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my only debt is my mortgage and that's fixed at 6%.
I put all of my one business activity on a card that pays cash back. I get enough cash back monthly to pay my mortgage payment. (yes, its used very heavily monthly).. The cash back is more than likely going to be gone due to the change in policy, meaning the change in the law will resort in me losing about $20,000 a year.
Cant say for sure because that card I havent received a letter on, but I'm sure it'll be in the mail..
But what does this have to do with the new restrictions Obama just signed into law? That was my question.
Because before, banks were willing to take a risk on an individual with limited credit limit, give them a no fee card, low interest rate, if they pay on time, increase the line of credit, if they dont, cancel or increase the interest to justify the credit.
Now whats going to happen is that banks will not give credit to individuals without either a yearly fee, or a higher credit score. They are definately not going to give a user low interest rate "teasers" to obtain them as a customer because they cant increase the rates.
This is very harmful to those who are starting out or the poor because banks simply will not take the risk. If they are a bank willing to take the risk, everyone else will have to begin to pay other fees to subsidize a lock of the interest rates..
Credit card companies will now offer a rate that will rake the consumer, start off high because they cant start at a lower rate and then increase it if they are a bad payer.
That being said, Obama is the one who pushed through legislation giving banks the ONLY option of adding on fees, or closing accounts. Banks were more than willing to negotate rates with individuals, my rate went up DUE to Obamas legislation, and there is no negotations, its take it or leave it..
Okay, folks. I swear I am sober. But my mind is doing this.
I asked before what something that happened last year has to do with Obama's recent legislation.
Maybe we're not reading the same article?? I used the link. I already quoted where it said this practice began 6 months ago, right? Now here's more from the same article.
"...since the Federal Reserve announced rule changes designed to curb unfair credit card industry practices last December, the companies have implemented even more onerous practices, raised interest rates more aggressively and increased the number of fees that they can impose on their customers.
I'm just trying to figure out how, if there is a car accident, omeone who arrives on the scene months later can be held responsible for the wreckage.
Okay, folks. I swear I am sober. But my mind is doing this.
I asked before what something that happened last year has to do with Obama's recent legislation.
Maybe we're not reading the same article?? I used the link. I already quoted where it said this practice began 6 months ago, right? Now here's more from the same article.
"...since the Federal Reserve announced rule changes designed to curb unfair credit card industry practices last December, the companies have implemented even more onerous practices, raised interest rates more aggressively and increased the number of fees that they can impose on their customers."
Credit card companies have always raised rates on some of their customers, that part isnt surprising, they should raise rates on some consumers, not doing so is ilresponsible. The problem is that the current changes compound the problem because now banks will be in a mad rush to increase peoples rates and cut fees, or simply close out accounts.
The new legislation gives a bank the choice of living with the initial rate and fees originally established or closing the account in the event of a missed payment, late payment etc. With closure of accounts comes a negative hit on many credit scores. Its very damaging to those who have a hard time establishing credit because what bank will want to offer a lower rate and take a risk on someone knowing the rate will be locked in if the user doesnt pay on time?
Well, I'm responsible with my money....only have one credit card and pay it in full every month....whopping 11%....I have no other credit card debt........no worries....
Same here, I don't have a car note, paid off school loan, and just an AMEX card. I barely use it. I owe no one money. No worries. I dont do credit, I hate borrowing. Ideally I'd love to pay for my next house in cash. A substantial down is available, but ways to go.
Quote:
Originally Posted by pghquest
haha.. your the one that needs to worry the most.. FEES will be going up.. yearly fees to just hold the card..
You have the choice to discard it, if it does not suit you.
Quote:
Originally Posted by thefinalsay
the greedy leeches are the idiots who run up debt thinking they are entitled to stuff on credit. they deserve what they get.
True. Too many irresponsible people trying to live it up....on credit. It was time to stop or slow down. Go back to saving, and paying in cash. Or do without. We became an insatiable, impatient, selfish society. Time to go back to basics. Most things we have we don't need. (Just wants, not needs).
Quote:
Originally Posted by pghquest
I put all of my one business activity on a card that pays cash back. I get enough cash back monthly to pay my mortgage payment. (yes, its used very heavily monthly).. The cash back is more than likely going to be gone due to the change in policy, meaning the change in the law will resort in me losing about $20,000 a year.
Cant say for sure because that card I havent received a letter on, but I'm sure it'll be in the mail..
You'll be ok. As the reps say, things will work themselves out.
Quote:
Originally Posted by doc1
I have three "cash back" cards that I use for everything (and pay in full every month).
If either one want's to start charging me a fee I'll just look elsewhere for a card that wants my business or start using my debit card.
You can't pay for it, don't buy it. You want it, save up for it until you can afford it.
Too many people use cc's as a paycheck. Not President Obama's fault. It's the 'I want it now, I can't live without it, I can't afford' it crowd that feeds the greedy cc companies.
You can't pay for it, don't buy it. You want it, save up for it until you can afford it.
Too many people use cc's as a paycheck. Not President Obama's fault. It's the 'I want it now, I can't live without it, I can't afford' it crowd that feeds the greedy cc companies.
I don't feel sorry for you one bit!
Speak the truth my friend. Well said. When will they ever get it?
Location: I currently exist only in a state of mind. one too complex for geographic location.
4,196 posts, read 5,843,743 times
Reputation: 670
Quote:
Originally Posted by Siouxcia
Credit cards = 'Funny money'
You can't pay for it, don't buy it. You want it, save up for it until you can afford it.
Too many people use cc's as a paycheck. Not President Obama's fault. It's the 'I want it now, I can't live without it, I can't afford' it crowd that feeds the greedy cc companies.
I don't feel sorry for you one bit!
correct me if I am wrong honey, but wasn't bush blamed for nose bleeds?
correct me if I am wrong honey, but wasn't bush blamed for nose bleeds?
I could tell you to stick it but it would just fall out. Probably bush's fault.
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