Comments on: New Credit Card Rules and Regulations – The Good and The Bad http://www.moneybluebook.com/new-credit-card-rules-and-regulations-the-good-and-the-bad/ Personal Finance Beyond Credit Cards and Balance Transfers Wed, 08 Sep 2010 20:57:25 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Ed MUNSTER http://www.moneybluebook.com/new-credit-card-rules-and-regulations-the-good-and-the-bad/comment-page-1/#comment-171049 Ed MUNSTER Wed, 28 Apr 2010 20:50:55 +0000 http://www.moneybluebook.com/?p=3311#comment-171049 Despite how creditworthy folks feel , It is a fact the majority of Americans like myself find themselves in a financial terror due to the lagged economy. Poor credit or financial troubles are not always from spending stupidity and consumerism negligence. There are numerous causes that contribute to the burden of credit and financial troubles, death divorce, job loss and company closures or downsizing. If consumers or myself had the ability to pay off their credit card balances in full each month then we would just pay for all services and materials in cash. We all know that with today's economy this is impossible. Some jobs require you have good credit, but what about if you had no credit, would you get the job? Get the point. Credit seems to be weaved internally in our lives, want it or not, unless I want to live in cardboard box, for these reasons credit companies cannot and should not take advantage of our financial burdens. Too bad for those who claim that all the the new changes are likely to rain on their parade and spell the end to the credit card party but I think that it is about time someone stood up to the credit bullying companies get away with. The causes the new laws and regulations had to be written out, out ways the benefits from partying or parading I may want to do with my credit companies. Despite how creditworthy folks feel , It is a fact the majority of Americans like myself find themselves in a financial terror due to the lagged economy. Poor credit or financial troubles are not always from spending stupidity and consumerism negligence. There are numerous causes that contribute to the burden of credit and financial troubles, death divorce, job loss and company closures or downsizing. If consumers or myself had the ability to pay off their credit card balances in full each month then we would just pay for all services and materials in cash. We all know that with today’s economy this is impossible. Some jobs require you have good credit, but what about if you had no credit, would you get the job? Get the point. Credit seems to be weaved internally in our lives, want it or not, unless I want to live in cardboard box, for these reasons credit companies cannot and should not take advantage of our financial burdens. Too bad for those who claim that all the the new changes are likely to rain on their parade and spell the end to the credit card party but I think that it is about time someone stood up to the credit bullying companies get away with. The causes the new laws and regulations had to be written out, out ways the benefits from partying or parading I may want to do with my credit companies.

]]> By: Jennifer http://www.moneybluebook.com/new-credit-card-rules-and-regulations-the-good-and-the-bad/comment-page-1/#comment-114265 Jennifer Wed, 02 Dec 2009 18:43:36 +0000 http://www.moneybluebook.com/?p=3311#comment-114265 Raymond- You said it. I bought my home in 2004 with 20% down and a 30-yr fixed and have watched my equity go upside down by $70K because of all the irresponsible borrowers and lenders. I also have taken advantage of 0% balance transfers w/ no fees, but not to earn interest on the money (great idea! I wish I had thought of it before this! oh well...), only to pay for unexpected large purchases such as auto and home repair over 12 months without interest and working it into my monthly budget instead of drawing on savings. This helped my family immensely so I could keep contributing to my retirement and savings accounts, and earning interest on the savings I already have. I just got a notice from Chase yesterday they are raising my 7.99% annual interest rate to 11.24% on my Visa card. At least they haven't instated an annual fee...yet (I currently pay $0). I also have a spotless history with credit and feel punished by these changes. You are not alone. Raymond-

You said it. I bought my home in 2004 with 20% down and a 30-yr fixed and have watched my equity go upside down by $70K because of all the irresponsible borrowers and lenders.

I also have taken advantage of 0% balance transfers w/ no fees, but not to earn interest on the money (great idea! I wish I had thought of it before this! oh well…), only to pay for unexpected large purchases such as auto and home repair over 12 months without interest and working it into my monthly budget instead of drawing on savings. This helped my family immensely so I could keep contributing to my retirement and savings accounts, and earning interest on the savings I already have.

I just got a notice from Chase yesterday they are raising my 7.99% annual interest rate to 11.24% on my Visa card. At least they haven’t instated an annual fee…yet (I currently pay $0). I also have a spotless history with credit and feel punished by these changes. You are not alone.

]]> By: Raymond http://www.moneybluebook.com/new-credit-card-rules-and-regulations-the-good-and-the-bad/comment-page-1/#comment-65173 Raymond Thu, 16 Apr 2009 12:50:49 +0000 http://www.moneybluebook.com/?p=3311#comment-65173 Awdrifter, You make a very good point about the very real fact that most people do not take advantage of 0% balance transfer credit cards in the arbitrage seeking way that I do. However, I myself have struggled with credit card debt before and greatly appreciated the existence of such offers available to me at the time. They have truly bailed me out of difficult financial jams before. If I had to resort to 5-6% APR offers at the time, I don't think I would have been particularly pleased. A 5-6% offer, as low as it may seem, is still forcing the card consumer to become intertwined into the mires of interest accruing credit card debt. A 0% balance transfer card on the other hand allows the card consumer to stay debt free on an interest level. Certainly the zero percent card holder is carrying a credit card balance that must be repaid ultimately, but at 0%, there is substantially less crushing urgency and immediate arm twisting involved. I know I'm probably quite alone on this issue, but I'm glad the new rules aren't being implemented too early. The major credit card issuers need time to adapt and adjust their business and lending practices to compensate for the substantial loss of profits the new rules will cause. It's easy to all gang up on the so-called evil credit card companies and their admittedly shoddy business practices, but I don't think we are fully grasping and realizing the gravity of the potential loss in future consumer credit options when these upcoming restrictive governmental regulations are finally rolled out in 2010. Awdrifter,

