Will the Credit Card Bill Reduce Visa Credit Card Application Approval Rates?
In this time of dwindling economy, most Americans rely on credit cards to make payments for their basic needs, mortgage, and loans. However, card issuers are now implementing very strict process in approving applications to be sure that cardholders who passed the rigorous qualifications can make payments on time. Banks also reduced credit limits to avoid debts, which is the biggest liability of the industry.
With the overwhelming support that the Credit Card bill is getting, the banking sector is said to be walking on a thin line. Once enacted, the legislation will ensure to protect consumers against high interest rates, arbitrary rate increases, retroactive interest penalty, and other alleged abuses of card issuers. The banking industry wrote a letter to the Senate saying that the measure will only cause banks to implement stricter bank policies leading to lower rates of Visa credit card application, and other credit cards. On the other hand, the Senate remained unmoved by the plea of bank issuers.
The Credit Card bill is said to overhaul the whole credit card system in the US. Everyone has high expectations that the legislation will pave a cleaner system in banking industry. Now that Congress is urged to closely monitor the activities of credit card companies, Americans will have more protection from the alleged abuses of the industry.
