New Credit Card Rules

[[Syl]]

What the new credit card reforms may mean for you

The Federal Reserve Board will vote Dec. 18 on a sweeping set of credit card regulation reforms. What will the proposed credit card industry rules mean for cardholders?

• Limited interest rate hikes
  No more universal default
  More time to pay monthly bills
  Clearer due dates and times
  Highest interest balances paid first
  Limits on over-the-limit fees
  No more double-cycle billing
  Clearer credit terms
  Subprime credit cards for people with bad credit

Better late than never.

[danlo]

I think everything, including recovery will come better late than never, as long as we can pry Bush away from the auto makers until Obama gets in...

That's smart, I stopped using credit cards 5 years ago and never will again.

[stonemaybe]

And the result? The credit card companies will find other ways to charge - such as annual fees. So everyone will suffer.

[Avatar]

So by changing the rules, they hope to encourage more people to move back to using credit?

(I guess I'm in favour in principle...I've mentioned before that we have new credit regulations here too as of a year or two ago...if nothing else, they're good for protecting the consumer, even if they do make it slightly harder to actually get credit...not a bad thing I think.)

--A

[Vain]

Subprime credit cards for people with bad credit

Will they never learn?

[Plissken]

Read the link - the new terms for sub-prime cards are that they can no longer send out cards pre-loaded with debt.

I haven't had a card in over two decades. Maybe I'll get one for emergencies now. (Ironically, my credit rating is low because I only spend money I've already earned. Maybe if I start buying groceries on a credit card and pay the bill when I get home...)

[Farsailer]

I only keep 2 credit cards, one I use all the time and the other I keep for backup. I now buy practically everything on my credit card. I set up automatic payment of the card balance from my checking account so I never miss a payment or pay interest. I get some benefits from this: when I get the bill, I see at a glance almost everything I've been spending money on during the month; I get frequent flier miles with that card; and trips to the ATM are few and far between. Flew to South Carolina for free last year. There is an annual fee, but I consider it worth it for that benefit alone.

[[Syl]]

I've heard frequent flier miles these days are practically worthless. Clark Howard recommends going for the straight cash back option if available (which I have on my USAA card along with an insanely low APR).

[Fist and Faith]

I probably have more credit card debt than all of you combined. They're just a way for people to live beyond their means, and we pay for it eventually. The companies should be able to do whatever they want. If we don't like it, we don't have to have cards. Just learn to oive with the money you actually have.

[Plissken]

Yeah, but letting them do as they please has left the board slanted in their favor. If I want a loan for a house or car, I first have to use a credit card for a while.

[Avatar]

Subprime credit cards for people with bad credit

Will they never learn?

I had the same thought.

And although Pliss says they're at least not pre-loaded with debt, I still think it just means that much longer, unless they already learned the hard way.

(I have no credit card, and no debt whatsoever...to get my credit rating I just opened a store account, bought one thing, paid it off the next day, and that was good enough to provide a positive rating for renting my place etc. Dunno if it'll be different here when I want a house...better check.)

--A

[Vain]

But I like my new shiny credit card thingy that gives me access to a concierge type person that will find and book all kinds of stuff for me with a simple phone call

And I get free travel insurance and stuff....oh wait...I'm prolly paying for that with fees and stuff...oh well It's shiny - I think I'll keep it

[Fist and Faith]

Yeah, but letting them do as they please has left the board slanted in their favor. If I want a loan for a house or car, I first have to use a credit card for a while.

I'm pretty sure paying utilities, rent, phone, and other bills like that on time can establish a credit history. Combined with a steady job, and a downpayment don't hurt!, won't you be able to get a house or car? I'm not saying, I'm asking.

[Brother Charn]

Apparently, having no credit history is just as damning as having a bad one. And no matter how many other types of payment histories one has, the credit card makes a big impression - I am assuming that it has something to do with the fact that it is one of the only credit history items not secured with collateral, and isn't for a specific utility or physical service?

dw

[wayfriend]

Just learn to oive with the money you actually have.

That's the problem. Our economy is based irrevocably on people spending on credit. If people stopped doing that, we'd have another recession on top of our recession. Hence, the changes, to lure people back into the water.

[Brother Charn]

Big retailers are having big credit problems, because once they achieved a certain critical mass - back when credit flowed like insults at a Friar's club roast - they found out they could make 2-5x the money by becoming creditors and offering branded store cards... this is really coming back to haunt them now, especially when combined with very slow new sales as consumers are in mid freak-out.

dw

[SoulBiter]

Actually there is another trend Im seeing. Because retailers have to give a percentage to the credit card companies when someone uses a debit or credit card, they are starting to charge a sur-charge if you use a credit or debit card rather than cash or check.

Here is the most common sign Im seeing

"In order to keep our prices low for everyone, we will be charging a $1 fee on all sales that use a credit or debit card. In order to avoid this fee please pay by cash or check."

[Brother Charn]

Actually, stores that do that are violating the agreements they have with Visa and MC. They aren't allowed to charge a fee for use, and can be dropped for doing so.

dw

[Ryzel]

And although Pliss says they're at least not pre-loaded with debt,

How does that work? You get a credit card on which you already owe money?

[SoulBiter]

Actually, stores that do that are violating the agreements they have with Visa and MC. They aren't allowed to charge a fee for use, and can be dropped for doing so.

dw

True but from what I have seen on the web on this, Visa and MC are very reluctant to drop anyone for this violation.

Those that were turned in found that they could give a 'discount' of (insert amount here) per sale for those that pay with with cash or check. Which doesnt violate the agreement at all.