Debt consolidation is a process to combine all your high interest rate into single and lower interest rate monthly payment. It has been used by many debtors to plan for a debt relief. Commonly, a debt consolidation will be accompanied by a debt consolidation loan. The debt consolidation loan will be used to payoff all your high interest debts and you just need to focus on single monthly payment to clear the debt consolidation loan. Hence debt consolidation with a debt consolidation loan will help to make your debts more manageable to achieve your debt relief goal.
After paying off your debts with the debt consolidation loan, your credit cards balance will go to zero and now you have the maximum credit limit for usage. The dangerous part is if your do not control the uses of your credit card and continue to use them to pay for your purchases and use to pay minimum payment on your credit card balances, you will be trapped into another debt issue soon or later.
You are working hard to go through the debt consolidation process and manage to get a debt consolidation loan to clear all debts, don't let yourself fall back into the hot water and struggling to get rid of debt again. Things that you can do to avoid it from happening are:
1. Change Your Spending Behavior
If you tend to buy items spontaneously, you are an impulse buyer. Impulse buying behavior may cause you to spend out of your budget. Hence, you much change your spending behavior to avoid new debts added to you, else you effort to consolidation your debts and plan for a debt free will be a waste because new debts will snowballing to a serious debt issue if you not control it and you soon will again trap into another financial crisis. To avoid any impulse purchase, you should plan your shopping list and just buy the items in the list.
2. Make A Budget Plan
Budget Plan is an important in financial management, it enables your to have controlled on you money, know where your money will go and how much will be on each spending. You much include your debt consolidation loan repayment into your budget plan so that you have allocated budget for loan repayment. If you projected spending in your budget plan exceed your allocated budget, you need to cut away all the optional expenses such as entertainment, luxury vacations or downgrade your life style, for example if you use to buy branded cloth and shoes, you may now go for cheaper options so that you control your spending within your budget.
3. Avoid Swiping Your Credit Card
Paying with electronic money such as credit card is easy and convenient. And because of these advantages, it may cause you to over spend and not aware about it until you receive the credit card statement. Hence, avoid using your credit card again. Cancel most of your credit card could you a wise decision. You can leave one or two credit cards for emergency uses.
4. Make Full Payment On Credit Card Balance
If you can't stop using your credit card but you think that you can control swiping it just to buy items in your budget plan. Then, you must commit to yourself to pay full payment on your credit card balance each month. By paying in full on your credit card balance, you save yourself in added new debts to your account.
In Summary
Debt consolidation is a debt solution that can get you out of debt, in contrary it can lead you to trap into second debt problem. Hence, you need to accompany debt consolidation with a proper money management to ensure your debt issue resolve.
Thursday, May 9, 2013
How to Spot Credit Repair Scams And Correct Your Credit History Yourself
Millions of Americans are suffering from huge mortgage payment delinquencies and credit card debt. The two go hand in hand and are mainly the result of mortgage lenders loaning money to people that had no business getting a loan.
Many of these people are thousands of dollars in debt and looking at foreclosures and bankruptcy. This is when the scammers will jump in and try to prey on these victims.
You will start to see an increase in ads like these:
"Credit Problems? No Problem!"
"Erase Bad Credit! 100% Guaranteed!"
"Remove Bankruptcy and Liens From Your Credit File!
If you're looking for a way out of your credit problems, don't believe promises like these! All this will do is get you much deeper in debt. Don't believe the quick-fixes advertised by these guys.
There's a brisk business among so-called "credit repair" companies that charge from $50 to more than $1,000 to "fix" your credit report. In many cases, these outfits take your money and do little or nothing to improve your credit report. Often, they just vanish.
There are no quick or easy cures for a poor credit history. If a credit repair company promises you it can clean up your credit report, remember the following:
- your credit history is maintained by private companies called credit bureaus that collect information reported to them by banks, mortgage companies, department stores, and other creditors;
- these credit bureaus can legally report accurate negative credit information for seven years and bankruptcy information for ten years;
- accurate items that are within the seven (or ten) year reporting period cannot be erased from your credit record by companies advertising "credit repair" services;
- if you have a poor credit history - even if your past problems were due to illness or unemployment - time is the only thing that will heal your credit report;
- the only information in your credit report that can be changed are items that are actually wrong or beyond the seven (or ten) year reporting period;
- if there are genuine mistakes or outdated items in your report, you can fix them yourself.
