The current credit card crackdown in Washington is being structured to help the consumer. But some if its provisions can adversely affect those with good credit, too. John Ulzheimer explains:
1. It’s very possible that consumers with good credit wll be forced to subsidize the large credit card issuers’ bottom lines by paying higher rates and annual fees.
2. If you have good credit, you’re probably used to getting the best deals the issuers have to offer. Those deals may be few or far between now or just not as hot if the industry chooses to use the new rules as an excuse to raise the bar on minimum interest rates.
3. Some may be forced to choose between annual fees and closing their cards. There is no blanket answer for everyone between the choices of closing an account or leaving it open. Your best bet is to gravitate toward smaller lenders and credit unions and open some new cards in case the big companies follow through on their threats and continue poor treatment of their customers.