Are low interest rate credit cards in your wallet? In a recent Washington Post article, author Robert D. Manning provides insight into the five myths about credit card debt in the United States. Surprisingly, the information provided paints a clear picture on what the reality of the situation is.

Myth 1: Middle Class Families Have Relied on Bank Credit Cards Long Term

Although some believe that middle class families have relied on bank credit cards to manage budgets for some time, this is not true. Retail chains began offering store credit cards in the 1950’s and 60’s, though those cards could only be used in those stores. Visa and MasterCard were only available to those of the high-income households of the day. In fact, until the 1980’s bank issued credit cards were a symbol of social status, not something every day consumers used.

Myth 2: Credit Card Companies Manage Risk Better

Deregulation made it easier for the credit card industry to offer low interest rate credit cards to those who had lower incomes. However, high interest rate credit cards and penalties were available and were common. This deregulation allowed credit card companies to subsidize risk with high interest rates.

Myth 3: Users Pay More When Others Default

Irresponsible consumers who default on their credit card use do not, in itself, cause responsible cardholders to see a rise in their credit card rates. It is true that many companies are seeing incredible default rates right now, consumer borrowing is not the only thing behind the high interest rates and the seemingly extinction of low interest credit cards.

The problem says Manning, is that the card lender’s business model of encouraging borrowers to refinance, then selling those securities as backed by the credit card debt to investors, does not work. Banks want consumers now to pay the cost of those bad business models through high rates.

Myth 4: With the Competition that Exists, Regulation Is Not Needed

With more than 5000 issuers of credit cards in the United States, self-regulation may have seemed the best choice. However, the top three control 60 percent of outstanding debt (Bank of America, Citibank and Chase). Visa and MasterCard do little to actual discipline those who offer their credit cards and many of the smaller credit card issuers have simply cashed out to larger banks.

Myth 5: The CARD Act Provides Protections

The CARD Act, does offer some new protections to consumers in terms of how interest rates are raised on credit cards but do not expect to see more low interest credit cards come out of it. You will see more information about interest rates and getting a card under the age of 21 is harder. However, over the nine months it took to put this law into place, credit card companies have raised rates considerably, increased fees incredibly and limited credit card limits significantly.

What does all of this mean to the person looking for a low interest rate credit card? It simply means that obtaining this type of credit card will be more difficult even with new protections. With more than $900 billion in debt, consumers can expect to pay heftily for it.

Aubrey Clark is an Author and editor for Direct Banc, which features Low Interest Rate Credit Cards and a wide selection of credit cards for fair credit.