In fact, you can do anything a credit repair company can do for free or for only a few dollars.
You can do this yourself by getting your credit report, creating a budget and sticking to it, and maybe even seeking some credit counseling. If you do a little searching, I am sure that you can find counseling for free.
Getting out of debt won't happen overnight. It will take time and perseverance. Hang in there and you will be able to dig yourself out of the foreclosure and bankruptcy hole.
Many of these people are thousands of dollars in debt and looking at foreclosures and bankruptcy. This is when the scammers will jump in and try to prey on these victims.
You will start to see an increase in ads like these:
"Credit Problems? No Problem!"
"Erase Bad Credit! 100% Guaranteed!"
"Remove Bankruptcy and Liens From Your Credit File!
If you're looking for a way out of your credit problems, don't believe promises like these! All this will do is get you much deeper in debt. Don't believe the quick-fixes advertised by these guys.
There's a brisk business among so-called "credit repair" companies that charge from $50 to more than $1,000 to "fix" your credit report. In many cases, these outfits take your money and do little or nothing to improve your credit report. Often, they just vanish.
There are no quick or easy cures for a poor credit history. If a credit repair company promises you it can clean up your credit report, remember the following:
- your credit history is maintained by private companies called credit bureaus that collect information reported to them by banks, mortgage companies, department stores, and other creditors;
- these credit bureaus can legally report accurate negative credit information for seven years and bankruptcy information for ten years;
- accurate items that are within the seven (or ten) year reporting period cannot be erased from your credit record by companies advertising "credit repair" services;
- if you have a poor credit history - even if your past problems were due to illness or unemployment - time is the only thing that will heal your credit report;
- the only information in your credit report that can be changed are items that are actually wrong or beyond the seven (or ten) year reporting period;
- if there are genuine mistakes or outdated items in your report, you can fix them yourself.
In fact, you can do anything a credit repair company can do for free or for only a few dollars.
You can do this yourself by getting your credit report, creating a budget and sticking to it, and maybe even seeking some credit counseling. If you do a little searching, I am sure that you can find counseling for free.
Getting out of debt won't happen overnight. It will take time and perseverance. Hang in there and you will be able to dig yourself out of the foreclosure and bankruptcy hole.
Using a Business Credit Card to Take Control of Your Business
A business credit card can be a great way to take control of you business and ensure your business stays financially secure while still moving forward and growing. The trick is knowing how to use a business card to help make your business a success rather than a failure.
Consolidating Debt
Once of the great aspects of business credit cards is that you can keep all of your business expenditures on just one card. This makes it easier to keep track of what you have spent on your business when it comes to paying taxes. In addition, receiving a monthly bill helps you see just how much money you are spending on your business each month. This ability to monitor expenditures makes it simpler for you to make modifications as necessary. In addition, most business credit cards provide end of the year summaries that make it much easier for you to analyze your annual expenses.
Many business credit cards also provide special introductory offers with low APRs. Some even waive balance transfer fees, making it possible for you to transfer all of you business expenses from other credit cards on to one card. The lower APR can save you money a great deal of money in the long run, particularly if you are unable to pay the bill in full at the end of each billing cycle.
Investing in the Future
A business credit card provides you with a revolving line of credit that makes it easier for you to expand your business whenever necessary. Many business owners, particularly those that are just starting out, need to have money available to them quickly. After all, the only way to grow a business is to invest in it. A business credit card allows you to bypass long loan application processes, thereby making it possible for you to make investments quickly and keep the momentum rolling in the growth of your business.
Look Professional
With business credit cards, you can often get your company logo in addition to its name on the card. There is no doubt this makes your business look more professional. A business credit card is a sign that you are an established, serious business. In addition, just using a business credit card is a great way of marketing your business. As cashiers see your business logo and name, word slowly spreads about your business. It's one of the easiest marketing strategies you can utilize!
