No annual fee credit offers
No annual fee credit offers can be found all over the place, and if you’re looking for one, or any type of credit card, yourself it would be a good idea to find out what’s happening in the credit card world these days. For those of you who didn’t already know, on December 18, 2008 US federal regulators passed new credit card rules to take effect this year. They have been named some of the most drastic and sweeping changes to the credit card industry in decades. Card issuers are in a bit of a panic right now, and this is big news. These changes are favored by consumer advocates like ‘Consumer Report’, since they focus on making credit card companies remove most of their most profitable practices, which have been the biggest source of anger and frustration amongst credit card holders. Now interest rate hikes are limited, no more universal default, more time to pay your monthly bills, clearer due dates and times with an exact date and time, and payments must be applied to the highest interest balance on your account first or at least proportionately. This means a much easier time for buyers, and a lot less stress! So what’s the down side? Well, the credit card companies are claiming that it will mean they will have to increase interest rates across the board.
So what’s been happening recently since the new regulations were announced? Well in March, investors had high hopes for the industry after hearing American Express reported better than normal default rates which suggests card holders’ financial states improving. This month, they have been more skeptical as the reports from April show that credit card defaults rose to record highs, since the recession has terminated over 2 million jobs since the beginning of the year. With Wells Fargo and Citigroup, some of the largest credit card companies, reporting losses in the double digits. Things are looking scary for credit card companies; even the experts agree “U.S. card credit quality continues to struggle,” John Williams, an analyst at Macquarie Research. At this rate, I wonder how long no annual fee credit cards will be offered?
We have a lot of credit card offers in the market but I think the no annual fee cards are the best choice of all, for those customers who do not skip payments.