For anyone who owns a credit card, that’s tens-of-millions of Americans, you need to be aware of the new credit card rules that are to take effect on February 22, 2010. It’s possible that some of your credit cards may actually leave you in a better situation, but chances are, most card terms will be changing for the worst. So be sure to take a look at the most recent terms on each of your card (most can do this via online banking with their carrier), because you’re going to want to check for the following:
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1. Should I transfer my higher interest rate card’s balances over to a lower interest rate account? But before you do so, remember that many carriers may charge as much as three or four percent of the transferred balance. Consolidating credit card debt in this manner may be very beneficial to you, especially if your carrier is willing to provide you with an introductory low APR for at least a year. Prior to transferring your debt, check to see what the rate adjusts to after your introductory rate expires, and compare this figure to the original card’s rate.
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2. If you decide that transferring your current debt to a brand new card may be the best way for you to save money, wait until after February 22. Experts are predicting that with the new law in effect, many card issuers will be trying to entice new customers through special offers and this may lead you to saving a considerable amount in repayment.
3. Watch out for dormancy fees, which are charges from your provider that are assessed for the non-use of your credit card. It’s not a bad idea to keep an extra credit card that you don’t use, unless of an emergency. To avoid a dormancy fee on cards you don’t use, make a small purchase every month or two (each carrier likely has different rules, so check your card’s terms), then pay that balance off in full.
4. If you are under 21 years of age, or are a full-time college student, the changes to the law may restrict your access to getting a credit card. So if you’re a responsible young adult, who can afford a credit card, now may be the time to apply for a card. When the new law takes effect, you will need to get a co-signer, above the age of 21, and be asked to prove your ability to make minimum monthly payments.
Related Information
5 Moves to Make Ahead of the New Credit Card Law
8 Major Benefits of the New Credit Card Law
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Credit Card Terms Change Thanks to New Law
New Credit Card Rules Come with Age Restriction
Great information.. good to know. I’ll be interested to see what sort of offers these credit card companies will have after these laws take effect!
Great info to know. I was just shopping around for good credit card deals when I stumbled upon this article. I may just wait until later on this month before I try to consolidat my credit card debt. Thank you.