Perks of Business Credit Cards
Many business credit cards provide extra perks that are nice to have as a business owner. Take the time to compare business credit cards to discover what each has to offer and whether or not the benefits are helpful for you and your business. For example, some provide special travel benefits to business cardholders. But, if you do not need to travel frequently for your business, this benefit may not be too attractive. On the other hand, some business credit cards provide discounts at certain office supply stores. If you frequently purchase office supplies for you business, this benefit could potentially save you a great deal of money. Of course, be sure the business credit card you get provides discounts to a store you actually use. Otherwise, you are once again failing to take full advantage of your business credit card.
If you take the time to compare business credit cards, you are guaranteed to find one that offers benefits or rewards programs that will be beneficial to you and to your business. Make sure you weigh all of the benefits and stipulations, including APRs, annual fees, rewards programs, and other perks before deciding on which business credit card is best for you.
Consolidating Debt
Once of the great aspects of business credit cards is that you can keep all of your business expenditures on just one card. This makes it easier to keep track of what you have spent on your business when it comes to paying taxes. In addition, receiving a monthly bill helps you see just how much money you are spending on your business each month. This ability to monitor expenditures makes it simpler for you to make modifications as necessary. In addition, most business credit cards provide end of the year summaries that make it much easier for you to analyze your annual expenses.
Many business credit cards also provide special introductory offers with low APRs. Some even waive balance transfer fees, making it possible for you to transfer all of you business expenses from other credit cards on to one card. The lower APR can save you money a great deal of money in the long run, particularly if you are unable to pay the bill in full at the end of each billing cycle.
Investing in the Future
A business credit card provides you with a revolving line of credit that makes it easier for you to expand your business whenever necessary. Many business owners, particularly those that are just starting out, need to have money available to them quickly. After all, the only way to grow a business is to invest in it. A business credit card allows you to bypass long loan application processes, thereby making it possible for you to make investments quickly and keep the momentum rolling in the growth of your business.
Look Professional
With business credit cards, you can often get your company logo in addition to its name on the card. There is no doubt this makes your business look more professional. A business credit card is a sign that you are an established, serious business. In addition, just using a business credit card is a great way of marketing your business. As cashiers see your business logo and name, word slowly spreads about your business. It's one of the easiest marketing strategies you can utilize!
Perks of Business Credit Cards
Many business credit cards provide extra perks that are nice to have as a business owner. Take the time to compare business credit cards to discover what each has to offer and whether or not the benefits are helpful for you and your business. For example, some provide special travel benefits to business cardholders. But, if you do not need to travel frequently for your business, this benefit may not be too attractive. On the other hand, some business credit cards provide discounts at certain office supply stores. If you frequently purchase office supplies for you business, this benefit could potentially save you a great deal of money. Of course, be sure the business credit card you get provides discounts to a store you actually use. Otherwise, you are once again failing to take full advantage of your business credit card.
If you take the time to compare business credit cards, you are guaranteed to find one that offers benefits or rewards programs that will be beneficial to you and to your business. Make sure you weigh all of the benefits and stipulations, including APRs, annual fees, rewards programs, and other perks before deciding on which business credit card is best for you.
Small Business Credit Card - The Good, the Bad and The Ugly
A small business credit card can help your company in many ways but of course, there is a downside if you do not know what to expect from your credit card company. Many people jump right in and apply for small business credit cards, get approved and start charging before they even read over the terms and conditions, that can be a very big mistake. However, a small business credit card can also benefit your company in several ways with great rewards and introductory offers.
Small business credit cards can be very efficient, providing you with consolidated yearly statements of your company's expense charges and aids in preventing employees from overspending. With a small business credit card, you will be able to use one single payment method and monitor your monthly billing statements. This will give you a list of all the expenses and you will be able to learn just what your company really needs to spend on a monthly basis and how to budget more wisely. You will be able to give your employees their own small business credit card for your company with a pre-set limit. This will ensure that they do not spend more than you have allotted for their department, but giving them a sense of trust for purchasing items that are needed.
