Consumers with good credit scores are being wooed more now than they have in a few years because creditors are finally loosening their grips on credit and are, once again, offering credit. Because of this, you probably are receiving a plethora of new credit card offers — most of which are offering very attractive rates and promotions.

If you want to take advantage of one of the new credit card offers, here’s what to do:

• Examine your current credit card interest rates, terms and conditions so you have something to compare when you begin looking at new credit card offers. If you have a particular credit card you really enjoy using, you may want to contact the credit card company and negotiate a lower rate or different terms. It is important to keep in mind that it is always best to negotiate better terms with your current credit cards than to open up new accounts.
• If you get nowhere with your current credit card companies, or if the new credit card offers are just too good to pass up, consider paying off any balances on your current credit cards first. It is always best to avoid carrying balances on multiple credit cards because it could put you in a precarious situation if you forget to pay on one of your bills or if you become more spend-happy because you have access to so much credit.
• Amass all of your current credit card offers and compare them, side by side. It is important to not only look at the card’s interest rate, but other factors, as well, such as promotional rates if you are transferring a balance, and the card’s general terms and conditions.
• If you are looking into a rewards credit card, carefully review the fine print, as there is often much more to rewards credit cards than meets the eye.

Just a few of the trends predicted for the credit card industry for the upcoming year include: tighter credit card regulations, plenty of new credit card offers, and loads of rewards programs and balance transfer offers.

It’s all about the Prime Credit Card Customers

If your mailbox is stuffed with credit card offers as of late, you know you must have good credit. Those consumers with excellent credit scores are being tracked down by credit card companies. Although the credit card industry is still in its recovery stage, it has begun loosening the reins on credit card offers. However, don’t expect to receive credit card offers unless you have the credit score to back it up. In short, creditors and banks are vying for the business of prime credit card consumers, and they are pulling out all the stops in terms of rewards to get their business.

Rewards Programs Soar

Which brings us to rewards programs…If you have great credit, expect many of the credit cards you receive to come with attractive rewards programs. The bottom line is that credit card regulations and interest rates remain fairly high, so it is up to the credit card companies to lure consumers in with another catch; and that is rewards programs. Because there are so many credit card rewards programs floating around out there, take the time to find a rewards program that best fits your lifestyle. You’re sure to find one!

Balance Transfer Offers on the Rise

In addition to attractive rewards programs, most creditors want the best consumers to transfer their balances to their cards, so along come attractive balance transfer offers. Although you may still get a low, promotional interest rate on a balance transfer offer, expect the promotional period to be much shorter than you’re accustomed. In particular, you can expect promotional periods of about three to six months instead of the usual 12 months. It pays to note, however, that great balance transfer offers do still exist, so take the time and find one that best fits your needs and your budget. Again, if you have the good credit score to back it up, it is now quite easy to find competitive credit card offers!

An Uptick in Credit Card Offers

If you have a strong credit score, it is almost certain that you have seen things pick up regarding credit card offers, especially over the last, few months. However, don’t think that just anyone is receiving credit card offers. In fact, only those prime customers are getting all the attention from creditors.

One of the main reasons creditors are no longer happy to go after subprime customers is that the new credit card regulations enforced by Congress over the last year have greatly limited how much creditors can profit from subprime customers.

Fees Limited, Costs Become more Transparent

For examples, most late fees are now limited to $25, and creditors can’t raise interest rates without warning. In addition, creditors must be much more transparent about the cost of finances charges and carrying a balance, which therefore encourages many consumers to pay back their debt in a more reasonable amount of time.

Although the credit card legislation has helped consumers, credit card customers with less-than-stellar credit are being left out of credit card mailings. Instead, it is the prime customers who are getting loads of credit card offers, and some of them are quite attractive. Expect to see competitive interest rates, low balance transfer rates and plenty of rewards offers.

Prime Customers Reign Supreme

Because prime customers – and wealthy customers – remain very profitable and pose little risk to creditors, they are being courted with loads of new credit card offers. In short, creditors are cutting their closes and are instead concentrating on those customers who mean big business for the credit card industry.

If you are lucky enough to fall into this category, take the time to review your options regarding a new credit card, as many creditors are offering very attractive terms, conditions and rewards.

Most consumers, over the past couple years have become quite accustomed to only receiving credit card offers when their credit is stellar. However, the tide is beginning to turn when it comes to credit and to whom the creditors will extend credit.

