This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Credit Card Changes So Far in 2010

NEW YORK ( TheStreet) -- Last year was a difficult one for credit card customers. Interest rates increased significantly, credit limits were slashed for millions of cardholders, issuers closed risky accounts and rewards were decreased.

Many consumers wondered what would happen after the CARD Act and other regulations went into effect this year. Would credit card consumers really benefit?

Despite regulations, credit card issuers are still increasing rates and fees in 2010, but less dramatically than last year. Here are some changes banks and credit card issuers have made.

Rate increases: Compared with 2009, this has been a slow year for rate increases. Issuers raised rates dramatically while it was still easy, and most have not made wide-ranging increases since. Here are some recent changes:

Capital One (COF - Get Report) increased the rate on its Classic Platinum credit card to 19.8% from 16.9% and on the No Hassle Cash Rewards card to 19.8% from 17.9%.

Citigroup (C - Get Report) increased its cash advance APR to 25.24% from 21.99% in February.

Overall, rates are still rising. Based on the 1,000-plus cards in the Complete Credit Card Index, the average advertised APR for credit cards is 13.62%. Six months ago, the average was 13.24%, and a year ago the average was 12.12%.

Higher fees: Discover (DFS) increased the cash advance fee in January to 5% with a $10 minimum from 3% with a $5 minimum.

Bank of America (BAC - Get Report) added an annual fee for a limited group of cardholders that started in February. The fee ranges from $29 to $99 and is applied to the selected accounts based on risk and profitability.

Citigroup increased its balance transfer fee to 4% from 3% in June. It also raised the cash advance fee to 5% with a minimum fee of $10, from 3%.

Citigroup added a $60 annual fee to some credit card accounts in April. If consumers make $2,400 in purchases each year, the fee is credited to users' accounts.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
HBC $0.00 0.00%
BAC $15.53 1.40%
C $51.71 1.40%
COF $79.52 1.10%
JPM $61.21 2.80%


DOW 17,975.14 +262.48 1.48%
S&P 500 2,077.19 +16.17 0.78%
NASDAQ 4,930.1010 +38.8820 0.79%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs