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Credit Card Applications » News » Other » Credit Cards with Stars

Credit Cards with Stars

January 14, 2008 | Updated on January 14, 2008
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The content is accurate at the time of publication and is subject to change.

Credit Card Applications with Stars - Learn What Your Credit Card Rates

In 2008 we still are affected by the ruinous effect on our credit affairs caused by the credit card industry deregulation which took place in the 1980s. In an effort to bring greater competition onto the credit card market and, consequently, lower the costs of credit to customers, the deregulation gave lenders the freedom to set specific rates for different social groups of the American society.

However, it led to a converse effect. Different pricing of credit was not the worst thing. The deregulation also entailed complex, non-transparent credit cards pricing which accounts for the ever increasing consumer debt in America as most people just cannot make out what this or that fee means and when it is imposed.

The more confusing the fine print is, the more insecure your credit card rates. Today the safety of your card is very likely to be measured by a 5-star rating based on the transparency of the fine print.

Introduced in 2007 by Senators of Illinois and Oregon, the 5-Star Safety Rating System helps credit card applicants and holders make a conscious choice in favor of that card or the other. How? The legislation that requires the insertion of the credit card safety through a 5-star rating system is aimed at making terms of a credit card application , bill statements, rates and fees more transparent and consumer-friendly and thus, safe for a customer.

Five stars will be given to a credit card with most consumer friendly terms which are not designed to get a holder into a trouble due to their ambiguity. For the time being, when the Credit Card Safety Star rating system is still new and even maybe unwanted among card issuers, most cards on the market rate one or two stars only.

But, just like it went with cars five-star crash rating system, things are going to change soon. In the effort to win more buyers, car manufactures who initially had to be content with one or two stars only, hurled into increasing the safety of new vehicles and making their services more consumer friendly.

In the end, there was a rare auto that did not qualify for 5 stars for all its crash ratings. Car owners and buyers got a much better service and a similar effect is expected in the credit card industry.

So, what requirements are banks and credit companies going to face and how are they expected to change their ambiguous and often predatory policies?We've outlined some of them:

  • Card issuers will have to give customers 90 days notice before changing terms and conditions of the agreement, otherwise they'll get only one star safety rating;
  • Issuers will have to write the fine print in an easy, comprehensible form or they'll receive one star only;
  • Creditors should abandon the practice to impose fees to pay a credit card bill by any method if they want to get more than just one star;
  • No multiple-cycle billing should be applied and no late payment fee should be imposed within 2 days of the payment due date.

There are many more points in the new legislation which a lender has to consider to get 5 stars in credit card safety rating. The indication of the Safety Star rating should be found on all applications, credit card agreements and statements, as well as on the back of each plastic. It is expected to help customers easily compare the safety levels of a card chosen and make the right choice.

The credit industry will only benefit from the new legislation, as a greater competition and predatory policy elimination are believed to come as a result.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
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  • Larry
    With the Virgin / Barclaycard signature offer, there seems to be some consumer deception or maybe even outright fraud goin on.   I decided to jump on this offer..  read all the info on it..  was approved for their platinum card, paid the fee, then was only awarded 10,000 points instead of the advertised 20,000.   When i inquired about the less than advertised bonus points, Barclaycard claims only Signiture Visa cardmembers get the 20,000..  as a platinum cardholder, you don't qualify for that level of bonus, so you get 10k instead.   Well, in their current ongoing promotions, it states plain as day that....    Applicants approved for the Visa Signature or Platinum Card with $49 annual fee will receive 20,000 Bonus Points awarded to your Virgin America Rewards Account at the close of the first billing statement in which you make your first purchase or balance transfer (that is not returned or rescinded) and have paid the Annual Fee on the account (and such fee is not rescinded). They don't mention anything about a separate program for platinum cardholders..  However, trying to get someone to resolve this issue with either Virgin or Barclaycard seems to be rather impossible.. Seems to me they're simply drawing people in with the fraudulent offer, then simply saying, oh, we're sorry you don't qualify..  but thanks for signing up for our garbage credit card with insane fees..   
  • CreditLandCom
    Thank you for sharing your experience with us. We have reviewed this offer and you are correct, nowhere it is mentioned that 20,000 Bonus can become a 10,000 Bonus all of a sudden... We will mention this in our review of this card so others can make an informed decision. Another way to get Virgin miles is to get an American Express charge card: The Business Gold Rewards Card® now offers 50,000 Miles, though you do have to spend $5,000 in the first three months of card membership to get it. It also has $0 introductory annual fee for the first year, then $175. Premier Rewards Gold Card now offers 25,000 Miles, though you do have to spend $2,000 during your first three months of Card membership. It also has annual fee of $0 for the first year, then $175. While we do not know If any of these offers make sense to you, we are at least sure that you will get advertised bonus in full if you decide to get them... Conversion rates for Virgin America are: 100 Elevate Points = 200 Membership Rewards® Points All the best.
  • Deborah Ellsworth
     would very much like to start a new credit history  by making payments on time I would tohave a credit card that is NOT PREPAYID! I don't need a card with a high limit just something to start a new credit history. Thank You Deborah Ellsworth
  • Deborah Ellsworth
    I would very much like to start a new credit line to get back on track. I DO NOT WANT A PREPAID CARD!! This new credit card if I am approved does not have to hace a high limit just something for me to start over again and prove myself ThankYou. D Ellsworth
  • Miss Edna
    there is a huge problem with the RFIP chip: it is easily compromised. There are already 'readers' in the form of what looks like a cellphone in a case, that scans all the info in the chip by merely walking near a person -- this 'reader' penetrates leather, cloth, spandex, etc. The only thing it will NOT penetrate is METAL. Perhaps one has seen commercials touting metal credit card cases. Here is my hint for a free fix: cut a piece of aluminum foil or use the foil that is used to keep foods fresh, like coffee. Cut it so that when folded once, it forms a sleeve for your credit card. place the credit card in the sleeve, then place the sleeve in your wallet.
  • Robin Parks
    I am looking to apply for the AARP Visa signature card from Chase that offers $100 after spend $500 in first 3 months, no annual fee and 0% interest first year; I don't want to mail in offer because of having to write in Social security #. Can you direct me to the proper on-line site?
  • CreditLandCom
    The Chase bank cards are not currently available at, but you can consider applying for the Citi® Dividend Platinum Select® Visa® Card - $100 Cash Back. The cards has similar terms and cash back program.
  • Becky
    This is Becky Now what do I do just waqit for acard to come to me?
  • CreditLandCom
    Once you have applied, you should receive a letter within 10 business days letting you know if you were approved and when your card will arrive. If you did not receive any letter or notification from the issuer, you should contact them directly. Also, you should contact the issuer if you’ve been waiting for your credit card longer than 30 days. Since we are not a bank and don’t issue credit cards, we cannot give you any information about your application or credit card.
  • SavingStar
    Thank you for posting about SavingStar. Just to clarify one sentence in your article, we have over 5 million members (not 500). Thanks, Josh
  • CreditLandCom
    Sorry for the misprint. We’ve corrected the sentence. Thank you for noticing that.
  • Eric
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