It seems that the government may have made an enormous mistake giving credit card companies several months leeway to adapt to the credit card bill. Credit card companies are now doing everything they can to increase profits before they have to deal with the credit card bill. Unfortunately for credit card holders, this means more expensive interest rates and fees and drying up credit.
The credit card bill, signed May this year, is set to become active next year, February. Although some of the...
The credit card bill was drafted for the purpose of protecting consumers from the dangers of overusing their credit which usually results in heavy debt. Case in point: the current credit crunch is a direct effect of the large defaults that credit card holders started to do once the economy tanked and consumers began losing income.
The legislation in the credit card bill will changes some of the fundamental rules on how credit card companies run their business. The primary target is the...
At the moment, seeing your credit card interest rates rise could be the worst possible thing. Unfortunately, this is exactly what is going to happen to millions of credit cardholders. In fact, it has already begun. If you are one of the credit cardholders who carry a balance on your credit card and your current interest rate is below 10%, you may soon see your credit card interest rates jump to double figures.
Major credit card companies American Express, Citibank, HSBC, Capital One and Bank...
One of the most talked about features of the credit card bill is its lack of support for small businesses. Currently, small businesses are suffering gravely from the effects of the economic crisis. They are in even worse straits right now because the exploitative practices of credit card companies that were the bane of private credit cardholders are also theirs.
The worst part is that, while private credit cardholders have something to look forward to a few months from now, when the credit...
The credit card industry has been quite loud in expressing their fears over the negative effects that the passage of the credit card bill will bring. While consumers are hailing the credit card bill as their long awaited relief from oppressive credit industry practices, the credit industry insists that the bill stifle credit availability for consumers instead.
Last week, President Barack Obama presented his plans for establishing a separate agency to monitor and safeguard the rights of...
Amidst all the shouting of credit cardholders over how they are being fleeced by credit card companies, it is sometimes difficult to see that credit card companies themselves are suffering in the current credit card crisis.
Credit cardholders, both good and bad, have a huge effect on how a credit card company flourishes or flounders in the current economy. In the case of bad credit cardholders, the cause and effect are quite obvious to see. Bad credit cardholders cost credit card companies a...
It is no secret that the credit card industry is currently having a hard time keeping their finances afloat. The economic crash and the resulting rapid increase in credit card delinquencies and write offs caught the credit companies highly exposed and, as a result many found themselves in the brink of a financial collapse. A timely bailout from the U.S. government has kept most of the major credit card companies afloat. However, the credit card crisis still remains and, as unemployment...
Continue readingAs the economic crisis continues, more and more American consumers are finding themselves barely able to pay for basic utilities. Mortgages, car loans and student loans are becoming more difficult to pay off as less and less cash is available. Many American consumers are turning to paying off these loans using credit cards and the service is getting even more convenient as it has just gotten online.
Currently, there are a few online companies that are offering credit cardholders the chance...
While the credit card crisis continues, credit cardholders are facing numerous financial challenges ranging from sky high interest rates and fees to credit card limits dropping as fast as they pay their card balances. It seems that, with the profiteering-prohibitive credit card bill looming up for activation, credit card companies are pulling out all stops to generate as much revenue as they can and to cover their exposure to the current financial crisis. So far, this has meant raising interest...
Continue readingAs the economic recession continues, credit cardholders are getting weighed down by credit card debt more and more. Rising interest rates and fees threaten to make it heavier still. However, a curious budding practice among credit card companies may be the answer to credit cardholders' problems.
While credit cardholders are worrying about their individual credit card debts, credit card companies are also in dire straits financially themselves. In March, revolving credit was recorded at a...
When the credit card bill was passed last May 22, credit cardholders in the United States were elated, expecting a slew of changes in credit card industry practices which will benefit them.
While it is true that the credit card bill will put a stop to some of the more predatory practices of the credit card industry, the changes that the credit card bill will bring will actually have both a positive and a negative effect on credit cardholders. What follows is a list of the pros and cons that...
The Credit CARD (Card Accountability, Responsibility and Disclosure Act ) Act is going to be putting a dent on college students plannig to get some financial independence once they start college.
To date, credit card companies have been aggressively marketing their plastic to college students. College students make for great credit cardholders because, one, they are purchase-promiscuous. They are up on the latest trends and, whether it be designer coffee or designer jeans, these trends...