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Administrator
Currently Offline
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Posts: 4786
Join Date: Jul 2007
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The following link goes into more detail. The main point of the story is Obama's attack on the credit card industry. Can't seem to fault him for that.
http://finance.yahoo.com/banking-budgeting/article/106991/Credit- ...
Here are the main points. These are things credit card companies do to consumers. As a credit card user that wants nothing more to ever do with credit cards I thought it was important to post these. Well I'll always keep one for internet purchases and emergencies, but that will be it after I pay them all off.
1.Cutting card holders' credit limits -- even below their balance
Reducing one's limit close to or below the outstanding balance may not only trigger an over-limit fee, it can also hurts the cardholder's credit score. That's because the credit utilization ratio, or the amount of credit used relative to the available limit, determines 30% of your credit score.
2. Raising interest rates, even for the best customers
3. 3. Penalty APRs as high as 32%
Even the most responsible credit card user could get hit with a 30% or higher penalty rate if they pay a day late or exceed their limit by $1. According to the Pew Charitable Trusts survey, 87% of cards allowed such automatic penalty increases, while the median penalty rate was 27.99%.
4. Banks make consumers pay down low-rate balances before high-rate debt
5. Shutting down people's accounts
This can lower your credit score.
6. Cutting back rewards
I don't care about this one myself. Doesn't seem crooked to me. Only things that bother me involve unfairly hurting credit scores or keeping the customer on the hook for the dough longer. The Prez has no right concerning himself on this one.
7. Shrinking grace periods
8. Getting students hooked on debt
For the whole story http://finance.yahoo.com/banking-budgeting/article/106991/Credit- ...
__________________Lucas McCain the Rifleman: A man doesn't run from a fight, Mark...but that doesn't mean you should go running *to* one, either.
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