On the downside, a small business credit card is still a credit card, and any overspending or unnecessary charges on your part or your employees can damage your credit rating. With a credit card, no matter what kind it may be there is a tendency to overspend unless you have a pre-set limit and pay off your balance on a monthly basis. If you carry a balance, then you will of course be paying interest on the balance. If you did not apply for a small business credit card with a low interest rate, you may find yourself going in debt more than you had planned.
If you do not make your payments on time, this will be reported to the credit bureaus. Usually this does not affect your personal credit rating but it can do some damage to your company's credit and then you may find that some companies may not wish to do business with your company.
No matter what you decide regarding a small business credit card, be sure that you find the proper credit card that suits your company with a pre-set limit for spending for your employees. If you are on an introductory offer be sure you know when it will change and what happens afterwards. If you have a 0% interest rate and it will change in 6 months, be sure you know what the new interest rate will be. This can save your company quite a bit of money and yourself many headaches.
Small business credit cards can be very efficient, providing you with consolidated yearly statements of your company's expense charges and aids in preventing employees from overspending. With a small business credit card, you will be able to use one single payment method and monitor your monthly billing statements. This will give you a list of all the expenses and you will be able to learn just what your company really needs to spend on a monthly basis and how to budget more wisely. You will be able to give your employees their own small business credit card for your company with a pre-set limit. This will ensure that they do not spend more than you have allotted for their department, but giving them a sense of trust for purchasing items that are needed.
On the downside, a small business credit card is still a credit card, and any overspending or unnecessary charges on your part or your employees can damage your credit rating. With a credit card, no matter what kind it may be there is a tendency to overspend unless you have a pre-set limit and pay off your balance on a monthly basis. If you carry a balance, then you will of course be paying interest on the balance. If you did not apply for a small business credit card with a low interest rate, you may find yourself going in debt more than you had planned.
If you do not make your payments on time, this will be reported to the credit bureaus. Usually this does not affect your personal credit rating but it can do some damage to your company's credit and then you may find that some companies may not wish to do business with your company.
No matter what you decide regarding a small business credit card, be sure that you find the proper credit card that suits your company with a pre-set limit for spending for your employees. If you are on an introductory offer be sure you know when it will change and what happens afterwards. If you have a 0% interest rate and it will change in 6 months, be sure you know what the new interest rate will be. This can save your company quite a bit of money and yourself many headaches.
Credit Card Applications - Getting Approved After Refusal
It can be disheartening when you apply for a credit card and get turned down. However, in the vast majority of cases, it really is not anything that you need to worry about. While there are some people out there who would be approved for virtually everything they could think of applying for, for the vast majority of us, applying for a credit card can take a little time and some trial and error.
Credit card providers generally have pretty strict criteria that they are looking for from applicants when they launch a new credit card. They will be targeting the card at a specific segment of the market and will have a credit score range that they are seeking from applicants. If you do not fall within this score range, you will not be in their target range and will be refused the card. But this does not mean that you will not be successful when you apply for another credit card that is targeting your section of the market. And it is important not to take the rejection to heart.
Determining Your Credit Score
You may feel that you are trustworthy and always pay your bills and that you should not be turned down for credit, but remember that credit approval is no longer a personal exercise but is by and large automated and subject to computer credit checks and the like. A computer will look at your credit score and give a yes or no answer, and no individual attention will be paid personally to your application at all. It is a necessary way of running the system for lenders who have literally thousands of clients and applications to manage as efficiently as possible.
The Next Step After Rejection
If you are refused for credit, then apply to a couple more companies. You should try not to rush the process and apply for one card at a time. You usually receive your answer within a couple of days. The reason for this is that if you apply for too much credit too quickly, it will show up on your credit report and may cause lenders to turn you down. So be patient and if possible, ask the lender why they have rejected you.
Patience is a Virtue in Credit Card Applications Too
The chances are you are simply applying for the wrong type of card, for example, if you are a student, you will really only be approved by companies that make a point of providing credit cards to students and most other will reject you as a matter of course. So by a little patience, and taking the time to make your application to a credit card company that targets the segment of the market that you fit into, you should be able to get your hands on a credit card before too long.
