Important Vote on Credit Cards This Week. What Can You Expect?

It is expected that this Thursday the Federal Reserve will be voting on a number of controversial matters practiced by credit card issues. These include things such as:

  • Credit Card Grace Periods – Some credit card issuers have been shrinking their grace periods of the years, from 25 days, down to 15, and some down to 0 (meaning interest begins to accrue as soon as your billing cycle closes). It is expected (hopefully) that the Federal Reserve will require a minimum credit card payment grace period of 20 or 25 days from statement closing.
  • Credit Card Double-Cycle Billing – A practice where issuers base interest on the balance of the past two cycles. This means you could have paid your bill on time in full last month, but this month you carry a balance, the credit card company will use both month’s balances in calculating the current months interest. Not many issuers practice this today and this is expected to be banned, thankfully.
  • Credit Card Universal Default Policy – Perhaps the most controversial practice, where a lender will raise interest if the borrower defaults on another bill. It is expected that this will either be banned or strongly regulated; interest rate hikes will be limited and some bills would not qualify as a default.

Unfortunately, there are a few drawbacks here. Since fees are major source of income in the financial and banking industry, it is expected that creditors may raise interest rates in the future to make up for the decrease in fee income. Therefore, if you are a borrower with excellent credit who always pays your bills on time, this could hurt you if you carry a balance. For most other borrowers, it would be beneficial.

Whatever happens, Credit Card Forum will keep you updated on the developments as the unfold.

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What ever be the decision by the Federal Reserve, people will have to find their own way to tackle the problem of over credit. Now there are lot of firms working in this field like To help consumers on over credit, there are many online tools & resources available to educate and solve their financial problems on their own.

No to 100,000 credit card debts

Credit Card may make things convenient for us but end of the day we don’t have access and visibility on cash flow. We may overspend than what we actually need to.

Fees make up the credit card income? Then explain to me why back in the day 15% was considered usury? They can still charge 10% or so and still make plenty of money. The problem is that’s not good enough for them!

About time they do this…..