Tuesday, June 23, 2009
You Can Find A Fairer Credit Card, Says Harvard Study
In a June 23 New York Times editorial, two Harvard University doctoral candidates in economics say credit cards issued by credit unions largely conform to the new consumer protection rules already, while profitably "maintaining the basic features that users know and love."
"We have performed a study that compared credit cards issued by investor-owned banks to those issued by customer-owned credit unions. We found that credit unions are less likely to charge the fees and penalties that the new act hopes to eliminate--and when they do, they charge less than other issuers."
The article says "while virtually all banks and other for-profit issuers increase the interest rate if the borrower fails to make a minimum payment on time, most credit unions do not."
"Similarly, credit union fees for exceeding the credit limit are on average just half those of other issuers. But contrary to industry assertions, more responsible card users don't pay the price. Credit union cards actually offer lower annual fees and longer grace periods than regular cards," according to the report.
Dupaco's VISA is not unlike other credit unions' consumer friendly credit cards. Compare and get a better credit card here.
To read the complete article, click here.