Benefit with the New Credit Card Law

This is beneficial to you because it helps you avoid unnecessary and unwarranted rate hikes. When rates go up you credit card balance will definitely be affected. The Credit Card Law has several benefits added into it to help save you money and make you more informed of your financial situation when using credit cards.

• Credit Card

With the new law your credit card rate can be raised if that credit card is past due more than 60 days. To avoid this just make sure you are making a payment to your credit Card company. If something happens and you can not make a payment the best thing to do is contact your credit card company and let them know but make sure you never go more than 60 days without a payment.

The second way to avoid credit card rate hikes is to start with a credit card that has a set rate. Many cards have a promotional period where the rate looks really good then after a short time the rates seem to sky rocket out of control. With the new law any promotional rates must be in affect for a minimum of 6 months. This helps if you are planning to pay the card off with in the 6 months or promotional period. You should really think about the rates after the promotional period to benefit from a credit card. The lower the rate for the longer term the better.

Credit card companies will work with you if you are not able to make a payment or are having a difficult time financially. Make sure you contact your credit card company to see if there are options for you as soon as you realize you will not be able to make a payment, its best to do this before the payment date. You will want to make sure you stick to the payment arrangement or agreement, if you fail to follow the agreement your Credit Card Company has the right and will raise your credit card rate. The credit card company does have limits in regards to the amount they can raise your rate to but it will still affect your total pay off amount so it’s best to just stick to the plan you have agreed on. If for some reason you can’t your credit card company is required to change your rate back after you have make 6 on time payments of at least the minimum balance due.

Another way to benefit from the new Credit Card law is to watch for new rates. Credit Card companies are now required to notify you at least 45 days prior to a rate change or addition of fees to your account. This will allow you time to either pay off your credit card balance and avoid the extra charges or transfer your credit card balance to another company where the lender must maintain the starting rate (except for promotional rates) for one year. You should keep in mind that the new rate will only affect new charges. If you are just paying off an old balance and do not plan to use the card the new rate will not affect you.

Credit Card companies are also now required to allow your payments to benefit you. Going forward all payments made over your minimum balance will be used to pay the highest interest rate balance on your card first. This portion of the law will help consumers that have credit cards with balances at one rate then they have a rate change and continue to use the card. The portion that is higher will be paid off first leaving the lower interest rate balance until later.

More time to pay you Credit Card payments will also benefit you. Credit Card companies will have to mail your statement at least 21 calendar days before the due date. This will have borrowers an additional week to make a payment and increase you chance of avoiding a late charge. The law also requires credit card companies to extend your due date if they are not open on your due date. It’s kind of hard to pay them on time if they aren’t there to take the money.

No more surprise over the limit charges. You must inform your credit card company that you would like the option to take out funds that are over the credit card limit. Keep in mind there is usually a large fee for over the limit transactions so with the new law if you don’t authorize them to charge you for the over the limit transaction they will decline your credit card. This can benefit you if you tend to be a little careless with your credit card balance or impulsive when spending money.

• The best way to avoid high credit card bills is to pay with cash. Only use Credit Cards as a last resort
• Make sure you are making your payments on time
• As soon as you realize you will not be able to make a credit card payment you should contact your credit card company and see if they can work with you

Credit Card Law

Credit Card Law

New Credit Card Law

Instructions: