Capital One is giving current and potential cardholders who love music a good reason to use their Capital One Quicksilver credit cards: a 50% rebate on Spotify Premium.
From now through April 30, 2018, Spotify Premium customers who pay for their subscription with a Capital One Quicksilver or QuicksilverOne credit card will automatically get half of the cost rebated back to them as a statement credit.
Walmart announced last week that it would no longer offer 0%-interest credit card promotions that use a “deferred interest” model. With “deferred interest” offers, credit card holders can finance larger purchases at a 0% rate for a set period of time (usually 6 or 12 months), but they must pay off the complete balance within that promotional period or all of the interest that would’ve accrued since the date of purchase suddenly gets added to the bill.
As a blog post from Walmart’s Daniel Eckert points out, using a 12-month period as an example, “…even if you have just a fraction of the purchase price left to pay on day 366, you could owe 12 months’ worth of interest based on the balance. That means your wallet could take a significant hit.”
Nissan has launched a new rewards Visa credit card in partnership with Synchrony Bank that will allow cardholders to earn points that can be redeemed toward a future Nissan or Infiniti purchase or lease, as well as other reward options.
Cardholders will earn points under the following formula:
- 5 points per dollar spent on gas purchases as well as on products and services at Nissan dealerships
- 3 points per dollar on dining purchases
- 1 point per dollar on all other purchases
U.S. Bank announced the launch today of the Altitude Reserve Visa Infinite credit card, a travel credit card ripe with perks but also a hefty $400 annual fee. While the card aims to compete with rival cards such as the American Express Platinum Card and the Chase Sapphire Reserve Card, it limits that ambition by making the card available only to existing U.S. Bank customers. (Applications are only accepted from those who have had a different U.S. Bank account open for at least 35 days.)
Among the Altitude Reserve’s perks are $325 in travel reimbursements each year, 3 points per dollar on travel purchases and mobile wallet purchases (1 point per dollar on all other purchases), free in-flight Gogo Wi-Fi (12 passes per year), airport lounge access, and other features you would expect from a high-end travel card. The Altitude Reserve is also a metal credit card, which has no value beyond aesthetics but is attractive to certain cardholders.
By all accounts, credit card spending is increasing. Consumer credit card debt now tops $1 trillion. The American Bankers Association says over 88 million new card accounts were opened in the fourth quarter of 2016, including a 16% increase in subprime (poor credit) accounts. And while this may be good for the economy, several credit card issuers reported this week the downside: increased chargeoffs.
Capital One, Discover, and Synchrony Financial all reported results that showed more customers defaulting on their credit card loans, requiring the banks to increase their reserves for potential loan losses. Delinquencies increased as well.
Throughout our history, we at rahulgandhi have strongly dissuaded our readers from choosing credit cards with annual fees, even if the reward formulas of these cards seemed enticing. For most credit card users, the annual fees were rarely worth it. A cardholder would generally need to spend at least a thousand dollars per month on his or her credit card just to break even on many cards once the annual fee was factored in. Our opinion was to stick to the best no annual fee card that offered rewards matching your spending patterns.
For most people, that advice is still sound. Lately, though, we are starting to budge when it comes to annual fees. A little. Why? Two reasons.
1. Credit card usage continues to expand
People are putting more and more of their purchases on their credit cards. For years the credit card industry has tried to train consumers to charge even their smallest purchases. It took a long time, but the effort has worked. In the past, many people would’ve never considered pulling out a credit card for a purchase under $10. Now it is common. Overall, that means credit card users are racking up much higher balances — it’s no wonder that credit card debt recently topped $1 trillion in America. Therefore, more and more cardholders are routinely charging $1000 or more per month — and many purposely try to put as many of their expenses on cards as possible to maximize their rewards. (This is a great idea, but only if you are paying off the complete card balance each month.)
Plastc, an entrant in the so-far woefully unsuccessful all-in-one smart card market, announced yesterday that it has ceased operations. Plastc reportedly took over $9 million in pre-order money from 80,000 or so would-be customers, only to tell them they will not be getting the product they paid for.
Plastc and its competitors launched with the idea of “one card to rule them all” — you could input all of your credit cards into just one smart card and switch between the cards whenever you made a purchase. In this way, you could carry fewer cards and also maximize your card rewards based on the type of purchase being made. However, none of these startups have been able to manufacture a working product on any real scale, and some (like Plastc) never produced an actual product at all, only promises.
Credit card default rates increased for the fifth straight month in March, reaching a level not seen in almost four years, according to the latest S&P/Experian Consumer Credit Default Indices report.
The current bank credit card default rate is 3.31%, according to the report, up from 3.22% in February. Default rates are highest in the south, with the states grouped as East South Central (Kentucky, Tennessee, Alabama, and Mississippi) being the highest, with a default rate just slightly under 4%.
Over 80% of small business owners who obtain financing do so using their personal credit history, according to a new survey conducted by the 12 Federal Reserve Banks. The 2016 Small Business Credit Survey also reported that owners were more likely to draw on their personal funds to finance a business before deciding to take on debt.
The smaller the business the more likely the owner was to use personal finances and/or their personal credit score to get credit to fund the business.
FICO announced today that over 200 million consumer credit and loan accounts in the United States now include free access to the FICO credit scores those lenders use in making credit decisions.
Over 100 financial institutions are providing FICO credit scores for free to their customers through the FICO Score Open Access program, which allows lenders to share, for free, the FICO scores they are already paying for in making credit decisions. For customers who take advantage of the free scores, they get a window into how lenders see their creditworthiness without having to pay for it.