ADVERTISING DISCLOSURE: is an independent, advertising-supported web site. 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. has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » News » Other » Recent Federal Reserve Survey Reveals Majority of Card Issuers Have Hiked Credit Card Fees

Recent Federal Reserve Survey Reveals Majority of Card Issuers Have Hiked Credit Card Fees

January 29, 2010 | Updated on January 29, 2010
Add to Favorites:
The content is accurate at the time of publication and is subject to change.

A recent survey conducted by the Federal Reserve revealed that a significant percentage of credit card companies and firms have slashed credit limits or ceilings, raised interest rates, and increased minimum credit scores needed to qualify for a credit card during the past 90 days.

Loan officers who were interviewed in this survey disclosed that 75% of credit card companies showed disinterest in complying with the Credit CARD Act not until its implementation in February 2010. This further implies that card issuers would use the time left before February 2010, to exploit their privileges in imposing and dictating card fees and charges.

A quarterly survey initiated by the Federal Reserve was conducted in October of this year and interviewed loan officers from 23 foreign banks with offices in the US, and 57 domestic banks.

Loan officers who were surveyed were asked of their opinion about the Credit CARD Act and its impact and implications to the credit card industry. The following are some of the results of the survey:

Annual percentage rate or annual fees - A good forty percent of card companies included in the study have plans to increase or have already increased annual fees of credit cardholders.

Approval policies - Almost 50% of loan officers interviewed stated that they have increased or are planning to increase the minimum credit score needed to qualify prime customers for card approval. On the other hand, 53% of card companies included in this study said that they have raised or are planning to raise the minimum credit score needed by subprime clients for card approval. Overall, it is now much harder to qualify for a credit card or to get a card approval than before.

Interest rate charges - Close to 75% of banks have raised or are planning to raise annual percentage rates for subprime clients or customers that have poor credit. On the other hand, 54% of banks included in this survey are planning to raise or have already raised annual percentage rates for prime customers or clients with good credit.

Credit ceiling or limit - Around 50% of banks interviewed have slashed or are planning to cut card ceilings or limits.

The statistics show that majority of card issuers have been making significant adjustment to credit card limits, rates, as well as fees. A lot of card holders lately have been getting notices of interest rate hikes and credit limit cuts. Credit card issuers are making full use of the time they have left to exercise their right to implement fees and charges.

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:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
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!