Credit Card Approval Rates Tighten Before Bankruptcy Law
The number of credit card applications that have been approved has dropped significantly in the last few months. The drop seems to be related to the new bankruptcy laws that go into effect on October 17. The new laws make it easier for credit card companies to collect on delinquent debt. The theory is that credit card companies want to hold off on approving people for cards until October 17 so that they can then approve them under the new law.
Bill Hardekopf, CEO of LowCards.com, says the drop in the approval rates has been very noticeable. "We saw the low approval rates starting in August and started to call other people in the industry and ask what they were seeing. It was the same story across the board. For some reason, all the credit card companies seemed to have tightened up on their approvals."
Hardekopf then consulted with Jerry C. Oldshue who is a board certified creditor's rights attorney at the law firm of Rosen, Cook, Sledge, Shattuck and Oldshue in Tuscaloosa, Alabama. Oldshue said that he had been hearing the same thing from debtors and creditors alike. "We discussed the trend here at the office and it started to make sense. The new laws will allow creditors a little more power in getting their money back even if a debtor files bankruptcy. It appears the industry started to tighten up on approvals after the bill was passed. By doing so, they could hold off approving high risk customers until the law goes into effect on October 17."
If you have been denied a credit card recently, you might want to apply once again after October 17. "We think the approval rates will come back up in late October and may be a little better than average now that the credit card companies will have this increased power under the new bankruptcy law," says Hardekopf. "Credit card companies are going to be willing to approve more people because they know they have a better chance at getting their money back even if the person declares bankruptcy."
LowCards.com ( http://www.lowcards.com ) is a website that helps consumers easily compare credit cards in a variety of categories such as lowest rates, rewards/rebates, and lowest intro rates. It also gives and unbiased ranking and review for each card. Created by Hampton & Associates, the company has been analyzing the credit card industry and supplying objective websites on various consumer expenses for over five years.
For more information, contact Bill Hardekopf at 1-800-388-1910 or billh@LowCards.com.
Bill Hardekopf, CEO of LowCards.com, says the drop in the approval rates has been very noticeable. "We saw the low approval rates starting in August and started to call other people in the industry and ask what they were seeing. It was the same story across the board. For some reason, all the credit card companies seemed to have tightened up on their approvals."
Hardekopf then consulted with Jerry C. Oldshue who is a board certified creditor's rights attorney at the law firm of Rosen, Cook, Sledge, Shattuck and Oldshue in Tuscaloosa, Alabama. Oldshue said that he had been hearing the same thing from debtors and creditors alike. "We discussed the trend here at the office and it started to make sense. The new laws will allow creditors a little more power in getting their money back even if a debtor files bankruptcy. It appears the industry started to tighten up on approvals after the bill was passed. By doing so, they could hold off approving high risk customers until the law goes into effect on October 17."
If you have been denied a credit card recently, you might want to apply once again after October 17. "We think the approval rates will come back up in late October and may be a little better than average now that the credit card companies will have this increased power under the new bankruptcy law," says Hardekopf. "Credit card companies are going to be willing to approve more people because they know they have a better chance at getting their money back even if the person declares bankruptcy."
LowCards.com ( http://www.lowcards.com ) is a website that helps consumers easily compare credit cards in a variety of categories such as lowest rates, rewards/rebates, and lowest intro rates. It also gives and unbiased ranking and review for each card. Created by Hampton & Associates, the company has been analyzing the credit card industry and supplying objective websites on various consumer expenses for over five years.
For more information, contact Bill Hardekopf at 1-800-388-1910 or billh@LowCards.com.
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