Credit Cards

Moody's released an industrywide report on credit card quality earlier this week, and there's really only one takeaway from it: There's no recovery in the credit card industry.

Credit card issuers generally do not disclose much information about their product. There are many myths about credit cards in the market, and believing in one can cost you dearly. The best thing to do? Know these myths and get wiser.

With all the controversy surrounding consumers' dependence on credit, it's only natural to think that you'd be better off with fewer cards weighing down your wallet.

With their tremendous financial benefits, credit cards have revolutionized the American way of life. Their universal application has done away with the need to carry cash or sign check books for every single purchase. But their successful application calls for certain precautions.

Let me get one thing out in front: Visa (NYSE: V) is a phenomenal company. I mean really, really good. High-quality. Strong moat. Well-managed. Sturdy balance sheet. The works. It's the epitome of what you should look for in long-term investments.

The Federal Reserve released its monthly minutes yesterday, and for the first time in recent memory, some parts of the outlook were fairly chipper. "Financial market conditions," it states, have "generally strengthened, and surveys and anecdotal reports pointed to a pickup in household and business confidence."

Toronto -- Canada's Conservative finance minister Thursday announced new regulations for credit card issuers, but stopped short of interest rate caps.

Washington -- The U.S. House Wednesday overwhelmingly OK'd credit card reform legislation that would require plain contract language and notice of interest rate changes.

Remember 2007? We called this the "subprime mortgage crisis," assuming the risks were contained to one relatively small section of the economy.

We're used to thinking of American corporations fighting one another, competing for market share and consumer dollars. But every now and then, often unbeknownst to us, they band together.