Posts Tagged 'visa'

Scam Visa calls going around

We’re getting reports of members receiving calls soliciting their Visa information from someone saying their account is going to be closed. The caller comes from an unavailable number and won’t leave a name or identify themselves.

If you receive such a call, don’t give the caller any information. If American 1 has to call you, we already have your account information and don’t have to ask. That, and we’re not afraid to identify ourselves over the phone and leave our phone number. In fact, your caller ID may list us on the display.

When you receive calls like this, simply hang up and call the credit union yourself and ask about the situation. If there is one, you know you’re calling the right people. Plus, we like to stay on top of fraud situations like this.

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Store credit cards make more, cost more

A news item from the Wall Street Journal confirms what we’ve found – that store cards (like from Target, Kohl’s, or Best Buy) cost more than a plain old credit card:

A chunk of the customer base for these cards is made up of low-income households and less credit-worthy borrowers. As a result, these cards typically carry higher interest rates and lower credit lines than general-purpose cards.

Store label card issuers also make more off these cards.

“Issuers of retail credit cards make $16 to $18 of interest and fee income on every $100 loaned out, before subtracting expenses,” the Journal says. “Earnings on general-purpose cards typically are $14 to $15 per $100 loaned.”

That one or two dollar difference may not seem like a lot, but multiply it by thousand dollar balances and the millions of people who have store cards, and it adds up to a lot of profit for credit card issuers.

Customers think that by signing up for the store card and getting 10% off a purchase (for instance), they’re getting a good deal. Over the long term, however, these store brand cards can cost you more.

Credit One Bank: slimy new annual fee practice

Credit One Bank (not to be confused with Capital One, even though they share a similiar logo) has raised the annual fee to a whole new level of under-handed: they’ll charge it to your account in monthly installments.

That’s what we learned when one member received a Credit One Bank Platinum Visa solicitation – complete with a $7 “premium design” option.

Credit One offers “no enrollment fee” (whatever that means), but they do charge a hefty annual fee: $75 for the first year, and $99 each year after that. For your convenience, they’ll include that in your monthly bill at $8.25 a month. So no matter what, you have something to pay each month.

Isn’t that thoughtful?

But then being thoughtful isn’t part of Credit One’s business plan. There are plenty of complaints about them on the Web. Add this monthly annual fee charge to that list of complaints.

Worst credit card ever: First Premier Bank

In all the Visa card research we’ve done, we finally found a credit card that takes the cake: First Premier Bank‘s credit card.

Why is it the worst? The South Dakota-based bank’s interest rate took our breath away:

First Premier annual fee

And here we thought 29.99% was the most we’d ever seen. Hope you enjoy that $10 purchase, because it could cost you $16 on your next bill.

How about fees? First Premier has them in spades:

First Premier fees

How about $75 in annual fees? Or $36 per year even after you close your account? They won’t even consider your application unless you pay that $45 processing fee.

Here’s our favorite:

First Premier internet fee?

An “internet fee”? To manage your account online, you have to pay $4?

It gets better: First Premier’s online application only asks for $95 to get the whole thing processed. Even if you wanted to apply, good luck visiting their site without getting hit with a swarm of pop-up ads:

First Premier Bank has a record of misleading potential customers and engaging in shady credit card practices. Read the fine print on their credit card statements, and it’s not hard to figure out why.

First Premier claims to “lift others up,” but really – with all those fees – they’re tearing your financial life down.

Useful ideas for your old Visa card

What to do with that closed-out, expensive, higher-rate card from a big out-of-town bank?

Cut it up and use it as a guitar pick! That’s what Financial Facts recommends, along with 10 other oddball ideas. Many Americans have wallets filled with harmful credit cards – why not put them to good use, like combing your hair or cutting your food?

It’s like finding uses for those old AOL discs you got in the mail. Just make sure you close out your account first.

Big bank balance transfer rates going up

Bad news if you play the credit card balance transfer game, says MSN Money:

In July, JPMorgan Chase, the largest credit card issuer in the country, cited the new federal regulations when it sent letters to its customers informing them that the bank will increase its maximum balance transfer fee to 5% — the highest charged by any issuer. Subsequently, the company stopped including balance transfers in most of its new offers.

…Bank of America – the second-largest issuer – has increased its maximum balance transfer fee to 4%…The standard balance transfer fee had been about 3% – and some issuers also limited the total fee, often to less than $100, with caps.

From the research we’ve done, most big bank credit card issuers charge some sort of balance transfer rate on top of the regular rate for each transaction total.

American 1? We don’t charge any balance transfer fee.