Credit card providers generally have pretty strict criteria that they are looking for from applicants when they launch a new credit card. They will be targeting the card at a specific segment of the market and will have a credit score range that they are seeking from applicants. If you do not fall within this score range, you will not be in their target range and will be refused the card. But this does not mean that you will not be successful when you apply for another credit card that is targeting your section of the market. And it is important not to take the rejection to heart.
Determining Your Credit Score
You may feel that you are trustworthy and always pay your bills and that you should not be turned down for credit, but remember that credit approval is no longer a personal exercise but is by and large automated and subject to computer credit checks and the like. A computer will look at your credit score and give a yes or no answer, and no individual attention will be paid personally to your application at all. It is a necessary way of running the system for lenders who have literally thousands of clients and applications to manage as efficiently as possible.
The Next Step After Rejection
If you are refused for credit, then apply to a couple more companies. You should try not to rush the process and apply for one card at a time. You usually receive your answer within a couple of days. The reason for this is that if you apply for too much credit too quickly, it will show up on your credit report and may cause lenders to turn you down. So be patient and if possible, ask the lender why they have rejected you.
Patience is a Virtue in Credit Card Applications Too
The chances are you are simply applying for the wrong type of card, for example, if you are a student, you will really only be approved by companies that make a point of providing credit cards to students and most other will reject you as a matter of course. So by a little patience, and taking the time to make your application to a credit card company that targets the segment of the market that you fit into, you should be able to get your hands on a credit card before too long.
Tuesday, May 7, 2013
Credit Card Customer Service Roundup
When determining which credit card company is right for you, it's important to consider everything the credit card company has to offer. Equally as important as a low APR or advanced security features is the credit card company's customer service.
Because most consumers overlook customer service until it's too late, we made calls to the top five credit card companies (American Express, Bank of America, Chase, Citibank, and Discover), then ranked them on how well they met the following customer service benchmarks:
Helpful Web sites. First we visited their sites to see how user-friendly they were, and whether toll-free phone numbers were easy to find.
Knowledge of agents. We asked three advanced credit card questions (security features, 0% APR availability, and debt consolidation features), then rated their responses.
Helpfulness of agents. Finally, we assessed our general sense of treatment as valued customers, which went into an overall rating of each company's customer service.
American Express
TIME TO 800 NUMBER: Less than two minutes.
HELPFULNESS OF AGENTS: When we got through, we talked to a helpful and professional representative. Even their automated voice system woman who greets you when you first pick up is very concise and polite, as far as robot ladies go.
KNOWLEDGE OF AGENTS: The customer service representative spoke confidently about their 0% APR cards for select customers, as well as low APR cards and offers. The only question the agent was not able to answer was about credit card debt consolidation features. However, Amex did provide direct and concise information for all other questions we asked.
OVERALL IMPRESSION: The service rep was clear and not pushy (albeit mechanical), and let us know that someone is available to help further at their toll-free number, 24/7.
Bank of America
TIME TO 800 NUMBER: Less than two minutes.
HELPFULNESS OF AGENTS: We called the main number and went through ten button-presses before being connected to a live human (though admittedly some of those keypresses were out of confusion). Some of the steps were obsolete and frustrating -- for example, selecting to respond by voice or by hitting a key. On one occasion, a poorly-timed sneeze caused us to have to go back in the menu. When finally connected to a "Bank On Call Specialist," it was clear that, though thorough, the gentleman on the other end was in as little mood to be friendly as we were by this point.
KNOWLEDGE OF AGENTS: When asking about the basic security features the card offered, the rep responded by mentioning the "Safe-card" feature that generates random numbers each time the card is used, instead of a traceable account number that "could potentially be stolen." We playfully replied, "That's got to be a good feature if you're up to no good." He did not find this funny. Even after saying "That was a joke," the Bank On Call Specialist didn't even give up a pity-snicker.
OVERALL IMPRESSION: Operating out of Los Angeles, the Bank of America 800-number is not 24/7 like some of the others, but does operate late and on weekends. (Please note, however, that this information was given by the service rep in person; meanwhile, the Bank of America Web site proudly boasts 24/7 customer service representatives on call. We didn't bother calling back 23 times to figure out which it really is.)
