The CARD Act, which came into effect last year, has given enough time to credit card issuers to think of ways in which they can overcome losses incurred due to new rules and regulations. The Federal government is still on the lookout for the loopholes that can be plugged. So, what are the credit card issuers up to? What can consumers do to brace themselves against the new strategies being implemented by the bank?
Well, the answer for consumers is pretty simple. In order stay away from the rigmarole of credit card debts, it is best to pay off the outstanding balance before the end of the grace period. Unfortunately, not all cardholders can afford to pay off in full each time. The next alternative is to make payments that exceed the minimum amount specified on the billing statement. Even a small amount over the minimum due will make a difference.
The rates on the credit cards have not fallen as much and as fast as the rates for savings accounts. Customers with good credit can still get credit cards with low interest; however, for a vast majority, who do not have good credit score to their backing, still have to bear the brunt of double digit interest rates. Stuart Miller, who works for CESI Debt Solutions, says that this is one of the effects of the recently implemented CARD Act. While the Act was designed to protect consumers, it also has other side effects such as the reduction of offers for 0% rates, and increase of interest rates on most cards. Miller also adds that though the interest rates are quite high at the moment, they are bound to come down shortly as consumers start shopping for better bargains and deals on credit cards.
As cardholders, it is important to stay up to date with all the latest news taking place in the credit card industry. Take a look at each and every notification sent across by the credit card lender. Prior to an increase in the interest rate, lenders have to notify the cardholders at least 45 days in advance and give them an option to close the credit card if the rate hikes are not acceptable.
Take a closer look at the terms and conditions on your credit card to protect yourself from fraudulent charges. Ensure you keep tab of the fees being charged, so you know you are not paying for something you are not getting. Remember business credit cards do not come under the CARD Act; hence, be careful when using them.