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New Credit Card Laws!

Regular Contributor

Re: New Credit Card Laws!

I agree with you. I have always driven small cheap on gas cars my honda accord gets 27 mpg and my last car nissan maxima driven until 270000 miles got 25 mpg .. And I agree I would never sign anything that would put me in over my head . People have to be smart and read the fine print and don't buy on Impulse thats what these banks and stores rely on. But some people have no choice but to take those high fee credit cards and they don't deserve to be ripped off while building or rebuilding set limits on those banks and reel in those excessive fees ! The whole system needs an overhaul if you ask me and I hope our new President makes those changes.

Message 31 of 42
Regular Contributor

Re: New Credit Card Laws!

Contact a Credit Union and try and Join then Refinance the loan most car dealers use the fact you have no credit Just to Impose that high interest rate so that dealership makes the most off that deal . I used JFCU for my honda loan and they gave me 4.5% really a good Credit Union to join!  NFCU is also another good one to try.
Message 32 of 42
Valued Contributor

Re: New Credit Card Laws!


Watchmann wrote:

These new laws will be seen as another screw up by the Feds.  What we have here are Federal price controls on credit cards.  Is that what we really want?  To have the Government dictating to the credit industry how much they can charge for a product?  I don't think so.

 

The Fed's new rules will regulate how card issuers price their products and how they can adjust those prices to changing credit conditions. The result, as with all price controls, is likely to be restricted consumer credit at the very moment that the federal government is desperately trying to keep credit markets liquid.  If the banks can't raise prices on the riskiest borrowers, they will either limit to whom they lend or raise rates on everyone -- or both.  So the low FICO people complaining about getting rate jacked will have their problem solved by the industry just cancelling their CL's, and the rest who use credit responsibly will be rewarded by higher interest rates to make up for the cancellation of the problem credit lines. 

 

Our friends in Congress, led by good old Barney Frank, have long wished to implement these sorts of controls.  Now they get their wish.  There were plenty of things that needed adjusting in the CC industry, but this sort of heavy handedness is NOT what was needed.  It is the old law of unintended consequences. It reminds me of the old line from National Lampoon's Vacation, "You think you hate it now, wait till you drive it".

Message Edited by Watchmann on 12-18-2008 11:50 AM

Lending won't get any harder, except for possibly those just starting out. In most cases, a secured card is a better deal than a fee generator.

CC debt is the only debt where the lender can reprice already accrued debt. I'm surprised they made it this long with that capability. They can still reprice future debt at their leisure. They can still CLD to reduce risk. The only thing they don't get to do is force customers near the edge over it without provocation. If the customer hasn't defaulted on the card, then the CC company should not be able to reprice the debt. It's iffy that they should be able to reprice accrued debt in the instance of default, but at least preventing it with regard to non-default is a win for the consumer and for the banks. It will reduce defaults.
Message 33 of 42
Valued Contributor

Re: New Credit Card Laws!


Pappy214 wrote:

I am not complaining about the price of my car, nor am I complaining about my monthly payments, I am complaining about the fact that I can't get a good credit card because of this BS we are in.


Pappy -

 

You steadfastly refuse to understand that you cannot get a good credit card because:

1) You failed to develop your credit, and

2) The credit record that you have built contains negative information.

 

That's it. I has nothing to do with the "BS" we are in. If you want to have good or excellent credit you have to develop it. That takes the inclination to do so and time.You have to learn to crawl before you can walk and to walk before you can run. For whatever reasons in the past you decided not to participate in the credit system and build a credit record for yourself, or at least not one containing much positive information. Now that you are participating in the system good things will come to you, in time, assuming you continue to meet your obligations on time and further build upon the base you are laying.

 

On another, serious note - and this is not an attack: It would be nice if you could participate in/contribute to a thread topic without TJ'ing the topic and making it be all about you. Constantly TJ'ing is really bad form.

Message 34 of 42
Established Contributor

Re: New Credit Card Laws!

Thanks for your input jmbfl... for the record I did not TJ (I assume you mean Topic Jack not Tijuana) this forum. I was simply agreeing with the other poster about how the Auto bailout does not deserve to happen, and how this new law can make it difficult for people in my situation to obtain new CC's.

 

I was putting in my two cents and I added what happened to me to prove my point. It is not like I said "I won't ever buy a Ford" and had no reason to back up why I won't buy one.

 

Then, I started being attacked, by people who do not know anything about my situation. I responded to them, So if I did TJ it was unintentional, but what I had to say to them needed to be said so they would STFU and not attack someone for no reason.

 

By the way "Forums" are supposed to be for us to share our ideas and experiences, not just answer with a "Yes/No/Maybe".  How else are we to learn?  

____________________________________________________

"Evacuate, in our moment of triumph? I think you overestimate their chances."
Message 35 of 42
Valued Contributor

Re: New Credit Card Laws!

TJ = Threadjacking.

 

No offense, Pappy, and I mean this is the most caring way possible: You are a chronic!

Message 36 of 42
Moderator Emeritus

Re: New Credit Card Laws!

The is the first AND final warning! Keep your posts friendly and supportive, otherwise this thread will get locked. If anyone has issues with a certain post(s), please bring it to the attention of a mod. This can be done in two ways: PMing a mod or sending us an abuse report.

 

--fused, myfico moderator

Message 37 of 42
Moderator Emerita

Re: New Credit Card Laws!

For those who think about debt-to-income, there is something important to keep in mind: there is FICO scoring, which deals with credit risk, and there is loan underwriting, which deals with ability to pay.

FICO looks only at known risk factors in your credit history. It neither knows nor cares about your income.

Loan underwriting takes a glance at your FICO score, and then it focuses on your ability to repay, which is where debt-to-income comes in.

Your FICO scores are just one thing that you bring to the table when to try to get credit. Some lenders give them more credence; some give them less. It leads to endless confusion when scoring guidelines and loan guidelines get blurred.

If you're working on improving your FICO scores, then learning about what goes into FICO scoring will be very helpful, whether you much agree with the "rules" or not.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Message 38 of 42
Frequent Contributor

Re: New Credit Card Laws!

Man, that was a fun read!!!!!!!!!!!!!  Good points everywhere.   Merry Christmas everyone
A smooth sea never made a skilled mariner.
7/6/2009 Equ 664 TU 680 (15 and 19 point jump respectively this week, over 100 point increase in 6 months)
Message 39 of 42
Frequent Contributor

Re: New Credit Card Laws!

It was interesting.  Happy Kwanza!
Message 40 of 42