Comments on: What the Credit CARD Act Means for You

By: Beharrell

Beharrell — Thu, 08 Apr 2010 20:12:54 +0000

Soooo I have to disagree with the cards making most money off interest. They actually make the most money off transactions. ie: you spend 1 dollar at general store, they make x% off that sale. They are hiking rate because they’re losing money on all the fees they cant charge anymore (over limit fee).

By: Credit Card Processing Houston

Credit Card Processing Houston — Fri, 02 Apr 2010 07:41:03 +0000

Good post! However the credit card companies will figure out ways to tack on all kinds of new fees legally. I’m hearing about non-usage fees etc. Disgusting!

By: Paul

Paul — Fri, 26 Mar 2010 05:34:01 +0000

Thanks for this highly digestible overview of the CARD act and insights into card services! … I’ve had a hard time getting through other materials.

I must say that I recently opened some airline rewards cards to rack up some significant miles, which I intend to use. Otherwise, I usually stick with a cash back rewards card. To me, the primary benefit of using a credit card is that it allows me to track my financial life easily.

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By: Stacy

Stacy — Thu, 25 Mar 2010 20:08:56 +0000

It does feel like we can get locked into credit but as you said, the key is discipline. Lenders can be sneaky, which is why you have to keep your bills in check. For those who receive their bills in the mail, I would recommend online payments. You save paper and you can pay the moment you get the money, rather than waiting for that bill to come.

I don’t know if consumers will learn their lesson but sometimes I take the higher credit card fees and recession as a good lesson in budgeting for those who don’t know how to, already. Many of my clients are learning this lessen and I know it will help them in the future, tremendously.

By: Brandon

Brandon — Thu, 11 Mar 2010 16:51:38 +0000

Oh! This is awesome! Thanks for countering severalsome
misconceptions I have heard on this recently.

By: Otto

Otto — Wed, 10 Mar 2010 18:57:19 +0000

Actually, you got one thing wrong.

If you pay in full consistently, the card issuer is more likely to reward you by RAISING your credit limit. Probably by a lot, and probably quickly.

This is because they want you to spend more than you can afford to pay off each month, thus gaining them interest.

See, if they cancel your account or lower your limit, then they make no money off you. If they raise your limit, then they might still make no money off you, or you might take the bait and spend too much one month.

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By: Cody123

Cody123 — Wed, 10 Mar 2010 18:09:36 +0000

I have a Visa Rewards card through a Credit Union. I keep it paid off so i don’t have to pay interess on it. I had 36,000 points saved up and was trying to save up 50,000 points so i can order the Bose Wave machine.

While doing my taxes this year I got sidetracked and decided to look at my old credit card bills online. I was shocked when i realized my Reward Points were expiring. Since October 2009, I was loosing 700 to 1000 points every month!

It was so outragious that there was no notification at all. I quickly cashed out and ordered a bunch of gift certificats.

You gotta be careful when it comes to dealing with credit card companys!

By: Matthew Amster-Burton

Matthew Amster-Burton — Wed, 10 Mar 2010 18:00:44 +0000

Oh, and Nancy, I agree with you, but I think this is a decision you can make for yourself; you don’t have to wait for society to catch up.

By: Matthew Amster-Burton

Matthew Amster-Burton — Wed, 10 Mar 2010 17:57:53 +0000

Not at all, Briggs–you absolutely should pay in full every month. But you shouldn’t be surprised if a big bank retaliates against you for doing so.

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By: The Truth

The Truth — Wed, 10 Mar 2010 17:23:30 +0000

The sorry part about all of this is the the CC companies have already rolled out these interest rate hikes before the new law went into effect. Thank you for making my decision easy, CapitalOne.