Say Goodbye To Co-Branded Credit Cards

A lot of banks has launched a co-branded credit card, but they are now on the verge of going out. Read the highlights of the article below and find out.

"Co-branded credit cards are passe. Instead multi-brands are here to stay. Recent surveys conducted by banks show that co-branded credit cards are losing favor with customers who find the exercise more limiting than enriching. To counter this, banks are exploring multiple tie-ups to provide value additions on credit cards, paving the way for multi-branded credit cards. Some also prefer to go the proprietary cards way.

A case in point is HSBC, which has exited its co-branded credit card business and decided to go with plain vanilla credit cards for its customers. A senior official of the bank said: “We decided to exit from our co-branded credit card business in India, as we found that it was not profitable. Instead, we are offering generic propositions to our customers and we find that they are finding this more meaningful than co-branded cards.”

Another banker who endorses the view is HDFC Bank’s senior vice-president and head of credit cards, Pralay Mondal. “We have seen that single synergy cards, which you call co-branded cards, have actually not done well, as customers find them very restrictive. Instead, banks are now looking at three-way or four-way synergies, which the customers can find more value in.”

Co-branding is essentially two major brands converging to enhance the image and saleability of both products. A co-branded card, by definition, is an affinity card issued through a partnership between a bank and a service provider. While, a multi-branded card involves a partnership of more than two companies, which agree to come together to offer a large set of incentives to its customers, and leverage on one another’s strengths to increase their bottom line."

Highlights of the article are from:
http://www.financialexpress.com/fe_full_story.php?content_id=110740

Hidden Charges, Part 2

4- Tricky fixed rates

Many people are enticed to get a credit card due to an offer of a fixed interest rate. Generally, the conception here is that the interest rate, while neither remarkably low nor high, will not fluctuate as long as you hold the card.
While this may occur, the truth is a "fixed rate" deal simply means companies have to give a sparse 15 days notice to customers before un-fixing, and essentially raising it. One day, you can happily have a 9% rate, and then, two weeks later, you'll be informed that it's being changed to 12%.

5- Unnecessary insurance

Don't even bother reading about how much insurance will protect you in case your card is stolen. It's not worth your time or money because federal laws in the U.S. prohibit credit card companies from charging you more than $50 for such an unfortunate incident.

6- Balance transfers
It's never fun getting stuck with a high interest credit card. A smart way to rid yourself of this unsightly demon is by switching to a lower-interest card. On paper, this sounds great, but, like I always advise, read the fine print. You'll find that there is likely a fee attached to this move; usually 2 to 4% of the sum transferred.

http://www.askmen.com/money/investing_60/97c_investing.html

iD Card

NTT DoCoMo launched their new credit card. Read the highlights of the article below:

"As expected, NTT DoCoMo has finally launched its own its own credit card brand. The new “card”, called iD, will enable users to make payments using their mobile phones. According to the Japanese mobile giant a number of its new handsets will offer the credit card functionality. Using the new iD card system DoCoMo customers will be able to pay for goods and services by swiping their phones over a dedicated RF reader. Payment will then be automatically deducted from their credit card account.

DoCoMo has pioneered this form of mobile payment using the FeliCa system, which enables users to make micro-payments with their handsets. Subscribers to the new credit card system will be able to make larger payments using their 'o-saifu-keitai' (mobile wallet) and a password for authorisation. Smaller payments will be processed automatically without the need for a PIN number. Should the phone be lost or stolen it can, DoCoMo says, be automatically and instantly locked. DoCoMo itself will act as a credit card provider from the first half of fiscal 2006."

http://www.3g.co.uk/PR/Nov2005/2300.htm

Record High Debt

"The percentage of overdue U.S. credit card accounts jumped to a record in the second quarter as gasoline prices surged, the American Bankers Association said.
The share of delinquent credit card accounts rose to 4.81 percent during April to June from 4.76 percent in the prior three months, the group said today. The first-quarter figure was revised up from 4.03 percent. The previous record of 4.43 percent was set in the fourth quarter of 2003.

``Gas prices are taking huge chunks out of wallets,'' James Chessen, the group's chief economist, said in a statement. ``With gas prices still rising, the third quarter is not likely to be any better.''

Gasoline prices averaged $2.227 a gallon on June 30, 17 percent higher than a year earlier, according to the AAA, the largest U.S. motoring organization. Prices jumped to $3.057 on Sept. 2 on speculation that Hurricane Katrina would spark widespread fuel shortages.

Katrina and surging oil prices led economists to pare U.S. third-quarter growth forecasts by a half a percentage point in the latest Bloomberg News monthly survey. The U.S. economy will grow at a 3.6 percent annual rate from July through September instead of the 4.1 percent forecasters predicted a month ago, based on the median estimate in the latest monthly survey of 57 economists."

