2/22/2010 What’s up with Credit card interest rates increasing?

If you haven’t heard about the changes to the Credit Card Industry, check out this Federal Reserve Board site, WOW!

Sit down, for these new Credit card rules click here only one page

Remember Our President, Barack Obama told the Card Companies last year to regulate themselves or he would and there seemed to be some animosity there?

I noticed this in a recent card statement. My rate had gone up from 4.9% to 17.9% (before the Feb 22 deadline). When I called they pleasantly agreed to go back to the 4.9% rate. When something doesn’t sound right you ask? I did –
Why wouldn’t anyone go back to the low rate?
The pleasant voice said, “….because then we’ll “FREEZE” your card.”
huh?
“You can’t use it until you pay off the current balance once we go to that old low rate.” Ugh, I’ve been hearing stories from my peers and on Yahoo like:
Credit card theft is down because lately when a thief actually steals your card the balance is so high they can’t put much on it.
Most IDentity theft is corporate like the inside job at LTX where an IT guy made off with millions of card users information.

But I forgot about the card thing. I did opt for the “FREEZE” then went to use another card until that balance is down, say next month.
However as a Mortgage guy Click here  it occurred to me that not everyone has other cards, that this is just the first step, (cards can go to 27.9%). Ultimately this will wreak havoc with one of your Primary indexes that mortgage companies use to qualify you for the best rates the – DTI (Debt-to-Income ratio!
If you’re looking to refinance or get a Purchase mortgage check with your Mortgage Person before paying off debt or making large purchases. They can usually tell you what the impact will be, I can if you’re looking at mortgages in Massachusetts You can Click here
Good luck, Mike
PS You can try using cash for a while ($50 or $100 from your ATM). That thing you just have to have as an “impulsive buy” may not look so good if you’ve got to pay an additional 17.9 or 27.9%

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