Report shows credit cardholders shunning their cards... - Other News

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » News » Other » Report shows credit cardholders shunning their cards due to enactment of new law

Report shows credit cardholders shunning their cards due to enactment of new law

Report shows credit cardholders shunning their cards due to enactment of new law

Nancy Brown, 32 years old, has decided to reject the use of her credit cards with the new CARD Act in place. She says that she does not want to be indebted anymore the way she had been three years ago. She said that after years of using credit cards, it may be the best time to pay all of her remaining balance and have her account closed. This is where she says things can be better managed away from added fees and increased interest rates.


Brown recognizes that the price of getting a credit card is too high as opposed to the benefits we think even with the supposed protection of the new CARD Act.


Data from the credit research agency Credit Rise reveals that 45 percent of all credit cardholders surveyed are now considering closing their accounts. Credit Rise is quick to point out that this is a move consumers make to preclude any increases in debt.


The agency linked the consumer`s rejection of credit cards to the higher charges and lower initial credit limits. Credit Rise further adds by saying that among those who consider shunning their credit cards, an overwhelming majority has had an experience, in one way or another, of terrible debt consequences. These were due to the new fees introduced to the already existing account charges and the interest rate increases.


Credit Rise stressed that the decision of consumers to rid themselves of their cards was mostly dependent on how they have mismanaged their accounts in the past, with those in trouble more likely to cancel their accounts. The agency said that with the credit amount granted to consumers in the past slashed by half; those who plan to also open their credit card accounts are now being discouraged. The new applicants find the reduction significant enough to reject the idea of opening their credit card accounts.


Credit Rise also says that new applicants are fed up with the lending standards of most of US banks. After the recession, the banks are out to regain lost investments. With the new CARD Act possibly reducing profit for banks, they are out to regain the same in other credit aspects.


BestCards chief executive Louie Barren, on the other hand says, that those who consider closing their accounts may need to examine alternatives like balance transfer; opting for other types of cards should they still find possession of a credit card necessary.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:

Related News:

New American Express Centurion Lounge Coming to JFK International Airport

Posted: January 19, 2018

Travelers passing through JFK International Airport will be able to get some rest and relaxation at the new American Express Centurion lounge slated to open in early 2019. The new lounge will be located at Terminal 4, which is one of the ... Continue reading
Biometric Credit Card by Visa

Posted: January 18, 2018

Biometrics are here, and Visa has announced a new pilot program with Mountain America Credit Union and Bank of Cyprus offering customers at those banks the chance to try out a new EMV dual-interface payment card. This card has a chip and ... Continue reading
Financial Wellness Benefits For 2018

Posted: January 17, 2018

While the New Year's holiday has come and gone, financial resolutions are still on the minds of many. January is slated as Financial Wellness Month, and Purchasing Power, a benefits company, has made some predictions about financial ... Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
We'll match all the Miles you've earned at the end of your first year. For example, if you earn 30,000 Miles, you get 60,000 Miles.
For Excellent, Good Credit
Earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com, or wholesale clubs up to the quarterly maximum each time you activate.
For Excellent, Good Credit
Our application is quick and easy with instant pre-qualification available
For Fair / Good Credit