Credit card changes stacked in favour of customers - Other News

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » News » Other » Credit card changes stacked in favour of customers

Credit card changes stacked in favour of customers

Credit card changes stacked in favour of customers

There are some massive credit reforms underway to ensure that credit card issuers don’t use loopholes in the credit card regulations to exploit customers further. These rules ensure that customers get a fair deal from card issuers and are not taken for a ride instead. One of the most important changes is the debt that costs the card holder the most, is always paid off first. This switch to positive order, from the negative order, that card issuers used until now, comes as a great news; especially for card holders with multiple types of debt, e.g. in the case of a balance transfer card, on which one rate was charged, and the purchases on another was different.


Another rule that has been introduced is to ensure that even if a card holder pays the minimum monthly payment the debt is reduced. With these changes, the minimum amount would be high enough to cover the interest, the fees, the additional charges and 1% of the outstanding credit card debt.


Another change introduced is customers will get a warning when their credit limit is being increased; as a higher credit limit might tempt card holders to spend more.


Similarly credit card customers would be informed at least 2 to 3 times about proposed increase in interest rates on the credit card. Card holders will have about 60 days to reject this proposal after which they can pay off the existing debt in instalments with the old interest rate and switch to another credit card. Essentially these rules will protect credit card customers from being exploited by card issuers who hike the limits and interests without the customers’ knowledge most of the times.


Card holders will also be given more flexibility when it comes to paying of the debts on credit cards. That means card holders can set up regular payments which could be the minimum amount or the completing outstanding balance and the customers can choose so based on their financial situation. Also in order to educate the customers, the new rules mandate the card issuer to inform those customers, who just pay minimum monthly payments, about the possible financial issues that could stem from it.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:

Related News:

Credit Card Hack at Chili’s

Posted: May 22, 2018

If you stopped by Chili's to grab some ribs or a fajita between March and April 2018, you might want to keep tabs on your credit card statement. Anyone who paid cash is safe, but those who used credit or debit cards may have had their data ... Continue reading
Macy’s Star Rewards for All

Posted: May 21, 2018

In the past, Macy's Star Rewards program was just for people who had a Macy's credit card, but that is no longer the case because the program has been given an upgrade. Now everyone can join the program and earn rewards. That said, ... Continue reading
More People Using Credit Cards While Delinquency Rates Inch Up

Posted: May 18, 2018

People are using credit cards more than ever, according to a new report by TransUnion that found that 416 million credit cards are in play in the market with 175 million consumers using them during the first quarter of this year. The ... Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com, or wholesale clubs up to the quarterly maximum each time you activate.
For Excellent, Good Credit
We'll match all the Miles you've earned at the end of your first year. For example, if you earn 30,000 Miles, you get 60,000 Miles.
For Excellent, Good Credit
0% Intro APR on Balance Transfers and Purchases for 18 months. After that, the variable APR will be 15.49% - 25.49% based on your creditworthiness*
For Excellent, Good Credit
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!