MyCardBlog

These days, I am always thinking which credit card company is the best from our customers’ eyes. This morning I was trying to find out the answer by using Google. It seems I have luck with me. Yesterday, JD Power and Associates just released the “2007 Credit Card Satisfaction Study”. And the final winner is American Express!

I’m not surprised about the fact. Honestly speaking, American Express provides the best customer services compared to other companies. You can always find an American customer service representative even in the late night. I was very surprised to talk to a balance transfer specialist at 10:30 pm when a general customer service representative couldn’t solve my problem about balance transfer, although I was held for about 15 min. If I call Citi in the late night, I should be prepared to hear Indian English and accept the fact that I can’t get what I want. I don’t know the operation system in a bank but I would say Citi is not so good. For example, they claim that they are offering $200 sign-up bonus for a new checking account. However, when you read carefully, there are some fine prints say the offer expires on 08/31/2007. Then the problem is they still put it online. I called them up and ask them for reasons. They couldn’t find the answer until now. I dare not to open a new account with Citi. At the same time, I should mention that the “Financial Review” process is also a problem for American Express. They should try to fix the drawback in the future. From what I know, the business card may be the major source of a “Financial Review”. If they couldn’t confirm your business, they will be worried that you can’t afford the expense. Not to mention that there are always no pre-set spending limits for business cards. Another point is not carrying high balance. Generally, lower than 70% of credit limit is acceptable.

Ok. Here is the story about Credit Card Satisfaction Study.
Customer Satisfaction Score>—Customer satisfaction, based on 1,000-point scale
American Express 735
Discover 728
Citi Cards 652
Chase 651
US Bank 646
Washington Mutual 638
Wells Fargo 636
Capital One 617
Bank of America 607
HSBC 571
Based on online survey of 7,812 credit card customers in June and July.

(Click to see large image)
American Express and Discover showed the highest satisfaction levels in the J.D. Power and Associates study, reflecting that an estimated 90 percent of their customers aren’t charged interest because they pay off balances in full every month. Conversely, the companies with the lowest satisfaction ratings, including HSBC and Bank of America, tended to be those with higher percentages of customers who carry balances.
Power divided card customers into “transactors” – those who, like most credit card holders, pay off balances and use the products as charge cards – and “revolvers” – those who don’t pay their balances in full and must pay finance charges. Transactors had an average satisfaction rating of 681 on a 1,000 point scale, compared with 613 for revolvers.
A credit card issuer’s “percentage of transactors pretty much drives the rankings,” said Jeff Taylor, senior director for banking at Power.
Similarly, among card networks, American Express and Discover outscored MasterCard and Visa. That was because banks that issue MasterCard and Visa had greater proportions of customers with outstanding balances.
The lower satisfaction of those who carried balances stemmed from customer unhappiness with interest rates, as well as other financial factors such as low credit limits. (HSBC has the problem. I’m complaining here!)
HSBC, the issuer that scored lowest in the survey, said it had not seen the report.
For those who don’t carry balances, card benefits, features and rewards, such as airline miles, were most important. American Express and Discover scored well in part because almost all their customers are enrolled in rewards programs. (Personally, I don’t think the rewards programs from Discover is very good. HSBC 2% cash back card is really good!)
Customers reported wide differences in problems with their card issuers. On the high end, 11 percent of Bank of America and Citi Cards customers said they had experienced a problem such as a billing mistake in the past 12 months. Only 5 percent of Washington Mutual and Discover customers said they had had a problem.
In part adapted from San Francisco Chronicle by the author Sam.

You may have already known that cancel a credit card may influence your credit score. However, there are sometimes you just have to do it. For example, the annual fee ($125) is going to be charged on American Express Business Rewards Card, and you don’t want to pay that money. Sometimes you find that that card is no longer profitable for you and you want to get another wonderful credit card. You may say this will affect my credit score and I don’t want to try. Ok. The most important things for your credit score is the credit utilization and credit history. If you are not cancelling your first credit card, it won’t hurt you. If you have huge credit limit, it will also be Ok for you credit score. Of course, you have to make a choice by yourself. Here are some tips on how to make your cancelling process profitable.

