The Latest on the Credit Trap

The WSJ yesterday highlighted changes in credit card terms that I have been speaking of for weeks.  Terms are getting very difficult for the typical user of credit.

The following summarizes some of the changes highlighted.

American Express: Raising rates and fees for advances, purchases, late payments and defaults.

Bank of America: Lowing credit lines and closing accounts with $0 balances.  Repricing individual accounts.

Capital One: Changing its minimum payment calculations, resulting in increased minimum payments required.  Raising rates.

Chase: Raising rates and fees.  Raising minimum payments from 2% to 5% on some customers, adding a $10 monthly service fee on some accounts.

Citi: Raising rates on select customers.

Discover: Removing the cap on balance transfer fees.

Bottom line:  Credit is getting more expensive, more restrictive, and more punitive for usage!

Buyer and friends beware!

If you know of any good alternatives, please share them as a comment!!!! Thanks.

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