Circuit City Credit Cards are now good at Best Buy

Unlike other companies, Best Buy has been able to withstand the recession and actually profit. The bankruptcy of the Circuit City has forced thousands of shoppers to buy their electronics at their local Best Buy store. Furthermore, it was recently announced that Circuit City credit card holders were sent a Best Buy credit card to replace the Circuit City credit cards. The other option that cardholders have is to close the account. However, closing credit accounts will negatively impact your credit. It was also found out that most Circuit City cardholders were unaware that their credit accounts were still open. This leaves credit cardholders vulnerable to identify theft as well.

The best option for Circuit City credit card holders is to take the Best Buy replacement card and continue to use it as you did in the past at Circuit City. Best Buy is also going to honor the previous terms and conditions that you were given by Circuit City. This makes the transition very easy. The bottom line is that Best Buy is not going to change your terms (interest rates, due dates, etc) from what you are already accustomed too.


I am in no way being paid by Best Buy, but quite frankly, they are a superior store. Best Buy has a very good selection of CDs, DVDs, high definition televisions, computers, and almost anything electronic that you can think of. The prices are also very good as well. I have made many purchases in the past at best buy and will continue to do so in the future.

Labels: Best Buy, Circuit City, credit cards

Why the Government Should Invest in Credit Card Bonds


The credit card industry has taken a significant toll since the onset of the credit crisis. Direct mail credit card marketing has seen a significant drop in the amount of mail being sent. Credit card issuers have pulled cards away from the affiliate marketing channel as well. The problem is that card issuers are having a hard time securitizing credit card debt. By that I mean, that credit card issuers are having less success bundling credit card debt and selling it off as an investment in Wall Street in the form of credit card bonds. The sale of credit card bonds is down 50%, thus so are approvals. The credit card industry needs to be able to be able to sell their receivables in order to generate new customers. As part of the economic stimulus package I think the Obama Administration should start buying up credit card bonds. This way consumer credit is unfrozen and people can go out and spend once again. Credit Card liquidity is needed in the economy in order to keep people shopping. The Obama administration needs to invest in credit card bonds and thus increase the spending power of the American consumer. Consumer spending via credit cards creates jobs in every sector of the economy from retail to logistics.

Retail spending has seen a significant drop off because of the credit crisis. More Americans these days putting their money back in the cookie jar. Even though some people have money they are not spending it. Job uncertainty is at an all time high these days. No one wants to spend money if they fear that job loss is possible. However, part of the reason for all these job losses is that no one is spending money. It is almost like a viscous cycle as well. Spending decreases as people continue to hoard money. Jobs suffer and continued losses occur because people are not spending. The reality is that economic growth happens because of consumer spending; not saving. The credit card industry has made it possible for consumers to spend money. The retail and service industry without credit cards is like the housing market without mortgages.

The Obama administration needs to stabilize the credit card industry as well. Card issuers have seen significant losses due to the credit crisis. The collapse of the mortgage industry has caused significant job loss in the United States. Those who are now unemployed are having a harder time making their credit card payments. In response, the credit card industry has had to reduce spending limits and increase interest rates in order to make up for the losses. This reduction in consumer credit has adversely affected spending. As I stated previously also, the reduction of spending has destroyed the job market as well. The government should invest in credit card bonds and as a condition require that card issuers lend more money to consumers. In order to save the economy we need to re establish consumer confidence and resume lending.

Credit cards have empowered consumer spending for many years. This spending has been the number one factor causing economic expansion. People with credit are able to go to restaurants and stores to spend money. Malls and shopping centers are built in order to facilitate the consumers every desire. Stores are forced to shut down when spending decreases. Circuit City has become the most recent victim to fall because of the credit crisis. 30,000 more jobs have been lost. Circuit City blames its failure on reduced consumer spending and its lack of ability to secure loans. The Obama administration needs to address this problem very soon. Once credit begins to flow again spending will increase, jobs will be created, and our economy will be back on track.

Labels: Circuit City, credit card, credit card bonds, credit card issuers, credit cards