Credit Cards Rates, Fees Keep Going Up

Well, you can’t say they didn’t warn us.

The banks threatened to go on a rate-raising, fee-hiking, rule-writing rampage if Congress approved the Credit Card Accountability and Responsibility Act of 2009.

It did and the result has been an unending stream of letters from my credit cards making good on that threat.

But I still find it ironic that the most recent arrived the day after the first few provisions of the law intended to protect me from the credit card industry’s worst abuses took effect.

READ THE ENTIRE POST.

Related Posts:New Credit Card Rules Start Taking EffectOur Favorite Cards For College StudentsCards Switching Users To Variable RatesAnnual Fees On More Credit Card Offers5 Credit Card Fees You Probably Didn’t Know About

Out of the Inbox: Credit Karma’s Monthly Email is Hard to Ignore

 I get dozens of newsletters and marketing pitches from my various financial accounts every month. While they are interesting to me as an analyst, for the average consumer there’s rarely any actionable information.

However, one financial company consistently drives users to its site month over month with their email missives. And they don’t even have to change the creative.

Free-credit-score provider Credit Karma simply reminds users that it’s been more than two weeks since they last checked their credit score. The company goes on to encourage users to check in every month to to make sure no adverse changes have occurred (see first screenshot below). It’s a simple yet powerful message that drives traffic to the company’s ad-supported site (see second and third screenshots).

I’ve received this message on the 16th of each month this year, except May, when I must have already visited Credit Karma in the two weeks prior. A large yellow button invites the reader to click through to see the latest score (see first screenshot).

And the technique seems to be working. Traffic, measured in unique visitors by Compete, is up six-fold in the past 12 months, to 310,000 visitors in July (see chart below).

Credit Karma email (received 16 July 2009; 10:05 AM Pacific)
Subject: Credit Karma update

Current landing page after clicking “update” button in email (13 Aug 2009)
Note: Virgin Money’s friends-and-family mortgage offering is the lead product placement while The Easy Loan Site has the top banner. Lending Club is also running a banner across the top.

Landing page two months ago (16 June 2009)
Note: Virgin Money’s friends and family was also the lead product placement, while ING Direct’s Sharebuilder had the banner.  Virgin Money also has a product offer in the middle of the page.

Links from My Presentation at the National Credit Union Directors’ Convention

Thanks to everyone who attended my presentation: Ecommerce Opportunities for Credit Unions yesterday at the CU National Directors’ Convention in Las Vegas. 

Here are the links to the examples cited:

Mobile banking

• Walt Mossberg’s Mar. 25, 2009 article about iPhone apps
• Apple’s “Apps for Managing Money” page
• MasterCard ATM Hunter iPhone app (iTunes link)
• Mobile remote deposit from WV United FCU (previous post)
• Chase text banking page
• Evangeline Credit Union (Canada) text/mobile banking demo
• Bank of America’s SafePass mobile security page
• Mobile payments integrated with prepaid cards at Obopay
• iPhone app on homepage at Meriwest Credit Union

Second-generation online banking (online banking 2.0)

• Startups demoing new financial apps (link to videos) at FinovateStartup 2009
• Quicken Online’s “what’s left until payday” tool
• Online personal financial management at Mint
• Long-term financial planning at SimpliFi
• Wesabe’s co-branded site at UK’s Telegraph and coming soon to Delta Community Credit Union and Addison Avenue Credit Union (also mentioned Jwaala)
• Property tax savings at LowerMyAssessment.com
• Home-Account’s fee-based mortgage management
• Free credit grades at KnowBeforeYouApply.com (also mentioned Credit Karma)
• BillShrink’s wireless savings tool and credit card tool 
• Social savings at SmartyPig

Connecting with people

• Social networking tools showcased on Michigan State University Federal Credit Union’s (MSUFCU) homepage
• MSUFCU twitter page
• BakerTweet, the UK bakery using Twitter
• University of Wisconsin Credit Union’s blog, Source Code
• Blog feed on homepage of Piedmont Credit Union (no longer on homepage…blog has gone dormant)
• Subscription options at Piedmont CU’s blog site
• Facebook page at Fairwinds Credit Union
• FreeAllATMs campaign from Amplify Credit Union carried out on its Facebook page and YouTube page
• Video usage at Generations Federal Credit Union
• Our newsletter, Online Banking Report and next financial innovations conference Finovate 2009 in NYC, Sep. 29, 2009

Pennsylvania State Employees Credit Union is First to Add Free FICO Credit Scores to Online Banking

In what I hope is the beginning of a trend, Pennsylvania State Employees Credit Union (PSECU) is offering free FICO credit scores to its online banking customers. The CU says more than 200,000 members are eligible to receive free scores.

Although, Wamu and HSBC (note 1) both offer free scores for their respective credit card customers, PSECU is the first financial institution to offer scores to checking account customers within the online banking area.

There is no charge for the service, but members must enroll to participate. A new score will be posted online each month in the online banking area. Members also have the option to receive alerts when their scores are updated.

The service is powered by Fair Isaac’s MyFICO service. According its press released today, the company is talking with other financial institutions about participating in the Scores on Statements program. Currently, 1.5 million consumers have access to free credit scores through the service.

Bottom line: Without knowing the financial arrangements, it’s impossible to estimate the ROI. But credit scores have real value to consumers and any financial institution providing them for free is likely to improve its standing. It’s also possible that a free credit score service could be a profit center if fee-based credit report monitoring options are marketed to enrollees of the free service (note 2).