Over the course of the past few weeks, several changes have occurred to many of the credit cards on our website along with the complete removal of others. The proverbial belt of available credit appears to be tightening even more as interest rates are raised, credit lines are trimmed and cards are eliminated all together. And all of this is happening just as we enter into the holiday season, the time of year where retailers offer great deals on merchandise and the demand for credit increases dramatically.

Despite all the changes and the reasons for those changes, there are still some really good credit cards available and even some issuers have improved their offers for holiday shoppers this season. If you’ve been thinking about applying for a credit card this holiday season, now is the time to do so. Several very competitive and industry stalwarts are still available that earn rewards, allow you to make purchases or balance transfers for an introductory 0% APR and help establish or rebuild credit.

The term “Black Friday” can be traced back to the 1960’s in Philadelphia (WikiPedia 2008) and did not carry the same connotation it carries now. Nowadays, “Black Friday” is still synonymous with long lines and traffics jams, but more importantly the amazing deals retailers offer us on electronics, clothing and other holiday merchandise. If you’re one of the few employees who still gets a Christmas or year-end bonus, taking advantage of the “Black Friday” deals may not always be practical with the timing of a bonus. However, taking advantage of an introductory 0% APR on purchases would allow you to enjoy the special pricing on the day after Thanksgiving for many of your gifts, pay no interest and pay off the balance with your bonus. You can also enjoy additional savings when using a reward credit card.

If your looking past the holidays in anticipation to the start of a new year and are looking to make a few New Years goals, like getting out of debt, then check out balance transfer offers. Bank of America has extended some of their balance transfer offers to 15 months for 0% APR and a low 3% transfer fee. For those with a balance still on their department store credit cards accruing 20 plus percent interest, check out card offers that offer lower rates on balance transfers for those with excellent, above average and good credit.

No matter what type of credit you have, there are still many offers to choose from. Making sure you act fast to save additional money on holiday purchases, saving money on existing balances or to rebuild your credit, there is a credit card offer available for every need. Remember this holiday season to read the full terms and conditions of each card and never over-extend yourself from your ability to repay your balance in full within a reasonable time if necessary.

People generally have different misconceptions about credit cards. It is important for you to make good credit card decisions. Make sure you don’t make these costly credit card mistakes.

1. Minimum Payments. Paying only the minimum payment can be extremely costly. You will end up paying a lot of interest if you don’t pay off your credit card each month. You will also become enslaved to your credit card balance, never being able to get out from under it.

2. Cash Advances. Credit card companies make you think that cash advances allow to get free money. When they don’t advertise is how much interest you’ll be paying each time you take a cash advance. Most times, you’ll be paying over 25% for each advance.

3. Budget with Your Card. Don’t make the mistake of thinking that you can buy whatever you want now and pay for it later. This is an easy way to get way over your head in debt. Stick to your monthly budget. If you use your credit card, especially to earn rewards, make sure you have the money in your checking account to back it up.

4. Late Payments. Never make a credit card payment late. You will be charged a late fee and end up paying a lot more for that tank of gas than you intended. Always pay off the entire balance on your credit card a few days earlier. This will get you in the habit of making good credit card decisions.

5. Understand. Make sure you read the fine print and understand exactly what you are getting into. Know what introductory rate you’ll be paying, what the rate will be after the introductory period, what the late fee is, what your due date is, etc. When you apply for the credit card, you are entering into a contract with the credit card company. Make sure you know what the contract means.

6. Too Many Cards. Don’t get too many cards. Lenders do not look favorably on a ton of open revolving accounts. If you need one or two credit cards, get them. But, be careful you don’t have so many cards that you can’t keep up with each one.

7. Monthly Statement. Your monthly statement is your opportunity to review your credit card balance with a fine toothed comb. Review each statement carefully and make sure every charge is correct. This is also your opportunity to watch for identity theft. Your monthly statement is given to you for a reason. Read it carefully.

Be sure you are making good credit card decisions. In order to have good credit now and down the road, you need to be smart with your credit card. Don’t make any of these costly mistakes, and you’ll be on your way to great credit in no time.

People everywhere are experiencing the “credit crunch.” Some people have been feeling the effects of the credit crunch for several months while others are just beginning to feel it. Credit card companies have begun to take drastic measures in determining someones credit worthiness.

Have you ever heard the adage “guilt by association?” American Express customers have now been linked into that category. American Express is now limiting cardholders’ freedom according to where they live, shop, etc.

Customers are completely outraged. American Express customers around the country have recently noticed lower limits and tighter restrictions. Some customers are now having to consider closing their businesses. Without the freedom to purchase products for their business, many people might have to close their doors.

American Express has sent letters to people with AmEx cards notifying them of the changes. These letters include several reasons why the changes have been implemented. Among these reasons are, “Our credit experience with customers who have made purchases at establishments where you have recently used your card.” Another reason has been, “Our analysis of the credit risk associated with customers who have residential loans from the creditor indicated in your credit report.”

