Credit Card Blog
Obama Hosting Credit Card CEOs, Pledges New Rules
WASHINGTON – President Barack Obama is pushing to rein in costs for millions of Americans who use credit cards, an appeal to consumers as many struggle to pay their bills.
Laws to Prevent and Counter the Financial Crisis
Since the beginning of the crisis in late 2008, the U.S Government and Congress have passed a number of bills into law. These bills have been designed to inject liquidity into the financial markets, increase availability of credit, and encourage consumer spending. A number of regulations have also been introduced to curb practices in the sub-prime mortgage industry.
Vicious Cycle that led to the Financial Crisis
Experts have citied a lot of reasons for the financial crisis. Due to increased demand for housing, and government policies encouraging subprime mortgaging, banks lowered minimum requirements and credit ratings of potential borrowers became less important.
How the Financial Crisis Began?
According to the Federal Reserve and various other independent financial experts, the financial crisis of 2008 was largely an extension of the sub-prime mortgage crisis resulting from a burst in housing prices, and the inability of mortgage borrowers to fulfill their payment obligations and refinance current mortgage. This led to a situation where banks didn’t have enough money for lending and normal business purposes.
How Reducing Prime Rate Affects Credit Card Debt and Finance?
The prime rate is always seen as the first approach to controlling a recession. Burst periods which accompany the end of a market boom can be controlled by reducing the prime rate. Up until now, the Federal Reserve has steadily reduced prime rates in a bid to reduce interest rates and stimulate consumer spending.
Second ‘$800 billion’ Bailout and It’s Affect on US Consumer Banking
Unlike the first $700 billion stimulus package which was intended to promote inter-bank lending, the second bailout $800 billion economic stimulus package would be used to purchase consumer debt and mortgage backed securities.
Understanding Credit Cards in Small Print
Millions of United States consumers lose money due to their inability to either read or understand details pertaining to their credit cards in small print. Whether it’s a credit card agreement, purchase agreement or other contract details, the bulk of Americans will only skim through the document rather than take a while to read and ensure to have understood all aspects of the agreement.
0% apr american express amex annual fee APR Bank business credit card card card offers cards cash back cash back bonus chase co-branded consumers credit credit card credit card companies credit card company Credit Card Debt credit card offer credit card offers credit cards credit history credit rating credit report credit score debit card Discover Discover more card fees identity theft interest interest rate MasterCard money no annual fee purchase recession rewards rewards points rewards program savings terms and conditions Visa
Featured Card
* * *