormant accounts. Meanwhile, unused credit card accounts usually have higher risk in terms of identity theft. The other reason is the credit card companies determine that you are at the risk of credit default. Thus they want to close your credit card accounts. Note: credit card company will access to your credit report regularly (once per month). Of course, the reason why your credit card account is closed is never clearly stated in the letter mailed to you.

Whether your credit score will be affected or not by closing your credit card account depends on your credit history with this credit card and other cards. If the closed account is the oldest one in your credit report, unfortunately, you credit score will decrease for several points. The length of time your accounts have been open is the third most important factor in your FICO score. Plus, you should also remember that closing an account will also reduce the available credit (increase the ratio of the balance to credit) which could also lower your credit score.

However, if you have a lot of other credit cards on hand and are still active and you have a relatively high credit score (>720), the closure of a credit card account will not affect your credit score too much. If the closed credit card is not the one that has the longest history, then you have nothing to worry about. But if you have a slim credit history and very few credit cards, it may be wise to keep your credit card active. In case your credit card is closed, you can always call them up and request them to reopen the account.

Some readers might just want to open a new credit account for sign up bonus ($250 or $150 or $100 or even $50). Then you might want to close the credit card account after you receive the bonus. I will say it’s OK to do this. There is nothing to worry about as long as you have enough active credit cards accounts.

American Express is one of my favorite credit card issuers at U.S. (another one is Chase). I like the high quality customer service and great credit card products provided by American Express. Yes, I know they have the famous “Financial Review“. American Express was ranked highest in 2008 J.D. Power credit card satisfaction study. And the great news is American Express again tops on the most trusted companies list this year!

American Express remains on top of a list of most trusted U.S. companies for the fifth consecutive year. This news is released by Ponemon Institute and TRUSTe. The list is aimed to provide the survey result of the most trusted companies for privacy. According to the survey report, the study asked 6,486 adult-aged U.S. consumers which companies they thought were most trustworthy and which did the best job safeguarding personal information. A total of 706 companies were named by consumers; 211 made the final list of most trusted companies.

There are many other big companies on the list. eBay Inc. was ranked NO. 2. IBM was ranked NO. 3 and Amazon.com was ranked NO. 4. Apple Inc., Yahoo Inc. and Facebook Inc. are all new on the list. Google, Countrywide Financial, Bank of American all dropped out of the top 20.

I’m supurised to not see Citi, Chase and Discover on the top 20. It’s very important for the credit card companies to proctect the privacy of their customers. I am glad to see the Charles Schwab, eLoan and US Bank are on the top 20. The full report of this survey can be found at truste.org.

As the end of the 2008 is approaching, many companies are offering some great gifts for its customers. For example, American Express is offering free gift for its credit card members. This offer is targeted to part of American Express cardmembers. I received this offer via email from American Express targeted to my Blue from American Express Card.

As the email indicates, this is part of the Blue Appointment Book Plan.

We’d like to take this opportunity to give you something special. We’re offering you the 2009 Blue Appointment Book and/or 2009 Mini – Scheduler — FREE for the first year, as part of our extraordinary Blue Appointment Book Plan.

You can also choose to get both of the 2009 Blue Appointment Book and 2009 Mini-Scheduler for some small shipping fees ($2.79 for the Appointment Book and $1.79 for the Mini-Scheduler). The Blue Appointment Book and the Mini-Scheduler seem very cool.

Appointment Book features include:

• Distinctive Silver-Padded Cover—measures 8 1/2″ X 8 1/2″ with
  a Blue hologram and embossed type
• 208 Silver-Edged Pages
• Time Zone and Area Codes
• Wine and Beer Tips
• International Currency Converter
• 8 Full Color Maps of the World
• Personal Address/Phone/Fax/E-mail and Much More.

Mini Scheduler features include:

• Almost everything the bigger version has—only pocket sized.
• Measure 3 1/4″ X 6 3/4″
• 168 Silver-Edged Pages
• Calendars for 2008 to 2010, same as the appointment book
• Much More

More information about the products can be found at https://www.amexappointmentbooks.com/blue.

You can even personalize your books. Enter 3 characters you like at the order form for $3.75 and you can get your own personalized book!

For those without Blue from American Express credit card, there is another link to the other Appointment Book and Mini-Scheduler (click here). The color is not blue but black.

If you didn’t received the offer but want to get one, you can go to the amexappointmentbooks.com to buy one. Of course, the price is pretty high.

The rare and mysterious black cards have now been thought to be the ultimate status symbol by super-wealthy. There are many banks issuing many black cards in the world. Of course, the most famous one is the American Express Centurion Card with an annual fee of $2,500 and minimum yearly spending of $150,000. Recently, the Barclays Bank just added a new black card into the back family—the new Visa Black Card.

