Consumer Payment Card News

Fee-Free Card

The fee frenzy that swept the credit card industry since 1996 has now created a marketing opportunity. American Express this week introduced a new free credit card devoid of any fees including late fees, over-limit fees and balance transfer fees. However, cardholders who make two late payments within a twelve-month period may be subject to AmEx’s punitive APR of prime plus 21.99% (currently 28.74%). The new “Clear from American Express” also offers an automatic rewards program as well as a free enhanced credit report. Under the “Clear Rewards” feature, cardholders receive a shopping card worth $25 for every $2,500 of eligible spending. The AmEx shopping card expires one-year from issuance. There is no annual cap on the rewards earned. The new “Clear” card offers a 0% intro APR for up to 12 months and a 3.99% fixed APR on balance transfers. The go-to APR for purchases is prime plus either 5.99%, 7.99%, or 9.99%, depending on the credit score. For more information visit: “http://www.americanexpress.com/clear”:http://www.americanexpress.com/clear

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