Credit and Debt Blog
A Service of Debtors Unite, Inc.
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The Senate is reexamining some of the common practices of credit card issuers. One item that is being scrutinized is the credit card rate increases resulting from reviews of your credit report.
Credit card issuers cite the need to balance increased risk with higher interest. They check your credit regularly to look for signs of financial weakness. Did you know that your rate could increase even if you never missed a payment? (more…)
Citigroup announced in April that it would eliminate 17,000 jobs. Now it appears there may be up to 45,000 additional job cuts.
The reductions are planned to offset the billions of dollars in subprime lending losses. What does this mean for cardholders? (more…)
Chase Card Services announced that it will cease to penalize cardholders that made a late payment on other credit cards. Chase will no longer raise interest rates based on a review of a customer’s credit report. Their clear and simple program begins in March 2008.
What is universal default? Who else is ending universal default? Here are the answers, and a sign of the newest trend about to hit the credit card industry. (more…)
Discover and Experian recently announced a new arrangement that would provide Discover cardholders with a consumer credit score product. Known as Credit ScoreTracker, the service could allow Discover cardmembers understand how their credit usage affects their credit score.
This tool comes at a substantial cost though. At $7.99 per month at the time of this press release, this represents another fee that can make repayment difficult. A cardholder paying $7.99 per month, plus .85% monthly for credit protection could have a much tougher time paying down their principal balance. (more…)
If you have ever pulled your credit report, you may have noticed inquiries that show up as “AR” or Account Review. Don’t worry–these don’t count against you as hard pulls.
So what are Account Review inquiries? In short, these are attempts by your creditors to invoke the universal default clause in your card holder agreement. (more…)
For years, most major credit card issuers offered only one type of credit card product platform. This was either Visa or MasterCard. Discover offered its own platform as did American Express.
Under pressure to reveal potentially damaging information about possible exclusivity arrangements and other anticompetitive practices, Visa has decided to avoid a trial altogether and settle with American Express. This settlement is expected to approach $2.25 billion. (more…)
Some of the most atrocious credit card fees are becoming more widespread. A new breed of credit cards has entered the marketplace, and the fees on these predatory products can easily wipe out most of the credit limit. Worse more, these leave vulnerable consumers strapped with additional debt and on a track for further credit damage.
Imaging getting $200 a year in credit card fees in addition to any traditional late or over-the-limit fees. Think a credit card cannot charge you for a credit limit increase? It is happening! (more…)
Credit card issuers have been more than happy to take advantage of the subprime mortgage debacle. They know that distressed homeowners will often run up credit card balances rather than fall behind on a mortgage payment. As many of the adjustable rate mortgages reset their fees, many homeowners tried to keep up by charging living expenses on credit cards.
Up to now, some credit card issuers have profited handsomely from the increased credit card use. The question is, how long can credit cards absorb the further eroding of consumer finances? There are signs that the credit card industry is set for a big hit. (more…)
Maybe you thought that your financial shortfall would be temporary. Perhaps it was. What many people find is that being maxed out presents a new list of challenges.
We evaluated the situations of hundreds of clients to list the most common challenges being faced once a family finds themselves maxed out. These are the results of our review. (more…)
Late fees on credit cards have increased steadily throughout the past ten years. Most credit card issuers have begun raising their late fees to as high as $39. If you have been late on your first credit card payment, then there are ways to get around it.
Did you know that most major credit card issuers will forgive a late payment? Here are four reasons why you should contact your credit card issuer when you make a late payment. (more…)
