For the fourth year in a row, American Express has topped the charts in the 2010 J.D. Power and Associates U.S. Credit Card Satisfaction Study.

Released last week, the study indicates that AmEx received a customer service ranking of 769 on a 1,000 point scale, which was 12 points higher than the runner up—Discover Card. In addition, AmEx was the only credit issuer to receive five out of five J.D. Power.com Power Circles. Bringing up the rear for the ten major credit issuers analyzed in the study was HSBC, which received a ranking a 686 and just two out of five power circles.

I can’t say I’m surprised to see American Express at the top of the list again. In the credit card world, AmEx has always been a brand that’s stood for the highest level of customer service. In my personal opinion, they more than deserve this title.

I’ve been an AmEx customer ever since I was eligible to have my own credit card. In fact, the AmEx Blue credit card was the first one in my wallet as a young college student, and after all these years as a cardholder I can honestly say I’ve never had a poor customer service experience. I think it’s clear that their management team has continually put a lot of money and effort into not only training what AmEx calls their “Customer Care Professionals”, but also creating a performance-based compensation structure that keeps these employees around for longer than the average credit card company.

Of course, the benefit to cardholders is that the first person we get on the customer service line generally understands our problems and has the power to fix them without transferring us ten times between other departments. To me, that’s what customer service for credit cards is all about. If I have to spend hours on the phone talking to several different representatives to fix one small problem, then I’m not a happy customer. I’ve never had an experience like that with AmEx.

J.D. Power’s study was based on responses from 8,500 credit cardholders and focused primarily on six major categories including customer interaction, credit card terms, benefits and services, rewards, credit card terms and problem resolution. I’m not quite sure where the “online experience” would fit into these categories (maybe customer interaction?), but I have to mention that AmEx has made great strides in this arena too.

I remember not being a huge fan of their website a few years ago. However, their current online interface allows you to manage all your AmEx cards from one page, and the key information you need is fairly easy to find and only a click away. They also offer some great tools to help sort transactions by various categories and view year-end summary reports.

The reports can come in quite handy when tweaking your personal budget or preparing for tax season. But beware—it might make you physically ill to see how much you spent on that gym membership over the entire year after only showing up once in January. You might as well ditch the gym membership now and pick up a copy of P90X pronto. You won’t regret it.

So, congratulations to American Express on a job well done in an extremely tough business environment! We’ll see you again next year at the top of the list.

Has it not felt like an eternity since President Obama first signed the Credit CARD Act into law? Here we are almost 15 months after the stroke of his pen, and we’re still waiting for the final round of new credit card rules to take effect.

Fortunately, we don’t have to wait much longer. Beginning August 22nd, here are five of the final key changes you should expect to see from your credit card companies:

1. No More Inactivity Fees

That’s right—your credit issuer can no longer charge you a fee for not using your card enough!

2. $25 Max on Fees

Unless one of your payments was late during the previous six months, your credit card company cannot charge you a fee in excess of $25. If you have been late, they can still charge a fee as high as $35.

3. Late Fees Capped at Minimum Payment

In addition to the $25 cap on fees, late fees cannot exceed your minimum payment amount. So, if your minimum payment is only $15 and you miss the payment due date, your credit card company can’t levy a late fee larger than $15.

Likewise, if you exceed your credit limit, you can’t be charged an over-the-limit fee greater than the amount by which you exceeded your limit.

4. One-Fee Limit

Your credit card issuer can no longer charge multiple fees for a “single event or transaction that violates your cardholder agreement.” So, if you make a late payment, you can only get slapped with one fee for your mistake.

5. More Rate Transparency

While it’s not talked about as much as the new fee-related changes, rate transparency should be just as important in the minds of consumers. If your credit card’s interest rate is increased, wouldn’t you want to know exactly why? I know I would.

The new rules not only require credit card companies to tell you why your APR increased, but they also have to review and re-evaluate the increase every six months. For example, if your credit issuer reviews your account after a rate increase due to late payments and find you have paid your credit card bill on time for six consecutive months, they must lower your rate back to its previous level.

Of course, restricted fees are often replaced by new fees or uncommon ones that consumers haven’t dealt with for years.  Have you noticed any new fees from your credit issuers lately?  If so, we’d love to hear about them in the comments section below.

A recent TransUnion study found that the percentage of Americans behind on their mortgage but current on their credit cards increased nearly 55 percent between early 2008 and the third quarter of 2009.

And while the amount of consumers we’re talking about is still relatively small (6.6%), I find the overall trend to be quite compelling. Clearly, consumers are beginning to think differently about the priority of their debts.

