Credit Card Changes On The Way

I was wondering when this was going to happen the rules for the credit cards are getting changed according to CNN today. President Obama has singed a bill on Friday of this week that will make it a lot harder for credit card companies to put unrealistic interest on the credit.

This is going to give working families relief and anyone else that has credit. Apparently it took several years to come up with this bill but it is finally here and we can all breath a little easier now.

Despite strong opposition from the banking sector they where saying that it could put a squeeze on credit cards in America. The credit card policies are going to be taking effect from February 2010, this means that consumers could face hikes in interest rates on their cards and extra charges until then.

The credit companies won't be able to put up interest rates with this new bill unless your credit card payments are 60 days over due then they can put them up. In that case they will restore the previous rates after six months if you pay the minimum payment every month on your bill.

More than 80% of American families have credit of some sort or other and 44% of them families carry a balance on their cards today. Credit card companies have been constantly raising rates since 2008 and these charges have increased on an average to around 13% according to the federal reserve board.

This will mean a major loss for the banking industry as the rules will make it even harder for people under the age of 21 to get a credit card. It will force the banks to drop some of its risky credit card holders. Expect the banks to increase the annual fees on your bank accounts this is one way that they can get some of the money back that their going to loose.

I think people won't rely much on credit cards in the future and they will find another way of funding their expenses each month. I myself had credit cards but there all paid off now, and I don't plan to get anymore in the near future. Instead I think I would be more interested in the 0% interest rates on some goods out there at the moment rather than use a credit card.

Summary: As America comes out of the worse economy I have ever seen people still need help with their credit card debt despite the changes in the new bill.

Copyright (c) 2009 Charles Goldie

Article Source: http://www.contentspool.com

Copyright: Charles Goldie 2009 Charlie is currently living in Vallejo, CA, and he is attending college studying for his associates degree. In his spare time he writes artilces. Charlis also maintains a blog on a regular basis. To See More Articles From Charles Click Here

Please Rate this Article

5 out of 54 out of 53 out of 52 out of 51 out of 5 

Not yet Rated