Spending and Saving

How Credit Card Companies Are Making Nice

And you thought credit card companies held all the…well, cards.

Now they’re getting battered by the recession, as some consumers get smart about credit, and others get so broke they can’t pay at all. Then there are the new rules coming down from Washington.

So credit card companies are changing the way they play (a little). Lenders are actually getting friendlier, says a story in Sunday’s Washington Post.

Budgeting Tools

Until recently, credit card companies didn’t want you to have a great handle on your finances, because that meant more balances, late payments and fees. But if you go broke, how will they make money off of you? Chase Blueprint is one of the new tools that helps cardholders manage their cash. The system even lets you designate “everyday expenses” to pay in full each month. You’re not charged interest even if you don’t pay the rest of your bill completely.

Rewards for Paying

Citigroup and Discover have new cards that incentivize you to pay down balances. Citi’s Forward lowers the interest rate for good behavior, and Disover’s Motiva wil pay back a month of interest.

Paying with Points

They’re not just for flights any more. American Express now lets cardholders use reward points to pay for expenses like phone bills, utilities and even income taxes. That’s great for those of us who use points like money–especially in penny-pinching times.

Tags: banks, budgets, personal finance, Spending and Saving