Citibank announced changes last month to its ThankYou rewards network. Changes including increasing the number of points required to redeem certain rewards and the addition of stipulations that they can suspend or cancel rewards points if your credit card is not current or you do not make a purchase within a certain time frame.

Another big credit card rewards change is for the Chase Freedom credit card. Cardholders used to earn one point for every dollar charged and three points for every dollar charged in the cardholders top three spending categories. Now rewards on the Chase Freedom card have been reduced to one point for every dollar spent. Fortunately for existing Chase Freedom cardholders, this change will only apply to new customers who sign up for the card.

Will your credit card rewards change? Watch your mail to find out.

For example, Wells Fargo has a program called the “Wells Fargo Debt Pay Down Solution” in which the rewards on a Wells Fargo credit card can be automatically applied to the balance or other loan balances at the bank.

Fidelity Investments also introduced the Retirement Rewards Card, a credit card that pays rewards of 2% of all purchases and automatically deposits the rebates into a Fidelity IRA.

Although not new, Discover Card also offers a credit card aimed at customers carrying a balance that will help them get out of debt—the Discover Motiva Card features cash back and a unique perk: For every six months on-time payments, Discover will waive one month of finance charges.

The short answer to both questions? No, and no.

Few people need credit monitoring. It’s a convenience. Credit monitoring sends you regular updates on your credit score and report so you don’t have to remember to check them (or pay additional for each report). And that’s about it.

Credit monitoring is great for people who are actively trying to watch and improve their credit score, but don’t expect it to do things it can’t. Like protect you from identify theft. Credit monitoring notifies you as soon as anything changes on your credit report. For example, credit monitors would send you an alert if a new line of credit appeared on your account. If you didn’t apply for it—it could be ID theft.

The problem is, by the time it hits your credit report, it could be too late. Credit reports aren’t updated instantly, and by the time the credit card an ID thief applied for in your name appears in your report, he could have already charged $10k in your name that he never plans to repay.

Now, there are some services out there that don’t just provide credit monitoring but also identify theft insurance. These firms cost more, but will pay for damage to your credit report caused by ID theft.

Interested in learning more about credit monitoring? Compare credit monitoring services now.

Call your credit card’s customer service number, usually identified by the 800 number on the back of your card. After verifying your account information, tell the representative that you would like to increase a credit limit increase. Depending on your credit card company, credit score, and account usage, they may do it immediately, or they may put you on hold and look into your account.

Your chances of getting a credit limit increase approved increase if:

• You have not made any late payments on any accounts in two years
• You have a good credit score overall (check your credit now)
• You have a balance on the card on which you want to increase the credit limit, but are not already “maxed out”

It may seem strange, but credit cards do not usually want to increase credit limits on customers’ cards if the customer does not use much, or any, of the credit limit they already have. So if you have a $2,000 credit limit and only charge about $300 to the card each month and pay the balance off in full, the credit card company probably isn’t interested in raising your limit to $3,000. Why not?

It’s because the credit card company doesn’t foresee making more money by raising your credit limit, but they do foresee additional risk. Since you generally only charge $300 on the card anyway and pay the balance in full, the credit card company doesn’t expect you to charge $2,500 and pay that off over time—earning the company interest fees. In fact, the card company may worry that if they grant your credit limit increase, you may charge $2,500 and then decide not to pay (even if you have great credit).

You may be able to increase the chances of getting a credit limit increase by telling the rep what you plan on using the additional credit for. (Perhaps you’re going on vacation, or will be transferring a balance).

Some Credit Cards Have Automatic Credit Limit Increases

Select credit card companies will increase your credit limit automatically after certain time periods of using your account responsibly. For example, Capital One credit cards have a program called Credit Steps. When a new customer gets a Capital One card and pays on time for three consecutive month, their credit limit is raised. The customer then gets another credit line increase after six months of timely payments.

Discover cards also feature regular credit limit increases after a year or more of responsible payments. Citi credit cards make it possible to request credit limit increases online when you are securely logged into your credit card online account manager.

Obama has pledged to crack down on the payday loan industry, which critics say charges usurious interest rates and takes advantage of poor and uneducated Americans.

Plans that Obama has specified would include a 36 percent cap on the interest payday loan companies can charge and simplified information about loan fees, payments, and penalties. For example, payday lenders currently may make it very easy for borrowers to “extend their loan” and postpone payment, but often do not disclose the additional fees or finances charges that will be added to their balance.

