Credit Card Interest Rates and Common Sense
With the passing and signing of the Credit Card Accountability, Responsibility, and Disclosure act of 2009, commonly referred to as the “CARD” bill, common sense is finally making its way back into credit card interest rates.
The bill is designed to specifically amend the Consumer Credit Protection Act and eliminate the abusive credit policies that have found their way into everyday credit card business practices. The bill is also designed to enhance and simplify credit disclosures.
When it goes into effect in February of 2010 it will greatly curtail the ability of your credit card company to raise your interest rates for anything but legitimate reasons. For instance, right now your bank or credit card issuer can raise your rates if you’re late on another of your obligations (say your utility bill), even if you’ve been a good soldier and have kept a spotless payment record with the credit card itself. When the law goes into effect, they’ll only be able to raise your rate if you’re current rate expires (i.e. if it’s an introductory rate or a variable rate that’s scheduled to change) or if you’re more than 60 days late with your minimum payment.
While this is great news, remember that the law won’t go into effect until February, 2010 so the credit card companies have several months to figure out more mischief. So take the time to educate yourself. Learn more about credit card interest. And get ready to do battle.
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