Credit reform act may cost more in the long run - 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 » Credit reform act may cost more in the long run

Credit reform act may cost more in the long run

Credit reform act may cost more in the long run
The content is accurate at the time of publication and is subject to change.

With the new reform act signed by President Obama in 2009, financial analysts say that its implications could mean more costs for cardholders from this year on. While the reform act works in favor of the credit account owners by implementing checks and balances mechanisms for credit card issuers, analysts say there is more to this and that consumers still need to be watchful.

Analysts point out that high annual fees were already introduced by the credit card issuers as they comply with the reform act which mandates them to be more transparent in their dealings. The high rates, the analysts say, is a way for the companies to make up for projected profit they can lose with the mandates of the reform act.

Analyst Tim Morgan adds that the reward programs may simply be dissolved in the market, since the benefits on the rewards credit cards cannot be offset by high annual fees. The companies cannot run the risk of doing this since it can be considered another violation in the reform act.

He also stated that now it will be more difficult for people with low income or bad credit history to get credit.

Morgan believes that though consumers may find relief in one way or another with the Credit Reform Act, there should always be considerations for their costs – especially when one plans to maintain credit cards in the long run.

Like any kind of debate, the Credit Car Reform Act has two different conclusions – one that defends it and the other that exposes its loopholes, Morgan remarks.

In conclusion, he offers the reality that there really is nothing in the reform act to protect the cardholders in cases of high interest rates with the variable credit cards.

With the rise of the prime rate, Morgan shares that the interest rates are also expected to increase. This is something that credit card account owners have long been wary of and of course, something they would try to avoid as much as possible.

Morgan finally concludes that with credit card companies continuously exercising their right to limit credit entitlements and impose new or additional fees on accounts under their discretion, the worries by consumers on other types of credit cards not being protected by the Credit Reform Act are still very much grounded.

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:

Get 100,000 Bonus Points with the Radisson Rewards Premier Visa Signature

Posted: December 14, 2018

If you have been thinking about getting the Radisson Rewards Premier Visa Signature credit card, now might be the time to take another look because it now comes with 100,000 bonus points. This is a limited time offer, which is in play from ... Continue reading
Minor League Baseball and Allegiant Airlines Partner Up

Posted: December 13, 2018

Allegiant Airline and Minor League Baseball have inked a deal paving the way for a credit card partnership, one giving fans a credit card that reflects their fandom in terms of rewards whether they are traveling or catching a game. When ... Continue reading
Capital One Partners Up With Airlines

Posted: December 12, 2018

Capital One has partnered up with 14 airlines so that Venture and Spark cardholders can now use miles to pay for their flights. What is the transfer ratio? All of the carriers that have partnered up with Capital One, except for Emirates ... Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com and more up to the quarterly maximum, each time you activate.
For Excellent, Good Credit
INTRO OFFER: Discover will match ALL the Miles you've earned at the end of your first year, automatically. For example, if you earn 30,000 Miles, you get 60,000 Miles. That's $600 towards travel!
For Excellent, Good Credit
Earn 2% cash back on purchases: 1% when you buy plus 1% as you pay
For Excellent, Good Credit
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!