Rates Going Up For Good Credit Card Holders

It seems that the credit card crisis is hitting good credit card holders as well as bad ones. In fact, those who have done their best to maintain an excellent credit record may find it much more difficult to accept that they are being targeted by credit companies.

Interest rate increases has become widespread among credit card holders nowadays. Card holders who haven’t kept up with their monthly credit card bill payments are natural targets for interest rate hikes. However, what’s harder to explain is why these rate hikes are also being applied to credit card holders who are in good standing in terms of their credit payments.

Interest rate hikes are not the only major changes that credit card companies are implementing either. Credit card companies are also raising fees on credit transactions and even adding more fees. Available credit has also been cut down drastically and many credit card companies are practicing what is commonly known as “balance chasing”. This is when the credit company continually cuts down the available credit of a card holder to a level just above his or her balance. Of course, they are doing this only to those who maintain a balance in their cards. For those who don’t, credit card companies simply slash their available credit to much lower levels.

These practices of credit card companies seem unfair but, unfortunately they are completely legal, at least until next year when the credit card bill comes into play. In fact, a lot of the changes that credit companies are making can be seen as their preparatory moves to meet the credit card bill head on while still maintaining their profit margins. The fact that good creditors are getting hurt by these changes are apparently immaterial to credit companies.

In fact, credit card rate hikes, increasing fees and decreasing credits are not the most controversial move that credit card companies are putting on their good creditors. Many creditors are basically closing down the credit cards of good creditors. Many credit card holders who have stellar credit card balance payment records and high credit scores are finding out that their credit companies have closed down their credit cards. When asked, credit card companies give vague answers and, in the end there is nothing that a credit card holder can do about it.

At least until the credit card bill becomes active, credit card holders will have to put up with what credit card companies are doing if they want to keep their credit cards. Once the bill becomes active, credit card holders can expect some changes for the better. However, credit card companies are already seeing loopholes in the bill and those “changes for the better” may not be as good as card holders expect.