Controversy has sprung up regarding the Charge card reform law known as the GREETING CARD Act (Credit Accountability Responsibility and Disclosure Act). Stay-at-home parents could have trouble getting a credit card in their name due to a Federal Reserve proposal meant to clarify areas of the legislation. The CARD Act was made to help consumers, but these credit card rules also provide a downside. It's made credit card interest rates soar for individuals who are applying for new cards. The issue surrounds a Federal Book proposal requiring creditors to only look at an individual's income rather than the household income when applying for credit score. The idea was to protect teens from getting charge cards with a large credit limit so they don't rack up debt they can't repay at a young age. But the Federal Reserve proposal requires all credit applicants to supply independent income information no matter how old they're. That means parents who stay with the kids may not be capab
le of geting their own credit card. Here are a few of the issues that opponents of the provision have stated. 1. Stay-at-home parents can't build up their very own credit history. If we know 50% of marriages result in divorce, there will no doubt be many people who are left without access to credit cards when their marriage fails. You can't build a good credit history without having one. 2. Stay-at-home parents and low-income earning spouses they fit in a subordinate role. Marriage is said to be a partnership in which money as well as belongings are shared. It would still be possible for that working parent to co-sign for a credit line. However, many people say this option isn't any good. That's because dual-liability would mean the credit rating for both spouses could be adversely affected when the bills aren't paid. 3. It unfairly targets womenIt's only a fact. There are more stay-at-home mothers than stay-at-home dads. So more women will have a tough time getting a charge
card in their name, and won't have the ability to build a solid credit score. There's also concern how the provision could put women in abusive relationships in much more danger. Two Democratic congresswoman who helped draft the charge card law, but are against the Fed's suggestion, have said that it would keep a lot of women from being financially self-reliant. "The accessibility to an independent credit card may signify her best chance at establishing independence along with a path out of a dangerous romantic relationship. "4. Retailers do not support the ideaThe Government Reserve's proposed rule would also affect store credit cards. Many businesses are lobbying from the proposals. Retailers know that stay-at-home parents are typically the ones making numerous purchasing decisions. On the other hands, there are also groups that tend to be supporting the rule change. For example, the National Consumer Law Center offers another perspective on stay-at-home parents using the
ir own credit cards. The center points out that an individual who goes into debt and then can't repay it because they no longer have use of their spouse's income would "be inside a far worse position than if she had never incurred your debt. "Personal finance guru Dave Ramsey requires a step further. He says no you ought to be using credit cards and people should stay with debit cards and personal checks, which the proposed rule doesn't affect by any means. We get yet another view in the president of Consumer Education at SmarCredit. com. John Ulzheimer wrote inside a blog post on Mint. com that he believes people will discover a way to get credit and will inevitably wind up going into debt no matter the number of rules are made. "Name one "avoidance" law which has ever succeeded. Prohibition, drinking age, generating age, controlled substances… has any of these really worked? People are still likely to open and use credit cards, and may you guess why? They're going t
o open and use cards because they would like to. And if history has taught all of us anything, it's that people who wish to accomplish something badly enough are going to determine a way to do so, whatever the legality. "The Federal Reserve was accepting public discuss the proposal up through the finish of January. A final decision about the rules is expected in the arriving months.
Kasey Steinbrinck is the copywriter and blogger for online examine printer Check Advantage. The site has turned into a trusted source for business checks as well as personal checks on the internet.
View this post on my blog: http://creditcard.valuegov.com/stay-at-home-parents-could-be-affected-by-proposed-credit-card-rule/
le of geting their own credit card. Here are a few of the issues that opponents of the provision have stated. 1. Stay-at-home parents can't build up their very own credit history. If we know 50% of marriages result in divorce, there will no doubt be many people who are left without access to credit cards when their marriage fails. You can't build a good credit history without having one. 2. Stay-at-home parents and low-income earning spouses they fit in a subordinate role. Marriage is said to be a partnership in which money as well as belongings are shared. It would still be possible for that working parent to co-sign for a credit line. However, many people say this option isn't any good. That's because dual-liability would mean the credit rating for both spouses could be adversely affected when the bills aren't paid. 3. It unfairly targets womenIt's only a fact. There are more stay-at-home mothers than stay-at-home dads. So more women will have a tough time getting a charge
card in their name, and won't have the ability to build a solid credit score. There's also concern how the provision could put women in abusive relationships in much more danger. Two Democratic congresswoman who helped draft the charge card law, but are against the Fed's suggestion, have said that it would keep a lot of women from being financially self-reliant. "The accessibility to an independent credit card may signify her best chance at establishing independence along with a path out of a dangerous romantic relationship. "4. Retailers do not support the ideaThe Government Reserve's proposed rule would also affect store credit cards. Many businesses are lobbying from the proposals. Retailers know that stay-at-home parents are typically the ones making numerous purchasing decisions. On the other hands, there are also groups that tend to be supporting the rule change. For example, the National Consumer Law Center offers another perspective on stay-at-home parents using the
ir own credit cards. The center points out that an individual who goes into debt and then can't repay it because they no longer have use of their spouse's income would "be inside a far worse position than if she had never incurred your debt. "Personal finance guru Dave Ramsey requires a step further. He says no you ought to be using credit cards and people should stay with debit cards and personal checks, which the proposed rule doesn't affect by any means. We get yet another view in the president of Consumer Education at SmarCredit. com. John Ulzheimer wrote inside a blog post on Mint. com that he believes people will discover a way to get credit and will inevitably wind up going into debt no matter the number of rules are made. "Name one "avoidance" law which has ever succeeded. Prohibition, drinking age, generating age, controlled substances… has any of these really worked? People are still likely to open and use credit cards, and may you guess why? They're going t
o open and use cards because they would like to. And if history has taught all of us anything, it's that people who wish to accomplish something badly enough are going to determine a way to do so, whatever the legality. "The Federal Reserve was accepting public discuss the proposal up through the finish of January. A final decision about the rules is expected in the arriving months.
Kasey Steinbrinck is the copywriter and blogger for online examine printer Check Advantage. The site has turned into a trusted source for business checks as well as personal checks on the internet.
View this post on my blog: http://creditcard.valuegov.com/stay-at-home-parents-could-be-affected-by-proposed-credit-card-rule/
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