Posted on October - 31 - 2009
The statistics have finally caught up with the anecdotal reports from millions of cardholders: credit card companies have been cutting back on credit limits like never before. According to FICO, formerly Fair Isaac Corp., about 58 million consumers saw their credit limits cut from April 2008 to April 2009, about one third of all cardholders.
The numbers bear out industry predictions that the credit card industry would be scaling back as much as $2 trillion in credit lines thru the middle of 2010. In a statement to Reuters, banking analyst Meredith Whitney at the end of 2008 predicted that credit card lines would decline as much as 45 percent from the end of 2008 to the middle of 2010.
Just as interesting as the sheer number of consumers who saw their credit limits cut was who were targeted.
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Posted on October - 31 - 2009
Financial Mail personal finance editor Jeff Prestridge examines what it could mean for regular users of credit cards, especially those who struggle to clear their debts.
Why is the Government getting tough on credit card issuers?
It believes that too many consumers are being encouraged to build credit card debt. And once in debt, many card issuers make it difficult for these borrowers to get out of it by heaping extra charges on them.
They are also encouraging customers to accumulate debt by allowing them to pay off a minuscule amount of their outstanding balance every month. In some instances, indebted consumers are offered higher spending limits even though logic says this is the last thing they need.
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Posted on October - 31 - 2009
As companies find new ways to attract and keep customers, it seems essential that they improve their current products or offer new ones to get the competitive edge. Although many people probably do not think about it, the same can be said when it comes to credit cards as well. As we have already seen new products hit the market to help cardholders better control their finances, it now seems that retailers are getting into the mix looking to give their cardholders more value for their bucks.
Very soon new Sears’ credit cardholders can look for a little something extra that they probably have never received in the past from anywhere else. T
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Posted on October - 29 - 2009
I was on the phone with my cousin who was ranting about this law that will take effect in February 2010. See, my cousin just started attending university away from home and she was excited to finally be able to apply for her student credit card. The excitement faded, however, when she heard about the Credit CARD Act of 2009. Although this law will make college people less vulnerable to fraud and bad credit score, this will also make it harder for those who wish to have a student credit card to acquire one.
This new law sounds like bad news to students. Come February, my cousin who is under 21 years of age will need to have a co-signatory older than twenty-one, because she has no income.
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