If subprime credit card issuers have their way, the bad credit cards of the past may end up looking like alter boys compared to the thugs of the NEW bad credit cards.

According to the Associated Press, subprime credit card issuer First Premier bank in a recent mailing floated a test offer for a preapproved credit card for people with bad credit. Unlike most so-called fee-harvester subprime credit cards, the card came with a low annual fee of $75 and-oh, yes, by the way-a 79.9 percent APR.

The record credit card APR comes in reaction to a new provision of the Credit CARD Act, which Congress passed in May. In an attempt to rein in abusive credit card practices, the new credit card law caps the fees that subprime credit cards will be able to charge.

Credit cards for people with bad credit have earned the name fee-harvester cards, because of the high upfront fees charged to new cardholders.

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In the past, for many people when it came to prepaid cards it was for using sparingly or during times that they didn’t want to use their credit cards to make purchases (ie: online). Now that the times have changed, prepaid cards are finding themselves in the pocketbooks of millions of Americans. For that reason, it now looks like everyone can look forward to seeing more major credit card issuers enter into the reloadable prepaid cards space. One of the most recent issuers to do so was Capital One in hopes to benefit from the millions of consumers navigating away from credit cards to get a better handle on debt.

When looking at prepaid cards there are many options that are available and each is geared to a different audience. S

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Sound familiar? I was recently asked this question by one of my clients and figured the question warranted discussion.

The average American has anywhere from 5-10 credit cards, though with the recent financial crisis, that number has probably gone down. Do American’s need that many? Maybe, maybe not. I think the number of cards themselves is less important than the amount of debt you can comfortably pay off each month.

As we’ve discussed before, your credit score is determined by several factors, one of which is the debt-to-credit-limit ratio on all of your cards. Ideally, you want to keep what you owe on each card between 25-45% of what your actual credit limit is.

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Rewards credit cards come in several varieties, in addition to cash back. They are generally offered only to individuals whose credit is rated “excellent” or “very good.”

Some have no annual fee, while others, with more generous rewards, carry an annual fee of up to $450.

The rewards card you choose should reflect your lifestyle and the way you use your credit card.

Two of the most popular are “miles” and “points.”

Miles, of course, refers to airline miles. Some cards are specific to one airline and some are universal. Some give miles for all purchases, and some only for travel-related purchases. Read full article…

The popularity of prepaid cards has significantly increased in the past years. Demands for these alternative plastics have exploded and it is predicted to have at least $7.2 billion in transactions every year. Some employers have in fact chosen to issue prepaid cards instead of a paycheck. These cards are actually re-loadable spending cards. Although cards carry the Visa and MasterCard logo, they should not be mistaken for a debit/credit card or even gift cards. People use is to pay without having to open a bank account or applying for a credit line. You just have to add money to its balance and it works the same way as debit or credit cards. If you cannot open a bank account for some reason or you cannot trust yourself in handling a credit card, they say this is the next big thing.

Others have pointed out the other ways and reasons prepaid cards are a popular choice these days.

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