Skip to main content

0% Credit Card Offers May Soon Disappear


by Kelli B. Grant
Wednesday, October 1, 2008
provided by Smartmoney.com

Believe it or not, the federal bailout is not the only thing on Congressional leaders' minds these days.

Over the past several months, lawmakers and the Federal Reserve have been moving toward new regulations targeting the credit card industry. Just last week, the U.S. House of Representatives overwhelmingly voted to pass the Credit Cardholders Bill of Rights, which was drafted to mirror regulations the Federal Reserve is planning to announce this fall.

The Fed rules, while binding for credit card issuers, are more easily undone than law -- hence the parallel proposals, explains Linda Sherry, a spokeswoman for Consumer Action, a consumer advocate. The Senate is not expected to review the bill until after any new Fed rules take effect January 1. It's extremely unlikely they could (or would) weaken the standing regulations, she says.

The regulations are tremendously good news for cardholders. Consumer advocates hail talk of eliminating predatory lending practices like retroactively applying interest rate hikes to balances, and implementing new requirements such as a 45-day notice before raising interest rates.

Not surprisingly, the credit card industry is balking at the proposed new rules. Among other things, card issuers note that because of the greater restrictions, they will no longer be able to afford to offer the enticing teaser rates used to lure customers in. "It could wipe out all these 0% financing offers overnight," says Curtis Arnold, founder of CardRatings.com.

It's already slim pickings. The number of mailed solicitations credit card issuers sent dropped 14% during the second quarter of 2008, according to market researcher Mintel Comperemedia. "They're going to focus more than ever on their profitable customers," says Scott Bilker, founder of DebtSmart.com.

While any new regulations on the credit card industry may cut promotional offers in the short-term, expect a bounce back -- or other good deals -- as companies get used to the rules. "There was a life before 0% financing offers, and there will be a life after," says Gerri Detweiler, credit advisor for Credit.com. "These companies want your business and they want to make money."

Still, now is a good time to lock in a 0% rate -- assuming you qualify. "If you have good credit, the doors are still open to you," says Bilker. Those with a less-than-stellar score may receive offers for shorter promotional periods, or less favorable ongoing rates.

Here are five card offers to consider:

Comments

Post a Comment

Popular posts from this blog

FBI plans large hiring blitz of agents, experts

By James Vicini James Vicini – Mon Jan 5, 5:15 pm ET WASHINGTON (Reuters) – Wanted by the FBI: agents, language specialists, computer experts, intelligence analysts and finance experts. The FBI said on Monday it had launched one of the largest hiring blitzes in its 100-year history involving 2,100 professional staff vacancies and 850 special agents aimed at filling its most critical vacancies. The agency, which seeks to protect the United States from terrorist attack, fight crime and catch spies, among other duties, said it currently has more than 12,800 agents and about 18,400 other employees. Since the Sept 11, 2001, attacks, the FBI has been criticized for not having enough employees fluent in foreign languages and for not moving fast enough to upgrade its computer system. FBI Assistant Director John Raucci of the Human Resources division said the federal law enforcement agency is seeking to bring more people on board with skills in critical areas, especially language fluency and ...
Post a Comment
Read more

Anti-cancer foods

Posted by: Zap Mon, Sep 29, 2008, 1:44 pm PDT Source: Yahoo Health It turns out that a healthy diet can help to override any cancer-prone genes you might have at work in your body. "Nutrition has a bigger influence on cancer than inherited genes, which means you could significantly reduce your odds of the disease through diet alone," explains Joel Fuhrman, M.D., author of Eat for Health (Gift of Health Press). OK, OK. I know what you're thinking right about now: She's going to tell me I have to eat kale at every meal. Not so! I mean, for the record, you should always eat as many fruits and veggies as possible, because they will dramatically lower your odds of ever hearing the dreaded diagnosis. But there are many other, less rabbity ways to eat away at your cancer risk. Add whole grains to your diet. My two faves, aside from a thick piece of freshly baked whole-grain bread? Oatmeal with a pinch of cinnamon for breakfast, or brown rice with a chicken and veggie stir-f...
1 comment
Read more

Why Disasters Are Getting Worse?

By: AMANDA RIPLEY Thu Sep 4, 12:40 PM ET In the space of two weeks, Hurricane Gustav has caused an estimated $3 billion in losses in the U.S. and killed about 110 people in the U.S. and the Caribbean, catastrophic floods in northern India have left a million people homeless, and a 6.2-magnitude earthquake has rocked China's southwest, smashing over 400,000 homes. If it seems like disasters are getting more common, it's because they are. But some disasters do seem to be affecting us worse - and not for the reasons you may think. Floods and storms have led to most of the excess damage. The number of flood and storm disasters has gone up by 7.4% every year in recent decades, according to the Centre for Research on the Epidemiology of Disasters. (Between 2000 and 2007, the growth was even faster - with an average annual rate of increase of 8.4%.) Of the total 197 million people affected by disasters in 2007, 164 million were affected by floods. It is tempting to look at the line-u...
Post a Comment
Read more