Citibank
TIME TO 800 NUMBER: Less than a minute; quick and easy.
HELPFULNESS OF AGENTS: With but one button-press after calling, you are speaking to a live operator. We spoke to a good-humored gentleman who, though having to transfer us to the "application department" to answer general questions, laughed genuinely at the response "Okay, super-duper" when he asked us to briefly hold. (Customer service reps who don't hate their jobs always reflect well on the company.) He transferred me to a female agent who was equally well-tempered, and the whole ordeal was genuine and friendly.
KNOWLEDGE OF AGENTS: They promptly filled me in on topics like rewards card bonuses and low APR credit cards. Citibank seems to handle issues like stolen credit cards with sensitivity and care, and they assured me that "Identity Theft Specialists" handle any potential issues one-on-one.
OVERALL IMPRESSION: Citibank agents seem particularly user-friendly in times of crises. Also, Citibank's customer service hotline is available 24 hours.
Chase
TIME TO 800 NUMBER: Less than two minutes; one click from homepage. A little overwhelming were the various numbers to call based on topic, but the list was explained and labeled.
HELPFULNESS OF AGENTS: After a few selection menus and a reasonable amount of holding time, we got through to a professional (if somewhat dry) customer service representative. Also, right on the Web site was the information that cardholders can receive 24 hour automated services by phone, or live representatives from 7:00 a.m.-9:00 p.m. daily.
KNOWLEDGE OF AGENTS: The agent answered questions about 0% APR and low APR cards generically, promising only that "select customers" are eligible.
OVERALL IMPRESSION: We left feeling that Chase dictates who is deemed "eligible" for certain offers the way the cool kids at high school decide who sits together at lunch. (Just a feeling.) The exchange is professional and void of hullabaloo, if not otherwise robotic and monotone.
Discover
TIME TO 800 NUMBER: It took but a moment to locate the phone number (listed in the style of Chase's Web site, only minus the visual chaos).
HELPFULNESS OF AGENTS: Once calling this 24/7 live-operator (and automatic-optional) service number, it was only seconds before being connected. The customer service representative was the sweetest and not-in-a-fake-way of all the credit card companies we tested.
KNOWLEDGE OF AGENTS: The agent answered all questions with specifics, and plenty of pertinent information (security issues, costs, eligibility for special offers, etc.). Additionally, many of the offers seemed to far surpass the competition: for example, 0% fraud liability on the spot, and more-than-fair graces towards simple customer errors or lapses.
OVERALL IMPRESSION: Both for the information and the manner in which it was delivered, the taste left in our mouth was all sweet and no-parts bitter.
Summary
We ranked the top five credit card companies on customer service (American Express, Bank of America, Chase, Citibank, and Discover), and here are our final results.
#5: Bank of America. Though offering the standard services, and having a widespread name and corporate recognition, the actual customer service perhaps suffers at the hand of being such a titanic operation. It's difficult to find information on the Web site (at least, information that agrees with their live operators), and the personal care touch is gone. Perhaps Bank of America outsourced their customer service operation. Outsourced it to Mars.
#4: Chase. Although adequate, Chase has every one of those small-annoyance features that are frustrating to customers: limited information about APR and the like until agreeing to apply; hold time with crummy music; a slightly confusing Web site; dull and/or mechanical service representative interaction; and limited hours of live person availability. are all attributes that prevent Chase from boasting wonderful customer services. Not really a pain-in-the-neck customer service system, Chase is just average. Not bad bad, but not great.
#3: American Express. American Express does the job. No bells and whistles, but a well-rounded customer service department, with enough features to leave us generally satisfied. The rep made a card recommendation for me after only a few questions, and after further talking it turned out to be a good analysis. American Express's customer service skills are much like the aesthetics of the card itself: not the most brilliant gold color, but definitely still gold.
#2: Citibank. Great customer service. It's nice to report that there was almost a tie for first place rather than a tie for last place, and in this case Citibank should be proud of that close call. Nice clear Web site directory, one-touch access to a live person, and interactions with human beings who made it clear they didn't hate working for Citibank at all. Agents told us about great featured bonuses for customers, but not in a way that made us feel pressured. Wonderful customer service upkeep, Citibank!
