Hello Kitty Credit Cards – Say Hello to the New Credit Card Industry

The face of the credit card industry is changing – to pink, white and yellow. And Hello Kitty is just the beginning. As predator credit card lending practices get reined in by the Credit Card Backlash bill – expected to be signed into law by the end of this month – watch for the credit card companies to start going after previously “off-limits” targets – like children and those with sterling credit.

It used to be that all you had to have was good credit – to get credit. Not so anymore. Even the very best credit risks (in the 680 and up range) no longer will have an easy ride. Or should I say a “free ride”? The credit card companies are being quite blatant about new treatment of their “revenue base” (read: customers). Look for a resuscitation of annual fees and abrupt endings to cash-back reward and travel mile programs and the worst yet, removal of grace periods on purchases. Look for a much more thorough credit card application process, even for those with established credit who pay their bills on time. The legislation that just passed the Senate will speed up these changes. The bill bars extension of credit to those under 18 (with some exceptions), but Hello Kitty cards targeted for 10-14 year-olds might start to be the norm. Will the credit card companies become the next tobacco industry?