The Visa Black Card is produced in stunning black carbon graphite (patent pending), making it the most durable fake money around. The annual fee of this black card is $495 which is not much compared to other black cards. At the black card website (www.blackcard.com), the issuer clearly indicates that this credit card is not for everyone. It is limited to only 1% of U.S. residents to ensure the highest quality of service to its cardmembers. Not everyone can apply for this credit card.

Overall, the features of this new black card:

• Limited Membership
• 24-Hour Concierge Service
• Exclusive Rewards Program
• Luxury Gifts
• Patent Pending Carbon Graphite
• Annual Fee $495

Maybe the most attractive feature of this card is the 24-hour concierge service. The Black Card team is offering the Concierge Service catering to entertainment, travel, business, shopping and lifestyle needs. With a phone call or email to our world class Concierge professionals, Black Card members can tap into an effective time management tool designed to improve quality of life, allowing you to focus on what is truly important.

More information can be found at here.

Other Black Cards you may want to know are listed below:

5 Black Card Designs You Should Know

American Express Centurion Card

The Diamond Studded Dubai First Royale MasterCard

I’m frequently asked by the same question: How many credit cards is too many? Well, this is never an easy question to answer. Today, I received a message from one of my friends who told me that he just got approved for his 14th credit card. I think it is an interesting topic to discuss on how many credit cards is too many?

According to the article in MSN money, 1 in 7 Americans carries 10 or more credit cards. This article also indicated that the average American holds four credit cards. So it is safe to say that carrying 4 to 10 credit cards is really not to many.

As I mentioned at the very beginning, my friend Chris has 14 credit cards. Let’s see how he makes 14 credit cards.

Following is a list of the credit cards he currently has:

Blue Cash from American Express

Starwood Preferred Guest Credit Card from American Express

The Gold Card from American Express OPEN

Citi CashReturns Card

Citi Platinum Select / AAdvantage World MasterCard

Citi PremierPass Card – Elite Level

Discover More Card

Bank of America World MasterCard with WorldPoints

Chase Freedom Card

Chase United Mileage Plus Visa Signature Card

Amazon.com Rewards Visa Credit Card

WaMu Platinum MasterCard

National City Everyday Rewards Visa Card

Household Bank Platinum MasterCard

He told me that the reason why he got so many credit cards is to get the sign-up bonuses. For example, when he placed the order at Amazon.com there is a message ask him to apply for the Amazon.com Rewards Visa Credit Card which will give him $30 cash back. He then just applied for the credit card! When he heard that the Starwood Preferred Guest Card from American Express offered 10,000 bonus points, he would just apply for the credit card, use it for a while and then I will catch another credit card later. He told me that there is no negative impact on his credit score for having so many credit cards. I personally have about 12 credit cards and my credit score is very steady.

So there is no definite saying that 20 credit cards are too many. You can’t have more than 20 credit cards. There is even a rumor says that some people carry up to 50 credit cards!

Actually there are only two things that matter to your credit performance: your balance-to-limit ratio and late payments. It is obvious that the more you have your credit card, the greater the chance that you might miss a payment. A late payment will trigger a damage to your credit report. Another risk you might have is you probably will spend more money with more credit cards. If you can keep your balance-to-limit ratio very low, let’s say 30%, there is no negative influence on your credit report even you have 50 credit cards.

How many credit cards is too many?

There’s no right number of credit cards for everyone. It really depends on how much you spend and how much you can pay off. A smart tip is never carry balance on your credit cards if you have a lot of credit cards.

The RevolutionCard is a new credit card product issued by Revolution Money and First Bank & Trust, Brookings, SD, Member FDI. Revolution Money is a new payment network launched in 2007 which works similar to PayPal. There is another financial product from Revolution Money—the Revolution Money Exchange. The RevolutionCard is a PIN-based credit card which is believed to enhance the security with better identity protection. RevolutionCard is also dedicated to eliminate costly interchange fees for merchants and provide incentives and discounts to consumers.

So the RevolutionCard is a completely new credit card product. Right now the RevolutionCard is running a promotion from which you can get up to $100 for using approved RevolutionCard.

How to get the $100 bonus?

According to the promotion rules, you have to apply for the RevolutionCard between 11/15/08 and 1/31/09. Your card statement is credited $5 for each purchase of at least $50. This can be done up to 20 times for a maximum credit of $100. This promotion can be found at RevolutionCard website. The credit will be issued within 24 hours.

Of course, the question is whether the RevolutionCard is widely accepted by merchants. You can find a list of places that accept RevolutionCard as a payment method at here. Every place that has the RevolutionCard logo are accepting the RevolutionCard.

As listed in their website, the RevolutionCard is believed to have following features that are different from a general credit card (details of the credit card terms can be found at here).

• Credit card with flexible features
• PIN-based for greater control and security
• Instant rewards through merchant partners
• Competitive APRs

Each transaction requires your 4 digit PIN and neither your name or other personal data is listed on the card. This credit card also allows you to create temporary PINs for online purchases (virtual credit card).