When I bought my first home in 2005 (at the peak of the market in my area- grrhh!), it was ingrained in my mind that no matter what, I would always strive to pay my mortgage first. It seemed logical to me that the house would take priority over other debt, and it still does, but a lot more people obviously feel different these days.

I’ve had several conversations with personal friends as they’ve tried to decide if they should keep paying their mortgage or simply walk away while staying current on other debts like their credit cards. In each case, for those that did choose to walk away from their mortgage, their reasoning was the same. They couldn’t see the sense in sinking more money into a home that had lost so much value it might never recover. They just wanted out, once and for all.

Their Credit cards, on the other hand, could be a lifesaver if times got even worse during a longer period of unemployment. Credit cards could help finance their basic necessities, and the house couldn’t do that. In addition, they really didn’t care much at all about their credit scores anymore, so the negative effects of a foreclosure didn’t scare them. All they cared about was keeping what credit cards they did have, while hoping that the foreclosure process would take a “really long time”, essentially rewarding them with free rent.

I’ve often wondered what I would do if I was faced with the same situation. My gut feeling is I would pay the mortgage first. That said, I’m a huge advocate of not only holding an emergency fund large enough to cover the mortgage and other living expenses for at least twelve months, but also never carrying a balance on credit cards. So, theoretically, I should never have to choose between the two, unless I found myself out of work for much longer than a year.

However, I’m interested to hear what the majority of you would do. If you had to choose one over the other, would you pay your mortgage or your credit card bill?

When a loved one passes away, the last thing on your mind is their credit card bills.

However, in order to protect the deceased’s estate from additional charges, fees, or even identity theft, it’s important to remember that your loved one’s credit cards will remain open and active until you take the following three steps.

1. Call Credit Issuers and Close the Accounts

Round up all your relative’s credit cards and/or credit card statements and determine which credit card companies you need to contact. You should be able to find the right contact information either on the back of the credit cards or their monthly statements.

When you make the call, let the customer service agent know right away that you would like to close the account of a deceased relative. Most credit card companies have a special group of agents trained to deal with these situations, and you’ll likely find them to be much more compassionate and helpful than your average representative.

2. Provide Copies of the Death Certificate

The customer service agent should request that you submit a copy of the death certificate in order to close the account. Ask if they will accept a faxed or emailed copy to save you from having to make an unnecessary run to the post office. And if that’s not possible, be sure to mail the document via certified mail with return receipt requested. If you don’t have the death certificate yet, request it from the funeral home.

Once the credit card company receives the death certificate and verifies the date your loved one passed, the account will be closed as of the date of death and any interest or fees after that date should be waived. If they don’t offer to waive these charges up front, be sure to ask.

3. Notify Estate Executor of Existing Debts

A closed account doesn’t mean any remaining balance will magically disappear. Unless the account is jointly owned, the estate itself will still be responsible for the debt. Therefore, it’s important that you keep records of the accounts you’ve closed and notify the executor of the estate regarding any outstanding debts.

Dear Creditnet: I’m currently in the market for a new TV and Best Buy is offering 0% financing for three years.

My question is when you open an account like this, how big of a hit does your FICO score usually take and how long will it take to rebound?

I could easily pay cash for the TV up front, but the “finance” person in me says it’s free money—why not take the terms?

Answer: Hard inquiries for a new credit card will generally drop your FICO score about five points, but it should bounce back within a few months. In some cases, a hard inquiry may not even affect your FICO score at all, so I wouldn’t worry too much about having an extra inquiry on your credit reports.

However, what you should worry about is how retail credit card deals (what Best Buy is actually offering you) can often wreak havoc on your credit utilization ratio, which accounts for about 30% of your FICO score. Here’s how it works.

If they give you a $3,000 credit limit (places like Best Buy often don’t offer very high limits) and then you immediately charge $2,500 for the new TV, you’re already at an 83 percent credit utilization ratio on the card.  That will definitely have a negative impact on your score until you pay the balance down.

In fact, in order to keep your credit score at its best, you should never use more than 10-30 percent of your available credit on any individual card.  Likewise, you’ll want to keep your overall credit utilization under 10 percent.

So, if the finance guy in you still wants to get some free money, I think it might be a better idea to just go ahead and get a new 0% interest credit card (Citi Platinum Select is offering 0% interest for 18 months right now) with no annual fee. If you have good credit, you’ll most likely get a much higher limit than you would from Best Buy, which will allow you to keep your credit utilization low while paying off the entire balance at no interest.

