Credit Cards

We've covered Pentagon Federal Credit Union's tremendous Visa Cards exensively. We regret to note that their longstanding "life of the balance" promotional rate offer on these cards have ended. In effect, one of the last exceptional unsecured loan options available to prime borrowers has been cut back subtantially.

Today the Pew charitable trusts released a short report entitled "Safe Credit Card Standards". Pew surveyed credit card offerings from all of the largest issuers, then consulted with various stakeholders--including representatives from credit card issuers.

Late last year, Chase's credit card division decided to change the terms on accounts where customers had taken advantage of low-rate loans which were to be paid back over "the life of the balance".

Yesterday we examined why and how credit card companies are seeking money back from the customers they once so eagerly loaned to. As discussed, we're seeing "carrots, cajoling, and sticks" the likes of which we haven't yet seen among prime card companies.

The background: card companies are panicking. It's been widely reported that as the credit crunch has evolved, credit card companies have grown ever more eager to have their customers pay down their balances. While there are several reasons behind their sense of urgency, two stand out. First, card issuers have all but lost their ability to "securitize" their loans.

 This article will the first in a series devoted to helping readers select credit cards best suited to their needs.
 
Choosing a credit card can be a daunting process. Since no card is best for all types of credit card use, it pays to think through just how new credit be used. Credit cards can be categorized based on how well they serve three distinct purposes.
 

From time to time, www.rethinkingmoney.com will review financial products and services that we think offer exceptional opportunities to our readers. The first in this series covers an offer announced in May 2008 by  Pentagon Federal Credit Union.