OnlineCreditCardBlog

Amex Business Credit Cards No Longer Allow Balance Transfers

ccwatcher — Fri, 21 Nov 2008 14:47:06 +0000

In what could be a portent of things to come, American Express has sent notice to all of its OPEN small business credit card holders that it will no longer process balance transfers or convenience checks. In card holders’ November statements is the notice:

Effective immediately, Balance Transfers and Convenience Checks against OPEN Credit Card accounts will no longer be accepted or available. This includes requests made by phone, online or through the use of Balance Transfer, Convenience Checks and Cash checks.

I called Amex and they confirmed that all small business credit cards are affected, including new accounts.

This is clearly bad news for small business owners. In the current economic climate, businesses can no longer rely on their open lines of credit to be there when needed. Businesses would be well advised to hold adequate cash reserves, have lines of credit from multiple creditors and if necessary, to draw on these lines in advance of when they are required.

This post is from Credit Card Watcher’s Credit Card Deals Blog.

Amex Business Credit Cards No Longer Allow Balance Transfers

Swipe Your Card for the Salvation Army

janna — Wed, 19 Nov 2008 21:50:42 +0000

We’ve all been there: exiting a department store, juggling gifts as we brave the cold, preparing to step out into a crowded parking lot, only to be greeted by a Salvation Army volunteer. Bell ringing, kettle gleaming, the volunteer smiles warmly. We think about donating a few dollars, but soon realize that we’ve got no cash on hand. It’s a common dilemma in our increasingly cashless society.

Now the Salvation Army has come up with their own solution. Expanding on an idea that’s already in play in Charlotte, NC, and Phoenix, AZ, the charity will be experimenting with cashless kettles in 12 new locations throughout North Texas. The organization says that by adding card-swiping technology to its storefront kettles, it took away the frequent excuse of not having cash on hand. Another benefit of this system is the paper trail it creates. People who make credit card donations get a printed receipt proving that they contributed to the charity. These receipts can be collected and used for tax deduction purposes.

Of course, anyone from any state can use their credit card to donate to the Salvation Army by giving through the organization’s official web site. You can also set up your own online red kettle to raise money for those in need.

CitiGroup Goes Back on its Word

janna — Wed, 19 Nov 2008 21:17:04 +0000

“Citigroup is reneging on a promise it made to tens of millions of credit card customers in good times.” If that lead-in to this New York Times article sounds a bit harsh, that’s because it is.

Citigroup once vowed before Congress that it wouldn’t raise rates until an account expired. That was in the early part of 2007. Now it’s late in 2008, and the credit crisis has caused Citigroup to go back on its promise, earning them a harsh tongue-lashing from critics.

If you’re a Citi cardholder who hasn’t had a rate hike in the past two years, you can bet that one’s coming. Customers will see their interest rates jump 3%, putting some of them over the 20% interest mark. It might be a good time to shop around for a new credit card.

On the other hand, the economic climate is making many companies do things they deem necessary to retain profitability. American Express has hiked rates and laid off thousands of employees, and some financial institutions have folded altogether. Still, Citi is finding very little sympathy.

Representative Carolyn Maloney of New York says that she understands why Citi is doing this, but she doesn’t like it. Says Maloney, “Apparently a deal is only a deal when it doesn’t cost the financial institution too much money.” Ouch.

Got Mail from Your Credit Card Company? Better Open It.

janna — Wed, 19 Nov 2008 20:39:45 +0000

Have you received a letter from your credit card company? Sometimes we toss these out, thinking they’re just advertisements for card services or prescreened offers of credit. But you should open everything your credit card company sends you these days. It might have important information about your account.

Times are hard, and even banks are wary of lending to one another. With little available credit and record levels of default, many credit card issuers are trying to do whatever they can to recoup their losses.

Many times, the letters they send you will contain information about your credit limit. Namely, it might decrease significantly and with little warning. You don’t even have to be a delinquent borrower to experience this effect; if you’re considered a credit risk for any reason, your limit could plummet – and take your credit score down a few notches as well.

Letters from your credit card issuer might also contain amendments and changes to your cardholder’s agreement. Credit card companies reserve the right to make changes when they deem necessary. For the convenience of carrying a credit card, we have to agree to those terms. Still, it can be frustrating when your fees and interest get hiked for no good reason.

Old-fashioned negotiation is one way you can fight back against unfair changes. Talk to a supervisor and ask them to work with you. (Note: this only works if you’ve been a good customer.) You can also keep a variety of cards, and transfer your balance to more favorable ones when terms get tough.