Comments on: What the Credit Card Act Means for You

By: Daniel

Daniel — Fri, 26 Feb 2010 00:11:59 +0000

@Steve, Yah that's silly to call it one thing when you have to pay a fee. That's like sayings "the card has a 0% interest rate on purchases but if you don't pay then there is a fee equal to 25% of the balance."

By: Steve

Steve — Thu, 25 Feb 2010 21:24:19 +0000

How could someone sign up for the 79% interest – simply – it was in the small print, probably said if you don’t pay timely, etc…

I notice one issue you did not discuss. I get offers for either 0% or other very low interest rates for balance transfers. But, then on the back, it says 3% balance transfer fee. Since that rate comes right off the top, it’s probably more like 3.3% APR – on top of whatever the rate they’re advertising.

Steve

By: Paul @ FiscalGeek

Paul @ FiscalGeek — Wed, 24 Feb 2010 18:46:23 +0000

@Daniel, Yeah there are always ways around it for sure. But when you are starting off with what college students value most (free crap) it's hard to ignore. My roomate had a stack of 12 cards he signed up for to get the swag although he never used one of them. I wonder what his FICO score looked like. I would love for there to be a formal education process in secondary schools beyond how to balance your checkbook which is what we covered. .-= Paul @ FiscalGeekÂ´s last blog ..TurboTax Review: I try out the Home & Business Edition =-.

By: Daniel

Daniel — Wed, 24 Feb 2010 18:42:42 +0000

@FinEngr,
I try so hard, I’ve gone into the branch twice and the manager has been so nice and helpful…except she can’t get it done! I feel bad because I know it’s not her fault, but another visit is definitely necessary.

By: Daniel

Daniel — Wed, 24 Feb 2010 18:40:22 +0000

@Paul @ FiscalGeek It does seem like there are ways to get around it. Imagine a freshman with an hourly job. At some point he's going to quit and no longer have that source of income. I think the provision helps, but is not the solution. The solution is educating people and making them realize what the consequences are.

By: Daniel

Daniel — Wed, 24 Feb 2010 18:38:28 +0000

@Little House Ha, clearly that's ridiculous. How could anyone possibly sign up for that???

By: Little House

Little House — Wed, 24 Feb 2010 18:21:23 +0000

I think it is really great that with the new CARD act, credit card companies can't give their "free" stuff away to students if they sign up for a credit card. This whole tactic was such a scam. My only problem with the new act is that it doesn't limit interest rates. MSN wrote an article about how First Premier Bank was offering a new credit card for 79.9% APR, ridiculous! .-= Little HouseÂ´s last blog ..Quick and Dirty Facts =-.

By: Paul @ FiscalGeek

Paul @ FiscalGeek — Wed, 24 Feb 2010 17:38:21 +0000

I am terribly glad that the young adult provisions were put in place. It might have prevented me from getting into debt so early if I had to have my parent's signature. .-= Paul @ FiscalGeekÂ´s last blog ..What is a Good Credit Score? Should you Care? =-.

By: FinEngr

FinEngr — Wed, 24 Feb 2010 17:11:56 +0000

@Daniel, AMEN! Bank of America is in the Top 10 of my Bottom 10. Many people subscribe to "herd marketing". Simply because something has a monopoly on an industry (verizon, bank of america, TOYOTA) doesn't necessarily make it the best deal in town. Now you've gotten me on a tangent, but one of the biggest compliants I have is when I ask people what makes BOA so great the replies are weak. For example, one reply is that branches are everywhere. Then I ask them how often they use the ATM vs. actually going inside. Of course, its predominantly ATM usage. So I remind them that plenty of other establishments don't charge for usage beyond their network so you'd actually have more access outside of BOA. Demand satisfcation - don't bulk to their tactics and get your $25. .-= FinEngrÂ´s last blog ..Can Shrinking Yields Be a Good Sign? =-.

By: Daniel

Daniel — Wed, 24 Feb 2010 15:30:32 +0000

@Lbergs Haha, I love when free really means free. My only complaint is that Bank of America is a terrible bank with awful customer servie. I need to pay them a visit to demand that $25 they keep saying they're going to give me!

By: Lbergs

Lbergs — Wed, 24 Feb 2010 15:08:20 +0000

Love this post…especially the part about banning free gifts if you sign up with a bank… I read this post as I wear my FREE, awesomely fitting, UMD t-shirt from Chevy Chase… I say free because I didn’t sign up for anything, I explained my loyalty to Bank of America and Wells Fargo and just told them I’d spread the word for them… YAY free shirts :-)