Customers of credit cards have a time period of 60 days to refuse hikes in the interest rates on credit card debt. Credit card holders will now be provided with the right to reject their interest rate hikes while banks are being mandated to provide at least 60 days’ notice to every card holder. Those credit card customers who wish to reject the new interest rate have the obligation to pay off the existing credit card debt. They can repay this amount in instalments at the interest rate that was originally provided to them. They don’t have to pay this debt back in lump sum. However, customers cannot use the credit card for new purchases anymore.
While banks are trying to squeeze their customers for every single penny, with outrageous hikes in interest rates by about 20%, this rule comes as a great relief for all the credit card customers, who can change to another card. Credit card customers are advised to switch to another credit card with lower interest rates to save money. There is another interesting prospect on offer. Some of the credit card issuers which are hiking the interest rates are also the cards that offer some of the best balance transfer deals for customers of other cards. It is an irony that card holders cannot shift from the hiked interest rate to the balance transfer deal. Not being able to switch to a different offer from the same credit card leaves the card holders with very less choice apart from switching to a different credit card.
The best balance transfer deals are available for credit card customers with the best credit rating. Therefore customers who don’t have a good credit rating have to select the credit cards more wisely. They should shop to ensure they find the credit cards with terms that are most suited to their mode of expenditure helping them to save as much as possible. High interest rates on cards are likely to be offered to customers with low credit rating which is why customers are advised to be consistent in their payments. Not only will they avoid high interests and charges on their card debt, but also enhance their credit history thereby qualifying for better terms subsequently.