1. Check your credit score first.
While a score in the high 500s or low 600s isn’t going to qualify you for a platinum card, you still might be able to get a regular credit card rather than having to pay a deposit for a secured card.

2. Make sure the bank reports to the three major credit bureaus.
If it doesn’t, the card won’t help you build your credit history or raise your score.

3. Look for a detailed list of all fees you will be charged.
Activation fees, annual fees, program fees, monthly servicing fees and others can add up quickly. A card with a $250 limit that charges $208 up front not only leaves you with little room for spending, it also leaves you with a high balance-to-available-credit ratio, and could hurt your credit score instead of helping it.

4. Don’t settle for a sky-high interest rate.
Some banks charge 19.9 percent interest or more for secured cards, but there are cards that charge far less. And some will pay interest on your deposit. Just because you’re looking to repair your credit doesn’t mean you shouldn’t shop around.

5. Make sure your card offers a grace period before interest is charged.
Some secured cards start charging interest right away, but there are plenty that offer the 25-day grace period most regular cards feature.

Total outstanding consumer credit, including both revolving and nonrevolving credit, fell at a 3.5% annual rate, or $7.5 billion, to a seasonally adjusted $2.56 trillion, the Fed said.

Credit has declined in five of the past seven months. Prior to that, credit had declined in only one month in the previous 15 years.

The figures do not include mortgages or any loans backed by real estate.

The Reston, Va.-based student lender says college students used credit cards last year more than ever before, with nearly one-third of those surveyed charging direct tuition costs.

In all, 92 percent of undergraduate credit cardholders charged textbooks, school supplies and other direct education expenses, charging an average of $2,200 on education-related expenses, more than double the average of $942 in a 2004 survey.

“Too many students are at risk of overpaying for college by pulling out credit cards to pay for textbooks or even part of their tuition bill, instead of using less-expensive financial aid to cover these items,” said Marie O’Malley, consumer research director for Sallie Mae (NYSE: SLM).

The survey found that half of today’s college students have at least four credit cards, and only 17 percent said they regularly pay off all their balances each month.

Total outstanding consumer credit, including both revolving and nonrevolving credit, fell at a 3.5% annual rate, or $7.5 billion, to a seasonally adjusted $2.56 trillion, the Fed said.
Credit has declined in five of the past seven months. Prior to that, credit had declined in only one month in the previous 15 years.

The figures do not include mortgages or any loans backed by real estate.

The Federal Reserve said Tuesday that consumer borrowing dropped at an annual rate of $7.48 billion in February, or 3.5 percent, from January. Wall Street economists expected borrowing to slide by only $1 billion, according to a survey by Thomson Reuters.

The decline was led by a record drop in borrowing on credit and charge cards, which fell at an annual rate of $7.8 billion, or 9.7 percent. That is the sharpest drop in dollar terms since federal records began in 1968, and the steepest percentage fall since 1978.

The report shows consumers reluctant to ramp up spending as employers shed millions of jobs and the economy is mired in a recession.

As an international franchisor, MasterCard earns an initial franchise fee when it signs up a bank or other financial institution, authorizing it to offer its branded cards. These financial institutions are MasterCard’s customers.

Most of MasterCard’s revenue comes from fees it obtains from the banks for processing transactions and handling other payment-related services, and from charges that vary according to the dollar volume of activity from its branded cards. The more Mexican consumers who use a MasterCard issued by a bank in Mexico, for example, the more money MasterCard collects from the bank.

Citicorp, for example, is a franchisee of MasterCard and issues Citi MasterCards to consumers, establishes credit limits, sets interest rates and fees, and collects money from cardholders related to purchases, cash advances, interest, penalties and so.

MasterCard also tracks international consumer behavior and buying trends and provides consulting and advisory services.

In Latin America and the Caribbean, MasterCard has issued 115 million cards with the MasterCard brand and 126 million debit cards with the Maestro brand.

During the fourth quarter of 2008, MasterCard cardholders in the region carried out 635 million cash and purchase transactions, excluding Maestro cards.

The use of credit cards is so prevalent in our society that it is almost unthinkable to see a drop in their use. We ourselves use credit cards to pay for everything. Of course, we always pay off our bills each month. Even our spending has come down significantly as we face uncertain future in regards to our jobs and when the economy will recover significantly enough for us to be comfortable in upping our spending again.

Given this situation and general public’s fear of the future, it comes as no surprise that credit card use has dropped 8%. What is surprising is that it only dropped 8%. I guess some of it is offset by the fact that people have lost income and are using the credit cards as temporary income.

This applies to all the popular types of credit cards like low-interest credit cards, balance transfer credit cards and cash back credit cards.

For low-interest credit cards, the average APR jumped up from 11.59% to 11.62%. Low Interest credit cards are offered to people with strong credit history.

For balance transfer credit cards, the average APR jumped from 13.12% to 13.15%. Balance transfer credit cards are usually used by people who are paying higher interest rates on credit balances and want to lower their monthly payments.

For cash back credit cards, the average APR jumped from 13.75% to 13.82%. Cash back credit cards are one of the most popular types of credit cards where the rewards are in from of a cash back.

Generally, when your interest rate is hiked, you receive an ”opt-out” notice, which gives you a 15-day advance notice of the change and the option to close the account and pay off your balance at your old rate. However, the 15-day rule doesn’t apply if the rate hike is due to a delinquency.

Many consumers prefer to keep their cards after getting rate-jacked for fear that closing an old account, which adds longevity to credit history, may hurt their credit score. This may be true, to some extent, if you don’t have many other credit cards or just started using credit. However, paid, closed accounts stay on your credit report for up to 11 years, depending on the reporting bureau (Equifax, seven to 11 years; Experian, 10; TransUnion, five).

Our advice: If you feel that the credit card company is being unfair, close the account in protest. If you really need the extra credit line, apply for another card that will give you better terms.

For low-interest credit cards, the average APR jumped up from 11.43% to 11.52%. Low Interest credit cards are offered to people with strong credit history.

For balance transfer credit cards, the average APR jumped from 12.93% to 13.05%. Balance transfer credit cards are usually used by people who are paying higher interest rates on credit balances and want to lower their monthly payments.

For cash back credit cards, the average APR jumped from 13.64% to 13.67%. Cash back credit cards are one of the most popular types of credit cards where the rewards are in from of a cash back.