With the Credit Card Accountability Responsibility and Disclosure Act of 2009 implementation date just days away it looks like credit card issuers are not the only ones that are paying close attention to consumers’ actions. Now many prepaid card issuers are also paying attention because many are seeing the perfect opportunity to gain valuable consumers now more than ever.

For prepaid cards, there are many great opportunities but two seem to have priority. Those two are that of college students and those that are unhappy with their current financial institution. When it comes to students under the age of 21, credit cards will be one thing that will be much harder to come by as they will not be able to get one without an adult co-signer or proof of ability to pay off the debt. With prepaid cards, those that offer card-to-card transfers have the best chances of getting utilized the most by students, as these will give families the same benefits of a joint credit account.

When it comes to those that are unhappy with their current bank or card issuer, prepaid card are hoping to make the case that they are a better, cheaper option. When cards are advertised many times you will see the benefits highlighted as being without this such as overdraft charges, which have become major news as of late. Instead consumers can simply pay a lower monthly fee (some void is certain amount is spent per month) that is said to save more money in the long run.

In a world where a growing number of people are looking for more convenience, products that focus on personal finance seem to get more interest then most. So when a company known as TSYS (Total Systems Services, Inc.) decided to announce a solution that gives cardholders the ability to pay from multiple bank accounts all from one card, many in the financial industry are paying attention.

TSYS has introduced a "hybrid" card that allows consumers to choose how they want to pay for products and services with their plastic. While it sounds similar to a debit card from your financial institution or one that is decoupled, this card is much different. Consumers using the card can choose whether the transaction will be directed to a traditional credit card (revolving credit line) or to a debit card from multiple bank accounts if the consumer has more than one. In turn the days of carrying more than one card could soon be behind us if this plastic takes hold with financial institutions.

When it comes to the opinions of a hybrid type of payment card, while it sound great for consumers, there are a few that probably hope this new product doesn’t grow in popularity. This is because experts have predicted that there are some that would not benefit from consumers using this product. For those that could have the potential to lose the most, many say that it will be major issuers of traditional debit cards. Retailers would also be expected to lose out by the switch as they incur higher cost when a credit card is used instead of a debit card, and with a hybrid card the chances of using a credit card are increased dramatically.

With the long wait of the main phase of the Credit CARD Act almost at an end, many people have probably came to wonder how the new law will effect them in a positive way. While no one knows for sure, many researchers have performed studies to try to find the answer.

Now one researcher is giving an answer that many (if not all) will hope is accurate. According to a recent article from Pewtrusts.org entitled "Pew Finds Credit CARD Act Will Save Consumers Billions", researchers are estimating saving up to $10 billion a year based on fees alone. This is because when the second phase is implemented, credit card issuers will be forced to make major changes across the board and will no longer be able to charge excessive penalties for many of the things they had in the past. Instead they will have to give exact reasoning for increases on things such as certain fees, and give the consumer ample time to make payments.

After reading the article, when it comes to the estimated savings concerning the fees the news is beyond great if it is correct, but in my opinion the question of real savings focuses more on interest rates. Since the bill was first created, cardholders have been hit hard in several different ways that have all ended with the consumer paying more. Even with the requirement that credit card issuer have of lowering the interest rate for consumers in good standing, many cardholders will still be well above the initial rate they may have had before interest rates skyrocketed.

As we move closer to the implementation date of the Credit CARD Act, it has seemed that the amount of changes from credit card issuers that plagued headlines in recent months has dwindled. Instead we are now hearing that issuers have started to put money back into marketing (direct mail as an example) where they had pulled back heavily during the last quarter of 2009.

Even with increased marketing, credit card issuers are now fighting an uphill battle that will probably turn out to be a long one. Since cardholders have had multiple dramatic changes to their terms, many have turned away from credit cards, which they had relied on for years to make purchases. Instead they have moved to using debit cards and cash, which have become popular not only among consumers but also with many retailers.

When it comes to how long it will take before consumers feel comfortable in using credit cards again there is a mixed opinion by experts. Many have put the timeline a couple of months after the CARD Act is fully implemented to allow consumers the ability to familiarize themselves with the new laws. Others have put the date sooner than later as credit card issuers have slowly started to ease credit restrictions that have caused a majority of Americans to get declined for the cards that they have applied for. Even with both these timelines set, no one really knows more than the consumer because when it is all said and done they will be the one deciding if using a credit card fits into their financial lifestyle.

What can credit card issuers do to get cardholders to make more purchases? As this question would seem comical, it is one that has probably been brought up in every credit card issuers’ boardroom across the country. While it may seem like the answer is simple, now that many people have shifted to other forms of payment, card issuer may have more to worry about than lowering interest rates.

While lowering interest rates is one thing that could possible get consumers to start using their plastic more, it is only part of the answer. After a year of increased interest rates and decreased limits on majority if not all cardholders, many have had no other choice but to rethink how they will pay for goods and services. During this time, consumers have had the ability to restructure their financial goals and determine if using a credit card would fit in with them.