Recent statistics indicate that credit card companies, on average, are now sending out twice as many credit card offers since last year. What makes this surge in credit card offers so significant, however, is that consumers with even poor credit card now being included in the creditors’ mailing lists.

Bad Credit Doesn’t Have to Mean no Credit

Creditors, unlike a few years ago, however, are actually putting a bit more thought into those individuals with bad credit. In other words, some types of bad credit card better than others.

Take for instance, the concept of “strategic defaulters.” Creditors deem these types of consumers better than those who are credit “abusers” or “sloppy payers.” Didn’t think creditors separated some bad credit from others, did you?

Strategic Defaulters as a Result of the Recession

Strategic defaulters, as described in a recent article in the NY Times, are individuals whose credit scores took a free fall because they walked away from a home because the mortgage was larger than the home’s value. Creditors look at these consumers as good bets because they may have paid all their bills on time up to this point. And they are also likely consumers who make a good living. Remember: income still matters in terms of risks for the lender.

Strategic defaulters are different from sloppy payers or abusers, who often neglect to pay bills or only pay some bills on time. Another category considered by creditors is the “distressed borrower,” an individual who does not have the means to pay his or her bills on time.

Yet another category considered by creditors is the “first-time defaulter,” a consumer who always paid bills on time before the recession took hold. Many creditors deem these types of consumers worthy of a second chance.

So, the next time you get a credit card offer, consider it an opportunity to make a second chance and begin redeeming your credit score.

Does your poor credit score disqualify you from credit card offers? Maybe not.

Most consumers, over the past couple years have become quite accustomed to only receiving credit card offers when their credit is stellar. However, the tide is beginning to turn when it comes to credit and to whom the creditors will extend credit.

Recent statistics indicate that credit card companies, on average, are now sending out twice as many credit card offers since last year. What makes this surge in credit card offers so significant, however, is that consumers with even poor credit card now being included in the creditors’ mailing lists.

Bad Credit Doesn’t Have to Mean no Credit

Creditors, unlike a few years ago, however, are actually putting a bit more thought into those individuals with bad credit. In other words, some types of bad credit card better than others.

Take for instance, the concept of “strategic defaulters.” Creditors deem these types of consumers better than those who are credit “abusers” or “sloppy payers.” Didn’t think creditors separated some bad credit from others, did you?

Strategic Defaulters as a Result of the Recession

Strategic defaulters, as described in a recent article in the NY Times, are individuals whose credit scores took a free fall because they walked away from a home because the mortgage was larger than the home’s value. Creditors look at these consumers as good bets because they may have paid all their bills on time up to this point. And they are also likely consumers who make a good living. Remember: income still matters in terms of risks for the lender.

Strategic defaulters are different from sloppy payers or abusers, who often neglect to pay bills or only pay some bills on time. Another category considered by creditors is the “distressed borrower,” an individual who does not have the means to pay his or her bills on time.

Yet another category considered by creditors is the “first-time defaulter,” a consumer who always paid bills on time before the recession took hold. Many creditors deem these types of consumers worthy of a second chance.

So, the next time you get a credit card offer, consider it an opportunity to make a second chance and begin redeeming your credit score.

If you have a nice pile of credit card offers sitting in front of you, and you are ready for a new credit card (hopefully with attractive features and a low interest rate), then you can begin to compare credit card offers using three, simple factors:

• Interest Rate – So this sounds quite straightforward, right? You find the credit card with the best interest rate and go from there. However, consider that the current interest rate is just one piece of the credit card puzzle, as many credit cards offer attractive introductory rates that are not so attractive once the introductory period has ended. Therefore, before grabbing the first credit card offer with a zero percent interest rate, consider the length of the promotional rate and the interest rate once the promotional period has ended.
• Annual Fee – An annual fee is a touchy subject for many financial analysts; this is because some experts will tell consumers that they simply shouldn’t pay an annual fee, while others feel that an annual fee is well worth it if the card comes with very attractive rates and features. If a credit card offer comes with an annual fee, but also comes with its share of features, such as rewards and cash back, an annual fee may very well worth the expense. For the majority of consumers, however, it is really quite unnecessary to pay for an annual fee.
• Rewards – And now we come to the all-mighty rewards programs offered by many credit card companies. In a nutshell, rewards can definitely be, well, rewarding, if you follow a certain set of rules. In particular, forget about the advantages of any rewards program if you don’t pay your balance in full every month. Simply put, any rewards that you may earn through the credit card will likely be negated because of the finance charges paid to the creditor each month.