If you’re not keen on getting a new credit card, I would just make the purchase using the credit card you normally use, and then immediately pay it off in full with the cash you’ve saved. Stay away from Best Buy’s in-store financing—it’s not worth it.

There’s a lot of free credit scores floating around the Internet, but as I’ve written about in previous posts, none of them are actually credit scores that matter. Often advertised by the credit bureaus themselves, these scores may give you a rough estimate of where your true FICO scores stand, but that’s about the only purpose they should serve.

If you ever want to know your real FICO credit scores, the ones the vast majority of lenders rely upon when assessing your credit risk, the best option has always been to purchase them directly from myFico.com. And while this is still the case, many consumers will now have a way to get a peek at their FICO scores for FREE.

Don’t get too excited though—it’s not as great as it sounds. Here’s how things have changed.

Obama signed the most sweeping financial reform bill since the Great Depression into law yesterday morning. Often called FinReg, the law includes stricter rules for Wall Streeters and the establishment of a new Consumer Financial Protection Bureau, which will oversee financial products such as mortgages, credit cards, and payday loans.

FinReg also includes a section known as the FACS Act, or the Fair Access to Credit Scores Act, which was sponsored by Sen. Mark Udall (D-CO) and gives consumers the right to see their credit score if they are denied for something or even if they are approved but didn’t get the deal they asked for due to their credit score.

So, if you apply for a new credit card and are denied because your FICO score isn’t high enough, your lender will now be required to give you a free copy of the FICO score they used. If they used a different credit score, that’s the one you would get instead, but most lenders do use a classic FICO score or some variation of it. This isn’t ideal, of course, since none of us want to be denied for anything, but it’s definitely a big change worth noting.

Unfortunately, we don’t know exactly when the FACS Act will take full effect. My guess is it’s going to take awhile for all the banks to make the necessary changes to their systems in order to comply with the new regulations. However, we should certainly see the change implemented before the end of the year, or perhaps even as early as the end of the 3rd quarter.

Dear Creditnet: I currently have a Capital One No Hassle Visa credit card that expires in August 2010. This card has an annual fee, and I’m tired of paying it every year.

Do I have to cancel my card in order to apply for a different Capital One card with no annual fee?

Answer: No—you don’t have to cancel your existing card before applying for a new no annual fee credit card. However, there are a few important issues you should consider before moving forward.

First, if you choose to leave your current card open and not use it, you’ll still have to pay the annual fee. I’m assuming the fee is what you’re trying to avoid in the first place, so you may want to try calling Capital One to ask if they will either waive the annual fee or upgrade/transfer your existing account to a new card.

You may not have much luck with the upgrade route as it’s generally considered a downgrade when you move from a rewards card with an annual fee to a no annual fee credit card. On the other hand, many people claim to have had success convincing credit issuers to waive annual fees in order to retain their business. It can’t hurt to at least ask and see how they respond.

Your second option is to simply close the existing account after you apply and are approved for the new card. If you can’t upgrade or convince your credit issuer to waive the annual fee, this might be the best option for you. I wouldn’t cancel the old credit card before you’ve received the new one because you don’t want to end up without available credit in the event your application is denied.

Keep in mind that closing the account will likely have a negative impact on your credit score too. Your length of credit history and credit utilization ratio account for nearly half of your FICO score, so you may want to think twice about this option if the card is the oldest one in your wallet or makes up a significant amount of your total available credit.

Still have questions? Try reading our step-by-step guide: How to Deal with Annual Fees.

One of the most common questions we receive from readers is “what’s the best way to dispute errors on my credit report”?

Contrary to popular belief, disputing online through the credit bureaus’ websites isn’t the best way to get results or document your efforts. It may be the the fastest, but it’s certainly not the most effective route to take.

If you want to make sure your dispute is not only taken seriously, but also well documented, follow these 3 easy steps the next time inaccurate information pops up on your credit reports:

1.) Dispute IN WRITING through the Credit Reporting Agency

Send a simple, to-the-point letter to the credit reporting agency (or all three if necessary) and tell them specifically what inaccurate information you’re disputing and why. Include copies, not originals, of any documents you have supporting your dispute, and request that the information be removed or corrected. You may wish to even send a copy of your credit report with the items you’re disputing circled in red so there isn’t room for confusion in regards to what you’re disputing.

In addition, don’t forget to include your complete name and address, and then send the letter certified mail, “return receipt requested”, so you can document exactly when it was received. You should receive a response to your dispute within 30-45 days.

