Credit cards - Brief Article

Kiplinger's Personal Finance Magazine, Jan, 2001 by Joan Goldwasser

This battle over late fees is more about principle than principal

Chase Manhattan Bank is the latest to get into hot water for setting an unreasonably early cut-off for posting credit card payments. To settle a lawsuit--without admitting any wrongdoing--Chase has agreed to push its posting deadline back from 9 A.M. to noon. It will also pay out $6.6 million to the 20 million Chase cardholders as reimbursement for charges imposed under the old system. But don't get too excited. If you were hit with such a charge between January 1993 and October 2000, you will automatically receive about $1. If you have been repeatedly nailed by late fees, though, it might make sense to file a separate claim for more. The deadline is January 31. Visit http://creditcards.chase.com/ legalnotice, or write to Chase Settlement, P.O. Box 8512, Hicksville, NY 11802.

Low-interest premium cards
Best of you carry a balance

                             RECENT    CASH-ADVANCE   ANNUAL
ISSUER                       RATE(*)    RATE/FEE(c)    FEE

Pulaski Bank & Trust (G)      8.75%     8.75%/none     $50
Simmons First National (P)    9.95      9.95/none       50
USAA Savings Bank (G,P)      10.5      10.5/none        45

                               LATE/      TELEPHONE
ISSUER                       OVER LIMIT    NUMBER

Pulaski Bank & Trust (G)      $20/$20     800-980-2265
Simmons First National (P)    20/none     800-636-5151
USAA Savings Bank (G,P)       20/none     800-922-9092

No-fee premium cards
Best if you usually pay the balance each month

                     RECENT    CASH-ADVANCE   ANNUAL
ISSUER               RATE(*)    RATE/FEE(c)    FEE

Capital One (G,P)     9.9%      19.8%/2.5%    25 days
Aria/Providian (P)    9.99      21.99/3       25 days
Wachovia (G)         10.9       19.99/4       20 days

                        LATE/     TELEPHONE
ISSUER               OVER LIMIT     NUMBER

Capital One (G,P)     $29/$29     800-822-3397
Aria/Providian (P)     29/29      888-237-4837
Wachovia (G)           29/29      800-842-3262

Rebate cards
Best of the cash-back cards

                            RECENT    CASH-ADVANCE   ANNUAL
ISSUER                      RATE(*)    RATE/FEE(c)    FEE

Amex CashRebate (P)         19.49%      22.49%/3%     none
GE Rewards MasterCard (P)   16.4        20.99/3       none
Waterhouse Investors
 Prime (G)([dagger])        14.25       14.25/2       none

                              REBATE            TELEPHONE
ISSUER                        TERMS              NUMBER

Amex CashRebate (P)          up to 2%           800-467-8462
GE Rewards MasterCard (P)    up to 2%([double   800-537-6954
                              dagger])
Waterhouse Investors
 Prime (G)([dagger])               1%           888-327-9962

(*) As of Nov. 9; rates are adjustable, often tied to the prime rate.

(c) Cash advances often have no grace period; additional fees may be charged.

(G) gold card

(P) platinum card

([dagger]) need Waterhouse account

([double dagger]) 140 annual cap

SOURCE FOR LOAN RATES AND CREDIT CARDS: Bankrate.com, a division of ilife.com, N. Palm Beach, Fla., 800-243-7720 ext. 279. Banks sometimes offer lower introductory rates.