Still interested? Learn more about the Visa Black Card here »

Social Lending

• Should You Consider Social Lending? by Matthew Paulson, American Consumer News.
• Lending Club Review: A Leading Peer To Peer Lending Network by Silicon Valley Blogger, The Digerati Life.

Auto Loans

• Buying A Car? Get Your Financing First by The Smarter Wallet

Credit

• New FICO Credit Scoring System in 2009 by CreditAddict.

Home Loans

• Deciding When to Refinance Your Mortgage by nickel, fivecentnickel.com.

Credit Cards

• A Complete Guide to Credit Card Terminology by CreditShout.
• Continental Finance Mastercard Credit Card Review by Mr.CC, Ask Mr Credit Card’s Blog.
• Bank Cards: Should You Use Them as a Debit or Credit Card? by DJ, The Family Wallet.
• Best Charity Credit Cards by Jim, Blueprint for Financial Prosperity.
• How to Avoid Late Fees on Credit Cards by American Entrepreneurship, American Small Business News.
• Anyone Can Apply For a Business Credit Card by Patrick, Cash Money Life.

Student Loans

• Types of Student Loans in the United States by praveen, My Simple Trading System.

Debt

• 5 Simple Steps To Making Your “Get Out Of Debt” Resolution Stick – Part 3 by Michael Geoffrey, Debt Smackdown.
• How to Tell Your Credit Card Company You Can’t Pay by Credit Card Assist.
• Tips for Negotiating a Credit Card Payoff by Apply4-Credit.
• How to Find the Debt Relief Company That is Right For You by Discover Debt Freedom.
• New Year’s Resolution: Get Out of Debt For Good by Debt Free Destiny.
• Make Your Own Debt Reduction Plan by Destroy Debt.
• Pay Off Debt Or Invest Your Money? by William Blake, Debt Smackdown.

That’s it for this issue of the carnival. Stop by next month for the sixth edition. Interested in participating? Read the submission and hosting guidelines. Did you submit but not see your post? It’s probably because the article wasn’t specifically about credit or debt. We try to include all posts as long as they are on topic. Thanks!

The new credit cards rules will stop credit card companies from using several practices that punished customers relentlessly for the smallest mistakes.

Your interest rate can’t go up just because you pay a day late
Credit card companies will no longer be able to increase your interest rates just because you’re a day or two late…you’ll need to be at least 30 days late before they can assess a fee. They will also no longer be able to increase your interest rates just because you are late on another credit account. And, they will need to provide you with a statement at least 21 days ahead of the due date, so you’ll have plenty of time to make a timely payment.

Your payment won’t be applied to low APR balances first
Next up in the new credit card rules is how credit card companies assess interest rates. Credit cards are famous for applying your payments to balances with the lowest interest rates first, meaning if you transfer a balance at 0% and then charge an item at 18%—you’ll be paying 18% on that purchase every month until your transferred balance is paid off. The Fed said no more. Although that sounds like good news (and it is), there is a downside: Credit card companies will likely do away with 0% balance transfer offers. If you can, get one now!

No more outrageous fees on bad-credit credit cards
Finally, the Fed also imposed a new rule that limits initial set-up fees a credit card charges to half the available credit limit. (A common practice for credit cards available to people with damaged credit is to charge $275 in fees on a $300 credit line). Therefore, in order to use the credit line and begin building credit again, they must first pay down the fees.

While these new credit card rules provide some long overdue help for consumers who have fallen into credit card debt, they come with a cost to those who have overly relied on credit cards to finance their lifestyles—credit card companies may further tighten credit and offer credit cards to only the best qualified borrowers. That in turn, will force a lot of people to ween themselves off of credit cards, perhaps for good.

Be sure to check out the dozens of timely blog posts included in the carnival commenting on everything from what credit cards are doing to customer during these weird economic times to digging out of debt.

High yield savings accounts are bank accounts that you access entirely online (or via an ATM card). The bank can afford to pay you a much higher rate than normal savings accounts because they don’t have to handle in-person transactions, mail statements, or even maintain a branch in your neighborhood.

You simply transfer money into your high yield savings account from an existing checking account, make deposits as often as you like, and sit back and watch your savings grow. When you need to withdraw your funds, you can usually do so at an ATM, or transfer them back to another bank account–a process that simply takes 2-3 business days.

Recently, Kiplinger’s magazine voted FNBO Direct the best online savings account of 2008 for it’s ease of use, great interest rates, and $1 minimum required to open an account.

FNBO, or First National Bank of Omaha, has come onto the online, high yield savings account scene only in the past year, but shows a lot of promise.

Interested in learning more about high yield savings accounts or opening an account? Read these high yield savings account reviews »