Highlights of the article are from:
http://www.bloomberg.com/apps/news?pid=10000087&sid=aK6fGblOqKCo

Cashplus

If you are having financial difficulty and wants to have a credit card, this card is for you. Read the highlights of the article below:

"Millions of people facing difficulties in obtaining a credit card, as well as parents who want to control their children’s spending, were last week thrown a lifeline – at a price – by the launch of a new pre-paid card.
The new Cashplus card from MasterCard can be used in shops, on the internet or over the phone in exactly the same way as any other credit or debit card. When the money on the card runs short, it can be topped up.

MasterCard says its new product means debts cannot be incurred. There is no need for a bank account or credit check, making it ideal for people with court decrees, or who have been declared bankrupt. Many parents may also see Cashplus cards as a convenient way of regulating children’s spending. Although applicants must be 18, additional cardholders can be as young as 13. The card can also be used at any MasterCard outlet worldwide, ideal for teenagers on an extended trip abroad. Phil Davies, business development director at MasterCard Europe, says: “We are witnessing the evolution of a true plastic democracy.”

However, money experts fear Cashplus’s heavy charges are a major disincentive. It costs £9.95 to apply, £4.95 to replace a lost card, with a monthly fee of £4.95. Topping up or a withdrawal from an ATM costs £2. Claire Whyley, deputy policy director at the National Consumer Council, says: “People without bank accounts are the poorest and most vulnerable in society. It seems they’re being charged a high price for spending their own money.”

Richard Mason, director of credit cards at Moneysupermarket, a price comparison website, says: “It is very rare to see a new product that has no advantages for anyone. But MasterCard has managed to pull it off. As far as I’m concerned, there aren’t any pluses to this card."

Highlights of the article are from:
http://www.sundayherald.com/51854

Do They Understand The Use Of Credit Cards

School has just opened and I am sure that a lot of credit card companies are fishing for new cardholders. But not all college know the ins and outs of having a credit card. Read the highlights of the article below and find out.

"Every year, as new freshmen walk onto the University of Iowa campus, they get bombarded with temptation; everything from alcohol to credit cards.
The average debt for college students ranges from $500 $3,000.

It is nothing new. Incoming freshmen are offered a free T-shirt or 10-percent off their purchase if they get a card. It can be all downhill from there.

All Iowa freshmen and their parents get a crash course on credit cards.
Member of the Student credit and money management service committee Cathy Wilcox said, "One of the things we're trying to educate students on is not to live beyond their means."

It is not easy explaining what is beyond an 18-year-old's means.
Take a credit card with $2,500 and 15 percent interest.
With a minimum monthly payment of $50, it would take 16 years to pay off the debt.
The total interest would be more than the original debt.
Some students get it.

Senior Chrissy Squire said, "Everywhere I go, everyone's asking, 'Would you like to apply for a credit card and get 10 percent off?' Though it's tempting, I try not to. Don't want bad credit." Other students either do not get it, or they do not need to."

Highlights of the article are from
http://www.kcrg.com/article.aspx?art_id=97828

IN Chicago Card

American Express launched a new credit card especially made for the people of the windy city. Read the highlights of the article below from: http://biz.yahoo.com/prnews/050919/clm510.html?.v=6

CHICAGO, Sept. 19 /PRNewswire/ -- American Express today launched the latest must-have item for hip Chicagoans in the know - the IN:CHICAGO Card, a fee-free credit card designed for young and social Chicago residents that offers exclusive rewards at some of the city's hottest restaurants, swank clubs, live entertainment, and cultural institutions. The Card will be a first of its kind in the city of Chicago. In celebration of the IN:CHICAGO Card, American Express is sponsoring Fashion Focus Chicago 2005, an 11-day celebration running from September 19th-29th, spotlighting the many distinctive aspects of the Chicago fashion industry.

"We wanted to launch a Card just for the people of Chicago that celebrates the amazing landscape of restaurants, clubs, and cultural institutions," said Beth Lacey, Senior Vice President, Strategic Alliances and Cobrands for American Express. "The IN:CHICAGO Card is designed for young Chicagoans who take tremendous pride in their city and want more access to some of the hip and legendary places that make Chicago great."

Benefits and Rewards of Being an IN:CHICAGO Cardmember Accepted at every establishment that welcomes the American Express® Card, the IN:CHICAGO Card is a fee-free credit card that comes with 0% introductory purchase APR and gives Cardmembers the flexibility to pay over time.(1)

The IN:CHICAGO Card boasts a unique loyalty program - INSIDE Rewards - built for active Chicago residents who see going out as an essential part of living in the Windy City and want to eat, drink and play at many of the most fashionable spots in town. Cardmembers can earn INSIDE Rewards points quickly toward rewards by using the IN:CHICAGO Card."