The CARD Act of 2009 has definitely brought about a lot of changes in the credit card industry. With the noose toughening around banks and other financial institutions that issues these cards to customers, they are finding new ways to make up for the losses they are going to experience. However, the good news is that it is easy to outwit the credit card companies and dodge their new tactics by following a few simple tips.
With the CARD Act coming into play, the banks cannot change the interest rates of your credit card at their whim and fancy. Until a customer`s is due for over two months, the banks cannot consider increasing the interest rates. In addition to this, if you had missed a payment in the past, but made six consecutive payments on time, then, the banks have to review your payment record and revise your interest rate and restore it to the original APR offered on the card.
Don`t fall prey to credit card companies that promise a number of rewards for the purchases made of their cards. The CRL (Center for Responsible Lending) has revealed that most of the financial institutions that use this strategy to lure customers to apply and avail their cards have some underlying issues that customers are unaware of. Most of the time, the interest rates and other fees associated on this card are significantly higher than those of the normal cards.
Thanks to the new Act coming into effect, credit card companies have to now send the monthly statements to the customers at least three weeks before the payment is due. This gives enough time to consumers to make arrangements to make at least the minimum payment. As soon as you receive your monthly credit card bill in the mail, ensure you mark the date on the calendar so you don`t skip the payment.
The new CARD Act gives the customers an upper hand and it is time you used that in your favor. Banks and other financial institutions issuing credit cards cannot make any changes to it until they get your permission to do so. Any interest change on the card has to be brought to your notice at least 45 days before it comes into effect. You can deny this change and opt to close the card and clear off the outstanding dues over the next 60 months.