For issuers, when it comes to answering the question of how to increase card usage it would seem that they have quite a dilemma. On one hand, while delinquencies have declined for many issuers over the last few months, they are still much higher than years past. On the other, many issuers as well as experts really are not sure of the exact moves that will need to be made after the new laws have been fully implemented. Since both of these issues directly correlate with future changes it would seem any changes that influence credit card usage may take some time to be implemented if at all.

When it comes to reward credit cards, research as shown that they are without a doubt one of the most popular types of plastic available. Even during a time where interest rates have been raised and annual fees have been added to many cards, these cards still on many accounts seem to be untouched. Now it seems that one type of reward card seems to be getting more attention than any other around, and those are the ones tied to brokerage accounts.

According to an article on Bankrate.com entitled "Brokerages offer big credit card rewards" people that are looking for great rewards should consider a card that is tied to an investment account. When it comes to rewards cards, while some cards are giving consumers one percent, cardholders with credit cards such as Schwab Bank Invest First Visa Signature card or the Fidelity Investment Rewards American Express are seeing two percent. Not only that, cardholders are also given the ability to switch rewards to focus on many aspects that fit their needs such as investing rewards or college saving rewards (529 account).

While investment reward cards are not for everyone, these types of cards are definitely one to consider if you have a brokerage account. At the moment the cards listed above offer some of the richest rewards programs around, with no annual fees and no caps on the rewards that you can earn.

After months of shunning customers that were applying for their products, it now looks like credit card issuers are now ready to extend credit once again. While at first that may sound like great news for the millions of Americans that have been declined over the past months, there is one stipulation and that seems to be you must have an extremely high credit ranking in order to get the plastic you want.  

Because issuers are bound by new regulations, the "everyone is approved" approach that we had seen in years past just won’t cut it. With laws now stating what issuers can and can’t do when it comes to raising interest rates among other things, they are now being much more cautious on whom is issued a card. Research has shown that when it comes to many of the larger issuers in the U.S., well above eighty percent of consumers getting offered credit cards have credit score above 700.

While being more selective on issuing cards may keep some consumers from getting the credit card they really want, many other consumers will probably not be bothered with the lack of attention. For the first time in years, many Americans have started to cut back on borrowing and focus more on saving for the future. While getting a credit card may be on the "to-do" list, it is just something that they don’t feel is necessarily needed at the moment to reach any of their financial goals.

When it comes to credit cards, Americans have always had a love / hate relationship. While many times in the past it seemed to be more focused on the love side, attitudes toward plastic have changed as issuers have had to make dramatic changes to millions of cardholders’ accounts. This in turn has drawn a mixed audience on the stance of whether or not a credit card is needed.

As it pertains to the younger generation, researchers are finding that many are deciding to not use a credit card if at all possible. Instead they are looking for other ways when it comes to making purchases. For those currently using credit cards the changes that have occurred have prompted some to rethink their finances. Instead of using their cards to make many of their purchases they are now being more selective or simply leaving their card at home. 

So will the change of heart be permanent? While many people would probably like to think it will, majority of Americans will need credit somewhere down the line. Even though credit card usage has slowed, it is something that will more than likely pick back up once issuers and consumers alike become comfortable with the changes that are taking place in the industry. For the most part, credit cards have become an essential part of millions of American lives as they are the financial tool of choice when it concerns credit scores as well as many other things.

When it comes to major changes that consumers have seen in recent months, there is no doubt that cardholders have seen plenty. While some changes have been publicized more than others, each has affected the view that many people perceive when it comes to credit cards. One of the changes that seem to be a growing trend among credit card issuers is the annual fee and by the looks of it; we may see annual fees continue to find their way into American’s pocketbooks.

According to research both the implementation and increase of annual fees will continue to be something that cardholders will need to be on the lookout for as we move further into 2010. This is because in 2009 researchers found around a third (36%) of all credit card mailings sent to potential cardholders had annual fees associated with them. Compared to 2008, this is a dramatic increase as annual fees in mailings were reported to only be around twenty percent.

So will annual fees become the norm when getting issued a credit card? While it is too early to tell, annual fees will defiantly be something that will more than likely be associated with cards that have any type of extra features associated with it. Card issuers have already stated that without annual fees; features such as rewards would be difficult to offer cardholders.

When it comes to default rates, there is no argument that issuers have it bad even as recent reports have shown that they may be stabilizing. For some it is worse than others, and it now seems that those whom are getting hit the hardest are none other than retailers. While they have not been as publicized as many of the major issuers in the country; retailers have seen defaults on their credit cards rise much higher their well known counterparts.

So why are retailer credit cards seeing a higher default rate than others? According to an article entitled, "Defaults on Retail Credit Cards Soar" retail credit cards are generally perceived by consumers as a very low priority when it comes to making payments. This is because for the most part, consumers generally sign up because they may regularly shop at that location or because they may have received an incentive for doing so. Instead of falling behind on payments on something that they may use more often, they would rather keep those accounts in good standing and fall behind on accounts with retailers.

For the retailers themselves, high defaults are something that could show the reality of where future sales may lie. Like banks they may have to start being more selective on the consumers whom may be able to receive the card, or at worse they will have to give shoppers discounts at a much later time for being current on payments instead of at the register when an account is first opened.