This article explains a few things about credit card, and if you're interested, then this is worth reading, because you can never tell what you don't know.
Credit card companies have a number of tricks and traps for the unwary card-user. Late fees and interest rate hikes are only the tip of the iceberg. Recently, however, the president signed new legislation in regards to credit cards, specifically billing fees and interest rate spikes. This means big changes for those who own and use them will be taking place throughout the coming year. So, in the interest of keeping informed, let's take a look at the new credit card rules and what they can mean for you.
Forty-Five Days
First off, credit card companies will now have to give cardholders forty-five days notice before their interest rates are raised. In addition, card-users must also be notified of any other changes of terms, including rewards points programs. What this means is that the days of sudden surprise increases in interest fees are over. Credit companies can still raise their interest rates, but they must give roughly two months notice to those affected by such an increase first. This may not matter much if you're good at keeping things paid down, but it will help immensely if an interest increase means you'll need to change your monthly budget.
Credit card companies have a number of tricks and traps for the unwary card-user. Late fees and interest rate hikes are only the tip of the iceberg. Recently, however, the president signed new legislation in regards to credit cards, specifically billing fees and interest rate spikes. This means big changes for those who own and use them will be taking place throughout the coming year. So, in the interest of keeping informed, let's take a look at the new credit card rules and what they can mean for you.
Forty-Five Days
First off, credit card companies will now have to give cardholders forty-five days notice before their interest rates are raised. In addition, card-users must also be notified of any other changes of terms, including rewards points programs. What this means is that the days of sudden surprise increases in interest fees are over. Credit companies can still raise their interest rates, but they must give roughly two months notice to those affected by such an increase first. This may not matter much if you're good at keeping things paid down, but it will help immensely if an interest increase means you'll need to change your monthly budget.
Twenty-One Days
Next, banks that supply the funds for your credit card must send out your monthly billing statement no later than twenty-one days before it's due. Late bills are always a pain in the posterior region, and it's a common trick for a credit card company to pull, sadly. A few late bills and-BOOM-you're in debt thanks to punitive late fees. Now, however, banks are legally obligated to get your bill to you on time, every time. It makes a lot of difference, trust me.
Late Fees
Speaking of late fees, thanks to the new legislation, if you get your payment in by five PM on the due date, it's in and you can incur no late payment penalties. No more early morning deadlines (another credit card company trick, and one that a lot of people have fallen for without realizing it) or late fees due to banking weekend or holiday hours. That means if your due date is on a Sunday, and your payment doesn't go through until Monday, you won't be penalized.
Sometimes the most important aspects of a subject are not immediately obvious. Keep reading to get the complete picture.
Highest Interest First
When paying different balances on the same card-cash advance and credit, for instance-the credit card company will now have to apply your payment to the balance with the highest interest, as opposed to whichever they fancy. And speaking of cash advances, banks will now require your express permission to allow you to go over your credit limit.
These are only the biggest changes to the way credit card services now work, thanks to the new legislation. All in all, the changes will make it harder for the credit card company to hinder you in paying off or paying down your accrued debt - your credit card costs should be less. However, this doesn't mean that you're in the free and clear. You'll still need to pay on time, every month if you intend to clear your debts. But the new credit rules will make it somewhat easier from now on, which is a nice change of pace.
About the Author:
Ken Muller is a Credit Card Debt enthusiast. For more great tips and advice on credit card costs, visit http://www.allaboutcreditcarddebt.com.
Article Source: http://EzineArticles.com/?expert=Ken_Muller
That's how things stand right now. Keep in mind that any subject can change over time, so be sure you keep up with the latest news.
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