Posted on Thursday, 26th May 2011 by Rebecca Ortiz
Credit card issuing banks are lobbying federal regulators in an attempt to put restrictions on who qualifies for a credit card. Under their proposed changes, for example, if your spouse makes the family income but you stay at home and don’t draw a salary because you are raising kids or caring for a sick parent then you won’t be eligible for a credit card of your own.
The card companies argue that giving cards to people who do not have any verifiable income is a mistake, and that many people who fall into that category end up defaulting on their payments. Blaming this kind of credit for many of the recent problems with credit card delinquency and nonpayment, they say that they believe those who do not earn a paycheck should not be issued plastic.
The rules are expected to go into effect by the end of the year. So credit card industry experts say that if you are one of those stay-at-home consumers who doesn’t have steady income, you may want to hurry and apply for your credit card now, before the restrictions take hold. Then again, banks may revoke cards if the federal regulations go through, taking retroactive steps to confiscate credit cards that have been issued to people that they do not deem credit worthy under the new guidelines.
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