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Provided by LowCards.com
Credit Card Debt Declines as Consumers Pay Down Balances
A new TransUnion study shows that consumers made an estimated $72 billion more in payments on their credit cards than purchases between the first quarters of 2009 and 2010. Five years earlier, consumers made an estimated $2.1 billion more in purchases than payments. That is a big change in payment dynamics and TransUnion says this shows cardholders are paying down their balances and contradicts the belief that balances have declined primarily because of charge-offs. In the first quarter of 2010, the average credit card debt per borrower was $4,679, a 10-year low. The average debt was $5,776 in the first quarter of 2009 and $5,165 in the first quarter of 2010. [LowCards.com]
MasterCard Profit Climbs 33% as Consumer Spending Increases
MasterCard Inc., the world’s second- biggest payments network, said second-quarter profit rose 33 percent, beating estimates as customers’ spending increased. MasterCard’s second-quarter gain took place as consumer spending in the U.S. unexpectedly fell in June for the first time in almost two years as unemployment rose to 9.2 percent. [Bloomberg]
The Nation’s Largest Banks Are Still Charging Steep Overdraft Fees
The country's largest banks are still charging steep overdraft fees. A survey released by the Consumer Federation of America found that the median overdraft fee is $35, the same as it was last year. The highest fees also remain $33 to $37 per overdraft. The fees can be triggered if customers overdraw their checking accounts by as little as $5. In addition, the survey found that two-thirds of banks continue piling on fees if customers fail to balance their accounts within a set time. For example, JPMorgan Chase charges an “extended overdraft” fee of $15 after each five-day period that an account stays in the red. The survey by the Consumer Federation of America also found that banks still allow multiple overdraft fees to be charged in a single day. [Associated Press]
Consumer Tips on Airline Miles Credit Cards
As the costs of flying continue to climb, buying airline tickets with reward points can save a lot of money. But there are many cards that offer airline rewards and it can be confusing to find the right card. In addition, even if you have the right card and earn enough miles, getting the free flight you want is not easy. Limited options around free flights is one of the frustrations of generating airline miles with your credit card, whether it is a generic travel credit card (such as a Discover More or Capital One Venture card) or an airline sponsored credit card (like the Continental OnePass Plus card). In the last five years, the number of Americans who use cards that accumulate points for merchandise and/or airline tickets has increased 23%, according to a study by Vertis. [LowCards.com]
Verizon, American Express Partner on Mobile Payments
Verizon Wireless said it will use technology from American Express Co. for mobile phone payments, a move that underscores a growing realization among telecom carriers that they need help from financial institutions in the burgeoning mobile payments market. The Verizon-Amex partnership will enable customers to use Amex-designed payment software called Serve on mobile phones and tablet computers. Amex unveiled Serve, which will come preloaded on Verizon Wireless phones and tablets, earlier this year. Serve enables users to send and receive money from mobile devices, using accounts provided by Amex. [Wall Street Journal]
Delta Adds New Benefits to SkyMiles Credit Card
Delta SkyMiles Credit Card from American Express will add new benefits on September 1. The benefits will apply to Gold, Platinum and Reserve Delta SkyMiles Credit Cardmembers and up to eight companions traveling on the same reservation. New benefits include early boarding that allows cardmembers and companions to use Zone2 priority boarding. It will also give a 20 percent discount on food beverages and entertainment on Delta-operated flights when they use a Delta SkyMiles credit card. The 20 percent discount will appear on the cardmember’s account statement. Cardmembers and their travel companions who are traveling in the same reservation already receive a first checked bag free on all Delta and Delta Connection flights (maximum nine waivers per reservation). [LowCards.com]
LowCards.com Weekly Credit Card Rate Report
Based on the 1000+ cards in the LowCards.com Complete Credit Card Index, the average advertised APR for credit cards is 14.15 percent, slightly below last week’s average of 14.16 percent. Six months ago, the average was 13.41 percent. One year ago, the average was 13.67 percent. [LowCards.com]