1). Combine with other existing credit cards.
You can choose to combine the credit card with another credit card from the sane issuer. You can call them up and ask for “moving” the credit limit from this card to another credit card. This approach is very useful for most credit card companies. However, sometimes some ristrcitions may be applied. Sometimes the CSR might give you wrong answers. So if one CSR tells you that he/she can’t do that, just hang up and go for another call. I think it works for most issuers.

2). Switch to another credit card.
If you want to avoid the annual fee of a certain credit card, you can choose to switch this card to another no annual fee card or a card with lower annual fee. It’s especially useful for Citi PP-Elite and Citi PP card. You can get more sign-up bonus from the Elite level card, and waive the annual fee for switching to non-Elite card. You can earn simliar miles for both cards. This approach is also useful for Citi AA series cards.

3). Get bonus for staying.
I have the experience. When I called Chase to close Chase Freedom card, they gave me $10 to stay with that card and transfer credit limit from another card. Usually, when you called to cancel your credit card, you will be transferred to a person who is specially trained to handle this problem. They may give you some incentives to stay with that card. But remeber, don’t get angery. Stay calm and talk to the person kindly. The goal of that person is trying to get you stay with them. You can make profits for them! I hope you can get bonus for staying with them.

When you are ready to cancel a credit card, make sure you have a plan to deal with the credit card company. If you have any experience with this , please feel free to make a comment.

Every time when you use your credit card, you are making money for credit card companies. It’s obvious that credit card companies are willing to establish good relationship with their card holders. They want you to use their cards! So how can you take advantage of it? Here are several tips on how to deal with credit card companies:

Call: you can easily find the phone number at any where. You can call to ask for low interest rate, waive or reduce any fees. If you miss a payment and come up with a late payment fee, call then up and request them to reduce or waive the fee. If your APR is too high, just call them up and request to lower the rate. If they simply decline your request, you can go further and request to close the account! Tell them that you have other better choices then to use this card. Remember: the credit card market is extremely competitive. If they lose a cardholder, they lose the chance to get profit.

Consolidate credit lines: this is especially useful for those who have multiple cards from a card issuer. In this way you can lower the utilization of your credit card and boost your credit score. You can also lower the chance to get over limit fees. Increase your credit limit without credit pulls: most credit card issuers request to pull your credit report every time you ask to increase your credit lines. Talk to them directly and see what will happen. Switch your card or rewards program: usually you can change your card to another card which might be better meeting your needs. You should notice that you can switch cards within similar class. For example, a student card can’t be converted to a business card. Sometimes you find out you are not a frequent flyer but you have a mileage rewards card. What should you do? Call them up and switch to a cash back card/program.

Warranty extension: lots of credit cards now are offering extend or double manufacture’s warranty plan. Figure out which card offers such benefit and take advantage of it when you make large purchase.

Auto rental insurance: I believe most cards are offering such benefit. Keep an eye on it.
Foreign transaction fee: discover card and capital one provide on transaction fee for foreign transactions. HSBC household card and orchard card offer 2% cash back and 1% foreign transaction fee. Try to avoid the transaction. Other benefits: some credit card offer better discount trough special online shopping in their website such as VIP lounge access, free upgrade to coach or business seat, free companion ticket etc.Remember: 1. credit card companies are trying their best to make as much money as possible. 2. They have well defined rules, policies and procedures. 3. They are willing to sacrifice 2 for 1.