You make a very good point about the very real fact that most people do not take advantage of 0% balance transfer credit cards in the arbitrage seeking way that I do. However, I myself have struggled with credit card debt before and greatly appreciated the existence of such offers available to me at the time. They have truly bailed me out of difficult financial jams before. If I had to resort to 5-6% APR offers at the time, I don’t think I would have been particularly pleased. A 5-6% offer, as low as it may seem, is still forcing the card consumer to become intertwined into the mires of interest accruing credit card debt. A 0% balance transfer card on the other hand allows the card consumer to stay debt free on an interest level. Certainly the zero percent card holder is carrying a credit card balance that must be repaid ultimately, but at 0%, there is substantially less crushing urgency and immediate arm twisting involved.

I know I’m probably quite alone on this issue, but I’m glad the new rules aren’t being implemented too early. The major credit card issuers need time to adapt and adjust their business and lending practices to compensate for the substantial loss of profits the new rules will cause. It’s easy to all gang up on the so-called evil credit card companies and their admittedly shoddy business practices, but I don’t think we are fully grasping and realizing the gravity of the potential loss in future consumer credit options when these upcoming restrictive governmental regulations are finally rolled out in 2010.

]]> By: awdrifter http://www.moneybluebook.com/new-credit-card-rules-and-regulations-the-good-and-the-bad/comment-page-1/#comment-65165 awdrifter Thu, 16 Apr 2009 12:00:36 +0000 http://www.moneybluebook.com/?p=3311#comment-65165 I think the new rules are generally good for most consumers. Sure we'll have higher interest rates in general, but it's still better than getting slapped a later charge for arbitrary due date change and other unfair reasons. As for the zero interest offers, most people do not take advantage of the zero percent offers the way that you do (put the money in the bank to earn interest), they just transfer whatever balance they have from another higher interest credit card. So even a lower interest offer (5-6%) will still be attractive. Overall I think these new rules are much needed, and it would've been better if they would've implemented it sooner (like on 1/1/2010 instead of June). I think the new rules are generally good for most consumers. Sure we’ll have higher interest rates in general, but it’s still better than getting slapped a later charge for arbitrary due date change and other unfair reasons. As for the zero interest offers, most people do not take advantage of the zero percent offers the way that you do (put the money in the bank to earn interest), they just transfer whatever balance they have from another higher interest credit card. So even a lower interest offer (5-6%) will still be attractive. Overall I think these new rules are much needed, and it would’ve been better if they would’ve implemented it sooner (like on 1/1/2010 instead of June).

]]> By: Raymond http://www.moneybluebook.com/new-credit-card-rules-and-regulations-the-good-and-the-bad/comment-page-1/#comment-65167 Raymond Fri, 10 Apr 2009 12:35:13 +0000 http://www.moneybluebook.com/?p=3311#comment-65167 On the whole, I think the new federal credit card rules being implemented will benefit consumers greatly. My only concern is in regards to the long term ramifications they will cause to an already fragile credit business industry. The reduced profitability will most certainly cause them to drastically pull back on the available credit card reward and balance transfer offers in the market. Ashley - in your case, if credit card companies were forced to pull back on their offers and start canceling existing active credit card accounts for account holders with less than perfect credit, don't you think this would hurt you even more in the situation you experienced when you lost your job and home? These new restrictive credit card terms may force the major issuers to start canceling cards and leave struggling consumers with less access to credit than they had before. On the whole, I think the new federal credit card rules being implemented will benefit consumers greatly. My only concern is in regards to the long term ramifications they will cause to an already fragile credit business industry. The reduced profitability will most certainly cause them to drastically pull back on the available credit card reward and balance transfer offers in the market.

Ashley – in your case, if credit card companies were forced to pull back on their offers and start canceling existing active credit card accounts for account holders with less than perfect credit, don’t you think this would hurt you even more in the situation you experienced when you lost your job and home? These new restrictive credit card terms may force the major issuers to start canceling cards and leave struggling consumers with less access to credit than they had before.

]]> By: Ashley http://www.moneybluebook.com/new-credit-card-rules-and-regulations-the-good-and-the-bad/comment-page-1/#comment-63747 Ashley Tue, 07 Apr 2009 16:51:44 +0000 http://www.moneybluebook.com/?p=3311#comment-63747 That was very nice how you mapped out how the credit card rules and regulations are going to change, but some of the comments you made were a bit unneccesary. Not too long ago I was just like you, with a credit score over 750, until I lost my job-as a result of this I lost my home, and my credit score went down along with 2 on my credit cards. Some situations are completely out of your hands, and for people who go through what I have, the new grace period, and rules like that will help in a time of distress. Unexpectedly losing your job does not make you unresponsible, some situations are completely out of your hands. That was very nice how you mapped out how the credit card rules and regulations are going to change, but some of the comments you made were a bit unneccesary. Not too long ago I was just like you, with a credit score over 750, until I lost my job-as a result of this I lost my home, and my credit score went down along with 2 on my credit cards. Some situations are completely out of your hands, and for people who go through what I have, the new grace period, and rules like that will help in a time of distress. Unexpectedly losing your job does not make you unresponsible, some situations are completely out of your hands.

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