Bad Credit Blues

 Will Obama’s New Credit Reform Bill Change Much?

Well most of us are pretty sick of paying our bills only to have our credit limits dropped while our interest rates are raised. It seems that once we sign up with a credit card company, they pretty much have the right to treat us as badly as they want to treat us. And we may have changed companies in order to let the market speak, but it seems like those great offers evaporate in a few months, and we are no better off.

Well, we are all hopeful about the new credit card bill. Hopefully, it will help consumers, but it will also put the breaks on rampart consumer misuse of credit which, as we know, caused part of the problem.

• Young consumers, from 18 to 21, will need a parent, guardian, or over 21 spouse to cosign in order to get a credit card. Exceptions can be made if the younger person can prove they have enough income to pay their credit card bills. This may seem unfair, since 18 year olds can still go to war, but frankly, younger credit card holders are one of the problems. This also keeps the credit card companies from targetting younger people, and weighing them down with debt, before they are old enough to be wise in the ways of the man.
• Interest rates cannot be raised without warning.
• No penalties for credit card holders who pay on time.
• No excessive fees. Ever been late on your bill and gotten hit with the double whammy? Yeah, that’s what we are talking about here.

In my opinion, if credit card companies complain they cannot stay in profit without duping young people or using any excuse to charge fees, they should consider how they issue credit cards in the first place. A lot of this just makes good sense.

Look for 0% credit card balance transfers.