RRJ4

Reading reaction journal 4
Reference:
Ellis, D. (2010, February 22) Credit card relief is here, but watch out for new traps. CNN.com Retrieved Feb 17, 2010 from
http://money.cnn.com/2010/02/17/news/companies/credit_card_rules/index.htm
Summary:
in the article, a lot of credit cards companies have some “traps”. Companies will charge some fee from your bills for example, double cycle billing and fee of formalities. Therefore, consumers need to pay attention to the law of credit cards. Now, credit card companies have boost then standard to examine those people who apply for credit cards. It usually focuses on college students, if college students want to apply for a credit card. They have to take their documents about income and saving.
The consumers also do not have something about reward points; if you delay paying your bills. So, one needs to read your credit card rues. It will help you be able to protect your reward point and interest. In terms of interest, one can negotiate with your credit card company about your interest.
Reaction:
A lot of people think that credit cards will become the next financial crisis. Why? Because of bad debt. In research, the U.S. has $200 billion in bad debt from credit cards. A lot of banks worry that a lot of people are unable to pay their credit card bills because they lost then job. And then many college students also too, they have no income to pay their credit card bills. Their credit card bills are usually paid by their parents. Therefore, they will not lose control to use their credit card because they never worry about it. I think that credit card companies have to boost college students credit. Even their parents are their guarantors. This way they are able to reduce risk by bad debt.
Credit card companies also can give their customers a preferential interest rate, if their customers have good credit. I think most customers will like it because they usually use credit cards to buy many things. They deserve to have their preferential interest rank. And then cancel the formalities charge. I think that this fee is not reasonable, because credit card companies already have more income by credit card interest. If they charge this fee, these will be a lot of dispute. Therefore, we have to pay attention to credit card companies. You have to scrutinize to your bills. Perhaps you will discover a lot of fees are not reasonable.