For those who havent heard yet, a new credit card reform bill was just signed and passed by President Barack Obama. This spells big changes in your current visa card as well as any future visa credit card application. The law was a result of consumer anger against banks that have been given an allowance to take advantage of their customers. Now, the new administrations stresses that these practices should be put to a halt once and for all. Banks shall now be held accountable for their sly business dealings since accountability is precisely the focus of President Obama. The creation of these new cardholder rights will affect banks and will probably have them tightening their beltsHow will this inevitably affect Your Visa Credit Card Application?The treasurers bill specifically will affect the card application of students. No longer will persons below the age of 21 be permitted credit without the assurance of income or parental support. Lenders have been targeting students for their vulnerability to spending. The more students over spend, the more money lender make in late fees and interest rates. Another thing, banks will now make stricter screening processes for everyone. That means that your Fico score will play a big part in the application process. For those who have low Fico scores, it may be harder for you to get your visa credit card application approved. Banks claim that the rules are really forcing them to increase their security cushions (ei. late fees, defaults, and interest rates). However, the bill hasnt even been passed yet and already the interest rates are soaring. Actually, the interest rates, defaults, and late payment fees have already gone up much earlier even before this bill. After all, the recession has been doing a number on the banking industry as more and more people are not able to pay their mountainous debt. Whats the good news?Although you will have a harder time at your card application, the benefits of the Bill are immense. No more of those pesky universal defaults are permitted. No longer shall banks be able to sneak up on you and have an arbitrary increase in their rates without your prior knowledge. Banks are now required to give you adequate time for your payments. Late payments shall not be subject to defaults unless you are 60 days late.There are some negative results and some positive results all around. But one thing is for sure, anybody who will apply for a visa credit card application may have a harder time, but at least they can rest assured that they will not be taken advantaged off because of these new cardholders rights.
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