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.

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.

The same pricing strategies used to determine 0% rates are also used with long term interest rates.  In fact, multiple long term APRs are the rule, rather than the exception.  Generally, these rates are advertised with the verbiage “as low as,” and the lowest rate can be as much as 50% lower than the rate you actually get.  One current credit card offer advertises rates as low as 13.24%, but applicants can get a credit card in the mail with a 24% interest rate.  That’s quite a difference.

Ultimately, both the 0% and long term interest rate will be based on your credit profile regardless of the credit card you apply for.  However, some credit card companies offer better chances at getting low rates than others.  When applying for a new credit card, look for one that offers an APR range, i.e. 11.99-18.99%, rather than APR tiers, such as 13.24%, 17.24%, 24.24%.  With the former, you are likely to get a rate tailored more closely to your credit profile.  With the latter, you will get the best rate you qualify for, and one or two credit score points can turn into a 5% interest rate difference.

For additional information on current offers, please see the 0% APR credit card section of Credit Card Depot.

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.

To make matters worse, the final stages of the new credit card laws are slated to take effect in February, and many credit card companies may have to further reduce the length of 0% APR credit card offers to insure profitability under the new restrictions.  While some have hailed the new credit card laws as a positive for consumers, the reduction of length in 0% balance transfer and purchase rates is likely a direct result of these new rules.  Should the economy fail to recover sooner and credit card default rates continue to increase, consumers will not only be missing 0% for 15 month deals, but all 0% deals. 

Fortunately, February is still a few months away and credit card companies continue to offer 0% rates.  Unfortunately, getting a 0% APR may become a memory by this time next year.

Before the credit crunch, credit card companies competed intensely to gain market share.  The two main weapons in the fight were 0% APR credit card offers and high value rewards programs.  Three years ago, many credit card companies offered credit cards with up to 5% cash back on gas and groceries.  Today, the best rewards credit cards only offer 2% cash back on groceries and 1% cash back on other purchases.

While the quality of no annual fee rewards programs has been in steady decline for the past few years, the end of no fee rewards may come next.  Generally, consumers who seek out rewards programs are the same responsible people that pay their credit cards in full every month and don’t carry high balances.  Because of this, credit card companies don’t make money on interest charges and late fees, leaving them with little profit potential on Prime customers who use rewards credit cards.

Once the new credit card laws take effect, banks may find it downright unprofitable to operate quality rewards programs without charging an annual fee.  Thus, expect the best free rewards programs to offer less generous benefits or begin charging annual fees.  For the time being, however, there are a number of very good no fee rewards programs to choose from.  Just be careful to use your rewards points sooner rather than later, as credit card companies may decrease the value of miles and points owned if profits begin to slip even further.