News : Credit Card Companies Gets Tighter for issue credit card
Credit card companies have begun to tighten lending standards for new and existing customers. Investigations by the Federal Reserve showed that both national and foreign financial institutions have tightened their credit standards and terms for a wide range of credit products.
Many news broadcast about the credit crisis and its impact on the mortgage. However, according to a survey by the Federal Reserve System, these new restrictions also felt in the market for student loans and credit cards.
In January, the same poll, 10% of banks willing to tighting guidelines for their credit card products. In April, the number rose to 30%.
This is indeed a significant increase, the last several banks, as to seek ways to curb subprime losses, which seems more than a mortgage disaster. With regard to financial constraints, consumers turn to their credit cards to help the rising cost of living.
Credit card balances rise, as owners try their current mortgage. Tenants also with their credit cards more to cover higher costs for gasoline and higher food prices.
Tighter credit is not the only reason
The main reason is that banks are not yet as a pretext to tighten the guidelines for loans to credit cards. They are waiting for the introduction of new restrictions on credit card practices, the profits of credit cards in the coming years.
U.S. Office of Oversight and thrift Federal Reserve to support radical changes to tighten the rules for credit cards, the rattle of the credit card issuer. These changes include new restrictions on:
* Increase in interest rates
* Billing cycle
* Enhanced disclosure rules
* The distribution of payments for a few courses balances
The banks are to isolate all the obstacles to their lucrative income. Reduction of income tax credit card issuers will be much more sensitive to an increase in defaults that threaten profits.
Even if the banks, focusing less on interest than in the past, this could also be reduced because of additional restrictions on the justifications for higher interest rates. An important outcome is likely to offer less favorable balance transfer.
Many news broadcast about the credit crisis and its impact on the mortgage. However, according to a survey by the Federal Reserve System, these new restrictions also felt in the market for student loans and credit cards.
In January, the same poll, 10% of banks willing to tighting guidelines for their credit card products. In April, the number rose to 30%.
This is indeed a significant increase, the last several banks, as to seek ways to curb subprime losses, which seems more than a mortgage disaster. With regard to financial constraints, consumers turn to their credit cards to help the rising cost of living.
Credit card balances rise, as owners try their current mortgage. Tenants also with their credit cards more to cover higher costs for gasoline and higher food prices.
Tighter credit is not the only reason
The main reason is that banks are not yet as a pretext to tighten the guidelines for loans to credit cards. They are waiting for the introduction of new restrictions on credit card practices, the profits of credit cards in the coming years.
U.S. Office of Oversight and thrift Federal Reserve to support radical changes to tighten the rules for credit cards, the rattle of the credit card issuer. These changes include new restrictions on:
* Increase in interest rates
* Billing cycle
* Enhanced disclosure rules
* The distribution of payments for a few courses balances
The banks are to isolate all the obstacles to their lucrative income. Reduction of income tax credit card issuers will be much more sensitive to an increase in defaults that threaten profits.
Even if the banks, focusing less on interest than in the past, this could also be reduced because of additional restrictions on the justifications for higher interest rates. An important outcome is likely to offer less favorable balance transfer.
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