Like other credit cards, the RevolutionCard is working with other merchants to issue co-branded credit cards. For example, there are Shoebuy.com RevolutionCard, Philadelphia 76ers RevolutionCard, and Philadelphia Phantoms RevolutionCard. Available RevolutionCard Credit Cards can be found here.

It happens. You put aside some bills that are not high on your priority list in order to make ends meet and a few months down the road you find a letter in the mailbox from a collection agency. Once you pay off the account in full, it becomes a matter of dealing with your credit report. No one wants to have a record of a collection account on their credit history but fear not – there are things that can be done to rectify the situation.

Collection agencies are typically not difficult to erase from your credit report because in general they do not keep extensive records and are often not fully licensed to collect debts. Because of this factor, there are ways to clear your credit record with a bit of effort.

Here are 4 ways to get the collection agency off of your credit report:

Pay In Full for Deletion

For small collection amounts, you can speak to the agency about removing the listing completely from your report in exchange for your paying the debt in full. This method is effective because the collection agency, who expects to only receive a partial payment from which they take a cut, will instead get a larger cut of the full payment. You will need the cash to make the deal but for the most part, the process should be quick and relatively easy.

Make A Settlement Offer

When you are dealing with larger debts, you may want to talk to the agency about settling on an amount you can afford to pay in one lump sum to settle the case with the agreement that the agency will remove the listing from your credit report.

File A Dispute with the Credit Bureaus

You can opt to write a letter to the major credit bureaus, requesting that they investigate the collection account listed on your credit report. The agencies are required to follow up on the investigation and should the collection agencies not be able to prove or provide the accurate documentation about the claim, the listing can be removed by credit bureaus.

Debt Validation Method

Using the regulations of the Fair Debt Collection Practices Act, you can write a letter to the collection agency to request that they prove proof they are legally allowed to collect on the debt listed. Send the letter certified with a return receipt requested. If you do not get a reply in a reasonable amount of time, usually 30 days, send a copy of your certified mail receipt, along with the copy of your letter and a new letter stating they have violated the FDCPA and that you want the collection removed from your credit report or else you will file a lawsuit. This tactic is rather aggressive and you must stay on task to see it through to the end.

Tisha Tolar is a freelance writer providing content for CreditCardAssist.com, where she regularly writes about credit cards, rewards programs and general consumer finance issues.

These days the news about the promotion from PayPal is widely spread over the internet. I have a post which indicated that PayPal is going to run Holiday Promotion in the coming shopping season published several days ago. And the current PayPal holiday promotions can be found at www.paypal-promo.com/holiday. Not all of the promotions listed there are hot deals. But some of them are really good.

Recently I received 2 PayPal promotions targeted to my personal PayPal account. I think it’s a good idea to briefly introduce the 2 promotions because some of you might not know the promotions are existing.

Get $20 cash back from PayPal when you spend $50 at Walmart.com

This promotion is pretty easy and really a great deal. Use PayPal when you checkout at Walmart.com and PayPal  will give you $20 cash back on your order of $50 or more!

This offer applies to transactions on Walmart.com when you use PayPal as a payment method. Offer begins December 5, 2008 and ends December 15, 2008. The maximum amount of cash back per PayPal account is $20USD. The cash back will be deposited into your PayPal account by January 15, 2009.

To get the $20 cash back, you must

(1) have a confirmed U.S. PayPal account in good standing

(2) receive an email directly from PayPal inviting you to participate in the Offer

(3) purchase using your PayPal account that has the same email address where you received the email invitation

(4) make an eligible purchase no later than December 15, 2008

This offer is similar to the American Express Credit Card promotion at Walmart and Walmart.com which will give you $20 statement credit for shopping at Walmart stores or Walmart.com twice with each minimum transaction of $40.

20% cash back from PayPal for shopping at eBay

Right now, Microsoft live search is only offer 8% cash back. So if you receive this email, it’s a great chance to pick up some cheap stuffs at eBay. This offer is very simple: Pay for your eBay purchase with PayPal, and get 20% cash back in your PayPal account.

This offer applies to transactions between December 10, 2008 and December 19, 2008 using PayPal as the payment method. Purchases made within the Offer period must be charged to your account no later than December 19, 2008. The maximum amount of cash back per PayPal account is $100 USD. The cash back will be deposited into your PayPal account by January 31, 2009.

To be eligible for the Offer, you must:

(1) have a confirmed U.S. PayPal account in good standing

(2) receive an email directly from PayPal inviting you to participate in the Offer

(3) make your purchases no later than December 19, 2008 using your PayPal account, which also has the same email address where you received the Offer invitation

Some might ask how to receive the promotional offers from PayPal. From my personal experience, I think the way to get the PayPal offers is don’t link your PayPal email to your eBay account. In this way, PayPal, which is an eBay company, will send more promotional offers to you.