Tougher Credit Cards

I'm not a person who would find herself getting an actual credit card. Too much fine print. So, I when I came across this article, it didn't surprise me. Though it is something I find well worth informing others about. Many people are having to close their credit cards. Or so I hear. One being a family member if mine.

In the last seven months of 2009 interest rates on many credit cards went up, added new fees, and cut credit lines. Not to mention the countless accounts that were closed. You may remember the law that President Obama signed last may. Just in February of this year the effects can be felt. It is now harder to get a credit card. Additionally, it's now more expensive. Why? Wasn't the law signed meant to shield those with cards from hikes in interest rates, surplus fees, and other fine line details that card companies used to push up profits? Yes. In total consumers can save $10 billion/year according to Pew Charitable Trust. This didn't mean that the card companies used their nine months to prepare wisely. They hurt those who were to receive help. The recession doesn't help.

Of the 12 top card companies in 2007, $12 billion was earned. A year later their profits fell sixty-five percent. Unemployment was high.

Currently I could not find 2009 profit figures. It's unquestionable that $35 billion was written off by banks in 2009 with unemployment at ten percent.

Legislations moves include resurrecting annual fees, creating new fees while raising old ones and interest rates as well.

Banks then cut off cards rarely used. Including ones linked to rewards programs. Card companies brought down credit limits on accounts still active. Forty percent of banks did the same. One trillion dollars was eliminated from credit lines.

Regions affected by the housing crisis and unemployment (i.e. Florida and California) cut credit lines on frequent occurrence.

Those who will be unable to get a card for the next few years will have to resort to options such as PayPal and other pre-paid cards. The same can be said for college students and people under the age of 21. You can only get one if it's obvious you can repay or have a co-signer.

So, plan to get a card when the economy recovers (when will that be anyway?) and when you can carry a stable balance every month and pay your bills on time. I'm not one of those people and neither is my husband. We try our best. I hope you are listening to me this time.

So, what are your stories of the recent credit card issue?