Credit card companies put enticing offers out there and don’t give you all the facts up front. That’s the way it goes with advertising. If you fail to read the fine print, you are ultimately responsible for the outcome.  The credit card company is not going to take any blame for you’re lack of knowledge about something just because they failed to tell you. Truth be told, it’s not their responsibility to tell you every little thing upfront. A smart and savvy consumer will read everything and be in the know before they ever use that little plastic card. Here’s a few things to watch out for that could make a difference in saving money or breaking the bank to pay off your card.

0% APR

0%? Not even close. This might apply to balance transfers only. You might get a card that allows 0% APR on both balance transfers and purchases. Either way, it is an introductory rate. There will be hidden fees for using the card for other things, like cash advances, and you payments will only be applied to our lower interest balances until they are paid off, leaving you with more debt to pay. To top it off, that 0% APR is literally only an introductory rate. After the first few months to one full year, you’re going to get slapped with a bill that might reflect interest rates of a caliber you were not expecting. Read and get to know the terms on such a card. Use it wisely to avoid a lot of debt. To avoid this eventuality altogether, look for a card offering a low fixed-rate APR. These do not change over time and will only change with your renegotiation or failure to pay.

The Universal Default

Thought your rate was secure with your card once you got it? Thought your subsequent debt with other creditors would make no difference? Think again. If you wind up with ad debt with another creditor and if affects your overall credit rating, paying your credit card ill in full and on time  might not make a whole lot of difference. You should still pay the bill, of course, but when the credit card company catches wind of any issues on your credit report (and they will!), this is their excuse to raise your rates. Even being a good customer to them does not change their view that you might now be a high-risk customer.

Paying the Minimum Balance

While this can be a life-saver in your time of need, don’t make it a habit. Some companies offer a minimum payment of as little as $10 per month. if you only pay this amount every month, you are not going to make much of a dent in your debt. On top of general card use, you’re going to have fees and interest that accrues every single month. Not only will it take you a very long time to pay off the debt, you will wind up paying a whole lot more in the long run. The minimum balance payment is great in a pinch, but it can also lead to more trouble than it is worth.

Rates and Terms

Don’t ever make the mistake of thinking that your rates and terms are set in stone and are thus unchangeable. Nothing could be further from the truth! Card companies can change their policy at their own whim and discretion, giving you little notice to prepare for said changes. However, you might be ale to work these things out in your own favor. Should the credit card company alert you of impending changes, try  taking advantage of term flexibility. If you have proven track record with the company and have been in good standing for a couple of years, call them and try to renegotiate the rate. It never hurts to ask!

Knowing these things in advance will, hopefully, help you to become a more educated and sophisticated credit card user; avoiding higher debt and reaping the benefits of plastic.

And, according to Synovate, a company that tracks credit card solicitations, credit card companies are marketing more than ever before. For example, in the last quarter of 2009, 398 million credit offers were sent to consumers; that’s a 46 percent increase from the third quarter of 2009.

One of the reasons credit card experts give for the increase in credit card solicitations lies with the new credit card legislation. Many creditors, wary of what lied ahead just months ago, stopped sending credit card solicitation. However, now that the credit card legislation is enacted and it is clear what creditors can expect, many of them have therefore begun marketing hard to consumers with good credit.

So, the question is: will you take advantage of these credit card offers? Your answer to this question will depend on two factors:

• Your Current Credit Score – If you have good credit, then chances are you will be eligible for most of the credit card offers that come your way. If you have seen an increase in your current credit card’s rate or fees then it may be a good time to once again begin exploring your options. Many creditors are offering great terms and conditions now, so it may be in your best interest to see what they can offer you.
• Your Financial Status – If you are coming off of any type of financial difficulty, now may be the time to repair your credit and start fresh. However, if you still find yourself struggling to pay bills and make payments, now is definitely not the time to begin looking for a new credit card. Instead, take this time to get your finances in order; it doesn’t make any sense to incur more debt during this difficult time.

Balance transfer offers are typically used to transfer higher balance cards onto another card with a more attractive rate. Many times, credit card companies offer low introductory or balance transfer rates, thereby saving the customer from hefty finance charges.

