If you have not yet heard, February 22 (2010) finalized the practice of the new consumer-friendly credit card rules. Actually, the first batch of changes were phased in August of 2009, giving both the credit card companies and the consumer a period of adjustment. This also allowed time for consumers to shop around for better deals in the event they disliked the new terms. The remaining credit card changes were implemented in February 2010.
You're probably wondering what this means to you as a consumer. Whether you currently have a credit card or are thinking of getting one, shopping around is still advisable as each company and card offer different rewards or paybacks for choosing them. One of the biggest changes is the way credit card issuers' bill, advertise and market their credit cards. However, there are more direct affects that derived from these new implementations.
First of all, credit card companies are now limited in their interest rate hikes. Any interest rate changes will only be allowed under certain conditions, such as a promotion, if the cardholder makes a late payment or if there is a variable interest rate. Also, any significant changes in the terms of the account must be given with 45 days notice and interest rate increases on new transactions can only occur after the first year.
Consumers now have the right to opt out of certain conditions and changes in terms of their account. Opting out is defined by the cardholder agreeing to close their account and pay off the balance within the allotted five years under the old terms of their account.
There is a new rule to protect the younger generation. Credit card companies will no longer be allowed to issue credit cards to anyone under the age of 21. The new rule also states they must stay at least 1,000 feet from college campuses.
You have more time to pay monthly bills. Issuers now have to provide the account holders with a reasonable amount of time to pay, which means payments are due 21 days after they have been mailed.
Finally, a little rhythm in their step. You will have the same payment due date each month. You cannot be charged over the limit fees unless you agree and you bill will now show the amount interest you will pay and how long it will take by paying only the minimum monthly payment.
The universal default of raising interest rates on customers based on previous payment records with other companies that are unrelated credit issuers would end for existing customers. If interest rate changes are to be made to your account, you must be given 45 days notice.
If a credit card is not something you feel is within your reach due to bad credit history, consider a private, secured loan. It's a great way to begin rebuilding your much-needed.
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BHM Financial is one of the most trusted names in the car title loan industry and may be able to help you take your first step towards fixing your credit rating. Please visit our Car Title Loans website or our Bad Credit Loans website and find out today.