This is the first time that such limits have been implemented, although rumors of such limitations have been around for quite some time. American Express is completely defending their position on the issue. AmEx has decided to monitor credit risks. This includes monitoring credit profiles, income, credit reports from all three credit bureaus, payment history, etc. However, the major credit card company is also considering factors that have recently arisen from the struggling economy.

It does seem surprising that a major credit card company is taking such drastic measures to monitor credit risks. The lack of credit risk monitoring is a major contributor to the current crisis facing our economy. However, restricting someones account because they shop at a particular store or have a loan with a particular lender seems a bit unethical.

A troubling economy has led to drastic measures being taken by everyone. What will this lead to next? This is certainly a major issue for a country that lives primarily on credit. Our country is being forced to learn how to live without credit, or at least as much credit.

It may seem counter-intuitive to what you may think is an economic textbook answer. With practically inevitable hard economic times ahead, most people’s natural reaction is to begin curbing their spending and to start hoarding cash. However, this behavior of spending less and saving more has a very negative impact and becomes nothing more than a self-fulfilling prophecy of economic hard times. The herd mentality puts jobs, even yours, and more at risk.

Being prudent with your money during hard economic times is important, but spending less will have an exponential effect on businesses, jobs and more. Businesses rely on revenue through sales to pay their employees, meet financial obligations to creditors and invest in new projects that make them more money. Declining revenue will force businesses to layoff employees and not invest in future projects. Those layoffs compound the problem even further because more of the population now has less money to spend. This vicious cycle starts all over again; jeopardizing millions of jobs.

But what if you really don’t want to spend your money? Wouldn’t a savings account be the best alternative? Not necessarily. Credit is frozen or has retracted severely from even several months ago. Banks use your checking and savings deposits to loan out to other customers or even banks. Tightened lending standards means lending may only occur to the best bank customers. This shrinking pool of people who can actually borrow, but at higher rates, may deter them from borrowing altogether. Fewer people borrowing means banks end up with a surplus of cash that they can do virtually nothing with. Banks can’t lend your money to earn interest and when you combine that with more and more people adding money to savings accounts, it lowers the rate of return for everyone.

What should you do then? Continue to spend your money.  If you don’t want to save, then invest in dividend-paying stocks (which are very cheap these days) and low-yield bonds.  This will put money in the pockets of entrepreneurs and businesses who will turn around and use the money to create jobs and start new projects thereby jump-starting the stumbling economy. If you’re really a doomsdayer, purchase goods with intrinsic value like: food, fuel and clothing. At least you can use this stuff if the economy collapses and it will always give you something to barter with while people are burning their dollar bills to stay warm. Whatever you do, keep the economic blood pumping by spending money.

Credit cards can be a good thing if you know how to use one. These are ways that credit cards can make your life better:

1. Accumulate reward points for free merchandise. Get a reward credit card and get free stuff. Each time you use your credit card, you’ll accumulate points that can be redeemed for discounts on gas, movie tickets, restaurant gift cards, and more.
2. Buy now, pay later. Credit cards give you the option to make a purchase now and pay for it later. This is a great benefit, especially for emergencies or help with cash flow.
3. Accepted virtually everywhere. Credit cards are generally accepted everywhere. This is great when you are running low on cash.
4. Easy to carry. A credit card takes up less room than a wad of cash does.
5. Online shopping. Pretty much the only way to buy things online is by using a credit card. Your credit card comes in handy if you do a lot of online shopping.
6. Build credit. Using your credit card wisely is one of the best ways to build your credit. This will show lenders how responsible you are and make them more willing to loan you money.
7. Teach responsibility. Credit cards can teach you responsibility because you have to account for each purchase you make in order to stay out of debt.
8. Teach money management. Credit cards are a great way to teach you how to handle your money. You have to carefully budget your money and your purchases.
9. Variety of payment options. Many times, you can chose different payment options. You have the flexibility to chose your due date and payment amount.
10. Online monthly statements. Most credit card companies offer an online program where you can view your credit card activity. This helps manage credit card purchases tremendously.
11. Not having to carry cash. Isn’t it a pain and a hassle to carry cash all of the time? Credit cards make it so easy to swipe and sign.
12. Good Customer service (most of the time). You can’t call a customer service department if you have a question about the cash you carry. You can, however, call in regards to your credit cards and credit account.
13. Earn cash back. You can earn cash back through a percentage of your purchases. This is a great way to combat rising inflation too.
14. Give you a buffer until payday. Credit cards help get you through until payday, especially when unexpected circumstances arise.
15. Tool for tracking your expenses. It is so easy to track expenses and purchases now with different tools that the credit card companies offer. Most companies have an online tracking system. Many also offer a year-end statement that categorizes all of your purchases from the entire year.

These are just a few of the ways that credit cards can make your life better. Credit cards can be an unmatched tool that can assist you on your quest for financial freedom.