Finding a good balance transfer offer may take a bit of work, but there are plenty of credit card companies out there who are competing for your business.

How a Balance Transfer Works

If you are paying too much in interest charges on your debt then you may want to consider the advantages of credit card balance transfers.

Simply find a credit card that is offering a special balance transfer rate and consolidate your other, higher interest debt onto the lower interest rate card. Pay close attention, however, to the term of the promotional rate, as well as the balance transfer fee, as both of these factors could impact your debt.

Many times, it pays to pay off your debt during the introductory, or promotional, period. However, if you are unable to pay off the debt during that time, pay close attention to the card’s standard APR, as it may be quite high.

Balance Transfer Features to Watch for

A good balance transfer offer will have three, main components:

• A long introductory period
• An attractive introductory rate
• A low balance transfer fee

Most balance transfer offers have an introductory period of between six to 12 months. Depending on your financial goals, look for the introductory period that best suits your needs.

A balance transfer offer often comes with a great, low introductory rate. For example, it is not uncommon to see 0% introductory rates.

Finally, a good balance transfer offer will have a low balance transfer fee. Most balance transfer fees range from three to five percent of the balance transferred, so pay close attention to this fee to ensure that it makes good financial sense to complete the balance transfer.

Creditors have begun extending credit to excellent credit card customers, also called “superprime” customers, as evident in the increase in credit card offers being delivered to the homes of these consumers.

In fact, credit card promotional mail volume rose 34 percent between September and October, which equals about 180 million pieces of new mail. This level is the highest it’s been since December 2008. It was also the largest month to month increase in credit card promotional mail volume since 2004.

Lower Credit Card Defaults Equal More Lending

The industry has begun to see a small drop in credit card defaults over the last two months, which may have banks breathing a little easier and offering to extend credit a bit more.

As credit card companies begin to spend more for their marketing efforts, many analysts see signs of credit deterioration beginning to subside.

It’s still important, however, to note that total credit card promotional mail volume is still down a whopping 74 percent from this time last year, which is the lowest level in 10 years.

Affluent Customers Only, Please

Only the most affluent customers will likely see an increase in credit card promotional mail, though, as credit card companies are expected to target only those customers with excellent credit histories and large incomes.

The two largest increases were seen from Chase and American Express over the last two months. Much of this activity from JPMorgan Chase & Co. is due to the release of its newest card, Sapphire.

American Express continues to aggressively compete with Chase to capture the wealthiest of customers, as seen by its increase in marketing spending – nearly $150 million more in the third quarter than the second quarter. American Express notes that it will continue to increase its marketing efforts as loan losses decline.

Credit card companies are also pulling out all the stops with their rewards programs in an effort to snag the affluent sector of the market.

Called “holiday hangover,” it is the time of the year that many consumers cringe when they open their credit card bills. Too much debt and not enough cash means that credit card balances go nowhere while interest rates and fees continue to mount.

This is the year that you can change this, though. Instead of digging yourself into debt this holiday season, change your attitude toward holiday spending and instead spend smart to save yourself from a “holiday hangover” in 2010.

How to Keep your Credit Card Spending in Check this Year:

• Understand retailers’ tricks and be prepared to reject them. It is not uncommon to be inundated with credit card offers every time you walk into your favorite retailer. Although these enticements can be tempting, keep in mind that most retailers charge much, much more in interest charges than major credit cards. The bottom line: you will likely end up spending more in interest charges with retail credit cards, regardless of whether you take advantage of a promotional rate.
• Take your credit card out of your wallet unless you make a planned purchase. Impulse spending is the weak spot of many consumers. You’re out and about when you notice something that you didn’t think you need, but now you can’t live without. Sound familiar? For most consumers, this type of spending is dangerous and all too common. Your best bet is to simply leave the credit card at home until you are ready to make a purchase.
• Make a budget and stick to it. If you do your homework and set a strict budget for all the people on your list you are far less likely to go overboard with purchases, and far less likely to charge up your credit cards.
• Determine your ability to pay off your debt before you make a purchase. If you want to make a credit card purchase, but you know you don’t have the money to pay it off in full next month, sit down and calculate the interest you will be paying. Often times, this bit of reality is enough to make you think twice about hefty purchases.
• Choose the best credit card and put away the rest. You don’t need to use all of your credit cards, and you really shouldn’t. Instead, take the time to compare the rates and terms on your credit cards and use only the card with the best terms and conditions.