Credit Cards Articles

By the end of February this year, many of the main provisions of the Credit CARD Act, which was signed into law by President Obama in May of 2009, finally step into effect.

It’s been a long wait. Card issuers have spent the nine months leading up to the enactment of the new credit card rules changing credit terms to skirt the provisions with the most teeth. After a year of credit card interest rate hikes, new and steeper credit card fees, and otherwise tightened terms, you may wonder if the effectiveness of the new credit card law has long since been undermined.

Indeed, while card issuers undoubtedly have succeeded in bolstering their bottom line to a degree, there are still many reasons to breathe a sigh of relief. No, the new credit card law won’t bring you lower credit card interest rates. What it will bring, however, is more certainty in credit terms and fewer tricks and traps. And that, in itself, is worth celebrating. Her

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Have you recently paid off a credit card? Do you feel like you have too many? Are you considering closing one or more cards? You may want to think twice before closing your credit card accounts. While cutting back can help you stay out of debt, it could also damage your credit history if you’re not careful. Here are some of the pros and cons that you should consider before closing any credit card: Pros of Closing a Credit Card The most obvious reason for closing a credit card is to eliminate the available credit limit. When you do that, you take away your ability to over-spend on that card and get into credit card debt with it. That’s an important consideration if you know you’re prone to spending too much on your cards./p pYou also might opt to close a credit card with high interest rates or fees. Perhaps you would first transfer the balance to a card with more favourable terms (such as a balance transfer card like the ANZ Balance credit card), then closing the original account./p pAnother reason to close a credit card is that you want to consolidate — use a single credit card for all, or most, purchases (such as to accumulate more rewards points). You may Read more…

Are you ready for some changes that could affect how you pay off your credit card debt? br /br /The initial stage of the Credit Card Accountability, Responsibility and Disclosure (CARD) Act of 2009 go into effect today.br /br /These rules, signed by President Obama in May, contain a number of provisions designed to give consumers more rights and protections. The second – and more comprehensive – phase of the act will take effect in February.br /br /From August 20, credit card companies are obligated to notify cardholders 45 days in advance about changes to their account, as well as mailing bills 21 days ahead of when they are due. Read more…

pstrongFor too many years the credit card industry has been quite loosely regulated./strong The credit card industry has been able to change credit limits, fees, and annual interest rates at will and consumers were the ones to feel the effects.In order to put this under control, President Obama recently signed the credit-card consumers’ Bill of Rights. The goal is to provide consumers with relief as fee limitation and contract change notification revisions are part of the legislation./p pPresident Obama stated that this action will provide credit card holders with the the strong and reliable protections they deserve. Read more…