With the upcoming changes in credit card rules scheduled for July 2010, credit card companies are looking at the months between now and then to consider how to recoup what will be lost revenue for them. Cardholders can expect to see increases in their interest rates, lower credit limits and changes to the terms and agreement of their card - particularly if they hold credit cards designed for the subprime market of credit card users.
Come July 1, 2010, new laws will make it extremely difficult for credit card companies to change how interest rates are calculated in order to make more money off cardholders - but there is a great deal of time between now and then which you can expect to see your interest rates climb as credit card issuers attempt to recoup what they’re sure to lose once the changes go into effect.
When the rules do go into effect, predictions by experts say that the credit card companies will begin decreasing their operating costs in order to maintain their profitability. While new reward programs are constantly being rolled out now and is the primary way a credit card company competes with other companies to attract new cardholders - we are likely to see a decrease in rewards programs once the credit card changes take effect.
No comments:
Post a Comment