#1: Discover. Who knew it really pays to DiscoverTrademark? Aside from offering the easiest, most practical perks (regular 5% cash back on purchases made at restaurants, gas stations, etc., as well as comprehensive security and credit rating services), the interactions with the Discover folks make you feel valued and respected. Be it hospitality or above-and-beyond professionalism, the general response we had after interacting with Discover is that we want to move to where Discover is headquartered, then raise our families and send our kids to school there. Talking to a credit card company's customer service line rarely leaves you feeling so warm and fuzzy.
We hope our credit card customer service roundup is helpful, but as always your mileage may vary. The best way to find out is to call yourself. Good luck finding those 800-numbers, though!
Because most consumers overlook customer service until it's too late, we made calls to the top five credit card companies (American Express, Bank of America, Chase, Citibank, and Discover), then ranked them on how well they met the following customer service benchmarks:
Helpful Web sites. First we visited their sites to see how user-friendly they were, and whether toll-free phone numbers were easy to find.
Knowledge of agents. We asked three advanced credit card questions (security features, 0% APR availability, and debt consolidation features), then rated their responses.
Helpfulness of agents. Finally, we assessed our general sense of treatment as valued customers, which went into an overall rating of each company's customer service.
American Express
TIME TO 800 NUMBER: Less than two minutes.
HELPFULNESS OF AGENTS: When we got through, we talked to a helpful and professional representative. Even their automated voice system woman who greets you when you first pick up is very concise and polite, as far as robot ladies go.
KNOWLEDGE OF AGENTS: The customer service representative spoke confidently about their 0% APR cards for select customers, as well as low APR cards and offers. The only question the agent was not able to answer was about credit card debt consolidation features. However, Amex did provide direct and concise information for all other questions we asked.
OVERALL IMPRESSION: The service rep was clear and not pushy (albeit mechanical), and let us know that someone is available to help further at their toll-free number, 24/7.
Bank of America
TIME TO 800 NUMBER: Less than two minutes.
HELPFULNESS OF AGENTS: We called the main number and went through ten button-presses before being connected to a live human (though admittedly some of those keypresses were out of confusion). Some of the steps were obsolete and frustrating -- for example, selecting to respond by voice or by hitting a key. On one occasion, a poorly-timed sneeze caused us to have to go back in the menu. When finally connected to a "Bank On Call Specialist," it was clear that, though thorough, the gentleman on the other end was in as little mood to be friendly as we were by this point.
KNOWLEDGE OF AGENTS: When asking about the basic security features the card offered, the rep responded by mentioning the "Safe-card" feature that generates random numbers each time the card is used, instead of a traceable account number that "could potentially be stolen." We playfully replied, "That's got to be a good feature if you're up to no good." He did not find this funny. Even after saying "That was a joke," the Bank On Call Specialist didn't even give up a pity-snicker.
OVERALL IMPRESSION: Operating out of Los Angeles, the Bank of America 800-number is not 24/7 like some of the others, but does operate late and on weekends. (Please note, however, that this information was given by the service rep in person; meanwhile, the Bank of America Web site proudly boasts 24/7 customer service representatives on call. We didn't bother calling back 23 times to figure out which it really is.)
Citibank
TIME TO 800 NUMBER: Less than a minute; quick and easy.
HELPFULNESS OF AGENTS: With but one button-press after calling, you are speaking to a live operator. We spoke to a good-humored gentleman who, though having to transfer us to the "application department" to answer general questions, laughed genuinely at the response "Okay, super-duper" when he asked us to briefly hold. (Customer service reps who don't hate their jobs always reflect well on the company.) He transferred me to a female agent who was equally well-tempered, and the whole ordeal was genuine and friendly.
KNOWLEDGE OF AGENTS: They promptly filled me in on topics like rewards card bonuses and low APR credit cards. Citibank seems to handle issues like stolen credit cards with sensitivity and care, and they assured me that "Identity Theft Specialists" handle any potential issues one-on-one.
