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Credit Card eZine - News and Articles about Credit Cards

Credit Card eZine - News and Articles about Credit Cards

Get even more information on credit cards? Read our Credit Card eZine. The section is regularly updated by our specialists. Learn all the financial tricks. Know the pitfalls and hidden bonuses. Find out how to transfer balances and accumulate points. We will tell you about the latest offers on the market.Get your credit card education and make the most out of your plastic.

Credit Card Crunch

Tuesday, September 11, 2007

Credit is an integral part of the U.S. economy. Making costly purchases like real estate and autos, we contribute to the development of these industries. When it becomes problematic to receive these goods, customers and businesses react at once, i.e. the number of investments and expenditures declines. The results for the economy can be disastrous. According to the Federal Reserve report, a credit crunch in real estate market is topping out. On conservative estimate the crisis will not go out of housing market limits. Analysts have opposite views to the problem concerning credit card deals. The question is: How will credit crunch influence credit card users?

Credit problems started with "subprime" mortgages. Unfortunately, they keep on expanding to solvent clients as well. Housing market slumped last year and it had certain consequences. First of all, credit card companies decided to tighten the standards in order to protect themselves from frequent delinquencies. According to Equifax analysis, they jumped up to 5% in the past year.

Be careful about credit card changes. You may not even notice them, they are very insidious. But specialists acclaimed they are of great importance. Many credit card issuers cut the length of introductory period. Pessimistic estimates among specialists are not rare. Some of them assume even the worst scenario with no introductory period at all.

Another troublesome item is that credit limits can be shortened. It means that the average limit of $6,000 is cut to $5,000. The hardest terms will be for subprime card owners. Their credit limit will be no more than a few hundred dollars. Besides, credit card companies become exacting. A couple of years ago the credit card approval rating was 50-60%. Now it's only 35%. It means that your credit score must be no less than 690 or 700.

Credit companies are raising interest rates and fees. It is a nasty shock for credit card owners. Some of them experienced the changes, and it caused the burst of indignation. To avoid such troubles in future, follow simple rules. For example, observe your credit-card mailings. In case your credit line is lowered, you will get a letter from your credit card company. Try to be on the safe side, i.e. stay within reasonable limits. If your credit line is cut, you will escape default pricing pitfalls. This way you'll be prepared for the changes and they won't hit your wallet.

Let's assume you forget or ignore this fact, and you exceed the credit line that was lowered by your credit card issuer. In this case you face penalty pricing. It means your interest rates can be boost up to 30 percent. Again, they should inform you about it. You will get a letter within 15 days. You may simply opt out the interest rate hike. Keep in mind you should do it in writing. Generally speaking it means you are supposed to give up the card.

To cut it short, try to be more attentive to the terms and conditions of your credit card company. Bear in mind they are changeable and they are not tricks of your company. Monitor these changes and don't get into trouble.

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[December 05, 2011]

In a time when banks have begun charging monthly debit fees, baby boomers may be able to find discounts based on their age and experience. Our research reveals some of the best checking accounts for consumers over 50 - and the best part is that they`re free!

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[October 12, 2011]

All data shows that the woman entrepreneur is on the rise.This could be because women tend to work well in groups and are great multi-taskers and communicators. In addition to that, women are also making riskier decisions when it comes to financing their businesses, according to a recent survey by PNC Financial Services. These decisions may have an impact on the longevity of these female-run businesses.

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[September 07, 2011]

With the economic upheaval, obtaining a credit card seems a distant dream, especially if you fail to qualify for any credit card application. Nonetheless, turning into an authorized user, i.e. attaching yourself with a good-quality credit customer`s account and the consent to use it, would boost your credit scores swiftly, and jump start your credit history.

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