| CREDIT CARD A.P.R. HISTORY | |
| 1990: 18.99% | 1995: 17.41% |
| 1991: 19.01% | 1996: 17.60% |
| 1992: 18.40% | 1997: 18.11% |
| 1993: 17.29% | 1998: 18.75% |
| 1994: 16.87% |
While 'Platinum' VISA and MasterCards have generally come to signify the
issuer's highest credit limits and issuer's lowest pricing, a 'Platinum'
offer may also include some of the highest fees for making a late payment,
going over the credit limit or taking a cash advance. According to a
sampling of 'Platinum' solicitations dispatched in June and captured by
CardWeb's new 'CardWatch' service, 'Platinum' late payment fees are
averaging $25.34, or about 31% higher than the industry average of $19.42.
Over-the-limit fees are also running 31% higher, $24.45 versus an $18.66
industry average. 'Platinum' cash advance fees are about 27% higher. Cash
advance fees on platinum cards average 2.67% with a $3.73 minimum compared
to 2.11% with a $2.05 minimum. For more information visit
http://www.cardweb.com.
A nationwide study of 750 college students found that nearly two-thirds
now have credit cards and more than half of student cardholders pay card
balances off each month. According to the survey conducted for Washington,
DC-based The Education Resources Institute and the Boston-based Institute
for Higher Education Policy, 82% of
college students have balances of $1,001 or less. While 59% said they pay
their balance off each month, the majority of
those who revolved balances paid significantly more than the required
minimum payment. About half of the students
surveyed indicated that building a credit history was the most important
reason for signing up for credit cards. The study
also found that 55% of students received their first card in their freshman
year in college with 25% obtaining their first
credit card in high school.
A survey released this month at the World Congress on Information
Technology shows that 80% of Americans are concerned that their financial
records may be distorted due to Year 2000 computer related failures.
According to the new 'Wirthlin Worldwide' poll commissioned by the
Information Technology Association of America, one out of four Americans
believe such 2000 failures will force them to undergo lifestyle changes.
The study also showed that 72% believe there will be business losses, 68%
anticipate possible telephone disruptions, 64% fear power outages, 56%
worry that they may lose their jobs and 42% foresee shortages of products
or merchandise.
This month marks the 20th birthday of cartoon character 'Garfield', and
MBNA is set to release a
special MasterCard to honor the wisecracking, nap-taking, coffee-guzzling,
lasagna-loving, Monday-hating, dog-punting, and now, credit-card-carrying
fat cat. MBNA and Paws, Inc. have teamed up to offer the card which will
offer rewards towards 'Garfield' merchandise. 'Garfield' first appeared in
41 U.S. newspapers in 1978 and has grown to 2,550 newspaper clients, and
nearly 600 licensees located in 111 countries around the globe. The cartoon
character is read by over 220 million readers daily. For more information
call 800-523-7666.
E*Trade, announced this month it is aiming for total cash management,
online, with the launch of a new 'Classic' and 'Platinum VISA' card to
compliment its Web site for online investing services. E*Trade and First
USA are joining up to offer the co-branded VISA cards to about 400,000
E*Trade users. The program will feature First USA's current, primary
pricing of a fixed interest rate of 9.99% and no-annual-fee. E*Trade said
it intends to offer a complete array of future enhancements such as online
bill presentment and payment from existing E*TRADE accounts, along with
various incentive offerings and loyalty programs. For more info visit
http://www.etrade.com.
Bank of America kicked off a summer POS sweepstakes for its 'Versatel
Check Card' debit card this month.
The 'Triple Win Sweepstakes' will award three grand prizes: three brand
new, yellow, VW Beetles. To kickoff the promotion nineteen BofA employees
stuffed themselves into a shiny, new, yellow VW Beetle in San Francisco,
setting a new world record. Customers who use the 'Versatel Check Card' to
pay for purchases will automatically be entered in the 'Triple Win
Sweepstakes' each time they use the card to make a purchase between now and
August 31. A total of
1,000 customers, whose names are picked during weekly sweepstakes drawings,
will win triple the amount of the purchase they made using their 'Versatel
Check Card'. All card users, whose names are entered during the July/August
sweepstakes, will be eligible to win one of the three grand prizes.
Disney opened the doors to its new "ultimate interactive adventure" this
month at the Walt Disney World Resort in FL, with American Express
providing a key entry element. The opening of 'DisneyQuest' in a
100,000-square-foot, five-story facility offers four zones of adventure
namely: explore, score, create and replay. 'DisneyQuest' utilizes an
American Express stored-value card, which is charged upon entering and is
rechargeable inside. The "DisneyQuest Card" can be initially purchased at
one of several entry options ranging from $7-$20. The card is then used at
any of the attractions or games in four zones. Play units and card balances
can be checked throughout the facility with special card readers.
