Has anyone ever heard of the “Revolution Card”?

Believe or not someone is introducing a new credit card in the midst of this turbulent economy. Revolution Money is working on becoming one of the next leading credit card providers. The Revolution Card is a little bit different than other credit cards. First of all, the card does not have the person’s name of any other information written on it. In addition, this card can not be used without a PIN code. In other words, those who don’t know the code will not be able to use it anywhere. This limits the amount of fraud that the company would otherwise have to be responsible for. Revolution Card is accepted at more than 650,000 locations and almost 85% of all ATMs in the United States. Some of the major retailers that accept the Revolution Card include ABC Liquors, A.J. Wright, AutoZone, Barnes & Noble, Bed Bath and Beyond and many more.

Revolution Money was founded in 2007 and is funded by some major players like Morgan Stanley, Deutsche Bank and even Citi Group. I like the extra security features that this credit card has to offer. The mandatory PIN code is a great way to keep unwanted users from charging up a storm on your credit card. However, if you are ever hot on the head and get a case of amnesia you won’t be able to use your card anywhere. The other major problem is if something were to happen to the magnetic stripe on your card. You would not be able to use the card anywhere if you do not have the account number. A credit card can be easily punched in manually if the information is written on the front of the card. However, that does not help you when you really need the card when the account number is written down and inside a drawer at home. All in all, I like the features that this card offers. The only problem is that the Revolution Card is not accepted in as many places worldwide as Visa, Mastercard, American Express and Discovery.

Labels: American Express Credit Card, credit card, Discover credit card, Revolution Card, Revolution Money, Visa Credit Card

Discover More Card

Sears Roebuck first introduced the Discover credit card when it was one of the largest retailers in the United States. The Discover Card rivaled its competitors by offering incentives such as no annual fee and a higher credit limit than its competitors like Visa and Mastercard. In 1993 Discover merged with Dean Witter which eventually merged with Morgan Stanley in 1997. Since then Discover has introduced a wide variety of products. One of its most popular credit cards is the Discover More Card.

The Discover More Credit Card comes with a 0% introductory annual percentage rate. This introductory rate is for 6 months on all purchases and 12 months on balance transfers. In addition, the Discover More Credit Card offers an excellent rewards program. Cardholders can benefit from 5% cash back bonus for purchases in categories such as travel, home, gas, movies, restaurants, and more. Discover also offers online account access and bill payment.

The Discover More Credit Card is an excellent choice for anyone looking for a good rewards credit card. However, like other credit card issuers, Discover will charge an assortment of fees if you are late or over your limit. Balances of less than $250 will pay a $19 fee while balances that exceed $250 will pay a $39 fee. The over the limit fee for balances under $500 is $15. Balances of over $500 also pay the higher fee of $39. Cash advance fees are 3% of your withdrawal or a $5 minimum. Qualified applicants will pay anywhere from 10.99% all the way to 18.99%, depending upon credit.

Labels: credit card, Discover credit card, Discover More Card

Escapre Card by Discover

Discover has recently launched a new credit card called the Escape by DiscoverEscape by Discover
You can also redeem your points for gifts should you not want to use your points for travel. Discover allows you to buy gift cards from over 90 of its established rewards partners. These partners include but are not limited to companies such as Borders Books, Amazon.com, AMC Theaters, Brooks Brothers, L.L. Bean, Eddie Bauer, Outback Steakhouse, Red Lobster and scores of other major retailers and popular restaurant chains. You can also use your miles to pay towards your monthly statement. The exchange rate is figured at $25 for every 5000 miles. I would definitely use the reward miles for restaurants or travel. You can figure that for every mile you earn one half of one cent or .005 would go towards your balance.

You can also use transfer your balance from another credit card and pay 0% interest for up to 1 year. 0% interest also applies to purchases 6 months. This is a great way to make large purchases such as televisions, jewelry or to pay for an emergency car repair. Instead of paying regular interest rates you wont have to pay anything. A $600 brand new television could be easily paid off at $100 per month for 6 months.

The only real drawback to the Escape by Discover
It is good to see credit card issuers coming out with new products. Our economy is in shambles and any new available credit source is welcomed. The 25,000 sign up bonus points and the excellent rewards program make this card very tempting. All in all, the this new offer by Discover is an excellent credit card offer that I would definitely recommend to anyone

Labels: credit card issuers, credit cards, Discover credit card, Escape Card by Discover

Discover Financial Services Applies to become Bank Holding Company


The fourth largest U.S. credit card company, Discover Financial Services posted fourth-quarter profits due to a $535 million after tax litigation settlement from Visa and Mastercard. In addition, Discover is applying to become a bank holding company in order to access TARP (Troubled Asset Relief Program) funds.

Credit card companies are taking heavy losses due to current economic conditions. Unemployment is at an all time 15 year high. The rise in unemployment has caused many people to become past due on their credit card bills. In hard times, people tend to give more priority to utility bills and groceries than credit cards.

Despite the profits created from a lawsuit windfall, Discover is faced with heavy losses from bad debt right offs. In 2007 bad debt right offs were at 3.85% and have risen to 5.48% in 2008. In addition, Discover is also experiencing a significant rise in 30-day delinquencies. In 2007 30-day delinquencies were at 3.58% and have gone up to 4.56%.

Discover stock has also taken a beating like most of the financial sector. The 52 week high this year for Discover Financial Services was $19.87. Today DFS stock is trading right under $10. That is a 50% loss in stock value for this year.

Discover was originally the brain child of what was once Sears Financial Networks. During the 1987 stock market crash, Sears Financial Networks was forced to sell off its divisions, including its Discover Card division.

Labels: credit card, credit cards, Discover credit card, Discover Financial Services