Low Interest Credit Cards

The Federal Reserve Board announced that beginning in the summer of 2010 consumers will not be liable for overdraft fees on checking accounts, ATM withdrawals and debit card transactions unless they specifically opt-in to the overdraft protection program offered by their financial institution.

Overdraft fees have become a very lucrative business for U.S. banks. It is estimated that they will rake in an astounding $38 billion on overdraft fees alone in 2009. As it stands now, the majority of banks automatically enroll their customers in their respective overdraft protection programs whether they request it or not.

While the banks will say that it is a service that they offer for their customers to protect them, many of these very same consumers and consumer advocate groups have vehemently argued otherwise.

A great many of the fees would have been prevented if but a simple warning were given that the consumer was in fact short on funds to cover their transaction.

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A recent report shows that companies that grant credit cards are still seeing high rates of delinquencies, which indicates the credit market could continue to be strained in the near future.

According to the Dow Jones Newswire, many of the major issuers of credit cards saw delinquencies increase during October. For example, Capital One Financial Corp. reported that the number of accounts at least 30 days late increased from 5.38 to 5.72 percent from September to October.

Discover Financial Services Inc. also posted an increase in delinquencies on credit carddebt tied to bonds, according to the report. Accounts that were behind by at least a month were at 5.72 percent in October after coming in at 5.57 in September.

Unlike its competitors, American Express Co. reported that delinquency rates did not change from September to October and rest at 4.1 percent.

As more consumers find it difficult to pay off their cards, lenders have worked to try and tighten their standards for issuing credit. Read more…

The Credit CARD Act of 2009, signed into law by President Obama on May 22nd, just cleared a major hurdle in its path to early adoption.

As reported on CNNMoney.com last week, the House of Representatives overwhelmingly passed a new bill which would move the effective date for credit card reforms from February 2010 to December 1st. That’s just under three weeks from today!

The bill still needs to make its way through the Senate before it gets to Obama’s desk, but I think there’s a good chance legislators will be able to push this through just in time for the holidays. And while the CARD Act certainly brings with it some much needed consumer protections, there’s reason for young adults to pay special attention to how the new rules could affect their future access to credit.

If you’re under 21 and have no credit history, you may just get hung out to dry. Here’s wh

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The Pew Study was one of the first research studies to delve into the impact of the recent credit card legislation and reforms. Beginning in July 2009 the study evaluated nearly 400 cards offered by major card issuers in the US. Some of the card issuers, while having adequate time to implement the new changes, have made little, if any progress. Of the 400 cards reviewed in the Pew Study all the cards had at least one “unfair and deceptive” practice.

One consumer, with Citibank, recently received a letter from his card provider outlining that they were changing their credit terms. What they really meant was that the interest rate was doubling from 14.99 percent to 29.99 percent. Having never been late with a payment the card holder thought it was a joke. To

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It’s tough to keep track of all the rules and regulations surrounding credit and credit cards, especially if you’re the victim of fraud or theft. Know how to protect your credit card, learn your rights as a credit consumer also how to safe credit card.

Credit card, ATM and Internet fraud can often be prevented. Most thieves use stolen credit cards within 48 hours. Call your credit card company immediately to report a lost card.

Limit your credit card losses

Different credit card companies have different rules regarding your responsibility for unauthorized charges. Know what these are when you get your credit card. If a thief uses your card before you report it as lost or stolen, you may be responsible for his purchases. Follow up your call with a letter giving your account number, the date the card was missing and when you called in the report.

Keep your credit safe

Be careful about how and when you use your credit cards. Nev

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