Some thoughts on credit

While I have a disclaimer on my blog here stating that the opinions here are not those of my employer I feel the need, considering the subject I am about to discuss, to state it again. What I am about to write is my opinion and my opinion alone, and in no way reflects the views of my employer.

Ok, I got that out of the way…Now…

On my way in to work this morning I heard a bit on the radio about how the new credit card regulations were going to be horrible for people who, traditionally, are responsible with their credit cards. These “responsible” credit card users are now going to be asked to carry the burden of the “irresponsible” people who have abused their credit cards, paid late, and carried high balances. This type of rage is generally accompanied by vitriol aimed at the Obama administration and how this is yet another step towards socialism.

There are certain aspects of this that I cannot dispute. Banks ARE going to raise fees on people who pay their balances on time and have good credit. They are, and have been, raising interest rates on those people for no good reason. This is, without question, a direct response to the new regulation and an effort by the credit industry to recoup the money they are going to lose as a result of it.

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