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The Credit Card Act took effect yesterday, and I’m facing a real literary dilemma. As you can see from the title, we’ve chosen a Shakespearean reference to reflect our sentiments about the Act. But exactly which play to choose from was a tough call. Coming in as a close second was Macbeth, Act 5, Scene 5:

[The Credit Card Act is] but a walking shadow, a poor player that struts and frets his hour upon the stage and then is heard no more: it is a tale told by an idiot, full of sound and fury, signifying nothing.

The politicians and consumer advocacy groups (you know, the ones that no best how we should live our lives) will no doubt celebrate today. They will pronounce the Credit Card Act as long overdue; a real win for the little guy. And to be fair, the restrictions on a card issuer’s ability to raise interest rates will benefit some consumers and the expense of others. But here’s the reality about the Credit Card Act:

Debt: If you were in credit card on February 21st, you were still in credit card debt on February 22nd.Bad Credit: If you have poor credit, your credit card options have been severely limited. Basical Read more…

Tags: Card, Credit Card

The new Credit CARD Act went into effect on Monday, and while it stops a lot of bullying credit card companies have gotten away with for years, it doesn’t cover everything.

Credit card issuers can’t raise your interest rate without sending you a 45-day advance notice, but they can impose new fees, like an inactivity fee if you don’t use your credit card for a certain period of time. They can also raise your rate if you have a variable interest rate, that is, a rate that moves when the prime rate moves.

There is no Federal cap on the interest rate credit card issuers can charge and in some states, competing credit card companies are the only thing standing in the way of astronomical interest rates.

Credit card issuers have to warn you if they change your credit card terms, so pay attention to mail that comes from your credit card issuer. Whether it’s included with your billing statement or in a separate envelope, read it or you may miss the opportunity to reject those changes.

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The CARD Act goes into effect today, February 22, 2010. This Act was established to protect credit card consumers and is monumental because it will change the way credit card companies do business. It entails the most significant changes ever to be made in credit card history.

What will the Act entail?

1.  There will be new limits on rate increases.
2. It will prohibit credit card companies from ’surprising’ consumers.
3. Credit card lenders will have to do a better job informing the consumer regarding interest rate increases and fee increases.
4. It will make it much more difficult for consumers under the age of 21 to qualify for a credit card.
5. Interest rates will not be allowed to undergo an increase until after the account has been open for at least 12 months.
6. Credit card companies will not be allowed to charge “over limit” fees unless the consumer specifically allows over limit charges.
7. Monthly credit card statements will have to undergo a face-lift. Each statement must contain detailed information, including a detailed pay-off plan. This plan

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Tags: Card Act, Effect

If you want to work your way to financial freedom, you have to start it right and settle all your unpaid balances in your credit card accounts. This can be difficult at first because credit card interest rates get in the way. Your debts increase because your unpaid balances earn interest every month. It makes it more difficult to finish payment, much more to save.

You cannot settle all your payments overnight but there are ways to negotiate for better terms with your bank so that they could lower your credit card interest rates and you will be able to settle your bills faster.

Of course, you also have to think of ways to cut down on your credit spending. If you have a hard time controlling impulse buying, it is probably better to leave your cards at home when you know that you still have unpaid balances to take care of. If you are keeping many cards beyond your paying capacity, try to trim it down to just two. This is enough in case you will need one for emergency use.

Nowadays it is generally more difficult to strike a deal with credit card companies because they themselves are dealing with a lot of bad debts from their clients.

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Tags: Card, Credit Card

If you carry a balance on your credit card from month to month and are looking for a way to save money on interest payments, you might be interested in balance transfer credit cards. The idea is simple enough. You get an introductory offer with low interest on balance transfers, and that gives you time to pay down your balance while saving money on interest. How can you find the best balance transfer credit card for your needs though?

Here are several factors you should consider when comparing balance transfer cards:

1. Balance Transfer Rates

The balance transfer rate (usually a temporary introductory offer) can be a lower rate than you’re paying now, or even 0% interest. Not only should you consider the rate, but you’ll also want to look at how long that rate is offered. Some cards only offer the introductory rate for a few months. Occasionally you’ll find a card like the Suncorp Platinum credit card that offers a low balance transfer rate for the life of that balance transfer.

You have to decide if you’ll be able to pay off the balance during the introductory period or not. If not,

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Tags: Cards, Credit Cards, Transfer Credit, Transfer Credit Cards