Credit Rating
Your credit rating is about to take another hit when banks make the final decision to raise their fees. You don't hear too much about this aspect of the credit card industry, but it's a dimension that's getting ready to rear it's ugly head. Now that Congress has reigned in the outlandish fees these lenders have been charging, they have to make up the losses somewhere. More money out of your pocket means another hit on your cash flow and possible on your credit history.
I predict consumers are going to be hit with unprecedented checking fees. All of those no fee checking accounts will soon have a fee attached to them once you get cozy and settled in. Citibank had been all set to start charging up to $9.50 on checking accounts it had previously marketed as free checking. This got the attention of New York Atty. Gen. Andrew Cuomo and in an agreed settlement, the financial institution has agreed to keep the accounts free until at least 2011. Said Cuomo, "We want to make sure the banks aren't turning around and trying to charge customers through a different means."
February 22, 2010 is the drop dead date for banking institutions to toe the line with their credit card interest rates. They got to make up for that lost revenue somewhere and as they discover new ways to gouge you, your credit rating will be affected. In case you haven't noticed, check your bank's charges for overdraft fees.
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