How to improve credit terms

Josh Smith

When Congress passed the credit card reform act known as CARD many people breathed a sigh of relief, hoping that accountability and responsibility would soon be coming to the credit card industry.

Unfortunately, instead of bringing sunshine and rainbows to the credit card industry, the CARD act has only hastened the ascent of interest rates and fees; causing 56% of consumers wanting Congress to move the Credit Cardholder's Bill of Rights up to December.

In fact, a recent survey by Credit.com shows that 45%, an increase from 33% over June, of consumers have felt the negative effects of the credit industry's grasping for extra cash in one of the following manners:

  • Increased their interest rate 27% (up from 15% in February survey)

  • Increased their fees 19% (up from 14% in June survey)

  • Lowered their credit limit 17% (up from 8% in February survey)

  • Increased their minimum payment due 17% (up from 12% in June survey)

  • Reduced their rewards program 12% (up from 9% in June survey)