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Credit Card Companies Expected to Increase Rates and Reduce Limits Soon

Posted on | November 10, 2009 | No Comments

With a new law aimed to protect consumers from sudden interest rate increases many credit card companies are expected to increase interest rates and reduce limits very soon.  A very concerning issue is the fact that most credit card companies said that this is going to happen to both prime borrowers and subprime borrowers.

This means that even if you have been very smart with your money and maintained a high credit score there is still a strong possibility that you are going to see a higher interest rate on your credit card and a reduction in your limit.  Another idea that has been thrown around for some time is that credit card companies are going to apply an annual fee to all credit cards especially if you pay them off each month.

The new laws to protect consumers is set to take effect on February 22nd, 2010.  The House has been trying to get these laws enacted quicker but it is highly unlikely it will pass the Senate sooner than the February date.  This law was expected to help most borrowers but the exact opposite could happen as many Americans are finding it very difficult to obtain loans in the current economic environment.

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Author: Mike Garner

Category: Current News

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