Credit Legislation Hearings
Top Credit Card News!
Today, credit cards come with all kinds of horns and whistles to allure as many solvent customers as possible. The fact is we are so busy in our everyday life that we simply have no clue that some of our plastics offer generous perks. To apply for a super-great credit card is not enough to maximize your credit card benefits - you should know how to make the most of those credit perks on your plastics. Some of these credit deals have limitations and restrictions, the others should be used at certain merchants only. The big question is - how to maximize credit benefits on your card?
Click here to read more...Let us be honest, for most of us choosing a new credit card is a time-consuming process. A man of indecision is the scene one can hardly find charming. First and foremost, you should determine the type of the card you would like to obtain, then you should choose the best rate. When it comes to interest rates, the amount of the rate is not the only concern of credit cardholders. The difference between variable and fixed interest rates is really significant. Now that the prime rate is extremely low, more and more people prefer obtain variable-rate cards. Let's take a closer look at fixed and variable credit rates and find out how they work.
Click here to read more...Initially, plastics were designed for those customers who seek for more convenience when spending their money. Now that a credit card is a necessity rather than a privilege, cardholders want to see more options on their plastics. Today card companies offer credit products that meet the expectations of various consumer groups - from college students to sports fans and art-lovers. In other words, they allow getting more benefits when making eligible purchases at your favorite merchant. And what about plastics that enable people to save?
Click here to read more...For most cardholders, a solid credit history is the aim they're trying to achieve by working hard on their credit. While some people manage to acquire a good credit rating without any particular efforts, the others suffer badly from their damaged credit history.
Probably, bad credit is not so bad itself. It would be better to say that interest rates and other charges associated with credit are far from ideal. One may have excellent financial habits, but if he or she has never obtained a loan, it may be a big problem for creditors. Bad credit may be a result of financial failures and credit card misuse. No matter what's the reason of your low credit score, the shortcut to low rates is a high credit score. Learn how you can fix it!
Click here to read more...Pros and Cons of the Credit Cardholders' Bill of Rights
Like it or not, credit card industry has certain notorious practices that lead thousands of cardholders to serious problems, including heavy debts, enormous interest charges, not to mention penalty fees, and others. If you have ever experienced that, then you will probably support another reform in credit card industry. The Credit Cardholders' Bill of Rights got its 101 sponsor, meaning that 334 members are still to make their choice. Probably, a great number of consumers would love to see this bill become a law. However, it's still not clear what consequences this bill may have. Though this bill proposes reforms that really matter for consumers, the implications of this credit legislation may be promising, as well as frightening.
Now that US economy is still weak, many consumers rely on their credit cards that allow paying quickly for groceries, gas, and clothes. Moreover, plastics are really helpful for those who have lost their job or people who need immediate medical treatment.
From this point of view, the Credit Cardholders' Bill of Rights is just what the doctor ordered for US consumers who need additional protection from arbitrary interest hikes, and other abusive credit practices.
According to Rep. Carolyn Maloney, D-N.Y., when we sign up a credit card agreement, as consumers we have no power to make decisions. The only party that does dictate credit rules is a card issuer. People deserve more bargaining power when it comes to credit cards, and hopefully, they'll get it.
Now let's have a closer look at the most proposed credit card legislation. First and foremost, it protects cardholders from arbitrary interest rate hikes. It will force creditors to provide 45 days notice of any rate increase. It also bans double-cycle billing, excessive credit fees, like over-the-limit fees. All the more so, this bill requires lenders to mail credit card bills at least 25 days before the due date, compared with 14 days as it's currently required.
Credit card companies oppose this bill, explaining that a cardholder who's unhappy about his/her credit rates can easily cancel the card and go to the other issuer. The American Bankers Association also opposes this legislation, their argument is that this bill may have unintended consequences, as credit companies will not be able to price cardholders in accordance with their risk. In other words, creditors will have to charge everyone more, as they will not be able to estimate customers by risk.
Now it's still too early to speak about possible consequences of this bill, about the winners and losers. However, this bill highlights the issues that do matter for every cardholder. Even if you have an excellent credit history, you are not protected from sky-high interest rates and over-the-limit fees. Now that we face a downturn in the economy, credit cardholders need to be protected from excessive fees and arbitrary interest increases.
I'm all for it!
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