Credit Cards
recommended by
our experts

Get Cards
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 Rules

Monday, December 10, 2007

In the light of the recent Senate hearings on credit card rates, it looks like credit issuers are on the way of changing credit card rules and regulations in favor of customers. For years, credit card providers have conducted their policies to cardholders. Present days, the situation has taken another turn. Increasingly, lenders start to waive some confusing credit practices that led so many people to various financial difficulties. However, we must accept the fact that lenders have done this under the pressure of discontented users and lawmakers.

There are a lot of consumers who take a dim view of credit card deals. They are afraid to fall into debts, to become a victim of various credit card traps, not to mention fraudulent activities that may lead to certain financial difficulties. To a certain extent, they are right and plastics may become a reason of financial disasters.

Still, the guilt of lenders in all your misfortunes is arguable, until this lender uses some practices that lead to hefty interest rates. The thing is, many consumers have been hit with unfair increases in their credit cards' interest rates. And legislation was necessary to settle this situation in case some creditors do not do this voluntary.

Take for example, Bonnie Rushing's story, whose interest rates almost tripled because of a credit score drop. The most striking fact is that all cardholders who faced the increase on their best credit cards were quite diligent credit users and paid their balance in full every month.

The problem is that credit card issuers use the information in your credit report as an indicator of your creditworthiness. It's quite fair when one applies for a plastic and a creditor should estimate the risk. But it's rather embarrassing, when you use your plastic and astronomic credit card rates come out of the blue.

Actually, credit users just ask for some basic facts, for clear and transparent rules. Meaning, one should be aware of all the practices before making credit card deal. While some lending organizations have never used unfair credit practices like universal default, the others tend to use them, and reap big profits from it.

Credit card companies on the other side of this heated discussion, argue that without this ability to raise interest rates in accordance with credit score changes, they will have to find other ways to offset the losses. In other words, if they don't raise interest rates of those whose credit score drops, they will have to raise credit cards rates on all consumers, or set credit card restrictions for some credit applicants.

December is a month when customers rush into the malls. Advertisers and merchants urge shoppers to spend more, and if one shops with a plastic, there's a danger that individuals can ruin their financial well-being.

All in all, this legislation is a crucial point in the trends of credit card industry. We may expect better credit card deals with transparent and clear rules, or we may face higher interest rates in spite of our current credit score.

Share Opinion:
del.icio.us   digg   Furl   YahooMyWeb   Propeller   Reddit  
Comments not found
 

If you have something to say, please leave your comments below.

Your Name: *
Your Email:
Your Comment: *
Enter Number from Picture: * number

* - Required Fields Add Comment
[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!

Comments (0)
[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.

Comments (0)
[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.

Comments (0)
* The CreditCardSpecialist.com webpage is a free service and an information resource for credit cards and financial products and services available to eligible United States consumers. CreditCardSpecialist.com does not offer any warranties and is not a direct service. There are no guarantees for approval or offers when applying for a credit card. Please refer to the application if you would like more information on each credit card. When you click "Apply" for a particular credit card, please take the time to review the terms and conditions of the product/service at the issuer's website. All logos on the CreditCardSpecialist.com website are property of their respective owners.
We do our best to maintain the information accurate at CreditCardSpecialist.com. However, all the credit cards information is subject to change and presented without warranty. See the up to date credit card terms and conditions on the secured credit card application page. Note that CreditCardSpecialist.com may be compensated by credit card issuers when visitors apply for a credit card through the links on this website.
CreditCardSpecialist.com, an independent, advertising-supported website, receives compensation from the companies whose offers appear on the site. This compensation impacts where and how credit products appear on our site, including, for example, the product listing order in which they may appear on separate pages. CreditCardSpecialist.com does not present or review all available credit or financial offers.
Disclosure: Not an access card.