Credit card applicants with good and excellent credit will likely see their credit cards arrive in the mail first.  Many companies review and make decisions on credit card applications in 24-48 hours.  Once the decision is made, however, the card must still travel via regular mail.  This adds anywhere from three to five days to the process, which means it can take anywhere from five to seven days to get access to a new credit card.  And this is for easy to process approvals.  Applicants whose applications need more intense review can take significantly longer to be processed.

Because it will take at least five days to get a credit card through the mail, people looking to use a new credit card for holiday gifts should apply no later than the 14th of December if they want to allow any time to shop before Christmas.  Waiting to the 14th may, in fact, be cutting it very close and you might end up without a credit card in time to shop if something delays your application.  However, there are a few things you can do after applying for a credit card that will give you a better sense of when your card will arrive.

First, many credit card companies provide you with a way to check your application status online, often through a confirmation number.  Use this tool to check on your credit card application status.  If your status is approved, you can safely assume your card will arrive in five seven postal days, which would give you access to your credit card by 21st or 22nd-a bit too late to shop online, but still enough time to hit the stores.

If you are not approved in 48-72 hours, you may want to call the company to see if there is any additional information needed to complete your application.  By this time, however, there is a significant risk that you may not get your card in time for Christmas.  Some companies may be able to expdite shipment, but this is not particularly common.

Hopefully, this article will find you before it is too late to get a credit card.  Happy Holidays.

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.

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.

Overall, Discover takes the top spot in this ranking of the best credit cards for 2009.  Although they ranked second in J.D. Power’s 2009 credit card satisfaction survey, they get my nod as the best credit card company because, unlike every other major credit card company, Discover showed a continuing interest in treating their customers like human beings.  You can search far and wide for negative comments about Discover, but for the most part, negative remarks are few and far between. 

Unlike most major credit card companies, Discover did not pass on massive interest rate increases to its customers this year.  Compare to the likes of Citibank, which recently raised rates on many of its loyal customers to 29.99%, this qualifies Discover for credit card sainthood.  Even without an easy comparison to Citibank, Discover still out did every major bank by keeping interest rates relatively stable and sticking to the terms of its agreements with customers.

On all major factors, Discover scored very well in J.D. Power’s annual satisfaction survey.  This includes customer service, rewards programs, fees, and other factors.  While many may skip past Discover in lieu of a Visa or MasterCard, issuers of those cards let their customers down across the board.

Like Discover, American Express has also been relatively kind to its customers.  However, American Express has been moving away from the credit card arena back towards the charge card arena.  This move, as well as the relatively high annual fees that come with most Amex cards, puts them in second place here, although they did take the top spot in J.D. Power’s 2009 survey.

Overall, Discover credit cards are likely to continue to be the most consumer friendly credit card in the coming years.  Unlike the major banks, Discover is a credit card company and cannot afford to alienate its customer base with massive interest rate increases.  As the credit crunch wears on, more and more companies may follow in Citi’s footsteps, either by raising interest rates or adding annual fees.  Discover, on the other hand, is likely to focus on keeping its customers happy and repaying their loyalty by treating them like human beings.  If that doesn’t make them the best credit card company of 2009, I don’t know what else could.

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. 

One reason low APR credit cards are not as low as they used to be lay in the fact that credit card companies are adjusting their pricing ahead of the new credit card laws slated to take effect in February.  Under these new laws, credit card companies will have little room to increase interest rates on consumers who fail to pay on time.  As a direct result of this, consumers with good credit are footing the bill for our less responsible neighbors.

In the near term, it is unlikely that credit card rates will decrease.  In fact, the low APRs of today will actually look low when the Prime Rate increases.  For example, should the prime rate increase by a mere two points, average credit card interest rates will be close to 17%.  Fortunately, prime rate increases are not in the immediate future, so that is a concern for tomorrow. 

Consumers looking for lower interest rates are left with limited options these days.  Yet, 0% APR deals, and 0% balance transfers, are still available.  In the past, many people used 0% credit cards to defer paying off debt.  Today, 0% credit cards should be used in place of low interest credit cards as a tool to repay credit card debt as quickly as possible.

Getting the Best Credit Card Deal

1. Getting the lowest interest rate:  Credit cards generally advertise the lowest available interest rates in bold.  However, almost all credit card companies offer tiered pricing.  With tiered pricing, individuals with the best credit scores are offered the lowest rates, while those with good or average credit will be offered higher rates.  Oftentimes, there is a substantial difference between the lowest advertised rate and the high tier rate.  For example, a typical credit card may advertise a 10.99% interest rate to consumers with excellent credit and an 18.99% interest rate to consumers with average credit.  Unfortunately, no credit card company will tell you your interest rate until after they have reviewed and approved your application (the same is true with credit limits).  Thus, when looking for a low interest credit card, keep in mind the fact that your rate may not be the lowest available.
2. Be sure you get a 0% APR for a full year:  When you apply for a new credit card, you should definitely take advantage of 0% APR offers.  However, when you apply for a credit card that advertises a 0% APR for “up to 1 year,” you may be approved, but only offered a 0% APR for as little as 3 or 6 months.  This is due to tiered pricing, the same factor used in determining interest rates.  Generally, individuals with excellent credit will be approved and granted a 0% APR for the full year.  However, individuals with lower credit scores may get a shorter 0% rate.  To avoid this issue, either apply for a credit card that grants all approved applicants a 0% for a full year (or until a certain date).
3. Be really, really sure you get a 0% APR for 1 year on balance transfers: While this may seem redundant, it is particularly important to stress the importance of locking in a 0% APR for a full year on balance transfers.  Why?  Balance transfer fees.  Over the past few years, credit card companies have removed fee caps on balance transfers.  A year ago, maximum balance transfer fees were the greater of 3% or $75 and some credit cards offered no fee balance transfers.  Today, all major credit cards charge 3% balance transfer fees with no limits.  Thus, if you are doing a balance transfer and paying fees, you want to make sure you get a full year without interest.
4. Pay balance transfer fees:  Don’t let 3% balance transfer fees deter you from doing a 0% APR balance transfer.  Balance transfer fees are a nuisance, not a deal breaker.  A person with a 12% interest rate will save close to $100 for every $1000 transferred to a credit card with a 0% APR for a year.  Yes, paying $180 in balance transfer fees may seem expensive when doing a $6000 balance transfer.  However, you will save over $550 in interest over the course of a year by transferring your balance.
5. Don’t pay annual fees unless…:  There are only two types of people who should consider paying annual fees.  The first are those with average or fair credit.  Credit cards for those with less than perfect credit tend to come with annual fees.  However, be careful of these offers.  Many sub-prime credit cards charge exorbitant fees in excess of $100 a year.  The second group that may consider paying annual fees are credit card rewards junkies.  If you know how to earn tons of rewards, paying an annual fee shouldn’t be an issue.  However, most credit card users who want rewards are best off with a no annual fee cash back rewards credit card as opposed to a point or airline based rewards program with a fee.

We hope this little guide proves helpful to visitors and would love to hear feedback from you.  Post a comment with any tips below and help others save money!