Comments on: Is The Credit Crunch The Next Bubble To Burst? http://www.moneycrashers.com/is-the-credit-crunch-the-next-bubble-to-burst/#utm_source=rss&utm_medium=rss&utm_campaign=is-the-credit-crunch-the-next-bubble-to-burst Personal Finance Blog, Your Guide to Financial Fitness Sat, 20 Mar 2010 13:05:48 -0500 http://wordpress.org/?v=2.9.2 hourly 1 By: ekrabs http://www.moneycrashers.com/is-the-credit-crunch-the-next-bubble-to-burst/comment-page-1/#comment-6137 ekrabs Wed, 27 Aug 2008 12:59:33 +0000 http://www.moneycrashers.com/?p=634#comment-6137 I too am in the camp of "credit card can be a useful tool if used correctly", but I fully agree that I believe more people are using it incorrectly than not, and have racked up an frightening amount as a result of it. It is an epidemic that may be bubbling over, if it hasn't already. I too am in the camp of “credit card can be a useful tool if used correctly”, but I fully agree that I believe more people are using it incorrectly than not, and have racked up an frightening amount as a result of it. It is an epidemic that may be bubbling over, if it hasn’t already.

]]> By: Christina http://www.moneycrashers.com/is-the-credit-crunch-the-next-bubble-to-burst/comment-page-1/#comment-6136 Christina Tue, 26 Aug 2008 18:35:41 +0000 http://www.moneycrashers.com/?p=634#comment-6136 I'd be more sold on credit cards if the terms and conditions were correlative to my credit history and score. As it is, my credit score improved to the 800s, I got great terms from a local bank and a credit union, yet the grace periods on my cards went from 25 days to 20 days once my credit card issuer was acquired by Bank of America. Also, mandatory arbitration was introduced in terms and conditions agreements. It confuses me that "balances and APRs" on my credit card were responsible for raising the APR for check cash advances 21.99% to 24.99%: I hadn't used the card since 2004, hadn't been late making a payment, had a $0 balance. It's one thing to raise rates on risk pricing or poor credit history: it's perplexing to see rates and more restrictive terms applied to near-stagnant cards: how does F.I.A. (the credit card division of Bank of America) think these terms and conditions will attract more frequent usage? I’d be more sold on credit cards if the terms and conditions were correlative to my credit history and score. As it is, my credit score improved to the 800s, I got great terms from a local bank and a credit union, yet the grace periods on my cards went from 25 days to 20 days once my credit card issuer was acquired by Bank of America. Also, mandatory arbitration was introduced in terms and conditions agreements.

It confuses me that “balances and APRs” on my credit card were responsible for raising the APR for check cash advances 21.99% to 24.99%: I hadn’t used the card since 2004, hadn’t been late making a payment, had a $0 balance.

It’s one thing to raise rates on risk pricing or poor credit history: it’s perplexing to see rates and more restrictive terms applied to near-stagnant cards: how does F.I.A. (the credit card division of Bank of America) think these terms and conditions will attract more frequent usage?

]]> By: Mike http://www.moneycrashers.com/is-the-credit-crunch-the-next-bubble-to-burst/comment-page-1/#comment-6135 Mike Tue, 26 Aug 2008 17:57:43 +0000 http://www.moneycrashers.com/?p=634#comment-6135 Credit cards can be bad for people who don't know how to use them effectively, but for people who know how to manage their money they are a great tool. I pay no yearly fee on my credit card and pay off the balance every month. That's the equivalent of getting a 30 day interest free loan while the cash I could have used instead of the card accumulates interest in a savings account. A month's interest is only a few cents, but if you watch your pennies your dollars will take care of themselves. Credit cards can be bad for people who don’t know how to use them effectively, but for people who know how to manage their money they are a great tool.

I pay no yearly fee on my credit card and pay off the balance every month. That’s the equivalent of getting a 30 day interest free loan while the cash I could have used instead of the card accumulates interest in a savings account.

A month’s interest is only a few cents, but if you watch your pennies your dollars will take care of themselves.

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