About This Credit Card Directory
TPIF is a portal of credit card and loan offers applicable online. Browse through the offers, compare the terms and apply for the best one! Comparing credit card benefits are made easy here. It's very easy to locate the card that fits your needs more. Either you are looking for a Platinum credit card with the lowest Annual Percentage Rate (APR) or a credit card with reward points, you'll find it here.
Offers updated daily.
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Survey Finds Top Credit Card Issuers Not Doubling Minimum Payments
Contrary to reports in many media outlets, an IndexCreditCards.com survey of the seven largest credit card issuers found that none is doubling credit card minimum payments. In fact, most are adhering strictly to new federal guidelines or believe that their current minimum payment formulas are adequate to satisfy the government’s desire to see credit card balances paid in a reasonable amount of time.
Cleveland (PRWEB) January 4, 2006 -- Contrary to reports in many media outlets, an IndexCreditCards.com survey of the seven largest credit card issuers found that none is doubling credit card minimum payments. In fact, most are adhering strictly to new federal guidelines or believe that their current minimum payment formulas are adequate to satisfy the government’s desire to see credit card balances paid in a reasonable amount of time.
Guidance from the government’s Office of the Comptroller of the Currency suggested that card issuers should require their customers to pay monthly at least one percent of their principal credit card balances, plus all finance charges and any fees. The goal was to get balances paid down -- under the previous industry standard two percent minimum payment, customers with high balances could conceivably "meet the minimum" without even paying off a full month's interest, much less taking a chunk out of the principal balance.
While the government’s guidance led to fears that credit card minimums might double, information from the seven largest card issuers (who own an estimated 60% to 70% share of the credit card market) suggests otherwise:
• Four of the largest issuers are strictly adhering to the new guidelines of one percent of the principal balance, plus interest and fees.
• Two issuers are making no changes, due to long-standing minimum payment policies that the companies feel already address the government’s concerns.
• One issuer has thus far made no change to their minimum payment policy of 2% of the credit card balance.
“In mid-December we reported that claims of minimum payments doubling were not accurate; now we have the proof,” said Justin McHenry, Research Director for IndexCreditCards.com. “Most credit card issuers are adhering to exactly what the government suggested or are sticking with minimum payments already above those guidelines. While some customers will see increased credit card minimums, the impact will be slight--certainly not a doubling.”
By way of example, a person with a $10,000 credit card debt and a 19% annual interest rate would have a required monthly payment of approximately $203.16 using the old 2% minimum payment standard. Under new requirements that most issuers are using, the monthly payment would be $258.33 ($158.33 in interest, plus $100 of the outstanding balance). This is a difference of roughly $55 - on a balance and interest rate that exceeds what the average consumer is carrying.
Specific information on the minimum payment standards for all of the seven largest credit card issuers can be found at http://www.indexcreditcards.com/minimums/.
About IndexCreditCards.com
IndexCreditCards.com offers credit card news, research, and perhaps the most comprehensive index of credit cards available on the Internet today, with a master listing of over 600 credit cards as well as categorized lists based on interest rates, reward programs, business credit cards, student credit cards and credit cards for those with poor credit histories.
Information provided in this release may be reproduced free of charge, provided credit is given to http://www.IndexCreditCards.com.
Contact: Justin McHenry, 216.221.0312
Website: http://www.IndexCreditCards.com
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Low APR credit cards are on the rise
Yes, low APR credit cards are on the rise. Many credit cards are competing for your business to give you the best and lowest rates available today. There are so many credit cards from you to choose from that they are doing all kinds of things to get your attention including lowering their interest rate and giving you no annual fees.
Why is this happening? Because there are so many credit card companies. They all want your business and this is an attractive incentive to get you to apply and own one of their credit cards. If you choose a low APR credit card over one with 19.99 percent you are sure to go with the lower APR.
The only problem is that sometime these 0% and low APR credit cards are only promotional ways to get you to apply and then later your interest rate will rise. Many credit card companies have low APR credit cards for a certain amount of time such as 3 months, 6 months and some up to one year. You will have to compare to find out which one keeps the lower APR after the promotional period to ensure you are getting the best deal around.
No matter what the reason low APR credit cards are here to stay as long as the companies are competing for your business. Just remember to compare everything they offer besides the lower interest rate. You may find that several credit card companies are now offering other wonderful incentives for you to apply with them such as reward programs.
No matter which company you choose, you will enjoy the low APR credit cards even if it is only for a limited time. You will be able to save money on your purchases because you will not have to pay any interest until the promotional period is over. Just be sure your balance is very low when the interest rate kicks in and you will be fine.
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