Lawmakers and consumers across the country cheered the adoption of the Credit Cardholders Bill of Rights and other credit card regulations that would seek to end unfair practices on the part of credit card companies. However, several concerned cardholders have now raised the concern that the bill has only forced credit card companies to extract money from customers in trickier ways.
For example, the credit regulations prevent credit card companies from charging a fee if you go over your credit limit. However, credit card companies can still increase interest rates on transactions with a penalty rate due to a late payment, …read more

When you you receive your credit card statement every month, do you actually read it? If so, do you you know what to look for? Money Management International (MMI) wants to help you understand the fine print included in most credit card statements. They claim that reviewing your statement doesn’t have to be a daunting task. In fact, if you know what you’re looking for, it could be a simple task that takes less than two minutes.
Here are the three steps MMI suggests to help you navigate your credit card statement:
Step 1 – Look for the account summary.
If you have …read more

According to a recent report, the delinquency rate on credit cards jumped more than 10% in the first quarter of 2009 when compared to the first quarter of 2008. The report, which was conducted by TransUnion, defines delinquency as credit cards that have had no payments for three or more months.
In 2008, the delinquency rate was around 1.2%. In 2009, that number jumped to more than 1.3%.
Well some industry observers were hoping for a decline on delinquency rates, this news doesn’t come to the surprise of most experts. With the national economic downturn yet to heal, consumers are struggling to …read more

President Obama signed a credit card reform law that would protect cardholders from retroactive rate hikes and other less-than-scrupulous tactics, but this law does not apply to small business cardholders. This means that small business owners who rely on even a single credit card account will still be subject to the same tactics that the law aimed to limit.
 
The Credit Card Accountability Responsibility & Disclosure Act takes effect in February but it will only protect private cardholders. About 11 percent of all credit card purchases are made by small business credit cards, a number that has been on the rise …read more

Lending standards remain tight at many banks.

Are you taking responsibility for your credit card debt?

One of the best things you can do for yourself is to get out of debt. But, since it’s financial literacy month, I think it’s also worth understanding how debt works. That’s why I found The Complete Idiot’s Guide to Getting Out of Debt so helpful.
Written by Ken Clark, a Certified Financial Planner, Getting Out of Debt offers real world information and help with debt. Using easy-to-understand, real world language — and drawing on personal experiences with debt — Clark takes the reader on an informative journey through the world of debt. The book tackles such concepts as where debt …read more

One of the more interesting things that people are finding out as credit card issuers start closing accounts of those who are responsible with their credit is that issuers don’t actually want you to pay off your balance every month and use your card only occasionally. I was asked about this recently:
“I don’t understand why credit card companies care,” a friend said. “Don’t they get money on each transaction? Even if I pay off my credit card every month, or use it only occasionally, aren’t they making money even if I don’t pay interest?”
My friend has been caught in the …read more

Over at Contract Worker, Rico asks if freelancers should use credit cards. He tells a story on himself about how easy it is to spend more than planned with a credit card.
My hunch is no one should use credit cards unless they are independently wealthy, and even then, only if they pay them off each and every month. The fees and interest are outrageous. Whatever happened to usury laws? Thirty percent? With penalties if I’m late? That’s 30 cents on every dollar… no way, not for me.
It always seems worthwhile to actually look at how long it will take you …read more