I applied for an American Express card (starwood preferred guest card) on Aug 15, 2007. Then several days later, I received a letter from American Express to verify my Annual Income. I contacted my Human Resources Office immediately who sent out a verification letter for me. Then I called back to American Express today. They told me that they contacted the person who wrote the letter twice to verify my information. (Oh my god!) They couldn’t reach the person! Finally they canceled my application. They need the person call American Express to verify my information! I don’t know what they are doing! We are all very busy. I don’t want to knock Naomi’s door and ask her to help me again. I am so sorry I have to give up a perfect card. An official letter is not enough? As some friends said I should reply with “NO WAY!!!”. I am not applying for my mortgage. it’s just a card….The process is so complicated….. No more American Express card from now on. The only way I can get that card is to convert my blue card to Starwood Preferred guest card. sad………………………….^^^^^

Online services provided by amex credit card are now more credible and reliable than ever. The focus of amex is customers having strong credit history. Conversely, the bank of america has launched new bank of america card service for the customers who are facing difficulty in getting regular credit cards due to their bad credit history. Now these customers can apply for credit card for bad credit and they can activate their credit card or manage their accounts by using the bank of america credit card online services. Online resources are available in the form of comparison guides and experts?reviews that help potential customers in making comparison of different american credit cards.

Hilton HHonors Platinum Credit Card from American Express: Earn 10,000 bonus points after your first purchase. Then you can get extra 2,500 points for your first 4 stays at Hilton family hotels. You can get 5 points for every dollar spent at Hilton family hotels and 3 points for every other purchase. 5 points for spending at US supermarkets, drugstores, gas stations and wireless phone services. No annual fee for this card.

Starwood Preferred Guest Credit Card from American Express: See my previous post.

Citi Hilton HHonors Visa Signature Card: You can get 15,000 bonus points after you first purchase—enough for 2 free stays at Hilton family hotels. You can get 6 points for every dollar spent at Hilton family hotels. 3 points for spending at US supermarkets, drugstores, gas stations and 2 points for every other spend. No annual fee.

Marriott Rewards Visa Signature Card (chase): You can get 15,000 bonus points after your first purchase plus a free night stay certificate upon account opening. Earn 3 points for every dollar spent at Marriott hotels. Get 1 point for other purchases. Annual fee is free for the first year. After that $30 per year.

Priority Club Rewards Visa Signature Card (chase): 15,000 bonus points after your first purchase. 10,000 bonus points for spending 15,000 annually. Get 3 points for every dollar spent at Priority Club hotels and 1 point for other purchases. Annual fee is $29 after first year.

Choice Privileges Visa Card (bank of America): 8,000 bonus points after your first purchase—free one night stay at over 1,000 locations. No annual fee.

TripRewards Visa Platinum Plus MasterCard (bank of America): Earn 13 points for every1 dollar spent at hotels. 2 points for every other purchase. No annual fee.

Discover card: You will get 5% once a year (3 months) for hotel staying.

This afternoon Hannah said I should write a post on why I write a blog on credit cards and banks. Emm. Actually, I don’t know exactly why I would get a space to write something about cards and banks. Obviously, credit cards and banks are the most useful tools in our daily life. When we make a purcahse, we may use cashes, debit cards, checks, money orders and credit cards. As we use them more and more, we should realize that we can earn cash back from them! Not just simply use it and don’t care about the benefits that cards can bring in! Except for the cash back we can get, we should also notice that the car rental insurance and travel insurance that cards can provide. We should also know that 0 fraudbility from credit card (well, if you lose cash, they are gone). And you might also notice other programs you can get in. Why not use a credit card??? However, the truth is there are so many credit cards from so many banks. How can we choose one from them? How can we get the maxium benefits from those cards? How can we make the application process more soomthly? Well, from my own experience, I get the inspirition to write something about cards and banks. One thing we should remember is: banks are earning more from us. DO NOT feel guilty to get money from them! At the same time, I hope my readers can visit my blog frequently and give me more suggestions. Thank you very much!