OVERALL IMPRESSION: Citibank agents seem particularly user-friendly in times of crises. Also, Citibank's customer service hotline is available 24 hours.
Chase
TIME TO 800 NUMBER: Less than two minutes; one click from homepage. A little overwhelming were the various numbers to call based on topic, but the list was explained and labeled.
HELPFULNESS OF AGENTS: After a few selection menus and a reasonable amount of holding time, we got through to a professional (if somewhat dry) customer service representative. Also, right on the Web site was the information that cardholders can receive 24 hour automated services by phone, or live representatives from 7:00 a.m.-9:00 p.m. daily.
KNOWLEDGE OF AGENTS: The agent answered questions about 0% APR and low APR cards generically, promising only that "select customers" are eligible.
OVERALL IMPRESSION: We left feeling that Chase dictates who is deemed "eligible" for certain offers the way the cool kids at high school decide who sits together at lunch. (Just a feeling.) The exchange is professional and void of hullabaloo, if not otherwise robotic and monotone.
Discover
TIME TO 800 NUMBER: It took but a moment to locate the phone number (listed in the style of Chase's Web site, only minus the visual chaos).
HELPFULNESS OF AGENTS: Once calling this 24/7 live-operator (and automatic-optional) service number, it was only seconds before being connected. The customer service representative was the sweetest and not-in-a-fake-way of all the credit card companies we tested.
KNOWLEDGE OF AGENTS: The agent answered all questions with specifics, and plenty of pertinent information (security issues, costs, eligibility for special offers, etc.). Additionally, many of the offers seemed to far surpass the competition: for example, 0% fraud liability on the spot, and more-than-fair graces towards simple customer errors or lapses.
OVERALL IMPRESSION: Both for the information and the manner in which it was delivered, the taste left in our mouth was all sweet and no-parts bitter.
Summary
We ranked the top five credit card companies on customer service (American Express, Bank of America, Chase, Citibank, and Discover), and here are our final results.
#5: Bank of America. Though offering the standard services, and having a widespread name and corporate recognition, the actual customer service perhaps suffers at the hand of being such a titanic operation. It's difficult to find information on the Web site (at least, information that agrees with their live operators), and the personal care touch is gone. Perhaps Bank of America outsourced their customer service operation. Outsourced it to Mars.
#4: Chase. Although adequate, Chase has every one of those small-annoyance features that are frustrating to customers: limited information about APR and the like until agreeing to apply; hold time with crummy music; a slightly confusing Web site; dull and/or mechanical service representative interaction; and limited hours of live person availability. are all attributes that prevent Chase from boasting wonderful customer services. Not really a pain-in-the-neck customer service system, Chase is just average. Not bad bad, but not great.
#3: American Express. American Express does the job. No bells and whistles, but a well-rounded customer service department, with enough features to leave us generally satisfied. The rep made a card recommendation for me after only a few questions, and after further talking it turned out to be a good analysis. American Express's customer service skills are much like the aesthetics of the card itself: not the most brilliant gold color, but definitely still gold.
#2: Citibank. Great customer service. It's nice to report that there was almost a tie for first place rather than a tie for last place, and in this case Citibank should be proud of that close call. Nice clear Web site directory, one-touch access to a live person, and interactions with human beings who made it clear they didn't hate working for Citibank at all. Agents told us about great featured bonuses for customers, but not in a way that made us feel pressured. Wonderful customer service upkeep, Citibank!
#1: Discover. Who knew it really pays to DiscoverTrademark? Aside from offering the easiest, most practical perks (regular 5% cash back on purchases made at restaurants, gas stations, etc., as well as comprehensive security and credit rating services), the interactions with the Discover folks make you feel valued and respected. Be it hospitality or above-and-beyond professionalism, the general response we had after interacting with Discover is that we want to move to where Discover is headquartered, then raise our families and send our kids to school there. Talking to a credit card company's customer service line rarely leaves you feeling so warm and fuzzy.
We hope our credit card customer service roundup is helpful, but as always your mileage may vary. The best way to find out is to call yourself. Good luck finding those 800-numbers, though!
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