Credit cards - interest rates - Brief Article - Statistical Data Included

Kiplinger's Personal Finance Magazine, Feb, 2001

Holiday-inflated balances make this the best time to take advantage of rock-bottom teaser interest rates

If you took part in the holiday shopping spree that was expected to add $100 billion to Americans' credit card bills, chances are your outstanding balance is at its high point of the year. So you should be highly motivated to hold down the carrying charges.

Target the highest-interest-rate debt first. Or take advantage of a teaser rate to transfer the balance on a high-rate card to a temporarily tow-rate card. For example, First USA (866-932-3808)is offering a 1.9% rate on transferred balances and new purchases until July. Your mailbox may be swamped with similar offers. Pay off as much of your debt as possible while the almost-free rate applies, and be prepared to transfer again when the teaser rate expires. First USA's rates could climb to more than 15% when the promotion ends. --JOAN GOLDWASSER

Low-interest premium cards Best if 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 air-miles card (for travel on all major
airlines)

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

Visa MilesOne (P)([dagger])    9.9%      19.8%/2.5%      19
Chase Travel Rewards (P)       14.9       21.05/3        25
Travel Choices Visa            17.99      17.99/3        25

                                LATE/       TELEPHONE
ISSUER                        OVER LIMIT      NUMBER

Visa MilesOne (P)([dagger])     25,000     800-548-4593
Chase Travel Rewards (P)        25,000     800-500-2153
Travel Choices Visa             25,000     888-349-2632

(*) As of Dec. 6; 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]) pays air miles on balances transferred up to limit

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.