As the Federal Reserve’s new credit card rules take effect, many financial advisers are telling people to keep an eye on accounts—just to make sure big companies don’t try to get squirmy with the new regulations.

Writing for Yes!, Chuck Collins has an additional suggestion: Break up with your credit card. “Do you feel a warm fuzzy attachment to your credit card?” writes Collins, director of the Institute for Policy Studies’ Program on Inequality and the Common Good. “No? You feel abused? Legalistic fine print? Hidden fees? Interest rate hikes? . . . So why do you keep going back?”

Collins cites Stacy Mitchell, a senior researcher with the New Rules Project, who writes that the majority of community banks and credit unions offer credit cards. “Unlike big banks, these smaller institutions generally do not view their credit cards as major profit centers . . .  but rather as a service for customers,” writes Mitchell, whose article “Localwashing” was in a recent Utne Reader.

Not all financial institutions are created equal of course: The Move Your Money website, a hub for the national movement, has some resources to help people find a new community bank or credit union. The New Rules Project’s Community Banking Initiative is also full of great information, including new data that shows bigger banks charge higher fees on savings and checking accounts than smaller institutions do, while paying less interest on savings.

Sources: Yes!, New Rules Project, Move Your Money, Community Banking Initiative

7/6/2010 1:54:25 AM

I appreciate the concern which is been rose. The things need to be sorted out because it is about the individual but it can be with everyone.The initiative taken for the concern is very serious and need an attention of every one. This is the concern which exists in the society and needs to be eliminated from the society as soon as possible. ==================================

3/5/2010 5:19:06 PM

A person only needs one credit card to build a credit history - which is important if you are thinking of buying something with credit - like a house or a car. You need one credit card.... and you DO NOT have to carry a balance on your credit card. Use one card, to purchase something small in your budget and pay it off in full each month. Try not to use more than half the available credit on the card, and aim not use more than you can easily pay off in 3 months. If you have racked up a balance and knowing you are unable to pay it back... that is fraud!! So many people do not realize that credit is expensive!! 28% interest is what most store credit cards charge in Canada.. That means you are adding a third to the price of you item them minute you use it - if you still think it is a good deal, what if you can't pay it off in full? If you get in to too much trouble with your credit cards contact a Not-For-Profit Credit Counselling company for options on how to address your debt. Building a long term sustainable spending plan will be the most important step you can take!!

3/5/2010 1:20:24 PM

I have cancelled all my credit cards except the one with my credit union and have intentionally kept the limit low. No doubt, a credit card is a good thing to have in certain situations like renting a car; but using a credit card is like gambling in Las Vegas - it creates a false sense of having money you don't.

Facebook Instagram Twitter