A “safer” payday loan sounds like an oxymoron. Critics have branded these notoriously high-cost loans as debt traps that cause borrowers to go ever deeper in the hole.
Thanks to a recent regulatory change, it now may be possible for banks to offer small, short-term loans that could be a lot less dangerous for borrowers. Whether banks will actually do so remains to be seen.
The right moves could save low- and moderate-income Americans billions of dollars a year. The wrong moves could create yet another sinkhole for those who are already struggling. In my latest for the Associated Press, how to avoid falling into the payday loan trap.
I have 4 credit cards I no longer use. I have them in my sock drawer. They are almost paid off and have a low balance. Can I take a scissors to them as a form of deactivation or will that effect my credit score? I use 2 credit cards with high rewards and pay off monthly.
Slicing them up won’t close the accounts and won’t affect your scores. You’ll still need to monitor the accounts for charges and potential fraud.