To be brief, the App-O-Rama (AOR) is a credit card application strategy—submitting many credit card applications in a very short time. And then enjoy the sign-up bonuses, free hotel stays and mileage bonus. At the same time, you can also get the 0% Apr promotion offers from the major credit card issuers by choosing right cards. After transferring the credit lines to your personal bank accounts, you can earn interests. The trick here is the credit card companies won’t report the inquiries immediately after your submissions. So when you apply for credit cards all at a very short time, the card issuers won’t see the inquiries from each others. In this way, you have more chance to get the credit card. You should have to remember four things: find the right cards; have a good credit history; have high credit limits on other cards; prepare to see the consequences from AOR. There is a website help you find the right cards for you and teach you how to get the bonus—www.app-o-rama.com.

It’s also interesting to see the report from the Wall Street Journal. The credit card issuers have noticed this problem. Them are beginning to put higher transfer fees on your balance transfer. The End of Profit from AOR is coming!

I think I should mention that try to use business cards for your AOR! Main reason is: the business card is hidden from you personal credit report! Your credit score cas stay higher adn you can still get good offers from major credit companies even after AOR. And usually business cards offers better 0 Apr promotions and have higher credit limits (business needs money). Please pay attention on Advanta which is a good business card issuer.

This post is particularly useful for those spend a lot of money on their gasoline. Hereby I recommend several gasoline credit card from several major card issuers.

1. BP Visa Rewards Card from Chase USA. This card was rated as the “best gasoline credit card of 2006″. It will give you 10% rebate at all BP locations for the first 60 days. At the same time, you can get 4% rebate on all eligible travel and dining. And you can continue to get 5% at BP gas stations after the promotion period and 2% rebate on all other eligible purchase. You can also get 1% rebate on other purchase. This is really a good card for BP users.

2. Discover Open Road Card from Discover. This card can give you 5% cash back on gas pumps and auto maintenance. You can enjoy 0% Apr on purchase and balance transfer for 12 months. I have this card for many months. I really enjoy the cash back from the pumps.(I’m spending more!) If you are not a green card holder or US citizen. You might try your luck. I got this card luckily by talking to a credit analyst. She wanted to do business with me! And she never asked me to fax the green card to her. Emm… Good luck!

3. Citi Driver’s Edge Options Platinum Select MasterCard from Citi Bank. At the first year, you can get 6% rebates on the purchase you make at supermakets, drugstores, and gas stations. After that you can get 3% for the above eligible purchase. Another feature is you can get $1 for every 100 miles you drive! Awesome! When you’re driving, you are making money!!! It’s also qulified for a Citi photocard. You can put your picture and signature at the fromt of this card.

4. American Express SimplyCash Business Credit Card from American Express. This card can give you 5% cash back on gas, office supplies and wireless services. You can still earn 1% cash back on other purchase. This card will automatically give the cash back to your card every month. With this card, you can get open saving at the most business expense. This is an perfect card for business owners. If you want to get it as an individual, put your name as the business name and the SSN as the ITIN.

5. Washington Mutual Platinum MasterCard from Washington Mutual. The feature of this card is you can get 10% on gas purchase for 6 months and up to 5% on everyday purchase. Another attractive feature is you an get free credit score through this card!

6. Visa Platinum Gas Cash Reward Card from Pentagon Fedral Credit Union. You can get 5% cash back on gas purchase and 1.5% cash back on other purchases. The cash back will be credited onto your account every month.

7. TrueEarning Business Card from American Express and Costco. You can get 55 cash back on gas purchase, 3% for dining out and 1% on everywhere else. You can also enjoy the Open Savings program from American Express.

8. Shell MasterCard from Citi Cards. You can get 5% cash back on gas purchase at Shell gas stations.

There are many other cash back cards for gas purchase.

Sinclair Platinum MasterCard from Barclays Bank Delaware, Lukoil Platinum MasterCard from Barclays Bank Delaware, Marathon Pltinum MasterCard from Chase USA, Hess Visa Platinum Card from Chase USA.

Well I hope we can have more cards included in this post. If you have any good ideas please feel free to leave a comment. I appreciate your advice.