Credit card reform rules have been put into place after a yearlong contemplation about changing how credit cards will be used and rules about them would change. Some of these rules are made by the reformers to get them to have enough time to pay bills and also to know in advance before the terms on the credit card are changed. There are now caps placed on fees for paying late and also for inactivity and these could have many consequences to the future of card holders.
While the average interest rate on cards is at 14.7% from the previous 13.1% the research from Synovate says that things are looking better. This has been the best level of interest since the year 2001.
These figures are looking good when looking at the average rate on credit cards as measured against the prime rate which was there. The new rate shows that there is a difference of 11.45 percentage points since 22 years according to Synovate.
The increase in rates is as a result of protection efforts by consumers according to card issuers. The number of fees that can be collected are limited and so making money is more difficult. The card issuers are looking at rate hikes. There are a lot of rules being put up to help banks and consumers work at strategies to generate profit as they move through the new changes.
The card rules going into effect seem to be quite heartening however there are a lot of loopholes that will be there. So a card holder cannot take it for granted or think they will not be in debt or have to pay any fees later on.
The credit card landscape presently is largely unchanged and there is not much difference with regard to the credit available, rates, transparency, fees and more. The high interest rates and other tricks being pulled by credit card companies and banks are going to make it real difficult to consumers who are ignorant and irresponsible. Therefore it has become important to stay vigilant and make sure that these changes do not make things difficult. These regulations are not enough to let consumers take things lightly or make them drop their guard. It is important to stay vigilant and make sure that you keep an eye on your spending and your credit card statements.