Credit cards - Brief Article

Kiplinger's Personal Finance Magazine, Sept, 2000 by Joan Goldwasser

Just what you need: a credit card with a quarter-of-a-million-dollar limit

Now that virtually any Tom, Dick or Mary can qualify for a platinum card, MBNA brings you the next level of exclusivity: a translucent Quantum card for seriously upscale consumers. The card itself offers a credit limit of up to $250,000. But for really big spenders, a back-up credit line lets the truly worthy dig themselves a full $1 million into debt.

Quantum offers a few perks not available with no-fee platinum cards. There's a special Web page where users can access account information and a concierge to fill requests, such as procuring theater tickets or arranging business trips. MBNA says cardholders will also receive preferred rates on money-market accounts and CDs, but won't says how much more they'll get than those of us who carry more plebeian cards.

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 (P)                 9.95      9.95/none       50
USAA Savings (G,P)          10.5      10.5/none       45

                             LATE/       TELEPHONE
ISSUER                     OVER LIMIT      NUMBER

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

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

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

Capital One (P)              9.9%     19.8%/2.5%    25 days
Wachovia (G)                10.9      19.99/4       20 days
AFBA Industrial Bank (P)    11.5       15.9/2       25 days

                             LATE/       TELEPHONE
ISSUER                     OVER LIMIT      NUMBER

Capital One (P)             $29/$29     800-822-3397
Wachovia (G)                 29/29      800-842-3262
AFBA Industrial Bank (P)     15/none    800-776-2265

Rebate cards Best of the rebate cards

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

Amex CashRebate (P)           19.49%      22.49%/3%      none
GE Rewards MasterCard (P)     14.4         19.99/3       none
Waterhouse Investors
  Prime (G)([dagger])         14.25        14.25/2       none
                            ([dagger])

                            REBATE      TELEPHONE
ISSUER                       TERMS        NUMBER

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

(*) As of July 7; 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

SOURCE FOR LOAN RATES AND CREDIT CARDS: Bankrate.com, a division of llife.com, N. Palm Beach, Fla.; 800-327-7717, ext. 274.