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
The content is accurate at the time of publication and is subject to change.

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:

Capital One Partnering Up with Airlines

Posted: November 16, 2018

Starting in December Capital One is partnering with a dozen airlines so their cardholders can transfer their miles and book flights. The new transfer benefit will be available to people with the Capital One Venture One, Spark Miles and ... Continue reading
Getting Quadruple Points with the New Business Gold Card by American Express

Posted: November 12, 2018

American Express is rolling out a new credit card for small businesses, offering quadruple reward points on the two categories in which they spend the most during the month. There are six categories they can earn these enhanced rewards in, ... Continue reading
Now Cardholders can use Ultimate Rewards for Apple Products

Posted: November 9, 2018

Chase credit card holders can now use their rewards to buy Apple products via the new Apple Ultimate Rewards Store. When shopping in the new store people with a Chase Sapphire, Freedom and Ink credit card can use their reward points to pay ... 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!