2.) Dispute IN WRITING through the Information Provider

The FCRA requires both credit reporting agencies and information providers (the company providing information about you to the credit bureaus) to correct inaccurate or missing information on your credit reports.

So, the next step is to write a letter directly to the information provider and tell them what you’re disputing as well. Just like you did with the credit reporting agency, be sure to include copies of any documents that support your dispute, tell them why the information is incorrect. Then send the letter via certified mail return-receipt requested.

3.) Document, Document, Document!

Documentation is key in any credit report dispute. Credit reporting agencies and creditors are unfortunately notorious for giving consumers the runaround, so you need to be prepared at all times to provide solid documentation of your entire dispute.

Make copies of all written correspondence you send or receive, and take detailed notes on any conversations you have with the credit bureaus or information providers. Keep a timeline of important events, and file your documentation away in whatever method is the easiest for you to keep track of and organize.

If you’re looking for more direct guidance, try visiting our free discussion forum about credit to get the support and advice you need from more than 30,000 members.

Ever stopped by a convenience store to quickly buy a drink with your credit card only to have the cashier point to a tiny sign taped to the wall that says “Sorry—The Minimum Credit Card Purchase is $5″? How inconvenient is that?

I understand all the costs small business owners must endure to accept credit cards, but as a consumer, I think minimum purchase requirements really stink. Credit cards are all about convenience, and businesses that choose to accept them in an effort to conveniently grow their revenues shouldn’t be allowed to inconvenience customers by placing restrictions on when they can or can’t use credit cards.

Besides, it’s really embarrassing when I have to run back to the car to search for loose change.

If a business wants to make the decision to not accept credit cards at all, that’s perfectly fine. Put up a big sign that says “CASH ONLY”, and us credit card lovers won’t waste our time in your store. Of course, if your product or service is awesome enough to convince me to hit up the ATM each time before visiting, than I probably wouldn’t mind anyway.

Unfortunately, the new Financial Reform Act doesn’t look like it’s going to help out much with this nagging issue. In fact, the new legislation would give Congress’s full support to merchants who want to impose minimum purchase requirements up to $10.

The act, if passed, will also give the Fed the right to increase minimum purchase requirements in the future. Likewise, merchants would be able to offer discounts to customers who are willing to pay in cash or with a debit card instead of credit cards. While I’m clearly not a fan of cash purchases, a big up-front discount would be hard for even me to turn down under certain circumstances.

What do you think of minimum purchase requirements and merchants offering more discounts for cash purchases? Is this a positive change for consumers, or one that will eventually leave us on the short end of the stick yet again?

In mid-May, I had an experience that made me think about the importance of being prepared for the worst.  I live in Bangkok with my wife and infant son.  We moved back here a couple of years ago because my work focuses on Asian markets. Of course, we also wanted to live in a cheap, stable, tropical paradise.

Last month, the simmering political issues that have plagued normally peaceful Thailand for the past five years came to an unexpected and violent head.  The result was open fighting in the streets, widespread fire and looting.  As the fighting spread and looked like it might morph into civil war, a 6 pm citywide curfew was declared.  Not knowing when the curfew would be lifted or what would be left of the city the next morning, I decided to make a quick trip out to the store to buy a few extra items.

What I saw was eye opening on many levels.  It was like something out of a movie.  Stores and banks were already closed.  Those that were open were literally being emptied by mobs of people.  ATMs either were out of money or had lines of 15-20 people at them.  Traffic was at a standstill as people tried to get out of the city, and there was a palpable panic in the air.  As I looked around, I realized that the time for preparing for this emergency was over.  If I was not ready, it was too late.

In this situation, there were three things that everyone obviously wanted—food, water and cash.  I think it’s logical to assume these things are in great demand in most emergency situations.

While you may not live in a place that is prone to widespread civil unrest, we should all recognize that we are potentially susceptible to natural disasters.  Think about what you would do if every store were closed, you could not access the money in your bank account or use your credit cards and you had no electricity.  Would you and your family be able to get by for a few days?

Now, I’m not suggesting you build a bunker in your backyard and wait for the Apocalypse.  Or that you take all your money out of the bank and put it under your mattress.  Bu what I would suggest is that you take some time with your loved ones and think of what you would need in the event of an emergency.  Keep in mind that every individual and every family has different needs.  Someone living in New York City may have different concerns than someone living in Montana.

You also don’t have to compile your emergency kit overnight.  Make a list of things you need and pick them up little by little.

This is a great website to help you get started: http://www.ready.gov/america/getakit/