The Days of Loading on Credit Card for Students to Its Close

For many students, seems the days of loading in the plastic to close on February 22, due to a bill passed last year. Under the new law, people under the age of 21 will not be allowed to bring out a new credit card, unless they have adult co-signers, or can prove that they earn sufficient income to service debt. Even the students could face less card pitches, because the new law prohibited investment bonds to provide free goods, from university campuses or sporting events.

In addition, the intention is to prevent student debt, the new law with some unexpected negative consequences. Which, even the financial norms of young people may be difficult to establish credit history, the result is to pay a higher interest rate in their first car loan or have to drum up a co-signer rent of apartment. In addition, working adults under the age of 21 will only be able to produce 20% of the income loans, which will give them a harvest rewards program.

Although the credit card company over the years have seen students as a simple marker. Only through the new campus four susceptible marketing Huojinweisa without chatting and MasterCard credit card accounts and high limits.

The results is: each College student now has 4.6 cards and record balance of 3,173 dollars according to a new study. More importantly, only 17% of the students able to pay off the card each month, which means a lot scarce resources of the students charged as the interest.

How About the New Law Effects Credit Card Business

It is said that 2009 was a terrible for all of the credit card business. Dimon, CEO of Chase, also expressed this view in an annual letter to shareholders. He said the new credit card laws take effect, it can reduce Feb.22 500 million to almost 7.5 billion U.S. dollars from the chase. And Charge-off rate, the number of credit card debt as the company had to cancel chase, reaching 8.5%, has raised an unprecedented level. However, most do believe the end is entirely appropriate chase method to eliminate the active cooperation of a number of now-illegal practice, such as universal default, the card interest rate rise has nothing to do if you pay bills late.
Consumers did not consider certain acts have been prohibited by law, such as charging over-the-limit fees no customer consent, the existing balance plus interest. Meanwhile, the law requiring payment of the highest interest rate. Response to reduced bank credit, such as the provision of low interest rates credit cards and promotions to reduce the rate difference between the transfer and entry of a large number of users do not use for some time been cut off. Reduce the balance was not even catch up with 2 billion U.S. dollars. The new regulations limit the ability of banks to make adjustments, over time, they will no longer be the card to 15% of existing customers is considered too dangerous. The bank's profit and 700 million 8 million U.S. dollars, and in 2008 published the card services 22 million net loss for the year.

Although poor performance, which was better than competitors of chase. Its market share, improve the stock of cards 25.29 U.S. dollars changed hands between 47.47 U.S. dollars in the past 52 weeks. JP Morgan Chase's shares increased by 44 points 45.14 U.S. dollars. 16.34 billion U.S. dollars of the chase and not the balance, with over 1.45 million cards in circulation.

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Save Money or Keep Debt?

All of the stock market headline of news sites today, such as "the stock market raises the debt" and the "market response to reduce the use of credit cards. In other words, investors want others to buy things, not paying their debts.



For me, this is a very short term way of thinking. People with plenty of credit card debt cost a lot of when run-up, but then crash and burn. People do not worry about spending more money on debt for a long period of time, not at the end. I'd rather have a warm sustained for a long time more than a red-hot economy is a short period of time. Let's not let the Chinese savers to buy anything.

Raissa is one of the owners of http://www.taocredit.com/fair-credit-14.htm and believes that everyone should have a credit card and use them responsibly. That is why you will not only find the good credit credit card offers on our site but great articles and advice for using them wisely.