Consumers Prepare for Credit CARD Act
January 30, 2010 · Print This Article
Consumers have been inundated with news about the passage and implementation of the Credit CARD Act. CARD stands for Credit Card Accountability, Responsibility and Disclosure.
There has also been a lot of negative publicity aimed at credit card companies pre-empting the law by raising interest rates and fees. The reason for the high rate increases now is because the new law limits when and how the credit card companies can change customer interest rates and fees.
Through all of this it is easy to lose sight of the fact that consumers have a responsibility to manage their credit cards. The new law takes effect in February 2010 but customers can begin right now to manage their credit card debt. One thing that has confused many people is having their credit lines reduced even when they have an excellent payment history. This has just been one of the many consequences of the rule changes being absorbed by the credit card companies. So consumers need to understand that even in these types of situations, it is still incumbent on them to manage their debt responsibly.
Consumers can minimize the chances of having their interest rates increased or their credit limits decreased by lowering the balances on their accounts and making timely payments. And the wider the difference between credit limits and credit used, the better for the credit score.
If you want to avoid having a credit card cancelled, you need to use it periodically to keep the account active. Credit cards not used by customers have no value to the credit card business. You also have to watch out for inactivity fees that are currently being implemented in advance of the Credit Card Accountability, Responsibility and Disclosure Act.
When you get a credit card statement, it is important to read it carefully. The new law requires credit card companies to give customers and opt-out option for cards when rates are changed. Since many companies are making changes now in advance of the new CARD Act, it is important to keep a close eye on changes to your account. The types of changes that will be common include offers for over limit programs with expensive fees. The reality is the over limit programs are really not necessary if you manage your credit card usage in a responsible manner.
It is advisable for consumers to spend some time now to review their credit reports and scores. You should look at the open accounts on your credit report and decide if each account is necessary. When an account is closed, it will lower your ratio of available credit to used credit though. This is just one example of how manage a credit score.
The new Credit CARD Act is having some unintended consequences already as the credit card companies prepare to preserve their revenues and profits. Over the last ten years, consumers had become somewhat immune to credit card offers. Now it is time to actively manage the accounts, offers and terms.
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curadebt is a great company to check out if you need help with debt relief.. Just email me for the link I’d be happy to send it to u. =)
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Article by Marc Marseille at 2010-08-05 18:13:48
Categorized in Banking and Finance,
Contrary to what you may hear from some people, it is practical to remove bad credit. In some cases it can be done quickly and in others it can take time, but no matter how derogatory your credit report may be, you must never give up hope of fixing your credit score report.
I would like to disagree with Fred just a bit.
I have great scores and was offered a home loan at their best interest rate.
I have cards – lots of them – with large available balance.
It did not affect me at all.
The secret is to have them all paid in full for the time you apply for your loan.
Having high available balances and not using them shows that you are credit worthy.
They can trust you.
/
Read more at the source:
your crazy for even having 2 gl with that one lol
Here's a bunch of them for you to try out & see which one fits you right.
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I am 16 years old and wanted to know if I could receive a credit card as an authorized user under my parents name?
LIke it! Dry subject, but funny video. Makes a change from the usual credit card rubbish!
I’m pretty sure you’re wrong about the mental illness (at least in some circumstances), Alex. Anyway, I’m just in favor of companies butting the fuck out of my personal business, period. There are so many people who would NEVER hire me if they knew my full story, and yet I have done an excellent job for every employer I’ve had, and most of my bosses have actually cried when I left. I consider it to be judgmental companies’ loss, and I work for the tolerant ones. So no, I’m opposed to *requiring* them to nose into my business. I get you’re talking about something different, but the problem with simple ideas is almost always unintended consequences, so I was just trying to point one out.
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relax man. you’re jumping through the video at me. its money not action adventure.
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I am so happy I never got a credit card, dealt with being a poor bastard , and didn’t become a republican asshole later on.
The best way to use a credit card is to have one with a zero percent annual percentage rate (APR) that will not charge you interest while using the company for credit. Zero interest credit cards have a limited length of time that they remain at zero percent. This term will last on average about six months.
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Really helpful, thanks!
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I heard that an annual fee may be charged to credit users who pay off the balance each month. I am not sure who much that might cost me.
i had been looking for something on the glass steagal act…. thnx a lot!
DO NOT – REPEAT – DO NOT GET A CREDIT CARD! Do not start digging a hole that will trap you for DECADES!What you need to do is live on less money than you make. Never borrow money for anything. EVER (except maybe a house when you have enough saved for a downpayment) Credit card companies are SCUM! If you fall into the revolving credit trap now, think of where you'll be 5 years from now after you've applied and received your 7th credit card because you went $50k into debt maxing out the other 6! You can literally be a millionare at retirement if you start saving now – if you are currently 21, even if you save only $100 a month you will have $1,326,952.26 by the time you are eligible to take out your 401k money (at age 59 1/2 assuming 12% return which is the historical average). Believe me, A LOT of people would like to retire a millionare at ALL, let alone 59 1/2!!! Think about your future – by postponing a little bit of pleasure now, living on less than you make and NOT going into debt you can change yours and your family's life for the better – forever!
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Article by Pedro Flores at 2010-08-27 08:59:32
Categorized in Personal Finance,
Do you want yourself and your family to be financially stable at all times? There’s no question about this. Of course you do. Therefore, you need to be able to have an in-depth understanding of what life insurance will be able to do for you, your family, or your business if you have one. If you do, then you will be experiencing the peace of mind brought about by having one.
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please answer im afraid i may die!
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this is really funny
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