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Digital News Report – The credit card business is growing again. In December outstanding credit card debt increased at an annual rate of 3.5% after months of declines. Credit card issuers are expected to send out even more solicitations this year than last.
There are many types of credit cards, including secured, balance transfer and business cards. Offers will usually provide a range of possible interest rates that will adjust.
Balance Transfer Cards
Balance transfer cards will give users an extended period of either no-interest or low-interest. They can be used for purchases, but new purchases may carry a different rate.
One of the best cards for balance transfer is the Capital One® Platinum Prestige Credit Card. The card will give users a zero percent interest rate until May 2012. The promotion is good for both purchases and balance transfers.
The Citi® Platinum Select® MasterCard® offers zero percent for 18 months on balance transfers and 12 months for purchases. The annual APR is slightly higher than the Cap-1 card at 11.99% to 20.99% (variable).
Secured Credit Cards
Secured credit cards can help people with no credit history establish one. Even people with a bad credit score can get one of these cards.
One of the best secured credit cards is the Orchard Bank Classic MasterCard. Depending on the cardholder’s credit-worthiness, the interest rate can vary between 7.90 and 19.90%.
Travel Miles
Some card companies have negotiated rewards with airline companies. Cardholders can receive airline miles for using their card.
The Chase SapphireSM Preferred Card is an excellent card for earning airline miles or travel rewards. The company gives away a “free flight” after you spend 3,000 in the first 3 months (25,000 points).
Cardholders can earn a seven percent annual dividend. There are no travel restrictions or blackouts when the trip is booked through Ultimate Rewards.
New Laws Help
A report released today found that the Credit Card Act of 2009 benefited consumers. “People mistake higher rates on mail solicitations and other offers in the last year as a price hike,” said Center for Responsible Lending senior researcher Josh Frank. “But the facts show that offers now just more closely match actual costs. Prices have been level, but borrowers have a much better picture of what those prices are.”
By Tina Brown