The days of the instant approval credit card are all but finished.  While a few companies continue to advertise instant credit decisions and sixty second approval, the vast majority of credit card companies no longer provide approval decisions immediately.  This will come as a not so pleasant surprise to anyone hoping to get a credit card in time for black Friday, since the odds of that occurring are stacked against you.  In fact, someone applying for a credit card today would be fortunate to have a card by the first of December.

Today, anyone applying for a credit card is likely to wait a minimum of five business days from the time they apply to the time their card arrives in the mail, though ten business days is probably a safer window.  The reasons for this are manifold and stem from the movement away from purely computer generated analysis to human reviews of applications.  This slows the application process down, often by a few days and is intensified by the busy mail system this time of year.

Given these factors, anyone seeking an instant approval credit card to pay for holiday gifts would likely need to apply by the 10th of December at the latest if they wanted to spend on a new credit card.  Applying any later could leave you waiting by the mailbox until its too late to find anything worth buying.

2009 has not been a good year for credit card companies or credit card users.  In fact, its fairly safe to say that 2009 was probably the worst year to be a credit card company or a consumer with credit card debt since the inception of the credit card.  On the whole, compiling a list of the worst credit cards would be much easier than putting together a list of the best credit cards.  However, it would take quite a bit of time to compile a worst credit card list. 

Given the behavior of most credit card companies this year, this review of the best credit cards will focus on companies rather than specific cards.  In particular, this review will focus on the only remaining credit card companies that have shown respect to their customers:  Discover and American Express. (more…)

Before the credit crunch, credit card companies offered single digit interest rates, often fixed for life.  Unfortunately, many people found out the hard way that a low fixed APR for life can be turned into a high variable rate if the issuing credit card company decided they wanted to change credit card terms.  Today, average credit card interest rates hoover in the mid-teens and low APR credit cards carry interest rates of 11.99% or higher.

Low interest rates in the 11.99% range are generally reserved for applicants with excellent credit.  Applicants with good credit will likely find average interest rates to be 14-16%, rates that no one would have considered low two years ago.  Unfortunately, credit card companies have been raising advertised interest rates all year long in spite of the fact that the Prime Rate, which is the variable element of most variable rate credit cards, remains near all-time lows.  (more…)

Despite new credit card laws designed to make credit card offers more transparent, many credit card companies still advertise 0% interest rates that may not last as long as advertised.  The main example is the 0% APR  for “up to 12 months.”  With these offers, credit card companies provide 0% rates for 12 months to consumers who meet their highest credit standards.  Applicants with good, but not great credit may only get a 0% rate for 6 or sometimes even 3 months.

When you apply for a 0% credit card that advertises a 0% rate for up to X months, special caution must be taken if you intend to use that card for balance transfers.  Specifically, if you are planning to transfer a balance, do not do it online.  Simply wait until your credit card arrives in the mail and transfer the balance when you can review the terms granted to you.  If you were lucky enough to get a 0% for 12 months, then go ahead and transfer your balance.  However, if you only got a 0% APR for 6 months, you may want to consider applying for a new credit card. (more…)

Do you remember when credit card companies offered 0% APR for 15 month deals?  It wasn’t too long ago, but those days are already a distant memory.  And the return of 0% for 15 months is unlikely.  During the past year, credit card companies have cut back on the length of 0% APR offers, with many companies now offering 0% for 6 months on balance transfer or purchases, and some cutting 0% introductory rates altogether.

During this summer, credit card companies not only cut the length of 0% APR credit card offers, but also increased long term interest rates.  The latter increases occurred despite a stabilization in the Prime Rate, which hoovers near all-time lows.  Recently, credit card companies have begun offering 0% for 12 month deals, though these special introductory rates are generally reserved for customers with the best credit.  Customers who don’t meet new, stricter approval standards are likely to only receive 0% APRs lasting about 6 months, if they can get approved for new credit cards at all. (more…)

Today, there are a wide array of no annual fee credit card rewards programs that offer premium cash back, airline miles and points that rival rewards programs that charge annual fees as high $495.  Unfortunately, however, no annual fee credit card rewards may become a victim of the credit crunch, as major banks such as Bank of America consider adding annual fees to a wide range of cards, and not just rewards cards. (more…)

A year ago, it was possible to find 0% balance transfer offers lasting up to 15 months and fixed APR balance transfers for life with interest rates as low as 2.99%.  Today, the best balance transfer offers only last 12 months and most balance transfer rates only last 6 months.  This is bad news for consumers, as many of us have recently seen our long term interest rates rise substantially, with one major company raising rates to 29.99% on nearly all of its customers.

Faced with significantly higher interest rates, securing a 0% balance transfer for 12 months today is imperative.  Credit card companies have been increasing the requirements to get approved for new credit cards throughout the year, and the most recent Federal Reserve survey of loan officers indicates that getting approved will only get more difficult.  This means customers who don’t take advantage of 0% balance transfers today may find it even more difficult in February, when new credit card laws are enacted. (more…)